by Michael Snyder
Please have someone stop the madness. Many years ago, when Saturday Night Live was still really fun, comedian Will Ferrell starred in a cartoon called “More Cowbell.” To this day, it remains one of the most famous cartoons in the history of comedy, and this is because it was absolutely funny. If you’ve never seen it, you can find it right here. Unfortunately, for all of us, the Federal Reserve is making its own version of “More Cowbell,” but it’s not at all fun. At this point, Fed officials seem to be breaking a record, because month after month they keep telling us that the answer to our growing economic problems is even more inflation. They have completely disappeared, however, since most Americans are economically illiterate, almost no one opposes them.
Earlier today I received an alarming email from one of my readers. This particular reader was alarmed by the fact that the price of her favorite juice went up three dollars and I would have liked to tell her that these price increases are “temporary” and that everything will return to normal soon.
But I couldn’t do it, because that’s not the truth.
On Wednesday, Fed officials voted again to continue flooding the financial system with giant mountains of fresh cash …
The Federal Reserve’s open market committee has unanimously voted to continue the central bank’s easy money policies, again dismissing high inflation as “transient” and saying COVID-19 still poses risks to the economy.
The eleven-member committee voted Wednesday to keep the federal funds rate close to zero and continue to flood the market with money through massive bond purchases “until substantial progress is made” in promoting employment.
“Buying bonds” for $ 120 billion a month may seem boring to most Americans, but if people really understood what this did to our standard of living, they would protest in the streets tomorrow morning.
On average, the Federal Reserve sends more than a billion dollars into our financial system every hour.
These kinds of things are only supposed to be done during a major emergency. The first time large-scale “quantitative easing” was used was during the last financial crisis, and now it has basically become something the Fed does all the time.
As I commented yesterday, the size of the Fed’s balance sheet has roughly doubled during this pandemic. Of course, this would lead to rising inflation.
On Wednesday, Fed Chairman Jerome Powell openly admitted that “inflation could turn out to be higher and more persistent than we expected.”
Do you think so?
But Powell also continued to insist that in the long run inflation would fall to 2% …
Indicators of long-term inflation expectations generally seem consistent with our long-term inflation target of 2%. If we saw signs that the inflation trajectory or long-term inflation expectations were materially and persistently exceeding levels consistent with our target, we would be prepared to adjust policy stance.
What do you smoke in the world?
Do you really think we can flood the system with trillions and trillions of dollars fresh and keep inflation around 2% at the same time?
If so, you should consult a mental health professional immediately.
Right now, prices are soaring around us. Earlier today I came across an article that talked about how farmers suffer because the price of hay has risen by about 20% …
DeRuwe said local prices for large bales of hay (small bales are significantly more expensive) are around $ 210 a tonne, about 20 percent more than the average year.
Yesterday, I discussed the fact that house prices have risen 23% over the last year.
Apparently, house prices are still not high enough, because Fed officials want to flood the system with even more money.
Used car prices have risen more than 45 percent over the past year. In many cases, used cars are now sold for more than they were when they were new.
What we are witnessing now is completely and utterly insane, but the Fed is not the only culprit.
Our politicians in Washington have spent money like crazy and now another gigantic spending package is being discussed.
Fortunately, there is at least one Democrat in the Senate who believes Joe Biden’s $ 3.5 trillion infrastructure package is too big …
Sen. Kyrsten Sinema of Arizona on Wednesday opposed opposition to the Democrats’ $ 3.5 trillion spending plan, virtually guaranteeing that his party would be forced to make substantial cuts to get it incorporated. .
In a statement to the Republic of Arizona, the moderate Democrat said that while she supported efforts to strengthen the country’s economic competitiveness in an infrastructure plan, she believed the bill was too big.
In the end, we may see a package of only a trillion dollars.
But this is still absolute madness.
Since the beginning of the pandemic, we have increased the size of our national debt by five trillion dollars and now our politicians in Washington want to borrow and spend more mountains of giant money.
Today, I came across an article about a “two-headed snake” …
An amazing video captures the moment when a two-headed snake named Ben and Jerry devours two mice in each of their mouths with fangs.
Reptile enthusiast Brian Barczyk shared the clip on his Instagram account, which shows each of the heads slowly biting on a pair of dead mice.
The two-headed reptile is the result of a phenomenon known as bicephaly, which occurs from the incomplete division of an embryo.
When I read this, I immediately thought about our current situation.
Today, the Federal Reserve and our politicians in Washington have become a “two-headed snake” that is constantly devouring our financial future.
If we stay on the path we are following, there will be no future for our country.
But it has become obvious that our leaders will not change.
Every time a new crisis erupts, your “solution” will be to create, borrow, and spend even more money.
This “more cow” approach to managing the economy is literally crazy, but now there will be no going back.
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