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What Exactly IS the Fed’s Inflation Mandate? 100% Inflation?
Remember
back when Bernanke claimed that more QE would lower interest rates? What was
it… less than six months ago. Strange that this claim would be so far removed
from every journalist (and the minds of regulators and Congress) when the
markets have proven Bernanke to be an outright fraud.
Indeed
interest rates have done nothing but go UP since Bernanke began QE lite and and
QE 2 (lower bond prices means higher yields). I thought academics actually took
into account actual data before making bold claims. I guess I was wrong. Our
Ivy-league educated Chairman obviously doesn’t check on bond prices… ever.
Aside from
this, we also have him claiming the following,,“we expect the unemployment rate to remain stubbornly above, and inflation to remain stubbornly below, the
levels that Federal Reserve policymakers have judged to be consistent over the
longer term with our mandate,”
Really Ben?
REALLY? You sure that it’s not you remaining stubbornly defiant of common sense,
reason, or even basic human decency by pumping the system with easy money,
resulting in soaring food prices, riots and outright starvation?
You want to
see inflation, Ben? Here it is:
That’s a 21%
increase in prices since QE lite alone. 21%. Is that BELOW the Fed’s mandate?
If so, what exactly is the Fed’s mandate? 100% inflation?
Here’s the
real zinger, agricultural commodities:
That’s a 43% gain since QE lite was
announced. Annualized that comes to darn near to a 100% increase in prices. Is
THAT the Fed’s long-term inflation mandate? Zimbabwe?
Well, at
least stocks would be up to 36,000.
Get ready for inflation now!
Graham
Summers
PS. If
you’ve yet to take steps to prepare your portfolio for the coming inflationary
disaster, our FREE Special Report, The
Inflationary Holocaust explains not only why inflation is here now, why the
Fed is powerless to stop it, and three investments that absolutely EXPLODE as a
result of this.
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Instead of seeing Bernanke as a failure, think instead from the point of view of someone who would tell you that his policies are dead on accurate and an unqualified success.
Now you've got it. The "dual mandate" is a joke. It hides the real mandate. Which is?
Survival and fattening of the biggest banks. That's all.
The FED can stop inflation in 15 minutes by raising the Fed rate to 67% this makes Prime bank rate a nice round 70%. That should cool things down. The HFT computers have in that 15 minutes the ability to make unpteen quadtrillion short trades before you ever get the 20 minute delayed quote. May 6 was was a test...........
inflation soaring in argentina
http://nakedempire.wordpress.com/
Expect dr evil and mini me to pre empt your regular schedule program for an important announcement
The feds mandate is to transfer the wealth of american goyim to jews
To be certain....there is always a bonified reason for all actions....
This is what has happened....
Simply a more severe wealth transfer from middle class savers to everyone else.....This time it is different....The rich get richer and the poor get poorer....People from all over came to the US in order to have freedom from such a nightmare...and for a while....gained the freedom that they sought....Now it is time for the same type of people to move again....because the US has become the very type of country that the very founders walked away from....
The question is...where to go next...
Finally people are starting to realise that Ben is not on their side.
Best place to start is to ignore the pathological lies emanating from Bernanke, Geithner, Obama and the rest of the puppet 'leaders'. Then maybe you can work out a rational ending for the unconstitutional acts of the current liars.
The Fed is not a government entity. It's a privately held corporation. It's not in the public sector. It's in the private sector.
The federal government didn't create the Fed. Congress passed laws allowing the Fed to be created.
The Fed was created by banks. Banks provided the startup capital via stock purchases, like any group of investors can provide startup capital for a corporation.
The federal government allowed the Fed to be created because the Fed can do things the federal government isn't allowed to do by the Constitution. In other words, the federal government allowed the Fed to be created to get around its Constitutional limitations.
The Constitution allows gold and silver coins as money. It doesn't allow paper money not backed by gold and /or silver. The federal government allowed the Fed to be created to get around this Constitutional limitation.
The Fed, being a private bank, can issue its own currency, and it doesn't have to be backed by gold nor silver. Congress passed laws allowing this unbacked currency to be legal tender. It's a clear violation of the Constitution. Congress can't delegate authority it doesn't have.
The Founders prohibited unbacked currency in the Constitution. They knew unbacked currency would destroy America.
Sure enough, Congress allowing this unbacked Fed currency to be legal tender was the beginning of the end for America:
1) It caused the 1929 stock market crash and Great Depression.
2) It has allowed the federal government to carry on massive welfare programs.
3) It has allowed the federal government to set up Social Security, another massive welfare program.
4) It has allowed the federal government to set up Medicaid and Medicare, also massive welfare programs.
5) It has allowed the federal government to intrude into education with federal education grants to states, which have all manner of unconstitutional rules, but are legal under contract law.
6) It has allowed the federal government to intrude into healthcare with all manner of federal money going into healthcare, which comes with all manner of unconstitutional rules, but legal under contract law, like requiring hospitals to treat everyone who comes in the door.
7) It has allowed the federal government to grow the military beyond all reason, carry on imperialistic wars all over the world and set up military bases all over the world, partly to maintain world reserve currency status for this Fed currency via threats of military invasion.
8) It has allowed the federal government to borrow endless amounts of money over the years to spend on anything they damn well please, buying control in all manner of areas outside their Constitutional authority (but legal under contract law), accumulating 14 Trillion dollars in debt now, growing by 150 billion dollars per month roughly, the bulk of that debt having been used and still being used to buy control over Americans' lives, destroy Americans' rights, and turn America into a police state.
9) It has allowed the Fed to conduct massive economy-destroying pump & dump operations like the "roaring '20s" and '29 financial crash, the '00 decade housing bubble and '08 financial crash, both massive pump & dump operations sucking mountains of wealth out of Americans' pockets into stockholder banks' and other cronies' pockets.
10) It has allowed the Fed to create enormous amounts of money and credit out of thin air and give it to their stockholder banks and other cronies in back-door bailouts Americans never hear about, totaling 23 Trillion dollars since October '08, and steadily growing.
11) It has allowed the Fed to purchase its stockholder banks' and other cronies' gambling losses and investment losses, giving said banks and other cronies mountains of money to go out and gamble more, regardless of how risky and regardless of losses. That lost money doesn't just disappear. It's "lost" into all manner of crony pockets as personal profits.
12) It has allowed the Fed to fund mind-blowing salaries and bonuses for stockholder banks' management, while said management has been losing mind-blowing amounts of money (into crony pockets) and fucking up the entire financial system.
Bottom line, and most important of all, it is allowing the Fed to transfer America's wealth to its stockholder banks and other cronies via inflating the money supply until the dollar is worthless ...exactly what Ben Bernanke has said he wants to do.
It's not just America's wealth the Fed wants. They want the wealth of other nations too. Any nation they can sucker into buying and holding dollars and / or dollar-based securities, while the Fed gradually debases the dollar (and those securities) to worthlessness.
Now that you know the Fed's TRUE mandate, you can do the wise thing, frontrun the Fed and / or get out of dollars and dollar-based securities.
9a) It's allowing the Fed to conduct another massive pump & dump operation, this time equity markets, just like the equity market pump & dump in the '20s, identical same steps, creating mountains of money out of thin air, funneling said money into equity markets via stockholder banks and other proxies, inflating huge bubbles, suckering in foolish Americans again as said banks, proxies, and other cronies profit handsomely on the way up, at the appointed time quietly notifying said banks, proxies, and other cronies to sell and set their shorts, then jerking back all that liquidity (as Ben himself said recently, he can do it in 15 seconds), causing equities to crash while said banks, proxies and other cronies profit handsomely on the way down, once again sucking mountains of wealth out of foolish Americans' pockets into said banks', proxies', and other cronies' pockets. Foolish Americans just never learn it seems, perhaps they deserve losing their shirts (again).
P.S. Watch out for foolish wiped-out equity investors falling from windows 8 stories and higher.
8a) It has allowed the federal government to create a privileged class of Americans, federal executive, legislative, judicial, civil service, and agency employees, in leisurely jobs with little or no accountability, with pay and benefits unheard of outside federal employment. Envious state and local governments have created a similar privileged class of Americans, but it's swiftly collapsing now, state and local governments can't borrow endless amounts of money from the Fed in this economic depression ...created by the Fed incidentally. That state and local government privileged class (of leeches) is truly (and deservedly) fucked now, their cushy government jobs are disappearing, no private sector employer will hire them, their cushy unemployment checks are running out, and their cushy pensions are vaporizing ...and they don't have a fucking clue how to make it on their own. Watch them enviously bitch about their federal counterparts (fellow leeches) ...like taxpayers have been bitching about them all along.
I agree Cranky. The Govt and bankers have got coming what they spread. They wanted to create a credit (debt) orgy, when they did they 'baked in' the reply: a deflationary depression.
Passing the bill for cushy jobs, bankrupt public healthcare, pensions and property sectors to private business and taxpayers/citizens is not going to fly. The boomerang is on its flight path back and should hit them somewhere between their faces and groin area
Cliff Note version...
"America...A Bank with a military."
I'm all for establishment bashing, hell with all the problems Washington has created it's only right it becomes a national pastime. But this ruse is simply to sell a Gains Capitals Report, on how to prepare for more inflation when in fact the next major event will be hyper-deflation.
The above charts avoid the Feds delivery during QE1 that kicked off in 2008 and was followed in 2009 by a massive collapse in the CPI from Credit Crunch I (deflation in a nutshell). When Credit Crunch II arrives in the next months or year your 'prepared for inflation' portfolio is going to get sucked dry like a prune.
Stay in cash not assets to prepare for deflation. Trust in the fact that if Bernanke wants inflation he's going to get deflation. You can bet on it
Not a bad try for a four week troll, but far short of what is necessary to pass for creditability around here. Cash sounds like a good idea around June. Don't be fooled by the short sharp dip in equities around the corner. Ben will still make a higher high by summer.
Oh so you're responsible for awarding "creditability" round here, forgive me, I didn't know! Where's your 'I Award Credibility Round Here' badge of office? Is it self awarded and self certified?
Regards your short dip then higher highs I'm for a short dip then lower highs (year end stocks will be down 10-30% from the New Year). Let's leave it to time and the markets to see who is certified with credibility ok Mr Credibility
Mr. Summers,
Not that you haven't caught on to the rancid stench, but Bernanke is a liar!
What do we expect. I have told everybody I know that our government and the FED is lying to us and nobody cares!
Me; "Hi, your daughter is going to whore herself out to put a couple of slices of bread on the family's table because Congress and the FED keep lying to us and throwing money out the window!"
Other Person, "Oh, you don't know what your talking about! We had to bailout the banks or things would have been really bad,"
Me thinking, "What's worse then your daughter ending-up whoring herself?"
You and any other person can put up all the colorful charts depicting what is going to happen, use past history and/or crunch numbers until you're blue in the face but again, nobody cares!
The stock and the housing markets have already crashed over the past couple of years. The people who are responsible for the calamity are not only still free, but they still calling the shots. I'm not sure (actually I'm quite sure) that we will need the debt markets to crater before the average US citizens wakes up and realizes what a shit hole the FED and Congress have put us in! (And the White House)
PS I've been drinking, but nobody cares!
PSS "QE2 should lower interest rates and spur demand.....!" Holy Shit you fuckin' wanker! IR's were already at rock bottom lows. Ben B., you TWAT, you can't just debase the dollar and expect demand to come back. We aren't Italy for Christ Sakes!
PPS you better be drinking if you want to hang with this crowd....seeing the truth is painful
If you attempt to point out the madness to the typical american, not only do they not care, but they assume that you are just a whining looser.
I'm reminded of a picture from the 1930's of a little girl walking towards home, while behind her a miles-high Dust cloud was gaining on her...
yeah i know i live here in Oklahoma ,but on the bright side we got some great football teams :) , So when the next dustbowl comes we will have teams to be proud of from our universities even if we dont have food...:) Come to think of it moving back to California doesnt seem like a good plan this time. but hey i got got garden seeds an we can grow our own food , and Hank Jr is want to say A Country Boy Can Survive.. oh an i need to go buy some more shells too that reminds me..
War - As if 10 years is not enough. Do you think we will be reminded of the sacrifices made by our soldiers before the Super Bowl?
The Fed does not give a shit about us, get over it already. Until the day we end the Fed, everybody should be made to memorize this in the first grade:
"The Fed is of the banks, by the banks and for the banks. The Fed's real mission is to protect the banks and save the banks. They don't really have a mandate to keep unemployment and inflation low, and, while it's a nice thing to say and good when that happens, it is not really the function or primary mission of the Federal Reserve. The sooner people understand that, then the sooner they'll begin to make sense of what the Fed does." ---Jim Rickards, 2011
You left out a couple of things which are better included:
1 The Federal Reserve Bank is a private corporation
2 The largest holder of stock in this corporation is JP Morgan
The inflation is intentional, they WANT inflation, Ben Bernanke WANTS inflation. They must only PRETEND they do not want inflation.
Guess what? If they can sell the lies that there is "recovery" afoot and they can bring trillions back into equities from the sheeple and their retirement and pension funds - while debasing real currencies such as wheat, rice, sugar, oils, and precious metals - they win! The fiat monster must be fed!
Then what? Why...they crash the system all over again! LOL! As long as they are at the front of the trade or the short they win, you lose.
Same as last time.
There will be a crisis.
Future generations will be sacrificed for the sake of current mammon.
Lather, rinse, repeat.
Until there is not enough food, then there must be WAR.
Age old cycle; why do we think we are immune and that the political/banking class and culture do not sow, water, and reap such a harvest over time?
This mission is too important for me to allow you to jeopardize it.
Open the pod bay doors, HAL! :>D
"Is their mandate, etc--" Yes, apparently it is. 96% inflation/devaluation since 1913; and working on it. We don't need your precious advice, thank you; Silver is all a rational person needs to know.
So, the dollar will have depreciated by 100% by the FED's 100th Birthday on December 23rd 2013. Is anyone planning a birthday party on Jekyll Island to celebrate?
Why don't we burn Jeckyll Island to the ground to celebrate?
Bernanke and cronies en masse
Thought they were running the Fed with such class.
Then came stormy weather,
Ben's nuts crashed together,
And dollars shot out of his ass.
Wow. Worst butchering of a limerick ever. No meter.
But still funny.
6 years of 6% interest would get the housing market just about flush with the bank figures. Just inflate the 12 trillion dollar balloon, slowly but transparently.
invisible theft and tax.
Abso-fucking-lutely! Inflate it away. That's been the plan all along. It's insidious and criminal and neatly trimmed, just like the Bernank's beard. So, what do we do? What? Gold, oil and food? Is that it? Chase the tail until that bubble bursts? And then what? Get back into real estate?