South Carolina Has $1.8 Billion in a Bank Account. They Don't Know Where...
Pro-Terrorist Horde Invades New York City to Disrupt Biden's Swanky Fundraiser
Occupied Gaza
PolitiFact Fact-Shifting for Biden, the Press Loses With a DeSantis Win, and MSNBC...
Go Touch Some Grass
Biden Administration Locking Up Public Lands from West to East
Jon Stewart, the Tribeca Trickster of Real Estate
Only Democrats Get to Lie on NBC News
Donald Trump: The Non-PC Candidate
Ronald Reagan: The Man Who Cut Taxes From 70 to 28 Percent
Republicans Thwart Democrat Scheme to Raise Gas Prices
The Future Looks...Old?
Not Exactly Something Normal
Senate Judiciary Committee Should Prioritize Main Street Over Wall Street with Free Market...
Some Unpleasant Truths About Islam and the West
OPINION

Get Ready for Force "Fed" Inflation

The opinions expressed by columnists are their own and do not necessarily represent the views of Townhall.com.
Advertisement
Advertisement
Advertisement

Chicago Fed President Charles Evans made an appearance on CNBC yesterday, and what he said was very interesting. Essentially, Evans told us that he’s nervous about economic recovery, about the lack of job creation and about sluggish housing. Without saying that the Fed is going to continue to force-feed us inflation, he said they’re going to continue to force-feed us inflation.

Advertisement

"Strong accommodation needs to be in place for a substantial period of time," he said. "If we could sort of make everybody understand that this is going to be in place for a longer period of time, we could knock out some of that restraint that comes about when people talk about premature tightening."

For anyone still talking about “premature tightening”—and I know you’re out there because I’ve spoken to some of you—I have just one question: What are you drinking? Look at what the Fed has already done. They’re not just going to walk away from the plan at this point. Let’s wait and see what happens with their meeting later today, but I’m fairly certain that the minutes will further substantiate that they have no intention of trying to guide the inflation genie back toward the bottle.

Remember what happened the last time we were force-fed inflation as a means to lift the economy out of a deep recession. In 1932, soybeans were 44 cents/bushel. By 1952, they were $4.50. Looking at the front-month contract on soybeans today, they’re over $14/bushel. We used to laugh at beans in the teens, and now it’s the norm. Mark my words: after a couple more years of currency-debasing-as-policy, we’ll not only be talking about $20+ soybeans, we’ll be talking about higher prices on everything across the board.

Advertisement

--

On the show this morning I talked quite a bit about how the SEC began as a regulatory agency with good intentions but has turned into a bloated, billion-dollar leviathan that’s run by lawyers who have no clue how to regulate Wall Street. William D. Cohan, a Bloomberg columnist, made another compelling argument about why it may be time to do away with the last remaining New Deal agency. I encourage you all to read it.

www.thejackbshow.com
Facebook / Twitter


John Ransom | Create Your Badge

See more top stories from Townhall Finance. New Homepage, more content. Be the best informed fiscal conservative:

 

John Ransom The Fragile Obama Whackosystem
Dave Ramsey Dave Says Borrower is the Slave to the Lender
Mike Shedlock Consumer Confidence Pluges; 12 States in Contraction
Jack Bouroudjian Get Ready for Force "Fed" Inflation
George Friedman Libya: A Premature Victory Celebration
Carrie Schwab Pomerantz Reverse Mortgages
Jeff Carter Chicago Fed Pres on QEs
Political Calculations Criminal Alien Incarcerations in State and Local Jails
Larry Kudlow Irene's Broken Windows
Email Ransom thfinance@mail.com
Twitter http://twitter.com/#!/bamransom
Advertisement

Join the conversation as a VIP Member

Recommended

Trending on Townhall Videos