Goldman Sachs Claims Inflation is Greater Risk to Economy Than COVID-19
Analysts at the Wall Street investment bank Goldman Sachs believe that inflation is a greater risk to the economy than the COVID-19 pandemic.
Goldman Sachs has announced that they believe that the Federal Reserve will begin to hike interest rates as they brace to deal with the inflation caused by the unprecedented printing and spending binge that happened in the past year or so.
“Higher-than-expected US inflation recently prompted us to pull forward our forecast for Fed liftoff by a full year to July 2022. We now expect core PCE inflation to remain above 3% — and core CPI inflation above 4% — when the QE taper concludes, which would make a seamless move from tapering to rate hikes the path of least resistance. After liftoff, we see a second hike in November 2022 and two hikes per year after that,” the investment bank announced.
“The key to this gradual pace is a partial moderation in goods prices and in overall inflation, driven by a combination of slowing demand and rising supply. On the demand side, we expect spending on goods to moderate as US government income support normalizes and service activity rebounds. Although US real goods consumption remains nearly 10% above trend, this already represents a decline of 5% since the peak in March when households received stimulus checks, and the adjustment likely has further to go,” they continued.
“This means that the biggest risk to the global economy may no longer be a renewed downturn because of fresh virus outbreaks, but may now be higher inflation because of tight goods supplies and excessive wage pressure. Although we expect a significant part of the goods supply squeeze to abate over the next year, at present the stress on supply chains is substantial and inventories in semiconductors, durable goods, and energy markets are very low. In such an environment, even a moderate production outage resulting from covid outbreaks in China, an energy demand spike related to a cold winter, or other short-term disruptions could have sizable economic effects,” Goldman added.
Big League Politics has reported on the Federal Reserve inflationary scam bound to collapse at some point:
“Fox News host Tucker Carlson exposed the U.S. central bank, the Federal Reserve, during an episode of his eponymous primetime show on Tuesday night.
Carlson said that although the Federal Reserve may have been initiated under a noble pretense, they have since strayed from their mandate and become hostile toward the dollar they are supposed to be protecting.
“It’s the classic story of the fireman turned arsonist, or for that matter, the COVID czar who helped to create COVID. Irony of ironies, it seems like we read a lot of those lately,” Carlson said.
He explained the inflationary process known as quantitative easing, which has been the policy on the books since the financial crisis of 2008. The markets are being pumped up with cheap money, and it benefits Wall Street while destroying the financial security of main street.
“Every month, Federal Reserve officials print more than $100 billion new dollars in American currency and then they inject those dollars in our financial system by buying assets like bonds and securities. This is not a normal thing to do. It is a radical thing to do, and it was supposed to be temporary. It was in response to a crisis,” Carlson said.
“In medical terms, quantitative easing is like chemotherapy. There are times when it can save your life but fundamentally, it is poison. If you keep taking it, it will kill you. Pretty much everyone agrees on that. And pretty much everyone understands that ultimately quantitative easing causes horrible inflation, and it is easy to understand why. You don’t need to be an expert. The more money you print, the less that money is worth,” he added.
Carlson explained how the policies of the Federal Reserve are “immoral” and done at the behest of banksters and influential Democrat Party donors. He said that fed officials are refusing to taper their quantitative easing despite repeated assurances they will curtail the reckless policies.
He argued that “the actual American economy is in trouble and there are many signs of it.”
“Labor markets are tight right now because a lot of Americans have simply dropped out of the labor force. 4.3 million people walked off the job last month. Some of them were forced out by Joe Biden’s vaccine mandates. Projections for GDP growth just dropped from six percent to one and a half percent. Small businesses across the country are dying, and maybe most ominous of all. Inflation is here. It’s not just a temporary problem caused by COVID disrupted supply chains. It is absolutely real,” Carlson said.
He used many examples to show how inflation is skyrocketing, including rising food costs and the soaring cost of cars and homes. Carlson said that Biden’s insane government spending is making the Federal Reserve’s policies hurt Americans even moreso, but the elites don’t seem to care very much.
Carlson explained: “Now, in a normal country, this would be a huge concern. But because the people who make our policy don’t care about the middle class, this is a bargain well worth making. Bloomberg News just published a piece with this headline, which we’re not making up. They’re celebrating the disaster, “America needs higher, longer lasting inflation.”
“If you can even imagine writing something like this, does America need more emphysema to its grotesque? Now, most people may not know this is happening now, normal people don’t read Bloomberg News, they may be unaware that these attitudes even exist in what they assumed was their country, and the Biden administration would like to keep it that way. Would like to keep the population from finding out what’s happening,” he added.“
Economic calamity is likely on the horizon, and even Wall Street is admitting it at this point. It is time to hedge against the dollar at this point.
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