sensitive Wolf_5640 : Consider this…
For many months now central banks including the Federal Reserve and the European Central Bank, have been aggressively raising rates. The narrative of central bankers is this: by raising rates this will slow the pace of skyrocketing global inflation. Well, TO DATE central banks raising of rates has been totally and completely ineffectual and why? Because it was never meant to work!
Central banks raise rates to hit demand and slow the economy, NOT to slow inflation- but this is the general LIE currently being sold to an unsuspecting and uninformed public.
How could central banks actually slow or even stop inflation? THEY COULD CONTRACT THE MONEY SUPPLY by raising the capital reserve requirements of the major banks.
The ROOT CAUSE of surging inflation IS NOT a rate issue! It is a money supply/currency issue. Currently and collectively central banks are deliberately KILLING the purchasing power of their respective currencies.
Despite all this we should expect a few things to happen. Firstly, MORE PROPAGANDA! Specifically, the narrative will change from inflation is worsening to “inflation is slowing.” This will be followed up by central banks, and I believe that it will be the Fed. First, which will so called “pivot” from an aggressive rate raising stance to a less aggressive stance, and then a PAUSE.
Understand, any so called “pivot” will do nothing to prevent the root-cause of global inflation from abating- the global money supply will continue to grow.