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Academic Insanity Costs You 2% Of You Purchasing Power Per Year
Janet Yellen, who will likely be the next Fed Chairman, is insane.
There is simply no other way to describe someone who claims inflation is below 2% today and that the Fed’s monetary tools can improve employment.
Here are her comments on these subjects.
We have made good progress, but we have farther to go to regain the ground lost in the crisis and the recession. Unemployment is down from a peak of 10 percent, but at 7.3 percent in October, it is still too high, reflecting a labor market and economy performing far short of their potential. At the same time, inflation has been running below the Federal Reserve's goal of 2 percent and is expected to continue to do so for some time.
For these reasons, the Federal Reserve is using its monetary policy tools to promote a more robust recovery. A strong recovery will ultimately enable the Fed to reduce its monetary accommodation and reliance on unconventional policy tools such as asset purchases. I believe that supporting the recovery today is the surest path to returning to a more normal approach to monetary policy.
http://www.federalreserve.gov/newsevents/testimony/yellen20131114a.htm
First off, inflation is not below 2%. We’ve been over the fraudulent CPI data enough times for this claim alone to discredit Yellen as an economist. Even the former head of the BLS has stated that CPI is a joke and needs to be revised.
Secondarily, I fail to understand how inflation of 2% is acceptable. Why is this base assumption never challenged? At this rate, in 10 years you’ve lost roughly 20% of your purchasing power. And during the average worker’s lifetime, they will see a 40-60% decrease in purchasing power.
This is good?
Now let’s assess her claim that the Fed needs to continue its monetary policy tools to promote a robust recovery.
The official unemployment rate is highly charged politically as it is used by the media to gauge how well a particular administration is doing at generating job growth.
As such the unemployment numbers are routinely massaged to the point of no longer reflecting the true number of unemployed Americans. For this reason, I prefer to use the labor participation rate when gauging the health of the US jobs markets: this metric represents the number of Americans who are currently employed as a percentage of the total number of Americans of working age.
As you can see, the number of employed Americans of working age peaked in the late ‘90s. It has since fallen to levels not seen since the early ‘80s. Moreover, looking at this chart it is clear that job creation has failed to keep up with population growth.
This negates any claims of “recovery” in the jobs market.
In particular, I want to draw your attention to the last five years of this chart below. The US Federal Reserve began its first QE program, called QE 1, in November 2008. Since that time it has launched three other such programs, spending over $2 trillion in the process.
During this period, the labor participation rate has not once experience a sustained uptrend. Put another way, job creation has never outpaced population growth to the point of creating a significant turnaround in the jobs market. This has happened despite the recession officially “ending” in mid-2009.
The evidence here is clear. QE does not generate jobs in the broad economy. It failed for the UK, it failed for Japan. It’s failing here.
End of story.
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FED GOV would owe about $700 Billion more, per year, in interest payments if the FED RES wasn't suppressing rates. That's where the real savings come in.
This might be one of the easiest access points to the rabbit hole for the uninitiated. Any research on why 2% is the so-called target rate these days should lead one to the fact that our "money" is really debt and new debt needs to be created to pay the interest on the old debt (hence the aversion to deflation).
If a person can't then extrapolate where this cancerous system is headed and start to realign their priorities, they will have a Darwin Award reserved for them sometime in the not to distant future.
45 million Americans are now dependent on SNAP. That which cannot be sustained, won't be.
Please, the entire planet has been duped as global debt continues to increase exponentially.
Create all the credit from thin air that you want, the calories (energy) available for consumption by humans that are require to actually do anything (like survive) cannot be pulled from thin air and are not increasing.
Like mold in a petri dish, we are.
Even better LoP, we are burning those calories and destroying engines/catalytics to boot! And (as you know), where is the N coming from to fertilize this fuel?
http://en.wikipedia.org/wiki/Haber_process
We couldn't be dumber if we tried.
pods
The N2 comes from the Atmosphere; there's a lot of it. try not to worry about it. It's possible you actually couldn't be any dumber, but it's almost certain you could learn at least something about reality; give it a try, anyway.
CTRL-P <enter> you fucking cunt!!!
Meet the new boss. Same as the old boss.
Yellen is a moronic twit. Perfect to run the fed and the economy down the shit hole. Thanks Obombya.
she could be someone 's mother .....
They are keeping the balls juggling until the music ends. When criminal, one fights to steal until no longer possible.
Yup.