Bernanke’s remarks were long and ponderous, Fedspeak plus excerpts from a typical intermediate-macroeconomics textbook. One thing this newest piece of Fedspeak surely won’t do is give us maximum employment and price stability. FULL ARTICLE by Roger W. Garrison
Source link: http://archive.mises.org/14282/what-can-we-expect-next-from-the-bernanke-fed/
What Can We Expect Next from the Bernanke Fed?
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Bernanke, and THE FEDERAL RESERVE, is not here for our benefit.
Bernanke, and THE FEDERAL RESERVE, is here for our wealth and our enslavement, for the benefit of the world elite.
Plank 5 of the Communist Manifesto;
5. Centralization of credit in the hands of the state, by means of a national bank with State capital and an exclusive monopoly.
Americans call it the Federal Reserve which is a privately-owned credit/debt system allowed by the Federal Reserve act of 1913. All local banks are members of the Fed system, and are regulated by the Federal Deposit Insurance Corporation (FDIC) another privately-owned corporation. The Federal Reserve Banks issue Fiat Paper Money and practice economically destructive fractional reserve banking.
Know the enemy,
Mike
“The Committee expects to keep the target for the federal funds rate low for longer than markets expect.”
Let’s see… the Fed won’t raise rates until some date after the market expects it to. But at the present moment the market must expect the Fed to raise rates sometime in the future. Therefore, the Fed can’t raise rates in the present. But this is true for all “presents”; therefore the Fed will never raise rates again.
This is also reminiscent of the paradox of the unexpected hanging – the prisoner is told he will be hung one day next week, but it will be a surprise. Therefore he concludes it can’t happen Friday, because then he would expect it. Having ruled out Friday, he can then rule out Thursday, by the same logic, and similarly Wednesday, Tuesday, and Monday. He concludes that he won’t be hanged. When the executioner comes, he is, indeed surprised.
As far as drawing any conclusions from Bernanke’s word games, I remind myself: “if there is an exception to every rule, every rule must have at least one exception, the exception to this one being that it has no exception.”
Also: “we learn from history that we do not learn from history.”
If Bernanke must indulge in paradoxical statements, it would be refreshing if he used Socrates’ statement that the only thing he knew was that he knew nothing.
Very nice piece!
Another finger in the dike. The consequences to our children is foreseen. What responsible person would even suggest this? It is individuals such as Bernake that have destroyed the economic money system. Give a man playing God a computer to make digital money and look out. Who benefits is the question?
Just never forget that the fed defines price stability in terms of price inflation.
“For longer than the Fed expects markets to expect”. Great stuff. Speculating on speculators or, if you will, Speculation Squared. The unfortunate truth of our current reality.
But, what if the market expects the Fed to expect what the market expects and acts accordingly? Will the Fed then do something when it expects the market to expect the Fed expecting of the market?
Just as it was unthinkable to double the balance sheet a while back, it is still unthinkable to implement negative interest rates.
Now the question is rather, is it impossible?
Sweden say “No problem!”
“Fed to Buy $500 Billion in US Debt: Medley”
http://www.cnbc.com/id/39760453
The Federal Reserve plans to launch a program to buy $500 billion worth of U.S. Treasurys over six months and leave itself room for more buying, said a report from influential consultancy Medley Global Advisors, a source told Reuters Wednesday.
“The Fed will reach a majority consensus to embark on a new round of sizable Treasury purchases at the end of its two-day November meeting, aimed at raising inflation expectations and gradually … satisfying both sides of its inflation/growth mandate,” the source said, reading directly from the report.”
In a 1-1/2-page report titled: “Fed: Cutting Off The Tail”, Medley said, according to the source: “they will try to manage expectations that this will immediately cause the unemployment rate to fall or produce (an) immediate growth spurt.”
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