The Inflation Machine Rages Against You
Commentary
Reading the daily economic news is like listening to the video narration of a slow-motion pile-up car wreck on the world’s busiest highway. We know exactly what is taking place car by car and we know the damage is great and intensifying in each frame. We are not shocked by any of it but we somehow cannot stop watching and listening.
There was really no great surprise that $6 trillion in Congressional spending in 2020–21 created vast debt that was bought by the Fed with newly created funny money would result in vast inflation. We knew that lockdowns would destroy supply chains and trading relationships and smash small business. We knew that “fixing” all this with higher and higher interest rates would devastate the housing and bond markets….