Skip to comments.Yellen (FED chair) on Inflation
Posted on 07/21/2017 1:57:32 PM PDT by entropy12
"Fed Chair Janet Yellen says that in looking at asset prices and valuations, the central bank is 'not trying to opine on whether they're correct'; instead, policy makers are assessing the risk of potential spillovers. As asset prices rise, there hasn't been a substantial increase in borrowing, Yellen said. [The] financial system is strong and resilient."
I assume chair Yellen is referring to U.S. non-financial and non-government borrowings. Clearly, central bank Credit and government borrowings have expanded spectacularly around the globe. I suspect as well there has been a major expansion in speculative leveraging and securities Credit at home and abroad. Georgia Senator David Purdue: "Thank you for being here and for your service. I just have two quick questions. I'm very concerned about global debt. The Institute of International Finance recently reported that their estimate of total global debt is $217 trillion, or more than 300% of global GDP. Do you agree with that?"
Chair Yellen: "So, I haven't heard that number. That could be. I don't have that number."
Purdue: "Of that, $60 trillion is estimated to be sovereign debt. We have about $20 trillion of the $60 trillion. With that as background, the four large central banks also have their largest historic balance sheets. Japan, China, EU and US have collectively close to approaching $20 trillion now of balance sheet size. As you talk about reducing the size of the Fed's balance sheet, are you coordinating with these other central banks and looking at emerging market debt - particularly the $300 billion that's coming due by the end of 2018 - relative to the size of your balance sheet here in the United States?"
(Excerpt) Read more at safehaven.com ...
In other words the bankers have the tiger by the tail. They can not let go, else the tiger will devour them.
Hmmm, not understanding all that.
Anyway my overall situation takeaway is that Yellen seems to be getting slightly more “reasonable” on stimulus and inflation, insofar as she is part of the fed and also maybe somewhat less than well versed.
Another measure of inflation is gold, which has flattened out at $1250/oz since about late 2012:
real inflation seems to be around 5% these days
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.