Concerning a new 'unofficial' Fed target for inflation of 3% (or 3-4%), Rickards has been saying that for years the Fed has been increasingly desperate to get inflation up even to its 2% target, but wasn't able to do it.
The reason the Fed always needs some inflation is that in a debt based monetary system like we have, you have to continually create new money to cover the cost of the ever increasing debt created. In this system, money is 'lent' into existence, at interest. Hence the need to continually expand the money supply to provide money to cover the debt service.
The other aspect to wanting higher inflation is with the debt level now having gone parabolic, the only way to keep things going is to 'inflate away the value of debt'. So the Fed needed higher inflation, but the problem is that once inflation gets out of the bag, it can zoom much higher than you (the Fed) want.
Rickards says that for years the Fed wanted a minimum of 2% inflation, but couldn't even get that. And they would have preferred 3%, which would further help to inflate away the value of the ever growing mountain of debt.
Anyway, it appears we have entered into the 'twilight' of the dollar system, due to the huge and parabolic debt levels. One would assume they have a plan to transition to another system, like SDRs, or a hybrid system, etc. China-Russia-BRICS are nipping at their heels, so desperation grows for the US/Western globalists. What is the plan? Inquiring minds want to know.
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