Update: We have published Markets on Steroids - February 2020!
Markets on Steroids
Economics is not a science and most mainstream economists misapprehend how the economy and markets operate in the real world. The Federal Reserve, which is peopled with academics, mismanages the economy based on misunderstanding basic economic concepts such as inflation. The economics profession lost the narrative as the global economy grew interconnected into a complex system requiring an entirely new set of intellectual and policy tools. The Federal Reserve’s twin statutory mandates of guarding low inflation and maximum employment are antiquated in today’s world and grew beside the point as the gnomes in the Eccles Building decided to focus on propping up equity prices. They did so in the mistaken belief that higher stock prices will absolve the economy of its sins. While some believe they succeeded, those who value trifles such as facts and evidence and retain a modicum of patience understand that they merely created a Potemkin economy built on a foundation of debt. For those paying attention, the unsustainability of this regime grows clearer with every passing day.