Lake Erie Conservative

thoughtful discussion(s) about issue(s)

Posts Tagged ‘Monetary policy’

… Inflation Doves at the Fed [#HighInflation]…

Posted by paulfromwloh on Tuesday,April 15th,2014

.. Janet Yellen & her cronies are going to get us into trouble .

.. her and her Phillips Curve crowd are dangerous …

.. what are these idiots thinking . They are responsible for monetary policy , not fiscal policy . Quit screwing around with fiscal policy . That policy is the province of the President and Congress .

.. The Federal Reserve ‘ s most important asset is its credibility . It may well need it sometime to fight inflation or systemic risks . Bernanke earned his spurs . So did Greenspan , as did Voelker . Burns and Miller did not , and inflation ran wild . So do not your institutional credibility . It will take a hell of a long time and a great deal of work and effort to get it back …

.. [h/t — NationalReview]..
.. [link] to Larry Kudlow ‘ s article …

.. if you introduce a little bit of inflation into the system , as Larry argues , you are playing with fire . It does not stay as a little bit of inflation for very long . The markets see the recurrence , and demand compensation for it . Then people see the  effect , and then …. … . While they are at it , dump the Phillips Curve . It never works . It is a pile of Keynesian bull[crap] …

.. If inflation surges , we are going to have some serious problems . Interest rates will have to rise . No doubt about it . Inflation risk is a part of the internest Rate equation . If the Fed is screwing around with interest rates because they want to keep interest rates low , may God in heaven help them . Then you end up with both inflation risk and systemic risk , and the financial markets (and the DemoCraps) in the tank …

Advertisements

Posted in economic opinion, education, personal opinion | Tagged: , , , , , , | Leave a Comment »

… I Disagree . It is not the Fed ‘ s Job to Worry about Whether the Economy is Strong Enough …

Posted by paulfromwloh on Saturday,August 17th,2013

.. The Federal Reserve cannot totally ignore what is going on in the economy . Howevery , they have to safeguard the system , not micromanage it .

.. The Federal Reserve ‘ s tasks are multi – faceted . Yes , they have to think about what is going on in the economy . It is , however , not the primary or principal job . They need to safeguard the stability and sanity of the system , namely the finanicail system itself .

.. They deal primarily with monetary policy . They focus on the means of exchange (gold , sometimes , most often , the currency) , ie, the dollar , and how the system operater. They can fine – tune the system , or tinker with it . They do have some say – so in fiscal policy . However , fiscal policy is the principal province of POTUS and Congress . The Fed can sometimes anticipate what they may or may not do , but they should not have to take the lead . When they do , it means the principal actors have failed at their job .

.. What caused me to comment on this is this article for moneynews.com . One of their commentators , Joel Naroff , does not think that the economy is strong enough for the economy to take “tapering” of Quantitative Easing . To Be honest , whether it is or not is not their concern . Whether QE is complete is the prime concern .

Posted in financial opinion, personal opinion | Tagged: , , , , , , , | Leave a Comment »