Janet Yellen Admits Fed Inflation Data is BS, Says QE 2 Could Create 3 Million Jobs
Makes your stomach turn, doesn't it? Bernanke's bottom bitch is really working hard to keep up appearances, isn't she? It might help if she could keep her big trap shut about the reality behind the Fed's manufactured inflation numbers.
See comments Saturday to the The Brimmer Policy Forum in Denver, Colorado:
Such low rates of resource utilization are typically accompanied by falling inflation. And, indeed, as shown in figure 2, measures of inflation for personal consumption expenditures (PCE) have declined significantly since 2008. For the total PCE inflation rate, the underlying trend is obscured to some extent by large swings in energy prices. However, the downward trend is clearly evident from the evolution of core PCE inflation, which excludes the volatile prices of food and energy. The 12-month change in core PCE prices dropped from about 2-1/2 percent in mid-2008 to around 1-1/2 percent in 2009 and declined further to less than 1 percent by late 2010.
It's cool, America, because even though they're basing their schemes on faulty data, said data show 3 million jobs should magically appear as a result of this plan to make up $600 billion we don't have and end up owing to the Fed. Thank goodness!
I would also like to note that the same research paper analyzed the macroeconomic effects of the FOMC's full program of securities purchases, including the first round of purchases that was initiated in late 2008 and early 2009, the modification of the reinvestment policy that was announced last August, and the second round of purchases that was initiated in November. Those simulation results indicate that by 2012, the full program of securities purchases will have raised private payroll employment by about 3 million jobs. Moreover, the simulations suggest that inflation is currently a percentage point higher than would have been the case if the FOMC had never initiated a securities purchases, implying that, in the absence of such purchases, the economy would now be close to deflation.
Paper she refers to may be found here. Can someone come over and hold my hair while I hoark up my breakfast after reading this please?
Dear Janet, shut the fuck up already. Love, JDA.