"Here's the deal: Inflation is a direct result of the cheapening of money. Strike that, inflation IS the cheapening of money and central bank policy in conjunction with fractional reserve lending is the cause".
"Central bankers do not talk about such things because they are at the root of the problem.
The solution of course is to not only get rid of the Taylor rule, but to get rid of the Fed, the ECB, and central bankers around the globe".
http://globaleconomicanalysis.blogspot.com/2011/03/goldmans-blood-sucking-leeches-model.html
Dumb things happen (in both directions) when central-planning jackasses view inflation in terms of prices rather than money supply and credit, then take (or fail to take) action because of prices.
For example, Greenspan ignited an enormous housing bubble by failure to consider reckless credit expansion. Instead, Greenspan foolishly focused on the CPI which suggested low inflation.
Such policies have central bankers forever-chasing their tails.
Where Should Rates Be?
Nothing above implies agreement with central bank rates set near zero.
The free market, not a bunch of bureaucrats, should set interest rates. None of the central bankers saw this crisis coming, so how the hell do they think they know what interest rates should be?
I don't know where they should be and they sure don't know either. At least one of us is smart enough to admit it.
http://globaleconomicanalysis.blogspot.com/2011/03/record-gasoline-prices-in-europe-over-8.html
THE REVOLVING DOOR: 22 People Who Went From Wall Street To Washington To Wall Street
Read more: http://www.businessinsider.com/people-who-have-worked-on-wall-street-washington-white-house-2011-3#ixzz1FihCyPK3
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