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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (1041)	2/15/2001 2:51:30 PM
From: ahhaha	Read Replies (1) \| Respond to of 24758

These clowns have to shut up and get out of the public eye. Poole-Fed can't stop short-run economic gyrations THURSDAY, FEBRUARY 15, 2001 1:19:00 PM EST WASHINGTON, Feb 15 (Reuters) - The president of the Federal Reserve Bank of St. Louis on Thursday cautioned that U.S. central bankers cannot stop short-term fluctuations in the economy but instead can help keep the economy on its long-run growth track. What kind of double talk is this? Is the long term disjoint with respect to the short term? If so, how can FED attempt to manipulate the economy through short run monetary moves? To do so assumes that the long term is the integration of the short terms. "I can assure you that the Federal Reserve cannot land the economy on a carrier deck in the economic ocean we face," William Poole said. "We cannot avoid most short-run economic fluctuations but we can help to prevent those inevitable jolts from becoming cumulative." They can't effect the short term but they can effect the cumulative results of the short term which is presumably the trend of the long term. Yet from AG across the other loudmouths on the Board they all look backward because that's what the data tells you, what happened in the past. They react to the cumulative results of the past. So how can he claim they can "prevent those inevitable jolts from becoming cumulative" when "prevent" means an action designed to effect the future? Effectively, he is assuming that what happened in the past exactly determines what happens in the future. Poole is a pseudo-Friedmanian monetarist with the pseudo science of econometrics behind him, and so he believes that scientific causality is applicable to the world of economics. If so, then the short term is determinate, or the short term can't be distinguished from the long term. In every tableau there's a contradiction here. Poole, in prepared remarks for delivery to the Economic and Business Club in Little Rock, Ark., assured that even amid the latest economic uncertainty the U.S. inflation rate remains "well controlled." Then why is the FOMC locking in a fed funds rate? If inflation is "well-controlled", then there should be little concern about demand for loanable funds pushing rates higher than target and so there is no need to do matched sales. But he added that current information continues to suggest that "firms believe they have very little pricing power." Why did he add that? He can't even define what "pricing power" is. He thinks inflation comes from demand which is typical monetarist stupidity. He never did understand stagflation. The school of demand management never does. Pricing power doesn't arise from an elective state. It arises from a necessary state of firm survival. Over the longer run, data on inflation expectations indicates that households and firms continue to believe that inflation will remain in the range of recent years, he added. This guy should be fired immediately for failure to understand elementary economics. Is that on what FED depends for policy determination, what households and firms continue to believe? Those beliefs can change before FED can measure them. Is he saying that if the airline strike spreads that FED will raise rates?