Taylor Rule Says The Fed Should Be Tightening Now

[GeorgiaAvenger]

http://www.zerohedge.com/news/taylor...tightening-now

John Taylor would likely be Romney's Fed appointee. He would be an upgrade for sure, but doesn't get the big picture.

[acptulsa]

You know, there's yet another argument against the Fed here. In the 'seventies, they raise interest rates through the roof and we had stagflation. Now we've reduced them to zero and we have stagflation.

If I recall, they sold the Fed to us (in preference to the 'cross of gold') by telling us that manipulation of an elastic money supply will allow them to eliminate such stagnation forevermore. However, I don't recall ever hearing of such long-lasting and pernicious depressions before 1913. We're getting to the alleged very reason the Fed was created.

If it can't prevent these things, it has no reason to exist. At all.

[GeorgiaAvenger]

You know, there's yet another argument against the Fed here. In the 'seventies, they raise interest rates through the roof and we had stagflation. Now we've reduced them to zero and we have stagflation.

If I recall, they sold the Fed to us (in preference to the 'cross of gold') by telling us that manipulation of an elastic money supply will allow them to eliminate such stagnation forevermore. However, I don't recall ever hearing of such long-lasting and pernicious depressions before 1913. We're getting to the alleged very reason the Fed was created.

If it can't prevent these things, it has no reason to exist. At all.

We can give that argument once consumer prices his the roof, which they will.

I would like to see Ron Paul working with economists on making plans to replace our monetary order that he can give completed when it breaks down.

[Aurave]

Taylor rule, about as useful as Okuns law.

Although I guess I'd rather be shot in the arm instead of the chest, which is pretty much what avenger is saying as well.

[Seraphim]

Volker raised the interest rate in 1980 as the result of the stagflation of the 70's - to ring out inflation.

The Fed was politicized a very long time. Economically speaking, the Fed has been wrong about everything for decades - the mistakes are generally do to the Federal Government getting its hands in the pot.

It's no surprised the Neocon and Marxist wings of the government seized both the military and the printing press. A FascistoCommunist marriage.

I think Bernanke himself knows that at this point doing perpetual QE and inflating is a mistake - but with the rest of the world devaluing, and international trade the Altar and Saving Grace of the NWO - the dollar must be inflated at a similar pace to the Euro, Yen, Pound...

The general UN/WTO/IMF goal everywhere, including the USA - is militarize, socialize, inflate, use, robber barron the fuck out of the general populace and keep the military/banking empire moving along. Ho Hum.

Hmmmm why did Canada, of all the HIGHLY diplomatic countries in the world, remove it's embassy in Iran?

The East has the man on ground power. The West total air superiorty.





Could the waters decide the fate if both economic and military battle?



It's dawning on me. The end of the status quo is NIGH.



It amazes me that the complete military domination by a small faction of people from the West - can and only will be stopped by Russia and China.

You know, there's yet another argument against the Fed here. In the 'seventies, they raise interest rates through the roof and we had stagflation. Now we've reduced them to zero and we have stagflation.

If I recall, they sold the Fed to us (in preference to the 'cross of gold') by telling us that manipulation of an elastic money supply will allow them to eliminate such stagnation forevermore. However, I don't recall ever hearing of such long-lasting and pernicious depressions before 1913. We're getting to the alleged very reason the Fed was created.

If it can't prevent these things, it has no reason to exist. At all.

[Seraphim]

^^ That dawned on me as I wrote my post and I had to type it out...slightly off topic...but one thing led to another as they say.

Seriously though...Chinese officials muttering words of econmically nurfing Japanese bonds today - YIKES.

The shockwaves in every aspect of human life are getting more and more frequent and stronger.

[acptulsa]

All very true. I think I didn't express myself well, When I said, '...has no reason to exist', what I meant was, '...has no excuse to exist.' And I still believe it's a good argument for us to use.

[Seraphim]

I nit picked an otherwise good post. Sorry if I was a bit overzealous, lol.

All very true. I think I didn't express myself well, When I said, '...has no reason to exist', what I meant was, '...has no excuse to exist.'

[acptulsa]

I nit picked an otherwise good post. Sorry if I was a bit overzealous, lol.

Nope. It was a good rant. And I think '...excuse to exist' is a stronger and more effective way to make that argument, too. Enough better to make me glad I was induced to think of it. So, it worked for me.