Fed's Kohn: "I Want to Believe"

Friday, May 21, 2010 , , 3 Comments


Obviously the Fed is the premier LOA practitioner in the country, as evidenced by these recent comments via still Fed Vice Chair Don Kohn. I sort of wish he'd STFU for a tad longer and just go already but his replacement will be exponentially more obnoxious so I'm OK with it for now. Seriously, shhhh, you're almost out, be quiet.


Keeping expectations of future price levels intact is vital, especially when interest rates are very low, the Federal Reserve's number two official said on Friday.

Fed Vice Chairman Donald Kohn also said that trying to counter asset price increases could increase volatility in inflation.

"Having inflation expectation anchored in this situation (zero interest rates) is really critical," Kohn said in a speech at an European Central Bank seminar honoring retiring ECB Vice-President Lucas Papademos.

"Risking unanchoring of expectation would be far too risky and far too costly. No one has done it and it is understandable why."

As in *winkwink* just make sure people believe in low inflation and so it shall be. Perhaps to remind the ECB that in the end, as long as the royal subjects THINK everything is cool, everything will be cool. So print, print, print, they're still buying it! For now.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.


elf2006real said...

What does LOA stand for? My research staff, Dr Google says;

Lords of Acid? Lovers of Anime? Left Occipito Anterior (fetal position)? Loss of Attachment (periodontal disease)? Legacy of Assassins (PS3 clan)? Lords of Arograth (online game)? Lack of Attention?

Help us out. I'm a fan of Loss of Attachment (periodontal disease). I think that means the taint falls out. After our Lords of Allowance get done Leaving Our's Anal-ized.

(hee hee. this will teach you to mock my ETF's)

Payback is a motherfucker.

LOA = "Law of Attraction", you know, those wonky folks who believe they can bend the universe to their whims simply by believing.

Kohn has obviously seen "The Secret". You might want to read the book version, it could help with those ETFs of yours haha

elf2006real said...

I am thinking of getting TFO of GLD/SLV and going with the Swiss ones...SGOL/SIVR. I have to find out where the vault is given rumors of London leveraging it..