Annual Banksters' Policy Spin
Yes, it’s been a few weeks since my last ravings but that doesn’t mean I’ve completely disconnected from the insanity raging out there in the Bankster’s Paradise.
On the contrary, I’ve been keeping my fingers on the raging pulse. And that’s why I couldn’t avoid hearing about the latest Fedster shenanigans, coming hot off the heals of this year’s virtual Jackson Hole conference in late August.
But before delving in the burnt meat and potatoes, let’s rewind to a time not too long before Chief Fedster Powell’s big revelation.
This, out of a Reuters piece the day before his big reveal:
“…Fed Chair Jerome Powell begins what may be the tougher task: convincing the public that the central bank can and will deliver in the wake of a pandemic that has arguably eroded trust in U.S. institutions and put a huge chunk of the labor force on the unemployment rolls.
“It is a hard sell on a confusing topic…” (1)
Unimportant yet notable, this piece informs us of “the wake of a pandemic”. So, the pandemic has passed? Referring to the wake, the writer implies that we’re presently in the mess left behind by the pandemic. Yet most governments and health “officials” are saying we’re still in the pandemic. So, which is it?
In any case, I’m also not sure what’s arguable about the eroded trust in U.S. institutions. Are the “mostly peaceful protests” plaguing many American cities not visible proof of the eroded trust, no matter which side of the erosion you identify with?
And what’s arguable about the “huge chunk of the labor force on the unemployment rolls”? Is this reporter squeamish the official numbers? I have no issue with him having a problems with the numbers but perhaps man up and say it right out if you do.
As for the “hard sell on a confusing topic”, well no kidding, Sherlock. I wonder why it’s so. Considering the West is so replete of any financial or economic education, is it any wonder it’s a confusing topic for so many people?
But perhaps that’s the point.
When’s the last time you intently listened to discussions about a topic you understood little, if anything about and thought “Geez, I have no idea what’s being talked about but this sounds absolutely riveting! There’s no way I’ll fall asleep listening to this.”
Or was your response more in tune with Homer Simpson’s: "Boring"?
If the latter, and I’d venture the vast majority have that reaction, it’s further proof nobody cares and the Banksters’ reign continues without opposition.
Then there was the Chief Fedsters big reveal: “[F]ollowing periods when inflation has been running below 2%, appropriate monetary policy will likely aim to achieve inflation moderately above 2% for some time…” (2)
Sigh. Stop with the lingo, Jerome…and…just…say…IT! If doing your part to financially save America, and the world for that matter, is truly in your heart, Jerome, you need to speak the language of the people. Stop dancing around your big words which do nothing except give you strategic outs in the future.
So, here’s what I hear: We, your mighty Fedster overlords, no longer fear the 2% inflation target and will welcome any infraction over and above that target.
Why was this decision made? (2)
“The move comes after the completion of a review the central bank undertook in January 2019 as inflation rates were continuously undershooting its target rate even as unemployment hit record lows in the decade up to [today’s] crisis.
“Core personal consumption expenditures (PCE), the Fed’s preferred measure of inflation, has been below the 2% target since the Great Recession.”
Rather than consider that perhaps it could potentially be that the PCE numbers are not correctly calculated, the geniuses at the Fed instead figured it’d be better to spend time and money to just prepare the public for the fact that further Fed uncontrolled meddling is likely is spur over-the-top inflation numbers in the foreseeable future.
Yes, you heard correctly. With all this bazooka money flying around everywhere courtesy of the last six months, I’m confident the Fedsters are merely preparing the public-at-large for the inevitable “moderately above 2%” inflation.
Except, it will be anything BUT moderate.
Yes, yes, I know, so many different inflation statistics have been showing “weak inflation” for years. And yes, I know that part of the inflation formula is the velocity of money. I respect that without significant movement of money, inflation will stumble.
But, I have no doubt that at some point in time, all these Himalayan mountains of money will be moving and at increasing speed. At that point, buckle up because the inflation ain’t gonna be moderate by any stretch.
What will the Fedsters do then? Sell back the colossal hoard of stocks and bonds it has amassed? Sure, just like Berkshire Hathaway can currently unload any position without moving markets. Because that can happen without anyone noticing and responding only as human nature will dictate.
The Fedsters and all their central bankster buddies can continue fooling themselves of whatever they please but there is no “cure” for human action. Markets may submit to stimulants in the short-term, but like a circus lion, will eventually grow tired of the beatings and lash out in uncontrollable ways.
Of course, I’m just a ranting Recovering Bankster. What do I know?