In all honesty, we were a little confused whether to call this Tuesday Humor or Tuesday Schizophrenia, because moments ago the biggest dove at the Fed, Minneapolis Fed's one-time converted uberhawk Kocherlakota (who recall fired his two biggest hawkish opponents at his regional Fed) just came up with the most idiotic, and hence hilarious, thing a president of the one institution whose only job is to devalue the fiat currency of the host nation can say:
- KOCHERLAKOTA SEES ‘REAL EROSION’ OF PEOPLE’S PURCHASING POWER
Yep - the biggest dove in the Fed - the only person who disagreed with the Fed's decision to continue tapering - is suddenly worried about the erosion in your purchasing power dear people. What nobility. What humanism.
But wait, there's more.
Because within moments of uttering this epic phrase, Kocherlakota said this:
Kocherlakota: You see an asset price or land price growing at 10% per year. That can’t continue. #MFedQandA— Minneapolis Fed (@MinneapolisFed) April 16, 2014
So according to the head of the Minneapolis Fed, the S&P, which rose at 30% last year, is in a bubble and due to pop? Thanks for the warning, chief, even though it is ironic considering it comes on the heels of this:
Kocherlakota: The ways in which low interest rates provide stimulus are greater than the impact on savings accounts. #MFedQandA— Minneapolis Fed (@MinneapolisFed) April 16, 2014
Greater than the impact on savings accounts... and precisely equal to the impact on their E-trade accounts.
And we close with this rhetorical question posed by the Fed economist:
Question: What could the Fed be doing to help spur the economy? #MFedQandA— Minneapolis Fed (@MinneapolisFed) April 16, 2014
Why shut itself down of course.