Powell Is Caught In A Trap – but – We Don’t Have To Be!
Guest Post by Dennis Miller at Miller On The Money
Fed Chairman Powell has the impossible task of guiding the economy to a “soft landing” – balancing the need to tame out-of-control inflation while preventing a major market crash and recession/depression.
Here’s what is bearing down on America.
- The Fed bailed out the banks; $9 trillion+ in phony money.
- Government debt skyrocketed over $34 trillion and climbing. Soon the interest cost will exceed 50% of tax revenue.
- Government deficit spending continues accelerating.
- Government debt to Gross Domestic Product (GDP) ratio is projected to be 150% by 2028. A Hirschman study shows 50 of 51 countries topping 130% have defaulted on their debt, either through collapse or inflation.
- The stock market continues to levitate. A John Hussman analysis study shows a 99.9% probability of a major correction looming.
- Inflation still rising despite 11 rate increases since 2022.
- Much of the “cheap money” debt has to be rolled over at higher interest rates; creating problems for both lenders and borrowers.
While Powell tries to balance his approach, a soft landing isn’t gonna happen, something has to break.
If he holds rates steady, government interest and deficits will continue to soar, “too big to fail” banks will lose money and the economy will head into a major recession. If Powell pivots and drops rates, inflation will skyrocket; the economy, and possibly the dollar will collapse.
The elites (top 1%) own over 1/3rd of the nation’s wealth. Not wanting to lose their wealth/power, they’re pushing Powell to reduce rates.
“Inflation is not caused by the actions of private citizens, but by the government: by an artificial expansion of the money supply required to support deficit spending.
No private embezzlers or bank robbers in history have ever plundered people’s savings on a scale comparable to the plunder perpetrated by fiscal policies of statist governments.” |
Since 2008, trillions have been borrowed, creating a historic credit and stock market bubble. Much of that debt can’t be repaid and must be purged from the system to get back on track.
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Author: Dennis Miller
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