{"id":347802,"date":"2018-02-11T15:51:52","date_gmt":"2018-02-11T14:51:52","guid":{"rendered":"http:\/\/rinf.com\/alt-news\/newswire\/this-weeks-mini-crash-lewrockwell\/"},"modified":"2018-02-11T15:51:52","modified_gmt":"2018-02-11T14:51:52","slug":"this-weeks-mini-crash-lewrockwell","status":"publish","type":"post","link":"http:\/\/rinf.com\/alt-news\/newswire\/this-weeks-mini-crash-lewrockwell\/","title":{"rendered":"This Week\u2019s Mini-Crash &#8211; LewRockwell"},"content":{"rendered":"<div>\n\t\t\t\t\t\t\t                            \t<!-- S3 Cache --><!-- S3:S3:Non-Original -->\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/p>\n<p>According to the mainstream narratives, a state of inflation alert was the catalyst to the US stock market mini-crash of February 2 and February 5, 2018. This explanation echoes the run-up to the October 1987 stock market crash. On other occasions in history, inflation alerts have not had such an immediate effect, with the pull-back of asset price inflation (which typically leads reported goods and services inflation) waiting for a substantial tightening of monetary policy.<\/p>\n<p>Now everyone and his\u00a0dog realizes that an inflation \u201cbreak-out\u201d (from inertia under the 2 per cent standard) would mean\u00a0<a href=\"https:\/\/mises.org\/wire\/gops-tax-reform-offers-no-relief-inflation-tax\">a bigger take for Uncle Sam<\/a>\u00a0and an eventual crash and recession. Some investors who have been riding the \u201chunt for yield\u201d train decide it is time to get off, but on approaching the exit they encounter a stampede of like-minded people. Asset prices have gapped down or,\u00a0worse, the market has seized up. Aggravating the stampede is the arrival of fellow-investors who have suddenly discovered the state-of-the-art products and services they \u2014 during the hunt for yield \u2014 have blown up.<\/p>\n<p>Many decide to postpone their exit hoping for a quieter time in the future. The history of the stampede and the realization that many of its one-time participants still \u201cwant out\u201d weigh on markets and the economy going forward.<\/p>\n<p>In autumn 1987, the trigger to the inflation alert had been the new Fed Chief (Alan Greenspan) hinting that he would no longer steer monetary policy towards bolstering the dollar in line with the Louvre Accord of early that year. Paul Volcker (the previous Fed Chief) had had late remorse for having pursued a policy of monetary inflation since the Plaza Accord of summer 1985 (where he had signed up for\u00a0Treasury Secretary Baker\u2019s&#8230;<\/p>\n<\/div>\n<p><a href=\"https:\/\/www.lewrockwell.com\/2018\/02\/brendan-brown\/is-this-weeks-mini-crash-just-the-beginning\/\">Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to the mainstream narratives, a state of inflation alert was the catalyst to the US stock market mini-crash of February 2 and February 5, 2018. This explanation echoes the run-up to the October 1987 stock market crash. On other occasions in history, inflation alerts have not had such an immediate effect, with the pull-back [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[519],"tags":[],"class_list":{"0":"post-347802","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-newswire"},"_links":{"self":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/347802","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/comments?post=347802"}],"version-history":[{"count":0,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/347802\/revisions"}],"wp:attachment":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/media?parent=347802"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/categories?post=347802"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/tags?post=347802"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}