Now is Not Then

Stop looking back in history to see what to do now!

The inflation rate was 1 percent in 1965 & hit 14 percent by 1980.  Volcker took the radical step of switching Fed policy from targeting interest rates to targeting the money supply.

Volker was an economist. Powell is a lawyer.

The Phillips Curve was a (dumb) theory and still is.

We do not have a monetary problem!

Us versus them Mind Set is the problem!

Us with them is the solution!

  • There is plenty of oil in Iran. Honor the agreement the world signed, and Trump cancelled. Let everybody buy oil from Iran and pay for it with any fiat currency they want.
  • Tear down those trade barriers Trump erected and let the goods and services flow without government intervention.
  • Stop the Fed’s bloodletting. It did not cure fevers in humans in the past and it won’t cure the QE fever caused by Wall Street’s financial crisis.  
  • Replace the Fed with an AI program, free of government intervention, that will only supply the necessary liquidity for markets to function. Nothing more. Not economic growth! Not employment! Not happiness!
  • Regulate Wall Street to prevent it from causing another QE solution to problems they create.

About Frank Sortino

Frank Sortino is finance professor emeritus from San Francisco State University and Director of the Pension Research Institute which he founded in 1981. For 10 years he wrote a quarterly analysis of mutual funds for Pensions and Investments Magazine and he has written two books on the subject of Post Modern Portfolio Theory. He has been a featured speaker at many conferences in the U.S., Europe, South Africa, and the Pacific Basin. Dr. Sortino received his Ph.D in Finance from the University of Oregon and has carried out research projects with many institutions like Shell Oil, Netherlands and The City and County of San Francisco Retirement System.
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