I'm a little old fashioned I guess. I think each person should choose their heroes for themselves rather then have them chosen by someone else. While Kocherlakota is am impressive economist -- obviously very bright. I haven't followed his career and he is not one of my personal heroes. Here is a link that will take you, or anyone interested, to a quote from him that seems to fairly sum up his current monetary policy position. http://www.bloomberg.com/news/artic...s-fed-should-consider-negative-interest-rates
And then there's Evans. More Fed brilliance. The guy even looks like a complete yambag. The Dumbest Thing You Will Read Today... Maybe Ever Dear Americans, meet your venerable central planners: FED'S EVANS: DOT PLOT CHART CLEARLY SHOWS US ECON DOING BETTER So, according to the Fed's academic experts, the US economy is not, well, the US economy, it's not Y = C + I + G + NX, it's not the product of all goods and services created in the United States... it's this: Which, for those confused, is precisely what it appears to be: a bunch of dots drawn on a piece of paper, not to be confused with this following random bunch of dots drawn on a piece of paper, which however is far more indicative of what the US economy is really like. So the actual - you know - economy may be on the verge of a recession, but the Fed's model of an "economy" as represented by the dotted paint-by-numbers gibberish shown above, which only a cabal of arrogant academic hacks, who have never held an actual job in their lives and who can only do one thing: print money and make the rich richer while crushing the rest of the economy with trillions of debt, can deem is anything more than just that - utter gibberish - is recovering. (Please just ignore the negative "dot", of course. That is what, in economic parlance, one calls a (non-GAAP) outlier to be ignored drawn by an angry, outgoing member of said cabal.) * * * And just in case anyone wants more, there was this: EVANS: STRONGER GLOBAL ECONOMY WILL BENEFIT EVERYBODY Finally, this: EVANS: MAINTAINING CREDIBILITY IS KEY TO EFFECTIVE MONETARY POLICY ???
Let me just throw this out, as something with a significant probability. The dumbest thing that we may read today is one of your posts, particularly the one quoted above. (By the way, I think Evans is slated to soon rotate off the FOMC, his term is only one year. As a rotating, regional Branch President he has very little influence on Monetary policy.)
Remember when qe was proposed and initiated? It wasn't monetization. They had an 'exit strategy'. They assured us of this and anyone who didn't fall for it was regarded as tin foil hat, etc. From a speech Ben gave in in 2009: "After a speech by Fed Chairman Ben Bernanke at the London School of Economics, the British newspaper The Telegraph on January 13, 2009 reported: Mr Bernanke is acutely aware of critics who fear that the Fed is storing up trouble by "printing money" and stoking a Zimbabwe-style surge in the US monetary base. "At some point, the Federal Reserve will have to unwind its various lending programmes," he said. This will happen in an orderly fashion. The excess liquidity poses no inflation threat because the "great bulk" is lying idle on deposit at the Fed. It will be mopped up "automatically" as markets revive." But the Boston Fed, in a paper earlier this year, suggested that qe just might have to be permanent, because "financial stabiltiy" depends on it. LOL http://www.zerohedge.com/news/2015-...xit-suggests-qe-become-normal-monetary-policy It is imperative that people think. Mindlessly accepting anything the federal reserve tell you is dangerous to your financial health.
So in one breath you tell me how dumb my post is, and then right after, you indirectly admit that Evans is a loon by giving us the consolation that he won't be influencing monetary policy in a major way. Got it. You need to up your game, Piezoe. Sparring with you is getting really, really easy - you do most of the heavy lifting.
Sept 2013: EVANS NO RATE HIKE UNTIL LATE 2015 Mar 2014: EVANS NO RATE HIKE UNTIL EARLY 2016 Oct 2015: EVANS MID-2016 BEST CHOICE FOR LIFTOFF LOL!
Your post above is equally silly. It demonstrates your ignorance of factors the Fed considers when deciding monetary policy. You seem to belief that these factors are cut and dried without any variance. Someone who changes their opinion based on current data is a 'loon' in your words. (see: http://www.federalreserve.gov/aboutthefed/bios/banks/pres07.htm ; which is the source of the following.) Charles L. Evans President Federal Reserve Bank of Chicago Charles L. Evans took office on September 1, 2007, as the ninth president and chief executive officer of the Seventh District Federal Reserve Bank, at Chicago. In 2015, he serves as a voting member of the Federal Open Market Committee. Before becoming president, Dr. Evans was director of research and a senior vice president at the Chicago Fed. In that capacity he oversaw the Bank's research in monetary policy, banking and financial markets, and regional economics. In addition, he had supervisory responsibility for the Bank's Consumer and Community Affairs unit and the Public Affairs Department. Dr. Evans also served as an associate economist on the FOMC. Prior to his appointment as research director, Dr. Evans was a vice president and senior economist in the Economic Research Department with responsibility for the macroeconomics research group. His research has focused on measuring the effects of monetary policy on U.S. economic activity, inflation, and financial market prices. His research has been published in the Journal of Political Economy, American Economic Review, Journal of Monetary Economics, Quarterly Journal of Economics, and the Handbook of Macroeconomics. Dr. Evans has taught at the University of Chicago and the University of Michigan. Prior to joining the Chicago Fed in 1991, he was an assistant professor of economics at the University of South Carolina. Dr. Evans received a B.A. in economics from the University of Virginia and a Ph.D. in economics from Carnegie-Mellon University in Pittsburgh. He is married and has two children. Chicago -- Seventh District Head office at Chicago, Illinois. Branch Bank at Detroit, Michigan. Covers the state of Iowa; 68 counties of northern Indiana; 50 counties of northern Illinois; 68 counties of southern Michigan; and 46 counties of southern Wisconsin. Last update: January 27, 2015
====US monetary policy is about to lead to disaster=== any monetary policy is leading to disaster.. it just a matter of time ... there should be no central bank and therefore no monetary policy by CB
That is an interesting point of view. Most educated person's are unable to understand how what you propose could work in a large, industrialized, democratic republic. What would you suggest? Going back to the gold standard? With the price of Gold fluctuating from day to day, the value of your currency would fluctuate from day to day, or do you see a way to hold the price of gold constant in today's world? Would you just fold the duties of the CB into the Treasury Department, not have any monetary policy at all, and not worry about political influence on bank operation? Or would you just get rid of Banks altogether, or at least fractional reserve banking, and not allow any banks to loan money that was not their own? I find the working of your mind, such as it is, quite intriguing.
My post was designed to (and illustrated very well) illustrate how poorly these so called "experts" can predict their own economy. Yet the "fringe sites" that dopes like you claim know nothing have been calling for the exact same thing and have a much better record of predicting than all of your sacred cow eCONomists (including yourself). LOL. Again.