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Watch As David Einhorn Makes A Mockery Of One-Man Fed "Expert Network" Larry Meyer
One of the Fed's more arrogant former apparatchiks (of the "100% confidence" interval) Larry Meyer, currently at expert network Macroeconomic Advisors which is used by the likes of Pimco to get inside information on what the Fed will do at its upcoming meetings, appeared on CNBC earlier and attempted to school David Einhorn on "Economics 101." What ensued was yet another confirmation that these Ph.D's (a term we always use in the most pejorative, NC-17 context possible) who destroyed the world, have absolutely no idea what the hell they talk about, and make up bullshit scenarios on the fly. Luckily, it has gotten to a point where every incremental statement catches them in one lie or another. It has become grotesquely comic to watch their faces (as in Bernanke of 60 Minutes infamy) squirm as they realize that the end of the system they created and subsequently destroyed, is near.
A selection of Einhorn's questions:
- "Part of the issue with the deflation is companies improve the quality of their products, so last month the PPI went down because we had a new car year, and they sold you a better car for the same price. Now why is it the Federal feel like you need to have a policy response to auto companies making better cars and selling them to you at the same price? Why do we need to drive up the cost of energy, and food, and cotton, to offset that?"
- "I think if you drive up food and energy prices, which you don't count in the core PPI or CPI, I think if you don't count those things in the inflation, you may miss the inflation, and if people have to spend more money on food and energy, they have less money to buy other things, and that could prove to be a net reduction in economic activity..."
And while he is unable to respond to any of these (or other) all Meyer can do is assume the claim that easy monetary policy stimulates aggregate demand as factual, where Einhorn put the smackdown: "I think you can argue that, because we have gotten to the point where the transmission method [sic] is broken. You are trying to create a wealth effect which is another asset-based economy thing, it's very questionable whether higher stock prices cause lots of incremental demand, and you have the cost of food and energy which are real things that people have to pay for. And if you have to pay $3, $4 or $5 for gas, you have less money to go out to eat." Meyer's response once again: is nothing less than derisive laughter with no facts to support his claims whatsoever... except for falling back to Econ 101... which of course is not a science.
Lastly, Einhorn says: "I am worried about a bubble in corn and oil." The response - blame it all on China. "Commodity prices will go up but it's driven because Asia and China have adopted US monetary policy which is crazy for them. Absolutely crazy. And we can't do anything about that." And confirming our long-established theory that the Fed is doing nothing less than punishing the American people in order to get China to blink we hear the following from the entrenched demagogue: "That's no reason why we should keep interest rates higher, to benefit China and Asia, and prevent bubbles there, they have to do it themselves. Look in the mirror if you want to know whose problem this is."
So true: so let's create hyperinflation in the US, in the hope that Beijing will finally unpeg. It's official: the Fed is willing to sacrifice its people in order to win an intercontinental pissing match of a flawed and dying economic theory.
As for Larry, we are confident he will survive long after his entire life is proven to have been a hollow defense of a failed ideology: after all he is one of those "fly on the wall" Fed consultants who gets paid by the PIMCOs of the world to leak inside monetary information to the highest bidder. We would love to know: now that the Gerson Lehrman model is over, when will the true leak of critical inside information: companies such as Macroeconomic Advisors finally see either a subpoena by the AG or an FBI raid... After all what they do is identical to what all those other expert networks do day in and out. Only this time the stakes are that much higher (and the pool of beneficiaries that much, ahem Bill Gross, smaller).
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Optical illusion due to two-point perspective: camera in the middle of two flags about as far away as they are apart. Both flags flap away from the camera, in pretty much the same direction (as you would expect) but the camera picks up the inside of both flags... best I can do without drawing you a picture.
With the wind at your back as the operator, I'd say it's an incredibly wide-angle lens, or else the relative dimensions of the flags seem wrong. (Although who knows what the actual flag dimensions are.)
Fine if you're talking about a 10-15mm in 35mm equivalent...it's certainly nothing like normal human vision.
These days it doesn't matter. It's just as easy to stitch images from two different cameras together for background purposes.
If that Larry Meyer moron is the quality of the people we have guiding the ship of economics, then it looks as if we are doomed to fall of the edge of the flat earth.
To date, cheap money has caused commodities to go higher and any spillover from the wealth effect has gone to increase demand from China. How does making food and oil help the US create jobs. Higher prices decrease demand (duh).... and IMO it is not insane for China to preesrve their export economy.
It is insane for the US to believe that we can devalue the dollar sufficiently to make a difference, when we are supporting unproductive big government, parasitic banks and unproductive morons such as Larry.
Some day the well educated idiots will have to learn that their voodoo is simply B/S and the effect they are looking for is only a byproduct of the cause under certain circumstances (such as when we have a robust manufacturing sector and have an incentive to keep food and energy prices down.
We aren't doomed at all, they are.......
When the zombies awaken they'll eat these guys.
When Elmer Fudd can't buy his LED TV this Christmas look out
Larry Meyer is such a jerk.
David Einhorn asked good questions, but anyone with half a brain can see that Larry Meyer is giving answers from a playbook assembled by a bunch of master rationalizers at the FederalReserve (where rationalizer == liar).
What Meyer is sayin is the Fed has certain tools - see - and all it can do is exercise dem tools.
Fer instance - lets say you are a hot dog vendor. Da way youse makes the world better is by adding extra mustard - right? So - lets say we have an approaching tsunami or maybe an electrical outage - wots the hot dog vendor gonna do? eh? larry? Someone? Why ofcourse - add more mustard - what else is he gonna do? eh?
so alright already - lets say dat thew extra mustard had no effect on the devastang consequences of the tsunami. Eh - you wid me here - Iam talkin to ya. So whadya gonna do ? Blame da hot dog vendor for all dat ails ya? No. Hell he just be doing his yob- jus like hes sposed to.
Ok OK lookey here - all of us guys and gals peddling hot dogs, monetary policy and wot no - gots to stoick together see? Jus like in da good ol deys at princeton and hahvahd. Caint let the riff raff - truff us up eh? ya wid me? Im talkin to yooo.
So on anudder topic. Bennie doin heckuva job see. Dem choynaise tink dey want ta be in da hot tub wid us - well bennie boy just let off a big stinky one - now watch dem chaynoise -hehe.. dat'll teacem to git in out hot tub..hehehehe.
The final solution for these pricks is coming.
They just don't see it yet.
viz the derisive laughter: I am reminded of the trained chimpanzees (a metaphor) laughing at many who were suggesting on live tv that the housing bubble was going to pop. It is one of the signs of the (financial) apocalypse to follow a bubble, no?
Meyer: "If you want to know whose problem this is, look in a mirror."
Thanks for that insight Larry. We kinda figured……
RE: "It's official: the Fed is willing to sacrifice its people in order to win an intercontinental pissing match of a flawed and dying economic theory."
So true. Tried to explain all this to a knucklehead pal who works at a large non-US bank, and his response was, "Well, we will just export inflation to China if they want to stay pegged to the dollar!" So I say, "So we're going to douse ourselves in gas, and light ourselves on fire... And this will force China's hand because they might start sweating?" His response? Just shrugs his shoulders.
Unreal. Lots of otherwise bright individuals just don't get it.
C'mon guys, this is Economics 101. Is this clown serious? I doubt he made it past Economics 102.