Janet Yellen just said...

[GFB]

don't make the mistake of thinking that what you perceive as the politics of the Fed is how you should be prepared to react to them

That doesn't even make sense. I think you have gone off the deep end.

If so, I've been there for years..and it sure pays well .

[planosteve]

The federal government just makes up numbers for unemployment and inflation, and then report them as fact. The numbers aren't worth the paper they are written on.

I don't think they just make them up. But, they do define them so as to get the results they want which is to make the unemployment and inflation appear much lower than they actually are.

To both of you.. you can believe that if you wish.. Doesn't change that what the Fed says and does matters..to all of us.

The Fed is a dictatorship of dangerous Cool-Aid drinkers. To every question about obvious structural failures in the US economy such as the drastic rise long-term unemployment and labor force dropouts and the anemic level of business investment in future productivity and growth—which has been at deeply sub-historical levels since 2000—-Yellen had a ritualistic response: All the bad stuff is due to the fact that the cyclical path of the US economy has fallen short of the DSGE prediction for 5 years running, but all those failures will automatically fix themselves once the economy gets back on the Fed’s perpetually limp hockey stick!

Never has one person talked in so many circles in such a short period of time. In truth, the Fed’s new chair is an appallingly naïve and simple-minded paint-by-the-numbers Keynesian. She will lead the Fed right into the jaws of the next bubble smash-up, and as one wag put it, no one will even bother to leave the room.

http://davidstockmanscontracorner.com/e ... imp-again/

[GFB]

Well..as usual..I tried.

[planosteve]

More on the "low" inflation. Note that since 2000, the CPI shows inflation has been just 39.09%

[GFB]

So..in 14 years inflation was 31%.

..sounds like a bit over 2% a year to me.

[planosteve]

So..in 14 years inflation was 31%.

..sounds like a bit over 2% a year to me.

39.09% The CPI is 2.1% now.

[GFB]

So..in 14 years inflation was 31%.

..sounds like a bit over 2% a year to me.

39.09% The CPI is 2.1% now.

Ok..let's go with 39%.

That's still average inflation of 2.7 for the last 14 years.

..sounds about right..it was higher than now a few years ago.

[planosteve]

Stockman on Yellen's press conference:

The only thing that can be said about Janet Yellen’s simple-minded paint-by-the-numbers performance yesterday is that the Keynesian apotheosis is complete. American capitalism and all political life, too, is now ruled by a 12-member monetary politburo, which is essentially accountable to no one except its own misbegotten doctrine that prosperity flows from the end of a printing press.

To be sure, this non-sensical and historically disproven proposition gets all gussied up in neo-Keynesian Fed-speak about dual mandates, monetary support to aggregate demand, “slack” in labor markets and remaining shortfalls from potential GDP, among endless like and similar jargon. But it did not take long during yesterday’s presser to reveal that Yellen’s mind dwells completely in a circular puzzle palace.

[GFB]

Stockman on Yellen's press conference:

The only thing that can be said about Janet Yellen’s simple-minded paint-by-the-numbers performance yesterday is that the Keynesian apotheosis is complete. American capitalism and all political life, too, is now ruled by a 12-member monetary politburo, which is essentially accountable to no one except its own misbegotten doctrine that prosperity flows from the end of a printing press.

To be sure, this non-sensical and historically disproven proposition gets all gussied up in neo-Keynesian Fed-speak about dual mandates, monetary support to aggregate demand, “slack” in labor markets and remaining shortfalls from potential GDP, among endless like and similar jargon. But it did not take long during yesterday’s presser to reveal that Yellen’s mind dwells completely in a circular puzzle palace.

So..I guess you and he have surrendered?

[GFB]

Now you can be on the winner's side..instead of the whiner's side.

[planosteve]

Yellen’s lame answer to the chart below was “Its conceivable there has been some permanent damage”. Indeed.

[John in Plano]

Does that chart include illegal aliens who have jobs ?