Or Just Cut Us Instead?

Imagine you’ve got a tangled fishing line — knots everywhere, some loops so tight you can barely see through them. You hand it to someone who claims to be an expert, and they say, “No worries. I’ll handle this.” Instead of carefully untangling the mess, they grab a pair of scissors and snip the whole thing in half. Problem solved? Technically — yes. But practically? Now your line’s ruined, and your fishing day is done.

That, in a nutshell, is the essence of George F. Smith’s recent piece, “Does the Fed Shave with Occam’s Razor?” It’s a striking metaphor that sticks with you. Occam’s Razor, for the unfamiliar, is a logical principle: the simplest solution is often the best one. But when applied by the Federal Reserve, simplicity too often looks like brute force — raising rates or slashing them, printing money or choking it off — as if shaving with a rusty hatchet instead of a clean razor.

The Illusion of Simplicity

Smith points out how the Fed regularly invokes complex justifications for its moves — but behind the curtain, the motives are often stunningly simple: protect the dollar, appease politicians, or respond to media pressure. It’s as if a chess master were playing checkers, yet still managing to confuse the rest of the board.

One of the strongest visual lines from the article compares the Fed’s policies to “shaving with Occam’s Razor without knowing which side is the blade.” Imagine that for a second. They’re swinging the tool of monetary policy around with the confidence of a surgeon — but without a clear sense of direction. It cuts, yes. But it cuts everything, not just the inflation.

The Inflation Monster Under the Bed

We’re told that inflation is “transitory,” then we’re told it’s “sticky,” and later it’s “under control,” even as prices keep creeping up on everything from toothpaste to tacos. Smith lays bare the obvious: inflation isn’t a naturally occurring storm — it’s a manmade fire, ignited by monetary policy and fueled by political denial.

It’s like watching a firefighter pour gasoline on the flames, then claim the hose is just out of reach. “Don’t worry,” they say, “we’ve got a new theory that will explain it.” All the while, your grocery bill rises, your savings buy less, and your retirement dreams seem farther away.

Cutting the Rope That Holds the Economy Together

Another image Smith uses is that of a monetary regime held together with ideological duct tape. The Fed prints money to solve every problem, creates artificial booms, and then yanks the rug out when the economy gets overheated — which, surprise, was caused by the very same cheap money policy to begin with.

It’s like a carnival ride designed by someone who’s never been to a carnival — thrilling at first, but then terrifying, nauseating, and finally, dangerous.

A Tool, Not a Religion

Smith’s central message is that the Fed has turned its tools into a kind of monetary religion. Money printing is the gospel. Rate manipulation is the sacrament. But there’s no room for humility — no acknowledgment that maybe, just maybe, the market can do a better job of setting rates and allocating capital than a small group of unelected economists.

In fact, Smith notes that the Fed isn’t solving problems — it’s creating them, then offering even blunter tools to “fix” what they broke. If they’re shaving with Occam’s Razor, they’ve long since lost the mirror.

So, What Now?

For investors, retirees, and advisors like myself, this metaphor-heavy message has a clear takeaway: don’t expect clarity, logic, or even honesty from centralized monetary policy. What we can expect are missteps, overreactions, and a painful detachment from Main Street reality.

So how do we respond? Diversification, precious metals, hard assets, and proactive management — these aren’t just buzzwords, they’re the lifeboats in a monetary storm.