Fed's Evans says policy to stay on hold 'for some time'


April 9, 2021

Investor's Insight are my comments about each of the headlines in the weekly Market RoundUp videos, available in real time to clients of Harasymiw Investments of ACPI only. These excerpts are released for general viewing four months after initial private release. To learn more about partnering with Harasymiw Investments of ACPI to help guide your investment portfolio, get started here.

In today’s edition, I’ve provided headlines which I believe are quite indicative of living in a time that, paraphrasing Albert Einstein, likes to keep doing the same thing but expecting different results. Do you remember what he was defining? That’s right – insanity.

First, we have the President of the Chicago Federal Reserve Bank telling us that easy monetary policy needs to stay for the foreseeable future to help return the economy to a healthier state. That’s the same easy monetary policy which has been with us for nearly a decade and a half, even though we were originally told it would only last a year or two to get things back to “normal”. But, as I’ll make note in a few minutes, this policy is based on an economic theory western civilization has been cajoling for generations, not just a decade and a half.

Next (yes, I'm providing you a freebie "doubleheader"), we have the CEO at JP Morgan Chase lamenting how things have gone terribly wrong in the US, and by my extension, the entire financial world. Put aside the fact that he’s become excessively wealthy in this same system that he’s bemoaning now. He’s shedding crocodile tears, which are distracting you from actions his bank is taking to increase their own wealth, power and influence, all in the existing system their own CEO says is the in need of overhaul. While we fall for his drama, his own wealth keeps rising.

What many investment professionals won’t tell you, either because they don’t know it themselves or because they actually believe nothing is broken, is that it’s our current economic policies, which tow the economic theories of the early 20th century British economist, John Maynard Keynes, which have brought us to this economic juncture as a society. And yet, with every new problem that arises, rather than trying something new, we implement more perceived Keynesian theories into action and hope for different outcomes. We rely on consumerism and credit rather than production and investments. And look where that has led us to. But, don’t worry, economic lecturing is not my intention here. I merely want to provide you with a glimpse of the investment and economic world as I see it.

SOURCE: Reuters

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