Inflation and the Rule of 72
In the world of investing, there is a well-known concept referred to as the Rule of 72.
In the world of investing, there is a well-known concept referred to as the Rule of 72.
On June 19, 2022, geopolitical analyst Ian Bremmer posted the following on Twitter:
It’s time to reprogram the conditions of the economy to serve the many rather than the few.
On June 22, President Joe Biden called for a tax holiday for the next three months. As of this writing, it still has to be approved by congress.
“An economic foundation that was built on cheap money and debt.”
Central bank “stimulus” is a nonsensical policy approach which caused prices to surge over the last two years. Look at the charts below:
Seventeen months ago, as the keys to the oval office changed hands, for all of the political animus and theatrics, one thing seemed a given: the US
The most pressing insight on Fed policy is not the dollar's declining purchasing power or the threat of hyperinflation, but the costs of the malinvestment that occurs in a low interest rate environment.