Inflation Is The One Promise Central Banks Can Deliver – Ep 76

* Markets have been volatile but economic data still looking bad * Chicago Fed National Activity Index: contrary to expectations, came in at -.42 in addition a downward correction for last week to a 2-year low * Weekly Redbook Same Store Sales Survey down to lowest annual increase in 4 years with a dramatic rate of decline in recent months * Implausible excuses, such as the weather or the timing of Easter, attempt to mask the fact that the economy is just weak * Oil prices moved above $57, forming a sizable W-bottom * Canadian dollar up about 5% * Canadian inflation, especially food prices up * This signals the end of rate-cutting cycle in Canada * Central banks around the world are going to have to dial back on their cheap money policies * The "Threat of Deflation" will be in the rear view mirror * Central banks may like high prices, but consumers don't * President of the Federal Reserve Bank of Boston Eric Rosengren stated our 2% inflation goal is "too low" * He thinks higher inflation allows for more growth, and allows interest rates to remain low * Cheap money does not create economic growth and doesn't create employment - it undermines both * Cheap money applied to a slower economy creates a vicious cycle * A weakening dollar will put upward pressure on already rising consumer prices * The Fed is hinting at a higher inflation goal * The problem is we can't do anything about our inflation because our debt is out of control * Fiscally solvent countries are able to raise rates and still service their debt * All the U.S. can do is "talk tough" * If they had a "Hall of Economists" in Disneyland, the Keynesians would have to be in Fantasyland * Paul Krugman's Keynesian experiment is blowing up the U.S. economy * Everybody will figure it out before Paul Krugman does Our Sponsors: * Check out FRE and use my code LISTEN20 for a great deal: https://frepouch.com * Check out Infinite Epigenetics: https://infiniteepigenetics.com/GOLD * Check out Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.com Privacy & Opt-Out: https://redcircle.com/privacy