Sunday, December 13, 2020

The Ineffable Silliness of Bloomberg News

You'd be forgiven if you think Bloomberg News' writer is actually AOC.

The ignorance surrounding monetary policy in the financial journalism industry has once again hit all time highs (not unlike the NASDAQ), with Bloomberg penning a recent Businessweek article that has crowned Jerome Powell as the Fed's "most transformational chairman" since Paul Volcker. 

Apparently completely unaware that Volcker's policy prescriptions involved actually needing a backbone to stand up to the public and government discomfort that accompanied undoing an inflationary crisis, Bloomberg has somehow blurred the lines between raising interest rates to 11% and printing trillions of dollars in new money in the course of just months. 

Instead, the piece praises Powell as "quick to recognize the economic devastation the coronavirus pandemic could cause" and for responding early. “We crossed a lot of red lines that had not been crossed before,” the article quotes Powell as saying - as if pushing the economy closer to its eventual breaking point at record speeds is something to celebrate. ...

Gee.  "Inflation"?  Didn't we mention that just yesterday?  Yes, we did.

Yes, Trump can be placed in the corner of the room with a dunce-hat for "stimulus," too.

At some point in time--near-term--this is going to snap back right into your face.  Be prepared.

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