So, I am watching CMBC this afternoon, the stock market was in a bit of a downturn, when on comes Sen. Bob Corker (R-Tenn.) to tell me that it would be a great idea for the Federal Reserve to cut its duel mandate of keeping inflation low while at the same time keeping unemployment low. Seems Bob finds that the “duel mandate creates a lot of confusion”. Bob called it “bi-polar” more than once.
So which of the dual mandates would Bob like to downsize? Seems Bob would like to decouple the “keeping unemployment low” part from the Federal Reserve’s to do list. That should make life easier for the Federal Reserve.
But is not life… and business, about duel mandates, Grasshopper? Providing the customer with the services and goods they desire at a profit, that is a duel mandate. It is kind of a yin and yang thing. It’s about balance, hummmm (close your eyes and hum with me) hummmm. Seems to me that the “duel mandate” was designed to force the Federal Reserve to strike just this kind of balance in our economy.
One might be tempted to indulge ones paranoia’s and ask: do the moneyed elite wish to free up the Federal Reserve to manage the economy without being dragged down by worries about long-term unemployment?
Let’s connect the dots…….To the blackboard! Who does high inflation hurt? Well, everyone. But inflation puts a real hurt on long-term investment. And who makes the most money on long-term investments? …Investors (big banks). It all makes sense now.
See story at: http://www.cnbc.com/id/40215875