{"id":15413,"date":"2015-12-18T07:25:24","date_gmt":"2015-12-18T12:25:24","guid":{"rendered":"http:\/\/olduvai.ca\/?p=15413"},"modified":"2015-12-18T07:25:47","modified_gmt":"2015-12-18T12:25:47","slug":"sell-the-bonds-sell-the-stocks-sell-the-house-dread-the-fed","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=15413","title":{"rendered":"Sell The Bonds, Sell The Stocks, Sell The House \u2014\u2013Dread The Fed!"},"content":{"rendered":"<header>\n<h3 class=\"entry-title\"><a href=\"http:\/\/davidstockmanscontracorner.com\/sell-the-bonds-sell-the-stocks-sell-the-house-dread-the-fed\/\" target=\"_blank\">Sell The Bonds, Sell The Stocks, Sell The House \u2014\u2013Dread The Fed!<\/a><\/h3>\n<p class=\"entry-meta\">There is going to be carnage in the casino, and the proof lies in the transcript of Janet Yellen\u2019s press conference. She did not say one word about the real world; it was all about the hypothecated world\u00a0embedded in the Fed\u2019s tinker toy model of the US economy.<\/p>\n<\/header>\n<div class=\"entry-content\">\n<div class=\"pf-content\">\n<p>Yes, tinker toys are what kids used to play with back in the 1950s and 1960s, and that\u2019s when Janet acquired her school-girl model of the nation\u2019s\u00a0economy.<\/p>\n<p>But since that model is so frightfully primitive, mechanical, incomplete, stylized and obsolete, it tells almost nothing of relevance about where the markets and economy now stand; or\u00a0what forces are driving them; or\u00a0where they are\u00a0headed in the period just ahead.<\/p>\n<p>In fact, Yellen\u2019s tinker toy model is so\u00a0deficient\u00a0as to\u00a0confirm that\u00a0she and her posse are essentially flying blind.\u00a0That alone\u00a0should give investors\u00a0pause\u2014-especially because\u00a0Yellen\u00a0confessed explicitly that \u201cmonetary policy is an exercise in forecasting\u201d.<\/p>\n<p>Accordingly,\u00a0her answers were riddled with\u00a0ritualistic reminders about all the dashboards, incoming data and economic system telemetry that the Fed is vigilantly monitoring.\u00a0<em><strong>But all that minding of everybody else\u2019s business is\u00a0not a virtue\u2014-its proof\u00a0that Yellen is the ultimate Keynesian catechumen.<\/strong><\/em><\/p>\n<p>This stupendously na\u00efve old school marm still\u00a0believes the received\u00a0Keynesian\u00a0scriptures as penned by\u00a0the 1960s-era\u00a0apostles\u00a0<em><strong>James<\/strong><\/em>(Tobin),\u00a0<em><strong>John<\/strong><\/em>\u00a0(Galbraith),\u00a0<em><strong>Paul<\/strong><\/em>\u00a0(Samuelson) and\u00a0<em><strong>Walter<\/strong><\/em>\u00a0(Heller).<\/p>\n<p>But c\u2019mon.Those ancient texts have no relevance to the debt-saturated, state-dominated, hideously over-capacitated\u00a0global economy of 2015. They just\u00a0convey\u00a0a stupid little paint-by-the-numbers simulacrum of what a purportedly closed domestic economy looked like even back then.<\/p>\n<p>That is, before\u00a0Richard Nixon had finally destroyed Bretton\u00a0Woods and turned over the Fed\u2019s printing presses to power aggrandizing PhDs; and before Mr. Deng\u00a0had thrown out Mao\u2019s little red book in favor of a central bank based credit Ponzi.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Sell The Bonds, Sell The Stocks, Sell The House \u2014\u2013Dread The Fed! There is going to be carnage in the casino, and the proof lies in the transcript of Janet Yellen\u2019s press conference. She did not say one word about the real world; it was all about the hypothecated world\u00a0embedded in the Fed\u2019s tinker toy [&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":[936,124,7223,5979,2120,303,305,451,534,2942,4219],"class_list":["post-15413","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bretton-woods","tag-central-banks","tag-cheap-credit","tag-contracorner","tag-david-stockman","tag-fed","tag-federal-reserve","tag-janet-yellen","tag-monetary-policy","tag-ponzi","tag-richard-nixon"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15413","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=15413"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15413\/revisions"}],"predecessor-version":[{"id":15415,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15413\/revisions\/15415"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15413"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15413"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}