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Guest Post: Bernanke Gains Clueless Backer In Kocherlakota
Submitted by Taylor Conant of Economic Policy Journal
Bernanke Gains Clueless Backer In Kocherlakota
The WSJ.com is out with a short profile on Minneapolis Fed president
Narayana Kocherlakota, pumping him up as a strong supporter of Ben "QE2'in' the recession away" Bernanke:
Narayana
Kocherlakota gets his first crack at voting at Federal Reserve policy
meetings later this month, and the wonky former academic said he is
likely to support the Fed's controversial $600 billion bond-buying
program.
"The bar for dissent from the committee
is going to be pretty high for me," Mr. Kocherlakota, 47 years old,
said in an extensive interview last week, his first with the national
media.
Translation: [in robot voice] "I can't think for myself."
And
what is this talk about "former academic"? Once a man climbs into that
Ivory Tower he never comes back down. For one, he doesn't need to
because this nation is WIRELESS now, he can transmit his "wonky"
thinking far and wide with very little effort. Also, despite the lack of
oxygen, it's actually much easier to breathe with ones head stuck
firmly in the clouds because there's a lot more moisture up there.
what is this talk about "former academic"? Once a man climbs into that
Ivory Tower he never comes back down. For one, he doesn't need to
because this nation is WIRELESS now, he can transmit his "wonky"
thinking far and wide with very little effort. Also, despite the lack of
oxygen, it's actually much easier to breathe with ones head stuck
firmly in the clouds because there's a lot more moisture up there.
These
guys are like gang members, once an academic, always an academic, until
the day your policies are adopted by the leading political party and
they quickly lead to mass social upheaval and economic turmoil. But even
then, only if you belong to the "Right" will you be so disgraced and
your academic street cred withdrawn. Lefties are free to rep themselves
as hardcore academics all they want, no matter how bad they screw things
up.
guys are like gang members, once an academic, always an academic, until
the day your policies are adopted by the leading political party and
they quickly lead to mass social upheaval and economic turmoil. But even
then, only if you belong to the "Right" will you be so disgraced and
your academic street cred withdrawn. Lefties are free to rep themselves
as hardcore academics all they want, no matter how bad they screw things
up.
The question of a formal dissent is important
given the divisions inside the Fed that emerged as it launched the bond
buying in November. Dissent would make it harder for Fed Chairman Ben
Bernanke to stick to the program or to expand it if the economy weakens
anew.
Unless you're Ben Bernanke, or Hank Paulson. Then you
just spook dissenters with end-of-the-world rhetoric if you don't get
your way. Or baseball bats.
Caption: Ben Bernanke, up to bat.
Could Kocherlakota get kookier? Sure he could!
Mr.
Kocherlakota has come out of his shell slowly since succeeding Gary
Stern at the Minneapolis Fed in October 2009. He maintains a strong
interest in research, regularly attending Minneapolis Fed seminars
conducted jointly with the University of Minnesota, in a research
department conference room that the local PhDs call their "inner
sanctum."
Great, an FOMC chairperson with a taste
for divine-right monetary policy. Man, hanging around in a research
alcove with nerdy local monks discussing the finer points of
interpreting the entrails of recently sacrificed goats, aka Fed
scientistic statistical "research"-- this guy has really found a way to
come out of his shell.
for divine-right monetary policy. Man, hanging around in a research
alcove with nerdy local monks discussing the finer points of
interpreting the entrails of recently sacrificed goats, aka Fed
scientistic statistical "research"-- this guy has really found a way to
come out of his shell.
Caption:
Kocherlakota gives an interview to the WSJ in front of the empty
bookshelf where he derives most of his great ideas via intense research.
When asked what genre he finds most influential for crafting monetary
policy, Kocherlakota replies, "Fiction, undoubtedly." (image courtesy of
WSJ.com)
Kocherlakota gives an interview to the WSJ in front of the empty
bookshelf where he derives most of his great ideas via intense research.
When asked what genre he finds most influential for crafting monetary
policy, Kocherlakota replies, "Fiction, undoubtedly." (image courtesy of
WSJ.com)
And what does Wall St think of Our Man in Minneapolis?
"He's
smart but relatively new to the practical aspects of reading the
economy and implementing monetary policy," said J.P. Morgan economist
Michael Feroli. "You can almost see his thinking evolve as he acquires
more on-the-job learning."
Does a witty joke even
need to be made in the case of a man with near-consular power over
monetary policy decisions who is learning on the job? "[pressing button
marked "INFLATION"] Ohh, whoops! That didn't work, let's try this
one..." And again we have reference to this occult divination
Kocherlakota and other Fed officials are known for in that he has yet to
prove his capabilities in "reading the economy."
need to be made in the case of a man with near-consular power over
monetary policy decisions who is learning on the job? "[pressing button
marked "INFLATION"] Ohh, whoops! That didn't work, let's try this
one..." And again we have reference to this occult divination
Kocherlakota and other Fed officials are known for in that he has yet to
prove his capabilities in "reading the economy."
Mr.
Kocherlakota was born in Baltimore to two statisticians; reared in
Winnipeg, Manitoba, and enrolled as an undergraduate at Princeton
University when he was 15 years old. When asked what it was like to go
to college at such a young age, the theorist responded that "it's hard
to do the counterfactual."
Indeed, it is, Mr.
Kocherlakota. Yet, somehow, this difficulty hasn't prevented you or the
other Fed braniacs from insisting the economy would've been far worse in
the long run without your wise and timely interventions in the market.
No doubt the soothsaying that preceded it all was even more challenging.
Kocherlakota. Yet, somehow, this difficulty hasn't prevented you or the
other Fed braniacs from insisting the economy would've been far worse in
the long run without your wise and timely interventions in the market.
No doubt the soothsaying that preceded it all was even more challenging.
The son of two statisticians... I almost feel sorry for him, the poor boy never had a chance.
His
assertion in August that the nation's unemployment problem might be at
least partly immune to Fed action drew fire from Paul Krugman, the New
York Times columnist and Princeton economist."The Fed does not
have a means to transform construction workers into manufacturing
workers," Mr. Kocherlakota said. Mr. Krugman assailed the argument as a
flawed excuse not to act.
Finally, the man demonstrates
some aspect of a winning personality! Not only did Kocherlakota manage
to piss off the world's preeminent politician masquerading as a
thoughtful economist with mass appeal, Paul Krugman, but he accidentally
stumbled upon Austrian economic theory in so doing by verbalizing the
truth that labor is not merely the letter L in some aggregate equation
but in fact consists of specific individuals with specific skills and
talents, a manifestation of the division of labor which Fed monetary
policy is powerless to do anything about.
some aspect of a winning personality! Not only did Kocherlakota manage
to piss off the world's preeminent politician masquerading as a
thoughtful economist with mass appeal, Paul Krugman, but he accidentally
stumbled upon Austrian economic theory in so doing by verbalizing the
truth that labor is not merely the letter L in some aggregate equation
but in fact consists of specific individuals with specific skills and
talents, a manifestation of the division of labor which Fed monetary
policy is powerless to do anything about.
In some
places and sectors, he said, that could mean upward wage and inflation
pressure, even with high unemployment rates nationally. An unemployment
rate somewhere between 6.5% and 8% could be inflationary in this
environment, he says. As unemployment starts moving toward that range,
he says, the Fed will need to start moving toward raising interest
rates.By the end of the year, he expects unemployment at 9% and
inflation at about 1.5%, up from today's 1%. He sees unemployment
staying above 8% through 2012, too.So action, using his
calculations, looks a long way off. But he says the links between
unemployment, inflation and the next tightening cycle could become a hot
topic by year end.
As always, Mr. Kocherlakota,
we'd love to see your calculations, and even better if they were subject
to our critical review prior to implementation.
we'd love to see your calculations, and even better if they were subject
to our critical review prior to implementation.
Bernanke
has lucked out. I can't think of a more feeble-minded person suitable
for the glorious role of Human Footstool To The Great Fed Chairman. For a
man who likes geeking out with PhD students in the inner sanctum,
however, getting down on hands and knees for "the most powerful nerd on the planet" will likely be quite the honor.
has lucked out. I can't think of a more feeble-minded person suitable
for the glorious role of Human Footstool To The Great Fed Chairman. For a
man who likes geeking out with PhD students in the inner sanctum,
however, getting down on hands and knees for "the most powerful nerd on the planet" will likely be quite the honor.
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Well, yeah.
Competition for grants is fierce. These days researchers tend to tell the grant givers what they want to hear.
http://www.youtube.com/watch?v=U06jlgpMtQs
Really? People will say what others want to hear for money?
http://www.logicalscience.com/skeptics/patMichaels.html
Yep.
I'll counter your guy with: Michael Mann, who despite being caught falsifying data, is still a respected faculty member at Penn St.
Did anyone get fired over Climategate? Real, ethical scientists are the ones under fire. That kind of shows entire universities will bend over for the Lords of the Grants. The same people who would like to bring you Cap and Trade.
Hide the Decline, bitches.
'Narayana Kosher Lakota'?
What is he? Indian? Jewish? Native American?
Or some kind of parts-bin synthesis that Dr. Bernankenstein cooked up in his Princeton laboratory?
+1
my, my, Mr. Conant does wield that dissection scalpel most deftly and admirably.
Or a turn on depending on his sexual orientation..
another stupid UNLELECTED asshole who knows nothing
never worked in private sector BUT THINKS HE KNOWS LOT MORE
THEN AVERAGE HARD WORKING GUY ON STREET
god bless AMerica.. when does it stop/end?
alx
He entered Princeton University at age 15 and graduated four years later with an A.B. in Mathematics in 1983. He earned a Ph.D. in economics from the University of Chicago in 1987.
Not only sounds like he has no time in business, but no time in life. Probably not a rebel.
Wow! Those Indians are showing up everywhere. Omama has them over-represented in his 'Cabinet".
So strange.
Narayana, just for information sake, is the name of the all powerful creator god in the Hindu Trilogy.
I suppose he will go along with the "fiat creationist" agenda currently underway at the FED.
ORI
http://aadivaahan.wordpress.com/2010/06/30/snake-eyes/
DR. Phil Gramm?
(slightly OT)
I can't stand career academics, especially economists. I had three courses in economics during my graduate program, and all of them (surprise, surprise) were die hard Keynesians. The government line was to be repeated, hell or high water.
I remember asking one of my professors why he recommended printing more money to counteract the negative effects of a devalued currency (which, in error, he recommended as a solution for repaying foreign debt). He thought for a second, then said he didn't understand the question. I then asked him what he would do if he were in a hole - would he stop digging....or would he dig some more? The analogy was lost on him. I got a B in the class which, in grad school, might as well be an F.
So you were smart enough to outsmart your professor, but not smart enough to outsmart your professor. Got it.
I called out the dean of my department at a convention after he had made a fallicious argument. This was in the first month into my Masters degree.
Yea... Sometimes a person should learn to keep their opinions to themselves.
Ha! Well that's one way to look at it, if you think grades are everything.
Thanks for humbling me.
...and these professors have tenure thanks to student loans, massive private tuition and state university funding. Therefore, they're not going anywhere soon. Goddamn Keynesian trash, they force-feed that shit to retarded college kids.
F'n Brilliant, Taylor! Some of your best work yet, sir. I tip my hat.
cdad
I''d rather have the E-Trade Baby running the YouBetcha Fed. At least he's had some experience trading.
Also prints.
at least this kosher clown has a name that reflects it.
gang members indeed...
http://www.iamthewitness.com/
" "What advantages will we reap if science conquers all the world, except
the World Government."-(The Chicago Tribune, Jan . 24, 1924) .
*History proves, and the Jewish Encyclopaedia confirms it, that the so-
called "German, Russian, Polish and Eastern Jews" are Mongols, who accepted
the Jewish Talmud, which is not the creed given to Moses . The Talmud seems
more like the by-laws of a gang of murderers than a religion, yet it is strictly
followed by the so-called "Jews ."
Among others things the Talmud teaches : "The best Gentiles must be
destroyed," and similar commands . However, many politicians have the ef-
frontery to declare that this "religion" ought also to be "respected," while
it ought to be exposed in the Courts, as inciting to murder .
http://www.resist.com/SecretGovernment-Spiridovich.pdf
http://www.talmudunmasked.com/chapter15.htm
The worst pages of the Talmud are terrifying, it is true. The same is also true about the Bible and the Koran. That organized religion ('the churches') don't criticize the government or financial policies shows pretty clearly what their role in the whole debacle is, placate, confuse and misdirect people.
Check out our latest PsychoNews story: Signs of the Apocalypse
http://psychonews.site90.net
"While it is abundantly clear that all of the animal deaths could not have been caused by fireworks, the mainstream media has been slow to suggest alternative theories. Luckily PsychoNews has no qualms about filling the void! Lets be serious, these animal deaths are likely linked to the testing of military technology. The real question is whether chemical/biological weapons are being tested, or something more exotic, such as energy weapons..."
http://psychonews.site90.net
(Linking sure is fussy)
The worst pages of (the Bible) are terrifying...That...the churches...don't criticize the government or financial policies shows pretty clearly what their role in the whole debacle is, placate, confuse and misdirect people.
2 points real quick.
1. In the new testament it was taught first hand to render to the governing authorities the things that belong to them. No problem. FRNs / "honor" / etc. If it doesn't belong to them, don't render it.
2. While I agree many religious organizations have used the Annanias and Sapphira story to elicit contributions from their sheeple, the take away point should actually be that when these two yahoos sold their jubileed property, then attempted to falsify records, they paid for their deceit with their lives.
imo
Another made member of the Princeton Mob. Narayana "Narie Walnuts" Kocherlakota had to have been "sponsored" by Don Benny "The Printer" Bernanke, Capo di tutti Capi of the Federal Reserve Syndicate.
Thomas Sowell, "Universities are where academics are safe to come up with theories all day long and never have to actually prove any of them they work."
Poster children: "The Fed does not have a means to transform construction workers into manufacturing workers," Mr. Kocherlakota said. Mr. Krugman assailed the argument as a flawed excuse not to act.
All sides can be wrong. Especially all MONETARIST sides.
Keynesians are in charge now
Austrians want to be in charge later
Both are monetary fools (monetarism..IS anti-american...look it up....the constitution.)
I guess there's a new (to the public) fed fool in town they are trying to gain positive bias towards?