Deflation the Biggest Risk of the Economic Crisis? - Janet Yellen

[kymes]

This video made me laugh out loud, then I coughed.

[PissedFechtmeister]

@kymes It made me laugh and then cry. Why is an idiot like this in charge?

[TheBestTroller]

Its a well known fact that the best economist will tell you that the best economic practices are a conservative approach. Not a liberal one. It makes sense why San Fransisco is in a mess...

[tinydancer1965]

If Obama is appointing her, then I can't trust her.

[burntout84]

Price stability is an inappropriate goal for the fed. prices are determined by supply and demand. They go up, they go down. There's nothing the fed can do about that. Herbert Hoover tried to stabilize prices and look how well it turned out. But Yellen and the others advising the President are totally clueless. They don't know about history and they don't' know about the great depression. Earth to Yellen: the fed creates the inflation and deflation. You cannot micromanage the economy

[Artfryne]

FUCK YOU YELLIN

you're just another London business schooler, keynesian bullshit artist covering your own ass

[BeadStallcup]

What a stinking, twisted fucking liar this dreadful woman is! She knows she's lying! Just to protect her overpaid gov't job, she's saying these things. Wake up America! It's out of the frying pan into the fire we go with these two-bit bureaucrat parasites at the FED.

[EdgeRetro]

Oh thank you thank Fed, for saving us from affordable prices, efficient markets and sound money. I feel soooo much safer now.

[EdgeRetro]

Remember that movie where a mom and her two kids have to leave their small-town home and move to an apt in the city, and the teenage son falls for this older girl in the apt complex? This lady talks just like that little hussy.

[dleddy14]

This video is proof that we are ruled by aliens.

[crusaderg77]

lady, what about the dollar. What happens if it collapses.

[bertly71]

I wonder how you can take increases in food and energy costs out of the inflation calculation and have an accurate number?

[mongobobo]

Funny how you address only the first three words of my post. I completely agree with your assertion and I am far from a Keynesian. I was simply describing what a "Deflationary Spiral" looks like for the above poster. However, you can't possibly suggest that deflation doesn't negatively effect an economy, can you?

[613kc]

"To worry about inflation in this context is a sick joke."!

[beancube2008]

I have a scheme to find out who took those scammed and disappeared money that they loop holes with housing sub-prime and those inflated bubbles loans that they used loop hole blackmailed credits hedge fund accounts. They are still trying to blackmailing us into another scam. I want audit or we should build competitions for them off-shores and in neighborhoods. Reform SEC and Bankings for our $Y$TEM TOOL$!!!!

[donharlan1]

It's as simple as this -- increasing unemployment means increasing deflationary pressures. She's right.

[crusaderg77]

thats right. but theres another factor influencing inflation, the price of the dollar. If the dollar collapses, u have inflation.

Look at zimbabwe they had increasing unemployment, but that didnt ease the inflation.

[donharlan1]

If the dollar loses value respective to other fiat currencies, the price of oil will increase and that will cause inflation. However, the US consumes three times as much oil as China. And, the US imports $60 billion of goods from China. As consumers lose their income, they will reduce consumption of oil and Chinese goods. Hence, deflation. US to Zimbabwe is not a good comparison as the dollar is the reserve currency and the US has a GDP of $14 trillion and Zimbabwe has a GDP of 3 trillion.

[donharlan1]

Error, Zimbabwe has a GDP of $3 billion.

However, a planned dollar devaluation is possible; probably not a bad idea to hold some precious metals.

[marvinvarela]

I really don't get it. How can deflation be considered bad? Is there anyone here so kind to explain?

[mongobobo]

Deflation is bad because as prices on goods and services drop, the producersof those goods and services have to cut costs in order to maintain profits and or solvency. Cutting costs involves cutting jobs or pay and capital to vendors. So on and so forth and there you have it: A Deflationary Spiral.

[n0us3rn4m3s4v41l4bl3]

If u only define inflation as an increase in prices from the previous year, and your restrict your basket to goldman's portfolio, and ur only concern is whether goldman makes money next quarter, then u might be right.

[migkillertwo]

learn about austrian economics bitch.

[sugarpuddin88]

Gimme a Break!

After the Tax Payer bailed out Merrill Lynch, they turned around and gave their executives 3.6 billion in Christmas Bonuses!

AIG awarded $500 million in bonuses to its executives after accepting a $173 billion government bailout

UBS bank was fined 700 million for tax evasion; then Congress gives them 5 billion free tax payer dollars

102 tril SS & medicare

25 tril TARP & bailouts

53 to 67 tril from other trusts

Every single American man, woman & child owes over $600K in debt

[GBS990]

Is this Jimmy Carter in a blond wig?

Wage cuts yes, but have you bought groceries lately???

Keep your hand on the pressure valve, that should cure everything.

[blackiron60]

"Maximum employment"? The entire population could be employed easily if the economy was not run by idiots like this!

[jonz23m]

since the way they measure inflation is cooked anyway there is no reason to believe a single word they r saying.

[jbBuckn]

yea like im gonna listen to the pres of a federal bank. She a god damn crook if she works for the fed

[Ontologistics]

The federal Reserve's predictions thus far has been dismal. Ben Bernanke explicitly didn't think sub-primes would lead to a crisis!

Moreover, the Federal Reserve is not federal but a private company, which causes inflation by printing money ex nihilo ('quantity theory') thereby benefiting themselves and their cronies at the expense of everyone else.

The Fed is unconstitutional (Article 1, §8), and a disgrace to America.