I keep hearing from the chicken 🐓 little economist inflation is out of control and the must raise interest rates to bring it under control. Are they for real 😮. The rationale of these chicken 🐔 littles is that if you starve the money supply, people will have less money 💰 and the price of goods and services will come down. If you believe that premise I have a bridge I want to sell you. ( Boy 👦 I am going to make a Fortune because there are so many fools out there and many of them are economists who should know better).
Now let’s assume that the Federal Reserve doesn’t do a thing, the price of goods and services will be out of reach for many, there by cooling the economy down, which in turn should stabilize prices, creating the same goal as the Federal Reserve raising interest rates and selling its assets.
Unfortunately this inflation is about lack of goods, especially gasoline and natural gas. This inflation is also about the inability to deliver goods to retailers in appropriate time. The inflation that we are suffering is also about Drought and food. It’s also about war. These are nothing that the Federal Reserve can do about. The Fed doesn’t drill for gas nor oil. The Fed can’t deliver goods that are waiting to be delivered and the last I heard the Fed doesn’t grow food, nor does it have the ability to end wars. The best that Fed can do is try not to make matters worse. The Fed should stop listening to those nerves 😳 nellies and do nothing.
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