Update: We have published Welcome to Fantasy Island - July 2019!
Welcome to Fantasy Island
We no longer have real markets. We are living on Fantasy Island with Donald Trump playing Mr. Roarke and Jerome Powell auditioning for the role of Tattoo.
The fact that policymakers are planning to cut interest rates with unemployment, inflation and GDP growth at current levels illustrates the bankruptcy of current economic thought. Instead of learning from the series of disasters that incessant market interventions caused in recent decades, central bankers are following exactly the same path and pushing markets straight toward another crisis. The intellectual poverty that rules today’s Federal Reserve is very disturbing. But even worse is the hubris that leads academics to believe they can micromanage an unspeakably complex $20+ trillion economy.