Central Banker’s Brain Freeze

Serving Jerome Powell and His Friends Cold Treats and Colder Realities.

Imagine you find yourself sitting beside Jerome Powell in a café as he gleefully indulges in a decadent ice cream sundae. Engaging in casual conversation about trivial matters like weather and ducks, you might be tempted to think he's just a normal guy; amiable even. But don't be fooled. Beneath that benign exterior lies a man who epitomizes the insanity of those who fervently believe in collectivist systems and top-down economic control.

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Powell and his ilk cling to the misguided notion that they possess the wisdom to micromanage the economy, as if it were a mere plaything to be manipulated at their whim. Their overconfidence is staggering, and the consequences of their actions are far-reaching and devastating.

This Soviet Union-style approach to economic governance is the true embodiment of the tragedy of the commons, where the hubris of a few leads to the suffering of many.

The irony is that those who champion these oppressive systems are often far from the best and brightest our society has to offer. They are the product of an elitist education system that perpetuates the cycle of collectivist indoctrination.

For decades, these so-called “top” colleges and universities have served as echo chambers, where aspiring central planners are taught by their ideological predecessors and misguided intellectual idiots like Robert Reich who believe they champion the common good, all while reinforcing a worldview that is fundamentally divorced from reality.

The result is a class of intellectually inbred individuals who believe they possess the wisdom and authority to control the economic destinies of nations, when in truth, their theories are nothing more than the ravings of the insane.

The devotees of the cult of Gross Domestic Product (GDP) cling to the absurd notion that the more a group of people in a geographic region spend, the better off everyone will be. This belief, which flies in the face of individual economic reality, is a testament to the depths of their delusion.

On a personal and theoretical level, it is abundantly clear that the more one produces and saves, the more prosperous one becomes. Yet, these GDP zealots insist on peddling the nonsensical “paradox of thrift,” asserting that the very habits of savings that benefit the individual somehow become detrimental to the economy when practiced by the masses.

The fallacy of GDP has been thoroughly and irrefutably debunked by the luminaries of the Austrian school of economics, a school that I simply refer to as “real economics.” As Frank Shostack eloquently stated, “The GDP framework is an empty abstraction devoid of any link to the real world.”

This framework, however, remains in high demand among government officials and central bankers, as it provides a convenient justification for their meddling in the affairs of businesses. It offers an illusory frame of reference by which to judge the performance of those in power, allowing them to maintain their grip on the economic reins.

The likes of Powell and the vast majority of those entangled in the web of financial markets have succumbed to the delusion that an increase in the money supply is the panacea for all economic woes. They advocate for the relentless printing of money, believing that this act of financial alchemy will somehow transform worthless paper into genuine wealth.

In reality, their actions only serve to devalue the currency, eroding the purchasing power of the common man and exacerbating the very economic disparities they claim to address. This belief in the virtues of monetary expansion is akin to a doctor prescribing a steady diet of sugar to a diabetic patient, all the while claiming to have their best interests at heart.

High financiers cling to the misguided belief that the Consumer Price Index (CPI), a flawed government construct, is the ultimate gauge of price increases in an economy.

This notion, however, has been thoroughly debunked for decades by those who dare to question the prevailing economic dogma. The absurdity of attempting to distill the complex web of prices in an economy into a single, all-encompassing number is self-evident to anyone with a modicum of common sense.

Picture, if you will, the Herculean task of adding up the prices of every conceivable good and service in an economy. From the cost of a trendy haircut to the price of a cutting-edge smartphone, the sheer diversity and ever-changing nature of the market renders such an endeavor an exercise in futility.

Even if one were to successfully navigate this labyrinth of prices, the resulting sum would be a meaningless abstraction, devoid of any practical significance. Dividing this arbitrary figure by an equally arbitrary number, as the CPI methodology dictates, only compounds the absurdity.

Yet, the high priests of the Federal Reserve have the audacity to proclaim that there is no “inflation” in the face of overwhelming evidence to the contrary. Tell that to the average American consumer, who has watched helplessly as the price of a gallon of gasoline has tripled in a mere 15 years. This blatant disconnect between the official narrative and the harsh realities faced by everyday citizens is a testament to the willful blindness of those in power.

Former Federal Reserve Chairman Ben Bernanke is apparently not immune to the cognitive dissonance that plagues his ilk. He has openly acknowledged that his own son graduated with a staggering $400,000 in student debt, a figure that would make even the most hardened financial analyst blanche. Meanwhile, college tuition “inflation” has skyrocketed by nearly 500% since 1985, a fact that is conveniently overlooked by the CPI and its proponents. Perhaps, in their twisted worldview, this astronomical increase is simply a reflection of the “dramatically enhanced value” of a college education, rather than a glaring indictment of a broken system.

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In a world where the vast majority of those involved in the financial realm have been indoctrinated by the Keynesian economics-based “education” system, those of us who reject the notion of collectivism and question the supposed benevolence of government and central banks are often branded as lunatics. We are the proverbial “One Flew Over the Cuckoo's Nest,” daring to challenge the prevailing orthodoxy and the herd mentality that permeates the financial landscape.

The irony is palpable. The very institutions that have bestowed upon these so-called experts their fancy diplomas are the same ones that have deeply entrenched them in the flawed ideology of Keynesian economics. These “big players” in today's fascist financial world, along with their sycophantic lemmings on CNBC, smugly dismiss dissenting voices, secure in their belief that their credentials and consensus guarantee their correctness. They fail to recognize that their agreement is nothing more than a shared delusion, a product of their collective indoctrination.

History has shown us time and time again the folly of blindly adhering to the status quo. The Soviet Apparatchick of the 1980s serves as a poignant example. In a society where questioning the prevailing order was met with scorn and derision, even from one's own mother, those who dared to think independently were often ostracized.

But the visionaries who had the foresight to move their assets outside of the Soviet Union and its doomed currency, the Ruble, and even had the courage to physically escape the crumbling regime, were the ones who emerged as true geniuses in the end. Of course, until the inevitable collapse, they were invariably labeled as crazy by the masses.

The parallels to our current financial system are striking. Those who have the audacity to question the wisdom of central bank intervention, the manipulation of interest rates, and the relentless printing of fiat currency are often met with the same dismissive attitude.

The Keynesian acolytes, with their unwavering faith in the power of government to steer the economy, cling to their misguided beliefs with a fervor that borders on religious zealotry. They conveniently ignore the mounting evidence of the failures of their beloved theories, choosing instead to double down on their flawed premises.

However, if our modern financial system based on fiat currency and central bank intervention eventually falters, the supposedly radical skeptics of today may prove to be the real visionaries recognized in hindsight.

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