Federal Reserve Chair Jerome Powell was in the news this week. “There is nothing about this economy,” he insisted, testifying before a congressional committee, “that is out of kilter or imbalanced.”

I do not believe this.

I readily admit, I did not glean my opinion from a deep study of current trends. It became obvious to me as the egregious Stephen Moore listed what he believes is so great with “the Trump economy” a month or so back. That statement, which I cited on my Facebook* page, lays out the basic features of a malinvestment bubble. It is elementary. Not all that obscure.

I assume that if the Democrats choose Bernie Sanders to do battle against Trump, the Federal Reserve will work mightily to postpone the bust — an explicit socialist is just going ‘too far.’

But if Democrats choose one of their billionaires or Buttigieg, I suspect the Fed wizards will ease up on all their easing, so to speak, and let the bust come before November. Buttigieg, especially, is the kind of person that insiders want: CIA-nurtured, Deep State-approved, and sporting a commie father (for that frisson of unhinged radicalism and necessary roughness, and as a sign of a willingness to betray the last shred of the Constitution) — quite controllable!

So, if you want to postpone the bust that is just waiting** to happen, push Bernie. If you are ready for the Big One*** — the shock to the system that will make 2008 seem like a mouse’s squeak — then urge the Democrats not to go too far off reservation.

twv

* On Facebook, December 8, I wrote the following:

On the Rubin Report, Stephen Moore enthused about the current economy. And it really is a boom time. But I was amused by (and stopped listening after) Moore’s summary: record low unemployment, with millions of job position unfilled; record low interest rates; low inflation rates, by which he meant a fairly level CPI (consumer prices being the braindead definition of inflation).
He seemed oddly ebullient. He seemed unaware that according to ABCT the situation is a bubble filled to near-popping point.
It is gonna be a doozy!
How could it not?

** Tom Ozimek, writing for The Epoch Times on the 11th, reported on Fed Chair Powell’s inflation-targeting problems:

*** My general view appears to be not too far off Peter Schiff’s.