{"id":2474,"date":"2014-12-05T06:54:30","date_gmt":"2014-12-05T11:54:30","guid":{"rendered":"http:\/\/olduvai.ca\/?p=2474"},"modified":"2014-12-05T06:54:30","modified_gmt":"2014-12-05T11:54:30","slug":"a-comprehensive-breakdown-of-americas-economic-house-of-cards-first-rebuttal","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=2474","title":{"rendered":"A Comprehensive Breakdown of America\u2019s Economic House of Cards | First Rebuttal"},"content":{"rendered":"

A Comprehensive Breakdown of America\u2019s Economic House of Cards | First Rebuttal<\/a>.<\/p>\n

I was going over some of my older posts to review\u00a0what was being discussed at the beginning of this year\u00a0and what the perspectives were at that time. \u00a0I found an interesting\u00a0piece I wrote at the beginning of the\u00a0year. \u00a0I had just watched Janet Yellen\u2019s inaugural\u00a0panel hearing in front of the congressional finance committee members on Cspan.\u00a0 It\u2019s basically a forum to allow the congressional financial committee members to directly pose comments and questions to the world\u2019s most influential banker, namely, the US Fed chairman.<\/p>\n

There were a few hardball questions but mostly just buttering up on Ms. Yellen from both sides of the aisle.\u00a0 Picking out a few of the interesting bits that came up in the course of discussion I was certain I saw a glimpse of honesty indicating\u00a0that problems are on the horizon, from Ms. Yellen. \u00a0The most notable commentary was her fairly forthright perspective that the CBO forward guidance depicted an imminent problem for America.\u00a0 What caught me a bit off guard was how easily the congressional finance committee members shrugged off the repetitive warnings from the Fed chair regarding this imminent problem.\u00a0\u00a0 There was no discussion about possible solutions to the problem or even calls for further investigation to the warnings.\u00a0 It was simply dismissed. \u00a0I found it incredibly ironic the one person in the world who is mandated\u00a0to continuously increase leverage to the US was the one warning congress to get its fiscal house in order. \u00a0Yet the congressional committee before her, acted as though they didn\u2019t hear it.<\/p>\n

However, subsequent to that initial committee hearing I\u2019ve not heard any additional warnings from the Fed about getting the America\u2019s\u00a0fiscal house in order. \u00a0It was a rare moment of honesty from a rookie chair and she apparently received a memo shortly thereafter informing her of the mistake. \u00a0Now let\u2019s take a look at specifically what Ms. Yellen was warning congress about. \u00a0The CBO publishes annual long term forward guidance to give the world an idea of where things will be for the US 25 years out given where we are today. \u00a0Forecasting so far into the future is no exact science and it relies heavily on assumptions. \u00a0And so let\u2019s take a look at the typical process.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

A Comprehensive Breakdown of America\u2019s Economic House of Cards | First Rebuttal. I was going over some of my older posts to review\u00a0what was being discussed at the beginning of this year\u00a0and what the perspectives were at that time. \u00a0I found an interesting\u00a0piece I wrote at the beginning of the\u00a0year. \u00a0I had just watched Janet […]<\/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":[1653,1654,195,353,1652],"class_list":["post-2474","post","type-post","status-publish","format-standard","hentry","category-economics","tag-cbo","tag-congressional-budget-office","tag-debt","tag-gdp","tag-us-economics"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2474","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=2474"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2474\/revisions"}],"predecessor-version":[{"id":2475,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2474\/revisions\/2475"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2474"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2474"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2474"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}