Category: Blog

Cpi 0322

FED’S ZANY ZIRP FLUB-UP

Why did the Fed wait until March 16, 2022, to raise the Fed funds rate from zero to 0.25 percent, with inflation running at 8.55%? Why did the Federal Reserve’s expansive monetary policy, known as ZIRP (zero interest rate policy), create bubbles in crypto, SPACS, meme stocks, and unprofitable technology companies and then burst it?

read more FED’S ZANY ZIRP FLUB-UP
20 1stdb 01 Cta Apr 01
Core Lt 1280x720

 “Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair.”

SHORT VERSION → Inflation Reversion Core Inflation has averaged 3.2% over the past 62 years. Core Inflation is currently 5.1%; the FED’s target rate for inflation is 2%. How long will it take for Core Inflation to revert from 5.1% to 2%? Take notice during the 70s and 80s when inflation spiked above the 2%

read more  “Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair.”