Yellen, and her ways and means, is under scrutiny. What that might foretell is something that we will have to watch and, perhaps, learn from.
John Taylor says that the Fed ought to follow its rules. WSJ: The Fed Needs to Return to Monetary Rules (there have been other articles the past few months). That raises a question: whose rules? Well, Taylor's, for example?
Rules? Who runs their life this way? Oh, I know, many. But, free people have fewer rules than do those under someone else's thumb. We just celebrated our supposed freedom a few days ago. But, look closely at all of the ties that bind (some very insidious - yes, thanks to Zuck and that ilk).
But, you have to wonder if Ben (little Timmy) and that whole crowd loved playing cowboy and rescuing the economy from those that were let loose by largess to begin with. The solution? More largess. Cowboy (apologies to the real cattle handlers)? Yes, that has been used to denote those who shoot from the hip (which suggests running amok, so to speak, versus being methodical) as Ben seemed to be doing as he, creatively, went deeper into manipulating in new ways.
Wait! The Fed does claim to be data-driven. So, pending discussion lurks here.
There is nothing cynical to the viewpoint. Rather, we are in a mess for several reasons. For one, who knows what is what? Even if we did not have the fact of disinformation, there are all sorts of human foibles that we face. One of those is our real lack of insight, purported evidence otherwise notwithstanding. Secondly, we have a century-plus of mish-mash mathematics (ah, how to get this discussed) to contend with. Thirdly, the computer exacerbated, and spread the influence of, the second (just prior) note. Yes, several genies are out of the bottle. ... The litany is long.
Out of control, essentially.
We knew that unwinding's effects would be something to observe. Yellen's delaying this is only going to make things worse. But, then, however she and her kind unfold the future will result in the unexpected. So, we will have a show to watch no matter.
It is just that the savers were de-skinned as a result of Ben's ways and means. Anyone care? The consumption side would only work if debt is constrained. But, how? We can get to that. Consider, what kind of sustainable economy would impoverish future generations by loading them up with debt that is now being accumulated?
Say what? Yes, we'll get back to that, too.
However, there are many examples of debt being used to fill the pockets of some. As in, equity-biased folks stacking debt on a company (that debt allowing big payouts to the participants - to wit, if you doubt this, Hawker - 2008 post, want to discuss what ensured in the following period?) with the hope that an IPO would spread this amongst supposed investors.
We ought not envy Yellen (her limousine, big office, etc.) as she has (and will continue to have) to deal with Ben's gifting of the monied.
Remarks: Modified: 02/11/2015
07/09/2014 -- Markets were down yesterday. Lots of talk of heated values. Then, Yellen talks goo-goo, or the markets think. So, we have an up day. Goo-goo? Actually a release of notes from an earlier meeting. Insanity? There is no way that all in markets can get their bucks when needed. That story needs to be told more clearly. Why? The cheshire multiple, for one.
02/11/2015 -- Wikipedia: Zero interest rate policy.