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Meet Janet Yellen, central planner – Jim Rickards

January 29, 2014

This is an interesting article by Jim Rickards. Jim digs into Yellen’s economic models and policies to expose the fundamental issues with many of them. Jim’s final point I think is a great summary of what Yellen intends to achieve (at least in the short term) and why this might be the wrong goal all together.

“The Fed is trying to tip the psychology of the consumer toward spending through its communication policy and low rates. This is extremely difficult to do in the short run. But once you change the psychology, it is extremely difficult to change it back again. If the Fed succeeds in raising inflationary expectations, those expectations may quickly get out of control as they did in the 1970’s. This means that instead of inflation leveling off at 3%, inflation may quickly jump to 7% or higher. The Fed believes they can dial-down the thermostat if this happens, but they will discover that the psychology is not easy to reverse and inflation will run out of control.”

Click here to read the full article.

Discussion
7 Comments
    Jan 29, 2014 29:11 AM

    Buy farm land, oil investments and lots of gold.

    LAND….THEY DON’T MAKE ANYMORE

    CFS
    Jan 29, 2014 29:25 AM

    Obama wants to reduce inequality of incomes between the rich and the poor by raising taxes.

    This is STUPID Marxist thinking, proven wrong multiple times.

    Facts:
    Compare Reagan’s first term with Obama’s first term:
    Under Reagan during his first term, he LOWERED TAXATION.
    Every quintile of income range rose and
    The lowest quintile percentage-wise actually rose more than the highest quintile.

    Under Obama, during his first term, TAXATION ROSE.
    Median income DROPPED.
    Upper quintile ROSE
    LOWEST quintile DROPPED.

    Interesting…..THE INEQUALITY GAP WIDENED!!!!!
    When you’re in a hole stop digging, you idiot.
    DOES NOBODY ever look at historical FACTS.

      Jan 29, 2014 29:17 PM

      Not if it doesn’t suit their purpose!

      bj
      Jan 29, 2014 29:24 PM

      Problem with Regan was that he lower taxes but increased spending. The heavy lifting was always cutting spending–which is why it never happens–which is why we’re in the miserable fix. Back then the difference between the Rs & the Ds was which set of cronies got to pig out at the public trough, today it’s one big binge–the ultimate pig out!

      Funny how easy it is for bipartisanship when they’re spending but can never agree on any cuts or compromises that so much as even decrease the rate of increase of spending. They’re all intoxicated with power.

      …And why on earth do the R’s need to come up with an alternative to Obamacare? How does that comport with free markets or limiting the size and scope of an over reaching government. What will they call it, ObamaLite? How ironic….

    CFS
    Jan 29, 2014 29:29 AM

    Income data taken from:
    http://www.census.gov/hhes/www/income/income.html
    not Bureau of Labor Statistics.

    Jan 29, 2014 29:59 AM

    OBAMA what a JOKER ! GOD HELPE USA ! CLIMATE CHANGE IS A FACT ! ONT NO NUCLEAR PROBLEM ! DEB AND MORE DEB BOYS COMING BUYYYYYYY GOLD !

      Jan 29, 2014 29:26 PM

      and suddenly samting happens and all the obama blablabla changes and sheeple folio !