Peter St Onge, formerly of the Heritage Foundation and now a former economist at another think tank, has just released a new warning regarding inflation.
The economist claims that the Federal Reserve’s decision to stop quantitative tightening and to start purchasing short-term U.S. Treasury Bills will cause the inflation rate to rise once more.
The Federal Reserve has announced that it will use counterfeit currency to fund a $9 trillion federal debt wall due in this year. Since the markets are not willing to buy the government debt, the Fed is going with fake money. The Fed creates fake money by typing zeros in Excel spreadsheets, declaring them to be dollars, and then using those dollars to purchase government debt. This process is called Quantitative Escalation, or QE. Jerome Powell, [the Fed chair] said that the Fed will start with 40 billion dollars a month. That’s half a trillion dollars a year.
St Onge says the Fed has a very dangerous position, while the government struggles to keep interest rates down and the financial system afloat.
This is alarming because when the Fed last did this to fund World War II in the 1940s, inflation reached double-digits. In 1947, the annual inflation rate was as high as 20%. It’s the same way Weimar Germany reached hyperinflation with wheelbarrows full of money. Once the central bank begins printing deficits through inflation, the temptation is to increase the deficit. Washington has a number of interests that need to be satisfied – one trillion here and another trillion there. Soon, it will become real money.
Even more alarming is the fact that, in 1940, it was all about funding government debt. The Fed is now pumping hundreds of billions to support a financial industry that has grown to five times the GDP.
Jerome Powell, the Fed’s chairman, admitted as much by stating that it isn’t real quantitative easing, because everyone knows this will lead to inflation. It is, however, necessary for maintaining ‘ample reserves’ so that the Fed is able to control interest rates. The financial system will collapse unless the Fed maintains a plate full of inflation or cocaine by the bar .”
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The post $9,000,000,000,000 Wall Of US Debt Coming As Fed Unleashes Cash Printers: Peter St Onge might be updated as new information becomes available.
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