When the Fed’s dual mandate includes price stability, you would think that a firm understanding of inflation would be one of the only prerequisites to become Fed chair.
Are we totally sure Yellen is clueless? The ruling elite knows full well what they are doing. They just play "dumb" to keep the rubes in line. The Federal Reserve's REAL mandate is, as a banking cartel, to wring out as much profit as possible from the interest on the debt issued to everyone from people to corporations, to entire countries. The Federal Reserve's monetary policy is very short term as they, as you have pointed out, have very little tools in their toolkit to really make a difference. It's all about profit and power. Having said all of this, Yellen has done remarkably well and that is why she has been brought back to the table. She understands inflation all too well and is well aware where it is leading us as a country. But, she gets a nice paycheck and a few homes here and there. Life is good...why mess it up by telling the truth? Far easier to play "dumb."
They love to throw the word "data" around. "As the data comes in..." (As if they can do anything useful with it when they have no historical data to use for back-testing their models.) They say their decisions are "data-driven," get that data from the Executive branch, and then claim to be "independent."
With 1/4 of the CPI being a farcical quesstimate (owners equivalent of rent of residence), the CPI badly understates inflation. And since inflation is the "deflator" when calculating GDP, if you understate inflation you overstate growth...
They don't anticipate a recession??? Hell. we're already in one. If they understood inflation and measured it correctly they'd know that.
But don't get me wrong, it must have been fun waxing eloquent when you know your job is to just keep reducing rates and spiking the punch bowl with years and years of runway to do that.
Today the job is much different to say the least...
1) When…? Never. The American populace wants this system of Keynesian acolytes spoon feeding cricket paste to them. We’ve proven we like it and want more. The difference with Volcker was that he led and had a sense of responsibility. But don’t forget…as a thanks for his diligence, he received 2x4’s with FUs written on them in the mail and death threats. He only reason the Reagan administration stuck with him was because they had sense the alternative was so much worse (and no one had found Paulson’s bazooka yet…).
2) RE: These People. I think they are sincere in their efforts. They sincerely think their job is to press buttons, watch dials, and make grandiose announcements. They sincerely think have a economic wisdom that means every pronouncement or conjecture is from a font of wisdom unassailable by any objective measure….and they also sincerely think they have zero responsibility for the outcome of their policies. I think Bernanke and Powell have at least some sense of responsibility, which is why, as Chris has pointed out, J Powell spends that Saturday night with a big bourbon in his hand, petting his dog’s head and whispering “at least you still love me, don’t you boy?”.
Janet Yellen, like many of her predecessors, is a member of the globalist Council on Foreign Relations (CFR) established by the financier oligarchs of New York and London a century ago. As in previous administrations, most of the key players on the "Biden team" are CFR members, including the secretaries of State, Treasury, Defense, Commerce and 'Homeland Security'. Also the CIA director, Fed chairman, UN ambassador, and dozens more.
Billionaire Larry Fink (BlackRock) is a CFR director, and billionaire David Rubenstein (Carlyle) is the CFR chairman. Both are trustees at the Davos WEF. Fed chair Jerome Powell is a former Carlyle partner, and vice-chair Lael Brainard is a fellow CFR member.
Are we totally sure Yellen is clueless? The ruling elite knows full well what they are doing. They just play "dumb" to keep the rubes in line. The Federal Reserve's REAL mandate is, as a banking cartel, to wring out as much profit as possible from the interest on the debt issued to everyone from people to corporations, to entire countries. The Federal Reserve's monetary policy is very short term as they, as you have pointed out, have very little tools in their toolkit to really make a difference. It's all about profit and power. Having said all of this, Yellen has done remarkably well and that is why she has been brought back to the table. She understands inflation all too well and is well aware where it is leading us as a country. But, she gets a nice paycheck and a few homes here and there. Life is good...why mess it up by telling the truth? Far easier to play "dumb."
They love to throw the word "data" around. "As the data comes in..." (As if they can do anything useful with it when they have no historical data to use for back-testing their models.) They say their decisions are "data-driven," get that data from the Executive branch, and then claim to be "independent."
With 1/4 of the CPI being a farcical quesstimate (owners equivalent of rent of residence), the CPI badly understates inflation. And since inflation is the "deflator" when calculating GDP, if you understate inflation you overstate growth...
They don't anticipate a recession??? Hell. we're already in one. If they understood inflation and measured it correctly they'd know that.
I miss the days of Greenspan, the Maestro.
But don't get me wrong, it must have been fun waxing eloquent when you know your job is to just keep reducing rates and spiking the punch bowl with years and years of runway to do that.
Today the job is much different to say the least...
1) When…? Never. The American populace wants this system of Keynesian acolytes spoon feeding cricket paste to them. We’ve proven we like it and want more. The difference with Volcker was that he led and had a sense of responsibility. But don’t forget…as a thanks for his diligence, he received 2x4’s with FUs written on them in the mail and death threats. He only reason the Reagan administration stuck with him was because they had sense the alternative was so much worse (and no one had found Paulson’s bazooka yet…).
2) RE: These People. I think they are sincere in their efforts. They sincerely think their job is to press buttons, watch dials, and make grandiose announcements. They sincerely think have a economic wisdom that means every pronouncement or conjecture is from a font of wisdom unassailable by any objective measure….and they also sincerely think they have zero responsibility for the outcome of their policies. I think Bernanke and Powell have at least some sense of responsibility, which is why, as Chris has pointed out, J Powell spends that Saturday night with a big bourbon in his hand, petting his dog’s head and whispering “at least you still love me, don’t you boy?”.
Janet Yellen, like many of her predecessors, is a member of the globalist Council on Foreign Relations (CFR) established by the financier oligarchs of New York and London a century ago. As in previous administrations, most of the key players on the "Biden team" are CFR members, including the secretaries of State, Treasury, Defense, Commerce and 'Homeland Security'. Also the CIA director, Fed chairman, UN ambassador, and dozens more.
Billionaire Larry Fink (BlackRock) is a CFR director, and billionaire David Rubenstein (Carlyle) is the CFR chairman. Both are trustees at the Davos WEF. Fed chair Jerome Powell is a former Carlyle partner, and vice-chair Lael Brainard is a fellow CFR member.
Is it ignorance, or is it by design destruction of the financial base of Middle Class?
Thanks Chris!
She isn’t dumb, but rather, she’s just acting dumb… as is Powell. Just look at his actions before & after Biden re-nominated him. Striking contrast.
Yellen’s still probably the less competent one, though.
"Yellen, during her tenure as Fed chair in 2017, said that she didn’t see another financial crisis “in our lifetimes”"
Thanks Janet, very cool! And what of those of us who will be around in 20 years?
Lies, lies, lies all the way up and down the "gummint." We The People need more leverage than so-called fair elections, which don't exist.