Pressure is mounting on Jerome Powell and the Fed to stop the QE madness and instead start raising interest rates. That policy is equally mad, absent a complete bankruptcy reorganization of the $1.7 quadrillion global speculative bubble, as it will only lead to a wave of uncontrolled bankruptcies in the U.S. and abroad.
Financial guru and media darling Mohamed El Erian, previously head of the world’s largest bond trading company PIMCO and former Global Development Council Chairman under President Obama, told Fox News that the Fed is totally wrong to claim the inflation we are experiencing is temporary. Prices “will go higher, and the Fed has misread the inflation dynamics in a big way,” he stated, and that the Federal Reserve was “still hostage to this notion that it’s transitory.” El Erian said: “The first thing it should do is stop injecting $120 billion every month” in quantitative easing. “It should stop that. Do we really need the Fed to buy $40 billion of mortgages and push house prices even higher? No!”
Larry McDonald, formerly Vice President of Lehman Brothers, agrees about inflation: “It’ll be around for the next three years,” he stated.
