how to fix inflation

 Hi readers 

So the Fed has moved rates almost 2% and inflation in the US has fallen some .3 of a percent.

Ok I'll be honest rate rises don't work in an inflationary environment anyone who has an economics degree will tell you that rates don't do squat to inflation.

The only way to tackle inflation and the reason I'm saying this is because I do know that there are government accounts reading the blog, bank reserves.

The moment you increase bank reserves is the moment you will start to tackle inflation.

Currently bank reserves are at 2% if that was to increase to 10% or even 15%  you would see inflation fall dramatically. Credit is what is pumping inflation and not what people believe. (central banks)

If central banks demand that banks hold 15% capital reserves all credit would stop.

I say this because for every dollar given out as credit banks hold 2% reserve yes thats right 2 cents.

I hope that sinks in.

I found out from the RBA website that $26.6 billion in cash is floating around in the economy.

For those who don't know in Australia you cant take more that $10k in cash out of the bank at the one time. For this amount of cash to be floating around it tells me that people have been slowly storing cash away, and I congratulate them.

Banks are trying to have people move away from cash and use there system of money.

Yet when there technology goes down there is no compensation for loss or damages, just believe in the banking system.

For what its worth I don't believe in banks or the banking system.