naturalsol

Rate Cuts and Inflation: Linkage Overblown?

C'MON. Inflation is being caused because there are too many US dollars printed.

Period. Commodities are going up because 1) the USD has weaker purchasing power, and 2) investors purchase commoditities as a hedge, ride the upsurge, etc.

What can the Fed do? Resign. Would be the best option, in the long haul. Other than that, they could contract the money supply, which would mean smaller budgets across the board. FACT. We need to consider that GROWTH has reached its limits under a fiat money system.