{"id":12070,"date":"2015-09-10T06:52:51","date_gmt":"2015-09-10T11:52:51","guid":{"rendered":"http:\/\/olduvai.ca\/?p=12070"},"modified":"2015-09-10T06:52:51","modified_gmt":"2015-09-10T11:52:51","slug":"why-the-keynesian-chorus-is-cackling-like-chicken-little","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=12070","title":{"rendered":"Why The Keynesian Chorus Is Cackling Like Chicken Little"},"content":{"rendered":"<h3 class=\"entry-title\"><a href=\"http:\/\/davidstockmanscontracorner.com\/why-the-keynesian-chorus-is-cackling-like-chicken-little\/\" target=\"_blank\">Why The Keynesian Chorus Is Cackling Like Chicken Little<\/a><\/h3>\n<p>This is\u00a0getting way too stupid. The Keynesian Chorus has launched\u00a0a\u00a0full blast trilling campaign, emitting a\u00a0shrill cackle of warnings\u00a0against a Fed rate hike. Yes, 80 months of pumping\u00a0free money into the canyons of Wall Street is not enough.<\/p>\n<p>Why?<\/p>\n<p>Well, this\u00a0is hard to type with a straight face, but according to the cackling gaggle of Keynesian Chicken Littles,\u00a0<em><strong>the Fed has already tightened too much!<\/strong><\/em><\/p>\n<blockquote><p>Paul Kasriel, the former chief economist at Northern Trust who now writes \u201cThe Econtrarian\u201d blog, argues that \u201cin recent months Fed monetary policy has become\u00a0<em><strong>downright restrictive<\/strong><\/em>.\u201d<\/p><\/blockquote>\n<p>Would that Kasriel could be dismissed as merely a Wall Street shill, but its seems that he\u2019s taking his cues directly\u00a0from\u00a0John Maynard Keynes\u2019 very vicar on earth. That would be\u00a0Larry Summers, who yesterday blogged an identical bit of tommyrot:<\/p>\n<blockquote><p>I believe the case against a rate increase has become somewhat more compelling even than it looked two weeks ago\u2026..First,\u00a0<em><strong>markets have already done the work of tightening. \u00a0<\/strong><\/em>The U.S. stock market is worth $700 billion less than it was 2\u00a0weeks ago and credit spreads have widened noticeably. \u00a0<em><strong>Financial conditions as measured by Goldman Sachs or the Chicago Fed index have tightened in the last 2 weeks by the impact equivalent of more than a 25 BP tightening. \u00a0<\/strong><\/em>So even if resisting inflation required a 25 BP tightening as of two weeks ago, this is no longer the case.<\/p><\/blockquote>\n<p>You can\u2019t\u00a0make this stuff up!\u00a0 And you don\u2019t have to mince any words, either. This whole mantra that\u00a0<em><strong>free money<\/strong>\u00a0<strong>is actually tight money<\/strong>\u00a0<\/em>is the product of a tiny circle of academic scribblers and Wall Street hirelings who have invented what amounts to an alternate vocabulary of economic newspeak.<\/p>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Why The Keynesian Chorus Is Cackling Like Chicken Little This is\u00a0getting way too stupid. The Keynesian Chorus has launched\u00a0a\u00a0full blast trilling campaign, emitting a\u00a0shrill cackle of warnings\u00a0against a Fed rate hike. Yes, 80 months of pumping\u00a0free money into the canyons of Wall Street is not enough. Why? Well, this\u00a0is hard to type with a straight [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5979,2120,303,305,1154,467,2151,534,661,860,1939],"class_list":["post-12070","post","type-post","status-publish","format-standard","hentry","category-economics","tag-contracorner","tag-david-stockman","tag-fed","tag-federal-reserve","tag-interest-rate-policy","tag-keynesian-economics","tag-monetary-easing","tag-monetary-policy","tag-qe","tag-wall-street","tag-zirp"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/12070","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=12070"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/12070\/revisions"}],"predecessor-version":[{"id":12071,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/12070\/revisions\/12071"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=12070"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=12070"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=12070"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}