Jerome Powell desperately wishes to be Paul Volcker. For those who don't know, Volcker is famous for being the chairman of the Federal Reserve who finally quashed the waves of persistent inflation that rocked the American economy in the 1970s and 1980s.

The Fed Is Eating Itself Jerome Powell desperately wishes to be Paul Volcker. For those who don't know, Volcker is famous for being the chairman of the Federal Reserve who finally quashed the waves of persistent inflation that rocked the American economy in the 1970s and 1980s. While many Americans hated him at the time, Volcker is now loved by financial history books as the man who raised rates up to a peak of 20% in 1981. The result was that by 1983, inflation had finally fallen to less than 3% after nearly 15 years of elevation. But here's why Jerome Powell will never be able to achieve the same task... When Volcker began his fight against inflation, the U.S. only had a deficit of $200 billion. In other words: No matter how high rates rose, the U.S. would never have any problem financing the cost of its debt. But with our country's deficit now at $33 trillion, Jerome Powell is trapped. The U.S. spends $3 trillion a year on entitlements like Social Security... And they're on track to spend $900 billion this year on the interest of our debt alone. Yet, we only take in $2.7 trillion in tax receipts! In short, Jerome Powell will eventually have to cut rates because the interest on our $33 trillion debt is too expensive to pay. (Not to mention, if rates rose to even 10%, that's still only half of where they needed to be for Volcker to accomplish his job.) This is why Stansberry Research founder, Porter Stansberry, has been asking everyone in the independent financial publishing community to bring attention to what he calls the most important warning of his career. Porter shares all the evidence he's looking at today about interest rates, rising unemployment, and other data that tell him we are nearing a tipping point in the market. Check it out right here while it's still available. Regards, Brett Aitken Publisher, Stansberry Research P.S. If you have never heard Porter speak, he's one of the most compelling messengers in our industry... I would watch it for that reason alone. Published by Stansberry Research. You have received this e-mail as part of your subscription to Stansberry Digest. If you no longer wish to receive special offers from Stansberry Digest, click here. You're receiving this e-mail at ignoble.experiment@arconati.us. Stansberry Research welcomes comments or suggestions at feedback@stansberryresearch.com. This address is for feedback only. For questions about your account or to speak with customer service, call 888-261-2693 (U.S.) or 443-839-0986 (international) Monday-Friday, 9 a.m.-5 p.m. Eastern time. Or e-mail info@stansberryresearch.com. Please note: The law prohibits us from giving personalized financial advice. © 2023 Stansberry Research. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Stansberry Research, 1125 N Charles St, Baltimore, MD 21201 stansberryresearch.com.