So Fed Chairman Jerome Powell admits that he doesn’t really understand inflation. Who knew that counterfeiting trillions of dollars might cause price inflation and malinvestment? Who knew?
Having taught university economics for four decades, I was especially amused by this, which reminded me of the little Fed-worshipping game that our monetary central planners play with college students. It’s called “The Fed Challenge.” Every year economics undergraduates compete as team members representing their colleges and universities in a competition run by Fed bureaucrats. The bureaucrats sit before them pretending to be omniscient Soviet-style central planners peppering them with questions about how to become central planners like themselves. The winning teams get nice little trophies and a mention in the school newspaper. The bureaucrats never admit, as Jerome Powell has, that they have no idea what the hell they are doing. It’s all a big farce, in other words.
Some years ago one of my students, a good Ron Paul follower, attempted to organize a counter competition called “The Anti-Fed Challenge.” It was a great idea, but he could not get adequate support. It’s still a good idea and would be fun and educational, unlike the Fed’s phony “Fed Challenge.”
6:43 am on July 2, 2022
