OTCPK:KRCLF - Post by User
Post by
cleareyeon Aug 10, 2023 7:17am
123 Views
Post# 35581174
Powell may simply be playing a different game.
Powell may simply be playing a different game.It is evident, as NineLives has correctly stated, that inflation was going up long before the FED acknowledged. It was evident at the time that it would be sticky rather than short lived.
It would have been better for Powell to start fighting inflation much earlier, if that was his want.
I have developed my own theory that Powell used the circumstance to get interest rates up to the 6% level and that he intends on keeping them there. It was his opportunity to bring some value back to money, to calm an insane housing market, etc. etc.
Not sure if I am right, but the outcome seems correct. I personally think that interest rates of 6% will be a much more stable monetary environment.
Inflation will not be tamed with interest rates. It will be energy costs that bring inflation in line. When the "basket" comes out and energy is only one component of inflation I would suggest that people need to dig a little deeper and they will see that energy cost, affects the other important items in the basket, such as food.
Therefore energy has a multiplier effect on inflation. Look back to the times when inflation was tamed, energy costs came down.
I guess the FED could drive energy costs down with interest rates if enough people were starved, kicked out of their homes, prevented from buying a car, etc. But, that's the wrong way to drive energy costs down, imho.
Anyway, sorry for introducing my pet theme on this board.
Inflation is tied directly to the price of gold and KRR.to share price should be tied to the price of gold, although krr seems to be under the thumb of other market forces. So, my intentions were simply to explore where the price of gold is headed.
Good luck everyone.
cleareye.