davidstockmanscontracorner.com / by Mark St. Cyr •
For those who might not get the intended pun in the above title, it’s a play on words Ricky Ricardo (Desi Arnaz) would use when demanding his wife Lucy (Lucille Ball) as to explain whatever mischief or crisis she suddenly found herself in on the “I Love Lucy” show. I think it fits the bill today as to describe just what type of “mischief” or “crisis” the now Chair of the Fed., Janet Yellen may now find herself painted into. The only issue that’s not laughable for the comparison is the fact that Lucy’s escapades were fictional. Ms. Yellen’s are going to be on public display in an all too real reality – although it might be quite the spectacle rivaling anything on current reality television.
As I’m typing this it has been less than 48 hours since presidential candidate Donald Trump gave a speech in Philadelphia calling for a vast expansion of the military. Already there are arguments across the media about “how to pay” for such an expansion. As usual the main stream outlets are throwing “cold water” all over such an idea. After all, it’s easy to say “We can’t afford it!” Easy to say yes, but the problem is – the same outlets have praised how easily we could afford, and “can do more!” to cure the ills of this current economic malaise via The Federal Reserve and its toolbox of monetary magic.
Now let me say this directly, and as forcefully as I can so that there is no misinterpretation of what I’m stating here: I am not endorsing one candidate or another. I’m not saying I agree or disagree with either’s positions or proposals. That is for you to decide. What I am stating is a factual based retort that has ramifications for all of us because regardless of who wins, the facts are the facts, and it will be from the next victor of the “bully pulpit” that the current Fed. Chair will need to explain why she can – or – why she can’t do “X” when it was they themselves who are the ones that showed the world how money ex nihlo truly works.