{"id":61167,"date":"2021-12-29T08:07:03","date_gmt":"2021-12-29T13:07:03","guid":{"rendered":"https:\/\/olduvai.ca\/?p=61167"},"modified":"2021-12-29T08:07:03","modified_gmt":"2021-12-29T13:07:03","slug":"ellen-brown-the-real-antidote-to-inflation","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=61167","title":{"rendered":"Ellen Brown: The Real Antidote to Inflation"},"content":{"rendered":"
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Ellen Brown: The Real Antidote to Inflation<\/a><\/h3>\n<\/header>\n
The Fed has options for countering the record inflation the U.S. is facing that are far more productive and less risky than raising interest rates.<\/div>\n
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[Images Money<\/a>\u00a0\/ CC BY 2.0]<\/figcaption><\/figure>\n

The Federal Reserve is caught between a rock and a hard place. Inflation grew by 6.8% in November, the\u00a0fastest in 40 years<\/a>, a trend the Fed has now acknowledged is not \u201ctransitory.\u201d The conventional theory is that inflation is due to too much money chasing too few goods, so the Fed is under heavy pressure to \u201ctighten\u201d or shrink the money supply. Its conventional tools for this purpose are to reduce asset purchases and raise interest rates. But corporate debt has risen by $1.3 trillion just since early 2020; so if the Fed raises rates, a massive wave of defaults is likely to result. According to financial advisor Graham Summers in an article titled \u201cThe Fed Is About to Start Playing with Matches Next to a $30 Trillion Debt Bomb<\/a>,\u201d the stock market could collapse by as much as 50%.<\/p>\n

Even more at risk are the small and medium-sized enterprises (SMEs) that are the backbone of the productive economy, companies that need bank credit to survive. In 2020,\u00a0200,000 more U.S. businesses closed<\/a>\u00a0than in normal pre-pandemic years. SMEs targeted as \u201cnonessential\u201d were restricted in their ability to conduct business, while the large international corporations remained open. Raising interest rates on the surviving SMEs could be the final blow.<\/p>\n

Cut Demand or Increase Supply?<\/strong><\/p>\n

The argument for raising interest rates is that it will reduce the demand for bank credit, which is now acknowledged to be the source of most of the new money in the money supply…<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Ellen Brown: The Real Antidote to Inflation The Fed has options for countering the record inflation the U.S. is facing that are far more productive and less risky than raising interest rates. [Images Money\u00a0\/ CC BY 2.0] The Federal Reserve is caught between a rock and a hard place. Inflation grew by 6.8% in November, […]<\/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":[63,124,175,7783,6716,431,488,538,30799,30926],"class_list":["post-61167","post","type-post","status-publish","format-standard","hentry","category-economics","tag-banks","tag-central-banks","tag-credit","tag-credit-expansion","tag-ellen-brown","tag-interest-rates","tag-loans","tag-money-printing","tag-scheer-post","tag-supply-vs-demand"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/61167","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=61167"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/61167\/revisions"}],"predecessor-version":[{"id":61168,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/61167\/revisions\/61168"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=61167"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=61167"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=61167"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}