{"id":39014,"date":"2018-10-11T19:46:55","date_gmt":"2018-10-12T00:46:55","guid":{"rendered":"http:\/\/olduvai.ca\/?p=39014"},"modified":"2018-10-11T19:46:55","modified_gmt":"2018-10-12T00:46:55","slug":"of-course-the-fed-is-crazy","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=39014","title":{"rendered":"Of Course The Fed Is Crazy"},"content":{"rendered":"
\n
\n

Of Course The Fed Is Crazy<\/a><\/h3>\n<\/div>\n<\/header>\n
\n
<\/a><\/center>
Pieter Bruegel the Elder The Triumph of Death <\/b>1562<\/center><\/div>\n<\/div>\n

<\/center>
<\/p>\n

Finally financial \u2018markets\u2019 go through a substantial dip, which Steve Mnuchin claims is just temporary and Donald Trump says is caused by the fact that the Fed is \u2018loco\u2019. Mnuchin may well be right, but it won\u2019t be because he knows something you don\u2019t.<\/p>\n

And Trump is certainly right, but in reality the Fed has been loco for many years, so why be surprised if it acts crazy now? The reason Mnuchin and a million other \u2018experts\u2019 may be right without realizing it is that the Fed has been crazy enough to kill the financial markets.<\/p>\n

Or at least killed what made the markets functional, and beneficial to society. And that may well be exactly what Jay Powell is trying to repair, but he may well not be aware of that either. Looked at from a \u2018benign\u2019 angle, Powell is perhaps raising rates so people can regain insight into what they\u2019re buying.<\/p>\n

The pre-Powell Fed pushed up asset prices (don\u2019t let\u2019s say \u2018values\u2019) to such heights nobody has any insight anymore into what anything is truly worth. And in what was formerly known as the financial markets that was not important, because what were formerly known as investors were making heaps of money regardless.<\/p>\n

Surely they must all have known that this wouldn\u2019t continue?! That it\u2019s just a matter of timing, of knowing when it would end? Oh, but that\u2019s not really possible, is it, without the very price discovery process the Fed successfully strangulated?<\/p>\n

Still, there must also be tons of people left thinking the Fed can kick that can six times to the moon and back, or sixty. If only because they\u2019ve never bothered to think about price discovery, and what role it plays in the very \u2018markets\u2019 they volunteer to spend their money in.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n

<\/center><\/p>\n","protected":false},"excerpt":{"rendered":"

Of Course The Fed Is Crazy Pieter Bruegel the Elder The Triumph of Death 1562 Finally financial \u2018markets\u2019 go through a substantial dip, which Steve Mnuchin claims is just temporary and Donald Trump says is caused by the fact that the Fed is \u2018loco\u2019. Mnuchin may well be right, but it won\u2019t be because he […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5859,11219,303,11404,391,1797,3552,425,22246,22247,22004,13924,717,5177,10522],"class_list":["post-39014","post","type-post","status-publish","format-standard","hentry","category-economics","tag-aaa","tag-crazy","tag-fed","tag-gop","tag-growth","tag-house","tag-income-tax","tag-inequality","tag-millionaires","tag-naked","tag-rates","tag-raul-ilargi-meijer","tag-senate","tag-the-automatic-earth","tag-trump"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39014","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=39014"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39014\/revisions"}],"predecessor-version":[{"id":39015,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/39014\/revisions\/39015"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=39014"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=39014"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=39014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}