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QE Has Been and Will Continue to Be a Complete Failure
The Fed is now blaming Congress for the failures of its QE policies.
This is to be expected, given that no one in the power elite ever accepts responsibility for their own failures. Congressional members blames each other (depending on which party they’re in), the Fed blames Congress, the White House blames the GOP, and on and on.
Behind this façade of bickering is the total and complete failure of the Fed’s policies to generate economic growth OR jobs. Regarding #1, the US has not had a single year of 3% GDP growth since Bernanke became Fed Chairman. End of story.
As for QE… there is not one single example in history in which QE has successfully created jobs. The UK has engaged in QE equal to over 20% of its GDP and hasn’t seen a real recovery in employment. Similarly, Japan has employed QE equal to nearly 25% of its GDP and GDP growth continues to slow while unemployment stays elevated.
As for the US, the Fed has spent roughly $2 trillion in the last year via QE. During that time a little over, 500,000 jobs were created… So the Fed is spending roughly half a MILLION dollars to create each job.
There’s a word for this… it’s pathetic. Actually “insane” would be a better choice. This is what happens when you put Central Planners who have little if any real world experience, in charge of an economy. You spend millions of dollars to create low paying jobs.
And the Fed’s argument is to do this until unemployment falls.
The fact that the Fed continues to engage in QE despite its clear failure to create jobs indicates the Fed literally is either totally clueless OR is engaging in QE for other reasons.
My view… it’s a bit of both. The Fed is largely comprised of academics like Bernanke who have little if any experience in banking (interesting that he’s in charge of the Central bank since he NEVER worked in a bank in his life) or the private sector.
Indeed, even the pro-Wall Street crowd at the Fed (Dudley and Evans) don’t see how their policies are crushing the banking sector. Citigroup plans to lay off 11,000. JP Morgan is laying off 14,000. Morgan Stanley is laying off 1,600.
And yet the Evans and Dudley keep asking for more QE!
Buckle up… this won’t end well.
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Best Regards
Graham Summers
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QE has been a complete success - at transferring wealth up to the TBTF bankers and DC beauracrats. Which is its intended purpose. The US governments real job since 1913 has been to protect the TBTF bankers from the worldwide fractional reserve Ponzi scheme that they created. The US has been making the world safe for privately controlled central banking now for 100 years. I feel so proud.
They know QE doesn't work to boost the economy. They are not stupid, and Bernanke is a pretty smart dude. But it is the only tool they have left, and the whole point is to maintain the appearance of solvency of the global financial system until after they leave office. It is a way of kicking the can, and it can kick that can pretty far. But it can't kick it forever. Diminishing returns are already here, and the diminishment is accelerating. The Bernanke Bubble is closer to its end than to its beginning.
What is truly amazing is that NO new banks have been created. No clean skins. The existing banks were forced into consolidation by Geithner who simply arranged M&A deals using public funds to increase industry concentration. It is funny that he did not merge Ford and GM into US Motors, Inc. and Apple and Dell and HP into US Computers Inc.
It is frankly incredible that concentration of financial and economic power has been allowed to circumvent market economics and make the Fed and the Banks the most powerful institutional block in the United States without any basis in the US Constitution.
None of those hunting rifles, handguns, AR-16s ever got used in resisting this extra-Constitutional power grab. Only guns will unravel it or a Leader of a kind the US party system will do anything to prevent emerging
Folks,
While I am continually amused by the most of the non-racist banter on this site, if we stick with the facts we will know precisely where QE goes. I offer a real metric, self-admitted by an arm of the very policy apparatus that brought QE to a TBTF near you:
http://research.stlouisfed.org/fred2/series/EXCRESNS
And here is where QE did NOT go:
http://research.stlouisfed.org/fred2/series/M2V
Now, why would "The Collaborators" be doing this..?? Because, those TBTFs NEED to be uber-liquid. Now, why on Earth would they need to be ridiculously liquid..?? Because, the s#!t is about to hit the fan..!! Now, why has the market been so ridiculously 'propped up'..?? Because, "The Collaborators" needed to get certain entities out in the longest distribution top in history and will stand aside shortly for a fall that will get EVERYONE's rapt attention. Of course, 'insiders' will be uber-short.
And then the real "Plan" can be revealed...
You just don't get it do you? QE is a grand success. They have sold to you that QE was to help create jobs, when in actuality QE is designed to transfer wealth upwards. It's also a success in the fact tha it gives tptb time to get the police state set in place. QE is not to help the economy, it's not to help the middle class..... it's to stall.......period.
I can assure you, that every pilot would regard a stall as a very dangerous situation, which often leads to tailspin, followed by crash!
If he's ruthless, is the only one with a parachute and can steal all the valuables from the luggage before it goes down he might consider it an opportunity rather than dangerous.
I think cocaine should be distributed over the counter at 711's and McDonalds. $5 per KG
QE is serving its purpose
The economy is in the doldrums because of the wishes of those who control our individual credit and the credit of the country
All here at ZH know this...
We are completely dependent on the commercial Banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the Banks create ample synthetic money we are prosperous; if not, we starve.
We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is.
It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied very soon.
P,
I believe you are on to it. But, believing that "The Collaborators" do not realize this and do not have a "Plan" is incredibly naive. You do not seem at all naive. Do you not agree that a new monetary system is at hand soon..??
I don't, what's in it for them to reward gold buyers? They already have the power to implement any monetary policy they want inside the present framework.
All they need to do is steal while the stealing is good and in the end own the other side of all collateralized debt and let a deflationary collapse happen ... the schmucks who are still leveraged and those who own government bonds will get wiped out, they will get ownership of everything they don't already own (which combines to everything). Afterwards they can just use the plain old dollar again as a means of exchange, why not?
They do have a plan. Probably several. But we all know about the "best laid plans of mice and men" don't we? Even the biggest and fattest honchos of the TBTF banks can't possibly be aware of how all the intricate interdependencies between the biggest banks and biggest countries will interact in a collapse. Quadrillions worth of derivatives - WTF? When this bubble blows, it will be the equivalent of observing a supernova from one of the star's planets. No one will be spared.
IMO there are only two options, deflationary collapse or inflationary collapse.
In a deflationary collapse it's trivial to see what will happen to the banks and countries and everyone in debt/levered ... they all default ... and the creditor class ends up with all the collateral.
You vastly underestimate the degree of cognitive dissonance "the collaborators" are suffering from ... Didn't you get the "Draghi-memo"? There is no plan B! And plan A doesn't look that planned to me, too.
We'll know soon. Plus, I believe there is no "Plan B" and this is all part of a multi-faceted sequential "Plan A". Draghi and the Euro-failure is an integral part of "Plan A"...!!
Ben & Obambys employers wouldn't have it any other way. Why would the Family place smarter people than themselves in strategic positions. These two morons one the steady as he goes academic perceived safe hands and the acceptable face of Oplonker to pacify the global downtrodden that hopium is not all lost and the guns can remain buried for a few more years.
Sorry gotta dash nurse is calling me to take my pills.
It's not a "complete failure", it's a complete success, doing exactly what its real purpose is, looting the nation of its wealth, handing it over to bankers ...ok the government too (for playing along).
After 5 yrs of it, only idiots still believe Bernanke is trying to help the economy and failing at it ...idiots like Summers here apparently.
When the only tool you have is a hammer, everything looks like a nail. Bernanke has only one tool, he knows it, and he knows how badly this is going to end. Why do you think he is leaving in January?
Graham, you're still talking? Why?
Graham is right - Its not working. Don't blame him if stocks keep rising because we are printing incredible levels of money -what else would you expect?
When o when will it not end well?
As long as there is beer, there is hope. Once the beer runs out, all bets are off.
Actually there's been quite a bit of job creation, unfortunately the job creation was obliterated by even more immigration than job creation, and most of the new hires are immigrants and aliens.
Kinda funny, the bankers want to survive so they cut employment, but our government just keeps on growing.
Its about jobs allright - jobs for the bankers and the boyz.
The boyz don't forget their ho's either. Prices for a Congressional lunch at the DC watering hole have shot up to the moon.
Fuck you DC.
this is like reading Homer Simpsons brand of fortune cookies:
Homer: These fortunes are terrible. They're supposed to predict stuff and ease you through times of doubt and sickness.
Manager: Well, with all due respect, sir, I suppose you could come up with better fortunes?
Homer: You will be aroused by a shampoo commercial.
Manager: That's not bad!
Manager: This gentleman here can write better fortunes than all of you put together. [to Homer] Show them. Homer: Okay, let's see ... um, The price of stamps will climb ever higher. [the writers murmur appreciatively]The Fed is largely comprised of academics like Bernanke who have little if any experience in banking (interesting that he’s in charge of the Central bank since he NEVER worked in his life).
Fixed it for ya!
Graham, what are you smoking? QE has never had anything whatsoever to do with the goal of reducing unemployment. Bernanke knows that. A policy can't fail at something it is not intended to address. QE is pure bailout of people who already have jobs but want more money.
never mind graham. he has issues comprehending QE. he was the one who said QE will end.
Yep. QE has made a few very rich people a lot richer.
ill just leave these here
http://bureaudetudes.org/wp-content/uploads/2010/01/worldGov2004gris.pdf
http://bureaudetudes.org/wp-content/uploads/2010/01/medias_skill2004.pdf