Bernanke dodging the truth, as usual

Here we have a piece by Ben showing that the Central bank is discovering low growth.  He covers the problem in the usual horseshit of the employee/inflation mandate; he wants to maintain the MIT Magic Walrus fiction.

In fact, what really happened is the researchers at the central banks are starting to figure out the random process that drives currency banking, something I have been blogging about.  The CBs are looking at this 45 year monetary cycle from the Nixon Shock.  What they see, in the aggregate statistics, is a spectral deficiency, we never have the liquidity to adjust to shocks.  That problem is a direct result of having the US Congress sitting on what is supposed to be a member bank chair.

If the economy has only three or four degrees of freedom then you get recessions simply because you cannot count smoothly.  It is a friggen math problem, I do not even need to talk economics, I just need to talk about a distributed system that  keeps the pricing ratio within error.

Brookings: The headline on a recent piece by Ylan Mui of the Washington Post—“Why the Fed is rethinking everything”—captured the current moment well. The Federal Reserve has indeed been revising its views on some key aspects of the economy, and that’s been affecting its outlook both for the economy and for monetary policy. In this post I document and explain the ongoing shift in the Fed’s economic views. I then turn to some implications, suggesting among other things that, for now at least, Fed-watchers should probably focus on incoming data and count a bit less on Fed policymakers for guidance.