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they still haven't really figured it out they still haven't figured out the Rock and the hard place that the FED in the country are between because the FED is going to have to Pivot but inflation is going to run out of control see they've got to make a choice do they want inflation or do they want economic implosion now ultimately if they choose inflation we're going to have an implosion anyway because we're going to have hyperinflation it just may happen a year later and well that's good enough for the politicians all they care about is that it doesn't happen now because to fight inflation and there's only one way they're going to fight inflation successfully which is why they can't do it they've got to raise interest rates above the rate of inflation and inflation is what eight percent even if it's six percent they got to get short-term interest rates up to seven percent they're they're barely at four percent they got a long way to go and they've got to have massive cuts to government spending they're not even considering that because right now the way the government pays for spending is with inflation inflation is the stealth tax by which the government pays for everything in fact going all the way back to the tarp bailouts Obamacare the PPP how did we get all this government we didn't get it for free we paid for it with inflation they created money to pay for all this stuff now if the government wants to get rid of inflation they have to get rid of that money and so they have to run budget surpluses the Federal Reserve has to be able to withdraw all the liquidity that it's supplied so we have to have big cuts to government spending right now the government's got to cut Social Security Medicare Obamacare National Defense we have to shrink the amount of money the government is spending the government has to spend less money next year than it's spent last year in real real terms actual Cuts not reductions in the rate of injury increases but actual Cuts that's not happening so the government's got to choose do we want to have a financial crisis and cut government spending and allow bankruptcies and defaults and all these losses or do we want to have inflation and that's what they're going to pick sure if they thought they can get rid of inflation without a problem yes the public doesn't like inflation so the politicians wanted to talk tough about inflation but what they're going to like even less that inflation is when they lose everything they've got when they have a complete economic implosion when their savings and investment accounts get wiped out and they lose their jobs they're not going to like that now of course that's going to happen eventually anyway there's no free lunch here if the government chooses inflation then inflation is going to wipe everybody out so everybody's going to get wiped out through deep deflation when this whole thing collapses and a crisis or they're going to get wiped out through inflation but the reason the FED is going to pick inflation is because that happens later and of course as we've seen they can come up with a scapegoat to blame inflation on somebody else they never accept responsibility for the inflation they create so if the FED keeps hiking rates and everything implodes well hey we did that to ourselves you can blame the fled blame the FED but if prices just run out of control well we could blame OPEC after all they just cut production for oil we could blame Putin we can blame greedy corporations we can blame capitalism speculators I mean maybe they'll even try to blame me who knows but they're never going to accept any responsibility for what they did but what I started talking about when we saw this Lehman type moment and remember you know I'm familiar with these leaving moments because I remember when I was short the subprime market and the things that finally happened to get me to realize that okay we're about to get paid because I knew what to look out for because I was looking for these signs the idea that nobody rings a bell it's not true they rang the bell they Big Ben went off not people didn't hear it people still don't understand the disaster that the Federal Reserve has created with this policy you know I was very much against QE from the beginning and people are about to find out why the Paul krugmans of the world and all the people on mainstream investment firms who were blindsided by the 2008 financial crisis who laughed at me on National Television when I was warning about that crisis these are the same people who are oblivious again because they think the FED solved the problem they didn't understand I understood the problem that's why I knew the crisis was coming and I also knew that the FED made the problem they created worse I just didn't know how long it would take
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