Economic nonsense comes a dime a dozen. For example, Federal Reserve Chair Janet Yellen “think(s) we have a healthy economy now.” She even told the University of Michigan’s Ford School of Public Policy so earlier this week. Does she know what she’s talking about?
Somehow, this cartoon never gets old…
If you go by a partial subset of the ‘official’ government statistics, perhaps, it appears she does. The unemployment rate is at 4.5 percent, which is considered full employment. What’s more, inflation is ‘reasonably close’ to the Fed’s 2-percent inflation target. But what does this mean, really?
According to Fed Chair Yellen, it means that now’s the time to tighten up the nation’s monetary policy.
Behold this display of awesomeness, citizen. Doesn’t it prove that central planning “works” after all? Unfortunately the ointment is never entirely fly-free, especially when one is pondering statistical aggregates – click to enlarge.
By now you’ve likely seen this upcoming – choice – quote from Yellen. Nonetheless, we can’t resist repeating its remarkable idiocy. For Yellen, who was in the greater Detroit metropolitan area, was kind enough to humor us all with a nifty automotive analogy to explain how to go about normalizing monetary policy. Here Yellen elaborates with a variety of technical terms:
“Whereas before we had our foot pressed down on the gas pedal trying to give the economy all the oomph we possibly could, now allowing the economy to kind of coast and remain on an even keel – to give it some gas but not so much that we are pressing down hard on the accelerator – that’s a better stance of monetary policy. We want to be ahead of the curve and not behind it.”
…click on the above link to read the rest of the article…