There is going to be carnage in the casino, and the proof lies in the transcript of Janet Yellen’s press conference. She did not say one word about the real world; it was all about the hypothetical world embedded in the Fed’s tinker toy model of the US economy.
Yes, tinker toys are what kids used to play with back in the 1950s and 1960s, and that’s when Janet acquired her school-girl model of the nation’s economy.
But since that model is so frightfully primitive, mechanical, incomplete, stylized and obsolete, it tells almost nothing of relevance about where the markets and economy now stand; or what forces are driving them; or where they are headed in the period just ahead.
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I think Stockman is being more realistic than anyone over at the Fed.
Frankly, I doubt Yellen is actually running the Federal Reserve System. The oligarchs and bankgangsters brought in Stanley Fischer from Israel to be the brains behind this particular phase of their operation to loot America. Someone ought to ask him what he thinks about the rate hike.