This is what markets are about nowadays? Waiting for pronouncements from the monetary politburo?
ANN SAPHIR. Ann Saphir with Reuters. Just to piggyback on the global considerations, as you say, the U.S. economy has been growing, are you worried that given the global interconnecting this, the low inflation globally, all of the other concerns that you just spoke about that you may never escape from this zero or lower bound situation.
CHAIR YELLEN. So, I would be very-- I would be very surprised if that’s the case. That is not the way I see the outlook or the way the committee sees the outlook. Can I completely rule it out? I can’t completely rule it out. But really that’s an extreme downside risk that in no way is near the center of my outlook.
WILLFARNABY: Hey Rock-a-Doodle, given the situation globally do you believe that if you do not crow we will never be able to see the sun shining again?
ROCK-A-DOODLE: So, I would be very-- very surprised if that’s the case. That is not the way I see the outlook or the way the committee sees the outlook. Can I completely rule it out? I can’t completely rule it out. But really that’s an extreme downside risk that in no way is near the center of my outlook.
I had no idea Janet Yellen was such a lightweight. If I was a fan of central banking I would be very concerned at this point in time. I would be surprised if they didn’t start screening her questions ahead of time and running her through the answers, because this is embarrassing. Does Yellen really think that rates can stay this low forever? Does she think that she can keep them that low permanently?
Of course even if Yellen scaled Mt. Sinai and warbled hosannas, while the financial press corps worshipped a Golden ( or paper mâché) Calf, rates would eventually go up.
Even if she deliberated over data within the walls of the monetary politburo aka the Ministry of Sound Money, and issued edicts through a tube to Winston Smith , who diligently informed citizens that rates have always been zero, are zero now, and will always be zero, rates would eventually go up.
Rock-a-Doodle bought into his own hype. People were gassing him and it ultimately led to his downfall because he thought he had powers that were actually impossible for man( or chicken) to wield. He lacked the scientific knowledge necessary to see that his worldview was flawed.
Janet Yellen buys into her hype. People are gassing her and will ultimately lead to our downfall because she apparently thinks she has powers that are actually impossible for man (or woman) to wield. She lacks the scientific knowledge necessary to see that her worldview is flawed.