Fatal Conceit Exemplified

There's a place where the lights won't find you
Holding hands while the walls come tumbling down
When they do
I'll be right behind you
--Tears for Fears

The fatal conceit of bureaucrats is well exemplified by yesterday's FOMC statement. The image that this statement attempts to convey--that a group of central planners is capable of effectively monitoring and controlling a complex economy is pure folly. Even more ludicrous is that many onlookers actually believe it.

Perhaps some are waking up, because at the moment it appears financial markets might be doubting the Fed's omnipotence. The Dow has dropped about 1000 points since the FOMC statement was released yesterday afternoon.

Gold is chiming in as well. Remember, gold is essentially a bet on disorder--including disorder caused by the Fed's fatal conceit.

Perhaps gold is telling us that confidence in the Fed's conceit may be fatal.

position in gold