Yes she will.
Boy, “civil wars” seem to be breaking out all over. Republicans, Democrats (though they seem to have crushed dissent), and now the Fed.
It seems like there are multiple Fed Chairs now since Yellen officially took the helm. Stanley Fischer almost feels like a Co-Chair instead of Vice-Chair.
This is coming from Larry Summers. Larry Summers, Treasury Secretary to Bill Clinton and likely member of any Hillary Clinton team.
We’ve been told forever that the Federal Reserve is “independent” and apolitical. That is a myth. (That’s the nice word.) Of course it’s political.
Really, in the United States, a place where we are supposed to be economically free, we shouldn’t be discussing the disposition of a financial politburo any way. There should be no Federal Reserve politburo.
As we’ve said before Obamacare is a dysfunction generating machine. On all levels it’s rotten. This is what happens when the planners try to plan a vast swathe of the largest economy on earth. It is hubris. It is arrogance. It’s a disaster.
Remember, that the architect of Obamacare Johnathan Gruber (who was paid over $6 million for his “work”) said the only reason Obamacare passed was because the voting public was “stupid.”
As I look out the window and see a half completed house across the street that the neighborhood didn’t want I am reminded that real estate guys are debt fiends by nature. (At least that has been my experience.)
We think. All indications are that it will happen though. Doesn’t it make sense for the whole world to wait with bated breath for the decision of an economic politburo? So capitalistic.
As we’ve said China is driving things economically right now. The Federal Reserve doesn’t want to say it. It wants everyone to think that though our boat is leaking it is unlikely to leak as much as the rest of the the world’s economic “boats.” And right now that may be true. But we are still taking on water. The Great Economic Experiment post 2008 is failing, as many of the more market oriented have long predicted, and now the American central bank has very few options.
Guess what? 0% interest rates are highly addictive. And not just in the psychological sense. No, the addiction is physical and therefore that much more difficult to break. For many institutions super cheap money is necessary even to function.
Some wonder if this is even true for the US government itself.
Now I know I am getting older. There is quite a lot to be said for having an advisor who at least knows what rising interest rates feel like.
Peter Schiff and I diverge on some important points. For instance I don’t think he gives the Chinese economic system a hard enough time. I think he totally recognizes the crony nature of the place but I think it’s more fragile than he does.
And he’s been plenty wrong at times. (Who hasn’t been?)
The Chinese have just cut rates and reduced the reserve requirements for banks. Now US stock futures are indicating a strong open to the upside. See, everything is fine. At least if you work for a high frequency trading firm.
Wall Street broadly is hoping, praying, that the central bank mojo will work again. We’ll see.
At this point any rate hike looks like a big giant excuse for people to sell off stocks. People want to sell, really sell, one can feel it, but people don’t want to fight the Fed. However, if Yellen shoots a flare into the sky people will move on it. People just want a reason. Which is why Yellen probably won’t move rates.
It would be a pretty bold move for Yellen to hike in the midst of what looks like a possible looming recession in much of the world (Brazil,
Got to have an official fall guy I guess. This fellow was sufficiently powerless so he got pinned.
It sure is..Sure is…
By David Stockman
The mainstream economics narrative is so far down the monetary rabbit hole that the blinding clarity of the chart below has no chance whatsoever of seeing the light of day. That’s because it dramatizes the real truth regarding all the Fed gibberish about “accommodation” and “stimulus”. Namely, that what lies beneath its “extraordinary measures”, such as ZIRP, QE, wealth effects and the rest of the litany, is a central banking regime that systematically destroy savers.