Did the Fed's #2 Quit to Avoid Blame for the Coming Inflationary Storm?

Phoenix Capital Research's picture

Inflation is coming.

Vice-Fed Chair Stanley Fischer recently resigned unexpectedly from the Federal Reserve. Many were left wondering why Fischer would give up his role as the Fed’s second in command, arguably the second most powerful Central Banking position in the world.

Wonder no more:

The current soft patch of inflation will not last, the No.2 official on the U.S. central bank said Wednesday.

“I still believe we will have higher inflation,” Fischer said, in an interview on Bloomberg TV.

With unemployment declining, wages will go up “at some stage,” Fischer said.

“You have to wait a long time, usually longer than you expected to wait for something to happen, but then, if it is a very basic force... it will show up,” Fischer said.

Source: Marketwatch

It’s not difficult to connect the dots here. The last time the US had a major inflationary spike (the 1970s) the head of the Federal Reserve at the time (Paul Volcker) was fired.

So was Fischer abandoning ship in anticipation of another similar disaster?

Consider that the $USD has already collapsed over 10% this year. And that's before inflation even clears the Fed target of 2%. Indeed, the long-term chart is even uglier with the $USD looking to collapse in a horrifying spiral over the next 12 months.

This is THE BIG MONEY trend today. Already the financial system is showing signs of it. And smart investors will use it to generate literal fortunes.

We just published a Special Investment Report concerning a FIVE secret investments you can use to make inflation pay you as it rips through the financial system in the months ahead

The report is titled Survive the Inflationary Storm

We are making just 100 copies available to the public.

To pick up yours, swing by:

https://www.phoenixcapitalmarketing.com/inflationstorm.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

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ali-ali-al-qomfri's picture

perhaps he is studied in the art of the Kashkari-Dash.

Run for the hills, the rath of hell cometh forth!

MrBoompi's picture

What the Fed might be worried about is if Trump orders the BLS to accurately report inflation.  

el buitre's picture

Our slow motion hyperinflation (1913 dollar now has 3 cents purchasing power) is about to speed up hugely like in Venezuela.  Current rate of price inflation is total BS - really closer to 8% per annum.

Lost in translation's picture

PC is a little s l o w , aren't they...

Seasmoke's picture

Volker may have been fired. But it was because he admitted he allowed Gold to become too strong.

Hugh Mann's picture

It's best to abandon ship before it sinks.

 

optimator's picture

Keep count of the El Al Airline one way tickets to Israel, no extradition which is why its there.  And study Weimar German history.

Anon2017's picture

Germany's problems with inflation started during WWI while the Kaiser was still in charge. When the central bank run out of the ability to sell new debt at reasonable interest rates, it simply resorted to printing money. After the war ended, the government could have easily raised taxes to cover reparations and accumulated war debt but chose to cut taxes instead. The US went the Germans one better during its Middle East wars. It cut taxes instead of raising them and pushed the day of reckoning forward by an unknown number of years. 

The first few chapters of "The Rise and Fall of the Third Reich", especially pages 57-62, provide a pretty good summary of the problems Germany faced during the Weimar Years, including the collapse of the German mark. 

 

Games Without Frontiers's picture

Bonus points if you can distinguish the rat from the banker.

Silver Savior's picture

I have already been using inflation like a tool because it's everywhere. I like hedging against it if you know what I mean. I mean I am kind of glad I been experiencing inflation because it's caused me to act on it.

I think everyone experiences inflation but most are too drugged out or falsely occupied to notice. 

Less than Zero's picture

Theirs a reason for the hight on the minimum wage, 1 step forward 3 steps back.

Grandad Grumps's picture

More likely he knows what is coming and is heading for the bunker a little early.

Pernicious Gold Phallusy's picture

"The last time the US had a major inflationary spike (the 1970s) the head of the Federal Reserve at the time (Paul Volcker) was fired."

WHAT? No, Volcker wasn't fired during the spike. He was Fed chair until 1987.

bunkers's picture

Food prices, such as hot chocolate, nuts and dishwashing liquid are doubling, overnight, since August.

We have grown food indoors and outdoors. We plant seeds, indoors, in February, using a seedling heat mat for a higher germination rate, fertilizer and grow lights. At some point we will, all, have to think outside the box.

Anon2017's picture

You must be a lousy shopper. Yes the prices of many products and services have gone up in the past year but nothing I regularly buy has doubled. Get yourself a Costco membership. 

optimator's picture

Stockpile anything without an expiration date that's small and easy to store starting with razor blades.

Silver Savior's picture

I too have seen price doubling and the like. The people who actually think inflation is 2% or less are nuts. It's 10% a year. Watching for a worth nothing dollar. 

optimator's picture

In the 80's the 5 year CD doubled in 5 years. 

Knave Dave's picture

"It’s not difficult to connect the dots here. The last time the US had a major inflationary spike (the 1970s) the head of the Federal Reserve at the time (Paul Volcker) was fired."

Huh?

Just the opposite. The last time the US had a major inflationary spike, Paul Volcker was HIRED as the head of the Federal Reserve:

"He was Chairman of the Federal Reserve under Presidents Jimmy Carter and Ronald Reagan from August 1979 to August 1987. He is widely credited with ending the high levels of inflation seen in the United States during the 1970s and early 1980s." (Wikipedia)

SoDamnMad's picture

Paul Volker stopped the housing bubble by driving mortgge  rates to 18%. My company movement me on a promotion and covered the rte difference between my new and my former mortgage.  Then when rates came down they told me to refinance. People sent Volker their house keys in anger but he did what was needed.  Not too many with the balls of Volker anymore.

bonin006's picture

Graham Summers likes to lie with the truth. Volker was fired, but not because of inflation, which as you say above he is credited with solving. Wikipedia says he: "... was fired because the Reagan administration didn't believe he was an adequate de-regulator."

JailBanksters's picture

Maybe he doesn't want to be a part of the scam anymore, and wants to be honest ?

Nah, he's Jewish. There must be some other reason.

optimator's picture

Incorrect.  He is a Zionist (Jew).

grasha87's picture

I'm doing book reviews for Austrian-leaning authors on my Youtube channel

 

https://www.youtube.com/channel/UCuCsBRue2lSxyAM2TNfvqFA/videos?view_as=...

kenny500c's picture

Not so much the inflation but the tight money which will follow, he does not want to be associated with higher rates.

The Alarmist's picture

Does a bear shit in the woods? Fischer is right now probably taking the dust covers off the furniture in his Uruguay retreat, right next to the Bush compound.

Buck Johnson's picture

You know perfectly well he's doing that along with other rich men and women.  When inflation (sorry hyperinfation, no sorry again HYPERSTAGFLATION) hits the US, it's goint to be like burning a candle at both ends.  It will hurt everybody from the savers to the workers to the retireees and it will last for years.

 

 

rycK's picture
$ is at 93.95 todayso the chart is way out of date.
new game's picture

when the dolla dump starts from the oil/gold/yuan trade, the end is nigh...

just another fiat death.

shizzledizzle's picture

Anyone notice or have anu explanation for AUY 1/19 $10 calls? The volume and open interest would be what I am refering to.