Posted on 12/18/2015 11:44:05 AM PST by blam
David Stockman
Tyler Durden
12/18/2015
There is going to be carnage in the casino, and the proof lies in the transcript of Janet Yellen’s press conference. She did not say one word about the real world; it was all about the hypothetical world embedded in the Fed’s tinker toy model of the US economy.
Yes, tinker toys are what kids used to play with back in the 1950s and 1960s, and that’s when Janet acquired her school-girl model of the nation’s economy.
But since that model is so frightfully primitive, mechanical, incomplete, stylized and obsolete, it tells almost nothing of relevance about where the markets and economy now stand; or what forces are driving them; or where they are headed in the period just ahead.
In fact, Yellen’s tinker toy model is so deficient as to confirm that she and her posse are essentially flying blind. That alone should give investors pause—-especially because Yellen confessed explicitly that “monetary policy is an exercise in forecastingâ€.
Accordingly, her answers were riddled with ritualistic reminders about all the dashboards, incoming data and economic system telemetry that the Fed is vigilantly monitoring. But all that minding of everybody else’s business is not a virtue—-its proof that Yellen is the ultimate Keynesian catechumen.
(snip)
In a global economy that is plunging into an epic deflationary contraction, Yellen & Co still embrace mythical and unmeasurable benchmarks for domestic full employment and other idealized performance targets.
(snip)
(Excerpt) Read more at zerohedge.com ...
"...Hide your kids, hide your wife, and hide your husbands 'cause they're raping everyone out there..."
Stockman has claimed the sky is falling for five years.
Well at some point, he’s likely to have a point.
Our national debt is now around 20 trillion, and has grown more during Obama’s terms, than during the entire rest of our national history.
And what have you seen in those five years? Unlimited prosperity? With more of the glorious same to come?
Almost sounds like that’s the Fed wants - have investors sell off investments without reason in order to generate more taxable income now.
You stole my response.
Every six months, Stockman says the economy is going to crash. Eventually he will be right as the economy will crash as it did in 1929, 1974, 1987 and 2008.
Interesting take... And totally believable. Got to churn that market to trigger taxable selling events.
Stockman is a hand wringer.
The only thing that is keeping the dollar alive is that every other currency in the world is in the toilet.
Then ignore the advice.
We suck less than everyone else.
I get David Stockman’s almost daily email newsletters. His information and knowledge are valuable. But, mygosh, every day he’s saying the end is tomorrow.
Yes, but that makes our trade balance even worse.
We are going to have to re-industrialize America at some point. I sure don’t think Obama will have a thing to do with that though.
He’s the worst yet.
A local neighbor told my Grandpa and Great Uncle that during the drought of 1980. ‘You guys have been saying that for so long, you were bound to be right eventually.’
For now I will hang on to the stocks and hang on to my real estate as both have treated me well in the long run.
Raise rates, continue QE and the central banksters and governments can buy up the markets and dial in the prices.
“We suck less than everyone else.”
Exactly. And until there is another currency that can compete and threaten the dollar as the Reserve Currency, the dollar will be the strongest in the world.
I don’t think that will be the case forever.
We are becoming very irresponsible. 20 trillion dollars in national debt, and that is growing now, rapidly.
We are lucky our currency is the world’s currency.
Darned lucky. I think. We need to fix our economy while that is still the case.
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