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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: mishedlo who wrote (79049)5/13/2008 5:47:03 PM
From: ajtj99   of 116555
 
Using pre-1980 CPI calculations, we're at -10% actual Fed Funds Rate currently (2% Rate less 12% inflation).

The Fed Funds being 10% below neutral right now is what's fueling inflation, IMO.

It appears the Fed had a choice - total global meltdown or increasing inflation followed by severe recession. It appears they have chosen the latter.
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