I just heard one of CNBC’s cheerleaders admonishing viewers not to worry about China’s full-on plunge into currency wars. You see, the US is growing strongly at 2-3% in the second half, jobs just keep on coming, and, besides, the USA is completely “decoupled” from whatever troubles may be brewing abroad.
So this regular CNBC noon time stock picker, channeling the iconic visage above, was buying the dips. In fact, she claimed to be picking up some of those swell consumer stocks that are sure to keep on keeping on.
This is getting downright ludicrous, but it does underscore the corruption of financial thought and discourse that he been engendered by the mad money printers in the Eccles Building. If you assume, as they do, that we are in the midst of some kind of timeless, repeating business cycle that can be deftly managed by the interest rates pegs and buy orders of the Fed’s open market desk, then its all just Fed-driven economic incrementalism.
To wit, the FOMC keeps “accommodating” more of an ether called “aggregate demand”, which, in turn, leads to rising production, jobs, incomes, profits and stock prices in an endless virtuous circle. That’s why the Wall Street touts are always expecting an economic acceleration in the next few quarters