Trump doesn't understand economics, says former Fed chair Janet Yellen

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Locutus

Locutus

Senior Member
#1
Feb 10, 2017
5,928
685
113
#1
From the BBC:

A former chair of the US central bank has sharply criticised President Trump's economic knowledge.

On American Public Media's Marketplace programme, Janet Yellen said Mr Trump did not understand economic policy or the US Federal Reserve's purpose.

She also said that Mr Trump's focus on the US-China trade deficit was misguided.

The US and China have been in a year-long dispute, which has seen the imposition of trade tariffs.

Ms Yellen, who left the Fed in 2018 and is now at the Brookings Institution research group, also said President Trump's attacks on current Fed chair Jerome Powell were harmful to the public's confidence in the central bank.

Asked on Marketplace, the BBC's US radio partner, if she thought the president had a grasp of macroeconomic policy, she replied: "No, I do not."

She went on to say Mr Trump did not seem to understand the Fed's two responsibilities of controlling inflation and supporting employment.

"Well, I doubt that he would even be able to say that the Fed's goals are maximum employment and price stability, which is the goals that Congress have assigned to the Fed," Ms Yellen told the programme.

On the trade gap with China, she said: "When I continually hear focus by the president and some of his advisers on remedying bilateral trade deficits with other trade partners, I think almost any economist would tell you that there's no real meaning to bilateral trade deficits, and it's not an appropriate objective of policy."

Full Trump economic remedial class:

https://www.bbc.com/news/business-47369123

Trump shot the tarif BigSmile.gif
 
PennEd

PennEd

Senior Member
#3
Apr 22, 2013
13,588
9,107
113
#3
YOU SAID IT: 2019 the time for Trudeau to go
2019 THE TIME FOR TRUDEAU TO GO

Re: This was the year things came undone for Trudeau, Dec. 29

Kudos to Candice Malcolm for her column on Dec. 29 regarding her review of 2018 in which she details PM Trudeau’s year of follies! The continuing narcissistic actions by Trudeau — he recently stated that he expects to win re-election in 2019 — shows again his arrogance, and I can only hope this will be his last year as the so-called leader of Canada.

We can’t afford another four years of his careless mismanagement of our economy with apparently no concerns about our deficit/debt, which he increases daily, and his love for screwing Canadians with more taxes, including the soon-to-be implemented carbon tax.

Recent polls showing that Trudeau’s popularity is at a three-year low is great news and hopefully his “Sunny Days” are coming to a close with Canadian “peoplekind” giving him the boot next October.
 
calibob

calibob

Sinner saved by grace
#5
May 29, 2018
8,268
5,516
113
Anaheim, Cali.
#5
NotmebutHim said:
And he says it is a businessman's expense! :p
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Borrowing more money than we make is a doomed way to reduce debt. I'm sorry but taking financial advice from someone that can't stay out of bankruptcy court is more nuts than trusting Bernie Sanders or Madoff. Here's this years balance so far. according to www.thebalance.com/current-u-s-federal-budget-deficit->

What is the current national deficit?
The U.S. federal budget deficit for fiscal year 2019 is $985 billion. FY 2019 covers October 1, 2018, through September 30, 2019. The deficit occurs because the U.S. government spending of $4.407 trillion is higher than its revenue of $3.422 trillion. The deficit is 18 percent greater than last year.
 
U

UnderGrace

Guest
#6
#6
Locutus said:
From the BBC:

A former chair of the US central bank has sharply criticised President Trump's economic knowledge.

On American Public Media's Marketplace programme, Janet Yellen said Mr Trump did not understand economic policy or the US Federal Reserve's purpose.

She also said that Mr Trump's focus on the US-China trade deficit was misguided.

The US and China have been in a year-long dispute, which has seen the imposition of trade tariffs.

Ms Yellen, who left the Fed in 2018 and is now at the Brookings Institution research group, also said President Trump's attacks on current Fed chair Jerome Powell were harmful to the public's confidence in the central bank.

Asked on Marketplace, the BBC's US radio partner, if she thought the president had a grasp of macroeconomic policy, she replied: "No, I do not."

She went on to say Mr Trump did not seem to understand the Fed's two responsibilities of controlling inflation and supporting employment.

"Well, I doubt that he would even be able to say that the Fed's goals are maximum employment and price stability, which is the goals that Congress have assigned to the Fed," Ms Yellen told the programme.

On the trade gap with China, she said: "When I continually hear focus by the president and some of his advisers on remedying bilateral trade deficits with other trade partners, I think almost any economist would tell you that there's no real meaning to bilateral trade deficits, and it's not an appropriate objective of policy."

Full Trump economic remedial class:

https://www.bbc.com/news/business-47369123

Trump shot the tarif View attachment 195036
Click to expand...

This is the most absurd article yet.....just hilarious!!!


Fed's two responsibilities of controlling inflation and supporting employment.
Click to expand...
msn-laughing-smiley-emoticon.gif
 
Locutus

Locutus

Senior Member
#7
Feb 10, 2017
5,928
685
113
#7
How does monetary policy influence inflation and employment?

In the short run, monetary policy influences inflation and the economy-wide demand for goods and services--and, therefore, the demand for the employees who produce those goods and services--primarily through its influence on the financial conditions facing households and firms. During normal times, the Federal Reserve has primarily influenced overall financial conditions by adjusting the federal funds rate--the rate that banks charge each other for short-term loans. Movements in the federal funds rate are passed on to other short-term interest rates that influence borrowing costs for firms and households. Movements in short-term interest rates also influence long-term interest rates--such as corporate bond rates and residential mortgage rates--because those rates reflect, among other factors, the current and expected future values of short-term rates. In addition, shifts in long-term interest rates affect other asset prices, most notably equity prices and the foreign exchange value of the dollar. For example, all else being equal, lower interest rates tend to raise equity prices as investors discount the future cash flows associated with equity investments at a lower rate.

In turn, these changes in financial conditions affect economic activity. For example, when short- and long-term interest rates go down, it becomes cheaper to borrow, so households are more willing to buy goods and services and firms are in a better position to purchase items to expand their businesses, such as property and equipment. Firms respond to these increases in total (household and business) spending by hiring more workers and boosting production. As a result of these factors, household wealth increases, which spurs even more spending. These linkages from monetary policy to production and employment don't show up immediately and are influenced by a range of factors, which makes it difficult to gauge precisely the effect of monetary policy on the economy.

Full rebuttal:

https://www.federalreserve.gov/faqs/money_12856.htm
 
U

UnderGrace

Guest
#8
#8
Locutus said:
How does monetary policy influence inflation and employment?

In the short run, monetary policy influences inflation and the economy-wide demand for goods and services--and, therefore, the demand for the employees who produce those goods and services--primarily through its influence on the financial conditions facing households and firms. During normal times, the Federal Reserve has primarily influenced overall financial conditions by adjusting the federal funds rate--the rate that banks charge each other for short-term loans. Movements in the federal funds rate are passed on to other short-term interest rates that influence borrowing costs for firms and households. Movements in short-term interest rates also influence long-term interest rates--such as corporate bond rates and residential mortgage rates--because those rates reflect, among other factors, the current and expected future values of short-term rates. In addition, shifts in long-term interest rates affect other asset prices, most notably equity prices and the foreign exchange value of the dollar. For example, all else being equal, lower interest rates tend to raise equity prices as investors discount the future cash flows associated with equity investments at a lower rate.

In turn, these changes in financial conditions affect economic activity. For example, when short- and long-term interest rates go down, it becomes cheaper to borrow, so households are more willing to buy goods and services and firms are in a better position to purchase items to expand their businesses, such as property and equipment. Firms respond to these increases in total (household and business) spending by hiring more workers and boosting production. As a result of these factors, household wealth increases, which spurs even more spending. These linkages from monetary policy to production and employment don't show up immediately and are influenced by a range of factors, which makes it difficult to gauge precisely the effect of monetary policy on the economy.

Full rebuttal:

https://www.federalreserve.gov/faqs/money_12856.htm
Click to expand...
Of course they manage the monetary policy, the joke is that they do it responsibly......now there is the real joke!!

They have one vested interest themselves.
 
JosephsDreams

JosephsDreams

Senior Member
#10
Dec 31, 2015
4,313
468
83
#10
I am getting so cynical. It's to the point where I believe just about anything that just about any Democrat says is just based on their hate for what Trump stands for, who he is, and how he has them in such dismay and disarray.
And I am probably right about 85% of the time.
 
S

Susanna

Guest
#11
#11
I’m tired of Trump people and anti Trump people lol.
 
TabinRivCA

TabinRivCA

Well-known member
#12
Oct 23, 2018
13,110
10,670
113
#12
PennEd said:
YOU SAID IT: 2019 the time for Trudeau to go
2019 THE TIME FOR TRUDEAU TO GO

Re: This was the year things came undone for Trudeau, Dec. 29

Kudos to Candice Malcolm for her column on Dec. 29 regarding her review of 2018 in which she details PM Trudeau’s year of follies! The continuing narcissistic actions by Trudeau — he recently stated that he expects to win re-election in 2019 — shows again his arrogance, and I can only hope this will be his last year as the so-called leader of Canada.

We can’t afford another four years of his careless mismanagement of our economy with apparently no concerns about our deficit/debt, which he increases daily, and his love for screwing Canadians with more taxes, including the soon-to-be implemented carbon tax.

Recent polls showing that Trudeau’s popularity is at a three-year low is great news and hopefully his “Sunny Days” are coming to a close with Canadian “peoplekind” giving him the boot next October.
Click to expand...
Idk just curious, are you living in Canada?
 
Locutus

Locutus

Senior Member
#14
Feb 10, 2017
5,928
685
113
#14
Trudeau's put another nail in his own coffin with the SNC-Lavalin scandal, I don't see the Conservatives getting in power - the Lib's with a new leader will probably be back in power.
 
K

kaylagrl

Guest
#16
#16

Never saw him up close but I left home before he became PM. I guess it depends on your taste in men. lol
 
PennEd

PennEd

Senior Member
#17
Apr 22, 2013
13,588
9,107
113
#17
TabinRivCA said:
Idk just curious, are you living in Canada?
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No. I've never been there. I'm trying to point out how insulting it is for a foreigner to post day after day negative news stories about another Country.

The op is Canadian, NOT American, yet bashes America relentlessly.

So I'm going to post negative Canadian stories whenever I can on his America bashing threads.
 
U

UnderGrace

Guest
#18
#18
PennEd said:
No. I've never been there. I'm trying to point out how insulting it is for a foreigner to post day after day negative news stories about another Country.

The op is Canadian, NOT American, yet bashes America relentlessly.

So I'm going to post negative Canadian stories whenever I can on his America bashing threads.
Click to expand...
You picked a good time!! :D

Scandal after scandal.
 
Locutus

Locutus

Senior Member
#19
Feb 10, 2017
5,928
685
113
#19
PennEd said:
No. I've never been there. I'm trying to point out how insulting it is for a foreigner to post day after day negative news stories about another Country..
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I can't find any positive US news.

Besides Canada is just a pimple on the armpit of the US - so any bad odor from the pit effects Canada.
 
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