Peter St Onge Podcast Ep 126 Weekly Roundup: Zero Inflation from Tariffs
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Jun 23, 2025 The discussion kicks off with the surprising phenomenon of zero inflation amidst trade tensions. A massive $1.1 trillion payout to bankers by the Fed raises eyebrows. The podcast needs to tackle the reality of rising oil prices driven by geopolitical strains. It dives into the intricate relationship between inflation, banking practices, and potential government spending shifts. Lastly, there’s a thought-provoking debate on navigating inflation through alternative currencies like gold and Bitcoin, questioning the future of monetary policy.
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Zero Inflation Despite Tariffs
- Inflation remained low at 1.2% annually two months into the trade war, defying expectations of hyperinflation.
- Tariffs raised import prices but triggered recessions in China and Europe, which lowered demand and offset price rises.
Fed Pays Banks Trillions Annually
- The Fed pays banks $187 billion annually as interest on reserves created by money printing, enriching banks.
- This program acts like a "self-licking ice cream cone" siphoning wealth away from the public to Wall Street.
Iran War's Global Oil Impact
- A war in Iran could double or triple oil prices, severely impacting global inflation and the US economy.
- The main victims of a Persian Gulf oil blockade would be China and other Asian nations, not the US or Europe.