{"id":58602,"date":"2021-07-13T17:05:04","date_gmt":"2021-07-13T22:05:04","guid":{"rendered":"https:\/\/olduvai.ca\/?p=58602"},"modified":"2021-07-13T17:05:04","modified_gmt":"2021-07-13T22:05:04","slug":"transitory-inflation-turning-into-an-inflationary-spiral","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=58602","title":{"rendered":"Transitory Inflation Turning Into an Inflationary Spiral"},"content":{"rendered":"<h3><a href=\"https:\/\/schiffgold.com\/videos\/transitory-inflation-turning-into-an-inflationary-spiral\/\">Transitory Inflation Turning Into an Inflationary Spiral<\/a><\/h3>\n<div class=\"blog-big-photo\"><a class=\"prettyphoto\" title=\"Transitory Inflation Turning Into an Inflationary Spiral\" href=\"https:\/\/schiffgold.com\/wp-content\/uploads\/2020\/11\/dollar-tornado.jpg\" rel=\"prettyPhoto\"><img decoding=\"async\" class=\"blog-featured-big-photo lazyloaded\" src=\"https:\/\/schiffgold.com\/wp-content\/uploads\/2020\/11\/dollar-tornado-1024x576.jpg\" alt=\"\" width=\"100%\" data-src=\"https:\/\/schiffgold.com\/wp-content\/uploads\/2020\/11\/dollar-tornado-1024x576.jpg\" \/><\/a><\/div>\n<p>Consumer prices have been rising precipitously this year. If you annualize the Consumer Price Index through the first five months of 2021, you get a CPI increase of over 6%. Federal Reserve Chairman Jerome Powell continues to push the narrative that inflation is transitory, but not everybody buys into this storyline. On the Wolf Street Report, Financial Analyst Wolf Richter said Powell\u2019s temporary inflation is turning into an \u201cinflation spiral.\u201d<\/p>\n<p><span id=\"more-28500\"><\/span>Richter said some measure of inflation will likely tick down in the months ahead, but to steal Powell\u2019s term, the relief will be transitory and only serve to offer false hope before inflation starts rising again.<\/p>\n<blockquote><p>The first bout of inflation always looks temporary. But during those first bouts of inflation, that\u2019s when the triggers of persistent inflation, namely the inflationary mindset and inflation expectations are being unleashed.\u201d<\/p><\/blockquote>\n<p><iframe loading=\"lazy\" title=\"\u201cTemporary\u201d Inflation Is Turning into Inflation Spiral\" width=\"600\" height=\"338\" src=\"https:\/\/www.youtube.com\/embed\/VT3hfvhRP6g?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>The markets seem increasingly skeptical of Powell\u2019s insistence that inflation is transitory.\u00a0Last week,\u00a0<a href=\"https:\/\/schiffgold.com\/key-gold-news\/imf-chief-warns-of-sustained-rise-in-us-inflation\/\">the IMF warned of a \u201csustained\u201d inflation rise<\/a>\u00a0in the United States. Many people are starting to talk about the Fed tightening monetary policy sooner rather than later to fight rising prices and worry this could cause a slowdown in the economic recovery. But Peter Schiff says<a href=\"https:\/\/schiffgold.com\/peters-podcast\/peter-schiff-the-fed-is-like-the-boy-who-cried-wolf\/\">\u00a0the markets are bracing for the wrong impact<\/a>. The Fed won\u2019t fight inflation because it can\u2019t. There is no way to tighten monetary policy without collapsing the economy.<\/p>\n<blockquote><p>It\u2019s not that inflation is going to turn out to be not transitory and therefore the Fed is going to fight it,\u201d Schiff said. \u201cIt\u2019s that inflation is not transitory and the Fed is not going to fight it. And because the Fed is not going to fight the non-transitory inflation, it\u2019s actually going to end up getting much worse than people think.\u201d<\/p><\/blockquote>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Transitory Inflation Turning Into an Inflationary Spiral Consumer prices have been rising precipitously this year. If you annualize the Consumer Price Index through the first five months of 2021, you get a CPI increase of over 6%. Federal Reserve Chairman Jerome Powell continues to push the narrative that inflation is transitory, but not everybody buys [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1055,172,426,21879],"class_list":["post-58602","post","type-post","status-publish","format-standard","hentry","category-economics","tag-consumer-price-index","tag-cpi","tag-inflation","tag-schiff-gold"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/58602","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=58602"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/58602\/revisions"}],"predecessor-version":[{"id":58603,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/58602\/revisions\/58603"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=58602"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=58602"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=58602"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}