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overtheedge
Member since May 2012
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DeLong-in-Wonderland - Mish - Global Economic Analysis

So one of the Economic Priesthood has recommended increasing the inflation rate. Some interesting asides to this. This priest works at UC Berkley. California is effectively bankrupt. CalPERS is way under-capitalized. Staffing cut-backs across the state are expected. Money is in full flight out of California.

If increased inflation arrives quick enough and some monies are directed at the states, maybe this priest's retirement account might be salvageable and he keeps his already grossly over-paid job.

However, he is in good company with others who state, "If inflation doesn't accomplish the mission, then it wasn't inflationary enough."

But I'm curious about what happened to Zimbabwe's employment. I'm also curious why this priest failed to rush over there and get a high-paying job teaching in Harare. Must be that hind-sight 20-20 thingy again.
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"When Nixon closed the gold window, the expansion of credit exploded. The Fed blew asset bubble after asset bubble. Fed policies not only got the US economy in serious trouble twice, those policies continue to play a huge part in the wage discrepancies that inflationists like DeLong moan about."

Once again, the evil bankers as well the most hated flavor of all, "The FED!!!", are responsible for our nation's financial woes. Except ...

They didn't pass "Free Trade" legislation. They didn't initiate wars that weren't wars, but our troops still get shot or blow-up. They didn't demand that everyone who could fog a mirror should be able to buy a house 10X their annual income. They didn't pass legislation that makes sure everyone has a safety net of indefinite duration. The bankers didn't outlaw private ownership of gold and then remove the gold exchange standard as set forth by the IMC at Bretton Woods. Nor did they remove silver from coinage.

As a matter of fact, all the evidence for our nation's woes are directly linked to Congress and POTUS. The Fed just does their bidding. Why do you suppose Bernanke just had to testify to Congress just awhile back? And just who nominates the Fed Chairman?

Don't get me wrong, I'm no fan of the Fed or bankers in general. But have the intellectual and journalistic honesty to lay the crimes on the real criminals. The Fed operates under orders and has a joint mission: Banker of last resort for commercial banking and National Bank of US Government. What Congress giveth, Congress can taketh away. Congress gave the Fed the sole franchise and it is very profitable. Congress is that 21 year-old girl-friend of yours with your credit card. And like that 21 year-old, Congress hasn't a clue (what is in the laws it passes).

Folks, Congress plays a mean blame game. This one is the President's fault and that one is the Feds.
Play ball with Congress or get the bat shoved up your ... . Taking one for the team is always quit profitable. Loyalty has its rewards.

Commented 4089 days ago

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Beginning of the headline :Preposterous economic proposals from economists living in academic wonderland are the norm. For example: Please consider the following statements by Brad DeLong, a professor of economics at the University of California at Berkeley, from his post Central Banking: Banking Camp vs. Macroeconomics Camp. A prolonged and sustained central-bank policy of purchasing ever-increasing quantities of long-term assets is essential to get a financial sector with diminished appetite for risk to use some of i... Read More

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