{"id":60911,"date":"2021-12-12T17:41:39","date_gmt":"2021-12-12T22:41:39","guid":{"rendered":"https:\/\/olduvai.ca\/?p=60911"},"modified":"2021-12-12T17:41:39","modified_gmt":"2021-12-12T22:41:39","slug":"fear-and-inflation-the-timeless-policy-tools-of-discredited-systems","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=60911","title":{"rendered":"Fear and Inflation \u2014 The Timeless Policy Tools of Discredited Systems"},"content":{"rendered":"<header class=\"c-blog-article__header\">\n<h3 class=\"c-blog-article__title\"><a href=\"https:\/\/goldswitzerland.com\/fear-and-inflation-the-timeless-policy-tools-of-discredited-systems\/\">Fear and Inflation \u2014 The Timeless Policy Tools of Discredited Systems<\/a><\/h3>\n<\/header>\n<div class=\"c-blog-article__meta\"><\/div>\n<div class=\"c-blog-article__content\">\n<p>If you\u2019re wondering why the media, markets and mandates are making less sense despite a constant flow of hard facts contradicting their message, it\u2019s critical to watch what is\u00a0<em>done<\/em>\u00a0rather than\u00a0<em>said<\/em>\u00a0by the policy makers behind the fear and inflation \u201cnew normal.\u201d<\/p>\n<p><strong>The Latest Fed-Speak Translation: From \u201cTransitory\u201d to \u201cPersistent\u201d Inflation<\/strong><\/p>\n<p>To the extent there\u2019s anything exciting about a\u00a0<a href=\"https:\/\/goldswitzerland.com\/how-the-fed-played-us-and-cornered-themselves-as-recession-signs-mount\/\"><strong>cornered Jerome Powell<\/strong><\/a>, he was at least able to drop some bombshells at his November 30<sup>th<\/sup>\u00a0meeting before Congress, including a truly cutting-edge observation and fear that inflation forces are \u201cmore persistent\u201d and that it\u2019s now time to retire the word \u201ctransitory\u201d regarding the same.<\/p>\n<p>Well, Jerome, we could have\u00a0<a href=\"https:\/\/goldswitzerland.com\/transitory-inflation-sublime-yet-ridiculous\/\"><strong>told you that long, long ago<\/strong><\/a>, but this, of course, is no shocker\u2026<\/p>\n<p><strong>More Taper-Talk (Distraction)<\/strong><\/p>\n<p>Perhaps more \u201cexciting\u201d was his not-so-subtle announcement that the Fed plans to begin a discussion at its next meeting to accelerate the Fed taper by a few months.<\/p>\n<p>Hmmm\u2026<\/p>\n<p>Despite the fact that any Fed Taper will in substance be a \u201cnon-taper\u201d given backdoor liquidity tricks from the Standing Rep Facility and FIMA swap lines, the optics of such continued taper-talk will be negative for almost all assets save for the USD, the VIX trade, so-called \u201csafe-haven\u201d Treasuries and possibly gold.<\/p>\n<p><strong>Bitcoin\u2019s Troubles<\/strong><\/p>\n<p>Needless to say,\u00a0<a href=\"https:\/\/www.coindesk.com\/price\/bitcoin\/\">BTC<\/a>\u00a0didn\u2019t respond too well, dropping by 20% in the wake of Powell\u2019s double-speak; as of this writing, it rose by 9% in less than 24 hours.<\/p>\n<p>Such dramatic price swings, in our opinion, confirm that cryptos (despite \u201cconsolidation\u201d and \u201cadoption\u201d pains) will never be stores of value but rather volatile (and yes, exciting) speculation assets\u2014though we know the crypto circles (who will likely also ignore recent warnings [raised by\u00a0<a href=\"https:\/\/asiatimes.com\/2021\/12\/quantum-hackers-can-bring-down-bitcoin-expert\/\"><strong>Jintao Ding<\/strong><\/a>] of quantum hacker risks) will strongly disagree.<\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Fear and Inflation \u2014 The Timeless Policy Tools of Discredited Systems If you\u2019re wondering why the media, markets and mandates are making less sense despite a constant flow of hard facts contradicting their message, it\u2019s critical to watch what is\u00a0done\u00a0rather than\u00a0said\u00a0by the policy makers behind the fear and inflation \u201cnew normal.\u201d The Latest Fed-Speak Translation: [&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":[15374,302,303,1849,18507,426,31019,13351,3650],"class_list":["post-60911","post","type-post","status-publish","format-standard","hentry","category-economics","tag-consumer-price-inflation","tag-fear","tag-fed","tag-financial-markets","tag-gold-switzerland","tag-inflation","tag-matthew-piepenburg","tag-price-inflation","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60911","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=60911"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60911\/revisions"}],"predecessor-version":[{"id":60912,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/60911\/revisions\/60912"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=60911"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=60911"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=60911"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}