The great pretending continues in order to protect the Federal Reserve from sunlight upon them. Central banks (U.S. Fed Reserve included) are raising interest rates into a recession, which is specifically against their legislative mandate. Therefore, in order to protect the bankers, the pundits and politicians must deny a recession exists.
Pundit Steve Liesman spins the data, says we need to wait longer, and circles the wagons to protect the policy makers, specifically the White House. Mohamed El-Erian tries to split the baby (02:00 video); while not admitting directly that the economy is in a recession, he states the “economy is weakening much faster than expected.” WATCH:
At a certain point all of this pretending and denial is going to come crashing down. The “economic transition” to a new “green future” they are all pretending not to see as the root cause of the economic collapse, has unavoidable consequences.
The dam is breaking around them and they are running out of fingers and toes to stop the inevitable collapse. Meanwhile the Davos crowd has purchased all the scuba gear and awaits the final outcome.
By claiming there is not a recession, the Federal Reserve can continue taking action that lowers economic activity. The lowering of economic activity drops the use of energy inside the economy. They are managing the economic transition inside the Build Back Better or Green New Deal agenda. They are managing a purposeful decline in economic activity in order to support the energy transition.
The only way the Federal Reserve and central banks can raise interest rates into a recession, is if they deny a recession exists.
That is why they are denying a recession exists.
