The credibility problem of the Fed

What is the Fed good at? Not much, according to Jessie Eisenger of ProPublica:

Investors . . . have almost no confidence in the Federal Reserve or the economics profession. And for good reason. It's impressive that the Fed and many economists have successfully predicted the path of interest rates and inflation in the wake of the worst financial crisis in a generation. But neither the central bank nor academicians managed to predict or prevent the crisis in the first place. The failure dwarfs the accomplishment. The Fed's track record is out-and-out abysmal.The Fed began its lender-of-last-resort role in 2007, but did little to avoid or minimize the financial crisis. Once it hit, it did the right thing to flood the markets with money, but — along with the Treasury and a passive Justice Department — let banks and top executives off the hook. And now, asset prices are going wild. Junk bonds are up. Stocks are up. Housing in Phoenix and Brooklyn is going mad. This prebubble euphoria only undermines the Federal Reserve's fragile credibility. It reinforces the notion that it seems to know only two things: how to inflate bubbles and how to studiously not recognize them.

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Ronald Reagan’s Budget Director describes today’s Republican Party

I'm convinced that if Ronald Reagan ran for president today, he would not have any chance of being the Republican Party nominee. Further proof of how far the Republican party has drifted comes from David Stockman, who served as Ronald Reagan's Budget Director. During a recent interview, Stockman was asked about today's Republican party:

I think the Republican Party is not really a party. It doesn’t stand for anything except reelecting itself. It’s a coalition of gangs…. The Neo Cons which I have no use for are only oriented to an aggressive imperialistic foreign policy, a big defense establishment, and suppression of our civil liberties. That’s a bad. I am against that. The Tax Cons want to just cut taxes anytime any day regardless of the fiscal situation. That has gone to absurd lengths. I oppose that. The Social Cons, social policy people, the right to life issue, gay marriage and all that, that’s irrelevant to governing a democracy in a free society. That is basically the heart of the Republican Party. In that mix how can you find anything that is going to stand for conservative economics, fiscal rectitude, free markets, sound money; it’s not there. The Republican Party is basically irrelevant to the economic crisis that faces the country.

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Lee Camp brings it

Over the past week, I've watched about 20 episodes of Lee Camp's Moment of Clarity. Camp has the technique down well. Be well informed, then let it fly with equal parts wit and sharp sword. His targets are those who hurt or disparage honorable ordinary people. His videos are well-planned and executed, with the timing of an experienced comedian. Take a look at any of the four posted episodes below, and I suspect that you will become a Lee Camp fan too.

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Facts and figures on American tax evasion

Shame on those many American tax evaders, those who we euphemistically say are "investing offshore." Here are some stunning facts and figures, from the Tax Justice Network:

The very existence of the global offshore industry, and the tax free status of the enormoussumsinvestedbytheirwealthyclients,ispredicatedonsecrecy:that is what this industry really “supplies” as it competes for, conceals, and manages private capital from all over the planet, from any and all sources, no questions asked. We are up against one of society's most well entrenched interest groups. After all, there’s no interest group more rich and powerful than the rich and powerful, who are the ultimate subjects of our research.

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About Americans

I know that this article at Bananenplanet is filled with generalizations, but many of them rang true to me. Thoughtful article that suggests that Americans need to look in the mirror. Here are some of the main points:

  • We Know Nothing About The Rest Of The World
  • The Quality of Life For The Average American Is Not That Great
  • The Rest Of The World Is Not A Slum-Ridden Shithole Compared To Us
  • We’re Paranoid
  • We’re Status-Obsessed And Seek Attention
  • We Are Very Unhealthy
  • We Mistake Comfort For Happiness

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