{"id":18944,"date":"2016-03-17T10:44:59","date_gmt":"2016-03-17T15:44:59","guid":{"rendered":"http:\/\/olduvai.ca\/?p=18944"},"modified":"2016-03-17T10:45:18","modified_gmt":"2016-03-17T15:45:18","slug":"impaled-on-its-own-petard-the-feds-folly-festers-further","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=18944","title":{"rendered":"Impaled On Its Own Petard\u2014\u2014The Fed\u2019s Folly Festers Further"},"content":{"rendered":"<header>\n<h3 class=\"entry-title\"><a href=\"http:\/\/davidstockmanscontracorner.com\/impaled-on-its-own-petard-the-feds-folly-festers-further\/\" target=\"_blank\">Impaled On Its Own Petard\u2014\u2014The Fed\u2019s Folly Festers Further<\/a><\/h3>\n<p class=\"entry-meta\">Listening to even a small portion of Simple Janet\u2019s\u00a0incoherent babble makes very clear\u00a0that the nation\u2019s central bank is well and truly impaled on its own petard.\u00a0According to the dictionary, the latter term refers to\u2026..<\/p>\n<\/header>\n<div class=\"entry-content\">\n<div class=\"pf-content\">\n<blockquote><p><span class=\"st\" data-hveid=\"58\">\u2026\u2026..\u00a0a small bomb used for blowing up gates and walls when breaching fortifications. It is of French origin and dates back to the 16th century. A typical\u00a0<em><strong>petard<\/strong><\/em>\u00a0was a conical or rectangular metal device containing 2\u20133 kg (5 or 6 pounds) of gunpowder,\u00a0<em><strong>with a slow match for a fuse.<\/strong><\/em><\/span><\/p><\/blockquote>\n<p>Maybe that\u2019s what they have been\u00a0doing all along\u2014\u2013that is, waiting for their slow match monetary fuse to finally ignite the\u00a0next financial conflagration.<\/p>\n<p>After all,\u00a0the Fed is now\u00a087 months into its grand experiment with the\u00a0lunacy of zero interest rates. If\u00a0our monetary central planners\u00a0still can\u2019t see their way clear\u00a0to more than 38 bps of\u00a0normalization, then, apparently, they\u00a0intend to keep the casino gamblers in\u00a0free carry trade money until they finally blow themselves up\u2014\u2014just like they have already done twice this century.<\/p>\n<p>In fact, by Yellen\u2019s own bumbling admission the inhabitants of the Keynesian puzzle palace\u2014-into which the Eccles Building has long since\u00a0morphed\u2014\u2013can\u2019t see their way to much of\u00a0anything. They couldn\u2019t even decide if the risks to the outlook are balanced to the upside or downside. And that roundhouse kind of judgment isn\u2019t even remotely measureable or exacting; it\u00a0requires nothing more than\u00a0a binary grunt.<\/p>\n<p>As a practical matter, the joint\u00a0has\u00a0lapsed into a state of mental entropy\u2014\u2014apparently under the risible assumption that they have abolished the business cycle and have limitless time to normalize.\u00a0Yet we are already at month 81 of this so-called expansion, and the signs of approaching recession are cropping up daily.<\/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>Impaled On Its Own Petard\u2014\u2014The Fed\u2019s Folly Festers Further Listening to even a small portion of Simple Janet\u2019s\u00a0incoherent babble makes very clear\u00a0that the nation\u2019s central bank is well and truly impaled on its own petard.\u00a0According to the dictionary, the latter term refers to\u2026.. \u2026\u2026..\u00a0a small bomb used for blowing up gates and walls when breaching [&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":[122,125,5979,2120,303,305,451,467],"class_list":["post-18944","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-bank","tag-central-planning","tag-contracorner","tag-david-stockman","tag-fed","tag-federal-reserve","tag-janet-yellen","tag-keynesian-economics"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18944","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=18944"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18944\/revisions"}],"predecessor-version":[{"id":18946,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18944\/revisions\/18946"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18944"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18944"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18944"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}