The Big short investor Michael Burry recently said that the Feds have no intention of fighting inflation. He further added that their recent point hikes “are for getting elevation before stocks and the consumer tap out.” This makes a lot of sense because the US is trillions of dollars in debt. With inflation reducing the value of the dollar, they will actually have to pay less. But the price is paid by the common masses.
Inflation is not going anywhere
The Feds haven’t really shown any real intention of controlling the inflation rates. Even with the pace they are increasing the interest rates, it wouldn’t be enough to have any real impact. Michael has also pointed that out saying, “The Fed’s all about reloading the monetary bazooka. So it can ride to the rescue & finance the fiscal put.”
A user on Twitter pointed out an interesting thing about these rate hikes. He said that all central banks from around the world are raising interest rates at the same time and by the same margin. They might be thinking it will be good enough to prevent a collapse. Let’s see how long the authorities can continue this before everything goes to waste. The best thing would be to buy Bitcoin and wait, after doing your own research.
It’s worse than it seems
The government has reported that the inflation was around 8.5% around March. But if you take a look at real-world data, the price hikes have been much worse than this. Peter Schiff pointed out that import prices rose by 12.5% in March and the export prices by 18.8% on average. This brings the hike to nearly 15.65% which is nearly double what’s being reported. So, it’s clear that the authorities haven’t been accurately showing the data in their reports.
Unless the rate hikes are more frequent, inflation will not come down. In the past, James Bullard, President of the Federal Reserve Bank, has also called for faster hikes to bring things under control.
What are your thoughts on Michael Burry as he says that the Feds have no intention of fighting inflation? And do you think we are soon going to be in the midst of an economic disaster? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Davinci Jeremie, Bitcoin influencer from 2013, involved in a rugpull scam.
