Era of Economic Ignorance

"We're entering a new age, pal."
--Gordon Gekko (Wall Street)

Interesting interview with Jim Grant. Two points to note here. One is his early observations is aligns with what we have noted on these pages--that the natural direction of prices is lower--not higher. As productivity improves, more output is created per dollar, which means unit prices decrease.

That people generally believe otherwise reflects the poor economic education delivered in this country. Entire generations appear to have been duped.

Later in the interview Grant suggests that we are currently in an era of 'central bank worship.' Confidence in what monetary bureaucrats can do to 'save' or 'help' economies is at epic levels.

Perhaps a better label for this period is era of economic ignorance.