{"id":2427,"date":"2014-12-04T06:50:15","date_gmt":"2014-12-04T11:50:15","guid":{"rendered":"http:\/\/olduvai.ca\/?p=2427"},"modified":"2014-12-04T06:50:15","modified_gmt":"2014-12-04T11:50:15","slug":"b-dud-explains-the-feds-economic-coup-or-why-every-asset-price-is-manipulated-david-stockmans-contra-corner","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=2427","title":{"rendered":"B-Dud Explains The Fed\u2019s Economic Coup\u2014-Or Why Every Asset Price Is Manipulated | David Stockman&#8217;s Contra Corner"},"content":{"rendered":"<p><a href=\"http:\/\/davidstockmanscontracorner.com\/why-every-asset-price-which-influences-monetary-policy-transmission-is-now-manipulated-b-dud-explains-the-feds-economic-coup\/\">B-Dud Explains The Fed\u2019s Economic Coup\u2014-Or Why Every Asset Price Is Manipulated | David Stockman&#8217;s Contra Corner<\/a>.<\/p>\n<p style=\"box-sizing: border-box; word-wrap: break-word;\">Keynesian economists are annoying enough when they are pitching inflated financial assets on Wall Street or the supposed curative powers of fiscal deficits on Capitol Hill. But they become positively dangerous when they populate the Eccles Building and usurp control of the nation\u2019s\u00a0capital and money markets lock, stock and barrel in the name of \u201cmonetary accommodation\u201d.<\/p>\n<p style=\"box-sizing: border-box; word-wrap: break-word;\">Needless to say, the Fed is presently\u00a0over-run with Keynesian money printers led\u00a0by Janet Yellen and Stanley Fischer.\u00a0Both of these famous PhDs are actually proponents of a primitive macroeconomic doctrine that should be called \u201cbathtub economics\u201d. \u00a0In their wisdom, these doctors of economics have\u00a0simply postulated that the nation\u2019s\u00a0economic output\u00a0<em style=\"box-sizing: border-box; word-wrap: break-word;\"><strong style=\"box-sizing: border-box; word-wrap: break-word; font-weight: bold;\">\u201cshould\u201d<\/strong><\/em>\u00a0be at aggregate levels\u00a0which far exceed current production, and that the resulting shortfall\u00a0from\u00a0\u201cpotential\u201d\u00a0output, incomes and jobs is due to insufficient \u201caggregate demand\u201d.<\/p>\n<p style=\"box-sizing: border-box; word-wrap: break-word;\">This purported \u201coutput gap\u201d is conveniently self-serving. It has been interpreted to mean\u00a0that the Fed has a plenary mission to\u00a0fill-up the nation\u2019s economic\u00a0bathtub by generating sufficient incremental\u00a0aggregate demand to\u00a0off-set the\u00a0shortfall. This demand plugging function, in turn, is\u00a0to be accomplished\u00a0by the constant\u00a0intervention of the Fed\u2019s open market desk into money and capital markets.\u00a0So doing, it is\u00a0empowered to\u00a0manipulate, massage, twist, bend and pump any financial variable that in\u00a0its wisdom\u00a0is\u00a0deemed to\u00a0influence the\u00a0transmission of its monetary policy (i.e.\u201daggregate demand\u201d stimulus)\u00a0into the real economy.<\/p>\n<p style=\"box-sizing: border-box; word-wrap: break-word;\">&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>B-Dud Explains The Fed\u2019s Economic Coup\u2014-Or Why Every Asset Price Is Manipulated | David Stockman&#8217;s Contra Corner. Keynesian economists are annoying enough when they are pitching inflated financial assets on Wall Street or the supposed curative powers of fiscal deficits on Capitol Hill. But they become positively dangerous when they populate the Eccles Building and [&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":[1619,303,305,426,467],"class_list":["post-2427","post","type-post","status-publish","format-standard","hentry","category-economics","tag-asset-inflation","tag-fed","tag-federal-reserve","tag-inflation","tag-keynesian-economics"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2427","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=2427"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2427\/revisions"}],"predecessor-version":[{"id":2428,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2427\/revisions\/2428"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2427"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2427"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2427"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}