Inflation rates in the US have skyrocketed with the casual money printing and trillions of dollars in stimulus checks. It has hit a record high of nearly 7% in 40 years, and this is on paper. In the real world, the rates are even worse. While the Feds have been saying that they want to reduce inflation and are taking the necessary steps, all they have done is raise the interest rates by 25 basis points till now. Therefore, the CEO of Almonty Industries says that Feds could take 10 years to control inflation.
It’s going to be difficult to control inflation
The CEO of Almonty Industries, Lewis Black, says that inflation can only be controlled by raising the interest rates and not spending money. However, the federal reserve has added another $46 billion in debt to its balance sheet. This shows that their actions do not coincide with their words.
Lewis points out that, yes, the inflation rates are soaring even higher due to the Russia-Ukraine crisis. But a lot of commodities were already at all-time highs before the war even broke out. In fact, the way the US government is printing money was bound to hurt the economy really bad. It seems people are blaming Putin for this, but it’s not all his fault. Unless the Feds acknowledge that they have a problem going on here and it’s their responsibility to fix the mess, inflation will continue to skyrocket.
If appropriate actions are not taken now, it could take 10 long years or even more to get inflation back to previous levels. There needs to be some aggression. Raising 25 basis points every few months isn’t going to work in such a situation at a point where the war has already disrupted supply chains.
About Lewis Black
Lewis Black is a partner with Almonty Partners LLC and has worked in the tungsten mining sector for over 15 years. He was Chairman and Chief Executive Officer of Primary Metals Inc. (“PMI”), a former TSX-V listed tungsten mining company, from June 2005 until December 2007. Mr. Black also formerly worked for SC Mining Tungsten in Thailand as the head of sales and marketing.
What are your thoughts as Lewis says that Feds could take 10 years to control inflation? And do you think Jerome will actually take to his words and start raising inflation rates more aggressively? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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