We Officially Have Central Planning With No Plan

Rabobank analyst: Yet this is CENTRAL PLANNING WITH NO PLAN. One does not have to be an advocate of MMT to see its promise to directly employ people to do something society wants is more logical than pouring trillions into markets –like candy scattered above ADHD kids, or chum into a school of sharks– and then expecting anything that creates long-lasting, high-paying employment to result (outside Wall Street).

The only part of the plan that seems clear is wild asset-price speculation, which is already ludicrous. Are we really going to have ‘many years’ of this ahead, with what we see today as just the starting base? The GameStop investigation underway in Congress seems to suggest some regulation at the retail level might be needed; but where are all the sensible adults as ADHD sharks let rip? Solemnly talking about ‘full employment’ and holding rates and ‘building back better’!

To repeat: for markets, the key issue is whether this snorting M&Ms strategy is going to be inflationary or not. Near term we can all see it is: longer term, it still seems far more asset than wages based – yet again.