Jerome Powell, Chair of the U.S. Federal Reserve, warned last week that the new Covid-19 variant, Omicron, could exacerbate the supply-chain disruptions and possibly lead U.S. inflation to its highest level in 30 years. Our Federal Reserve would like to hide behind another propagated crisis; however, the actual roots of our rising inflation are the central banks and failed government policy.
Poor leadership in our government and in the central banks is the only consistent inflation agitator and the primary obstacle for inflation recovery. Central banks have historically failed to see how their own inabilities, lack of foresight, and fear of the markets always hinder them from distinguishing between transitory inflation and real sustainable inflation. The Federal Reserve operates from a delusional—or possibly even arrogant— belief that they can control inflation at will. This tendency has been their besetting sin for years.