Sunday, January 4, 2009

"Inflation target would aid deflation fight" (cough - bullshit - cough)

Reuters article

Bullard: Inflation target would aid deflation fight
Sat Jan 3, 2009 6:19pm EST

SAN FRANCISCO (Reuters) - Federal Reserve Bank of St Louis President James Bullard said on Saturday that an explicit inflation target would help policy-makers prevent either deflation or inflation from taking hold in the United States.

"An inflation target would help focus expectations," he told a panel discussion during the annual meeting of the American Economic Association.

Bullard said that with Fed interest rates nearly at zero, an inflation target would also help send signals to the private sector that would normally be communicated by changes in official borrowing costs.

"Maybe now would be a particularly good time to do that because you have this possibility of expectations drifting off to deflation or a lot of inflation. ... I think it would help," said Bullard, who is not a voting member of the Fed's interest rate-setting committee this year.

(Reporting by Alister Bull, editing by Leslie Adler)

And San Francisco Fed’s Yellen joins the clueless “stimulus chorus:”
Fed’s Yellen Supports ‘Substantial’ Economic Stimulus
By Vivien Lou Chen

Jan. 4 (Bloomberg) -- The U.S. economy faces a “serious risk” of stagnating for an extended period of time and “it’s worth pulling out all the stops” on fiscal stimulus, said Federal Reserve Bank of San Francisco President Janet Yellen.

“The current downturn is likely to be far longer and deeper than the ‘garden-variety’ recession,” Yellen said in the text of a speech today in San Francisco. “If ever, in my professional career, there was a time for active, discretionary fiscal stimulus, it is now.”

So, now we have two other members of the fed who do not understand history, economics, or math.

Hey, if I can’t make the Fed go away, then perhaps we can require that they at least learn a little math from the good Professor Bartlett: Spend some Time with the Good Dr. Bartlett…

Okay, I know it’s not exactly conventional to combine music with economics, but hey, I like it and if you don’t – well, don’t click the play button!

Sorry, St. Louis, there are no “inspiring” songs that I could find that would be fun to twist and weave into my anti-fed theme. While I didn’t find anything cool for St. Louis, I did find a guitar and vocal I like for San Francisco – enjoy:

And, if Bullard ever wants to visit the Fed’s Janet Yellen in San Francisco… be sure to wear some flowers in your hair!

Oh, and Denninger is backing me up with a great piece: Lyin' Bankers, Meet Mathematics. No music there, sorry ;-)