Inflation Is Going Up Whether We Raise Rates Or Not

Disclaimer: This is all my personal DD; DYOR, of course, or else you're the regard listening some other regard on r / cc and thus deserve no sympathy.

We keep talking about rate hikes as if they're a solution to inflation, but nobody's talking about the reality that inflation (at least as measured by CPI) continues to go up despite higher rates.

The reason for this is that rate hikes make the interest payments on the already-issued bonds higher, and that on its own makes everything net inflationary even after all the tightening and rate hikes. I'm not talking about the bonds owned by JPow; I'm talking about the ones owned by private entities like JP Morgan or even Mom&Pop.

When a government bond matures, the principal amount, which hasn't been in circulation since before the issuance of the bond, comes back to the boomers that own them (albeit through a bunch of middleman counterparties in the finance industry); this is obviously inflationary, and that's not even counting the interest payments, which, by definition, circulate new money that never existed before when they get paid out.

Every time JPow tightens, the rate on the interest payments goes up, and Janet Yellen gives out more money to the boomers and the institutions. That's where the inflation is coming from, regards; this is why, instead of expecting inflation to go down b/c of higher rates like the Fed does, I expect it to go up despite higher rates.

TL;DR (in regard speak): I borrow money from you, and I spend it all on hookers and blow, so now I have nothing to pay you back with. My solution to this problem is to empty out your kid's piggy bank, replace it with Monopoly money, use the real stuff to pay you back, and convince your kid that everything is fine and it's him who made a mistake by not working harder and stashing enough [Monopoly] money. Problem is, your kid's out killing rats in the train station for food b/c he's shit poor now, and I have to give him something to stop him from bitching about it... So here I am looking for access to your unborn grandchildren's piggy banks...