The Dark Side of Yield Curve Control

Posted by Matthew Piepenburg

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Looking Behind the Labels

Regardless of one’s politics, most would agree that extremely complex issues are typically given extremely misleading titles.

Not all those of the extreme left, for example, are all that “woke” and not everyone on the far right, to be fair, is a “domestic terrorist.”

Nevertheless, words are often misused and abused to place, as well as burry, otherwise nuanced realities behind simple phrases, as we’ve seen in everything from the “Patriot Act” to “Monetary Stimulus.”

Financial Fiction Writers

So many of the fancy words and phrases tossed about by our financial elites come in such deliberate yet pear-shaped tones of calm, authority and wisdom.

Even the title, “Federal Reserve,” is one loaded with irony for what is otherwise a private bank…

Many of the economic labels and euphemisms disguised as sound policy are now part of a global vernacular, from “quantitative easing” and “Fed accommodation” to “Modern Monetary Theory.”

These are carefully chosen labels. So confident, so academically comforting…

But for those familiar with basic math, economic history or the modern wave of policy hypocrisy masquerading as “forward guidance,” such terms, as well as the deeper truths behind them, have all the tragic irony of an Orwellian dystopia.

In short, they can be used to simplify, and thereby control, an inaccurate public perception.  Read More