{"id":48206,"date":"2019-09-03T13:02:03","date_gmt":"2019-09-03T18:02:03","guid":{"rendered":"https:\/\/olduvai.ca\/?p=48206"},"modified":"2019-09-03T13:02:10","modified_gmt":"2019-09-03T18:02:10","slug":"view-from-the-lake-deflation-debt","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=48206","title":{"rendered":"View from the Lake: Deflation &#038; Debt"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><strong><em><a href=\"https:\/\/www.theinstitutionalriskanalyst.com\/single-post\/2019\/09\/03\/View-from-the-Lake-Deflation-Debt\">View from the Lake: Deflation &amp; Debt<\/a><\/em><\/strong><\/h3>\n\n\n\n<p><strong><em>Grand Lake Stream | The conversations over the Labor Day weekend at Leen\u2019s Lodge ranged from negative interest rates to the efficacy of a bubble gum colored wacky worm vs live bait in late season bass fishing. We\u2019ve mostly decided that a large mouth bass raised in Maine tastes about as good as small mouth bass when flash fried over an open fire.&nbsp;<\/em><\/strong><\/p>\n\n\n\n<p><strong><em>Confirming that quality trumps&nbsp;quantity, we proved empirically that a single issue of&nbsp;Grant\u2019s Interest Rate Observer, supplemented with a few pine cones, is a superior fire starting accelerant than a whole section of&nbsp;The Financial Timesor&nbsp;The Wall Street Journal.<\/em><\/strong><\/p>\n\n\n\n<p><strong><em>One major point of consensus view is that the global investment community needs to stop asking central banks to address issues for which they are neither suited professionally or politically.&nbsp;The spectacle of former New York Fed President William Dudley exhorting his former colleagues on the Federal Open Market Committee to resist President Trump was pathetic and sad, yet another&nbsp;faux pas&nbsp;for the Fed of New York this year.&nbsp;<\/em><\/strong><\/p>\n\n\n\n<p><strong><em>The Dudley rant illustrates the collective madness that has consumed many observers over the past decade.&nbsp;In truth, the crisis of 2008 still has not been resolved.&nbsp; Dudley wrote:&nbsp;<\/em><\/strong><\/p>\n\n\n\n<p><strong><em>\u201cThere\u2019s even an argument that the election itself falls within the Fed\u2019s purview. After all, Trump\u2019s reelection arguably presents a threat to the U.S. and global economy, to the Fed\u2019s independence and its ability to achieve its employment and inflation objectives.\u201d<\/em><\/strong><\/p>\n\n\n\n<p><strong><em>Really?\u00a0 Dudley displays the dangerous\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/papers.ssrn.com\/sol3\/papers.cfm?abstract_id=1664569\" target=\"_blank\">\u201cI am Superman\u201d<\/a>\u00a0complex we wrote about in 2010, a virus that has infected the Federal Reserve System over the past two decades.\u00a0 Mission creep does not begin to describe the pathology of the madness\u00a0that makes Fed officials think themselves omniscient.\u00a0 We challenge Dudley to point to a section of the Federal Reserve Act than authorizes the political activity he suggests.<\/em><\/strong><\/p>\n\n\n\n<p>&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>View from the Lake: Deflation &amp; Debt Grand Lake Stream | The conversations over the Labor Day weekend at Leen\u2019s Lodge ranged from negative interest rates to the efficacy of a bubble gum colored wacky worm vs live bait in late season bass fishing. We\u2019ve mostly decided that a large mouth bass raised in Maine [&hellip;]<\/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":[124,195,7844,27080],"class_list":["post-48206","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-debt","tag-donald-trump","tag-the-institutional-risk-analyst"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48206","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=48206"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48206\/revisions"}],"predecessor-version":[{"id":48208,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48206\/revisions\/48208"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48206"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48206"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48206"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}