THE MISSION“The FOMC is firmly committed to fulfilling its statutory mandate from the Congress of promoting maximum employment, stable prices, and moderate long-term interest rates. The Committee seeks to explain its monetary policy decisions to the public as clearly as possible.Such clarity facilitates well-informed decision making by households and businesses, reduces economic and financial uncertainty, increases the effectiveness of monetary policy, and enhances transparency and accountability, which are essential in a democratic society."
THE REALITY
I do not think that this blog entry really isn't being a naysayer, just negatively commenting on those facing a difficult task.
Or even really unfair.
After all, the Fed has been blowing up the US economy, and taking the world to the brink of economic and political disaster, about every eight years since 2000. And less regularly going back 1987 at least.
And they have been getting plenty of help from the government and the media.
They all put the banking system and the financial elite first, and the devil take the hindmost.
When the powerful are single-mindedly determined to have their way, even if it is horribly wrong, it is difficult and often dangerous to be right, or to even admit to knowing the difference.
Their policy errors will be a new chapter in the backward predicting textbooks of the dismal science. And I would probably enjoy this if I were reading about it in the more distant future.
What were they thinking?
And they appear to be about right on schedule for their next Doofenshmirtz Moment.
They are not evil. Or even dangerously incompetent and frightened. They are equal measures servile, bureaucratic, arrogant, and banal.
And they and their courtiers are caught in a credibility trap.
The Banks must be restrained, and the financial system reformed, with balance restored to the economy, before there can be any sustainable recovery.
