‘The world doesn’t work like that’
Seeking Alpha/The Heisenberg/9-19-2022
Cartoon courtesy of MichaelPRamirez.com
“[Bloomberg’s Vincent] Cignarella put the blame for inflation on fiscal policy, whereas I’m more inclined to cite what, try as I might, I can’t avoid describing as the self-evident notion that when, as Pozsar put it, “the price of everything is thrown around randomly,” inflation is just a kite without a string — condemned to whipping around wildly, and notwithstanding episodic downward spirals, always at risk of being carried away into the wild blue yonder.”
USAGOLD note: A detailed refutation of the notion that inflation can be readily controlled with rate policy, and rate policy alone. In short, The Heisenberg, like Zoltan Pozsar, believes the world doesn’t work like that.
