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San Fran Fed's Janet Yellen Shares Some Misinformation On The Fed's "Credbility" And Other Topics



September 12, 2009 – Comments (0)

MY COMMENT: Zerohedge has a one of the best quotes this week and does a good job of making fun of this FED idiot/puppet.  I have to wonder how much longer this can go on. They must feel like the people/masses are idiots, who worship their economic prowice. Do they know anyone outside of their "elite circles"?

From Zerohedge:

Warning: Watch the below video without prior ingestion of Xanax, lithium and/or horse tranquilizers at your own risk.

Grandma Janet sounds like an insane and/or senile bureaucrat who does not want to admit that she was one of the select cabal of monetary druids whose mistakes essentially destroyed the financial world a year ago... and their reaction to this destruction has made sure that the US economic system is now promptly heading either toward hyperdeflation or hyperinflation (likely both).

Nonetheless, some interesting quotes here:

dwots link today is outstanding and some of the comments are great and well thought out.

A few I liked from What Stories Aren’t Being Told?:

Charles Says:
September 11th, 20093:55 am at

The utterly irrealistic future performance assumptions from pension funds and financial advisors. It flies in the face of deleveraging reality, but the fallacy is still alive because the job of so many finance professional is dependent on it. It has two impacts :
a) It underestimates the value of pension liabilities for the companies that are pension funds sponsors. Conversely, it leads people to overstimates the amounts that will be available for retirement.
b) It forces investors to over-invest into “risk assets” because these are the only way to achieve such lofty investment goals : look no further for the cause of the recent rally in stocks.
Tim Says:
September 11th, 20094:10 am at

Great post and a lot of good suggestions.
Here is my ideas:
- Japan reaching the slippery slope of debt to GDP, declining GDP and demographic problems
- Eastern Europe and its impact on the banks in Europe
- The slow train crash of commercial property
- the Spanish economy and the impact of 20% unemployment and uncertianty around the health of the whole banking system with limited transparency
- the dreadful shipping market, especially for container ships not even covering operating costs at the current spot charter rates and more ships being delivered daily

Tristram Says:
September 10th, 20098:33 pm at

Hi David.

I think there are many things the media is missing, but in my mind there are perhaps 3 big ones.

1) The changing demographic picture in the US and all of the western developed world, and how the destruction of the housing model in particular may dramatically alter both thoughts about retirement and vastly reduce expected standards of living. It may also alter the way housing is priced going forward for the foreseeable future.

2) The idea of freedom is a concept grounded in a mans God given rights articulated in the constitution. Which means freedom from government to pursue their own ends and bare the weight of failure, or the glory of success as their own. This is missing from the current discussions in many places.

3) and by extension, that many citizens have traded their freedom for the appearance of wealth and progress. A heavily indebted citizen is not a free man but a serf to the institutions that hold his various loans. This type of servitude is antithetical to the great American traditions of freedom, but all anyone is offered is more government and more enslavement to the debt they already have.

Tom F. Says:
September 10th, 200910:00 pm at

The cancerous infestation of self-serving Wall Street crooks in the Federal Government. They have deliberately ruined this country and have gotten away with it scot-free.

Maximus Says:
September 11th, 20098:44 am at

This is an almost endless quest, nevertheless a worthwhile one!
Here are some suggestions:
The current market rebound masks some serious underlying disconnects, which most would rather avoid discussing.
1.Shifting production to developing countries has created a near permanent loss of “ordinary jobs” and the knowledge-based economy will require a smaller and far better educated workforce in the West. Yet education quality has actually deteriorated here in the UK over the past 20 years and arguably in other advanced countries- look at the growth of the “undeclass”. Thus joblessness is a continuing trend, not just associated with a current economic conditions. Governments have not faced up to this, nor its consequences for welfare, health and public finances.
2. Western Governments will not be able to afford the sort of social safety nets seen in many European countries-mostly a product of post WWII reconstruction. This demands a total rethink .
3. The great climate change saga is mostly about energy, its availability, cost and use and (probable)impending shortages add to that water and food and you have a recipe for serious political unrest even major conflict. Little or no forward planning is evident.
3. Overpopulation, a forecast increae from 6 to 9bn – the demand for water. food and natural resources will push prices up and/or create shortages for significant numbers of people. Serious ecological damage is evident already and the inter-relationships are still poorly understood. It is unsustainable.
4. The distortions produced by a global finance industry, without any form of global regulation/standards/enforcement will not be curbed. The same could be argued about many other “destructive” industries, timber, mining, energy etc. Current assumptions about “business as usual” are simply wrong. Energy companies no longer have Production agreements with weak host Governments for example but are forced to operate under consultancy deals.
5.Economics as a credible science, whether for forecasting or as a statistical basis for decison-taking is dead in the water
6. We have taken free market orthodoxy for granted, at least since Adam Smith: this is unsusutainable given the complex interlocking sets of problems which demand suprantional solutions. Yet who is willing to compromise on soverignty
7. Multi-culturalism. Frequently touted as a necessary desirable means of gluing together the national social fabric is a myth. Human beings self-organise in “tribal” ways and this threatens the notion of nation states. Few are prepared to admit it or face up to the social consequences.
8. The end of US $ hegemony and the likely end of the current system of fiat money. Only a global system – a real “bancor” admisnitered by an IMF or smilar can tackle any future meltdowns – the costs of reflation are just too great for any one country. Let’s admit it.


I must thank those fellow Fools, who take the time to chime in on posts, I welcome intelligent dialogue. I have limited bandwidth / time lately, and have not been able to write many replies.

Give dwot the REC for the find it is worth reading

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