The Fed Will Stop Inflation by Starting a Depression

The Heresy Financial Podcast - A podcast by Joseph Brown

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Most people, including the Federal Reserve are aware that the Fed is stuck between a rock and a hard place. With the deflationary death spiral on one side, and a hyperinflationary collapse of the currency on the other side. Where people do tend to disagree is what the Federal Reserve should do to try and thread the needle between those two things, and what they will do, not just what they should do. The other thing muddying the waters is personal preference about what people 'wish' the Fed would do. Because a lot of people disagree about the Federal Reserve easing conditions to bailout the economy. But at the same time, they're upset at the Fed for tightening conditions and potentially causing more economic pain when that’s the healthier option long-term, even though it might be more painful short-term. I'm here to tell you that what is likely to happen is, the Federal Reserve is going to continue to fight inflation until they win. The problem with this is that they're going to tip the economy over into a depression, and the real problems start after that.