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Those Soaring Food And Gas Prices? The Fed Has A Name For Them: "Noise"
Don't worry about the surging food and gas prices you face each and every day... Janet Yellen says "it's just noise" and is actually "evolving exactly as they expected." It is this kind of mind-blowingly ignorant of the facts statement that has the central banks of the world losing more and more credibility (just take a look at the dot plot's 0.5 to 4.25% rate expectations for 2015). The following exchange between Yellen and Liesman is simply priceless in its ignorance.
This looks like a trend to us...
But no - The Fed says its transitory and exactly what they expected...
LIESMAN:
There's every reason to expect, Madam Chair, that the PCE inflation rate, which is followed by the Fed, looks likely to exceed your 2016 consensus forecast next week. Does this suggest that the Federal Reserve is behind the curve on inflation? And what tolerance is there for higher inflation at the Federal Reserve? And if it's above the 2 percent target, then how is that not kind of blowing through a target the same way you blew through the 6.5 percent unemployment target, in that they become these soft targets? Thanks.
YELLEN:
So I think recent readings on, for example, the CPI index have been a bit on the high side, but I think it's -- the data that we're seeing is noisy. [ZH: What noise?]
I think it's important to remember that, broadly speaking, inflation is evolving in line with the committee's expectations.
The committee has expected a gradual return in inflation toward its 2 percent objective. [ZH - It's already there!!!!!] And I think the recent evidence we have seen, abstracting from the noise, suggests that we are moving back gradually over time toward our 2 percent objective and I see things roughly in line with where we expected inflation to be.
I think if you look at the SEP projections that were submitted this time, you see very little change in inflation projections of the committee. [ZH: Because you are all ignorant!!]
Still believe The Fed has inflation all under control?
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same asset as always, measured against a devaluated/inflated currency.
Yet the Baltic Dry Index is at a one year low ($858), it has not been loewr before then, but not much:
http://stockcharts.com/h-sc/ui?s=%24bdi
(stockcharts.com, enter symbol $BDI)
. "...how is that not kind of blowing through a target the same way you blew through the 6.5 percent unemployment target, in that they become these soft targets?"
Steve Liesman is such a joke. The Fed knows, but will not state, that the 6.5% unemployment number is an illusion.
Let's all stop working and looking for work so we can achieve a 0.00% unemployment rate.
You commented before I could clean up my typos! BDI at stockcharts.com HAS been lower than $858, but that was way back when...
Sorry DoChen. You have to be quick around here.
It's a catch22, no matter whether due to fed action or inaction these trends will remain. Fed action does manage to hide ugly realities about US economy though.
I cannot afford any more of this noise!!!
Bleed you dry
Against your will
Think you're running
But you're standing still
It's all you wanna do now
Yeah Yeah
It's all you wanna do now
Stop the noise!
You gotta stop the noise, man!
Only in America
Zeromancer - Stop The Noise Lyrics | MetroLyrics
http://www.youtube.com/watch?v=k-qJDGl_vms
LOL yep just NOISE
Just like the gurgling stomach sounds of the millions who can't afford to buy as much food here and abroad due to USA fed inflation LOL
If they say they are hungry tell them its 'Just Noise' coming from their stomachs....
I would say that all factors OTHER than food and gas are "noise".
Here in Cal, shopping at Whole Foods Market, in recent years, my sense of the rate of inflation of food prices is upward of twenty percent per year.
madam comrade...did you say "the committee"?
We have now added sand to the inflationary index. We do not view the large amount of sand in the world and low demand is an issue.
After performing detailed analyses we have noticed the cost of sand is dramtically decreasing so we have reduced the average inflation rate accordingly and find the new overall inflation rate is -2% so we are actually in a deflation situation.
Double Post. My Bad
It has dawned on me that if we can have negative interest rates, it's possible that negative unemployment rate is not far behind.
"Because taking current trends across all employment indicators, using 12 Month trailing averages in the changes of those employed, unemployed and dropping out the labor force, we can predict, with IMF-level precision, that at the current surge of those leaving the labor force, the US unemployment rate will hit 0.0% in December of 2021 and finally go negative, or -0.1% in January 2022."
http://www.zerohedge.com/news/america-will-have-negative-unemployment-ja...
to be expected from a report who's name is "Lies-man"....
_________________
Figures dont lie - BUT professional liars sure can figure
Fear not, when it goes up, even a few percentage point, or even if / when it breaks 1000 again, it will be heralded as how the economy is on the mend, and all is well.
When it replays the fate of the Titanic, Empress of Ireland, Britannic, and Lusitania, there is NEVER a peep from the media, or if there is, the media will insist that it is an obsolete metric and should be ignored.
Fuck you bitch!
really....
are you sure you really want to express those exact sentiments
to her?
what else would you expect from people who don't have to pay for their own food and gas?
people who don't own stock (i.e. most of america) call the stock market "noise". granted, that's only the people who are paying attention, which is admittedly few....but nevertheless...
All of this noise is making me hungry.
wait for the edible i-pads. they'll be released soon...and probably cost less than a steak.
I think the noise is coming from your STOMACH, hahah just wait and see how much less you will be able to buy for it with inflation...
Here, eat my iPad
just like the "bumps in the road" in benghazi
It's the Federal Reserve equivalent of "nothing to see here, move along."
What are they measuring to get 2%?
Their own judgement, which is always wrong, but never in doubt.
They go to the supermarket, check the price of meat, and mark it down 18 percentage points.
BAM 2% inflation!
the size of bernake's dick in relation to 1 inch?
They use the PCE deflator, which is running about 1.5%.
as long as the price of Geviltefish is the same at Fairway Mkt on the upper west side, it's all good you dumb goys, and god forbid it goes up, I can still afford it....
Now we know what's inside that bloated head of her's - NUTHIN'
Jammit Mellon - Fed Chair-Woman?
Is she Druish?
2%? WTF?
Its a lot higher than that Mr Yellin.
Just ignore discretionary things like gas and food, and then it snaps right back under.
Dont forget cable, taxes, tuition and long list of other things that are steadily going UP.
It's all discretionary...as in, it's up to the discretion of whomever is telling you the inflation rate, whethere or not to actually present the inflation rate to you.
Cable? did someone say CABLE? Cable = ZH. Better classify it with food & energy.
I'm now raising my service rates to my clients every 6 months, they aren't happy about it. I refuse to be left behind if I can avoid it. It's do or die.
Everything is going up, these fuckers.
Still believe The Fed has inflation all under control?
Well, no, but then again, I never really did.
no inflation in the price of gold...fer sure...
Not yet...
now thats an ironic fact.
fed owners to banks: "buy everything you can with zirp, except gold, let china have all that."
That "noise" is the middle-class screaming that they are being wiped out.
Oy oy oy
but ve hab terroists running loose all over the middle east oy oy oy
de middle class vill hab to wait
they may be screaming but major league baseball and the kardashians keep drowning them out.
when the fed says inflation they mean wage inflation
exactly right, and the fed is correct about that, and it's why as long as prices of necessities keep going up without wages going up as well we will continue to have deflationary pressures in the economy.
Why have a job? You can just work for AmericanExpress, buying stuff. That would surely be inflationary.
Yep, truly the only number they look at. When slave, I mean, labor costs inch up a fraction of a hundredth of a percentage point, interest rates will spike. Slaves are not allowed to participate in the spoils of the command economy
More than that, it's really Bi-flation. Wage and Asset Deflation for the masses, is offset by Price Inflation for staples for the masses. Massage the numbers, and you magically get the Fed 2% target inflation. But it gets better. Since Inflation is under control, then the Fed sees all the elite wealth creation and banker bonuses as not adding to Wage Inflation. This just re-inforces their sick sociopathic view of the world and makes them double down on their own destructive policy.
Actually, you're probably right. If wages don't go up, then people's overall expenditures don't go up. Say you make $50k a year. If you never get a raise, inflation is zero. Now, you may have to pay a lot more for food, gas, heating oil, etc... but you'll have to eliminate vacations, house repairs, braces for the kids, right. So, if the FED were to take all of your expenses and put it into the Sausage-a-matic, it would say that some costs went up and some went down, but overall it stayed the same. Hence, no inflation.
The FED says we don't have inflation. Buy I'd say we have a shit load of LivingStandardDepreciation. And to me, that's the same fucking thing.
Inflation is ever present in a fiat currency: even at wage and price parity, and zero interest rates, there need be an expansion of the supply of currency because even if you insist on zero or negative rates, the very act of working the printing press naturally creates a new debt, a new hole, a new gap between what is produced and what is spent (energy, materials, labor, etc) that needs papering over. Nevermind population growth or shrinkage, which creates incalculable fluctuations. This is the ever-tail-chasing slow-motion-exploding dog in the currency room.
Maybe the Fed is just delusional enough to believe it can print water droplets and end the drought in California and areas of Texas and other areas in the Southwest etc....
FedFUBARtoHELL.
I'd love to send them some of our rain. 8.5 inches so far this week and more to come.
Thanx, appreciate that. We could sure use it.
Methinks that these BANKERS are safe and won't face the hangman's noose.
Well....
When enough men have lost their families to starvation, no jobs to be had and lack of medicine, then things will get really interesting.
The Arab Spring had nothing to do with democracy and EVERYTHING to do with starving families. It is a man's honor (which NONE of these bankers have) to provide for his family, the job is only the vehicle that provides this ability.
Bankers! The modern day pirate!
BLOODSUCKERS
"The Attack of the Red Shield Tribe"
In Technocolor!
TAKE AWAY THE TWINKIES!
Actually, what should be shocking is how mind blowingly ignorant the American people are to the fact that these two crooks can sit there and discuss exactly how much of the people's money they are going to steal. I can't blame a psychopath for being a psychopath. After all, they don't know any better. What I can blame is the crowd for standing around and stupidly blinking while these loonies talk about how well their criminal behavior is progressing
Why mind blowing? Outside ZH, are you encountering conversation on the ongoing theft in the general public. I know I'm not.
That's my point. You have something so fundamentally significant to people's live like their money and how it works and people are ignorant about it. You would think something that people depend upon would be better understood. Especially with all the information out there on the web
10mm it is getting better ...slowly
That noise you heard was oil production smacking its head on the ceiling...
This plot sums it up better than most, based on the 2014 BP Energy Review Data just out:
http://peakoilbarrel.com/wp-content/uploads/2014/06/Slide221.jpg
NGL are primary feedstock for petrochemicals and plastics...
inflate all you want. if fewer and fewer are buying, this won't end pretty
wonder how those holding tanks full of oil/gas/diesel/etc are doing? hope their isn't a spoil date on them.
1. Noise is always a question of dB. Pump up the volume!
2. Make her squeal! Squeal like a... Miss Piggy.
To the 1% it is just noise, for the rest of us...
Sometimes I think they actually believe their own bullshit. I think they say it over and over, and blather on about it do everyone that will listen, and after a while they actually start believing it.
It got to Hitler. He believed so strongly in the Secret Weapons that he thought he could win the war.
I disagree, they know exactly what they are doing! The longer they keep this turd in the punch bowl market, even more sheep will start believing that nobody could have seen the collosal collapse.
I guess it is over when the shoeshine bot starts advertising fractional reserve banking infomercials
And that Noise is getting louder and louder and louder ....
So when you are eating a bowl of 'Ol Roy sprinkled with hampster turds, pretending it's rasin bran...Remember it's just noise.
Jack Yellen another completely out of touch fugly CUNT!
Noise? Is that like the wooshing sound of air passing through both of your ears you fucking dried up cunt? Or the noise being suppressed via SNAP cards? Inquiring minds want to know.
"Oh, SNAP! Mah EBT jus broke Tyrone!"
Les' Riot!"
Some of that noise is me dropping the f bomb every time I get groceries, after realizing the price of XXX has gone up whilst the amount has gone down.
What pisses me off even worse is most of the bleating sheep don't even realize this is happening.
Someone should create a guillotine drone. Just imagine the airtime it would get
They're going to have to remake "Brother can ya spare a dime" as "Brother can ya spare a hundy"
Wow.
This is LOWflation from LOW iq REEEEEEETARDS.
Willing to bet Ms. Yellen does not have an Albertson's card.
Albertson's doesn't use cards any longer. This is a trick.
As the prices keep their the Fed's noose, not noise.
Tighter once out out of control.
It is worth repeating Santelli's question - "If things are so rosy, then why don't we end QE now."
On item I buy a lot has just shot up 25% overnight!
This is a total no-brainer. From where the Talking Heads stand, food and gas prices ARE in the noise. The poorest among them probably makes at least $200,000.00/yr.. For the rest of us poor saps struggling to get by on a tenth of that, f&g make up a significant percentage of our income.
The Talking Heads - Listening Wind
http://www.youtube.com/watch?v=HEluoeMLTCI
;-D
antonyms: silence
Disregard anything that goes counter to the actions of our masters at the FED for they are all knowing, all seeing and all powerful. Anything to the contrary is therefore, by definition, just noise.
It is so much more refined to speak of "noise" rather than just adding hookers'nblow to the GDP fudge factor. Noise gets the data tortured into the politically correct confabulation the Fed believes we should believe.
Calamity Jane strikes again....
"We've determined that the Plebes with money are holding onto it with both hands, so we'll jack up food and fuel, extend our interest rate suppression plans and, once we're satisfied that the common folk are broke except for their meager 401k's, allow normalization of interest rates and equities to eradicate any capacity of the middle class to avoid debt slavery in perpetuity."
"Oh, did I just say that out loud?"
-Janet Yellen
Every sentence she begins with "So..." is a lie.
If the Secret Service test their new sarcasm detection sofware on zh it will burn up a few CPUs.
"Still believe The Fed has inflation all under control?"
With a global debt bubble of 100 trillion, it is deflation that they don't have under control.
Bubbles deflate.
Put interest rates up by 1% and the deficit climbs at least a trillion and you murder job growth. Boxed in are we? Just where is the U.S, Government going to get the tax revenue from in a basically low wage job economy? But if you print enough,you'd think that you'd get there eventually.But,is that working? NO!!!
Food, Energy, Metals, Healthcare, Insurance, Education, Taxes, Regulatry Fees ... all noise.
The only thing that matters to inflation is the cost of electronics... and soon, electronics costs will be increasing as well because China has significant inflation and the RMB will strengthen.
Then how will they slant the lie?
Would that be a good defence for the guy that blows her head off? It was just noise Judge Judy.Can I go to my mansion now?
It isn't ignorance-it's wilfull deception.
Noise is deafening right now.
I contend the primary reason that inflation has not raised its ugly head or become a major economic issue is because we are pouring such a large percentage of wealth into intangible products or goods. If faith drops in these intangible "promises" and money suddenly flows into tangible goods seeking a safe haven inflation will soar. Like many of those who study the economy I worry about the massive debt being accumulated by governments and the rate that central banks have expanded the money supply.
The timetable on which economic events unfold is often quite uneven and this supports the possibility of an inflation scenario. A key issue being one of timing. If the price of gas jumps to $8 a gallon overnight do you buy gas and not make your car payment or stop driving the twenty miles to work? Answer, it could be months before your car is repossessed so you buy gas.
It is important to remember that debts can go unpaid and promises be left unfilled. Is this possible and if so where would that leave us? Chaos and major disruption would result from such a scenario. As we have seen from the economic crisis of 2008 and following many other unsettling developments legal actions can continue to drag on for years. More in the article below.
http://brucewilds.blogspot.com/2014/04/inflation-seed-of-economic-chaos....