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.  Read the rest of this entry »