The whole curfuffle over FED funds rate changes is just Ptolemaic cosmologists insisting that epicycles are the way to explain the anomalies of planetary movements in a paradigm of geo-centrism. Correctly change the paradigm and the anomalies resolve and the new paradigm makes things work as they should without all of the pain the current paradigm creates and enforces…and all of the incredible twisting and turning of logic to try to explain and justify a falsehood.

Implement a 50% Discount/Rebate at the various points of retail sale and inflation is mathematically transformed into deflation ($100 worth of groceries can be bought for only $50 and yet with the rebate aspect of the policy the merchant gets their full payment of $100). The merchant also gets a potential doubling of demand for every one of their goods and services that they can compete for on price and with innovation which are economic virtues instead of simply inflating which is somewhere between an economic misdemeanor and a first degree felony.

Mish I admire your objectivity about the FED and your photography is lovely, but your clinging to libertarian economic theory in the face of my more than decade long posting of the undeniable mathematical and economic effects of this single policy is telling. The socialist obsession with raising taxes is an equivalent orthodox stupidity. Instead give every individual and commercial agent an account at the central bank and mandate that the FED distribute the rebate aspect of the 50% Discount/Rebate and the Federal Reserve becomes the General Reserve and the equally stubborn orthodoxies of socialism and capitalism becomes an economy of grace as in monetary gifting AKA Wisdomics-Gracenomics.

Second post on a second thread onsame subject:

The FED doesn’t work. It doesn’t fulfill or accomplish it mandates. Never has. Why? Because it was designed to make the world safe for private banking and reinforce banking’s monopoly paradigm for the creation and distribution of virtually all new money. Raising interest rates is a heavy handed piss poor policy. This is mostly because “free” market theoretics is actually a fetishized misnomer for TOTAL freedom IOW chaos because in the human universe and human systemic policies there is only freedom within known and enforceable barriers. Thats because there’s this “little” thing called ethics…which people who can only think in terms of an orthodoxy blithely ignore. Orthodoxies prevent actual looking/perceiving and so trap people into stupidities, falsehoods and unworkabilities. You want to end inflation and supercharge the robustness of the economy, use double entry bookkeeping’s operations of equal debits and credits that sum to zero applied to price at retail sale with a 50% Discount/Credit to the consumer and Rebate/Debit back to the merchant granting the 50% discount and voila! beneficial price and asset deflation. Just keep doing the debits and credits until you see it.

AO: the purpose of the central bank is to fund the government’s deficit. 

Me: Yes it can do that also even with minimal taxation on income. The central bank can create as much money as it desires. That would result in inflation in “free” market theoretics…unless of course the created money was the rebating of the discounts granted to consumers at retail sale because being able to buy $100 worth of goods for $50 or buying a $500k house for $250k is a funny kind of inflation. And of course opting into the 50% Discount/Rebate policy would include a promise not to inflate your prices by more than 2% per annum, and any revenue you garnered by additional inflation would be taxed at a rate of at least 100%. Furthermore, no sane business owner would be able to resist such a policy because if they did even the stupidest consumer is not going to give them 100% of price when they can walk down the street and only pay 50% of it to their competitor. Finally, why would a business person not want such a policy when it potentially doubles the demand for every one of their goods and/or services???