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  • How long will US inflation last? The answer lies in the past

    From cnn.com

    The Federal Reserve's favorite inflation-related adjective used to be transitory, as in: Inflation is transitory and price increases should be temporary. That is no longer the case. Inflation rates have been increasing sharply since August 2021 and have been out of the normal 2%-to-4% range for a full year. The Consumer Price Index rose 8.5% for the year ending in March, a rate that hadn't been seen since December of 1981. So the central bank has broken up with "transitory" and set its eyes on a new inflation-modifying term: entrenched. "It's our job to make sure that inflation of that unpleasant high nature doesn't ... (full story)

it means that the threat of an economic crisis is happening if the inflation rate cannot be normalized.... moreover the uncertain global situation.... a difficult problem for the FED to be able to implement.
All my analysis is based on Wyckoff Methods
Sooner or later the chickens come home to roost. This is what happens if you just print money and the politicians promise handouts and they put enriching themsevles ahead of the good of the people.

It has happened time and time again when the economy stagnates: Initially there will be handouts to keep going, then there will be some attempt at tightening and next there will be a group that wants "to go back to the good old times". We see it everywhere with tyrants getting back in power to enrich temselves, erode freedom of expression, erode rights of women, next there will be (economic) slavery and discrimination will be encouraged. The end result is poverty for all.

There is a Chinese expression: "May you live in interesting times" which is basically wishing you bad luck. Well we're living in "interesting times".
With due respect to all (who might have a different viewpoint).
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  • Posted: May 8, 2022 5:37pm
  • Submitted by:
     Newsstand
    Category: Fundamental Analysis
    Comments: 2  /  Views: 2,244