Inflation Targeting
We saw this on Zhedge today in regards to the “FED” hitting their (FAIT) or Flexible Average Inflation Targeting and how long it will take them to hit their target where BofA aptly concluded that “it would take 42 years to reach the price level target if core PCE remained at 2.1% yoy" but just 2 years if core PCE rocketed to 4.0% (good luck hitting 4% inflation).” Here is a link to this article, Fed Inflation Target
The reality is, the FED is purposely avoiding that very inflation it says it wants to target. Why do we say this, because expecting to hit an inflation target, is bush league at best and just rhetoric. If the FED wanted to raise inflation it would “RAISE” rates not lower them and stop the hoarding of capital and raise velocity for once. Secondly it would put banks in a better position to profit as the real or general economy improves.
Yes many will say raising rates will put us into a depression, well it all depends on which part of the earnings quartile you sit. There are pockets of depression already today, its just masked better and the very tools by which they will continue to mask it, rests in something called UBI or Universal Basic Income. Its why the Socialists are clamoring for it, because they know the reality, that a big bulk of our economy is left, well how shall we say this, NOT PARTICIPATING.
That is the real tragedy of our system, a lot of it is masked, rigged, whatever you may decide to call it, but for us, the story remains consistent with the FED, lower rates ad infinitum and pretend you want inflation, when in reality their policies exhibit one very important trait, that is the concentration of wealth and power. PERIOD.
So don’t be fooled, the FED knows exactly what it is doing and will try to continue this as we will here more in the near future of “digital dollars” and “direct funding” (UBI) and its all designed to do the same thing traditional Central Banking has done, and that is to keep that top of the pyramid separate from the rest and they have been wildly successful at it, that’s for damn sure.
We remember this little meme a few years back and it continues to have relevancy today, this might be the ultimate meme of the last decade in regards to debt money vs alternative currency and why Bitcoin is no longer just a “novelty”
As far as financial markets, this is all that matters:
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