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PODCAST: John Aidan Byrne talks with Dick Bove on the return of 1970s style inflation in the US

PODCAST: Listen to John Aidan Byrne, Irish commentator based in New York, talks Dick Bove on the return of 1970s style inflation in the US

 


 

Odeon Capital Group’s Dick Bove sees US prices soaring 70s-style as US money printing hits new records, and national debt exceeds $28 trillion

Dick Bove, the famed bank analyst at Odeon Capital Group has issued a stark warning. “In 2022, the United States will back to a 1970s environment,” he says. “In other words, inflation will be out of control and the Fed will have no way to stop it.” In a report, Odeon says that the  Federal Reserve’s monetary policy is not directed toward trying to grow the economy. It is solely oriented toward paying the Federal debt, and this policy is “highly inflationary.”

 

The report notes that, in 2020, the Fed purchased $2.36 trillion in Treasuries and $0.62 trillion in mortgage-backed securities (MBS). The bulk   of the MBS were government guaranteed. By this measure, the Treasury purchases made the Federal Reserve the largest single buyer of United States Federal debt in the world. The purchases of the MBS notably allowed the US government to avoid placing some Ginnie Mae debt on its balance sheet.

Bove, a veteran industry analyst and media pundit, is widely followed on Wall Street. Therefore, his  prognosis of current inflation trends are unsettling. This time around, the surging US inflation rate he predicts—while transparent to consumers in the overall prices for a basket of goods and services—will be concealed in the official government figures, Bove says. The official inflation numbers won’t be REAL.  “They have to disguise it,” he explains in this interview.

Bove has a long and informed view of financial and economic history. His latest research on the return of wicked 1970s inflation is instructive. Back in the 1970s, America witnessed some of the highest rate of inflation in history with interest rates soaring to 20 percent, in a campaign to quell the price surges. Financial historians say central bank policy in America, the break from the gold window, Keynesian economic policy—as well as market and consumer fears—all contributed to a painful decade of high inflation in the 1970s.

In this episode, Bove explains the factors behind the coming new surge, and why Uncle Sam will do everything possible today to cover up and hide the real rate of inflation ahead. Prices in the US, he says, are already showing significant gains as the US money supply grows 10 times faster than the economy.

 

 

 

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