Yeah increasingly I think the Fed (money printer, rate setter), the Treasury (debt issuer/spending), and the Bureau of Labor Statistics (sets CPI) are working hand in glove. The market watch article you cite mentions how the issuance of short term debt (bills) is more stimulative than long term debt (notes and bonds). I cannot explain that mechanism to you, but sounds plausible to me. What I think we are lied to about and will continue to be lied about are:
1.
The actual amount on the Fed balance sheet (ie monetary creation - when one entity controls the ability to create money it has always been abused throughout history - even in times before FIAT they would clip coins and re smelt them so that each coin would have less precious metal)
2.
The Fed uses this hidden monetary creation to purchase T-bills, T-notes and Bonds to help “stabilize” the price of the cost of debt to the US government (artificially manipulates the above board market so that rates don’t skyrocket). The point of a market is to discover truth. The reason why we want the open market to determine the yield on treasuries is because it will ensure there is a buyer (investor) for all the debt of the USG. In order to control the USG budget line of “interest payments” we manipulate the market.
3.
The CPI by the bureau of labor statistics is off by at least 100%. When you dig into the practice of hedonic adjustments you realize that the CPI number is complete nonsense. They get to make that number appear any which way they want.
So we have a central bank which is unafraid to abuse the creation of money (and lie about it). We have a treasury that is more interested in reducing interest payments than having a sustainable and truth oriented treasuries market and a Bureau of Labor statistics that can make inflation appear much less than it is. And then we get lied to by Paul Krugman how we are all wrong. While we aren’t in the Zimbabwe zone in terms of actual economic havoc, the table has been set, the rubicons have been crossed, now it is only a question of when and to what degree.
This is a terrific summation of our plight, and my assessment as well, to the word. That includes the "Zimbabwe zone." Math does not yield to Utopian fantasies: the landing will be hard.
I was in Zimbabwe in 2010. While there I acquired a 100 trillion dollar Zimbabwean bank note. It was legal tender but, of course, you couldn't even buy the time of day with it. The only thing that saved Zimbabwe was the US dollar. But, of course, the dollar was worth something back then.
I remember when Paul Krugman prophesied that the economy would collapse under The Donald. Does anyone actually listen to him anymore?
Yeah increasingly I think the Fed (money printer, rate setter), the Treasury (debt issuer/spending), and the Bureau of Labor Statistics (sets CPI) are working hand in glove. The market watch article you cite mentions how the issuance of short term debt (bills) is more stimulative than long term debt (notes and bonds). I cannot explain that mechanism to you, but sounds plausible to me. What I think we are lied to about and will continue to be lied about are:
1.
The actual amount on the Fed balance sheet (ie monetary creation - when one entity controls the ability to create money it has always been abused throughout history - even in times before FIAT they would clip coins and re smelt them so that each coin would have less precious metal)
2.
The Fed uses this hidden monetary creation to purchase T-bills, T-notes and Bonds to help “stabilize” the price of the cost of debt to the US government (artificially manipulates the above board market so that rates don’t skyrocket). The point of a market is to discover truth. The reason why we want the open market to determine the yield on treasuries is because it will ensure there is a buyer (investor) for all the debt of the USG. In order to control the USG budget line of “interest payments” we manipulate the market.
3.
The CPI by the bureau of labor statistics is off by at least 100%. When you dig into the practice of hedonic adjustments you realize that the CPI number is complete nonsense. They get to make that number appear any which way they want.
So we have a central bank which is unafraid to abuse the creation of money (and lie about it). We have a treasury that is more interested in reducing interest payments than having a sustainable and truth oriented treasuries market and a Bureau of Labor statistics that can make inflation appear much less than it is. And then we get lied to by Paul Krugman how we are all wrong. While we aren’t in the Zimbabwe zone in terms of actual economic havoc, the table has been set, the rubicons have been crossed, now it is only a question of when and to what degree.
This is a terrific summation of our plight, and my assessment as well, to the word. That includes the "Zimbabwe zone." Math does not yield to Utopian fantasies: the landing will be hard.
In other words Liberals/ Progressives/Democrats should not be in charge of ANYTHING
I was in Zimbabwe in 2010. While there I acquired a 100 trillion dollar Zimbabwean bank note. It was legal tender but, of course, you couldn't even buy the time of day with it. The only thing that saved Zimbabwe was the US dollar. But, of course, the dollar was worth something back then.
I remember when Paul Krugman prophesied that the economy would collapse under The Donald. Does anyone actually listen to him anymore?