I know you and I keep having these circular discussions. All I can hope is that I'm not just wasting my time here blowing hot air, and that others are at least becoming aware of the linkages, feedback loops, and vast maladjustments caused by one percent FF in the current environment? And yes, parabolic commodity inflation is part of it, absolutely!
So let's just lay aside what appears to be the principal disagreement between us, "The Fed doesn't care about anything but the jobs report".
I would say, I don't really know the answer to that. The question really gets to the root of are they fools or frauds? They are both in my mind, therefore your theory may be correct. Secondly, I don't even care what the answer is, I don't think it's especially relevant. I'm probably one of the few people on the planet who thinks next week's rain in Cordoba, Argentina and Rio Grande do Sol, Brazil is more important than the Wizards of Oz Ben and Al.
The reason I don't care, is that not even the Fed operates in a vacuum, and the cat's out of the bag. There will be mounting inflationary pressures to take action. There will be bottleneck pressures for them to take action. There will be mounting political and global pressures for them (all CBs) to take action on the USD. And if they don't, things will keep blowing up. Thank goodness they have the "geopolitical wild card" to use as a dog ate the homework excuse, when the shit hits the fan and them. And when those pressures finally take root (way too late), their incompetent, fraudulent, sycophatic natures won't matter one iota. |
