"I think the Fed is under the misconception that it controls events. Sometimes, events control the Fed...The Fed thinks that not only can it control events, but it can measure them. It believes it can pinpoint the rate of inflation."
"There's a gale of inflation of all kinds in progress, [that will] overwhelm our monetary masters. [Inflation is a] clear and present and will manifest itself in our everyday lives..."I think the astounding complacency toward, or indifference of, the evident excesses in our monetary and fiscal affairs...I think the lack of concern about those things is perhaps the most striking inflationary augur I know of..."
"They never do. Greek interest rates were low right up until they weren't. Interest rates did not signal the inflation of the 1970s, or the disinflation of the 1980s. Lehman borrowed at low rates until it didn't. Nobody expects a debt crisis, or it would have already happened."
"The dramatic growth in the US money supply...that began in March 2020 will do what increases in the money supply always do. Money growth will lead in the first instance (1-9 months) to asset-price inflation. Then, a second stage will set in. Over a 6-18-month period after a monetary injection occurs, economic activity will pick up. Ultimately, the prices of goods and services will increase. That usually takes between 12 and 24 months after the original monetary injection."