At Quadrant Online I have some analysis and some true life adventure about my meeting with Janet Yellen at an OECD meeting back when I represented Australian employers at meetings in Paris. It’s called, On Planet Janet the spending never ends about the nominee to replace Ben Bernanke. Still, it is this quote about Yellen that is probably most telling and accurate and therefore ought to be all the more disturbing for that:
The Fed will be looser for longer. The FOMC will continue to print money until the US economy creates enough jobs to reignite wage pressures and inflation, regardless of asset bubbles, or collateral damage along the way.
If you’re the sort to be cheered up by that, then it’s all good news. If on the other hand you have a less sanguine view, there is this, also quoted but from another source:
As the perfect storm approaches, the regime will address it the only way it knows how — as a revenue, rather than a spending, problem.”
“…as the regime becomes more desperate, unwilling to make cuts to anything other than the military, it will look for opportunities to increase revenue, all the while being indifferent to, or ignorant of, the negative economic impact of taking more money out of the private sector and transferring it to the government. Like throwing gas on a fire to put it out, it has the opposite effect.
The perfect storm indeed.