MCViewPoint

Opinion from a Libertarian ViewPoint

Yellen And The Feds Are Stumped

Posted by Martin C. Fox on February 25, 2016

2008 all over again for the same reasons caused by the same people.

As usual the Fed does not kinow what is happening nor what to do about it.  The difference now is that they are admitting it.  See Gerald Celente’s post here.

WASHINGTON — Federal Reserve officials threw up their hands in January, deciding that they could not decide whether market turmoil would impede domestic economic growth.

The Fed in recent years has issued an assessment of its economic outlook after each meeting… an official account, published on Wednesday after a standard three-week delay, makes clear that Fed officials simply did not know what to say.

“Most policy makers thought that the extent to which tighter conditions would persist and what that might imply for the outlook were unclear, and they therefore judged it was premature to alter appreciably their assessment of the medium-term economic outlook,” the meeting account said. (The New York Times, 18 February 2016).

Threw up their hands? Did not know what to say? Outlook unclear? Premature to judge even in medium-term economic outlook… let alone long-term?

Is the Federal Reserve stupid, or playing stupid?

David Stockman (Reagan’s budget manager) recently called Janet Yellen a simpleton.  That is hard to argue and obvious even to a non-economist such as myself.  Like some previous Fed chairs she is always waiting for information before committing but not to worry there are plenty of ‘tools’ in their toolbox.  There is only one tool, the printing press.

Little the Fed does helps anyone except Goldman Sachs and others of their ilk..  After months of hand-wringing and finally saying the economy is great in the face of plunging international markets, fake employment and inflation numbers she raises the bank interest rate by a fraction.  Not that it is all due to this one rate hike but it appears obvious even to Yellen that big trouble is fast approaching.

The Fed is nothing but a socialist central planning organization.  A very bad one.  Instead of a massive run of left foot only shoes we get recession fueled by massive infusions of cash.  Bubbles galore.  Most countries are guilty.  This is world wide Keynesianism.  When your life’s work is based on a failed philosophy I can see where it might be hard to admit the truth.

2008 all over again for the same reasons caused by the same people.

Be seeing you

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