Janet Yellen interview (Part II)

This is the second part of the Janet Yellen interview from the documentary, Money for Nothing: Inside the Federal Reserve. As in the earlier article, I will highlight some of the questions, capture her response, and provide commentary.

Question: U.S. Government debt has grown much faster than the economy. Will the Fed be forced to devalue the Dollar?

A lot of people have the view that government debt is ultimately inflationary. I’d like to take issue with that. It is not ultimately inflationary if you have an independent central bank and that central bank keeps its eye firmly focused on price stability. It is our job that regardless of what happens to the deficit and debt, it does not translate into inflation. When we get out of the crisis, we will have to tighten monetary policy and interest rates could go very high. But we do have the tools to contain inflation and whatever the government does or does not do with its budget, it does not end up as inflation.

Comment: Inflation is an increase in the amount of outstanding money and credit. If government spends more then it has to ask its people for more tax money or it has to borrow. Let’s use round numbers and say that the Federal Government borrows 40-50% of its budget. If the Fed is buying a good portion of this debt, and they are, where does the Fed get its money to buy the debt? The Fed Wizards create this money through accounting entries in banking cyberspace thus increasing the supply of money, which by definition is inflation. The inflation is visible in the prices of financial assets and has reemerged to some degree in housing. When Main St. thinks of inflation, they think about rising prices (an effect from inflation). If the Fed has the tools to control inflation, then perhaps they can explain the origin of recent financial bubbles.

Question: Can the Fed really control the rate of inflation?

We are totally [my emphasis] responsible for inflation in the long run. I don’t mean over 3 months, 6 months or even a year. But we can as a central bank, commit if we are going to have a low inflation rate and if we don’t get there it’s no one’s fault but the central bank.

Comment: We can conclude that she means that low inflation is good. Does this mean that the high price inflation of the late 1970s was the central bank’s fault? Does this mean that the financial asset bubble (inflation) is the central bank’s fault as well? I agree that there are things the central bank can do to control inflation particularly in the long run, however, if that is the case why is the Dollar worth a fraction of what it was when the Fed was born? Perhaps the Wizards are not in control?

Question: Should the Fed have raised interest rates sooner to defuse the late 1990s stock bubble? What has the Fed learned about bubbles since then?

Who could have looked at the Nasdaq in 1999 and not had some concern that these prices had reached bubble levels? Shouldn’t we have tightened monetary policy to address it? I think what most people would have thought inside the Fed then, and I wasn’t but I agreed with it, was we have an economy that in terms of the goals Congress assigned us (jobs, price stability), it is doing just fine. It does not need a tighter monetary policy and if we tighten monetary policy to bring stock prices down, we are probably gonna have to tighten a lot. We are gonna harm our performance on all the things Congress put on our scorecard.

This has been a devastating financial crisis. It is hard to pick up the pieces. We have intervened very aggressively and stopped what could have been an utter financial meltdown. Most members of the Fed anticipate that we will have high unemployment for a number of years despite our best efforts. We have pushed close to the limits to what we can do to address that.

Comment: Former Chair Greenspan warned of this overheating with his “irrational exuberance” comment. His supposed mastery of the economy led him to be called Maestro. The button pushing and lever pulling of his wizardry focused on a humming economy, regardless of what excesses were created elsewhere. Once again, the Fed goals were stretched beyond its original intention (provide liquidity) through Congressional mandate of focusing on jobs and price stability. Yellen’s immediate predecessor, Bernanke, suggested that part of the Fed’s mission was to keep the stock market high and Wall St. waits on bated breath for whatever the Fed says. Fed mission creep, whether self-inflicted or congressionally inflicted, creates the Wizard aura and makes their job much harder.

The Fed has intervened quite aggressively, so much so that despite their purchases of trillions in assets, we do not have rampant price inflation except in the area of financial assets. That makes sense since that is exactly what the Fed is buying/has bought. If instead of buying financial assets, the Fed had bought cars, what do you think the price of an automobile would be?

The Fed has been waging a death battle against deflation. Had they not intervened in purchasing financial assets, the value of those assets would have plunged. The financial markets never finished the catharsis that started in 2008 and now have instead re-inflated. As the Fed Chair said, “we have pushed close to the limits”; indeed they have. The popping of the financial bubble will demand the Fed push those limits again, but those limits will prove immovable.

Dodge Durango blower motor resistor troubles?

If you own a 2001-2004 model year Dodge Durango or Dodge Dakota and you have experienced blower motor resistor troubles, this article is for you! Tell-tale signs of a Dodge blower motor resistor which has gone on the fritz commonly involve the high-speed functionality of the vehicle’s blower motor. This is typically noticed in one of the following two scenarios:

High speed blower function no longer works but all other speeds work fine
Only high speed blower function is operational while remaining speeds are inoperative

If this happens with your vehicle, the likelihood is that the blower motor resistor will need to be replaced. If the blower motor has completely stopped working in your vehicle, the resistor still may be the problem, but other potential causes for the failure should be ruled out first so a bit more detailed troubleshooting is prudent. Even when the problem is caused by a defective blower motor resistor, the repair may not be as simple as replacing the resistor itself.

When a blower motor resistor failure occurs on these specific vehicles, a quick visual inspection of the electrical connection to the resistor may reveal that a large amount of heat accompanied the failure. It is not uncommon to discover a partially melted electrical connector and in some cases, the wires entering the connector may show signs of burned or melted insulation as well. Fortunately, all of the components required to perform this repair are available bundled together as a single repair kit. The parts gurus at Ann Schmidt Chrysler Dodge Jeep market this kit on eBay for a very reasonable price. Any of the following Metro Detroit Dodge dealerships should also be able to order the parts, with the wiring harness pigtail repair kit being part number 5017124AC and the blower motor resistor being part number 5061575AA:

Bill Snethkamp – Highland Park
Ray Laethem Chrysler Dodge Jeep Ram – Grosse Pointe
Northland Chrysler Jeep Dodge – Oak Park
Galeana’s Van Dyke Dodge – Warren
Roseville Chrysler Dodge Jeep Ram- Roseville
Telegraph Dodge Chrysler Jeep – Taylor
Southfield Dodge Chrysler Jeep – Southfield
Suburban Chrysler Jeep Dodge Of Troy – Troy
McInerney’s Woodhaven Chrysler Jeep Dodge – Woodhaven

It is not for the casual do-it-yourself individual, however, as it does require cutting, splicing, and soldering the vehicle’s electrical wiring harness. If you do not feel comfortable performing this level of repair on your own, purchasing the kit and then taking both your vehicle and the repair kit to your local certified automotive technician is a good option.

Once the new blower motor resistor has been installed and the wiring connector repaired, you will find that the blower motor is functional again. As everything will appear to be working properly, most people will consider the repair complete and move on, only to find that the blower motor resistor fails again a month or two later. This problem can be avoided.

Remember the large amount of heat we discussed earlier? This heat frequently results from a blower motor which is drawing too much current, thus causing the resistor and connector to heat up and fail. To ensure your vehicle is truly “fixed the first time,” be sure to replace the blower motor with a new one anytime a blower motor resistor failure is accompanied by a melted electrical connector. New blower motors can be acquired directly from your local Dodge dealership (Chrysler part number 4885669AC) as well as numerous aftermarket vendors. I have personally used Discount Starter and Alternator with great results but there are others out there too so don’t be afraid to shop around a little.

Happy Motoring!

Better Business Bureau plays ball with collection complaints

Are you reading all the news that’s fit to print? Rounds of cost cutting across America have made that a more challenging goal. Most Examiners cover their topics in addition to working on other projects and when businesses that cut their costs too much make aggressive demands for our attention, it takes time away from the time needed to provide quality coverage.

You can see a classic example in this 2 part photo. The debt collection agency of Caine & Weiner is demanding I pay them thousands of dollars although I did not sign a contract with the vendor and I did chose to pay another vendor to perform the service. Consumers have the right to request verification. When I did this by filing a report with the Better Business Bureau, I pointed out that I chose not to sign the contract and opted to prepay a trial, just like millions of other Americans who chose pre-pay plans over complicated contracts. The company’s response speaks for itself – sending me unsigned correspondence on its letterhead (above) and this copy of the contract which I clearly did not sign (below). It may be less expensive to have computers send out letters, but it is not a dependable way of assuring quality control.

A check of the Caine & Weiner website illustrates the company’s minimalist approach to quality control. The executive profile of corporate counsel John Pucin states that “He is admitted to the State Bar’s in Pennsylvania, Illinois and Ohio.” That’s interesting. Why can’t someone who graduated from law school spell the single syllable word “Bars” correctly, or at least pay someone to proofread and correct documents?

Lots of other consumers have had similar experiences and it looks like real leaders in the business community need to step up to the plate and be realistic about the impact this kind of publicity has on all American business. The Business Consumer Alliance reports that Caine and Weiner had 51 closed complaints over the previous three years. Look what consumers have published publicly about this firm on Yelp: John R. of Reno, Nevada published this detailed report with third party verification from a manager at blue chip firm Pitney-Bowes: “This company sent out a letter saying they represent Pitney Bowes Inc and they were going to charge me $1,000.00 dollars unless they receive an old postage meter. Called Pitney Bowes spoke with a Benjamin call ref #*****0611. Ben said our account is up-to-date and they have no contract with Caine & Weiner and to disregard the letter Ben said it is some kind of scam. Pitney asked for the details on letter and said that they were trying to stop this company. Some business have been talked into giving acct numbers or to send scans of printed postage. Call Pitney Bowes ASAP if you receive this letter. Benjamin said DO NOT call back or give any information to this company.”

An October 24, 2013 complaint filed with the Chicago area Better Business Bureau underscores the burdens of corporate cost cutting at the expense of consumers. As the complaint published at this link shows, Caine & Webber did not even check that the American they were sending threatening letters to was the debtor.

If you would prefer to be inspired by the positive example of well managed businesses that support a positive image for American business, read a recent report from a sports business convention at the San Diego Convention Center at this link.

Things To Know Regarding Matters Related To Vehicle Finance

Do you want to purchase a vehicle? In today’s world, there are only a handful of people who can afford to pay off all that money in cash a high end vehicle would cost. But what about those who desperately need a vehicle either for personal or commercial purposes, but cannot afford to pay the sum at one go? Keeping the needs of such people in mind, these schemes about Vehicle Finance have been launched by quality financial institutions.

What kind of schemes can you think of in this regard? There are host of schemes to choose from, depending upon the choice and make of your desired vehicle. Funds that would be granted to a person for purchasing a certain vehicle will also depend on it being a new or an old one. Additionally, if a person wants to avoid any kind of dealership, they can avail Private Finances for vehicle purchase as well.

And what would a person need to do with regards to his choice of vehicle? This is matter of personal taste, with little room for solicitation here. But it would be advisable to keep in mind a few things before making a choice. As you are seeking finance for which you have to pay off periodic interests, it is advisable to opt for something which offers nice features as well as good value for money. An eye should also be kept on discounts and interest rates associated with a ride.

If people need Car Finance, they should also have to meet certain criteria which are put forward by the authority granting those funds. These conditions are not something which is over the moon, but simple things that make matters easy for both the lender and you. And what kind of criteria are these? Very basic ones like having a valid driving license registered against your name, a certain minimum monthly income, no cases of defaulting on debts etc.

Can people apply for such schemes over the internet? Definitely they can! Almost every financial institution that grants such finances offer online finance schemes and other related information on their official website. You can simply put in your details to check for your eligibility and also avail quotes free of cost from the website.

So, if you do need Vehicle Finance now or at some point of time when you decide upon buying a ride, these were just some useful information. You can always contact a finance company personally to know more clearly about each and every aspect. And that is something which is advisable as well.

How to Find Vehicle Dealers for the Perfect Mid-Year Sales Offers

Buying brand new, used or pre-owned Honda car ought not to be as bad as numerous shoppers make it. Of course, it can be fun. The perfect way to get a good Mid-Year Honda deal is to do your homework.

Every year, one of the perfect times to purchase a new or certified used vehicle is to go shopping on the mid- times of the year to locate the good deals vehicle dealers are putting out. But, if you have never bought a vehicle during the mid year, you might be a bit impatient as to how to maximize your possibilities of finding a car you will be happy with. The article will offer a lot of advices toward helping you locate vehicle dealer choices for the perfect mid-year times sales offers, no matter which type of vehicle you are interested in.

  • The first and foremost the most common way of finding Honda dealers to find the perfect mid-year time Honda Accord Sales offers is to just browse your magazines, newspapers, and public advertisements. It is where you are likely to locate the most deals and offers, and it will not take you some time to do so. Every day, newspapers are filled to the brim with ads for all kinds of things, including vehicles that are going on sale.
  • If you live in Cathedral City area that has numerous papers to browse through, take your time to pull a paper copy of all of them. Any Honda dealer worth their deals will have an advertisement in the papers, and once you locate a few that you like, and start searching for your Honda sales. When it comes to the dealing process, take the new paper copy in with you.
  • A second way to find Honda dealers for the best sales of the mid-year time is to turn on your TV. Around this time, the advertisements will be on every TV channel for every sorts of vehicle sale you could be interested in. At that time, when you driving in your vehicle, keep the FM Radio tuned to stations that play these kinds of advertisements.
  • A third way to locate which Honda dealers are offering the perfect Honda mid-year sales of their online new or used car inventory is to browse the internet. It is quickly becoming a good way among younger shopper for finding all type of information. You can take avail of the internet world no matter how old or young you are, simply hunt with your postcode or place and search for vehicle sales in that area.
  • A fourth approach is just to go for a drive around city. The success you will need to this approach will depend on how close you are to a metro area, as the large metro areas will have more vehicle dealers to take advantage that more shoppers are around.

Bike Accessories

There are numerous remarkable motorcycle accessories to select from, you definitely can make your bike look original, even if it is among thousands that are made specifically the very same when you acquire it. Some motorbike devices are optional and some you need to acquire without exception.

Safety accessories are something you must invest your money the day you buy a bike or previously. If you cannot manage the security equipment, then you don’t need the bike! You will should acquire a great quality helmet that fits you appropriately. You can get one tailored to match your bike if you like. They are readily available in a range of colors and designs so you will not have any problem finding one that matches your style.

There are other motorcycle devices that you can purchase if you like for safety, but they aren’t mandatory. Full riding matches that are flame resistant and very protective are a fantastic choice. You will find sunglasses, goggles, gloves, knee pads, chaps, and more. Many of these safety devices will make riding your motorcycle more comfortable. It is an excellent idea to purchase some rain gear as well.

Do you plan to take a trip a lot on your motorcycle? Exactly how do you prepare to carry your needs? There are lots of motorbike devices to choose from to look after this for you. For short journeys, consider acquiring a bike back pack. There are likewise a variety of leather pouches and travel equipment that connect to your motorcycle. Many of them are removable so you can quickly include them when you travel.

Riding your motorbike is supposed to be enjoyable, so make sure you are comfy. My other half finally got the dream bike he had constantly desired just to find that the seat was uneasy when riding it for more than an hour. We invested a couple hundred dollars in a custom seat so that he could get more satisfaction out of the bike. If you typically have a traveler on your motorbike, think about setting up a back rest bar. An additional set of foot pegs on the front of your bike can help you remain comfy too on a long trip. They are perfect for stretching out.

There are also a range of motorbike devices to assist you tailor the look of your bike. Decals are really usual, and they are rather simple to put on. Select from stripes, flames, and lots of other excellent designs. You might choose to have a custom design painted onto your bike rather than making use of decals. There are also a variety of chrome pieces you can replace conventional ones on your bike with.

Selecting the right devices for your bike is going to take some time. Take a look at the alternatives readily available as well as the quality of the brand name you are looking at. Most of the times, you are much better off conserving your money to buy quality devices instead of paying less for inadequate quality. It can be fun customizing your motorcycle to your own personal look. Simply always remember to invest in those important safety accessories initially.

You can buy motorbike accessories anywhere that offers bikes. You can also ask for brochures from bike makers. The net also offers you the chance to take a look at hundreds of designs of motorcycle devices to select from.

Cheap Auto Insurance in Texas – A Reality

Texas auto insurance companies are providing cheap auto insurance in Texas since a long time to best satisfaction of their clients. Very tough legal actions made it mandatory to have an insured auto in Texas and its cities. Almost each insurance company has a site and operates its business through it. Few sites provide a comparative study of service providers helping the individuals.

SR-22 is the basic requirement of drivers in Texas. He must have attained age of 15 to have a driving license. He can not have a license to use mobile below the age of 18. The minimum penalty for one man injury is $25,000 for one injury and $50,000 for one accident. If the auto is also damaged he will have to pay $25.000.

Cheap car insurance in Texas has been made more accessible as it is mandatory. Non compliance may cause a fine of $ 175-350 for the first time and thereafter up to $ 1000 or suspension of driving license or even forfeiture of vehicle. Texas Sure feature adopted in Texas to pinpoint uninsured vehicles and keep them off the road is running successfully. Drivers must have insurance identity card with them while driving.

How much amount should be arranged through insurance? Texas authorities require that a driver must have a liability insurance to cover $ 30, 000 for one death or accident, $60,000 for more than two injuries or deaths and $ 25,000 for vehicle damage.

Various auto insurance companies in operation are Austin Auto Insurance, Fort Worth Auto Insurance, Metro, Dallas Auto/Car insurance company and so on. The rates offered depending upon the valuation of the vehicle are variable from company to company. Various sites giving comparison and quotes must be consulted and most suitable option should be adopted after taking views of friends and relatives.

Rate of insurance is discounted for second vehicle insurance from the same insurance provider. Your clean record of safe driving is the best source of discount and is accounted for by most of the service providers. If you promise to pay certain fixed amount from your pocket in case of accident, your insurance rate will come down for the enhanced claim amount.

Your record of no claim in past will reduce the insurance rate. The company considers you a reliable person on road and rewards you for that. Paying the bills in time will increase your credit, benefiting you financially. Insurance of other items from the same insurance company may enable you another discount as laid in their rules. Avail as much as possible discounts to lessen the burden on your pocket.

Don’t fall in trap of insurance providers and awareness of their past history in disposing the claims must be taken in notice before taking the final decisions. But make it a habit to drive safely to avoid legal implications. Don’t let prove your fault in case of an accident. Enjoy a safe drive but choose the mandatory insurance policy to have confidence while driving in Texas.

Ford CEO Allan Mulally gets $13.8 million bonus

Ford Motor Company is back. As proof, Ford Motor Company’s CEO Allan Mulally was awarded bonuses totaling $13.8 million, according to documents submitted to government regulators this week.

Skin in the game
According to a Reuters report, Mulally’s holdings in Ford stock are worth approximately $96 million. Mulally’s holdings should mollify critics who complain that too many CEOs don’t have a personal stake in the companies they run. Owning Ford stock worth $96 million, however, qualifies as having “skin in the game.”

Is he worth it?
For those who don’t follow the auto industry closely, Allan Mulally is widely credited with rescuing Ford Motor Company from what looked like certain bankruptcy. Mulally was recruited away from Boeing Aircraft Company by then-CEO Bill Ford, Jr. in 2006 — when Ford’s losses were mounting and sales volume and market share were shrinking.

That was before the financial meltdown in 2009 and a $4.00/gallon spike in gasoline prices which cratered sales of Ford’s most profitable products, SUVs and pickups. Ford’s lowest point came in 2009 when the company lost a record $13 billion. Ford avoided bankruptcy but General Motors and Chrysler did not and needed federally guaranteed loans to stay in operation.

Stays put
Mulally recently reassured Ford’s board of directors that he will not jump to Microsoft, a topic of intense media speculation. What fueled that speculation was the retirement of Microsoft CEO Steve Ballmer and the fact that Microsoft’s headquarters are in Redmond, WA, just east of Seattle. Mually served in key management posts at Seattle-based Boeing Airplane Company from 1969 until he left to join Ford Motor Company in Dearborn, MI in 2006. Mulally has family in Seattle and maintains a residence there.

4 Business Section that Employee or Employer MUST Follow

Almost everyone here of workplace injuries or accidents, and everyday about 13 workers go to work in the morning, but never come back in the US. Therefore, employers or business owners have legal responsibilities to make sure a healthy and safe workplace. They have the responsibilities of their own well being as well as their employees or workers. There are many companies that have a very poor safety record and workers health & safety in not safe there. This post will explain you what these responsibilities are.

Legal responsibilities for identifying as well as correcting hazards rest on the shoulders of employers, owners, contractors, managers, supervisors and workers. The Occupational Health and Safety Act and Regulations need each one in the workplace to work together to identify and control hazards related to health and safety.

SHEilds says “The health and safety at work Act 1974 imposes general duties on company’s owners, controllers of premises, the self-employed and manufacturers to make sure safety and welfare. However, the final person that makes up this list is – workers or employees.” Owners may also be legally responsible for negligent acts committed by employees acting in the course of their employment.

Section 6: This section tells to the manufacturers, importers, designers and suppliers of the goods or articles for use at work. They have many different duties to make sure that article supplied for use are safe and to provide all necessary information like how to use the item, what to keep in mind while using, etc. for its safe use.

Section 7: This section clearly states that while at work, all the workers and employees have a responsibility not to put themselves in danger through their acts or omissions. They must cooperate with their employers, for example by wearing proper protecting equipments such as gloves, goggles, etc.

The duty of every employee while at work-

They must take reasonable care of themselves as well as other persons or their colleagues who may be affected by his acts at work.
As any duty, requirements or responsibility imposed on his employer under any of the relevant statutory provisions to co-operate with him so far as is required to facilitate that duty to be performed or complied with.

Section 8: It states that “No person (misuse anything provided) shall intentionally or recklessly interfere with or misuse anything provided in the interests of health, safety or welfare in pursuance of any of the relevant statutory provisions.” However, if an offence is committed due to an act of any other person, then that person shall be guilty of the offence and can be charged and convicted of it whether the employer is also charged or not.

Employers will be responsible for the negligent acts of employees or workers committed in the course of their employment. An applicant can sue an employer or owner on the basis of vicarious legal responsibility, provided the employer can show that the employee or worker was careless and this caused his injury or accident.

Section 9: It provides that employers or owners cannot charge their employees or allow them to be charged for anything that is needed to be done by the ‘relevant statutory provisions’.

Note: Employers must provide some kind of safety training to their employees or workers because it will help them improve their awareness.

Happy 278th St. Patrick’s Day America!

It’s the 278th St. Patricks Day. Happy 278th St. Patricks Day America!

Happy 278th St. Patrick’s Day America! Did you know that the first recorded parade anywhere in America was in Boston in 1737. In Ireland, the Irish have been celebrating the feast of St. Patrick since the ninth century.

This year it’s Monday, March 17th! With many being bit by the leprechaun earlier in time for the many parades through the country beginning today. The oldest and largest of the St. Paddy’s Day parades in the Western Hemisphere, dating back to 1762 — New York City’s St. Paddy’s Day Parade — steps off Fifth Avenue in New York City Saturday, March 16th fourteen years before the Declaration of Independence (NYC’s oldest cultural and religious parade, 252 years ago but 253 St. Patrick’s Day PARADE EVENTS AGO).

According to a PinkNews.com article, New York and Boston mayors plan to boycott St Patrick’s Day parades in 2014 due to ban on gay marchers by the organizers. St. Patrick’s Day is known traditionally as a religious holiday honoring the patron saint of Ireland, Saint Patrick as well as a celebration of the Irish culture.

Interestingly, the original color associated with Saint Patrick was blue. The color green and its association with Saint Patrick’s Day began in the early 17th century with the use of green ribbons and shamrocks to celebrate St Patrick’s Day. It is known that Saint Patrick used the symbolic shamrock, a three-leaved plant, to explain the Holy Trinity to the pagan Irish.

Although not a legal holiday in America, Saint Patrick’s Day, is celebrated throughout the country. It is observed as a celebration of Irish and Irish American culture. Celebrations include prominent displays of the color green, eating and drinking, religious observances, and numerous parades. The holiday has been celebrated on the North American continent since the 1763.

One of the longest-running and largest Saint Patrick’s Day parades in North America that occurs each year is in Montreal. The Canadian city flag includes a shamrock in its lower-right quadrant. The annual celebration has been organized by the United Irish Societies of Montreal since 1929. The parade has been held annually without interruption since 1824.

However, St. Patrick’s Day itself has been celebrated in Montreal as far back as 1759 by Irish soldiers in the Montreal Garrison following the British conquest of New France.

More information including my favorite Irish Soda Bread Recipe and additional resources is at the AllThingsDigitalMarketing “Happy 278th St. Patrick’s Day America” blog post