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Rate Hikes To Infinity And Beyond…

More than 90 Central Banks have now lifted rates, more than half by at least 75 basis points in one go this year. Last night the UK lifted by 0.5% and we look at their outlook, as more channel Paul Volcker who is widely acknowledged as the premier inflation fighter in Federal Reserve history.

When President Carter nominated him to be Fed Chair in July 1979, Volcker knew he faced a daunting task. Inflation was 11 percent, inflicting pain on financial markets and economic performance, and the second oil shock was unfolding. The Fed’s lack of inflation-fighting credibility had generated severe currency devaluation and a U.S. dollar crisis in late 1978.

At his confirmation hearings before the Senate Banking Committee, Volcker made his views clear. The Fed would have to clamp down on monetary policy to reverse the damaging upward price-wage cycle and wring out inflationary expectations. To his credit, Carter supported Volcker, even though he knew it may cause a recession, as did President Reagan.

Volcker took heat when the Fed sent rates soaring and the economy incurred back-to-back recessions.

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Written by Walk The World

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  1. Merchants control the price of goods and services, not Central Banks

    We raise prices when input costs, such as interest rates, go up

    Obviously these Central Bankers have never run a business

  2. The tight labor is due to misallocation of resources from the private sector to the public sector. Ineffective vaccines through the excess supply of unwanted covid jabs is one example. Department of Space in Australia is another since internet speeds are cable based with the cheapest upload speeds at 0.8 mb/s.

  3. 25 million people. One third in economy . Vast resources. Ripped off 100% . Well past time for self preservation. Stop exporting our ability to survive. Gas,food,coal,uranium.

  4. The rate hike dance has turned into a ball room blitz.

    On a serious note though if you live in the UK leave now, Move to Australia, down size live in the country side.
    Do what ever you can, left wing / right wing it does not matter.

    I don't see good things coming in the next 10 years in the UK at all.

    Interest rates are so low and inflation is very high.
    There is no where safe to hide wealth – bonds gold real estate.

    Jim rogers in 2010 said invest in Farming land and commodities, Farming land for after the crash, and commodities for during, they are long lasting and required for human life to exist.

    Russia is selling gas & oil to china – who then is upselling it to the EU – when China is ready to cause massive pain as the UK and EU become arrogant that the supply will be stead *even at a lower rate than required* the rug could be pulled from under them.

    Then in the turmoil China has a large opening to take Taiwan by force.

    Challenging the US, and the USD as reserve currency.

    Bond yield at all time low – strategic oil reserves empty the US unable to mobilize against China & Russia moves into Ukraine & Taiwan.

    You can hope in one hand – and shit in the other
    see what one comes true first.

    I personally don't have high hopes.
    Also Digital currency coming to replace the dollar if it collapses – turning Australia into a digital only system.

    Make a crisis – to sell the cure.

  5. Martin please make a video about xrp and the s.e.c court case.
    Xrp has all banks as partners and will play a big part in international money transfer and supplying liquidity to banks.
    Yes i own xrp but i think its worth a mention.
    it may play a big part in future economics as they are also partnered with w.e.f.

  6. We need another Volker to fix this, lets hope Jerome Powell becomes that. Hated during his time as chair, but revered in hindsight for doing what needed to be done.

  7. What else will break?
    Powell said it last week – property is the goal. Why is this not a major headline across media outlets? The last time something broke in the US it was an historical event involving housing.

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