Markets to be still flooded with money

[rodmike9]

Quote from sjfan:

It's called getting into the middle ground... trying to find the right trade off between inflation and employment level... hence,'dual' mandate.

Let me put it this way: in your mind, what is the right mandate for the Fed?

the right mandate for the FED according to our politicians and special interest groups, is to create a steep yield curve to benefit the large banks (who own the FED).

manipulating the business cycle to benefit the few at the expense of the many has always been the FED's mandate, that's why it was created.

The puppets who work for the FED are doing their job, and doing it well. The FED doesn't need new mandates, it needs to be dissolved.

 

[olias]

Quote from Larson:

Bernanke should resign. He has failed and is discredited. There are no easy solutions, but he should get out of the way.

Disagree. Bernanke is doing fine. At least you acknowledge that there are no easy solutions. I give you credit for that. Beware of anyone who tries to oversimplify the predicament we are in.

 

[olias]

Quote from rodmike9:

the right mandate for the FED according to our politicians and special interest groups, is to create a steep yield curve to benefit the large banks (who own the FED).

manipulating the business cycle to benefit the few at the expense of the many has always been the FED's mandate, that's why it was created.

The puppets who work for the FED are doing their job, and doing it well. The FED doesn't need new mandates, it needs to be dissolved.

I realize that's the popular thinking in the blogosphere, but that stuff is put out there by people who want to oversimplify things, so they can sell you on how smart they are, or they are genuinely clueless.

Look, there is an element of truth in what they say, but they have really oversimplified things and missed the mark.

 

[Tsing Tao]

Quote from sjfan:

So the Fed should then either seek absolute price-level stability even at 20% unemployment, or 100% employment with 100% inflation?

No kidding it's the two goals are at odds - if it weren't, you wouldn't need a freaking 'dual mandate' - only one would do.

Look - There are PLENTY of legitimate criticism of Fed policy - but you guys are just throwing up fallacious arguments that betray your lack of understanding of basic economics.

why is it the Fed is the only central bank out there with a dual mandate? why is it that all the other central banks target price stability alone?

unemployment is better served through FISCAL policy, not MONETARY.

read up a bit on it, mate.

 

[Tsing Tao]

Quote from poyayan:

I am with sjfan here. As much as the dual mandate of unemployment and inflation, they are already kinda morph into the same thing. The way we calculate inflation is hugely weighted by components tied to wage growth. Well, guess what, wage growth is directly inverse proportional with unemployment. Can't have wage growth unless we have low unemployment.

If Fed didn't print, unemployment will be even higher. It is just a policy of spreading the pain. We all are paying for the financial crisis. The question is whether thru inflation or high unemployment.

please explain how unemployment would be higher if the fed "didn't print".

 

[denner]

Quote from olias:

Disagree. Bernanke is doing fine. At least you acknowledge that there are no easy solutions. I give you credit for that. Beware of anyone who tries to oversimplify the predicament we are in.

ROFL, you are the absolute prince of oversimplification.

You make Homer Simpson look brilliant.

 

[rodmike9]

Quote from olias:

I realize that's the popular thinking in the blogosphere, but that stuff is put out there by people who want to oversimplify things, so they can sell you on how smart they are, or they are genuinely clueless.

Look, there is an element of truth in what they say, but they have really oversimplified things and missed the mark.

“If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered.” Thomas Jefferson (1743-1826), 3rd US President

manipulating the currency is an age old practice. We really haven't changed (progressed) much in a couple hundred years rather, I would argue we are more ignorant and stupid today.

 

[Larson]

Quote from olias:

Disagree. Bernanke is doing fine. At least you acknowledge that there are no easy solutions. I give you credit for that. Beware of anyone who tries to oversimplify the predicament we are in.

No, he is not doing fine. He needs to split. Bernanke is a smart academic, but a miserable central banker trying to appease the wrong people and appears to be the reincarnation of Arthur Burns, inept Fed chairman incapable of dealing with 1970's stagflation. Bernanke has shown he is incapable of dealing with the current situation. I have already explained why to you once before.

 

[sjfan]

I agree with "unemployment is better served through FISCAL policy, not MONETARY." entirely. Given we are in a fiscal tightening mode (with Obama raking businesses on one hand, and tea partiers going down the path of austerity in the other), shouldn't be some somewhat thankful that the central bank's monetary expansion is at least counter acting some of that?

Also, of the four major central banks, economic activities is certain an objective for BOJ. ECB is not really a central bank of a country, but of a semi-sovereign union. BOE is somewhat in the middle.

So the dual mandate is hardly an aberration.

Quote from Tsing Tao:

why is it the Fed is the only central bank out there with a dual mandate? why is it that all the other central banks target price stability alone?

unemployment is better served through FISCAL policy, not MONETARY.

read up a bit on it, mate.

 

[Tsing Tao]

"economic activities" does not mean "dual mandate". none of the banks you mentioned have dual mandates. not even the BOJ:

http://www.iie.com/publications/opeds/oped.cfm?ResearchID=790

the reason the bank of japan has been so active in their "economic activities" as you call them (QE, etc) is because the country has been experiencing REAL deflation for so long. that falls under price stability.