Comment Re: The Fed is being idiotic, as usual (Score 1) 259
Wow thank god we donâ(TM)t have you running the Fed. You could not be more completely wrong. We have had high inflation many times. Most recently in the 70s.
Paul Volcker used blunt force to finally break the high inflation, raising the average Fed Funds rate up to over 16% by 1981), creating recessions and market losses - while finally breaking the inflationary cycle. It worked. We know that this strategy works. That experience is a key part of what is now called the Taylor Rule, which calls for 12.7% Fed Funds rates to cure persistent 7.8% rates of inflation.
The Fed needs to raise rates to double digits immediately to have any hope of beating inflation. Everyone panicked over a 1% increase, so we are absolutely fucked, no way the Fed is allowed to raise them to 10-15%, can you imagine. Cats and dogs living together, mass hysteria would ensueâ¦
So expect a lot more inflation for a lot longer, years, stock markets will plummet 70-95% total. We are about 1/3 there already and it hasnâ(TM)t even been a year.