KFTC: The Federal Reserve

Good news! Everyone claiming doom and gloom in the economic news can suck it. Ben Bernanke is on the case. 

"At this point, we're not seeing a major risk to the U.S. financial system or the U.S. economy." 

Rest assured, the Fed will wait until shit hits the fan to assess risk.

KFTC: Ben Bernanke

“If the outlook for the labor market does not improve substantially..."

Ha! Contemplatin' the mothafuckin' ifs. KFTC.

O, Say Can You See?

The world's largest collection of personal data/surveillance, drones over home soil and now this. Main man is batting for the cycle.

Having visions of the Caps winning the Cup?

I am. Caps. Fuck yeah! Nuff said.

So before I watch RTB's whack ass music, I must reiterate. Caps gonna win the cup. Better Bah-leeve dat!!! Oh yeah, besides violating the Den's sense of decency I've noticed RTB has been neglecting to label or tag his posts. WTF, ninja? At least slap a KFTC on there or sumtin..............sheeit.........

KFTC: LAPD

"The FBI shelved its investigation in 2005 after failing to find enough evidence to charge anyone. The LAPD probe is continuing." Keep Fuckin' That Chicken. 

"I always thought that the badge a cop has was more like the shield that Captain America has. It's an obvious sign of good and something you'll protect other people with, but it will also protect you." - Judd Nelson

KFTCTTBFO: GOP

I never thought I would use this godforsaken acronym, but BMR already had these guys banging poultry today (with good reason) and I just couldn't wait until tomorrow to post this.

This is, in one chart, what the debate over the Bush tax cuts is all about:The blue is what everyone saves per year under the Democrats partial repeal, which passed the House today (and I think is a bad idea anyway, though obviously not as bad as the GOP plan). The red is what would be tacked on by the GOP's full extension, except that the last bar, for those making $1 million or more a year, which actually should go up over $100,000 - there just wasn't room to fit it without destroying the rest of the graph.

And we're arguing about this when either policy would hugely increase the national debt, while at the same time freezing federal pay, letting unemployment benefits expire, and receiving new deficit-reduction proposals virtually every day.

Wow I fucking hate U.S. politics sometimes.

Concept of the Day: Context

BHMF linked to this post by aspiring chemist Benjamin Lee as a rebuttal to BMR's post on Paul Krugman. So let's take a look at Mr. Lee's argument, shall we?

He begins by mocking Dr. Krugman's "so-called deflationary spiral", pointing out that we've had "six straight months of price increases". In other words, deflation can't be a potential problem, obviously, because it's been half a year (six whole months) since inflation was less than or equal to zero. So why does Dr. Krugman fear deflation? To the data...
So inflation has been trending downward ever since the economic crisis started. And the last point on the graph above (from October) represents "the smallest 12-month increase in the history of the index, which dates to 1957." Wow, our "Nobel Prize-winning economist" (scare quotes from Mr. Lee) sure hasn't been paying attention, huh?

But on to our main theme: Context. Mr. Lee goes on to make the argument that Dr. Krugman was correct in deeming deficits a problem during the Bush years but contradicting himself now by saying deficits are part of the solution to the economic downturn.

But he ignores that the situations surrounding those deficits were completely different! President Bush and the Republicans in Congress rolled up huge deficits while the economy was growing and, as a result, federal revenues were rapidly increasing. It's not really any secret how:

• He passed two massive ($4 Trillion) tax cut packages...and cut no spending to offset them.
• He started wars in Afghanistan and Iraq (to the tune of $1 Trillion)...and did not raise taxes or cut spending to offset them.
• He passed a massive ($400 Billion) Medicare prescription drug benefit...and put it entirely on the deficit.

Compare that to Obama, who passed the stimulus (the goal of which was deficit spending) and....well, that's about it, actually. (The Affordable Care Act was completely paid for via spending cuts and tax increases.) The increase in the deficit under Obama is almost entirely because of the shitty economy (people who don't have jobs don't pay taxes, reducing revenue, while often requiring safety net services, which costs money).

Basically, my understanding of Krugman's view of the 2008 economic slump is that the financial crisis triggered a panic, in which everyone suddenly said "Holy shit, my savings are gone, my house is under water, I might lose my job....I need to save every penny I can right now!" But everyone can't suddenly start saving at once without the money coming from somewhere. The result is that the economy to steadily contracts as less and less money is flowing around. [Imagine a two person economy where every day I sell you something for $10 and you in turn sell me something back, also for $10. Every day we each earn $10 while also getting $10 worth of goods. But if we each suddenly decide to save 10 cents each day, on day 2 we're each only making $9.90 and by day 50 the economy stops altogether.] This is especially bad, because the contraction leads to reduced growth expectations, which lowers interest rates, which decreases the incentive for people to invest their money rather than stuff it under their mattress (and if inflation turns to deflation, suddenly people make money by holding cash, and the whole economic engine starts functioning backwards).

So the solution is have someone put money into the economy so that the savings shock doesn't cause massive contraction (and mainly widespread, long-term unemployment that can ruin people's lives and, if it lasts too long, limit the growth potential of the economy in the future), in one of two ways:

1. The federal government can run a big deficit during the shock. After all, if the federal government, the largest consumer in the economy, joins in the savings frenzy by cutting spending, it only increases the contraction.
2. The Fed can basically create money during the shock (so in the example above, when everyone takes their 10 cents, there's still $10 moving around). This will reduce the value of the currency to some extent (what the Fed is doing is not huge), but that's not really a bad thing, since it decreases the incentive for destructive (i.e. mattress) savings.
   

And yes, both of those options increase inflation expectations, but that is absolutely a good thing given the state of the economy right now (see the discussion of current inflation and the problems with deflation, above).

Moreover, Mr. Lee never acknowledges that while Dr. Krugman advocates further deficit-financed fiscal stimulus (as does Chairman Bernanke, a Republican originally appointed by Bush), he has always made it clear that America needs to make serious strides to address our longer-term debt issues. And that has to start with reforms to Medicare and how America does health care more broadly. But the GOP has said that's evil, too.
As Mr. Lee notes, "in 2003, [D]r. Krugman wrote a great article with an incredibly accurate picture of the financial health of the United States at the time." Perhaps Mr. Lee should consider whether Dr. Krugman, so prescient seven years ago, might also know what he's talking about this time around.

KFTC: Crazy Bitches

Wow. There are quite a few things in this story that make me scratch my head. You're 30, why are you fucking around with 19 year-olds? If you are indeed packing your schwanz into a 19 year-old vajayjay, why are you tattooing it's name on your neck. Why does anyone, R.J. Bentley's waitress or otherwise, get their neck tatted?

Hold the Fuckin' Phone: Guy In the Next Stall At Work

Is the guy that was in the next stall a moment ago for real? Who does the 'water rinse' only after pinching a loaf? The 'water rinse' can slide after a piss, I've seen it done. 'Water rinse' post-deuce is one of the boldest workplace maneuvers there is. It's not like I was creeping and caught the dude, he knew other cats were in there. KFTC, guy in the next stall at work. I guess we're never making any bets.

KFTC: Ohio Sports

This is great television. The Bengals front office should collect some type of reward. This is going to be a total shit show.

I know I'm talking shit to a team that beat my birds, but fuck two road games on a short week.

KFTC: Sheyla Hershey

American dreams so rarely get to come true. All Sheyla Hershey ever wanted was some 'M Cup'-sized breasts.

KFTC: Matt Drudge

I know this fuckbag has already been the Gay Clone of the Day, but his schtick never tires like Pontius' fedora. Seriously, what the fuck is this guy on about and which analysts did he hyperlink to? Deutsche Bank. Wall Street analysts don't like this upper tier tax cut getting... cut, I guess, for lack of a better word. Fuck you, Matt Drudge. Fuck you, Deutsche Bank. Paulie, get out of that fucking barn, the hay is on fire. And give me some goddamn Ravens tickets if you're not using them.

KFTC: Shoulders' Childhood Role Model

Oh, L.T. How fitting that Ray Lewis eclipses your greatness on the field as you spiral into a punchline. What ever will become of thee? When will you stop wearing dangling cross earrings? You plead not guilty to four charges and let BMR extend his wishes for you to keep fucking that chicken and stop fucking minors. Seriously, KFTC, SFM.

Wow.: JaMarcus Russell

Hang on a second, you're attempting to salvage the NFL's biggest trainwreck career and you did what? KFTC, sir. What's up wit' da Purple Drank, you say? Let ol' Boogas get yo learn on. "Just Slow Your Roll".

KFTC: Michael Vick

Well well well, Mr. Vick. Good to know you're still dumb as fuck. I was calling for my Dirty Birds to scoop you up last year and I guarantee if you were a Raven, you wouldn't be under investigation. AGAIN. You dumb fuckin' prick. Goodell says it appears to have nothing to do with you, but the fact that your name is coming up in the same sentence as 'gun' is not a good thing. We have a saying here in the Den, although ScarShoulders version of it is really fucking gay, but it's called 'Keep Fuckin' That Chicken'. Notice it's 'fuckin' that chicken', not 'put this chicken into a ring with that chicken and see which one dies'.

Oh yeah, way to make the five worst backup QBs in the league list.

KFTC: Maradona's barber

"Now you see, when the goalie reaches up to make the save, punch that shit with your fist. No one will know. If they start asking you questions and shit about rules, tell them it was God's hand."

JOTD: Mark Halperin

That's what's I'm talkin' bout. Drudge Report is the "urge to look at car crashes" that is news websites. KFTC, Matt Drudge. You fuckin' clone.