Industrial Investment: Inflation can't fall to 2%! Wall Street predator: The Federal Reserve has fired all the "bullets"

The U.S. Consumer Price Index (CPI) data for July was released last week。Although the overall data rose slightly from June，But most mainstream analysts agree that，This shows that the Federal Reserve is fighting backInflationObtained in terms ofNow.greater progress。Actually.，Most mainstream pundits seem toallbelieve，The Federal Reserve is about to win this battle，andPush the CPI back to 2%.ofgoal。ButWall Street CrocodilePeter· Peter SchiffSay they are wrongNow.。

Investors are very concerned about JulyofCPI report，It's not because they're worriedInflation，whileIt's because they're worried about high interest rates。Because there are many people in the marketofLeverage is high，They have been enjoying cheap money for over a decadeoffeast。Therefore，Everybody.allWaitingInflationBack to 2%，So interest rates can come down。“That's what they care about.of，whileNot milkofpriceorgasolineofprice。currencyAnd creditofThe price is for everyoneallcareof”，Schiff says。

Due to the fact that the Federal Reserve has kept interest rates artificially low for a long time，Everybody.allInspired to accumulate a pile of debt。Now.，The debt problem is coming to its own。He expressed that，“Everybody.allAct as if interest rates will never rise。Certainly.，This is stupid.of，becauseitThey will inevitably rise in the end。But nobody cared.。Everybody.allI want to play musicofTime to party and dance。They don't care.itWill it eventually stop?”。

Schiff says，Everyone nowallWaiting for lowerofinterest rate，But theyWon't get what you want。becauseInflationThe rate will not fall back to 2%.。That can't happen.of。

Actually.，Considering the government and the Federal Reserve's manufacturingofallInflation，CPI should not return to 2%.。He expressed that，“Remember，CPI measurementofIs the price。ButInflationandIt's not that prices are rising，alsoIt's not about rising wages.orRising costs，whileYescurrencySupply rises”。

Societe Generale InvestmentThe author believes that although currentlycurrencySupply contracted slightly，But during the epidemic，currencySupply is on recordofspeed increase。This was after the 2008 financial crisiscurrencySubstantial increase in supplyofon the basis ofof。Schiff claims，“You can't just raise interest rates from 0 to5.25% -5.5% and the likeofmeasure，Then keep it for about a yearoftimeJust completelyEliminate allofInflation。It's not possible.ofEspecially before we're officially in a recession，Federal GovernmentofThe budget deficit has explodedoftime”。

Schiff saysInflationWill get worse。He pointed out that，Many people don't seem to realize that rising interest rates are rising prices。He expressed that，“The interest rate iscurrencyofprice。currencyRising prices will affect everythingofprice。I think a lot of other products and services may have a long way to go to make up for this lossofWay to go”。

Interest rates are a cost structureofpart，Taking into account wage growth，This will be passed on to consumers。But thisandIt doesn't mean that rising wages lead to rising prices。Inflation，orThe person saidcurrencyCreation isThis causes wages and prices to rise simultaneouslyofculprit。But sometimes there is an orderof，For exampleInflationRising food prices and rents，So workers need moreofmoney。Now theyofEmployers have to deal with themofProduct charges higherofExpenses to make up for wage increasesofcost。

Schiff claims，“But pushcurrencycirculationofIt's money printing.，Yescurrencysupplyofexpansion。So，All those who talk about the wage-price spiralofpersonallwrongNow.。This is a fabrication by the government.of，Try to putInflationBlame the private sector。This is cost-drivenInflationIs the sameof。People say，'Well，The price increase is due toRising costs’。But this is circular logic.，Because'cost 'is just priceofAnother way of saying it.。aloneofThe cost is another personofprice”。

He thinks，So far.，What the Federal Reserve doesofEverythingallUnable to successfullyInflationRate drops to 2%。

The Federal Reserve has successfully reduced the headline CPI figure from 9% to just over 3%.。The sharp drop in oil prices and the strengthening of the dollar have helped to lowerNow.This figure。ButSchiff believes thisOnly temporarilyof。At the same time，coreInflationThe rate is still close to 5%.。itAlmost no drop。

Schiff says，Federal ReserveofInterest rates have exceededNow.5%。Basically，itAlready put allof“bullet”allfinishNow.。Left in the toolboxofNot much.Now.，alsoThere may be one or two more rate hikes。ButInflationWill rebound again，Then the Federal ReservealsoWill be powerless。He believes that:

“Here's the thing.，If the Federal Reserve reallyofRightInflationTake tough measures，Raise interest rates to the level they needoflevel，Then everythingallWill collapse。”