Why the Fed's inflation strategy will fail--commentary - 0 views
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This is because the current doctrine adopted by global central bankers is that growth comes from inflation; and without inflation there can be no growth.
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One of the new strategies deployed by central bankers to raise prices is to push interest rates into negative territory.
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negative interest rates are mostly about keeping insolvent governments afloat by constantly reducing debt-service payments.
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And achieving the Fed's 2-percent inflation target is exactly the type of thing that would the cause such a surge in borrowing costs.
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Once inflation targets are reached, they will have to begin winding down purchases of sovereign debt or risk pushing prices out of control.