Warsh set up 5 task forces to study inflation. You only study a problem when you don’t want to solve it. Same game, new players.
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Kevin Warsh’s first FOMC meeting delivered a hawkish surprise — rates held at 3.5-3.75% unanimously, forward guidance was eliminated, and dot plots now project two rate hikes by year-end. But Peter Schiff argues it’s all theater. Instead of actually fighting inflation, Warsh announced five new task forces to “study” the Fed’s balance sheet, communications, data sources, jobs, and inflation itself — the classic government move of establishing committees to avoid solving problems.
Warsh acknowledged inflation is a choice, and Schiff agrees — the Fed has chosen inflation over the alternative of crashing markets and forcing fiscal responsibility since the Greenspan era. The question is whether Warsh will break that tradition when push comes to shove. Schiff says no: Trump won’t tolerate a bear market, the Treasury Secretary is having weekly breakfasts with the Fed Chair, and the political pressure to print will overwhelm any hawkish posturing. Meanwhile, Strategy’s death spiral accelerated with Stretch falling to $89 — wiping out the entire annual yield in one month — while Saylor continues diluting common shareholders to fund dividends he can’t sustain. SpaceX soared past $3 trillion on a 4% float, sucking speculative capital away from crypto and accelerating Bitcoin’s decline to $64,000.
Chapters:
00:00 Warsh Shocks Markets
00:45 Rates Hold Steady
01:26 Trump Versus Powell
03:42 Shortest Fed Statement
06:01 Ample Reserves Contradiction
07:13 Five Task Forces Announced
32:18 Term Insurance Not Investing
33:40 Fed Task Forces Skepticism
39:56 Inflation Tax And Politics
44:37 SpaceX IPO Mania
47:23 Bitcoin Strategy Death Spiral
55:37 Gold Silver Buy The Dip
56:29 Same Fed Same Game Wrap Up
58:29 Closing And Follow Me
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