Fed Launches ‘Rate Peg Instead of QE’ Trial Balloon for Next Crisis

[Banjo]

https://wolfstreet.com/2019/05/08/f...-instead-of-qe-trial-balloon-for-next-crisis/

 

[zdreg]

+1
bookmark that site.

 

[nooby_mcnoob]

Ray Dalio does not approve of this message.

 

[piezoe]

https://wolfstreet.com/2019/05/08/f...-instead-of-qe-trial-balloon-for-next-crisis/

This article is recommended reading for anyone foolish enough to think the Fed has no more arrows in its quiver to handle recessions as long as interest rates remain exceptionally low.

 

[nooby_mcnoob]

Ray Dalio says the Fed has no more arrows in its quiver.

 

[Banjo]

Ray isn't on the Fed board of govs. When did he get a look at the playbook?
I'd like a copy.

 

[nooby_mcnoob]

Ray isn't on the Fed board of govs. When did he get a look at the playbook?
I'd like a copy.

I mean he said it, so... I don't know. His theory is that history repeats itself and that there has been no government that has been able to avoid deflation and hyperinflation in the situation we are in right now. Something like that anyway. I think he's pushing for MMT-style because the hyperinflation can be controlled if it is directly put to use in infrastructure as opposed to asset inflation.

In the end, the government cronies will get the contracts and things will continue as they have.

 

[zdreg]

Before the rise of Hitler, the hyperinflation which destroyed the middle class in Germany was preceded by deflation.
History doesn't repeat itself but it sure does rhyme.

 

[nooby_mcnoob]

Godwinned (I know, it's the most analogous example)