The Fed has trillions of dollars in resources, including access to every economist who walks the Earth. How is it possible to still get things so horribly wrong?
The Fed is controlled by the politicians not the economists. Fed independence is an illusion.
Nice blog post. However, the answer to how much longer is unfortunately, forever. The American people are to apathetic and uneducated. They’ll believe what the Biden Regime and the media say on television. Ron Paul tried to prevent this 10 years ago and he was ignored. So again, to answer your question, which might just be rhetorical, is forever. We the American people will not do anything and nobody will be prosecuted. But, the question does make for good blog content.
Central bankers and their political economy is guided not guided by free-market principles because that would imply they get to do more watching and less doing. Central planners and government officials by definition are the type of people that like to control others.
"Two types of people in this world: those that like to manipulate things and those that like to manipulate people. We call the first group scientists and engineers and the second group politicians and central planners"
Your post suggests that the terrible decisions made by Treasury, Fed, and the administration are *mistakes*. I beg to differ.
1) QE successfully kicked the financial can down the road for many years. Like the game "musical chairs", Brandon got caught when the music stopped. All of the others politicians got away with great retirement plans.
2) Artificially low interest rates allowed the spending spree to continue, while propping up Wall Street, Big Business and asset prices so the "right people" could also have nice retirements.
3) Inflation is the only possible way for the government to get out of its debt problem (more likely, kick that can a little further), while creating an invisible tax on the little people. And who cares about them?
Mistakes? I think not.
Remember in March 2020 and people said that they can't lockdown our economy because it will crash? And the answer was "The economy will come ROARING back by fall."
They knew they were lying when they said that and we knew they were lying. They knew we knew they were lying too but they just don't care.
All of this corona hoax, "over reaction" by the government, which is just a power grab, has collapsed the house of cards.
Of course it is criminal... by the "old" definition of criminal, i.e., caused harm to someone or some people. Now, in this inverted reality, criminal only means "doing what the government doesn't want you to do", then no.
All of the harm they have caused by this ludicrous monetary policy on top of this tyrannical med state is nothing but criminal and, since they know exactly what they're doing, quite evil as well.
The Fed is like the Health Food Store that long ago was forced to concede that most of their profits came from the rack of Hohos and Ding Dongs. No one wants the dry twigs and raisins, and everyone wants to know why they have diabetes while bragging about shopping at the Health Food Store. So we get a Fed that panders by varying the size of the Snickers Bar and writes prescriptions to mitigate the sugar. The system is compelled to reinforce the physicians who try to rationalize irrational behavior. It will change when the electorate begins to ask for something different. I see an analogy in the spread of Wal Mart. There were a lot of 'save our mom and pop stores' protests years ago when Wal Mart was spreading. It was the 'Wal Mart bad, cheap Chinese stuff bad, buy American' campaign. Of course, no one wanted to pay the relatively high prices to save the mom and pop stores in all of these small towns. Those mom and pop stores are equivalent to the responsible monetary policy measures it would take. All of the signs with save 'mom and pops' were made with materials bought at Wal Mart. We are the fringe idiots yelling at the masses how our home grown industry will suffer and die and leave us in a weakened state for the sake of cheaper rubber vomit. And the masses don't care as long as they can get one more trip to 'everyday low prices'. So all that said, maybe high gas prices will get the electorate to develop a better appetite for broccoli and broccoli farmers, if I can stretch that analogy farther than my buddy and stretched 'Stretch Armstrong' when I was seven.
I think the Fed is criminal and not dumb like most Fed critics contend. I really think they are acting dumb to cover up their criminality. I have no proof that they are criminal, but I suspect the Fed is, first and foremost, a criminal enterprise. I think they are at least guilty if insider trading, telegraphing their policy to Wall Street in secret. Actually, Wall Street probably determines the policy and tells the Fed. I think the Fed is secretly loaning money out all over the world without the knowledge of the politicians in charge. They were already caught secretly loaning out $16 Trillion. I think they buy equities on a regular basis. I'm sure that I'm just scratching the surface. But I think that they are just acting dumb to cover up their criminality and they need to be investigated.
Some years ago I was at a luncheon where the keynote speaker was Donald Kohn, then Fed Vice-Chairman. In Q&A I asked if there were any Fed personnel that were trained in Austrian School economics. Bemused, he gathered himself and replied that there were many schools of economic thought represented at the Fed. Obviously not.
As long as the FOMC members, and their staffs, do not suffer the consequences of their policy actions, there will be no changes made. the same is true with politicians. I propose that all of their salaries are reduced by 2% each year and that 2% of their accumulated wealth is confiscated as well in order for them to more fully understand that 2% inflation does not equal stable prices. Essentially, they have no skin in the game and the penalty for being wrong, even if they are wrong for 30 years in a row, is a better job in the next administration. change that and see how their behavior changes.
It is not negligence when it is the intent.... the Fed/member banks are a criminal organization... the intent of which is to own and control everything.. be the lender and buyer of last resort(hat tip to Greg Mannarino).... they set the price of money, have a trading desk for equities, secretly buy bonds... all to the benefit of a very small group of people at the top... the aim is the extermination of the middle class and a consolidation of power and control for those again at the top.... the stated dual mandate of inflation and employment number management is just for show... central banks around the world work in similar manners.... they are the real government
Like a hopeless addict, they are unable to speak openly and honestly about all the corruption and fraud.
And until then,
Until they rock bottom,
There will be no reform...
All the thousands of economists, AND "The committee" running charts and spread sheets and whatever are, IMHO, properly labeled by N.N. Taleb as IYI.
Intellectual Yet Idiot.
"It’s stunning: for the trillions of dollars of resources that they have at their disposal, including access to literally every single human economist that has ever walked the earth, the Fed has displayed what can only be described as a stunningly consistent penchant for getting things dead wrong."
Not really, it's a 100 yr old club that has the unstated objective of preserving the capital structure at the top. The 99% will ebb and flow and is immaterial to the club, as long as the 1% is preserved the economic system can continue (efficiency / equality isn't an objective, only preservation). I came to this conclusion listening to Hank Paulsen in 2008 demand the $800B, not for equality but for preservation - I was a runner at the time, since given up...
The seeds of this current disaster were thrown by "I saved the world Ben Bernanke" during the 2008/2009 financial crisis. Instead of letting the course of failure play out he kicked the can down the road and further inflated the bubble that now needs to burst.
Inner Ginsberg.... “Molloch!” indeed.