I will pick a topic in which I knew even I don't win the debate the issue will be so dominating sooner or later I get what I want because this issue will be the giant Rat-man on everyone's back.
Of course frontrunning it by 3 days makes a bit less of a coward, as I can astutely point out. This article comes out of Bloomberg this morning, and of course Bloomberg is not endorsing its view either. Just printing it out upfront for the benefit of everyone interested in William Pesek's view, who's afraid of RETALIATION and chose to speak in "tongues". Yeah, that be the one.
Excerpts/commentaries and full article: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aeoO9ZctI.Tk
Commentary by William Pesek
May 21 (Bloomberg) -- Few central bankers would envy Lee Seong Tae's dilemma in Seoul. (or anywhere else for that matter wink wink)
Vice Finance Minister Choi Joong Kyung has been making the argument that inflation gains are mainly due to rising oil and grain prices and that the central bank should be supporting an economy that has ``entered a downturn.'' ( Heard that from local "guy", too - until the CORE # showed up HIGHER than HEADLINE and cricket sounds )
They are run by unelected economists who sometimes get interest-rate policies right and sometimes get them wrong. It's an imperfect arrangement, and central banks should be held accountable early and often. (Check)
Yet in their desire to keep monetary-policy makers honest, politicians risk interfering with the vital role they can play. (But politicians ARE elected :)
Policy makers have worked hard to control inflation and calm Korea's business cycles. They should resist the temptation to boost growth with easier credit. All that would do at a time of surging global prices is inflate domestic asset values, further fueling inflation. (Comment? )
If the economy truly needs more liquidity, the central bank can always act. Giving in to politicians looking for an easy way out would be a step backward for an economy that should be looking forward. (The liquidity tools are already here. Now can we "look forward"?)
The right enemy
12 years ago
10 comments:
Armageddon this Friday?
Bring it on.
Ir'm a geddin more puts.
Yo, got in late today, was busy drinking this weekend celebrating my dead Queen... what did I miss?
I see my target got hit on SPY, sold some at 1430, 1435 and 1440
Core PPI > PPI is interesting indeed... yet bonds go up. Still long about 1/2 of my initial TLT call position.
Are you saying that the Administration/Republicans know their fate this November and, therefore, are willing to take one for the team and have told Bernanke and Co. to do the right thing?
Nobody's telling Ben to do anything not because they dont wanna but because they don't know what to say. But again, the Fed mandate says balance of growth and inflation. Kohn this morning says it is balanced but he would go home reading that stuff he said and wished he didn't.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aWI2aLKbiqwo
``My expectations for moderating inflation and limited spillover effects from commodity price increases depend critically on the continued stability of inflation expectations,'' Kohn said.
How does it stack up with inflation expectation up 0.5% per month, last month running at 5.2%?
This guy is educated enough to understand statistics, and when he runs the number using bias correction he will get 8, 9% handle inflation by Dec at this rate. Does he really want that?
Your queen is quite a vixen. The wedding photos were marvellous. Maybe this one will last more than 6 months?
"Does he really want that?" Is that the right question? Sometimes, I think the question is "Does he really care?" I assume that Greenspan receives more speaking engagements fees than Volcker but I could be wrong.
A few months ago, I noted that, in public documents, Bernanke had invested a portion of his assets in Canadian T-bills. Talk about conflict of interest. This investment has protected him from "rising inflation expectations".
C'mon. All people in that group has it in "blind" trust.
Okay, will you buy an autobiography from Arthur Burns? or if you do would you put it in the coffee table?
It's an embarassing way to end one's career that way.
http://gregmankiw.blogspot.com/2006/06/on-arthur-burns.html
Embarassing or not, if you were hired under that premise than those were the cards you were instructed to deal.
Blind trust or not, I am sure he was pleased by whoever "conveniently" made that decision regarding Cdn T-bills. Speaking of which, I think you should ban all Canadians from this blog! I think Charles is Canadian (I think Charles is french for Canuck).
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