Central Banks Declare Outright War on Currency Value

The Repercussions and Hence Risks to Focus Upon

Ongoing Global Monetary Debasement Event 

By David Mitchell

The monetarist school greater inflation hypothesis has claimed victory already, quick to suggest that a V-shaped recovery in asset prices implies a V-shaped recovery in the real economy as well. This argument I am afraid does not stack up against the hard mathematics of the greater debt crisis, our global policy leaders from the Fed, OECD, BIS and the IIF do not believe a word of it either, so let us focus on their next moves ……


Outright War Is Declared on Currency ‘Purchasing Power’ Value

Over the last week new policy framework has been publicly stated for the record from the globes central banking governors on their annual symposium get together traditionally held in Jackson Hole, Wyoming.

The USA Federal Reserve governor Powell announced their new framework on the 27th August 2020, that will target higher inflation and lower unemployment.

Editor: Why the FED believes they can control employment numbers is personally quite beyond me, but I digress.

 The main pillars of the new policy framework can be  broken down into 3 areas….

-   Maximum employment, the FOMC emphasized that maximum employment is a broad-based and inclusive goal and reports that its policy decision will be informed by its "assessments of the shortfalls of employment from its maximum level."
-  Price stability, the FOMC adjusted its strategy for achieving its longer-run inflation goal of 2 percent by noting that it "seeks to achieve inflation that averages 2 percent over time." To this end, the revised statement states that "following periods when inflation has been running persistently below 2 percent, appropriate monetary policy will likely aim to achieve inflation moderately above 2 percent for some time." 
-  Constraints, the updates to the strategy statement explicitly acknowledge the challenges for monetary policy posed by a persistently low interest rate environment.


What does this mean in plain English exactly ?

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