Dated February 25, 2025 From Greg Mannarino Newsletter
LIONS... THIS HAS TO BE FIXED, AND FIXED NOW. (Above).
This is the relationship between the CPI, (consumer price index), and the inflation rate. The red circle on the left is the last time we had a crossover which led to an inflation surge in the 1970’s. What reversed this inflation surge, was in 1979, then Federal Reserve Chairman Paul Volcker introduced a new monetary policy of high interest rates. In fact VASTLY higher.
If you do follow my work, then you are aware I have been screaming from rooftops for quite a while now that THE LAST THING WE NEED is lower rates, like Sen. Elizabeth Warren and President Trump are now calling for.WE NEED MUCH HIGHER RATES! BECAUSE IF ACTION IS NOT TAKEN IMMEDIATELY, what is about to happen here in the US regarding inflation, will make what happened last time in the 1970’s look like a walk in the park…
Immediate action is needed now due to the LAG EFFECT. Even when Volcker raised rates in 1979, the effect of higher rates took time to take effect… we will have the same situation here. If you do follow my work, then you are aware I have been screaming from rooftops for quite a while now that THE LAST THING WE NEED is lower rates, like Sen. Elizabeth Warren and President Trump are now calling for.
WE NEED MUCH HIGHER RATES! BECAUSE IF ACTION IS NOT TAKEN IMMEDIATELY, what is about to happen here in the US regarding inflation, will make what happened last time in the 1970’s look like a walk in the park…Immediate action is needed now due to the LAG EFFECT. Even when Volcker raised rates in 1979, the effect of higher rates took time to take effect… we will have the same situation here.
GM