Janet Yellen: Micromanagement taken to extreme

Maybe the next step is - weekly data and adjusting Fed action accordingly? O tempora! where has intellectual honesty gone?
Janet Yellen says economic data hasn't notably strengthened - Business Insider

Calafia Beach Pundit: Richer than ever

These stats are for entertainment more than serious discourse. Say we trade all shares suddenly at twice their present worth? and do the same with Real Estate? Are we really twice as 'rich'? It is all hot air, some win at the expense of others

Calafia Beach Pundit: Richer than ever

Money Laundering: The Madness is growing

 Wen das neue Geldwäschegesetz betrifft | private-banking-magazin.de

Confused Thinking on Pensions

Who wants to argue with mighty Wall Street Journal or Bloomberg? These Media giants dominate public discourse but I still want to put pen to paper with my five cents of wisdom:

Quo usque tandem?

The (endless) debate about pension reform would benefit if one aspect would get sufficient consideration: which of the three possible methods (DB,DC or State Pension) is CHEAPER to run? While DB providers are usually financially astute corporations - at least in most cases - and able to select providers that give decent value and performance the great unwashed public that gets shunted into Defined Contribution Schemes is easy prey for expensive providers that often do not give good performance to add insult to injury.

If you expect ordinary citizens that are not trained in financial matters to select providers and/or decide matters of asset allocation they have as much chance to get it right as if they are expected to do brain surgery on themselves..

State Pension systems should be simple to run. One large computer, a few details about each individual. No difference in benefits - the better off or those more thrifty can make additional savings to pay for the lifestyle they desire to have in retirement. When the day arrives the system will start sending out the pension, no need for lengthy and expensive verification. 0.01% should be enough to run the system - compared to fees on fees on fees for DC, and only marginally less for DB schemes.

https://www.bloomberg.com/view/articles/2017-01-03/the-401-k-problem-we-refuse-to-solve

Don't blame Capitalism for Underinvestment

Massive increase in state spending over the past 40+ years - as measured in relation to GDP - has resulted in less disposable income, less saving and as a consequence less investment in most 'Western' economies. The greater part of state spending is earmarked for miscellaneous free goodies, so-called 'social' services that are nothing else than consumption.

Free Trade Doctrine hits the buffers

Adam Smith may have left us a nice homely with his illustration of free trade benefits (selling nails to Portugal in exchange for wine). And there certainly is an element of truth in it. Exchanging goods and services with others DOES bring benefits to both, domestically and internationally.
But one can take this doctrine too far. When societies that are on a completely different level of development are suddenly brought into the pictures (China, India etc) one cannot allow them to compete on an unconstrained basis and accept them as equals in the marketplace.

ECB blabbering

"Taken together, the ECB's current policy settings are appropriate and are clearly providing the support required to sustain the recovery," Coeure said, adding that support will stay in place "until inflation is sustainably adjusting to our objective."
Well, Benoit Coeure - a signed-up member of the unelected Eurocracy ruling over us and stealing from all hard-working savers in the Eu(rozone) - utters another non-sensical and contradictory statement.
What does he mean by 'recovery'? it probably means economic GROWTH, but then he seems to indicate that inflation is 'their' objective? So would that mean inflation running at 2, 3 or more percent would be 'success', whatever the level of growth?