Cure for Higher Prices is Higher Prices

Today the Fed took another shot at inflation, raising interest rates by 75 basis points.  During the pandemic in 2020-21, and also the Great Recession of 2008-09, the playbook was to throw money at the problem by either keeping interest rates at zero percent or by literally giving people money to spend our way out of a jam.  The result of all the free money (trillions with a T) is the aggressive inflation which now needs to be addressed.  The multi-trillion dollar question then is…can the Fed raise rates enough to slow the economy without throwing us into a recession and/or a much steeper downward spiral in stocks.  The better question may be…are we fighting yesterday’s war and should we be putting our efforts towards freeing up the supply chains, loosening the grip of government controls on US businesses, and letting post-pandemic demand play itself out over a period of time.  The only thing that is transitory is any Talking Head taking responsibility for their economic calls.

Inspiration

“Open your eyes, look within.  Are you satisfied with the life you’re living?”
-Bob Marley

“The lack of money is the root of all evil”
-Mark Twain

“Success is the ability—to go from failure to failure—without losing your enthusiasm.”
-Winston Churchill

“It’s what you do in the present that will redeem the past and thereby change the future.”
-Paulo Coelho

Inspiration Archive

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