Minimize

Welcome!

6 dubious Yellenisms from the Fed chair’s testimony

May 8, 2014

This article from MarketWatch breaking down some of the main themes of Yellen’s testimony to the Joint Economic Committee yesterday. The Committee brought up some of the concerns we have discuss on a regular basis, being the continuing wealth gap, the Fed’s inflation goal, extremely low labor force participation, and asset bubbles.

Click here to read the breakdown of her testimony.

Discussion
66 Comments
    May 08, 2014 08:49 AM

    The Fed is like an occupying army telling the occupied people that they are there to help them all the while slowly killing the country via the issuance of debt to both the occupied government and their citizens (who by the way are also collateral for the national debt) a debt that comes with an interest rate and that mathematically can never be repaid just rolled over indefinitely…..absolutely brilliant!

      May 08, 2014 08:58 AM

      great statement………..Mark………..

      May 08, 2014 08:16 AM

      That, Mark, is a very interesting point.

      Have a great Thursday, by the way,

      Big Al

      May 08, 2014 08:55 AM

      Well said.
      Evaluation of the Fed policies today is very much like evaluation of policies which gave rise to the housing bubble. At the height of the bubble, people were easily fooled into believing that the policies were working.

      They failed to consider what the downstream consequences of the policies would be. The same mistake is being made today. The problem is that we have since climbed up to an even higher cliff.

      This time, the crisis will be in the sovereign debt itself. The bubble has worked itself up to the top of the food chain. When this one pops, there is no easy rescue.

        May 08, 2014 08:41 AM

        Gotta ask you Eric, how could any sane person have possibly believed that the housing bubble would continue. It made absolutely no sense what so ever!

          May 08, 2014 08:50 AM

          You’re right, Al — it didn’t make any sense at the time. But go back and see what Fed officials were saying at the time about sub-prime and the rest of it.

          Now ask yourself why they don’t recognize what is happening in the sovereign debt markets. Several years from now, it is going to be much the same — people will say ‘how was it that people were willing to allow the government of the US borrow money at 2.5% — what kind of insanity was that?”

          Never mind the yields in places like Greece and Italy and Spain.

          But here we are.

            May 08, 2014 08:18 PM

            So true Eric.

            Maybe they are not as insightful as we are!

          May 08, 2014 08:59 AM

          YOU GUYS…are soooo right and spot on….the DECEPTION is absolutely mind-boggling!

        May 08, 2014 08:30 AM

        Real estate imo has more normalcy to its trends, cheap money, Nija mortgages boom bust in play.

        The S&P completely different as the primary dealers can buy just the key S&P stocks and prop up the sector at key levels then the brainless algo’s follow the momentum higher, repeat-rince

    May 08, 2014 08:57 AM

    Yellen without a clue.
    I read somewhere……….she changed her NAME(and it not a maiden name change)….. maybe, that way she can change it back after she leaves office……and no one will be able to find her.
    It is funny………..WE HAVE A PRESIDENT, AND FED CHAIR,.WHO HAVE CHANGED THEIR NAMES. Something quite strange with this, I think……………O^OTB

      May 08, 2014 08:08 AM

      The..JEC..FOMC…..Why does she bother , why did Bernanke bother…they say roughly the same thing each time….They are a pair of bloody parrots…Why do people bother listening to them !!!.

        May 08, 2014 08:14 AM

        Bang on!!! irsihtony

        As a market trader for 40+ years those within the industry have let these clowns create a circus, WHY does anyone give these people any time, why do we except CPI is made up of nothing real that measures inflation, why did we allow weekly money supply data to be removed……

        How could we have allowed the 157 FASB ruling from the Federal Accounting STANDARDS Board to allow the US banks to mark to their values of toxic mortgage debt to their values vs mark to market…..Arthur Anderson accounting lives on!

          May 08, 2014 08:28 AM

          JJ…..CPI is fraud & lies…If these people had to do a weekly shop for a family then they would know its lies…..But then they already know that…Here in the UK we have the LIERS (govt) telling the people the economy is improving & inflation is low..COMPULISIVE LIEING B%&£$%&S.

          May 08, 2014 08:43 AM

          Ain’t that the truth, “Original”!

        May 08, 2014 08:15 AM

        IRISH……..the sheeple, does not know who the FED IS, or what they DO……
        The sheeple are BRAIN DEAD…………………………..

        May 08, 2014 08:42 AM

        Because the have to Mr. Irish. Gotta look at everything out there in these crazy markets!

          May 08, 2014 08:20 PM

          Response to GH:

          Thanks that was funny!

        May 08, 2014 08:00 AM

        GREAT ONE…..IRISH!!

      May 08, 2014 08:39 AM

      Haven’t heard that about Mrs Yellen, Jerry. Got a source?

    May 08, 2014 08:08 AM

    US debt, no problem….just default, they’ve done it before in many different ways

    http://www.ritholtz.com/blog/2013/10/the-myth-that-u-s-has-never-defaulted-on-its-debt/

      May 08, 2014 08:26 AM

      Since, the Debt was created by a mindless nation, and with bad money skills……..
      A bankruptcy is in ORDER…, it is biblical to have a JUBILEE, if you learn from your mistakes., only Bankers want you to believe it is bad thing……………………………OOTB

      May 08, 2014 08:45 AM

      I personally don’t think that they have any choice at all “Original”!

        May 08, 2014 08:03 AM

        BIG AL and JJ,
        That is what we have been saying for “many moons”…it is such a CON- job…..

          May 08, 2014 08:21 PM

          Yep Marc!

      May 08, 2014 08:15 AM

      That’s a pretty picture…..sarc off

      May 08, 2014 08:18 AM

      Yes a very possible back test to the 20 area is possible before heading lower again.

      The biggest issue I have with those kinds of charts is todays financial system is completely different from the past shown on the chart…

      In 2008 if anyone would have told me emergency low interest rates would still be in place 6 years later I’d say your nuts!

      May 08, 2014 08:47 AM

      You will get a comment on this today from Doc.

    May 08, 2014 08:21 AM

    When you pay people who are not working and support women who have children out of wedlock you are destroying the family unit.

    May 08, 2014 08:32 AM

    Gold manipulation topic on BNN in 20 minutes.

    May 08, 2014 08:01 AM

    Nothing has changed, ………….WE STILL HAVE THE MONEY PRINTING FED, which knows nothing else, only the NAMES change. Yellen, has no answer, because she is one of the problems….she has no solution, Just GRANDMA, BEHIND THE WHEEL.

      May 08, 2014 08:57 AM

      JERRY…..I said Goldseek instead of Silverseek……just trying to be posh…OK

        May 08, 2014 08:22 PM

        Trying to be posh? Heck Mr. Irish, you are posh!

    May 08, 2014 08:13 AM

    The above BNN gold market manipulation clip was good. I was happiest to see it was done by the same group that exposed Libor manipulation and the article has not been published yet.

    This and the Butler article are baby steps but a step none the less. Maybe another 25 years and Butler will win.

    May 08, 2014 08:35 AM

    Dan…..Another 25 years don’t say that , another 25y & i’l be brown bread…I wont get to spend my vast wealth from my silver insurance…haha…..One must feel sorry for all these billionaire bankers on their death beds , who have spent a life time stealing from the rich & poor….& finally realise they can not take it with them . & even if they could , even they know paper money burns….Shame..Shame..Shame.

      May 08, 2014 08:44 AM

      I feel your pain…. I wish it was 25 minutes not years but it seems to be in the hands of a government agency and I have little faith that there will be a timely exposure of the banksters.

      I hope the relatives of these dying banksters would treat their inheritance money as blood money and not a god given gift but a conscience is needed for that.

      May 08, 2014 08:51 AM

      Millionaire’s misprint at his funeral service Tony, a line of a hymn which says – ‘land my safe on Canaan’s side…whoops for my read ME ….!

        May 08, 2014 08:05 AM

        Andrew…..I like it ….haha…….but how can you be sure it WAS a misprint , after all some of these people think they are gods.

          May 08, 2014 08:35 AM

          Very good point Irish.

            May 08, 2014 08:23 PM

            Yes Reverend, a very good point by Mr. Irish!

    May 08, 2014 08:41 AM

    JP Morgan holds 76% of the entire short position in silver worldwide (anything over 5% is illegal but the SEC continues to look the other way). Nothing else matters. The price of gold and silver aren’t going to be allowed to move up or down to any meaningful extent unless JPM wants it and allows it. The Ukraine, China, the Euro, US money printing, unemployment, inflation, deflation, supply, demand, etc., mean absolutely nothing. It’s all just a bunch of meaningless noise; until JPM decides to let the price of gold and silver move nothing else is going to make the slightest bit of difference. The truly bizarre thing is that all of these people who are supposedly ‘in the know’ never make any reference to JPM’s total illegal stranglehold on the metals markets. Maybe they’re all scared of having JPM’s lawyers (or hit men) come after them and their families?

    May 08, 2014 08:43 AM

    Did folk see M.Keiser yesterday roasting Business Sec Vince Cable and Lazards over paying them £1.5 m to advise the government on a flotation price for Royal Mail shares. Having under-estimated Royal Mail’s true worth Lazards they neatly made a quick extra £8.5 m before bailing out.
    Vince Cable needs to be hoist by his own…… cable.

    http://www.independent.co.uk/news/uk/politics/exclusive-investment-bank-lazards-cosy-relationship-with-government-questioned-by-mps-9239335.html

      May 08, 2014 08:16 PM

      Hello Andrew, yes I did, it was excellent! Keiser is one of the best, maybe the best, and to boot he’s always highly entertaining.

    May 08, 2014 08:13 PM

    Andrew….I worked for “FRESHFIELDS” , many years ago…speaking to one of the senior partners one day about banks , Lazards came into the conversation…He looked me straight in the eye & said….Lazards & Rothchild run the city , the Govt, & the Monarcy……Now that says it all.

      May 08, 2014 08:24 PM

      Seems to, Mr. Irish

    May 08, 2014 08:34 PM

    Glug!!

      May 08, 2014 08:25 PM

      Are you referring to Guinness!