by Karl Denninger
Market-Ticker.org
One thing you can be basically-certain of: When the government tells you somethin they’re probably lying.
After all there’s no penalty for it. And there’s no penalty when a government agency breaks the law either. One of my prime examples of this is The Federal Reserve, which is forbidden to buy or transact in anything other than federal government-guaranteed debt with very, very limited and enumerated exceptions.
The Fed deliberately violated that law when it started buying Fannie and Freddie paper.
Problem: There is no “or else” clause.
Ditto on inflation, of course. The Federal Reserve Act forbids The Fed to “target 2% inflation”; indeed, it forbids them to target anything other than zero as it clearly states: Stable prices. While errors may not be chargeable against them intentional actions certainly are.
But again: There is no “or else.”