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 Yellenâs press conference. She did not say one word about the real world; it was all about the hypothetical world embedded in the Fedâs tinker toy model of the US economy.
Yes, tinker toys are what kids used to play with back in the 1950s and 1960s, and thatâs when Janet acquired her school-girl model of the nationâs 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, Yellenâs tinker toy model is so deficient as to confirm that she and her posse are essentially flying blind. That alone should give investors pauseâ-especially because Yellen confessed explicitly that âmonetary 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 elseâs business is not a virtueâ-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 ...
Dang! You weren't suppose to mention the helicopters.
That's just the money already borrowed and spent. It's not the whole story. It doesn't include legally mandated future expenditures on various income assistance programs (welfare), social security, medicare, and medicaid. That all supposedly adds up to $200 trillion.
All this over a quarter-point rate hike?
This knuckle headed nerd has been verbalizing the dubious Demonicrat doubting mantra, during and ever since he served as budget director in the Reagan Administration!!!
That's now a whole lot more than just "five years."
Yup....the gang on Wall Street is so spoiled by their easy money that it’s like trying to break a crack addiction.
Yes and every few weeks the Obama administration tells us how marvelously the economy is performing.
You’re on board with Obama apparently.
I think Stockman is a lot closer to the mark.
All of comrade obama’s so-called accomplishments are biodegradable. Exposed to enough light they’ll inevitably crumble to dust.
“We suck less than everyone else.”
Ding Ding Ding...we have a winner!
“We are lucky our currency is the worldâs currency.”
And exactly why do you think that is true? Having the worlds currency is a mixed bag of good and bad, and every other country hasn’t crashed and burned because they aren’t. As a matter of fact a strong dollar that is linked to commodities isn’t always a good thing.
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