The Federal Reserve Is About to Go Full Banana Republic
Peeling back the truth, one banana at a time.
According to an article on Yahoo! today, the top banana in finance, J. Powell, has already decided to go full bananatard. It is the financial hallmark of banana republics to print money in order to finance their debts. The Federal Reserve has never been allowed by law under its charter to do that because politicians were, long ago, smart enough to notice that all nations that take that path to financing their ambitious government programs turn to ash in the flames of hyperinflation.
We already have high inflation to deal with. After just writing a Deeper Dive that explained why we are already in a situation of true stagflation—the very situation that banana republics try to print their way out of—another financial writer this morning says the same thing on Seeking Alpha:
An old “new word” has entered the economic and market narratives in recent weeks: Stagflation. It’s an old word because the United States suffered from two bouts of “stagflation” from the middle 1970s to early 1980s. It’s a new word because there’s a new generation of market participants.
Stagflation is an economic cycle when economic growth is low (the “stag”) and inflation (the “flation”) are high. Low growth in past bouts also included high unemployment. A key factor in those stagflations was OPEC’s manipulation of oil supplies….
One of the key components of inflation has always been energy. We can see that going back a century in the data. It was most acutely felt during the 1970s and early 1980s stagflationary periods.
…click on the above link to read the rest of the article…
