Monetary Policy: An Uncleansed Mass?
More Nattering over at SeekingAlpha regarding Laissez faire? Or Savoir faire?
DDLA: "the entire business cycle is driven by profits and the FRB cannot control profits."
We Natter: False, monetary policy objectives should never be set in terms of a rate (interest) or range of growth of any monetary aggregate, and if you avoid those pitfalls, specious cyclical variations can be controlled quite easily as suggested above.
"When monetary policy is properly formulated in terms of desired rates of change in monetary flows (the lifeblood of the system) relative to rates of change in real GDP (the health of the system), economic and capital growth rates can both be effectively and properly controlled. The math that Salmo refers to is axiomatic because that's how the system works, its inviolate and sacrosanct. Notice the use of the word "properly". What we have, was, is and shall continue be improper until such time that those in power decide otherwise, which may be never. "
The smoothing out of these wild gyrations and outlier events (boom and bust; feast or famine) would be an improvement on the current erratic serial bubble mess we have and are in, which only promotes management by crisis and further value extraction by the 1% at a massive societal cost.
Joe: "Everyone wants control but it is mere illusion."
We Natter, partially false, partially true, everyone wants control, but it, unlike everything else, is not an illusion. Sometimes illusion is necessary to effect control. Fortunately and disgustingly, much like the Wizard of Oz, effectively controlling inflation, employment and the economy isn't the rocket science or illusion "they" want people to believe it is. To wit, and as your cohort Snider puts it, a useless and volumeless lever, such as FFR is strictly in place to "firmly anchor expectations" for the easily manipulated, misguided and brainwashed.
Interest rates as a means of affecting monetary policy is akin to practicing voodoo. Goebbels would be proud in how the Fed and hook in mouth media narrative has the masses believing in the illusion that somehow, the Fed Funds rate, like sticking pins in a doll and chanting incantations, controls employment, inflation and much less the economy, or ever did.
The uncleansed masses clamour and wait for their robed entrance, the high priests whisper incantations, utter gobbledygook cloaked in ivy league phraseology, the ignorant shudder and bow. Utterly ridiculous theatre or pabulum for the masses and idiotic at best. Pay no heed to that man behind the curtain...
Popular belief promulgated by "high priests" in both false doctrine and econometrics has not, can not and will not ever replace the truth which can quite simply be found in the math, which even when manipulated for falsity, does not lie to the uninitiated.
The acceptance of specious concepts which are akin to boogeymen, trotted out to spook and contain the herd, is nothing more than ignorance, apathy and self serving. It is self serving people and institutions that lie; and ignorant, apathetic, lazy people that accept the specious concepts they are taught and told to be truth.
Unfortunately in this sound byte, elevator version world wrought with ADD, perception is reality. And that misperception or illusory reality, is the illusion necessary to effect complete control.
DDLA: "the entire business cycle is driven by profits and the FRB cannot control profits."
We Natter: False, monetary policy objectives should never be set in terms of a rate (interest) or range of growth of any monetary aggregate, and if you avoid those pitfalls, specious cyclical variations can be controlled quite easily as suggested above.
"When monetary policy is properly formulated in terms of desired rates of change in monetary flows (the lifeblood of the system) relative to rates of change in real GDP (the health of the system), economic and capital growth rates can both be effectively and properly controlled. The math that Salmo refers to is axiomatic because that's how the system works, its inviolate and sacrosanct. Notice the use of the word "properly". What we have, was, is and shall continue be improper until such time that those in power decide otherwise, which may be never. "
The smoothing out of these wild gyrations and outlier events (boom and bust; feast or famine) would be an improvement on the current erratic serial bubble mess we have and are in, which only promotes management by crisis and further value extraction by the 1% at a massive societal cost.
Joe: "Everyone wants control but it is mere illusion."
We Natter, partially false, partially true, everyone wants control, but it, unlike everything else, is not an illusion. Sometimes illusion is necessary to effect control. Fortunately and disgustingly, much like the Wizard of Oz, effectively controlling inflation, employment and the economy isn't the rocket science or illusion "they" want people to believe it is. To wit, and as your cohort Snider puts it, a useless and volumeless lever, such as FFR is strictly in place to "firmly anchor expectations" for the easily manipulated, misguided and brainwashed.
Interest rates as a means of affecting monetary policy is akin to practicing voodoo. Goebbels would be proud in how the Fed and hook in mouth media narrative has the masses believing in the illusion that somehow, the Fed Funds rate, like sticking pins in a doll and chanting incantations, controls employment, inflation and much less the economy, or ever did.
The uncleansed masses clamour and wait for their robed entrance, the high priests whisper incantations, utter gobbledygook cloaked in ivy league phraseology, the ignorant shudder and bow. Utterly ridiculous theatre or pabulum for the masses and idiotic at best. Pay no heed to that man behind the curtain...
Popular belief promulgated by "high priests" in both false doctrine and econometrics has not, can not and will not ever replace the truth which can quite simply be found in the math, which even when manipulated for falsity, does not lie to the uninitiated.
The acceptance of specious concepts which are akin to boogeymen, trotted out to spook and contain the herd, is nothing more than ignorance, apathy and self serving. It is self serving people and institutions that lie; and ignorant, apathetic, lazy people that accept the specious concepts they are taught and told to be truth.
Unfortunately in this sound byte, elevator version world wrought with ADD, perception is reality. And that misperception or illusory reality, is the illusion necessary to effect complete control.
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