from Balaji | by Balaji

Balaji

@balajis

over 2 years ago

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Imagine steering a car by mail. Stamp a letter. Toss it out the window. And wait till you hear back before turning the wheel. Obviously, you'll crash! Because you need to steer in seconds. And it takes days to get back mail. So now you understand how the Fed "steers" the economy.

The Fed doesn't just forecast rates. It sets them. So the fact that their forecasts vary so wildly is crazy. You're asking someone to guess a number that *they themselves will set* in a few years. And they can't do it. Just look at the oscillation. Trillions of dollars… t.co/XNTAayJUAx t.co/HuT0UPawFp