Disingenuous Mea Culpa - Then and Now

 

“No one could have seen this coming”.  I heard that phrase a lot after 2008.  That is total bullshit and these swindlers know it.  It was bullshit then and it is bullshit now.

From Fox News:  The New York Times opinion columnist Paul Krugman published a mea culpa in column form on Thursday, flat out admitting he was wrong for thinking inflation wouldn’t be that bad.

In his piece, titled, "I Was Wrong About Inflation," the economics professor noted that he was on "Team Relaxed" when it came to fears of inflation and acknowledged that was a "very bad call."

After Mao took power in China, there was a backlash and purge of those viewed as “intellectuals”.  Students literally beat their teachers and professors to death.  While I do not necessarily agree with murder, I do understand how it comes to pass that one human being who feels cheated kills another human being that they feel is a high functioning swindler.

There were plenty of people, including myself, that saw 2008’s self created drama and how it was going to unfold.  Making too much credit available at prices that were far too low and then extending that credit to far too many “Great Americans” was going to be a shit show.  Hoening tried warning his fellow Fed Heads and no one would listen.

Today’s bullshit was entirely predictable and there were those like Summers who were warning against what Congress, the Treasury and the Fed were proposing.  Again, no one listened.  Instead, they chose to listen to the happy talk coming from people like Bernanke, Krugman, Yellen, etc.  These are “intellectuals” who would try to debate the fact that water is wet if you let them.

I will guarantee you this – if one of these “intellectuals” were drug out of their office at the White Ivory Tower, strung up from a lamppost by their testicles and then publicly beaten like a piñata at high noon, the other “intellectuals” who run in their social circles would take note and stop floating all of these asinine ideas about Keynesian economics.

A long time ago, Bill Bonner wrote that the Federal Reserve can control the quality of the currency and the quantity of the currency but not both at the same time.  That remains true and both Bernanke and Krugman know it.