I just read the USA today piece “Janet Yellen right for rocky times”. Convinced it is important to look at more than one perspective I followed by reading the counterpoint. Sometimes we need that before making decisions, me included. But you really, really have to read this counterpoint to believe…or specifically to disbelieve.
The counterpoint author, Sean Fieler, takes an interesting position. er positions. He begins by stating Yellen will pretty much stay the current course, then moves on to critiquing current Fed policy, specifically Quantitative Easing (QE).
“While the Fed’s easy-money policies have not produced many jobs, they have produced a persistent, low rate of inflation that is choking the American middle class.”
Got that everybody? He says QE has caused a low rate of inflation. But then goes on to tell us readers:
Yellen’s extremism offers the Republicans the perfect opportunity to embrace sound money and send a clear signal to voters that they are listening to their concerns about rising prices and falling living standards.
If easy money delivers what it always has throughout history — growing inflation, growing inequality and growing government — a Republican embrace of sound money will offer America a way back to prosperity and the GOP a way back to a governing majority.
Yes you are reading it right “rising prices“…“easy money“… “delivers growing inflation”. OK Mr. Fieler, which one is it? does QE cause low inflation or high inflation?
A look back here tells us there hasn’t been inflation since QE began. Not five years ago, not three, and not today. With congress failing to stimulate the economy the Fed has done what it can to get dollars into circulation. Meanwhile the pundits continue to howl about inflation. But this…this claims to see both…while pointing to bad of both.
The real Mr. Fieler, as the old TV show goes, works for the American Principles Project another of those radical religious right wing think tanks that will oppose anything not their (or their “god’s”) idea. That clearly explains how both low inflation, and high inflation are caused by the same policy. And no matter which one occurs really…it has to be wrong since a “liberal” is at the helm. Quite nice of him to discredit himself in just a few paragraphs of the same article though.