EDITOR NOTE: It’s been said that the person who wins a debate among a crowd is the person whose intellectual capacity best matches that crowd. So, when it comes to mainstream economists versus those who are more critical and possibly even sharper, the mainstream economist always wins, because most people can’t think beyond what they’re “supposed” to think according to popular opinion (and mainstream education). Hence, the Fed’s Neel Kashkari’s mocking dismissal of his critics and "QE conspiracists". Dismissal allows him to avoid debate and accountability, for if he debated his critics, not only would this send a message that they’re to be taken seriously, he’d also have to risk being exposed as an economist who can’t think beyond a particular economic approach, even if that approach caused harm to the very citizens the Fed’s monetary policy aims to serve. The Fed can pretty much say what it wants. The truth is that each member of the Fed isn’t exposed to the risk of its own doing--the average American will end up paying for its errors, misguided assumptions, or miscalculations. In short, the Fed doesn’t have any real skin in the game. It has nothing to gain by debating its critics. It has everything to gain by shielding itself from critics who might prove in a public forum that the majority of the Fed’s members are economic charlatans.
The secret is out. It can no longer be denied and it’s up to each and everyone of us to help bring the secret to the forefront of public awareness.
For the mainstream financial media won’t do it, indeed they allow the guardians of the secret to continue to deny its existence.
For years those of us who have been critical as to the negative consequences of easy money policies, QE in particular, were dismissed and mocked as “QE conspiracists” and even as “swashbuckling pirates of free market capitalism” by central bankers directly including yours truly:
1 thing I've learned abt twitter is the louder the critic, generally the thinner the skin. I confess finding amusement in needling critics calling them conspiracists or goldbugs. Its fun to watch swashbuckling pirates of free market capitalism get easily upset. I mean no offense. https://t.co/dMgSsk2pBR
— Neel Kashkari (@neelkashkari) January 17, 2020
It’s easier to mock and ignore with a Tweet and then go into hiding versus engaging in substantive debate.
But the lid just got blown off the false narratives that have been propagated by central bankers from Powell on down with his now infamous claim that “Fed policies absolutely don’t add to inequality“.
Of course QE adds to inequality. Even the Bank of Canada just sheepishly admitted it:
WHAT HAVE I BEEN SAYING?
"Bank of Canada says QE can (edit: does) widen wealth inequality"
Seriously, when is the Fed held to account for the consequences of their policies instead of getting away with lying to the public year after year?https://t.co/TzdP3AM593
— Sven Henrich (@NorthmanTrader) May 14, 2021
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