We are living in the “Post-Stupid Age,” feeling the effects of the stupidest public policy the United States and the world has ever seen; shutting down the world economy without comprehending the long lasting effects of such idiocy. (Dear future historians, I want credit for coining the term “Post Stupid”). In recent articles, I have described how associations of experts are inherently wrong about most everything and pointed the finger at the Federal Reserve. I’ve stated that the Federal Reserve puts too much emphasis on government compiled statistics and formulas, and using these data points gives it an unrealistic impression of our economic vitality. On April 21, Fed Chairman Powell blathered about the need to raise Fed Fund rates at a more accelerated pace due to our “over-heated” economy. Since these remarks, the S&P has dropped 7 %. Now it turns out that government produced statistics state the economy is not growing at all; it is contracting! SEE GDP CONTRACTS 1.4%. GDP reports consist of government compiled formulas, their only meaningful function is to illustrate how conceited and hopelessly inept the economics profession is. Nevertheless, the Fed relies on “GDP” and uses it as a measurement for what actions it needs to take to manage the economy for all us plebes who lack their wisdom. So what does this tell you? One week the Fed says the economy is over-heating, the next week it is twisted in knots as the numbers it relies on state the economy is contracting. Mmmm. Perplexing. Qui est veritas? No problem can ever be solved without acknowledging “truth.” So let’s acknowledge it. The truth is the Fed doesn’t have a clue, and it is a complete joke to think 7 members of the Fed Open Market Committee can magically orchestrate the entire American economy.
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