Pusillanimous Powell’s Gigantic Lie, Part 1

We have never heard more gibberish, double talk and lies from one podium than issued from Chairman Powell at yesterday’s presser.

The man is not only a clueless bag of wind, but is also the poster boy for a camarilla of central bankers who have spent years wantonly violating every canon of sound money and economic rationality known to mankind, and are now so cocooned in a groupthink catechism as to be utterly delusional about the impact of their own policy actions.

There is no other way to say it: The Fed has become a dangerous rogue institution which has usurped plenary power over the financial system based on implicit theories that will eventually and inexorably lead to a massive speculative blow-off, even as it sucks the vitality out of the main street economy in the interim.

The implicit theory is brazenly simplistic: The Fed believes relentless credit expansion fosters higher economic growth and full employment; and that there is no practical limit as to how much debt the household, business and government sectors of the economy can tolerate or any notable adverse trade-offs which come from ever higher leverage ratios.



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