Jerome Powell:
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Discussion
We're just manifesting more expensive groceries bro, inflation isn't real.
Their view is that since everyone believes there is inflation prices go up. It has nothing to do with money supply because in the textbook world there is no alternative money. Amazing we have got this far really.
I just think they think we're retarded, honestly
And I mean they're not wrong.
I am, I'm just not THAT retarded.
That's the actual textbook MMT view. "Prices go up because people think prices are going up" - they think it's all psychological. That's actually what their books say.
Posting fake inflation numbers and propaganda reiterating that inflation is low is all part of constructing that reality. It's like Santa Claus at Christmas; all the adults play along and the kids believe the magic. Santa is at the mall and the propaganda is everywhere so all the kids believe.
Are you saying that Jerome Powell is ACTUALLY Santa Claus?!?! Holy shit.
For the longest time people in Tradfi treated the Fed as such. Fed days were almost like a holiday.
Powell did actually say that "modern theories" tell us about inflation. He literally referenced MMT in the presser knowing that most people would have a clue about what he meant.
He is going to die on the hill that he can control the money supply.
I don't think he actually believes that, he's not an academic he's a private equity guy. Probably a bitcoiner. He has to play the part and he's not that smart. Just an actor.