Equedia Letter

Why Every Expert Has it Wrong: The Truth About the Fed6 min read

Comments (13)
  1. Don Mclean says:

    Don’t accept the government lie concerning inflation. Real inflation is currently over %10 as is evidenced by the Chapwood Index. Corporate profits have been greatly enhanced by inflation as prices have soared in the face of declining input costs thanks to declining commodity costs.

    Bond holders are taking a licking as their real return, after inflation, is well into the negative territory.

  2. Greg says:

    There will be Revolution,Rebellion and NO growth.I pity our grandchildren.

  3. Am already a subscriber to the Letter. But this re-subscription is for getting in on the follow-up comments, as per below. Many thanks for the Offer and your Excellent Reporting on a subject matter that can at times be staid.
    Thanks again.
    Harry Jaglalsingh M.D.

  4. Yatti420 says:

    Scary to think how close we still are to the brink after years of “recovery”..

    1. jrj90620 says:

      You’re right.After years of “recovery” the deficit is only projected to be $500 billion.Imagine what it will be in the next recession.Especially,if all this forced wage increases(AKA minimum wage) causes a lot of companies to replace labor with machines.

  5. Mitch Miller says:

    Explain this please: If inflation rises, it just gives the Fed a reason to sell back the bonds they purchased at a better price.

    If inflation rises, interest rates should rise and the price of bonds should fall.

    1. Peter Ball says:

      You are correct that bond prices fall as interest rates go up, but what I think Ivan is referring to is that the Fed really pays nothing for them (since they are really the ones digitally printing money from thin air.)

      It means that if inflation rises, the Fed will stop it by removing the money supply.

      Lets not forget that bonds also mature, which means the Fed never loses.

  6. Stan V says:

    I doubt that money will come from the stock market to absorb the bond selling. The stock market has both buyers and sellers so there is no money on a net basis. The fact is as the stock market sells off there will be less money on an aggregate basis

  7. jrj90620 says:

    Of course you’re right.The game will continue,until it can’t,which is how govts operate.When people lose confidence in these abused fiat currencies,the game is over.I remember the late 1970’s,when the Dollar was nearing crash mode and inflation getting out of control.Volker was forced to raise interest rates to 15%,to restore confidence.I doubt,with debt levels much higher today,the Fed could do that,without causing a depression.It wouldn’t take much,for inflation to rise above today’s 5-6%.Got GOLD?

  8. Glenn Melcher says:

    It was the Lehman Brothers Chairman that indicated everything was fine in 2008.

    I wonder what he’s doing today? That might be a nice topic to consider.

    Remember that nothing happens overnight
    until it does….

  9. FRANK GENDRON says:

    Batten down the hatches. Take down the sail. Drop anchor and try to ride out the storm.

    Thanks

  10. Evy Getz says:

    Amazing! The most thoughtful and informative newsletter in a torrent of the digital deluge of them. What incite! Not a big investor, just a retired librarian trying to save for the grandchildren appreciative of the news…good and bad (not good these days). EG

  11. al says:

    Interesting view but a bit short on suggestions for what to do about the matter.

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