- Financial Survival Network
- Posts
- Let’s Make the Rate Question Simple
Let’s Make the Rate Question Simple
by Karl Denninger Market-Ticker.org
Is The Fed going back to ZIRP: No.
Why not? Because, as I noted over six months ago, the second inflationary impulse is already in the system having been put there by Biden’s budget and Congress, which I remind you is Republican-controlled, and there is nothing that anyone can do to prevent it from showing up in prices.
Plenty of people think Volcker “screwed up” after the first inflationary impulse when he kept tightening after he backed off. Wrong. He did it because Congress refused to cut spending and embraced the idea that “it don’t matter.”
Well, it did matter and inflation took off again.
If Reagan and Bush had balanced the budget by the time Clinton had left office the federal debt would have been zero.
Neither did, Obama followed Bush II, Trump spiked it higher, Biden is doing the same thing and here we are.