Tag Archives: Pretense Of Knowledge

The Most Qualified Fed Chair Since Arthur Burns

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“It is not possible for any one human to have the knowledge needed to accomplish the goals established for the Federal Reserve. No person can assure Mr. Wolfers’ daughter her economic future will be bright. Ironically, that might only happen if Yellen took the job but then stepped aside to let the market determine interest rates and the flow of capital.  Given Yellen’s views and experience, best case, the professor’s daughter can look forward to a world of no-growth punctuated with the occasional banking crisis. In the worst case, Ms. Yellen will conjure up the memory of Arthur Burns.”

http://dailyreckoning.com/the-most-qualified-fed-chair-since-arthur-burns/

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‘Rejoice: the Yellen Fed will print money forever to create jobs’

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“We now know where we stand. Janet Yellen is to take over the US Federal Reserve, the world’s monetary hegemon, the master of all our lives.  The Fed will be looser for longer. The FOMC will continue to print money until the US economy creates enough jobs to reignite wage pressures and inflation, regardless of asset bubbles, or collateral damage along the way.  No Fed chief in history has been better qualified. She has pedigree. Her husband is Nobel laureate George Akerlof, the scourge of efficient markets theory.  Her lodestar is the ‘non-accelerating inflation rate of unemployment’ (NAIRU). When the rate is above NAIRU, she is a dove: when below, she is a hawk.”

http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100025713/rejoice-the-yellen-fed-will-print-money-forever-to-create-jobs/

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The FED Does Not Control the Federal Funds Rate

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“Because they are sitting on $2 trillion of excess reserves, banks rarely borrow money overnight. They do not have to. They have plenty of reserves.  Before late 2008, a bank would borrow overnight if its reserves threatened to fall below the legal requirement set by the FED. But now banks have so many reserves that they rarely borrow. So, there is little demand. So, the rate is low. The FOMC has increased the monetary base at times. In most of 2012, it decreased it. The FedFunds rate has not changed when FOMC policy has changed. Here is the inescapable conclusion: the Federal Reserve does not control this rate. The FED pretends that it does.”

http://teapartyeconomist.com/2013/09/19/fed-does-not-control-federal-funds-rate/

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Bernanke Hates This Fed Candidate

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Bernanke Hates This Fed Candidate

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Bill Bonner: Larry Summers Was a Lousy Choice Anyway

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“Yes, Summers is smarter than we are.  Yes, he has a better academic record.  Yes, he is a real economist.  Yes, he has widespread political support and a winning personality.  But beyond those things, studies find that people with lower IQs make better truck drivers than people with high IQs. Which puts the critical question right out in the open:  What kind of thing is running a central bank? And how smart do you have to be to be a successful central banker?”

http://dailyreckoning.com/larry-summers-was-a-lousy-choice-anyway/

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Janet Yellen On The Financial Crisis: “I Didn’t See Any Of That Coming”

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“‘For my own part,’ Ms. Yellen said, ‘I did not see and did not appreciate what the risks were with securitization, the credit ratings agencies, the shadow banking system, the S.I.V.’s — I didn’t see any of that coming until it happened.’ Her startled interviewers noted that almost none of the officials who testified had offered a similar acknowledgment of an almost universal failure.”

http://www.zerohedge.com/news/2013-08-14/janet-yellen-financial-crisis-i-didn’t-see-any-coming-until-it-happened

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Record return of Arctic ice cap as it grows by 60% in a year

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“A chilly Arctic summer has left nearly a million more square miles of ocean covered with ice than at the same time last year – an increase of 60 per cent.  The rebound from 2012’s record low comes six years after the BBC reported that global warming would leave the Arctic ice-free in summer by 2013.  Some eminent scientists now believe the world is heading for a period of cooling that will not end until the middle of this century – a process that would expose computer forecasts of imminent catastrophic warming as dangerously misleading.”

http://www.dailymail.co.uk/news/article-2415191/Global-cooling-Arctic-ice-caps-grows-60-global-warming-predictions.html

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Bill Bonner: A Personal Appeal to Barack Obama

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Bill-Bonner2

“We don’t share the common fantasy of central bankers: that they can know better than the market what interest rate, employment rate and inflation rate the country should have. We mention the three because the Fed sets short-term interest rates through its conventional monetary policy. And it tries to keep a lid on long-term Treasury yields through its ‘unconventional’ QE programs.  And it does so, it claims, to adjust two other important rates: employment and inflation.  Every candidate for the top post at the Fed – except us – believes it is his right and duty to do these things. Which means none should be allowed anywhere near the Fed.”

http://www.bonnerandpartners.com/a-personal-appeal-to-barack-obama/

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A Regional FED President Says the FED Is Not Inflating Enough.

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“This statement was Big News. It was such Big News that the Wall Street Journal ran a story on it. Why? Because when a regional Federal Reserve Bank president says the obvious is Big News, it means that he is opposed to tapering. It means that he thinks the counterfeiting of a trillion dollars of digital money a year is for wimps. What should the rate of counterfeiting be? He did not say. They never say. Their lips are sealed. This is what is known at the Federal Reserve as transparency. Opaqueness is when an official says something incoherent, which everyone in the media knows is incoherent, and they dutifully report as meaningful.”

http://teapartyeconomist.com/2013/09/05/fed-president-says-fed-inflating-enough/

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Bill Bonner: It’s a dangerous time of year

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“A stream of income – either from a stock or a bond – is a promise. The value of it depends on how much you trust the promisor and his money. That is the problem. As much as we like Ben Bernanke as a human being, we find grave fault in him as a god. Only a god could know more than the sum of all the knowledge held by all people who are active in the world economy. Only a god could select an interest rate better than the one they select for themselves. And only a god-awful economist could claim to do such a thing with a straight face.  The galling thing is that he may be able to keep the whole shebang going for many years more.”

http://moneyweek.com/bill-bonner-its-a-dangerous-time-of-year/

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