(Reporting by Esha Dey in Bangalore, additional reporting by Natalie Grover; Editing by Saumyadeb Chakrabarty)
Yahoo!Finance had a chance to be something different, to stand out in the useless, banal, brain dead Wall Street apologist world of CNBC and Fox Business. Instead they went in the same direction. No, worse, they doubled down by hiring Jeff Macke, the dude who was even too bizarre for CNBC and Lauren Lyster, the Ludwig Von Mises, goldbug, Peter-Schiff-loving former RT Capital Account host who thinks our money comes from mother nature.
If you watch you know that the Yahoo!Finance shows all come off as the same, big bad government, poor abused banks, market is the all-knowing omniscient self-regulating entity bullshit straight out of some bad Ayn Rand novel with a plotline so tired that the only people who watch are probably the clueless guests themselves who keep getting the same smoke blown up their asses by these clown hosts. The rest of the world could give a shit.
I only mention it because they appeared to hit a new low on a segment today where the apparently medicated Macke decides to go after soon to be Fed Chairman Janet Yellen, intimating that we ought to be wary of a woman having "power rivaling Obama." (Clueless statement. One of many.)
Now if I were a woman and I heard this I would unleash a shit storm of protest all the way up to Yahoo's WOMAN CEO, Marissa Mayer and try to get her to realize that a) the show sucks and b) there's no fucking way a loser like Macke and the show's producers should be framing a segment with such a disprespectful and obviously sexist/chauvanist lead in.
But wait...it gets better.
Cue the moron music.
Up on the screen pops some dude named Keith McCullough who, when asked about the Yellen appointment (Yellen being a woman) says, "I don't know whether to smile or puke." (I kid you not. Listen ot the clip.)
Puke! The guy says he wants to puke!
Then this simpleton moron, who runs an outfit called "Hedgeye" goes into some unitelligable rant about how "We Lost touch with the Constitutional principals of the country" (how so?) and how the Fed is "unelected and unaccountable." I guess he feels its okay to ignore the fact that Fed governors are all noninated by POTUS and confirmed by Congress and the Fed itself was established by an Act of Congress and that they Fed has to give all its earnings over to the U.S. Treasury every year and so on and so on.
Finally the dude finishes it all off with this lovely cherry on top...ready...here it comes..."The Fed is keeping rates artificially low and devaluing the dollar." Ba dum bum.
Right off the Peter Schiff talking points memo!
A little bit more whining ensues about some other stuff--all wrong and out of paradigm, of course--then a moment where he scolds the Fed for "not agreeing with the market," and there you have all the evidence you need to see that this bumpkin got the monetary intelligence of a jellyfish .
Anyway, here's the clip. Watch it for yourself.
By the way, you women out there, Marissa Mayer is on Twitter. Maybe she'd like to hear from you. (That goes for you, too, guys.)
Just heard that RT Capital Account is off the air. LOL!!!! Guess their ratings were just too good, hehe.
I suspect the producer will have more time now to troll around here.
LOL!!!
I heard some funny discussion recently between two, typically out of paradigm folks on what would happen to interest rates if the Fed didn't conduct QE. One said that rates would be lower because there wouldn't have been "stimulus." The other said rates would have been higher because the Fed was the principal buyer of the government's paper and without that buying rates would have shot up.
First, it's important to understand that QE is just another monetary policy tool and these tools are all designed, or I should say, capable, of doing only one thing and that is change an interest rate somewhere along the term structure. In so doing the Fed changes the composition and duration of the financial assets held by the public. It's not stimulus, it doesn't enable gov't spending and it's not money printing. These are asset swaps, that's it, pure and simple.
We also know that a currency issuing government, like the U.S. Federal Government, spends by electronically crediting bank accounts and there is no constraint on its ability to do this other than the occassional political constraint, like when we have to go through these ridiculous debt ceiling shenanigans every now and then. Furthermore we know that when the government spends it adds to the level of bank reserves in the system and this accumulation of reserves causes the Fed to engage in monetary operations on a fairly regular basis (like, daily) to maintain reserves at a level that is consistent with whatever target interest rate they have decided upon. If the Fed were to allow reserves to build and build and build as a normal consequence of ongoing gov't spending, then the overnight lending rate (Fed Funds) would quickly fall to zero and all other rates out along the term structure would follow suit.
So the fact of the matter is the Fed has to work quite hard to KEEP RATES FROM FALLING TO ZERO ON THEIR OWN if the banking system were just left alone without its intervention. Those who say the Fed is keeping rates "artificially low" have got it backward. On the contrary, high rates or rising rates for a currency issuing nation are artificial.
The notion that rates would have been higher if the Fed had not done QE is false. Nor can one say thay rates would be lower absent QE because there "wouldn't have been any stimulus." That's patently absurd. QE simply was the Fed's way of reducing the rate on some specific instrument (mortgages, longer dated Treasuries, etc.) in the hopes that such a move would have some desired effect on the economy, despite the fact that the causal relationship there is spurious.
Peter Schiff...what more need I say?
Wrong on interest rates
Wrong on unflation
Wrong on US growth
Wrong on the dollar
Wrong on gold
Wrong on China
Wrong on US stocks
Wrong even on housing
And there's poor little Lauren Lyster of RT, trying so hard to save this fool and make him look smart. Keep trying, Lauren...keep trying.
