The problem is that the economic and monetary conditions in the US today are markedly different from what they were in 1980. Anyone who thinks the Fed can run the same playbook and achieve the same result is going to experience something akin to my recent kitesurfing episode. In short, what worked in past idyllic conditions will not succeed in the rough, tumble, and competitive times of today.
Using this essay, I want to show readers how the Fed is doomed to fail, and how the more they try to right the ship using Volkernomics, the further they will push the US in a direction that is directly opposite their desired destination. The Fed wants to cool US domestic inflation, but the more they simultaneously raise rates and reduce their balance sheet, the more stimulus will be handed to rich asset holders. The Fed will get a tap on the shoulder by the US Federal Government to change tactics, and I will reference a paper written by an establishment Columbia economics professor Dr. Charles Calomis that was published by none other than the St. Louis Fed. The Fed is telling the market quietly that it fucked up and laying out its path to redemption. And as we know, the path to redemption always requires more financial repression and money printing. Long Live Lord Satoshi!
https://cryptohayes.medium.com/kite-or-board-64bc45d49931#:~:text=The%20problem%20is,Live%20Lord%20Satoshi!