Posts Tagged ‘Fed’

The Blog Catches Up With Ten Tired Topics

Friday, November 8th, 2013

Gorilla’s not been blogging lately, mostly because he’s got nothing more to say about the following topics:

1) GOP intransigence: Now in Year 5.

2) Immigration reform: Never had a chance, will never have a chance until Republicans are booted back to a minority in all three branches of government.

3) ENDA: ditto.

4) Healthcare reform: a big botch, mainly because Medicare for all would have been much easier to implement, so long as your vested interest wasn’t insurance.

5) Chris Christie: he’ll never be the GOP nominee for President.

6) Ken Cuccinelli: Off to the land of grifterhood.

7) Euroland: finally decided to do some of the right thing with interest rates, but still not doing what’s needed: a much higher inflation target, the end of austerity, and a big increase in German consumption.

8) Fed: See Euroland.

9) Hillary Clinton: if she runs, she’ll win, if she doesn’t, Dems will win anyway.

10: Gun Control: see Immigration and ENDA.

Gorilla says: “More to come eventually, but at the moment there’s nothing much to say, except Happy Birthday, Anka!”

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What An Actual Surprise From The Fed Would Be Like

Wednesday, September 18th, 2013

Certainly not today’s “non-tapering” nonevent, it’s been clear to everyone but Wall Street that there will be no change in either interest rates or QE until and unless unemployment comes way down (not before 2015 at the earliest).

A surprise Fed announcement would sound like this:

“We intend to raise our inflation target to 5% until unemployment drops below 6%. Now start investing in something other than exotic derivatives and the other junk you’re foisted on America the past 25 years”.

Gorilla says: “We may one day be surprised!”

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Catching Up On Some News

Wednesday, July 31st, 2013

Manning verdict: not a surprise. The aiding the enemy charge was ridiculous (is the enemy a reader of the Times and the Guardian?). 10-15 years seems like the right sentence, but they’ll probably give him 50 years plus to show they can.

Fed Chair search: Larry Summers has been so wrong so many times about so many things, not to mention a thriving sexist on the Wall Street dole, so he shouldn’t be nominated. Janet Yellen seems like just the sort of competent professional Fednik you’d want, particularly after the disasters that were Greenspan and Bernanke.

Wall Street commodities manipulation: Quelle surprise!!! Until bankers have a well-founded fear that they will lose both all their personal assets and their freedom, we’ll continue to have this sort of crime disguised as arbitrage.

Pope can handle gays: So what? The criminal enterprise he runs remains deeply homophobic and misogynistic. Nice to care more about the poor, but not when you surround yourself with amoral pygmies whose anti-contraception campaigns have done as much as any government to keep people poor.

Failed state tour d’horizon: Egypt should be holding elections right away, and the US should be cutting off military aid until the military ceases to be the real power in the country. Iraq and Afghanistan look headed for civil war once we finally get out. Pakistan continues to disintegrate, and there’s not a lot we can do about it. A caliphate in Central Asia isn’t in our interests, but when has Central Asia ever been in our interests?

Middle East peace: Another sham round of talking about talking, to be followed by more illegal settlements and Hamas trying to get control of the West Bank. 65 years of this nonsense demonstrates clearly that the US has zero interest in whatever outcome the two sides don’t believe in.

Another summer and fall of watching the Know Nothing loons strut their stuff to the detriment of the country and the world.

Gorilla says: “At the moment, the snoozeometer is set on stun!”

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The Fed Fumbles Again

Thursday, June 20th, 2013

Inflation is way below target and has been for years.

Unemployment is way too high and has been for years.

The Fed said it would engage in QE3 until unemployment falls below 6.5% (still way too high) and inflation rises above 2.5% (still way too low).

So why does the Fed predict on the one hand that unemployment won’t reach its target until the end of next year at the earliest, while hinting that it may slow down on QE3 by the end of this year?

Because it’s been run for the past 25 years by the worst two Chairmen in its history.

Al and Ben care only about pleasing Wall Street, a place full of cretinous criminals, they care not at all about the disasters their stupid policies have inflicted upon generations of Americans.

Gorilla says: “The sooner Bernanke leaves, the better it will be, he’s worthless!”

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Shorter Ben Bernanke, An Idiot’s Idiot

Wednesday, May 22nd, 2013

“Thanks to monetary policy, we could have missed our inflation and unemployment targets even more completely than we already have!”

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The Unanswered Question: Year 5

Wednesday, May 15th, 2013

The deficit’s shrinking, the polarization in DC means nothing much will be done on anything for the next 4 years, the banks and corporations are sitting on huge piles of cash, and inflation remains well below the Fed’s recently announced 2 1/2% target.

Gorilla asks: “So why is the Fed still doing so little about unemployment, a problem it could solve by giving people free money?”

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The Fed Twiddles Again

Wednesday, February 20th, 2013

If you’re stuck on, or rather below, an utterly stupid 2% inflation target, while the political classes abdicate responsibility for the the fiscal side, then you’re not fulfilling the dual mandate!

High unemployment and low inflation is an absolute disaster for this country. What’s needed is a clear statement: 5% inflation will be tolerated until unemployment falls below 6%.

Gorilla says: “The thumbs are increasingly thumbscrews, as applied by the Fed!”

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Finally, But More Please!

Thursday, September 13th, 2012

Ben Bernanke has at last gotten off his ass and announced a more or less unlimited QE3.

Time to cheer?

Well, yes and no.

What was missing today is a clear statement that the Fed will allow inflation to rise even after an economic recovery is in place. And that rise in inflation should be linked explicitly to a fall in unemployment: Gorilla would like to see 5% inflation until unemployment falls to 6% or less.

Giving money to all Americans freely might be more efficient than providing it to our very corrupt financial system. The banks have stockpiled huge amounts of cash already, they’re still deleveraging, and the demand that would spark lending remains woefully inadequate.

Free money in everyone’s pocket would greatly assist in getting demand, and therefore GDP growth, back to the trend line. It would also make a huge dent in what should be unacceptably high levels of unemployment.

Bernanke’s history has been to be too late and too conservative. Unlimited QE3 says he understands that the Fed can do a lot more than it has so far.

Gorilla says: “A bit of straight talk would be welcome, but at least they’re putting money where there mouth isn’t!”

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Amoral Liars And An Amoral Fed Chairman

Thursday, August 30th, 2012

Gorilla’s been under the weather this week, but he clearly hasn’t missed much.

First up, the Know Nothing convention. When racist, misogynistic liars gather, there’s no news, just amoral, cowardly bullshit. One speech after another filled with lies is what it is: desperation coupled with hatred. Didn’t work for the Nazis, won’t work for the Know Nothings.

Next up, the Fed Chairman, who’s long on words, short on actions, and just as amoral as the bunch gathering in Tampa. There’s zero inflation and high unemployment, and the Fed, as it has for the past decade, is failing completely to support the dual mandate. Goosing asset prices and fighting non-existent inflation, while millions suffer for no reason, is not a serious economic policy.

Gorilla says: “It’s all about the accountability free era we live in: You can’t have a failure of leadership when you have no leaders!”

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Yet Again: Missing The Inflation Target, Doing Nothing About Unemployment

Wednesday, August 15th, 2012

Inflation’s running well below the Fed’s 2% inflation target, while unemployment remains above 8% and the Fed continues to do nothing.

What’s needed is QE3 for you and me: lots of money provided directly to Americans. The Fed could buy up and refinance all the mortgages in the country. The Fed could send a check for $10,000 to every American. The Fed could announce a much higher inflation target (5% would be about right) that will be pursued until unemployment drops below 7%.

But the Fed does nothing, primarily because its notion of independence means it can’t get too involved in helping the US economy during an election year.

Such an approach is what it is: cowardly and amoral.

Gorilla says: “Stupid or evil, it makes no difference, the Fed is a disaster!”

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