Yellen Goes for Tight Dollar Policies

[Dont Taz Me Bro]

So we have yet another article from the inflationista press proclaiming that inflation and interest rates are about to rise. Despite being completely wrong for six straight years and having put forward dozens of entertaining reasons for being wrong (the latest being "miracles") they have the same prediction again, and yes, it includes the BIS.

But go ahead, invest based on these people. They are likely to be right sometime in the next two decades. If you have anything left to invest.

Obviously you haven't been grocery shopping or driven a car in the past few years.

 

[JimBowie1958]

Fed kicks off global dollar squeeze as Janet Yellen turns hawkish - Telegraph

The US Federal Reserve has begun to pivot. Monetary tightening is coming sooner than the world expected, with sober implications for overheated bourses, and for those in Asia, eastern Europe and Latin America that drank deepest from the draught of dollar liquidity.

We can expect a blistering dollar rally, perhaps akin to the early 1980s or the mid-1990s. It is fortuitous that the BRICS quintet of Brazil, Russia, India, China and South Africa have just launched their $100bn monetary fund to defend each other's currencies. Some of them may need it. ....

Since Fed chief Janet Yellen targets jobs above all else, this was bound to force capitulation by the Fed before long. It happened this week in her testimony to Congress. "If the labour market continues to improve more quickly than anticipated, then increases in the federal funds rate likely would occur sooner and be more rapid than currently envisioned," she said.

This is a policy shift. Mrs Yellen has admitted that the Fed misjudged the pace of jobs recovery. The staff did not expect unemployment to fall this low until late next year. The inflexion point has come 15 months early...

Mrs Yellen is not as dovish as believed, in any case. Her lodestar is the "non-accelerating inflation rate of unemployment" (NAIRU), the point at which tight labour markets start to drive a wage-price spiral. She thinks this is near 5.4pc.

When the rate is above NAIRU, she is a dove: when below, she is a hawk. She was one of the first to call for pre-emptive rate rises in 1996 to choke inflation, dissenting from the Greenspan Fed. Nobody thought of her as dovish then.

This will cause a huge ripple effect on the federal budget and the deficit.

But it seems that hyperinflation is not a worry; finding and qualifying for low interest loans will be.

Has Mrs Yellen factored in that there are two apposing factors in the job market right now? Yes, there is job growth but there is also the Boomer generation retiring. Those vacancies are being filled by the Millenials and Echo Boomers. So what we are experiencing is more a changing of the guard which is a phase rather than a trend in my opinion.

Good points, plus how much of the job growth is merely estimated based on some serious fudged data?

I know half a dozen recent college graduates in STEM careers that have not yet found jobs, three of who are minorities (2 women , and 1 black dude). This is far from a robust job market, and now Yellin is about to tighten credit more?

Sounds like something is driving US monetary policies that are not within our borders or control.

 

[JimBowie1958]

Putting you money on the roulette wheel table is not investing.

Agreed, that is why I don't go play games of random chance with odds in house favor to fund my retirement.

I maintain a diversified portfolio of stock and bond mutual funds instead of stashing my money in a mattress and predicting impending doom over and over while ending up with a much smaller stash.

Rome wasn't razed in a single day.

 

[JimBowie1958]

Billionaire Warns: Yellen Collapse 'Will Be Unlike Any Other'

You realize that is an advertisement right?

It looks like an article with big fear mongering headline, then goes into great details about "Carr’s Peak Profits System" and how gloriously those who use it can profit in the upcoming collapse, closing with:

In a new video called the Peak Profits System, Carr describes his system in detail and how anyone can use it to protect their wealth from the next stock market collapse (Click Here to Watch the Video)

Great source man.

The dude is using these factoids to sell his book and you think that discredits the facts used?

Please explain how that works.

 

[oldfart]

So we have yet another article from the inflationista press proclaiming that inflation and interest rates are about to rise. Despite being completely wrong for six straight years and having put forward dozens of entertaining reasons for being wrong (the latest being "miracles") they have the same prediction again, and yes, it includes the BIS.

But go ahead, invest based on these people. They are likely to be right sometime in the next two decades. If you have anything left to invest.

Obviously you haven't been grocery shopping or driven a car in the past few years.

I'm quasi-retired and live comfortably and modestly. I drive a well-maintained 2004 car and do grocery shopping. My only debt is commercial mortgages on some real estate investments. I also lived through the 1973 oil shock and the 20% interest rates. Before you get too wound up on how bad inflation is, try talking to others that navigated a business through the Nixon-Ford debacle.

 

[SteadyMercury]

The dude is using these factoids to sell his book and you think that discredits the facts used?

Please explain how that works.

It works in that it is a poor source because an obvious bias in his conclusions meant to motivate others to buy his product causes one to question anything he's brought up to support those conclusions.

"Market collapse is coming, buy my products and I'll show you how to profit from it" is hardly a source I'd use for good analysis on the future of the stock market.

 

[EdwardBaiamonte]

. This is far from a robust job market, and now Yellin is about to tighten credit more?
.

The Fed does not create jobs, inventors do that. Do you think the Fed created Apple?? Do you understand?

 

[Rshermr]

. This is far from a robust job market, and now Yellin is about to tighten credit more?
.

The Fed does not create jobs, inventors do that. Do you think the Fed created Apple?? Do you understand?

Did you think you said something profound, me boy????
Did you know that 95% of those things for sale have already been invented, or is that too much for your tiny little brain, dipshit.
Your hero, Reagan knew that. Try some reading, if you are capable.

 

[EdwardBaiamonte]

Did you know that 95% of those things for sale have already been invented,

those things??? what things? you're so addicted to verbal violence you forget to make your point, but then again maybe the violence is because in your heart you know you have no point to make? Either way you should be ashamed of yourself.

 

[Shanty]

Tightening now will not be good for the economy.

 

[EdwardBaiamonte]

Tightening now will not be good for the economy.

good boy , and can you say why it would not be good and how you got to be smarter than Janet Yellen?

 

[JimBowie1958]

. This is far from a robust job market, and now Yellin is about to tighten credit more?
.

The Fed does not create jobs, inventors do that. Do you think the Fed created Apple?? Do you understand?

Did you think you said something profound, me boy????
Did you know that 95% of those things for sale have already been invented, or is that too much for your tiny little brain, dipshit.
Your hero, Reagan knew that. Try some reading, if you are capable.

thanks for handling my light work.

 

[EdwardBaiamonte]

The Fed does not create jobs, inventors do that. Do you think the Fed created Apple?? Do you understand?

Did you think you said something profound, me boy????
Did you know that 95% of those things for sale have already been invented, or is that too much for your tiny little brain, dipshit.
Your hero, Reagan knew that. Try some reading, if you are capable.

thanks for handling my light work.

so you can tell us what Riusmer meant? Are you afraid to try?

 

[JimBowie1958]

Did you think you said something profound, me boy????
Did you know that 95% of those things for sale have already been invented, or is that too much for your tiny little brain, dipshit.
Your hero, Reagan knew that. Try some reading, if you are capable.

thanks for handling my light work.

so you can tell us what Riusmer meant? Are you afraid to try?

It's rather obvious; you don't understand it?

 

[EdwardBaiamonte]

thanks for handling my light work.

so you can tell us what Riusmer meant? Are you afraid to try?

It's rather obvious; you don't understand it?

dear, if its so obvious why are you so afraid to explain it? Are you at least fooling yourself?

 

[JimBowie1958]

so you can tell us what Riusmer meant? Are you afraid to try?

It's rather obvious; you don't understand it?

dear, if its so obvious why are you so afraid to explain it? Are you at least fooling yourself?

Why do you have this fixation about fear? Why would I fear to take a wild ass guess if I wanted to?

 

[Shanty]

Tightening now will not be good for the economy.

good boy , and can you say why it would not be good and how you got to be smarter than Janet Yellen?

Sure, princess. The job markets are still recovering from the Bush/GOP economic disaster, and are still vulnerable to higher interest rates. If it were me, I'd shoot for a 4%-4 1/2% inflation target, proving the job markets resilient, and bringing inflation up to spur investment.

 

[Toro]

So we have yet another article from the inflationista press proclaiming that inflation and interest rates are about to rise. Despite being completely wrong for six straight years and having put forward dozens of entertaining reasons for being wrong (the latest being "miracles") they have the same prediction again, and yes, it includes the BIS.

But go ahead, invest based on these people. They are likely to be right sometime in the next two decades. If you have anything left to invest.

I'm not sure why interest rates wouldn't rise. The Fed has already begun it's tightening cycle. Unemployment has fallen a lot. The economy is doing well. Labor markets amongst skilled workers are tight. By most accounts, QE has depressed the long-end by 150-200 bps. BB-rated debt has a 4-handle. I'm not in the inflation camp (at least not yet), but with the end of QE on the horizon and slack coming out of the economy, I'd be shocked if rates didn't start rising within the next few years.

On top of that, interest rates in some countries are at, literally, multi-century lows.

 

[Toro]

Tightening now will not be good for the economy.

good boy , and can you say why it would not be good and how you got to be smarter than Janet Yellen?

Sure, princess. The job markets are still recovering from the Bush/GOP economic disaster, and are still vulnerable to higher interest rates. If it were me, I'd shoot for a 4%-4 1/2% inflation target, proving the job markets resilient, and bringing inflation up to spur investment.

Why would 4% inflation spur investment?

 

[EdwardBaiamonte]

Sure, princess. The job markets are still recovering from the Bush/GOP economic disaster, and are still vulnerable to higher interest rates.

so you know this but Yellen does not? How is that possible given her background versus yours?