Article #7

In this article David Stockman totally destroys Janet Yellen and her thoughts on the possibility of negative interest rates. He refers to her as a "delusional Simpleton" and a person who says "the same stupid thing over and over again. One interesting thing in the beginning was that the US economy cannot be supported, or more so rescued by central bank policy intervention (according to Stockman). I've said this once but I'll say it again. Stockman, you sir, are a ray of sunshine. Apparently there a two ways that the Fed can our economy today. It can inject central bank credit to raise prices and lower yields. Or it can falsify money market interest rates and the yield curve which will push households and businesses to borrow and spend more. I don't think I know enough or fully understand to make an opinion of either of the options. I want to comment on the whole getting houses and business borrowing and spending more than they have to. Wouldn't that just lead to some more problems. I know borrowing and spending is very good for the economy. Putting money into a bank increases the money supply since interest is applied to it. Spending makes the economy grow as well. But what about spending more than you can actually spend. I believe Mr. Waller once said that its alright and actually healthy for the economy to go through some recessions. It builds immunity since you learn what not to do in the future. So I guess this isn't too bad. Then again I'm just typing this off the top of my head. Sorry if I don't make sense...I tried.