Bitcoin; Prepare for Hyperinflation before it is too late. The Fed cannot control Inflation!
The above posted Inflation Reduction Act which just passed today. Is $750 Billion, funded by money printing. It will increase US taxes, and increase IRS oversight, and do nothing to fight inflation. Most of the money will be laundered, and it will add to government debt, and the make the reserve balance of the Fed grow above the $6 trillion mark. See the chart below, where it shows the Federal Reserve balance growing from $1 trillion to $6 since 2008:
Then, look at the Bank of Englands reserve balance, growing from $30 billion to over $1 trillion since 2008:
Then, look at the Baltic Dry Index which measures overseas shipping. This index is down 54% for 2022 and nearly as low as the 2020 corona virus impact levels. Raw materials, especially from China, are NOT shipping. What is this going to do to inflation? What impact will it have on the supply demand balance? When the largest economies in the world are shipping 54%, less raw material, while real inflation is 18% to 20% (US), and much higher in Europe. This will eventually lead to inflation ramping up at a higher pace. Right now the US has been keeping Gas prices down by draining out the SPR (Surplus Petroleum Reserve). Once that is gone in 2023. We will see massive inflation spikes, massive! Below is the Baltic Dry Index forecast:
We have heard from a former Federal Reserve employee, who mentioned that in order to really control inflation, the current Fed Funds Rate would need to be over 30%! It is 3% now.
“Inflation has 𝗻𝗲𝘃𝗲𝗿 come down from above 5% without Fed funds rising above CPI” -- which is 9% right now - Stanley Druckenmiller
The DXY chart, USD index, has now dropped below the trend line and it will pick up speed in that direction now that the Inflation Reduction Act has passed: