Jelly Yellen will take over the FED

[Claudette]

Oh we're definetely in trouble folks.

Anyone who doesn't realize that is just one dumb son of a bitch.

 

[The Rabbi]

Once Roosevelt closed the gold window we were effectively off the gold standard. Go read Friedman's book Money Mischief for a good account of the bimetallic system we originally had, the british version of real gold standard, and the ersatz standard that came around after the Civil War.
Life was hardly ideal under a gold standard either. Farmers were starved for cash,thus the push for free silver in the late 19th century.
That we have had inflation since 1971 is not news. Nor does it support your contention that this system wil not make it another 7 years.

Farmers were starved for cash because the govt. decided to quit minting silver. Their main unit of exchange. So again, it was government involvement in monetary policy that created that problem.

I'm fully aware and well versed in the history of money, banking and monetary policy in the US. And again, I didn't say we wouldn't make it into 2020, I said we'll be lucky. I stand by that statement.

Negative yeilds on 10 yr. maturities, 96% of purchasing power destroyed, interest rates will HAVE to go up, although it's going to obviously be forced...which will cause another bubble burst with a central bank now completely out of ammo...and a mountain of unrepayable debt.

It's not sustainable. You're welcome to feel differently about that, but in the world of mathematics, I'd call calamity in the US dollar inevitable.

So your solution to the Fed is more gov't control of the currency?
You can't get away from gov't involvement in currency, I dont care what the medium is. In the old days currency was literally debased--less gold in the alloy or coins clipped around the edge.
Interest rates will certainly go up. They already have. I dont think that's disaster. I remember buying my first house with a 10 5/8% rate on an adjustable. This was 1990. We all survived.

 

[TakeAStepBack]

So your solution to the Fed is more gov't control of the currency?

No. I don't think government is the right entity for currency control. the free market should determine what medium of exchange is best. Ini the end, I'm more than confident that human actors will choose a medium that enhances their wealth and store of value over one that is deliberately destroyed.

You can't get away from gov't involvement in currency, I dont care what the medium is. In the old days currency was literally debased--less gold in the alloy or coins clipped around the edge.

True. And this was also frowned upon heavily. The largest culprits in clipping were, yep! Governance. Whather a king or otherwise.

Interest rates will certainly go up. They already have. I dont think that's disaster.

What makes the situation dangerous is run away interest rates. Rates have been held at rock bottom for a long time. This is being accomplished by means that will, without any doubt (even the fed res. admits it), a bubble burst. The federal reserve will not have the ammunition left to deal with such another burst and it could very well lead to a run on the dollar. in which the results should seem rather obvious.

I remember buying my first house with a 10 5/8% rate on an adjustable. This was 1990. We all survived.

There are many, many factors that are very different from the early 90s to today in monetary policy and finance. Most notably, leverage.

 

[The Rabbi]

We had a free market in currency for a long time. Banks issued notes. It made for gross inefficiencies because not every bank note was worth the same, with the same face value. There arose a market in discounting the notes for that reason. It was chaos. This is one area where gov't can play a role.

 

[KissMy]

The Wall Street Journal examined predictions about growth, jobs and inflation. The publication found Yellen's predictions were the most accurate overall. She was her high-school valedictorian who earned economics degrees at Brown and Yale. She is married to George Akerlof, a Nobel prize-winning economist and professor emeritus at the University of California, Berkeley. Her son, Robert Akerlof, is an assistant professor at the University of Warwick.

Yellen’s critics have often cited a statement she made in early April: “I believe progress on reducing unemployment should take center stage” for Fed policymakers “even if maintaining that progress might result in inflation slightly and temporarily exceeding 2 percent” — the Fed’s target rate.

But many economists say Yellen’s other public remarks, long experience at the Fed and record suggest she is nothing like the inflation dove the critics portray. After reading 42 of Yellen’s public speeches, Stephen Oliner of the University of California, Los Angeles, concluded that she very closely toed the Fed’s traditional tough line on inflation.

Harry Holzer said “I was in the Clinton administration with her when unemployment was 4 percent, and she was very aware of inflation, She’s not a mindless stimulator.”

While at Berkeley she worked with her husband, George Akerlof, who won the Nobel Prize in economics in 2001. Their work laid out a theory, now widely accepted among economists, about why many firms tend not to cut wages during periods of high unemployment — their desire to maintain the productivity of their workers trumps the short-term benefit that lower wages might bring. The “stickiness” of wages, in turn, helps explain why unemployment can persist and why government intervention in the market can help lessen it.

Yellen has emphasized in recent years the devastating and prolonged effects of the recession on workers — and the need for the central bank to take aggressive action to combat the high jobless rate.

 

[The Rabbi]

The Wall Street Journal examined predictions about growth, jobs and inflation. The publication found Yellen's predictions were the most accurate overall. She was her high-school valedictorian who earned economics degrees at Brown and Yale. She is married to George Akerlof, a Nobel prize-winning economist and professor emeritus at the University of California, Berkeley. Her son, Robert Akerlof, is an assistant professor at the University of Warwick.

Yellen’s critics have often cited a statement she made in early April: “I believe progress on reducing unemployment should take center stage” for Fed policymakers “even if maintaining that progress might result in inflation slightly and temporarily exceeding 2 percent” — the Fed’s target rate.

But many economists say Yellen’s other public remarks, long experience at the Fed and record suggest she is nothing like the inflation dove the critics portray. After reading 42 of Yellen’s public speeches, Stephen Oliner of the University of California, Los Angeles, concluded that she very closely toed the Fed’s traditional tough line on inflation.

Harry Holzer said “I was in the Clinton administration with her when unemployment was 4 percent, and she was very aware of inflation, She’s not a mindless stimulator.”

While at Berkeley she worked with her husband, George Akerlof, who won the Nobel Prize in economics in 2001. Their work laid out a theory, now widely accepted among economists, about why many firms tend not to cut wages during periods of high unemployment — their desire to maintain the productivity of their workers trumps the short-term benefit that lower wages might bring. The “stickiness” of wages, in turn, helps explain why unemployment can persist and why government intervention in the market can help lessen it.

Yellen has emphasized in recent years the devastating and prolonged effects of the recession on workers — and the need for the central bank to take aggressive action to combat the high jobless rate.

All of which suggests Yellin will look at UE figures long before she looks at inflation figures. Which is just what critics charge.
She will not be the strong independent voice the Fed needs. She will be another left wing Obama moonbat pouring dollars into a faltering economy until we look like the fucking Weimar Republic.

 

[KissMy]

All of which suggests Yellin will look at UE figures long before she looks at inflation figures. Which is just what critics charge.
She will not be the strong independent voice the Fed needs. She will be another left wing Obama moonbat pouring dollars into a faltering economy until we look like the fucking Weimar Republic.

Yeah - That is why gold has been going down since her announcement.

 

[editec]

I agree.

Another thousand years. Tops

Yeah, no. We'll be lucky to make into 2020.

We've lived under the Fed for over 100 years. We've lived without an effective gold standard for 75. What is going to happen in 7 years?

Minor correction...the international balance of trade GOLD STANDARD was shut down in 1972 by NIXXON.

FDR took US circulating currency off the gold standard, but the Brent Woods agreement (agreed to in '42 then went into effect after the war) WAS the GOLD STANDARD until 72.

Yes, this detail is extremely important if you want to understand international macroeconomics.

Money floats, folks and its ALL FIAT now, too.

 

[editec]

Once Roosevelt closed the gold window we were effectively off the gold standard. Go read Friedman's book Money Mischief for a good account of the bimetallic system we originally had, the british version of real gold standard, and the ersatz standard that came around after the Civil War.
Life was hardly ideal under a gold standard either. Farmers were starved for cash,thus the push for free silver in the late 19th century.
That we have had inflation since 1971 is not news. Nor does it support your contention that this system wil not make it another 7 years.

Farmers were starved for cash because the govt. decided to quit minting silver. Their main unit of exchange. So again, it was government involvement in monetary policy that created that problem.

I'm fully aware and well versed in the history of money, banking and monetary policy in the US. And again, I didn't say we wouldn't make it into 2020, I said we'll be lucky. I stand by that statement.

Negative yeilds on 10 yr. maturities, 96% of purchasing power destroyed, interest rates will HAVE to go up, although it's going to obviously be forced...which will cause another bubble burst with a central bank now completely out of ammo...and a mountain of unrepayable debt.

It's not sustainable. You're welcome to feel differently about that, but in the world of mathematics, I'd call calamity in the US dollar inevitable.

WE WILL have a calamity the moment it suits the interests of the MONEY MASTERS and not before.*

SEriously boys, the market you believe is going to finally take retribution against this FIAT SPECIE system is run by the very people who control the ANGLO-AMERICAN BANKSTERS' cabal.


*(we had the calamity, remember? It occurred in 2007...and the banksters snuffed the market response like it didn't exist...because in many ways the market no longer exists in reality. The FED AND TREASURY invested trillions to save them. The market cannot compete with that much fantasy cash!)

How can "the MARKET" compete with a CABAL of banksters than not only control the money supply but also the governments that can force people to use their worthless currencies.

This meltdown you speak of will (that I agree incidently ...it will happen eventually) be as contrived (and controlled) as the US Dollar already is, lads.

 

[The Rabbi]

All of which suggests Yellin will look at UE figures long before she looks at inflation figures. Which is just what critics charge.
She will not be the strong independent voice the Fed needs. She will be another left wing Obama moonbat pouring dollars into a faltering economy until we look like the fucking Weimar Republic.

Yeah - That is why gold has been going down since her announcement.

You really think the price movement of gold over, what, 2 days is indicative of anything??

 

[TakeAStepBack]

Money masters my ass. If there is one thing that has been proven over and over and over again ALL throughout history it is this; No human, no group of humans can successfully centrally plan the ecohnomy for everyone. It's a miserable failure every time. And this instance is no different in the long history of central planning.

There will be calamity because central planning doesn't work and absolutely 100% of the time leads to failure. Failure on scales that make hot wars look like a sandbox game.

 

[Claudette]

the market should like that...now if we can get rid of shutdown and the debt limit we could go to the mooooon!!!!


Janet Yellen to be named Fed chair on Wednesday: White House

Feel sorry for her as she will probably be at the helm when they stop pumping all that unbacked moola into the economy.

Bernake will be retired and living the good life.

 

[TakeAStepBack]

the market should like that...now if we can get rid of shutdown and the debt limit we could go to the mooooon!!!!


Janet Yellen to be named Fed chair on Wednesday: White House

Feel sorry for her as she will probably be at the helm when they stop pumping all that unbacked moola into the economy.

Bernake will be retired and living the good life.

The federal reserve never gets the blame for its messes anyway. only the credit and pat on the back when they attempt to clean them up.

 

[KissMy]

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