American

Global Domination

Russian fighter jet flies with 5 feet of US Navy plane, State Department says

The incident took place over the Black Sea on Monday, the State Department said.

 The pilot of a Russian Su-27 fighter was "closing to within five feet and crossing directly in front of" the American EP-3 aircraft's flight path, department spokeswoman Heather Nauert said in a statement. That caused the American surveillance plane "to fly through the Su-27's jet wash," the U.S. 6th Fleet said. The intercept lasted two hours and 40 minutes, the Navy said.

DYI:  In the Black Sea??  What if the Russian’s positioned their aircraft carrier in the Gulf of Mexico and then complained about a U.S. fighter pilot coming within 5 feet of one their radar planes.  Our U.S. State Department along with all branches of the military would be going CRAZY.  So what do we expect in the Black Sea a sphere of influence Russia has been protecting for over 500 years?

 DYI

Measuring the Bubble

John P. Hussman, Ph.D.

President, Hussman Investment Trust

February 2018

DYI:  Once again Professor John Hussman knocks it out of the park illustrating in his extensive article how monstrously overvalued the U.S. market is.  Old John is anticipating from peak to trough decline of 66%!  Here at DYI I’m expecting within a range of 60% to 75%!  It would appear Hussman is the optimist.  What must be placed on the table this total peak to total trough may take more than one cycle so aptly displayed by the Japanese market.

  

Nikkei 225 as of 1-31-18

23,098

The Nikkei 225 appears to have bottomed out in 2009; two decade long bear market with a classic double bottom.  Wow!  Could this happen here?  It is possible – that is why I’ve placed this possibility on the table – the U.S. market is coming off of a double secular top (year 2000 and now).

Fred's Intelligent Bear Site brought to you by Fred Filskov. Public, private, and commercial distribution of this material is permitted as long as a link to this site is attached.  This chart is one year out of date but clearly due to the Trump rally we have now achieved a double secular top!

Correct the Shiller PE¹⁰ for the insanely high profit margins and presto change-o you are now spouting 50 times Shiller.  Wow! Wow!  This has the market 197% above the average! Wow! Wow! Wow!  If we go to a typical secular bottom at 10 times Shiller PE¹⁰ the drop would be 80%!  Wow⁴!

Dollar cost averager’s (DCA) have stated many times they have a leg up on value players.  Simply buy every pay period a portfolio of common stocks – an index fund – and let DCA do its magic. Here is a statement from someone writing in on a different economic/investing web site discussing value players vs. DCA.  And by the way his math is correct:

 "Here's what money managers and bloggers never tell you. If you bought the NASDAQ in Mar 2000, the absolute peak of Dotcom bubble, and put $100 per month every into a low cost fund your return per year over the last 19 years is 10.7%/yr. or 201%." And what will it be if the NASDAQ crashes 78% a second time?

As of 1-31-18

6974.50

OK.  Let’s break this down and remember – figures don’t lie but statistics do. Before I break this down here is a quote from the late Benjamin Graham:

"The danger to investors lies in concentrating their purchases in the upper levels of the market..."

This is a clear case of cherry picking data whether by design or accident.  Starting at the ultimate top of a market that experienced a complete washout – that is what a 78% decline does.  The majority of his purchases – 12 years out of 19 – were at the “lower levels of the market” and those that didn’t from 2013 on the NASDAQ continued at a blistering upside pace ending his average compounding return on a high note.  The reason is clear for the great return 58% of his purchases were at the lower levels of the market before the scorching returns at the tail end from 2013.  DCA is great tool but like any tool it has to be used correctly and only purchase stocks at the lower levels of the market.

Once this market goes south our DCA investor's overall high return of 10.7% will evaporate faster than a pool of water in the Gobi desert.  Without the understanding of value your future returns whether great, poor or something in between will only be a function of luck.  If you were a 30 year old plowing money into a stock fund starting in say 1975 [and yes I’m cherry picking] by year 2000 his opinion stock buying is easy and very profitable.  Another 30 year old who starts in 1990 until today would find stock buying neither easy nor profitably robust.   

Margin of Safety!

Central Concept of Investment for the purchase of Common Stocks.

"The danger to investors lies in concentrating their purchases in the upper levels of the market..."

Stocks compared to bonds:

Earnings Yield Coverage Ratio - [EYC Ratio]

EYC Ratio = [ (1/PE10) x 100] x 1.1] / Bond Rate

1.75 plus: Safe for large lump sums & DCA

1.30 plus: Safe for DCA

1.29 or less: Mid-Point - Hold stocks and purchase bonds.

1.00 or less: Sell stocks - rebalance portfolio - Re-think stock/bond allocation.

Current EYC Ratio: 0.90 (rounded)

As of 2-1-18
Updated Monthly

PE10 as report by Multpl.com

Bond Rate is the rate as reported by

Vanguard Long-Term Investment-Grade Fund Investor Shares (VWESX)

DCA is Dollar Cost Averaging.
Lump Sum any amount greater than yearly salary.

PE10  .........34.15
Bond Rate...3.59%

Over a ten-year period the typical excess of stock earnings power over bond interest may aggregate 4/3 of the price paid. This figure is sufficient to provide a very real margin of safety--which, under favorable conditions, will prevent or minimize a loss......If the purchases are made at the average level of the market over a span of years, the prices paid should carry with them assurance of an adequate margin of safety.  The danger to investors lies in concentrating their purchases in the upper levels of the market.....

Common Sense Investing:
The Papers of Benjamin Graham
Benjamin Graham

Investor legend the late John Templeton who coined the 2000 top as The Great Insanity should we call today’s market – The Era of Fools?

  DYI

Build it!

And they will Come!

Massive overbuilding of Retail

Comes to an End!

19 retailers in Pa. closing more than 2,700 stores

This year is off to a difficult start for retailers, with a wave of closures from 2017 continuing into 2018. 

Toys R Us on Wednesday announced it would close up to 182 stores as part of its bankruptcy filing. 

Two weeks ago, Sam's club announced it would close 63 stores. 

These closures follow the trend that began in 2017 and set the record for the most store closings in a year, with about 7,000 retailers shutting their doors.

That’s almost a thousand more than the previous record of 6,163 in 2008 during the Great Recession.

The rise of online sales is continuing, but many online retailers are trying to find storefronts and showrooms. Similarly, traditional retailers are closing brick-and-mortar stores in favor of expanding their online business.

DYI:  How did all of this massive over building come about?  Simple the major culprit was refinancing primarily of real estate along with government refinancing/financing as interest rates began their epic slid starting from the peak September 1981 at 15.32% (measured by 10 year Treasuries)!  Then rates journeyed to their ultra low at 1.50% on July 2016 so far ending the interest rate slide of a lifetime.  This one two punch of colossal size debt creation at lower and lower carrying costs of ever declining rates propelled the economy as our citizens went on a consumption rampage.  This would have occurred whether or not manufacturing was outsourced to foreign lands.  Since it did this placed a supercharger on an economy running its RPM’s at red line.  Two thirds of this so called growth was not growth in the economy it was debt creation of biblical proportion!

Its all fun and games until someone gets hurt! 

This debt binge drove stocks, bonds, and real estate to higher and higher levels achieving the false premise that making money in these three assets as easy.  The first place for someone to get hurt was the high tech dot.bombs peaking in the year 2000.  Stocks lost their allure – for the average investor – bonds continued their bull market of a lifetime as the Feds pushed rates lower and lower.  Of course this pushed real estate into hyper drive – as conservative investors stayed with bonds but our more adventurous citizens went head first into real estate speculation.  We all know how that worked out ending the magnetism of real estate speculation at least for average John and Jane Doe.  All that is remains – from an average Joe’s perspective is bonds.  Of course the million dollar question is; have interest bottom out [July 2016] starting a multi-year bear market for bonds?

 

If rates have bottomed out moving ever higher over a multi-year period only interrupted by recessions then the cat is out of the bag as stocks, bonds, and real estate will be accurately view as difficult assets – though not impossible – to make money.  The economy will no longer have that extra zip as debt will either be worked off or defaulted.  Local and State governments who think their woes are bad now, to use the old expression “they haven’t seen nothing yet!”  As old style pension plans go bust right along with their financing needs as borrowing money becomes more and more expensive.  Expect immense and oversized involvement by the Federal Reserve (yes even bigger than today) and the Federal government as well.  As our citizens work off the drunken party of the last 36 years...One hell of a hangover.

There are two possible scenarios at least in the shorter term that I’m entertaining.  Both involve an economic deflationary recession/depression SMASH!  One:  Federal Reserve embarks upon stratospheric QE moving rates negative such as Europe [Especially Switzerland] or two:  Despite the Fed’s heavy hand tax receipts drop off so significantly rates move up as investors back away from Fed debt demanding higher yields to protect their backsides.

My best guess is for negative rates ending the bond buying bull market of a lifetime.  What I do know long term bonds – as measured by 10 year Treasuries – are now 68% above their long term mean of 4.57%.  Since the bottom at 1.50% (July 2016) until yesterday (1-29-16) at 2.70% that is an eighty percent increase!  There is a recession/depression lurking as the economy has been growing since March of 2009!  To say we are long in the tooth is an understatement.

The Great Wait Continues….Better Values are ahead!

DYI

Caveat

Emptor

(Buyer Beware)

DYI’s Model Portfolio

Updated Monthly

AGGRESSIVE PORTFOLIO - ACTIVE ALLOCATION - 1/1/18

Active Allocation Bands (excluding cash) 0% to 60%

69% - Cash -Short Term Bond Index - VBIRX

31% -Gold- Precious Metals & Mining - VGPMX

 0% -Lt. Bonds- Long Term Bond Index - VBLTX

 0% -Stocks- Total Stock Market Index - VTSAX

[See Disclaimer]

 This blog site is not a registered financial advisor, broker or securities dealer and The Dividend Yield Investor is not responsible for what you do with your money.

This site strives for the highest standards of accuracy; however ERRORS AND OMISSIONS ARE ACCEPTED!

The Dividend Yield Investor is a blog site for entertainment and educational purposes ONLY.

The Dividend Yield Investor shall not be held liable for any loss and/or damages from the information herein.

Use this site at your own risk.

DYI

PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.

Mr.

Market

Nick Barisheff: Gold price manipulation isn't mere conspiracy theory anymore

In an address this month to the Empire Club of Canada in Toronto, perhaps the country's most esteemed public forum, Bullion Management Group founder, president, and chief executive officer Nick Barisheff said gold market manipulation is no longer mere conspiracy theory "promoted by gold bugs and organizations like GATA" but is becoming "self-evident." 

Barisheff described the suppression of the gold price through derivatives trading in which virtually no metal ever changes hands. 

He quoted the deputy chairman of Russia's central bank, Sergey Shvetsov, as saying, "The major gold-producing nations are tired of an international gold price that is determined in a synthetic trading environment having little to do with the physical gold market."

DYI:  Huff and puff among all of the western powers as their debt pile both public and private increases almost exponentially gold prices would reflect this absurdity chasing ever increasing investors from their devaluing currencies.  The big four – Bank of England, European Central Bank, Japanese Central Bank, along with the 300 pound gorilla the Federal Reserve – have suppressed gold prices heavily since the secular economic-market top of the year 2000.  If they hadn’t one or more of these countries would have had a loss of confidence with their currency going into a death spiral exampled to the likes of Venezuela. [Of course the real solution is stop deficit spending begin an orderly pay down of debt along with interest rates above the rate of inflation].

That “real solution” is exactly what the Russians are doing promoted and championed by their central bank chairwomen Elvira Sakhipzadovna Nabiullina.

Russian publicity photo with Putin (left) and Elvira Nabiullina Chairwomen Russian Central Bank (right)

Russian debt is the polar opposite of the western powers and Japan.  If these numbers are accurate – I don’t trust any government’s including ours for factual reporting [I have to put that on the table] their household debt is a scant 13.5% with government debt at a mere 17% of Russian GDP.  Well positioned to weather any economic storm all on top of Russian growing gold horde.  There is you’re real reason for all of the Russia, Russia, Russia, talk in the main stream press.  They are attempting to lure the Russians into another arms race thus trapping into piling on debt degrading their significant economic advantage.  So far Putin hasn’t taken the bait.

In the end Mr. Market will have his way as gold prices rise in price.  As with the price of any asset category it will be a tortured saw tooth rise in price with short term and cyclical down turns in price all designed to throw you out of your position [and severely test your patience].

DYI’s averaging formula if stocks, long term bonds, and gold were all at average or fair value each category would hold 25%.  25% stocks, 25% long term bonds, 25% precious metals mining companies (gold) and then the default position cash at 25%.  The odds of this happening are preposterous but it shows the starting point of DYI’s play off of the late Harry Bowne’s Permanent Portfolio.  Despite Harry’s ground breaking use of uncorrelated assets – and yes it was ground breaking – what always “made my hair set on fire” if an asset category was insanely (easily measurable) over or under priced why on earth would I want to always carry 25%?

Below is what DYI's portfolio would have looked like in 1980.

24% Stocks

44% Lt. Bonds

0% Gold

32% Cash

Isn’t it interesting bonds having a greater role than stocks?  Most folks would be saying that we went on a massive stock market rally until the year 2000.  Unknown too many investors that period of time was the beginning of a bond rally of a lifetime.

      

Of course with gold our formula would have thrown you out of that market (1980) and for good reason as valuations measured by the Dow/Gold Ratio were off the charts for gold.

Below is DYI's portfolio for the year 2000.

0% Stocks

36% Lt. Bonds

64% Gold

0% Cash

Stocks of course in the year 2000 were wildly and insanely over priced.  And I will add very easily seen by any value player worth his or hers salt.  What was odd our formula – and correctly – was for bonds to continue their rally of a lifetime along with gold being the primary profit generator despite going against current dogma of bonds and gold rising together.

Returns since the year 2000 to present (updated monthly).

From High to Low

+356.6% Gold

+266.5% Transports

+147.3% Utilities

+140.0% Oil

+120.0% Dow

+ 86.7% S&P 500

+ 75.4% NASDAQ 

+ 62.3% Swiss Franc's

+ 56.6% 30yr Treasury Bonds

I didn’t compute for the downturn of 2009 however stocks did manage to dip slightly below fair value.  This in turn would have reduced – by formula – our gold and bonds [as Fed’s moved to sub atomic low yields] purchasing stocks (in the 30 percent range) then off to the races with stocks going to the moon and gold having its sell off.  So…Here we are today.

0% Stocks

0% Bonds

31% Gold

69% Cash

Our formula is telling us that it is highly likely for a deflationary economic smash bringing back down to earth stock and bond prices more in line with their respective means.  Treasury securities as well as tax receipts dry up with investors backing away demanding higher yields.  Gold will continue its final journey to massive overvaluation despite all of the combined world wide central banks efforts to suppress the price of the barbaric relic called gold.  

Mr. Market in the end ALWAYS has his way.

The Great Wait Continues….Better Values are ahead!

 DYI

Global

Domination

Trump plans to ask for $716 billion for national defense in 2019 — a major increase

President Trump is expected to ask for $716 billion in defense spending when he unveils his 2019 budget next month, a major increase that signals a shift away from concerns about rising deficits, U.S. officials said. 

The $716 billion figure for 2019 would cover the Pentagon’s annual budget as well as spending on ongoing wars and the maintenance of the U.S. nuclear arsenal. It would increase Pentagon spending by more than 7 percent over the 2018 budget, which still has not passed through Congress.

DYI:  Ever wonder why it is so hard to get ahead financially???  The major culprits that are sucking money out of our pocket’s are:

• Military Industrial Complex
• Medical Industrial Complex
• Educational Industrial Complex
• Chronic deficit spending

The Military is sized up for world domination and as with all empires horrifically expensive sucking much needed monies for stateside infrastructure repair and replacement.  Instead military bases located all over the world along with a navy that commands ALL of the worlds’ oceans.

Medical Industrial Complex is in violation of the Clayton Act as an industry that has committed to price fixing and in violation of the Sherman Anti-trust Act as medical providers move from local to regional monopolies.  Big pharma through campaign donations it is illegal to re-import ethical drugs keeping prices artificially high.  In 1960 this industry absorb 4% of GDP today it is 20% escalating at a 10% growth rate. 

The cost of education from grade one through twelve has ballooned into a jobs work program for the Democratic Party – hence jobs are number #1, benefits #2, indoctrination #3, then finally some rudiment of an education that drives up the cost of real estate through ever increasing property taxes in support of ever demanding school districts.  Then off to college or trade school due to student loans has artificially “pumped up” the cost of education to the point of creating an army of debt slaves.

Deficit spending works just the same as printing money this newly formed debt increases the money supply thus increases the price level of all goods and services.  When disposable dollars are available for savings investing intelligently is required to outpace embedded inflation.  Add on high taxes it is miracle anyone has any level of savings.

When I grew up as a kid in the 1950’s and 1960’s Mom’s stayed at home to raise the children while the men worked.  My father raised 4 children plus his wife [Mom] and himself [Dad] all on a mailmen’s – non supervisory – paycheck.  We owned a house [quickly paid off] a car and plenty of food to eat.  After all of those expenses my Dad was able to save 10% to 15% of his income.  Today, not a chance both husband and wife work kids in day care [public schools] AND I’m now running into husbands [Dad’s] who have a part time job on top of their full time work.  Soon to follow the wife [Mom] having a part time job on top of her full time work as well.  This is unnecessary and outrageous.  I have in the past will continue to “pound the table” regarding these 4 huge areas of mismanagement – and a bevy of fraud – along with their solution in future posts.  You can count on it!

 DYI

Evidence suggests a massive scandal is brewing at the FBI

Yet each day brings credible reports suggesting there is a massive scandal involving the top ranks of America’s premier law enforcement agency. The reports, which feature talk among agents of a “secret society” and suddenly missing text messages, point to the existence both of a cabal dedicated to defeating Donald Trump in 2016 and of a plan to let Hillary Clinton skate free in the classified email probe.

DYI:  The New York Post fails to mention the FAKE and that is not a typo FAKE SHOOTINGS the FBI along with DHS and the CIA have been involved in for years.  Stop terrorizing the unsuspecting American public.

Department Of Homeland Security Capstone Exercises & U.N. Drills

1) Sandy Hook School Shooting

2) Texas Sutherland Springs Church Shooting

3) Las Vegas Concert Shooting

4) Boston Marathon Bombing

5) Orlando Pulse Nightclub Shooting

6) Charleston Church Shooting

7) Manchester Concert Bombing

8) Times Square Car Attack

9) Waco Twin Peaks Biker Shooting

10) Alpine Texas School Shooting

11) Charlie Hebdo Shooting

12) Oslo Bombing and Shooting

13) Aurora Colorado Theatre Shooting

14) Virginia Live News Crew Shooting

15) Nice France Truck Attack

16) Istanbul Airport Bombing and Shooting

17) Paris France Mass Shooting

18) Ft. Lauderdale Airport Shooting

19) Melbourne Australia Car Attack 

20) Lockhart Balloon Crash

21) N.Y. Central Park Bombing

22) Atlanta Olympic Bombing

23) San Antonio Rolling Oaks Mall Shooting

24) San Bernardino School Shooting

25) Cascade Mall Shooting

26) Berlin Truck Attack

27) San Diego Pool Shooting

28) U.K. Parliament Attack

29) Dallas Police Shooting

30) Israel Truck Attack

31) Chattanooga Bus Crash

32) Barcelona Van Attack

33) Los Angeles LAX Airport Shooting

Stop being the silent hostage to the psychopaths in the driver seat.

DYI 

Global

Reset

Russia Should Overtake China’s Gold Holdings in January 2018

As we have reported on a number of occasions Russia has been moving ever closer to 6th position in global gold holdings and she is now within a handful of tons of physical gold to achieve the next step. 

Russia added a recorded number of tons of gold to her gold holding in 2017 with 223 tons added to the central bank’s gold reserves. Please keep in mind that Russia has agreed to sell China between 80 and 100 tons of gold on an annual basis, so that would be in addition to what Russia added to her gold reserves. This means Russia has either been acquiring more than is being reported or she is mining more than is known about. It has long been accepted that Russia mined approximately 250 tons gold annually but these numbers seem to create an imbalance in the number of tons being mined or the number of tons being acquired on the open market.

Russia has made their intentions clear that she wishes to move away from the Federal Reserve Note payment system and sees it as a threat to their national security. This is the number one reason for acquiring gold that will eventually rebalance their books with a much smaller holding of U.S. debt (bonds/treasuries). 

DYI:  When the global reset for world currencies occurs Russia will have a seat at the big boys table not only due to her gold horde their household debt (13.5%) and government debt (17%) to GDP is well positioned to weather any economic storm.  Plus the Russian central bank is maintaining interest rates greater than inflation that will encourage a paying down of household debt further strengthening the Ruble.  On a monetary basis Russia is doing an A+ job what needs to happen Russian political elites encourage small business formation.  Russian citizens need their version of the American Dream; small business formation is that ticket.

DYI

Flu

Shot

Inverse

Correlation

Greater the Advertising

Less it’s Effectiveness!

DYI:  Did you get your flu shot?  No? Well neither did I and yes when my doctor recommended the shot at my last visit…Well…I lied and said “I got the flu shot at work!”  Yep my pants we’re ablaze!

Influenza changes its strain faster than I can change my underwear and this year is no different.  Why is this year so heavily advertised along with the main stream media telling us there is an influenza outbreak of biblical proportion? Yet have you seen multiple co-workers, friends, or relatives, becoming horrifically sick?  No???  Well neither have I.  Sure one or two folks you know may have had the flu but no different than any other year.  Don’t get me wrong people can and do die from the flu but I’m talking about a major outbreak.  Simple, this vaccine is almost totally rubbish since the strain has changed since its development.  So…Advertise to the hilt and have the main stream press gin up a FAKE epidemic attempting to herd you like cattle to receive your life saving shot that at best has a 10% chance of keeping you from the flu!  

Big Pharma at its  best!  Now how bout those Statin drugs???

 DYI

End the Fed!

Cassandra of the Crash: An Interview With Former Dallas Fed Researcher Danielle DiMartino Booth

Q: Do you think Fed policy might have influenced the past few years' stock market run-up? 

A: Might? You can connect the dots. With the lowest interest rates in 5,000 years, you have companies borrowing to buy back shares and have earnings per share go up. It's mathematical. Thank you, Fed! 

DYI: Bingo…Zero to sub atomic growth in the economy and yet the market flies to insane valuations all to the tune of debt, debt, and more debt purchasing back stock driving earning per share profits higher.  A magician's trick of smoke and mirrors!

Yet what have they done in creating anything of lasting economic sustained growth? Look at productivity growth, and you'll see it's a whole lot of nothing. I'm not casting stones [at the companies whose stock price is going up]. They are behaving rationally in a world where central bankers are behaving irrationally.

Q: Is propping up Wall Street at the expense of Main Street a meaningful way to critique the past decade of Fed policy? 

A: Check the average yield on a certificate of deposit [and it's clear normal savers, who don't want to play the stock market, are in trouble].

DYI: Sub atomic low interest rates have crucified individuals who have no desire or temperament for stocks and/or bonds crushing their capacity to out pace inflation.  Retiree’s have long since given up the possibility of living off their interest income and have resulted in draw downs of principal – when exhausted are relegated to poverty.  In the Fed’s attempt to solve the economies problems they have created a systemic social problem – impoverished elderly – only terminated by death!      

Even if you take the garbled inflation metric the Fed uses that doesn't apply to anything on planet Earth, core CPI [Consumer Price Index, which doesn't count things like energy and food that most Americans spend a lot on], you see Main Street cannot be prudent in its investment decisions.

DYI: Lower middle class, working class, and working poor energy and food are a huge proportion of their spending [along with housing].  To remove this from the CPI is intellectually dishonest.  

 My 70-year-old retired mother asks, "Shouldn't I have something higher yield?" But I say, "Mom, you are 70, you are not getting junk bonds."

DYI: At this time period [1-23-18] of course not.  Not because junk bonds are always inherently bad the spread between junk and Treasuries is so narrow during a downturn would produce huge losses.  However, during an economic smash junk bonds [bought in a mutual fund such as Vanguard] yielding greater than 10% (1000 basis points plus) than Treasuries junk would move from a speculation to investment; and yes suitable even for a seventy year old!

Q: You make a bit of a joke in your book aimed at Ron Paul and his end/audit-the-Fed movement. 

A: My issue with Ron Paul is that if you install a political-agenda-free individual in leadership of the Fed, it won't need to be audited and will run itself appropriately.

DYI:  Oh please…And where are you going to find these angels in a sea of agenda filled devils??  There is only one way to end the devils work is by ending the Fed!  

People can be put into the position of leading the Fed who have been on the receiving end of Fed policy [as business people] and don't need it to be a shrine to [John Maynard] Keynes [the British economist associated with the idea that government often should borrow and spend to jump start economic growth]. There is not enough diversity in the way economics is approached inside the Fed, too much group think and too many academics.…Hire people who can read a balance sheet!

DYI:  Oh good Lord here we go again!  If we just have the right people and all will be glowing.  Balderdash, hogwash, full-blown twaddle!  The Fed from day one was put together institutionally to drive wealth into the elites hands – all devised by the mechanics of the Fed.  You could have every employee an angel in the mist of devils;  the outcome would be the same!       

[The real reform the Fed needs] is to take away its 1977 dual mandate [to keep both inflation and unemployment low]. Take it back to a single mandate to make the dollar in our wallet buy the same tomorrow as it does today, and call it a day.

DYI:  Real reform??  No only ending the Fed will accomplish that.  Ending the full employment mandate I would agree is a step in the right direction; ending our debt based system inflates profits for the New York City moneyed center banks all owned and controlled by elites.  End debt based currency economic recessions will be far less severe as a huge majority of corporations/citizens being debt free diminishes the effects of the business cycle.  Bring back a sound dollar, a non inflationary dollar our wealth inequality would be slashed significantly! 

DYI