The Fed clearly needs to pivot. But inflation is going to ru...

The Fed clearly needs to pivot. But inflation is going to run out of control. They’ve got to make a choice. Do they want inflation? Or do they want economic implosion?
Of course, if the central bank chooses inflation, we’re still going to have an implosion because we’ll ultimately end up with stagflation. It will just happen later.
That’s good enough for the politicians because all they care about is that it doesn’t happen now.
There’s only one way to legitimately fight inflation. They have to raise interest rates above the rate of inflation so real interest rates are positive. Right now, real rates are at -5%, Meanwhile, the US government has to make massive spending cuts.
They’re not even considering that. Because right now, the way the government pays for spending is with inflation. Inflation is the stealth tax by which the government pays for everything. … How did we get all this government? We didn’t get it for free. We paid for it with inflation. They created money to pay for all this stuff. Now, if the government wants to get rid of inflation, they have to get rid of that money.
That’s not happening. So, that brings us back to the choice.
Do we want to have a financial crisis, and cut government spending, and allow bankruptcies and defaults and all these losses, or, do we want to have inflation?
The reason the Fed is going to pick inflation is because that happens later. And, as we’ve seen, they can come up with a scapegoat — blame inflation on somebody else.
And these are supposed to be the smartest people around who set monetary and fiscal policy? Go figure... $S&P 500 Index(.SPX.US)$ $Dow Jones Industrial Average(.DJI.US)$ $Nasdaq Composite Index(.IXIC.US)$ $Invesco QQQ Trust(QQQ.US)$ $SPDR S&P 500 ETF(SPY.US)$