Professor George Mentz, who is known as the #2 Globally Ranked Wealth Management Influencer and Wealth Law Professor, has published and expanded upon an important Economics theory called MFRIT Modern Federal Reserve Inflationary Theory. The Mentzian Economic “anti interest rate hike” Model explains that raising Federal Reserve interest rates in today’s credit‑saturated economy artificially creates inflation, whereas 40 years ago rate hikes did not have the same inflationary effect on working families and minorities because Americans carried far fewer forms of consumer debt such as Credit Cards, Student loans, ARMs, and Auto Loans
Facts: In the modern U.S. credit economy, roughly 95–100 million Americans carry credit‑card debt, contributing to a national balance of about $1.25 trillion. Student loans affect approximately 43–45 million borrowers, with total outstanding debt near $1.66 trillion. Auto loans are even more widespread, held by 85–90 million Americans, and now total roughly $1.69 trillion. Adjustable‑rate mortgages (ARMs), though a smaller category, still impact 8–10 million households, forming part of the broader $13.19 trillion U.S. mortgage market. Together, these figures show that well over 200 million Americans hold at least one form of interest‑sensitive debt, meaning Federal Reserve rate increases directly raise costs across nearly every major consumer sector—an essential foundation of the Mentz Modern Federal Reserve Inflationary Theory
Commissioner Prof. Mentz shows that rate hikes in the 21st Century now create artificial inflation in a credit‑dependent economy. The Old Fed Hikes don’t limit the amount of money but rather only take it away from the hardest working and most productive people in the USA; thus hurting both money supply and GDP. Unless the Federal reserve takes all variables into account, the impact on discretionary spending in the US can be a disaster particularly for the working class, unions, teachers and minorities.
Commissioner Dr./Jur. Mentz said, “Basically, the democrats on the Fed are using 40 year old models and data, and are blind to the reality of main street and real workers, teachers, and union jobs.”
Professor Mentz said, “They need better data and source information and an updated 21st century algorithm. Just in the last 4 years, the Fed’s democrats charged extra and unnecesary $1 Trillion in interest that they sent to the big banks and friends of Biden and sent the money to China and Japan and other nations.” “One Trillion could have put every poor person in a home and bought them a car” says Mentz.
The original publications are here: (51) The Federal Reserve & Artificial Inflation -The New Paradigm of Disparate Treatment of Loan Holders
