Is Janet Yellen Really Larry The Cable Guy? "Git 'er Done!" (Wants MORE QE)

Confounded Interest ^ | 11/14/2013 | Anthony B. Sanders

[whitedog57]

Janet Yellen, nominated to be the next chairman of the Federal Reserve, signaled she will carry on The Federal Reserve’s unprecedented stimulus until she sees improvement in an economy that’s operating well below potential. Here is her prepared statement.

“A strong recovery will ultimately enable the Fed to reduce its monetary accommodation and reliance on unconventional policy tools such as asset purchases. Supporting the recovery today is the surest path to returning to a more normal approach to monetary policy.”

“Unemployment is still too high, reflecting a labor market and economy performing far short of their potential.”

Of course, unemployment is a structural problem exacerbated by job outsourcing, regulations and … Obamacare. As we know, part-time jobs have been growing since 2008 while full-time employment has fallen.

Full-Time-vs-Part-time-16-plus-since-2000

There is little monetary policy can do to change the course of labor force participation (blue Line) and the civilian employment-to-population ratio (red line).

lfpcemppop

U3 unemployment and U6 Total unemployed, plus all marginally attached workers plus total employed part time for economic reasons remain stubbornly high.

u3u6un

The M1 Money Multiplier and M2 Money Velocity has been declining for some time and the big infusion of excess reserves into the Fed system (while not being loan out in sufficient quantity) indicates that current Fed policies are not working.

m1m2vel111413

My fear is that Janet Yellen will not only continue quantitative easing (money printing), but will try to UP the ante to “Git ‘er done!”

larrycableguy

[whitedog57]

Note to Janet: try to get Congress and Obama to deregulate and bring jobs back to the US instead of this insane money printing.

[humblegunner]

Note to whitedog57: Learn to post your stolen graphics.

[Huskrrrr]

“...until she sees improvement in an economy”

4 trillion spent so far to get a 40 billion dollar bump in the economy. Good luck, Toots.

[Da Coyote]

Yup, we gots to printz dat money.

Inflation?

Nothing to see here, move along.

Move along.

[Buckeye McFrog]

Setting a giant loaded bear trap for the next Conservative POTUS who pursues free-market policies and actually does bring about a recovery.

The moment those stats start to rise they’ll shut down QE and Wall Street will tank. We’ll enter a Depression and EEEEEEVIL Republicans will be blamed.

[MrB]

There’s consumer inflation, but not as much as there “should be” with 85 billion per month being created out of thin air.

The place where things are inflated is the stock market. That’s where the money is going to maintain the illusion of prosperity.

Our economy is a psychological illusion. If the market would be allowed to tank, people would lose confidence and the whole thing would come crashing down.