Truly pitiful: Federal false helplessness in the face of inflation

The Federal Reserve Chairman, Jerome Powell, is valiantly battling against stubborn inflation.

He raised interest rates and continues to keep them high, but no matter what he does, inflation continues to mock him.

In a related story, medical doctor Dr. Jerome Powell has been valiantly battling a patient’s anemia by applying leeches.

But, for some unknown reason, the anemia is not responding to the blood draw, so Dr. Powell will continue to apply more and more leeches.

Doctors and economists the world over wonder why drawing blood doesn’t cure anemia and increasing costs by raising interest rates doesn’t cure inflation.

Americans are falling behind on their credit card bills.

Nearly one in five credit card users have maxed out on their borrowing, according to the Federal Reserve Bank of New York.

People under 30 and those who live in low-income neighborhoods are more likely to be at or close to their credit limit.

Don’t those people realize that Jerome Powell is trying to help them pay off their loans by increasing interest rates?

The debt is a sign borrowers are feeling the strain of rising prices and high interest rates.

“Most investors now think it’s going to be September before the Federal Reserve is ready to start cutting interest rates,” NPR’s Scott Horsley tells Up First.

Yes, another couple of months of drawing blood from the patient should cure his anemia, and another couple of months of increasing prices by raising interest rates should cure inflation.

Though inflation has come down from what it was several years ago, prices are still climbing faster than most would like.

Perhaps increasing the cost of borrowing (which virtually every corporation, farmer, home buyer, car buyer, and appliance buyer does) will cure inflation.

More than half of all credit card users pay their whole balance every month, so they’re not affected by high interest rates.

But the other half pay interest on their purchases, so they are affected.

But don’t worry, Chairman Powell assures us that raising interest rates reduces the cost of everything (with the exception of everything you buy).

Because of this, there’s no incentive to stop spending, which makes it hard to get inflation under control.

Now, if everyone simply would stop spending, the resultant recession and depression might cure inflation.

Then again, there is a thing called “stagflation,” which is a combination of inflation and economic stagnation, so maybe the recession thing isn’t such a good idea.

Oh, someone mentioned that high oil prices cause inflation and that interest rate increases exacerbate inflation.

Ah, but those people were just using facts, not rumors and beliefs, so who could trust them?

Rodger Malcolm Mitchell
Monetary Sovereignty

Twitter: @rodgermitchell Search #monetarysovereignty
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The Sole Purpose of Government Is to Improve and Protect the Lives of the People.

MONETARY SOVEREIGNTY