Alan Blinder wrote an infuriating op-ed in today's WSJ where he attempts as much as humanly possible to deflect blame from the Fed, while seeming to at least begin to acknowledge some of the massive culpability they had in "acting too late". Government only admits a mistake once denials are too ridiculous to pass the laugh test even in the MSM. Blinder let slip the following doozy ... the Fed only wants to generate disinflation - a reduction in the rate of future increases -- never for prices that have spiked to actually fall:
"Notice the important subtle point here. For food and energy inflation to decline does not require those prices to fall back to earlier levels, only that they stop rising so fast."
Blinder also opines that the Fed has nothing to do with rising food and energy costs. Perhaps not directly. But easy money filters into the economy like water finding its way to the lowest point. Costs have skyrocketed for firms throughout the economy, including the food and packaged goods companies. The Fed cannot end the war in Ukraine or pump more oil, but it is ludicrous to pretend that the conditions created by the Fed did not have a major role in capital allocation that led to distortions economy-wide.
Fantastic as always, Rudy! We'll be posting a link on Twitter toot suite. We dig your long form prose! Thank you for keeping trucking on Reddit too. We're trying to RT some of your FED posts on Twitter with full credit too. We'll keep it up until they reinstate you or we get banned and have to resort to some combo of Substack and other platforms as well ;)
Good economists (i.e. Austrians mostly) provide a foundation, but all this ceteris paribus business limits their value. You can tell most of them have never run a business. It's up to the private sector to apply the theory and navigate the real world.
Two things: First, the Chomsky quote is painfully accurate as evidenced by my circle of current and past friends. I'm the least "educated" among them with only a lowly BA, while they all have MBAs and up. All of them, to a man, have ZERO ability to think outside of whatever the current narrative happens to be.
Second, I'll write it again. You need to monetize your Substack. Even if you only do it for the same reason as Señor Gato: to support Substack for being one of the final free speech platforms. Obviously, you can continue to publish everything as you do now, but ne'er-do-wells like me can feel like we're doing something.
I’m going to have to disagree on the second point. For background I subscribe to paying newsletters and Substacks, so I don’t consider myself a miser and I like to support great content writers. I also very much appreciate the blood, sweat and tears that go into Rudy’s tweets and now Substack, and definitely there is significant value there for readers. So, the reason I disagree is not because I’m a cheap-ass and not because “Rudy” (I will refer to as they/them/their) doesn’t deserve funding or monetary support, but because their work is so fundamentally important to society, that it needs as wide an audience as possible. I believe they’re doing a public service, and monetising it, in my opinion, would be antithetical to the higher mission as to limit the audience base. But I’m just a reader, so what do I know? At the end of the day, if they wanna monetise, I won’t be upset, I just feel it would be a shame because I see this as a public service. I say this with a great amount of respect and admiration.
I hear you. I said a while back on twitter that the sole purpose of my account - other than to amuse me - was as a resource for future historians (and to try to educate the public). I've never asked for money and don't intend to now. My reward is knowing that many more people now understand the scam.
Amen brother! And what a reward it is to help the hardworking American people wake up to the scam. Just imagine what the central banksters would do if nobody had the courage to speak out like you!
Great article. However, I don't fully buy in to the idea that Powell is evil or corrupt or acting out of sinister motives. It may simply be that he's incompetent, doesn't understand the modern financial system (Jeff Snider at Alhambra Investments has pointed this out several times), and yes, influenced by his Fed and Wall Street associations, and his own self interest. He also inherited a mess which he clearly didn't know how to fix. Regardless, his policies are indeed dangerous and are making things worse in a hurry. At this point, I'm not sure there's a way out.
Good ol' Jeff Snider...always loved this particular 2017 quote:
"The Federal Reserve is not a cabal of evil geniuses dedicated to bringing down the global order so as to create a new one with its Wall Street masters in complete control. They are instead a clown-show, a remedial class of halfwits and empty suits opining on topics they would in a just society be banished from entirely."
judging by your last name, you are of my people. i've often said that one day, when they round us back up to trains headed east bound, they will point to how many of our clan have been horsemen of the apocalypse of the rest of society - Greenspan, Bernanke, Yellen, Fink et all. thankfully Jpow isn't Jewish, so if the fit finally hits the shan on his watch, maybe they will spare us the protocols of the elders of wall street angle, but i doubt it. too many of us in the wall street crowds driving the car over the cliff. loved the "patient zero" definition btw. brilliant.
Alan Blinder wrote an infuriating op-ed in today's WSJ where he attempts as much as humanly possible to deflect blame from the Fed, while seeming to at least begin to acknowledge some of the massive culpability they had in "acting too late". Government only admits a mistake once denials are too ridiculous to pass the laugh test even in the MSM. Blinder let slip the following doozy ... the Fed only wants to generate disinflation - a reduction in the rate of future increases -- never for prices that have spiked to actually fall:
"Notice the important subtle point here. For food and energy inflation to decline does not require those prices to fall back to earlier levels, only that they stop rising so fast."
Blinder also opines that the Fed has nothing to do with rising food and energy costs. Perhaps not directly. But easy money filters into the economy like water finding its way to the lowest point. Costs have skyrocketed for firms throughout the economy, including the food and packaged goods companies. The Fed cannot end the war in Ukraine or pump more oil, but it is ludicrous to pretend that the conditions created by the Fed did not have a major role in capital allocation that led to distortions economy-wide.
https://www.wsj.com/articles/inflation-isnt-transitory-but-it-isnt-permanent-either-federal-reserve-interest-rates-oil-energy-costs-prices-11654113873?mod=opinion_lead_pos8
Can I share this and mention your substack?
Sure, of course.
Fantastic as always, Rudy! We'll be posting a link on Twitter toot suite. We dig your long form prose! Thank you for keeping trucking on Reddit too. We're trying to RT some of your FED posts on Twitter with full credit too. We'll keep it up until they reinstate you or we get banned and have to resort to some combo of Substack and other platforms as well ;)
Don't forget the Stalwart as one of the MSM's great Fed apologists.
Typical Quisling.
I gotta say - I like these longer posts even better than the short bird app feeds!
Powell is the first non-economist to hold the chair since Volcker or Miller depending on how nit-picky you want to be. https://mises.org/library/who-central-bankers-really-are
I believe Volcker was the last actual banker to be Fed chair. The fact that Powell isn't an econ major to me is the best thing about him.
Good economists (i.e. Austrians mostly) provide a foundation, but all this ceteris paribus business limits their value. You can tell most of them have never run a business. It's up to the private sector to apply the theory and navigate the real world.
Spot on!
A great read!
Thanks Rudy
Two things: First, the Chomsky quote is painfully accurate as evidenced by my circle of current and past friends. I'm the least "educated" among them with only a lowly BA, while they all have MBAs and up. All of them, to a man, have ZERO ability to think outside of whatever the current narrative happens to be.
Second, I'll write it again. You need to monetize your Substack. Even if you only do it for the same reason as Señor Gato: to support Substack for being one of the final free speech platforms. Obviously, you can continue to publish everything as you do now, but ne'er-do-wells like me can feel like we're doing something.
I’m going to have to disagree on the second point. For background I subscribe to paying newsletters and Substacks, so I don’t consider myself a miser and I like to support great content writers. I also very much appreciate the blood, sweat and tears that go into Rudy’s tweets and now Substack, and definitely there is significant value there for readers. So, the reason I disagree is not because I’m a cheap-ass and not because “Rudy” (I will refer to as they/them/their) doesn’t deserve funding or monetary support, but because their work is so fundamentally important to society, that it needs as wide an audience as possible. I believe they’re doing a public service, and monetising it, in my opinion, would be antithetical to the higher mission as to limit the audience base. But I’m just a reader, so what do I know? At the end of the day, if they wanna monetise, I won’t be upset, I just feel it would be a shame because I see this as a public service. I say this with a great amount of respect and admiration.
I hear you. I said a while back on twitter that the sole purpose of my account - other than to amuse me - was as a resource for future historians (and to try to educate the public). I've never asked for money and don't intend to now. My reward is knowing that many more people now understand the scam.
Amen brother! And what a reward it is to help the hardworking American people wake up to the scam. Just imagine what the central banksters would do if nobody had the courage to speak out like you!
I will consider it. Thanks.
I'm as cheap as they come and I would pay.
the "educated" are programmed to react in a politically correct way to the signals they are sent by those in power
Great article. However, I don't fully buy in to the idea that Powell is evil or corrupt or acting out of sinister motives. It may simply be that he's incompetent, doesn't understand the modern financial system (Jeff Snider at Alhambra Investments has pointed this out several times), and yes, influenced by his Fed and Wall Street associations, and his own self interest. He also inherited a mess which he clearly didn't know how to fix. Regardless, his policies are indeed dangerous and are making things worse in a hurry. At this point, I'm not sure there's a way out.
I hear ya.
Good ol' Jeff Snider...always loved this particular 2017 quote:
"The Federal Reserve is not a cabal of evil geniuses dedicated to bringing down the global order so as to create a new one with its Wall Street masters in complete control. They are instead a clown-show, a remedial class of halfwits and empty suits opining on topics they would in a just society be banished from entirely."
https://alhambrapartners.com/2017/08/08/file-it-under-you-cant-make-this-up/
judging by your last name, you are of my people. i've often said that one day, when they round us back up to trains headed east bound, they will point to how many of our clan have been horsemen of the apocalypse of the rest of society - Greenspan, Bernanke, Yellen, Fink et all. thankfully Jpow isn't Jewish, so if the fit finally hits the shan on his watch, maybe they will spare us the protocols of the elders of wall street angle, but i doubt it. too many of us in the wall street crowds driving the car over the cliff. loved the "patient zero" definition btw. brilliant.