TOLD YA SO

Here we are in the Commonwealth of Virginia, the only place in the Union that has a Fed governor that didn't think a quarter point rise would signal the end of the financial world as we know it.  Oh, Stan Fisher didn't think so either but he, as Vice Chairman,wasn't going to vote against Janet when it was 8-2 against.

Poor Janet.  One of these days everybody is going to realize that she's an order taker.  She has no more clout than Lael Brainard...probably less in fact because 8-5 Il Duce takes Brainard's call first.  I can just heat the conversation:

"Hello, Lael."

"Hello Mr.  President.  Do you really want us not to tighten?"

"Lael, do you read the New York Times?  Why do you think you got the job?  The Times speaks for me.  Do you think I want to fix this mess?  Hell, that's your job.  I'm planning my library in South Chicago.  That's Hard. Gotta stop the folks from killing themselves first.  You unnerstand?"

"Yes Mr. President.  Good bye and thank you."

Well, maybe it didn't come down just like that but the result is achieved.  The economic future of the country...nay, the world...has been assumed by Janet.  Hell, she's even started talking about exchange rate policy which is why the dollar went absolutely in the crapper this morning. (n.b.  I have no idea what has been happening since 11:00 am...chasing grandchildren and trying to write this).  

Now there is a lot to talk about but frankly, I have neither the time nor the desire at this point.  It can wait.  But I leave you with this thought:  the only thing we have left if the dollar as THE Reserve currency.  NOBODY likes a weak reserve currency.  NOBODY...except for the Chinese.  A journey of a 1000 miles begins with one step.  They haven't lifted a foot and they are halfway there.


Oh.  Just thought I would point out a curious fact...at least as far as I am concerned.  Collectively, the world's banking community paid about $100,000,000,000 in shake-downs for no discernible commitment of a crime.  Rampant stupidity and mis-management, but no crime.  Yesterday, General Motors was fined $900,000,000 for fraud and cover up over the period of 10 years that resulted in the death of 124 people.  It's present Chairwoman was up to her bum in it for a period of time.  The company admitted to their actions but because they were. "Cooperative," they were not forced to admit to criminality. One Hundred and Twenty-Four Dead.

The action was brought by the "Justice Department."