The Fed can hike interest rates all it wants, it's not going to make it rain in Brazil, open ports in China, find truck drivers in the UK, change covid-0 policies in Australia. Bet that the Fed will hike rates if you want, but don't bet it will help this supply-driven inflation.

1:52 PM · Oct 1, 2021

129
424
82
2,049
Replying to @francesdonald
Supply chain driven inflation is one problem, but the eroding of UST purchasing power is another which is falling into negative territory is another.. Pick your poison, cause a dollar crash will instantiate a different type of inflation, not seen since Weimar.
1
0
0
12
Weimar....Thats funny
1
0
0
4
Replying to @francesdonald
Well sure but they can still reduce inflation by tapering money supply growth. The Fed is never in charge of supply side issues.
2
0
0
12
Serious question: how much do they have to raise rates by to make me not want to buy a car or to make crypto miners not want to buy processors?
1
0
0
3
Replying to @francesdonald
Brilliant take. Agreed.
1
0
0
3
Replying to @francesdonald
I think Powell agreed with the general thrust of this in testimony b4 Congress. But how much of US inflation is a function of Brazil's drought, labor shortage in the UK, or Australia's covid policies or lack thereof? My guess: slim to none.
1
0
0
7
Here is a thought. Are rises in prices inflation or just a rise in prices? What is inflation?
1
0
0
1
Replying to @francesdonald
do you know companies and builders all are hoarding inventory as they know rates are low and prices will increase…once interest rates start to rise …you will see supply everywhere …
2
0
0
3
That makes absolutely no sense: granger causality
1
0
0
1