This page has been archived and commenting is disabled.
Inside Janet Yellen's Brain At 4am...
Submitted by Bill Bonner via Bonner & Partners,
Poor Janet Yellen.
Usually, we reserve our pity for the poor, the downtrodden, and the hopeless. But today, we spare a thought for the clueless… and feel Yellen’s pain.
Markets are tense. Investors seem to be holding their breath.
Everyone is waiting to see what the Fed will do.
There must be hundreds of thousands – if not millions – of well-educated adults sitting on the edges of their seats… eager to hear what this rather ordinary functionary will say.
No Return to Sanity
Will Janet Yellen proudly put the Fed on the side of the angels, announcing that she and her crew have decided to move the Fed’s key interest rate to a more normal level… regardless of how much it costs the cronies?
Will she admit that the Fed’s ZIRP and its three QE programs have been failures? Or that they have shifted trillions of dollars toward the rich while leaving Main Street poorer?
Will she beg forgiveness for such errant policy decisions over such a long time and vow publicly never to interfere with the market again?
No, she won’t.
She will say the outlook is favorable – generally, clearing skies and fair weather is in the forecast. But there are some clouds forming out to the east that could lead to stormy weather.
So she will urge a cautious return to normalcy. She may be feeling confident and allow for a small rate increase… or she may be feeling fearful and decide to hold off for a while.
We don’t know. And it probably doesn’t matter much.
Permanent Emergency
Once you begin manipulating markets, it’s a hard habit to break.
First, investors come to look forward to it. Then businesses become hooked on it. And then you can’t stop even if you wanted to.
After nearly seven years of emergency financial policies, we are now in a permanent emergency.
But it is a phony emergency. Markets are supposed to go down as well as up. They’re supposed to correct their mistakes. They’resupposed to destroy malinvestment to make way for new capital formation.
It’s never been a real emergency; it was capitalism at work.
Poor Janet Yellen must not know what to think.
On the one hand, she is lauded as the most powerful woman in all history. Helen of Troy was a bit player by comparison. Cleopatra was merely the love interest in the battle between Julius Caesar and Mark Antony.
Susan B. Anthony? No one knows what she did… if anything.
But Janet – she has the entire world economy in her hand. She can squeeze it. She can bounce it on the floor. She can do what she wants with it.
On the other hand, there are the dark nights… when she must realize she is in way too deep.
She is supposed to do what no mortal can do. She is in charge of fixing – at least to the extent she is able – the most important price in a market economy: the price of credit. It must have occurred to her that she shouldn’t be fixing it at all. Only the gods know what the price of credit should be. She is just human. If she sets the price of credit, she is bound to err.
What’s going on? Has she been set up to take the fall for Greenspan and Bernanke?
But wait… in a fiat money system banks don’t lend out deposits… or even a fraction of deposits. Instead, with a few keystrokes, banks create money ex nihilo (out of nothing) when they lend.
Surely, the head of the central bank can decide at what price banks can rent out capital, no?
Janet Yellen’s Brain at 4 a.m.
If I raise the rate, just a little, I’ll probably be hailed as a sober, responsible economist. After all, it is unnatural for the federal funds rate to be so low for so long.
And those charts and graphs on my “dashboard”… they seem to be saying that things really are returning to normal. People have jobs. The economy is growing. Why worry?
Of course, I know perfectly well those charts are mostly garbage. All the data is so jigged and jived by the back-office boys, who knows what is really going on?
And here I’ve got Bill Dudley at the New York Fed, Goldman Sachs, and Larry Summers all telling me that natural market forces are already tightening credit conditions… without waiting for the Fed. And that if we raise rates now, we’ll just be making a bad situation worse.
Maybe they’re right. But those zero-bound rates must be causing distortions that we don’t know about. The junk bond market, for one. And the corporate bond market, in general. How were we to know those rascal corporate execs would borrow money at our low rates just to goose up their shares, via buybacks, so they could earn even fatter bonuses?
And now, stock prices depend on our ultra-low rates. That’s crazy. They must know we’ll raise rates sooner or later. Then the people who bought stocks at some of the highest valuations in history… like those gamblers at Goldman… they must realize that they’ll lose money.
I guess it’s almost our duty to teach them a lesson… But what if all these dumb-heads who’ve been gaming the Fed… betting that we’ll keep ZIRPing along for far longer than we probably should have… what if they panic?
What if we get a couple days of 1,000-point drops on the Dow? Won’t they all start pointing their fingers at me… claiming I caused the panic?
Of course, I did nothing of the sort. It’s not my fault they bought stocks at such high valuations. We were just trying to boost asset prices so the “wealth effect” would make Americans rush out and spend.
We have to raise the interest rate at some time, or the entire system will become unmoored… drifting to who knows where… and washing up on who-knows-what rocks.
But what if Larry is right? What if a rate increase makes credit conditions too tight? What if that provokes a sell-off in stocks… and sets in motion a chain of events such as those that led to the Great Depression?
Then stock markets plunge. The “wealth effect” turns negative. World trade collapses even further. Unemployment rises. And we end up in a new depression that lasts 10 years…
What if they say it’s my fault? What if they call it the Yellen Depression?
Oh, no... It’s not fair... It’s not fair... Boo-hoo... sob... sob... I should have stayed at Harvard. I’d have tenure. I’d have a nice pension. George and I could go the Martha’s Vineyard in the summer. It would be such a nice life.
»
- 14402 reads
- Printer-friendly version
- Send to friend
- advertisements -
Arrest her for Treason. End the Federal Reserve System. Swat team their asses and prosecute them all for treason. No more hocus pocus and witchery.
suck it Janet.
Whatever is in J-bitch Yellen's head is not good for the American People...its all about ensuring that the Jewish banker class are going to make a killing and continue to line their pockets.
Once again, as Mitch Feierstein says, “You cannot taper a Ponzi”.
Nice!
At 4 AM she probably wakes up and spins up the ole phonograph to play...........
"If I only had a brain" from the Wizard of Oz.
Manipulation work both ways.
Right now, more "money" can be stolen by crashing the markets. Then try and pump the markets back up with QE 4, 5, 6...
Yellen at 5am: Have me raise rates AND do QE-4infinity at the same time. Threesome!
Rates will go up. This is just a symbolic move.
I think the Fed will inch them up 0.25% as a way to kick off the shit show. World markets are where the focus should be at. How dare the BRICs stray.
Fortress America.
Mr. Yellen is thinking about coming out of the closet and tell the world he will have a sex change. Implant Bruce's junk on him and call him "Jonny Yellen"
This is a much better look into the mind of a central banker
https://www.youtube.com/watch?v=-3aBjFo2Fh4
Old Yeller has a brain?
You need a brain to read what the Vampire Squid writes for you?
Naw, just a forearm up her ass so the hand can operate the lips while the same ole song is played in the background.
Look, Timmy, Mr. Yellen lip syncs better than Milli Vanilli or Jessica Simpson.
Come on Janet - raise the damn rates - prove you really do have balls.
I don't think there is nearly that much brain wave activity in Mr Yellen's mellon.
Crickets.
More like a high pitched whistle as the air blows in one ear and out the other.
The only thing inside old yeller at 4 am is her lesbo partners dildo
Thanks for that image. Now I need to go wash out my brain with Drano.
Sometimes they just don't think about others.
uuuh, there goes the breakfast, thanks dood.
"After nearly seven years of emergency financial policies, we are now in a permanent emergency.
But it is a phony emergency. Markets are supposed to go down as well as up. They’re supposed to correct their mistakes. They’resupposed to destroy malinvestment to make way for new capital formation.
It’s never been a real emergency; it was capitalism at work."
What a quaint, old-fashioned view of the world. I remember when I used to say stuff like that, too.
The permanent economic emergency! We are also experiencing a permanent state of war, a quasi military Keynesianism. Permanent war, permanent market intervention, perpetual surveillance. Cui bono??? Who benefits from all of this "permanence"? I think we all know the answer to that question.
This must have been before her daily conference call with Gartman.
Yea, I think the un-fed should go ahead and jump the shark, by putting Gartman on the board with them.
Regardless, if I were her I'd be worried about the pitchforks since they're coming either way.
The FED is not constitutional.
It's illegal.
I've gotten to the point where I expect the most unlikely outcome. So for tomorrow I expect they'll raise rates by .25% and markets will rally. Gold and silver will be crushed of course. Sigh.
Raise the rate, bitch. You know its the right thing to do.
She's autistic. These feelings you speak of aren't possible.
That might explain her inability to understand certain nuances.
Namely, that when something like Bernanke relinquishes the reins you run for the nearest fallout shelter instead of grabbing them.
"There must be hundreds of thousands – if not millions – of well-educated adults sitting on the edges of their seats… eager to hear what this rather ordinary functionary will say."
I guess I'm not well educated enough to be sitting on the edge of my seat waiting for some asshole speak, because I don't really give a damn.
Unelected pharisees run our nation.
If I raise the rate, just a little, I’ll probably be hailed as a sober, responsible economist.
-lol.... no such thing exists.... these eko-no-mists are mere voodoo priests who survive
only by the grace of politicians who use them to create a an incomprehensible smoke screen
to hide their chicnery and theft....
burn all these pseudo scientists along with their political bosses
inside her head: damn my cunt is so loose. i'll bet every banker on wall street could fit in there with room left over for a bowling alley. i wish those imbeciles in the congress would stop tying my hands so i could do MOAR BITCHEZ. that's right, janet is a nasty whore. i can't wait for my payoff when i go to work for the maggots. giddy up horsey..
Exercise your brain.....
http://www.turingfinance.com/hacking-the-random-walk-hypothesis/
SELL
https://www.youtube.com/watch?v=obAoPP1bdIM
I don't want to be inside that captain kangaroo look-alike in any way, shape, or form......
https://www.youtube.com/watch?v=RDrfE9I8_hs
"Will Janet Yellen proudly put the Fed on the side of the angels, announcing that she and her crew have decided to move the Fed’s key interest rate to a more normal level…"
Since when is .50 interest rate a "normal level"?
Janet is a modern alchemist, who believes her own hype.
Yup, the stock market owns her now. She is not in control, it was a deal with the devil.
She may as well just announce QE4,6 and 6 this week since the stock market will demand it at some point and she wil dutifully comply.
I didn't realise she had a brain!
https://www.youtube.com/watch?v=jt377DV2BKs#t=939
The real US Ecconomy...
(Janet Yellen) Somewhere in America is another "Empty Kitchen!"
Sad really....
A rare exclusive look inside the minds of the FED:
https://www.youtube.com/watch?v=CQFEY9RIRJA
Inside Yellen's brain:
I
I want to know what kind of sick bastard wants to be in Janet Yellen's bedroom at 4am.
"Inside Janet Yellen's Brain At 4am..." yellen has a brain?
I don't think the addlepated old crone decides anything. They put her there to make sure no independent, loose cannon type activity occurs. They used an old lady to keep any sort of violent revenge from being considered, and to shield her from any harsh language during hearings in congress.
No, I think she gets the word down from on high about what to do and when to do it.
"ordinary functionary" That's crap. Yellen is the High Priestess of the Almighty Dollar and her fellow worshippers have gathered to offer their oblations. The story that Zeus mated with a bull market and brought prosperity to all is falling apart. This false religion will fail just as all other false religions have failed.
All those people use Ambien. They 'sleep' soundly. Like babies. And remember nothing.
These are the voyages of the FED. Its eternal mission: to explore strange new market developments; to seek out new rules and new measures; to boldly go where no man has gone before."
Clever use of words but isn't that a tad bit insulting to Gene Roddenberry?
I hate to keep boring people with this, but I'm probably abandoning my visit to see my college grad Business Administration brother. He said my brain is fucked up because I think the FED performs a disservice to the middle income and working class to serve banksters and the .01 -1%. He goes off every time I say the FED was created by financiers to serve the banking community. He claims that ZIRP is good for typical Americans. He claims that QE is good for the economy. He says that the FED was not at all responsible for the financial crisis and performed heroic acts of rescue for all. He supports the EX/IM Bank and denies that Boeing and GE are blackmailing it - because he believes it is important for American Jobs. He strongly supports TARP and all the other bailouts because "they paid it back" without giving a second of thought about how easy it is to "pay it back" with ZIRP and fractional reserve banking. He said he doesn't want to hear about or discuss the history of our involvement in the Middle East as we are simply there for HUMANITARIAN reasons (like the "calvary to the rescue" or Red Cross or something).
It is very difficult to listen to a relatively intelligent person express such trust and faith in the FED, the financial industry, and the government. In his mind they exist purely to improve conditions for each and every American. Not sure I can take it.
He goes off every time I say the FED was created by financiers to serve the banking community.
thats true, the problem is the government has pretty much nationalized the FED, while the rest of the banking community looks on nervously. despite claims to the contrary the banking community is not pleased with QE. they were deregulated and allowed to drown in an ocean of mortgage debt originated by nonbanking entities. still the government came to their rescue (Fannie) and the Fed bought up MBS paper as well. so in that regard the Fed and their policies were legitimate, or right now the wave of foreclosure would have changed this country into a nation of renters not owners. the banking industry sits between the Fed and the investment community, which also has FDIC like Goldman (what the hell is that for?) the Fed couldnt separate the good guys from the bad guys so they let everybody go. home buyers kept their homes, and the big boys picked up the loose change and there you have it. the problem with the Fed is they serve the governments interests not the banks.
The wonders of a college education these days.
Where law students are taught it is the letter and not the intent of the law that matters. (Because removing all context does not actually serve sociopaths who alter legislation at the last minute...)
Economics students are taught that maximizing implied value is a legitimate thing. (No sir, that really is not a fancy word for fraud...)
Nope, no brainwashing going on here.
It's not that we're bored, it's just that... Oh look! What's that? It's shiney!
Funny, no shit had a dream about the old bag last night. Was preparing a big feast and setting goodies on the serving table, my asshole brother ate all of the crunchy potatoes before I got some (my favorite) Yellin was sitting at the serving table with this stupid blank stare on her face. What the fuck does that mean?
she doesnt think that at all. she has a job to monetize government spending, (which is where jobs are created, HC - code for YOUR NEXT BOSS) no its not even possible to think of anyone else but me doing this job, obama didnt like bernanke and he kept him for six years, so i have plenty of time to make my mark on the office. i mean its just not fair i am here for a couple years and all hell breaks loose. of course if bernanke would have raised rates i would have some wiggle room. but he didnt. now i have to tighten credit going into a recession. can i tell them i am raising rates and starting QE4? well i might go back to the old tools REPO and POMO, theres plenty of liquidity in the system we just need to keep turning it over. were okay, i think
Will she admit that the Fed’s ZIRP and its three QE programs have been failures? Or that they have shifted trillions of dollars toward the rich while leaving Main Street poorer?
Admit? That is the real, though unstated, goal of the whole central banking scheme for fucks sake.
Gold and silver are up quite a bit today. Makes me think that Janet is going to raise rates and the bankers who are inside are pushing up gold so that they can really hammer it 15 minutes before the announcement.
Yellen was the lead architect of Bernanke's $3 trillion printing spress. Now she's having fits over a 0.25% rate hike when she's in charge.
Too funny.
Last words before the mob hangs her from a lamppost on 20th Street, "And to think, I could have gone into nursing."
sadly, yellen will not raise, will never raise and will never admit their QE programs failed. the crime the fed is perpetrating upon the citizens will continue as elected representatives are both too stupid and too invested in the status quo to do anything about it. to see real change the people must rise up, rebel and overthrow.