Historically, the only way a nations government is able to tackle inflation is to raise interest rates for borrowing money above the rate at which inflation is. Currently, our officially published inflation rate is almost at 9%, but many would say that the real number is higher than that.
Meanwhile… the fed has raised rates by … .75% and they’re going slow because this small amount has been enough to tank a lot of assets. Don’t worry…big daddy JPOW might raise it another .75 to a whole 1.5% interest rate!!! WOW
So basically, the longer inflation occurs, the more it begins to cement itself and reinforce itself through positive feedback loops. To combat this, we must raise rates higher than 9%, but doing so would most likely mean a depression level event. So we’re going up slowly. But that’s just causing inflation to get worse…
At this point, how is hyperinflation not in the cards?
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