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The Fed Has Failed… And Wasted Trillions of Dollars
The Fed Has Failed
The Fed has long believed that money printing or credit creation equals growth.
In an effort to prove this (and to prop up the insolvent big banks), the Fed has embarked on QE 1, QE 2, QE 3, QE 4, Operation Twist 1 and 2, and kept interest rates at zero for over five years.
All told, the Fed has spent nearly $4 trillion. To put this number into perspective, it comes down to a little over $12,000 for every man woman and child in the US.
The end result has been the single weakest recovery in over 80 years. Adjusted for real inflation, we’ve essentially flat-lined.
And now, we have a clear illustration that the Fed’s theories are totally false.
Below is a chart of Loans and Leases in Bank Credit for All Commercial Banks in the US. Note how credit growth shot up at the beginning of 2014. All told, we’ve seen over $200 billion in credit growth in the first half of 2014 (h/t Bill King).
Despite this growth, GDP growth has been an absolute disaster. Officially the GDP shrank at 2.9% in the first quarter of 2014.
The fact that the economy shrank like this, DESPITE all of the Fed’s interventions over the last five years AND the credit growth in the first quarter of 2014 is proof point blank that the Fed’s economic models are wrong.
The Fed is now tapering QE, but one could well make the argument that the Fed has wasted trillions of Dollars. There is no evidence from history that QE creates economic growth (see Japan and the UK). Moreover, the ‘70s debunked the Phillips Curve (the notion that high inflation cannot coincide with high unemployment).
In simple terms, the Fed has failed.
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Best Regards
Phoenix Capital Research
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Phoenix Fuck you~!!
You have been touting the failure of FED for years and Stilll do not get or wish to admit that the J Yell and B Bern
and A Green, have all done precisely what their Jewish Mafia Dons in New York, Singapore, and London tells them and told them what to do.
When the fuck will you wake the fuck up or stop fucking spreading this utter fucking nonsense,repeatedly????
no chance they pay too well
I know.More like:
Phoenix has failed
I only click on Phoenix's articles to read the funny flames lol
I wouldn't say wasted.
This Monopoly money was used to Buy Politicians, Corporations, Assets or both Local and Foreign inerestes.
At a minimum, it got 100% return on the Investment for the cost of nothing. What a great thing ZIRP is. How could anyone not make money if you could borrow a Million Bucks for Zero Interest and then Buy a House. It's a License to Print Money.
defining "failure" depends on perspective, from the tribe's point of view its a wild success, not only have they had their losses indemnified, they've doubled down on more risk and bought tonnes of gold while doing it, literally.
May all TPTB get cancer of the throat.
Advancing time: Banks have little incentive to loan money on half backed ideas for which there is little demand....
Yes, that's the job of Government. Solyndra.....etc.
Hey, dammit, stop shiiting in the hallways you jerk (sorry, joking).
Who ended up with the aforementioned 4 trill?
I doubt those guys are calling it 'failure'!
"Failed" at saving the economy or succeeded in robbing us blind?
It's not wasted, really. Most of it wound up in the pockets or under the control of the uber-rich. We all got to pretend there was a recovery and the banksters get to keep being pirates of the universe. It's a win-win.
We should understand that demand drives investment, confidence is not the real driver. Lack of real growth is about lack of real demand. Much of the demand we see today is driven by artificially low interest rates and a mirage in the markets they distort. By this I mean the distortion and illusion that the economy is healthy tends to cause people to make poor economic choices.
Banks have little incentive to loan money on half backed ideas for which there is little demand. It is becoming apparent to many the financial system has become dysfunctional. People are forced to loan their savings to governments and banks with negative interest after adjusting for inflation. Today for other than student and auto loans there is scant demand even at low interest rates. More on this subject in the article below.
http://brucewilds.blogspot.com/2014/01/false-demand-fuels-wrong-kind-of-...
They have learned how to manipulate the measures, but the reality of how things actually work eludes them. Actually they don't want to admit how the economy works because it would put them out of a job.
The 'Fed' failed in 2008, 2009, 2010, 2011, 2012, 2013, and in 2014. Look forward to 2015 because it will likely be the last year
you will be able to look forward to. All bets are off past 2015
IMHO.
"The Fed Has Failed… And Wasted Trillions of Dollars"
Someone doesn't know what the FedRes is really for.
Failed?
By who's yardstick? They did an excellent job of stroking themselves and keeping the member banks alive. The Fed exists for the Fed, not US government and certainly not for the wage slaves.
"Mission accomplished"
They did a double plus good job. Rally on!
Exactly. It's like the government school system in America. The "worse" it does, the more money everyone throws at it. Education (sic) is one of the biggest kingdoms in the states if not the biggest.
Once you realise that all that matters is the production of debt, things become a lot clearer.
It's not an 'education' system it's a schooling/debt producing system.
schooling/debt
housing/debt
vehicle/debt
household items/debt
clothes/debt
work taxes/debt
healthcare/debt
food/bank,,, well can't win em all, at least we can still go to the food bank.
actually the federal reserve does exist for the federal government in the sense that the FR can buy the government debt with new money. in the old days, someone with real money had to buy the debt. this made it a lot harder to expand government, go to war, etc.
They wasted more than $4 trillion when you incorporate all of the ansillary effects of diluting the purchasing power of the dollar.
The Fed has not failed. It has done exactly what it intended to do. Between the Fed and the US government they have made themselves so hated through their actions that people will want to get rid of them.
Obviously the medicine is worse than the disease ... and so I am sure a doctor will magically show up to provide us with the cure.
200 -400 billion a year in interest taken from savers and given to Wall Street. That's how they are buying 150 million dollar homes in the Hamptons. Ford ,Carnegie etc built the nation. They didnt play tax arb and get phone calls from the Fed ahead of everyone else like the shysters do today.
The fortunes left behind by those flawed but good men have been co-opted and turned into funding ops for the worst people in the world. Today the bad guys get rich and corrupt the world while they are still alive. They skip they dying part, create a charity and go straight to mucking up the planet with their anti-humanism. See the family funds used pre-mortem by scum sucking malthusians like bill and melinda gates and warren buffet.
In a world of balance, in my grandson's lifetime, the Gates Foundation will be rabidly pro-life and anti-unproven-vaccine. I have doubts that will happen.
There's a reason why police forces and government agencies are stockpiling weapons and ammunition. Slowly, so very slowly, people are starting to wake up. Hope I live long enough to see the insurection. This shit can't end soon enough.
SWAT teams sent on routine DV calls.
The new normal in police operations.
I'm waiting for the SWAT team that gets taken out by heavily armed, scared homeowners, then they find out it was the wrong house to begin with. I imagine those funerals would be a little extra somber.
But one of these days, one of these SWAT raids is going to go horribly wrong, for the cops.
Why wait and not take action yourself?
They would never get close enough to an actual shooter to be in any danger. If so, they would all hide in/behind their tank while they firebombed the house.
The closest these thugs get to danger is shooting the nearest dog.
The FEDs goal was to save the banks. And their actions were aimed at that.
If their goal was to save the populace, they would have given the money directly to them. They did not, exposing their real goals.
US debt held by the Federal Reserve at the end of 2013: A new record high!
Banksters “print” more money than ever!
http://failedevolution.blogspot.gr/2014/06/us-debt-held-by-federal-reser...
BULLSHIT! The FED succeeded beyond it's wildest dreams....what kind of idiot really believes the FED is out to make the U.S. economy better?
Thanks for typing that for me! (it was the only reason I clicked on this post)
Who said that the FED is out to make the U.S. economy better?
LOL@Idiocy
I guess in the eyes of a fool, "stimulate the economy" means make it worse.....
You are right on. The Fed has succeeded in enabling the looting of what was left of the US economic corpse. Beyond stealing any remaining existing wealth, they also enabled the 1% to loot everything that could still be squeezed out of the US system by destroying the dollar, the US reserve currency status, any remaining goodwill and faith in the American government, and pretty much all future economic productivity for generations of Americans to come.
What stark proof of the power of greed that our masters are willing to permanently destroy America for a few trillion more of ill-gotten gains for the top 1%.
And to think our forefathers began an armed insurrection over the price of Tea....We the People have fallen far, as the pen is currently mightier than the sword.
We had real leaders and real men back then. All we have now id real crooks and real sheeple.
This once prod country has really gone to hell -all by design and the manipulations and scheming of criminal , degenerate eleites. I can't beleive we have been conned and given up opur freedom so easily.
They say the pen is mightier than the sword - not any more. The criminals own all the pens -we need AR-15s and more.
AR=15s? do they come with replaceable ink cartridges? Choice of colors?