Transitory leads to permanent mistakes

Blain’s Morning Porridge/Bill Blain/10-19-2021

graphic image of a wizard in silouette“Policy mistakes are a massive market risk. Don’t believe Central Banks and Politicians are omnipotent. The issue is defining what would be a policy mistake and what is a POLICY MISTAKE.”

USAGOLD note: Blain believes that central banks have “tripped themselves.” By selling the public on the idea inflation is transitory, they have made it permanent. Perhaps tripping themselves is not the correct description. Better said, they have tricked themselves into believing inflation is transitory, and that, in the end, could undermine the one thing central banks really rely upon to effectively carry out monetary policy – the good faith of the public.

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