Eightnine2718281828mu5 Finds Gold (and a Stronger Dollar) in Kudlow’s Archive
This one is by eightnine2718281828mu5.
Its fun (and infuriating) to review some of Kudlow’s past lunacies. Consider this one from August 2007:
A full Monty easing of Fed policy, including fed funds rate cuts on top of their discount rate opening, could lead to a stronger dollar and a much weaker gold price, according to John Tamny of RealClearMarkets and Paul Hoffmeister of Bretton Woods Research.
Interestingly, inflation hawk Steve Forbes agrees with this idea. On Kudlow & Company tonight John Tamny, a former Goldman Sachs banker turned economic journalist, suggested that a 4.5 percent fed funds target rate could bring the gold price all the way down to $550. That’s the power of rising money demand.
There’s something seriously wrong with any media outlet that lets this guy sit in front of a camera and microphone. (Cactus here: I suspect eightnine2718281828mu5 was in a hurry when he/she wrote this post because that last statement is woefully incomplete. Allow me to correct it: There is something wrong with any media outlet that lets Kudlow or any of his, ahem, peers, sit in front of a camera and a microphone. Reads much better now, doesn’t it?)
My favorite line is in his conclusion:
It may sound counter-intuitive, but it makes perfect sense in the logic of supply-side economics.
The fact that it makes sense in the context of supply-side economics but fails miserably in the real world should tell any rational observer something important about the validity of supply-side economics. And the fact that Larry can’t arrive at the rather obvious conclusion should tell you something about Larry.
This one was by eightnine2718281828mu5.