Dirty Fed Operative Reveals Inflation Is Part of the Scheme
I mean we knew as much but it's always shocking when they actually admit this stuff out loud. Check out Boston Fed President Eric Rosengren:
"While the economy is growing, it is currently growing too slowly to significantly reduce the unemployment rate or stem disinflationary pressures created by the high degree of slack in the economy," Federal Reserve Bank of Boston President Eric Rosengren said.
"My firm view is that it is important that policymakers be open to implementing policies consistent with achieving full employment, and an appropriate level of inflation, within a reasonable time frame," he said. "We are missing on both elements on both of our targets," the official said. Given that, "there may be an opportunity to do more," although "our actions should be tied to the situation," the official said.
Rosengren was speaking to The Forecasters Club of New York about all sorts of exciting things like how doomed we are and how his Fed is going to get us out of this mess. Manipulation is always a good shot, especially since that has worked out so well for them lately.
"Views on securities purchases differ within the ranks of policymakers and all manner of observers," Rosengren said. "It is important to keep firmly in mind the goal of such purchases: to stimulate the economy by reducing long-term interest rates to a level that is more consistent with where they would be, were we able to further reduce the federal funds rate."
Rosengren said he was confident the Fed could be effective with asset-buying should it choose to act. "If we are willing to expand our balance sheet, I have no doubt we can influence interest rates," the official said, although he added the troubles suffered by the economy aren't something Fed policy can remedy by itself.
Hahahahahahahaha really? The only influence they've had so far is pushing mortgage rates down to 4% (and, uh, that still isn't fixing the inventory clog because obviously interest rates are NOT the problem - unless you're a saver living off of your savings, in which case you have been sufficiently screwed by these idiot attempts to "fix" the economy) and keeping the US Treasury supplied with fresh cash.
Fed policy can't do shit and they look stupid trying at this point. Why not back away from the securitization slowly and leave the Fed balance sheet as is? See how that works out.
Deflation isn't the end of the world, no use trying to combat it now seeing as how we do not have a solid plan in place to cut off rampant inflation once it starts brewing. But judging by Rosengren's comments they aren't at all concerned with cutting it off. Why would they be? Terminal deflation means an end to the perpetual debt machine that IS the Fed's life blood, why do you think they are fighting so hard to keep that scenario from playing out? Meanwhile the worst case scenario on the opposite side would be rampant inflation which would probably be perceived as beneficial to the idiot unwashed masses. They would appreciate a 20% pay raise without realizing it's the same amount of money as before because goods and services have increased at the same rate. Morons.