Pictures say more than words, especially when it comes to Fed hubris. Two pictures make the case.
Don’t Worry
Mike “Mish” Shedlock
Fed’s Beautiful Model in Pictures
26 Tuesday Sep 2017
Posted | September 26, 2017 6:23:39 | Economics
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fed strategy going forward will continue to consist of the 3 same basic tenets goin forward,1 print,2 print sSOMMORE and 3 print even MOAR and continue to buy everything within sight or hearing
Inflation too low? Not a problem,,,just speed up the printing presses.
Part B of that plan is to actually get the money in circulation. I feel a bailout of state pension plans in the works, there’s some discussion beginning, and I’m sure there will be a lot of buzz when the states and municipalities have to start including medical expenses next year.
From a selfish standpoint, I certainly hope so. When I explain to my municipal co-workers that they should mentally factor a 50% pension haircut into their personal planning, they insist that the state has to pay them because it’s in their contract. They have no concept of counterparty risk.
Ignorance is bliss and anyone who tries too hard to awaken them will be the messenger who gets shot. So many times in life we feel we are helping others by informing them of the truth but what we sometimes fail to see is that many don’t WANT to hear the truth and the better, louder and more to the point you are, the more they cover their ears and cry “I’m not listening!!”.
Anything to keep the market jacked up.
You can’t get inflation from an economy redlining on socialism.
It’s tough to get inflation with the strong DEFLATIONARY effects of increased efficiency through technology and waning desire to borrow due to budgets saturated with debt payments.
SixoooMileYear … My personal preference, that which is in the best interest of my family and children’s future are bring on an asset deflation that results in A) one year Bank CD’s exceeding 6% APY, B) seven year maximum amortized home mortgage limit, C) 28% statutory debt ratio limit on all consumer debt, D) elimination of Federal taxes on personal income.
Sorry you don’t get a say. See, you’re not “qualified.”
Eventually the Fed will prove itself to be irrelevant.
https://image.ibb.co/kk2Dtk/sketch_1506471485838.png
Nice art work crysangle. You sir, have a future as a government analyst.
Well I thank you, though I find analysing government works best in the present, even if that were in the future, when it would not be, and could never have been. I am considering buying a ruler.
You shouldn’t have any problems buying a ruler… politicians have always been for sale!
NO longer have a clue what formula they use for “inflation”, but I can say this will zero doubt, the REAL inflation is running well over 5% for the last 5 years, PERIOD.
GUESS WHO HAD SETH RICH KILLED???
TRIUMPH with TRUMP!!!
I found an interesting chart. Bernanke’s scholarly acumen apparently figured out that the 1930-ties FED didn’t print enough.
http://www.acting-man.com/blog/media/2017/09/1-RoC-1929-1934-securities-held-by-Fed.png
Most underlying components of Core PCE point to 3-3.5% inflation, its just the going out of business sales dragging the headline down, was oil now its autos and retail and a weak manufacturing sector. The service sector is having to pay up for workers.
http://strategicmacro.blogspot.co.uk/2017/09/where-shoudl-us-10-year-treasury-be.html
[img]https://3.bp.blogspot.com/-u-xPN2VG93E/WctpQO6C9mI/AAAAAAAABDo/tBiH4IxHvewlEGXYfaSYJQiJZjbPBP1_ACLcBGAs/s1600/Capture10.JPG[/img]
3rd time lucky?
Aiming for 2% and hitting 1.4% is OK. plus, this is an asinine charge – of course they are going to predict that their actions will lead to 2% – they have already told you that is their goal. You don’t say: we are going to hit the bullseye on the dart board then set up your rifle to target the door on the other side of the room.
As usual, nobody knows nothing. The economy is too complex to control and the numbers are, for the most part, estimates that are probably accurate to about 1SD in most cases (have you ever dug right down into the sausage machine that delivers these economic figures?). Their only consistency is that they use the same mechanism so are reliably wrong (just like your cartoon shows the Fed are).
1.4% … 2% …. 3-3.5% …. 5% – all just guesses.