Tuesday, May 24, 2016

The Inflation Targeting Scam That 
Will Guarantee The Mother 
Of Financial Meltdowns
David Stockman* discusses the insane policy of central bank inflation rate targeting .. "The world’s central banks have enabled so much cheap, uneconomic credit in recent years that massive excess energy and commodity investments have generated a condition of chronic over-supply, and therefore deflationary commodity price trends .. The Fed has been hijacked by a posse of fools who are tilting at inflation targets that are irrelevant and unachievable. There is not a shred of evidence that sustainable growth and real prosperity is better at 2.00% inflation than it is at the 1.60% that has prevailed under their own favored measure of the PCE deflator less food and energy over the past year. And at Peak Debt in an open world economy, they have no capacity to drive the main street economy toward their misbegotten inflation targets, anyway. So months of essentially zero rates in the context of financial markets that have been transformed into gambling casinos can only have one result. To wit, what is coming down the pike is the Mother Of All Financial Meltdowns. And this time it will be evident to the world as to who is responsible for the resulting carnage."
LINK HERE to the essay

No comments: