Notes From Underground: In the Shadows of the G-7 and Janet Yellen

The G-7 left us wondering about the substance and Janet Yellen was more dovish than the headlines revealed. Chair Yellen raised the issue of increasing rates “in the coming months” and more importantly she invoked the idea of “social justice” in the role of economics. For three years I have discussed that Janet Yellen is a moral philosopher and in that mindset would be far more likely to allow WAGES to rise faster before moving to raise interest rates to slow the economy. I have no problem with the idea of  a labor economist erring on the side of desiring an increase in wages in an effort for labor to claw back some advantage from KAPITAL. My question: Are market’s misjudging Chair Yellen in this regard and therefore mispricing risk? This issue will not disappear and needs to be put into the equation of interest rates rising sooner than later. There will be more to follow in regards to Janet Yellen’s invoking of the social basis of her mentor, Professor James Tobin. Enjoy the weekend and think about those who gave the ultimate sacrifice for the freedoms we so value and allows for social media to provide the free flows of thought.

Yra & Rick, May 27, 2016

Click on the image to watch me and Rick discuss the ways in which the central banks have distorted the debt markets.

Financial Repression Authority

Click on the image above to watch my interview with Financial Repression Authority.

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10 Responses to “Notes From Underground: In the Shadows of the G-7 and Janet Yellen”

  1. costaselgreco Says:

    Fantastic commentary with FRA, Yra.

    Why are US corporations not concerned about lending to the ECB if the whole gig depends on Germany’s willingness to supply its credit card? The objection to Draghi’s policies is starting to reach a critical mass in Germany and I assume there is still a functioning democracy in Germany that could put an end to this policy?

    Best wishes and Happy Memorial Day to you
    Costas

    • yra Says:

      costas–the world is geared to find an extra 25 basis points wherever it can be found–as long as CFO of corporations make their bogey well the hell with forward risk.I will write more on this very soon.We can only hope the Germans wake -up before the spring release on the giant debt trap door

  2. david cooper Says:

    Yra fantastic interview! The real question to me is when all this breaks? It can’t go on forever. In my mind that point is when inflation goes up these central banks will have to turn off the spigots, until then the fantasy keeps going. So maybe we watch the German inflation rate, no????

    • yra Says:

      David –you would think so .But the Germans do not control their money policy and I believe Draghi prays every night for the debaqsement of the German saver class

  3. david cooper Says:

    to me the germans are playing a double game. using the “pigs” to keep the euro low for their exporters and then complaining about debasement. germany can’t have it both ways without increasing political unrest in the basket case countries.imho

    • yra Says:

      David–don’t over sell the weak euro for the Germans have operated with a strong D-Mark through the years and the Hartz IV restructuring put in place by Schroeder and others was an example of the flexibility of the Rhenish model .The EU and the opening up the eastern Europe workers pushed German unions to settle for less something that those in France and the others were not able to do—Yes there are some in Germany trying to play the “double game” but the strongest voice outside of the citizenry is the Bundesbank which will not sit quietly as it to has a mandate–stay tuned and it is NOT AS BINARY as some want to believe

  4. costaselgreco Says:

    Yra, thanks for this and your reply to an earlier post. Much appreciate your wise comments. Costas

  5. Frank C. Says:

    Here is latest update on Brexit “leaves” ganing ground

    http://www.bloomberg.com/news/articles/2016-05-31/pound-halts-rally-amid-signs-that-brexit-camp-is-gaining-ground

  6. Frank C. Says:

    Here is full article from the Guardian

    http://www.theguardian.com/politics/2016/may/31/uk-voters-leaning-towards-brexit-guardian-poll-reveals

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