The randomly selected 2% is the Holy Grail our (clueless) inflation warriors so covet…and slavishly pursue. Belief in this target is now so absolute, no one in the economics profession or financial industry asks the question ‘why do we have this target?’.
Larry Summers, ex US Secretary of the Treasury, went way out on a limb on Wednesday, Fox News was there: ‘Former Treasury Secretary Larry Summers predicts there will “almost certainly” be a “downturn in the economy”’:
If increasing returns compound to a firm capturing the market, that firm and its investors will enjoy great success. But success entails failure for rivals. If the winner takes all, losers take nothing.
Inflation is always and everywhere a political phenomenon. We get inflation when the politicians spend more than they can afford…and then ‘print’ money to fill the gap. It is fundamentally a default to creditors
The fact is there’s a worrying global trend towards centralised power in the world. And they only want more. Big tech owns your data, and they allow governments to snoop on you. Central banks control money and dole it out to their favoured parties.
It’s quite simple, really: when we compare things over time, the comparison ceases to be accurate. That’s because apples become oranges.
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