The Federal Reserve, Schumpeter and ‘Shh!’

Rabo Bank/Michael Every/11-3-2021

“The irony is that being a dowk, and saying tapering is about ‘risk management’ rather than taking away the punch bowl from an aggressive drunk, means the Fed produced its best possible outcome – drunker markets – and yet its worst possible outcome – drunker markets. Indeed, traders continue to act as if we are in the ‘new normal’, where the financial economy does not work, and not the ‘new, new normal’, where the physical economy doesn’t either.”

USAGOLD note: A dowk, we are guessing, is a hybridized species combining dove and hawk. Michael Every offers his view of Fed policy moves on Wednesday at the link. It can also be read in full at the ZeroHedge website. He starts with the Fed and ends with some observations on the geopolitical scene not many are thinking about.