Saturday, May 25, 2013

Monetary Maestros Manipulating My Money

By, Chris Rossini

While you're hard at work each day, Monetary Maestros are perched in their state-supported nests thinking up scenarios of how much of our purchasing power to take via monetary inflation.

They conjure up formulas and models, plug in the data points, and then debate with one another the outcomes to their experiments.

Our job is to keep going to work, watch a little TV, and go to bed. Don't worry about where we fit into the equations. And no matter how high prices go, and how worthless our earnings become, we are trained to listen to the overlords and repeat the mantra: "Prices are only rising 2%".

After the mantra, we're next supposed to blame the businessman. If prices are going up than surely he is ripping us off....the greedy SOB!

We get so angry that we're tempted to call the Department of Fair Prices so that they could go in and crack some heads.

And around-and-around we go.

Meanwhile, the 2% is no longer working for the Monetary Maestros. They want 100% more!

Paul Krugman writes:
Larry Ball makes the case that we would be a lot better off with a 4 percent inflation target rather than the 2 percent that is now central bank orthodoxy.


The point is that the conventional 2 percent target is a prejudice, nothing more; it once rested to some extent on studies suggesting that 2 percent was enough to make the zero lower bound a non-problem, but we now know how utterly wrong that view was; so we’re left with a target that’s considered respectable because it’s what all the respectable people say, and is what all the respectable people say because it’s considered respectable.

What do we want? Four percent! When do we want it? Now! (my emphasis)
Isn't that something....they want 4%!

2% no longer makes their formulas work. The previous pickpocketing of our purchasing power doesn't cut the mustard. That can only mean one thing...up the amount!

Matt Yglesias wants a "QE for the People"!
My dream scenario continues to be QE for the People, in which the Fed simply gives people money, but if that can't be legally or logistically arranged there's plenty more that can be done.
How fortunate we are to go to work to deal with bosses, customers, products, and co-workers; then come home, open the mailbox to see that our bills have gone up again!

Meanwhile, some guy is coming up with a "dream scenario" to rip our eye-teeth out!

It would be one thing if these people were living in obscurity and trading these crazy ideas without harming anyone.

But such is not the case.

These Maestros have the ability to act on it...and they're robbing us blind!

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