No Doubt, There Really Will Be Two “L’s” In Payrolls

Bad news is good news? The payroll report for November 2020, like those of the previous four months, have only further corroborated and confirmed the untimely death of the recovery. Since actual recovery can take only a “V” shape, then the end of the “V” necessarily means the end of recovery.

In the twisted world of mainstream assumptions, however, fret none. The worse it gets, the more the government will do…to accomplish what, though? Don’t ask, just believe. Richard Clarida, one of the increased number (the only inflation in town; growing ranks of bureaucrats) of Federal Reserve Vice Chairman, is already on the case (thanks to M. Simmons).

I will place a high priority on advocating policies that will be directed at achieving not only maximum employment, but also well-anchored inflation expectations consistent with our 2 percent objective. Depending on the course of the virus and the course of the economy, more support from both fiscal and monetary policy may be called for.

The more awake among you have already noticed what the man really says here: the public is catching on how our inflationary tactics won’t lead to any real inflation, because the “stimulus” we’ve already done to this point, despite declaring it massively flood-like, hasn’t stimulated the economy or anything else other than the torrent of incredibly gullible financial media stories.

Clarida’s statement is a confession, not that you would otherwise know it.

More QE and now the outlines of an agreement for more government subsidizing will save an economy perched precariously at a dangerous crossroads after having been left here by the ineffectiveness of QE and tons of government subsidizing. There is madness to this method.

Equity “investors” may be thrilled, but common sense dictates exactly why employers have not been. While monetary policy calls for, and is in part specifically designed to accomplish, share prices driven by the former to influence the economic behavior of the latter, another looming letter “L” yet again disproves the perverse theory.

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Disclosure: This material has been distributed for informational purposes only. It is the opinion of the author and should not be considered as investment advice or a recommendation of any ...

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