Uh Huh…. (Inflation)

by Karl Denninger

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.”

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