The Fed’s Monetary “Animal House”

Posted by Michael Lebowitz and Jack Scott

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“…seven years of college down the drain.” – John “Bluto” Blutarsky, Animal House

The inspiration and credit for this article belongs to Emil Kalinowski and his recent publication The Silent Depression: Trundling Is the New Booming.

Most profound about Kalinowski’s piece is that it was published just eight days prior to the February 19 S&P 500 market peak. Mr. Kalinowski’s article highlights the same problem that we have been discussing for many months now. That issue is how the media, Wall Street’s “finest,” and Ph.D. economists misrepresent economic conditions.

Their economic euphemisms and overly optimistic expectations remind us of a Dylan Grice quote “Linguistic precision yields cognitive precision.” Or, put a little differently, linguistic imprecision yields stupidity.

In this piece we explore monetary policy and the role it plays in economic growth. Read More