tag:blogger.com,1999:blog-11719208.post113203297348459365..comments2023-11-05T04:36:14.223-08:00Comments on The Mess That Greenspan Made: Repos and Eurodollars in Stealth ModeTimhttp://www.blogger.com/profile/16530974968126497397noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-11719208.post-1132080152797441632005-11-15T10:42:00.000-08:002005-11-15T10:42:00.000-08:00Speaking of euthanasia, I hear the Bernanke Figure...Speaking of euthanasia, I hear the Bernanke Figure-head Unit is being processed for re-insertion into Remulak at this very moment, by a group of aliens who are even further away from Earth than Remulak is.<BR/><BR/>I hope that Tim will be able to give us a blow-by-blow report on the re-insertion process, but meanwhile, here is what the Bernanke Figurehead Unit has to say about his favorite subject:<BR/><BR/><I>One possible step toward greater transparency would be for the FOMC to state explicitly the numerical inflation rate or range of inflation rates it considers to be consistent with the goal of long-term price stability, a practice currently employed by many of the world’s central banks. I have supported this idea in my academic writings and in speeches as a Board member.<BR/><BR/>Providing quantitative guidance about the meaning of “long-term price stability” could have several advantages, including further reducing public uncertainty about monetary policy and anchoring long-term inflation expectations even more effectively.<BR/><BR/>I view the explicit statement of a long-run inflation objective as fully consistent with the Federal Reserve’s current policy approach, including its appropriate emphasis on the role of judgment and flexibility in policymaking. Most important, this step would in no way reduce the importance of maximum employment as a policy goal. Indeed, a key justification for this action is its potential to contribute to stronger and more stable employment growth by further stabilizing inflation and inflation expectations. In any case, I assure this Committee that, if I am confirmed, I will take no precipitate steps in the direction of quantifying the definition of long-run price stability. This matter requires further study at the Federal Reserve as well as extensive discussion and consultation. I would propose further action only if a consensus can be developed that taking such a step would further enhance the ability of the FOMC to satisfy its dual mandate of achieving both stable prices and maximum sustainable employment.</I><BR/><BR/>I don't quite understand all this fancy language, but the phrase "[p]roviding quantitative guidance about the meaning of 'long-term price stability'" does seem to indicate that the Kohnheads, under the leadership of the Bernanke Figurehead Unit, will be changing the way they measure core inflation on Remulak on a fairly frequent basis.<BR/><BR/><B>Right on! Way to target, bro!</B>Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11719208.post-1132078021319783802005-11-15T10:07:00.000-08:002005-11-15T10:07:00.000-08:00You don't report it if you can't control it? Chris...You don't report it if you can't control it? Christ sakes. That guy should be euthanized.<BR/><BR/>I LOVE the swamp metaphor!<BR/><BR/>BTW-I know for a fact there are mainstream economists out there looking at this with disdain and who have not yet spoken up. I do not know WHY they have not spoken up.<BR/><BR/>He have melted the damned internet fiber optics to get this message out and to get some info back. This will be like the China Unocal deal wherein the announced deal will shock all but the damned bloggers who knew it was coming.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11719208.post-1132077411836009532005-11-15T09:56:00.000-08:002005-11-15T09:56:00.000-08:00Look, I don't know what all this fuss is about. O...Look, I don't know what all this fuss is about. On Remulack, we have no Euro-dollars, no "repo agreements," and no "large time deposits." We only have small time deposits. So it's OK if the Khonheads don't count these tihngs as part of the money supply.<BR/><BR/>And who is this Milton Friedman kook, and what kind of swamp gas has he been spewing out of that Austria place anyway? And besides, we don't have Austria on Remulak.<BR/><BR/>I mean, why count something if you can't control it? <BR/><BR/>It's kind of like when you're overweight. The last thing on Earth (or Remulak) you want to do when you're overweight is get on the scale.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11719208.post-1132074427879881612005-11-15T09:07:00.000-08:002005-11-15T09:07:00.000-08:00The Fed is playing a game of chicken with dollar h...The Fed is playing a game of chicken with dollar holders WW. The more people are willing to absorb dollars, the braver they become. To believe in any inflation targeting is to believe in being a little bit pregnant. The only solution is to destroy the currency and have the blame fall on them.Anonymousnoreply@blogger.com