This is unbelievable.
I fully admit that economics makes my brain hurt and that I find it profoundly confusing. But I understand the fundamentals. The same cannot be said of Jeffrey M. Lacker, the president of the Federal Reserve Bank of Richmond. In its infinite wisdom, NPR put this idiot on the air with no one to counter him.
The kicker was that Guy Raz ends the interview by asking Lacker if, after all is said and done and QE3 works, Lacker will admit that he was wrong. Lacker says, “Course!”
But there’s a problem here: the data are long in. Joseph E. Gagnon, Senior Fellow at the Peterson Institute for International Economics, explains:
More to the point, this is QE3, as in “three,” as in, this is the third time we’ve done this. The other times, Lacker and his cronies said there would be inflation. Greece! Weimar Germany! Zimbabwe! Wheelbarrows of cash just to get a loaf of bread! Instead, the inflation rate is less than 2%—half the rate it was a year ago.
As Lacker states in the NPR interview: he is against the Fed doing anything about the economy and he is against the government doing anything about the economy. Lacker is an advocate for the rentier class and only the rentier class. How it is he is on the Fed Board is obvious enough. How it is NPR gave him a platform for his repudiated economic beliefs is more of a question.
 Actually, I don’t think QE3 will work either. It may be somewhat helpful, but it certainly won’t cause inflation. With inflation less than 2% and unemployment over 8%, the Fed should not be thinking about inflation.
 I’m just kidding! I know exactly how he got on NPR!