Posts filed under “Politics”
One of my favorite thought experiments is the careful-what-you-wish-for scenario. I was reminded of its utility during Federal Reserve chief Janet Yellen’s Congressional testimony the other day.
Consider the critique of the Fed by some members of Congress. As the New York Times described it, the three-hour hearing was “testy” as “Republicans on the House Financial Services Committee accused Janet L. Yellen, chairwoman of the Fed, of using her office to advance liberal policy goals.”
I find it rather surprising that the Fed’s mandated goals of containing inflation (check!) and reducing unemployment (check!) are deemed liberal. That is how topsy-turvy the partisan world of Washington has become during the past decade.
“You’ve already made monetary policy a partisan political exercise,” declared Representative Scott Garrett, a New Jersey Republican, in a partisan political response to Yellen’s House testimony yesterday.
The upside-down worldview that statement reflects seems to be lost on the Congressman. It’s an exercise in massive projection. No wonder Congress’s approval ratings keep breaking all sorts of record lows.
I suspect the contingent in Congress that wants to audit the Fed really hasn’t thought through its goals. As we shall see below, the Fed bashers might not be happy with the results.
Fascinating flowchart from Deutsche Bank: It is wrong to think that contagion stems only from Grexit. An excessive compromise with Greece could result in moral hazard, particularly in relation to structural reforms. This could undermine the medium-term stability of the euro area. The tail risk is that Greek politicians try to leverage too much the fear…Read More
“The Plutonomy is here, is going to get stronger, its membership swelling. Toys for the wealthy have pricing power, and staying power.” -Ajay Kapur, global strategist at Citigroup Today is the 8th anniversary of a fascinating set of observations via Robert Frank in the Wall Street Journal on income inequality. 8 years ago,…Read More
The Gallup polling organization is in the business of taking the pulse of the American public. A new survey detects a surprising shift in perceptions. It points not just to the nation’s sour mood and disappointment with the drawn-out recovery, but also to a sense that something different is now wrong with the U.S. In…Read More
Source: OCCRP From OCCRP: Call it the Laundromat. It’s a complex system for laundering more than $20 billion in Russian money stolen from the government by corrupt politicians or earned through organized crime activity. It was designed to not only move money from Russian shell companies into EU banks through Latvia, it had the added…Read More