Yellen-The US Economy is Strong

[planosteve]

On January 29, Fed Chair Janet Yellen met with Senate Democrats at a private luncheon. She told the Democrats that the U.S. Economy is Strong.

I thought Mike Shedlock has some very interesting comments about that. Here are some exerts from his most recent column;

Janet Yellen right now is virtually blind as a bat. She cannot see the bubbles in bonds and equities the Fed created. When those bubbles burst, the slowdown should smack some sense into the Fed, but it won't. Moreover, the bigger this equity bubble gets, the bigger the crash. The Fed cannot see that either.

These arrogant fools actually believe they are economic wizards who can steer the economy like a truck on a highway. The idea that central banks can set interest rates is as faulty as Russian central planners can correctly set the price of oranges. But that's what they believe.

They are extrapolating 3rd quarter GDP into the future again right now. They miss the bond and equity bubbles, factory orders, and countless other things. All strong reports are thought to be representative. All weak reports are deemed to be a "soft patch".

Judging from the "strong economy" statement of Yellen, the Fed seems to believe the US will "decouple" from the clearly slowing global economy. It has for a while, but it cannot last.

Good news sells. People do not like the truth. They would rather hear lies. And the Fed is willing to provide lies, especially in difficult times.

The Fed does not want an audit? What pray tell does it have to hide?

European politician Jean Claude Juncker summed it up nicely: "When it becomes serious, you have to lie".
And so the Fed does. Sometimes, as a matter of arrogant belief in their own wizardry, they even start to believe the lies they tell.

Read more athttp://globaleconomicanalysis.blogspot.com/#FSv8bGELOtciiWfO.99

[GFB]

An idiot wrote this.

[planosteve]

Mish Citations

New York Times: NYT 10th Annual Year in Ideas - #1 Idea of the Year 'Do-It-Yourself Macroeconomics'

Time Magazine: Best 25 Financial Blogs

Bloomberg: Financial Blogs: The Best of the Bunch

CNBC: Best Alternative Financial Websites

Strategist News: Best Business Blogs 2011

Read more athttp://globaleconomicanalysis.blogspot.com/2008/06/about-mike-mish-shedlock.html#SV7D5jX2Bz8lk7b6.99

[GFB]

Janet Yellen right now is virtually blind as a bat. She cannot see the bubbles in bonds and equities the Fed created. When those bubbles burst, the slowdown should smack some sense into the Fed, but it won't. Moreover, the bigger this equity bubble gets, the bigger the crash. The Fed cannot see that either.

That is really dumb.

Stock market valuations are right at historical norms.

So, only someone deeply misinformed would call this a "bubble."

[GFB]

These arrogant fools actually believe they are economic wizards who can steer the economy like a truck on a highway.

They do steer the economy..sometimes off the cliff.

That is why they are being so cautious about raising rates.

The writer is really dumb.

[planosteve]

Yeah, Mish Shedlock is a moron, David Stockman is a dope.
But, Bob Brinker. Now, your talking genius.

[GFB]

Both make the same mistake.

They confuse economics with politics..and intertwine them where it is inappropriate and downright.."not smart."

[planosteve]

Both make the same mistake.

They confuse economics with politics..and intertwine them where it is inappropriate and downright.."not smart."

Since the FED, economics and politics are the same thing. Why do you think the FED was briefing the Democrats?

[planosteve]

If you are retired on a fixed income and social security, the FED snipers have you in their gunsights. That's because you have savings and the FED wants it. That way they can continue to buy the votes of the food stamp crowd. So, they steal your savings by pocketing the interest you should be earning on bonds and blow the stock market into bubbles to keep you in bonds. They are as political as it gets.

[GFB]

Both make the same mistake.

They confuse economics with politics..and intertwine them where it is inappropriate and downright.."not smart."

Since the FED, economics and politics are the same thing. Why do you think the FED was briefing the Democrats?

She went to lunch..I'm sure that happens with Republicans, too.

[GFB]

If you are retired on a fixed income and social security, the FED snipers have you in their gunsights. That's because you have savings and the FED wants it. That way they can continue to buy the votes of the food stamp crowd. So, they steal your savings by pocketing the interest you should be earning on bonds and blow the stock market into bubbles to keep you in bonds. They are as political as it gets.

I feel so sorry for you.

[Mark]

Once again, the stock market is propped up by $3.5 trillion of crony capitalism, aka quantitative easing.

GFB, you're a fan of Rush, right? He pointed all of this out in a very glaring way today.

[GFB]

Once again, the stock market is propped up by $3.5 trillion of crony capitalism, aka quantitative easing.

GFB, you're a fan of Rush, right? He pointed all of this out in a very glaring way today.

You're right..I love Rush. I consider him the foremost authority on understand liberals and accurately predicting what they're going to do before they do it.

Mark, I can tell you sincerely..those few times he comments on economics..I cringe.

Sort of like me commenting on sports.

[GFB]

And QE stopped in October..watch the market over the next few weeks and months..it's not the least bit interested in QE.

It WILL be interested when the Fed starts raising rates..and I assure you..it will not serve to prop up the market.

I believe that is months away..possibly a year.

[Mark]

Once again, the stock market is propped up by $3.5 trillion of crony capitalism, aka quantitative easing.

GFB, you're a fan of Rush, right? He pointed all of this out in a very glaring way today.

You're right..I love Rush. I consider him the foremost authority on understand liberals and accurately predicting what they're going to do before they do it.

Mark, I can tell you sincerely..those few times he comments on economics..I cringe.

Sort of like me commenting on sports.

I don't listen to a lot of Rush. I sometimes fly by there during Wilkow's commercials. That's when I heard his comments today. He was dead on, 100% correct.

[Mark]

And QE stopped in October..watch the market over the next few weeks and months..it's not the least bit interested in QE.

It WILL be interested when the Fed starts raising rates..and I assure you..it will not serve to prop up the market.

I believe that is months away..possibly a year.

Pull the $3.5 back out of the market, then we can start talking about legitimacy.

[GFB]

And QE stopped in October..watch the market over the next few weeks and months..it's not the least bit interested in QE.

It WILL be interested when the Fed starts raising rates..and I assure you..it will not serve to prop up the market.

I believe that is months away..possibly a year.

Pull the $3.5 back out of the market, then we can start talking about legitimacy.

Mark, the QE was not buying stocks..not put into the stock market.

A little knowledge can be a dangerous thing.

[Mark]

And QE stopped in October..watch the market over the next few weeks and months..it's not the least bit interested in QE.

It WILL be interested when the Fed starts raising rates..and I assure you..it will not serve to prop up the market.

I believe that is months away..possibly a year.

Pull the $3.5 back out of the market, then we can start talking about legitimacy.

Mark, the QE was not buying stocks..not put into the stock market.

A little knowledge can be a dangerous thing.

Please tell me how you put money into the stock market without buying stocks.

ETA: I get that you have made money from the stock market, but you need to at least admit that it is courtesy of taxpayer/printed dollars.

[GFB]

QE was to prop up the economy..and was fairly successful. It was the buying of bonds and treasury notes.

But stock market investors DO feel more confident when the Fed is working to help strengthen the economy..which is what they were doing.

..not buying stocks..not putting money into the stock market.

But as the Fed worked to help strengthen the economy..stock market investors are encouraged..and since the Fed was somewhat successful stock market investors are now encouraged because the economy is looking a bit rosier.

[GFB]

Mark, the Fed did NOT put money in the stock market.

Whoever told you that they did..fibbed to you.