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farmer
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Posts: 13462
Joined: December 16th, 2002, 7:09 am

Yellen the Hypocrite

May 8th, 2014, 5:26 pm

Janet Yellen was talking about "fiscal drag" again today. So I ask you: Who has done the most of anyone to reduce the US government deficit? Answer: The Fed, by buying half the government debt at low interest, and then returning the interest to the government.Treasury coupons paid to the public are not a stimulus? The discounted present value of future interest payments to the private sector is way down. The discounted present value of future tax liabilities not so much, I have not seen tax rates go down.What about the wealth effect? Fewer treasuries held in the private sector is less wealth, no?
 
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MartinGale7
Posts: 152
Joined: April 1st, 2011, 7:42 am

Yellen the Hypocrite

May 15th, 2014, 8:35 am

The whole thing stinks. I am sure that the public opinion of the Fed, BOJ and BOE must be at all-time lows.The thing that I find laughable is the way that CPI and PCE are being abused using hedonic and substitution adjustments. The lay-person thinks that CPI reflects the cost of living. This is sadly not the case. The statisticians compiling CPI figures believe that the latest iPhone having a higher resolution screen makes the cost of living cheaper through 'hedonic' adjustments. If bananas are something you buy and they go up in price then they will ignore this if apples haven't through 'substitution' adjustments. Additionally they exclude changes in the cost of putting a roof over your head however this is a large part of our cost of living.For example, in the UK, we often see news articles about deflation fears. This is rubbish. Over the past five years the cost of groceries, energy, and housing have together increased by about 50% (over the five years, not pa). Obviously this number is approximate and depends on how you weigh the constituents. I can't think of a single living expense that is cheaper today than it was 5 years ago but can give any number of examples of living costs that have more than doubled. Deflation my ars£e... Inflation is a measure of the 'cost of living' and we are definitely well on the inflation side of the fence.
Last edited by MartinGale7 on May 14th, 2014, 10:00 pm, edited 1 time in total.
 
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dweeb
Posts: 142
Joined: July 11th, 2009, 8:10 pm

Yellen the Hypocrite

May 15th, 2014, 1:25 pm

PBS interview with Zachary Karabell, author of The Leading Indicators.GDP rules the world, but should it?
 
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maler
Posts: 32
Joined: February 23rd, 2009, 3:13 pm

Yellen the Hypocrite

May 16th, 2014, 5:42 pm

Say everyone quit their jobs and moved into the wild surviving on mushroomsexcept for one guy at the Fed pushing a button to do a 20T QE and thengoing part time to the treasury to mail himself a 20T foodstamp that he usesto buy a can of beans form an emergency stack he oversees.If he were to calculate the GDP in his spare time will it show an increase from last year?
Last edited by maler on May 15th, 2014, 10:00 pm, edited 1 time in total.
 
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tagoma
Posts: 18351
Joined: February 21st, 2010, 12:58 pm

Yellen the Hypocrite

May 20th, 2014, 12:46 pm

100 days and 100 nights with Miss Yellen
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