Why This Time Is Different (And Not In A Good Way For Powell)

Authored by MN Gordon via EconomiocPrism.com,

They should have known better.  Fed Chair Jay Powell and Treasury Secretary Janet Yellen, that is.

They spent the better part of 2021 saying consumer price inflation was ‘transitory.’  The two of them are most responsible for this inflation mess.  How could they have been so wrong?

Now the scourge of raging consumer price inflation is here to stay.  This, no doubt, will be a persistent theme in 2022.  Moreover, the Fed’s efforts to tame and control it will be a magnificent source of folly.

To begin, central planners, including central bankers, believe they’re masters of the universe.  That they possess the tools to, in Omar Khayyam’s words, “remould it nearer to the heart’s desire.”

The reality is central bankers are always reacting.  And much of what they do is merely an attempt to cleanup messes of their own making.

Ben Bernanke, then Fed Chair, first commenced the great quantitative easing

Keep reading this article on Zero Hedge - Blog.

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