Wednesday, September 9, 2009

The most current thought process regarding monetary (Fed) policies: Reading the minds exercise, part 522

This post will be more evolving, new materials as we go along.

Old materials first:

The Taylor rule: taking into account GDP (real output) and inflation (paper supply) to set short term interest rate.

Verdict: Didn't work. Paper supply does not adequately describe BUBBLES when they occured in the past.

Competing goals in 2009:

Reinflation - largely complete with a very heavy excess of liquidity currently in the system, chasing extraneous and "secondary" assets, which have nothing to do with "financial stability" - gold and oil to name a few.

New World mandate - for both O and Benny, that "FREE MARKET" (The one that had Lehman, Freddie, AIG, and Citi in it) got the "Price" wrong more than several times. Any sense of nascent, systemic-endangering bubble will from now on be dealt quickly and harshly before they create untold damages.

What is out: is the Reaganism - unchecked, collusion-based, cronyisms, Islamophobic "free market" - where the power that be is empowered to predate among the lower classes and have the galls to call it "FREE MARKET".

Which one and when does one COMPETING GOAL ends and ANOTHER started?
- Can only be answered looking back.
The other things that can also be answered by looking at past data:
1. Which cycle it currently is.
2. What kind of price changes have occured, particularly those outside the intended policies.

Wassa-llammual'aiqum for now (Toodaloo in Arabic - I hope I copy and paste that correctly)

Tuesday, September 8, 2009

NEGRO, YOU disappoint me!!!!!!

WTF is this bro? WASHINGTON – Americans would be fined up to $3,800 for failing to buy health insurance under a plan that circulated in Congress on Tuesday as divisions among Democrats undercut President Barack Obama's effort to regain traction on his health care overhaul.

You started out with our blessings and wholehearted admiration. No criticism of you went un-flamed with racist charges - 100% of the time.

Now you fuck things up so bad, negro!!!

Why? Why fuck with these useless crap. What y'all have to do is just print print and print more money is that so hard to do? Where is your commitment? Spending political capital in such a suicidal manner would only waste support from peeps like me yo, who's waiting in line for money and money only. Print more money and give it to us, we don't give a fuck about the rest AFTER you do it.

A nation is built upon its strengths, and not weaknesses. You are messing with its strengths sir. Hobos, Hippies, and Whores are its weaknesses - fuck their health insurance.

I used to have a mental image of you as such:

Now I think of you like this you POS: