We have written frequently over the past couple of weeks about the disastrous public pension funds in Kentucky that are anywhere from $42 - $84 billion underfunded, depending on which discount rate you feel inclined to use. As we've argued before, these pensions, like the ones in Illinois and other states, are so hopelessly underfunded that they haven't a prayer of ever again being made whole.
Moments from now President Trump is expected to the take the stage at the Indiana State Fair to 'unveil' a tax plan that was leaked by someone in or around his administration hours ago...which we suspect is somewhat more anticlimactic than he might have hoped. In any event, earlier this morning we covered the details of Trump's plan to 'make taxes great again' in a post entitled "Here Is The Leaked Trump Tax Plan."
With the Fed finally admitting it is confused by the "mystery" of inflation, it has also become painfully clear how perplexed it is by the biggest asset bubble in history that the Fed and its central bank peers have blown. But don't call it a humorless bubble.
Yesterday, Janet Yellen stated that the Fed was “wrong” about employment and inflation.
I realize that the significance of this might be lost on many individuals. The Fed’s ENTIRE purpose is to pursue “maximum employment” and “stable prices”(aka low inflation). Indeed, these are LITERALLY the words in the Fed’s official “Dual Mandate” from Congress.
While bond notes were put forward as a panacea to diminish the flight of wealth from Zimbabwe... (as Steve Hanke noted, it was not)...