{"id":7765,"date":"2010-11-15T12:09:44","date_gmt":"2010-11-15T17:09:44","guid":{"rendered":"http:\/\/cfif.org\/v\/freedom_line_blog\/?p=7765"},"modified":"2010-11-15T12:09:44","modified_gmt":"2010-11-15T17:09:44","slug":"princeton-coal-miner-misses-wal-mart-canary-continues-digging","status":"publish","type":"post","link":"https:\/\/cfif.org\/v\/freedom_line_blog\/7765\/princeton-coal-miner-misses-wal-mart-canary-continues-digging\/","title":{"rendered":"Princeton Coal Miner Misses Wal-Mart Canary; Continues Digging"},"content":{"rendered":"<p>Canaries and markets are sensitive creatures.\u00a0 Take a canary down a coal mine and the poor bird starts dying as soon as the toxic levels of coal dust start rising.\u00a0 Wait too long, and coal miners will be following their yellow feathered friend down the River Styx.\u00a0 The key is to monitor the canary carefully for signals that it\u2019s time to stop digging before it\u2019s too late.<\/p>\n<p>The market is a similar beast, even though the data miners of economic trends at places like Princeton and the Federal Reserve Board choose to think otherwise.<\/p>\n<p>Practitioners of microeconomics presume they have \u201cperfect information\u201d by which they mean knowing all the relevant data before making a decision.\u00a0 Thusly armed they sally forth to wage war on behalf of whatever economic model (or political interest) they claim provides the greatest good.<\/p>\n<p>Such is the case with Federal Reserve Board Chairman Ben Bernanke, the Princeton economist responsible for authorizing the printing of hundreds of billions of dollars to \u201c<a href=\"http:\/\/www.businessinsider.com\/why-quantitative-easing-is-bad-for-the-economy-2010-11\" target=\"_blank\">quantitatively ease<\/a>\u201d the lack of money flowing in the marketplace, and spur a \u201chealthy\u201d bit of inflation.\u00a0 Bernanke is doing this because he assumes he has all the relevant data to support such a move.<\/p>\n<p>A <a href=\"http:\/\/www.cnbc.com\/id\/40135092\" target=\"_blank\">new price survey of a Wal-Mart grocery basket<\/a> says otherwise.\u00a0 The retail giant is raising prices, a market signal that inflation is already underway without government interference.\u00a0 Like any market leader, Wal-Mart\u2019s actions will be quickly emulated by others in their sector, with down market effects reverberating across the economy.<\/p>\n<p>The market is already sensing the need for inflation and is acting accordingly.\u00a0 A massive injection of \u201cFed Stimulus\u201d to achieve the same goal will result in accelerating inflation beyond what\u2019s considered healthy, devaluing the dollar and making it harder for middle class families to buy necessities.\u00a0 That kills an economy.\u00a0 If Bernanke continues to ignore the ability of the market to adjust itself, it will soon be his career lying lifeless in the shaft.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Canaries and markets are sensitive creatures.\u00a0 Take a canary down a coal mine and the poor bird starts dying as soon as the toxic levels of coal dust start rising.\u00a0 Wait too long, and coal miners will be following their yellow feathered friend down the River Styx.\u00a0 The key is to monitor the canary carefully [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[581,2084,2085,544,862,2086,2083,2046],"class_list":["post-7765","post","type-post","status-publish","format-standard","hentry","category-posts","tag-ben-bernanke","tag-canary","tag-coal-mine","tag-federal-reserve","tag-market","tag-microeconomics","tag-perfect-knowledge","tag-quantitative-easing"],"_links":{"self":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts\/7765","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/comments?post=7765"}],"version-history":[{"count":4,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts\/7765\/revisions"}],"predecessor-version":[{"id":7769,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts\/7765\/revisions\/7769"}],"wp:attachment":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/media?parent=7765"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/categories?post=7765"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/tags?post=7765"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}