The current administration says the FED today has "more credibility than Volcker FED". I didn't think I had to clarify why this is a poor joke, but considering the state of afairs... Let's us examine that statement. Above is a chart comparing the CPI vs the interest rates and is very clear to me how bad this administration is, but nobody seems to realize yet how big of a f**up this is. America's time as the world wealthiest and most powerful country are counted. I don't think China is the future, but certaintly America doesn't have one to boast about it. As far as I can see it, these next generations won't have much of a future at all. The worst part is that the US debt is so large that even if they want it, they couldn't raise the rate more to control inflation, at the current size every 1% increase of the rates would mean 300bl more paid annually by the US government, that means that 2% would end the military budget (the US largest expense). Volcker had to push rate well into 2-digits to control inflation, today that would colapse the whole economic system by itself. That's it boys. This is how the world ends. Not with a boom, but with a click.
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