Fed Policy Makers Differ Over Policy as Inflation Accelerates
First of all, inflation is not accelerating. It was put into over drive years ago by policy makers. So can we get this MSM fueled stupidity straight before proceeding? Right now, these dunderheads are pretending that the effects of the inflation are not so bad. Wonderland is what this is.
Fed Governor Elizabeth Duke said in Washington yesterday that rising commodity costs aren’t resulting from U.S. monetary policy and don’t warrant higher interest rates, while Fed Governor Daniel Tarullo said he sees no sign of inflation spreading more broadly.
Good cops.
Richmond Fed President Jeffrey Lacker and Philadelphia’s Charles Plosser indicated they’re more concerned about prices, with Lacker saying the central bank must tighten credit before inflation gains speed.
Bad cops.
The comments highlight an emerging debate among Fed officials over what steps to take after completing $600 billion of Treasury purchases through June. Policy makers were divided at their last meeting on March 15, with a “few” officials saying tighter credit may be warranted this year, while a “few others noted that exceptional policy accommodation could be appropriate beyond 2011.”
I hate that these people pretend to have a decision to make. It's as simple as this; you created the inflationary recovery and it is going to implode under unpayable debt and immense leverage if you do not continue the Kabuki dance. The Fed is pretending to debate amongst itself when really we are facing one of two things; 1) a breakout into intense inflationary expectations leading to hyperinflation or an unwinding of the leveraged, non-self sustaining construct.
Central bankers must validate expectations of businesses that inflation will remain low “by conducting monetary policy in such a way that inflation does not accelerate,” Lacker said yesterday at the University of Baltimore. “I believe we need to heed the lesson of the last recovery that inflation is capable of rising even if the level of economic activity has not returned to its pre-recession trend.”
Too late Jeff. It accelerated already. Now what comes next, meltdown or more acceleration still?
Another official, Narayana Kocherlakota, president of the Federal Reserve Bank of Minneapolis, said yesterday in Helena, Montana, that core inflation “is very low right now” and he doesn’t see many signs of price pressures.
Who do you think you are talking to, a bunch of dunderheads? Oh, wait... Okay, I am out of time and have lost patience with the rest of the article. See you at CoT posting time. Just think of our policy leaders as silly little clerks with immense power, taking turns putting out the jawbone materials. Tune them out and stick with honesty. It'll work out relatively well in the end; whichever way things go.
http://www.biiwii.blogspot.com
http://www.biiwii.com
