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The World Is Finally Catching On to the Fed's Failures
For five years, the Fed has managed to fool most of the people.
There were some of us who openly criticized the Fed’s policies, noting among other things that:
1) QE had an abysmal track record as far as generating GDP growth or job creation were concerned (see both Japan and the UK).
2) The Fed repeatedly lied about the purpose of its policies (they were aimed at propping up the large insolvent banks, not helping Main Street).
3) The Fed’s belief in the wealth effect (that higher asset prices would lead to greater consumer spending) was misguided if not outright delusional.
For five years, those of us who made such criticisms were in the minority. However, that tide is now turning. We are seeing an increased number of mainstream media outlets run stories that are outright critical of the Fed’s policies.
Here is a spate of headlines from such articles:
Have central banks been breaking the law?
The Fed in Danger
Should Janet Yellen Be Giving Us Stock Picks?
The political tide is beginning to turn against the Fed. After five years of the Fed being completely wrong about everything (remember the “growth is just around the corner” meme) while simultaneously eviscerating the middle class and increasing wealth inequality, even the mainstream press is catching on that something isn’t right.
After all, how can you spend over $4 trillion and still be talking about how fragile the economic recovery is? We’re now five years into this alleged “recovery.” Based on a normal business cycle alone the economy should be roaring forward rather than posting the pathetic -2.9% growth rate of 1Q14.
Indeed, even the Fed’s underlings are now pointing out what an abysmal job the Fed has done. According got the Fed’s OWN RESEARCH unemployment is a mere 0.13% lower courtesy of FIVE YEARS of extraordinary monetary measures
Without the Fed and its low interest rates, the jobless rate would have been higher these past few years – pretty much all economists agree on that.
But how much worse would things have been?
A paper written by two economists for the Atlanta Fed takes a stab at answering that question.
Leaving aside the fuzzy math of economics, the researchers conclude the four years of easy money lowered the unemployment rate by .13 percentage points.
The national rate in December 2013 was 6.7 percent. So, if the Fed had not been so aggressive, the rate would have been 0.13 points higher — 6.83 percent. Not dramatic (unless you are one of the several thousand people who kept your job as a result).
But if the Fed had done nothing at all? That would have mean an unemployment rate a full 1 percent higher: 7.7 percent in December.
http://www.ajc.com/news/business/economy/fed-helped-save-jobs-study-says/ngTTQ/
The fact that this article is not written sarcastically is astounding. The Fed spent over $4 trillion and it only lowered unemployment by 0.13%. How many millions of dollars per job saved is that?
This is the reality of Central Planning: a handful of bureaucrats can never accurately manage, let alone improve something as large and complicated as a national economy.
History is replete with the total failure of Central Planning. Whether one look to China or the USSR or the US today, Central Planning has never successfully worked. It creates the illusion of stability in the short-term, but eventually the truth comes out: that it is a TERRIBLE means of deploying capital (both human or monetary).
The Fed’s failures are just the latest example. And by the look of things, the world is beginning to catch on. Now it’s simply a question of waiting for stocks to do the same.
This concludes this article. If you’re looking for the means of protecting your portfolio from the coming collapse, you can pick up a FREE investment report titled Protect Your Portfolio at http://phoenixcapitalmarketing.com/special-reports.html.
This report outlines a number of strategies you can implement to prepare yourself and your loved ones from the coming market carnage.
Best Regards
Phoenix Capital Research
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Central Planning is like the 'Little Shop of Horrors' that never stops saying...feed me, feed me, feed me, feed me, until someone rises up and says, give me a stick, I'll kill it. President Thomas Jefferson almost killed it. One has to credit that dude IMHO.
OCCUPY CENTRAL PLANNING - OCCUPY EVERYTHING
Just because a giant 100 year old blood sucking parasite is deeply imbeded mimicking a governmental office, while being a private organization, originated by deceipt and subterfuge against longstanding tradition begining with the founding fathers, against the Constitution, the law, and the people, WHY OH WHY CAN'T YOU KILL AND DISMEMBER IT?
"Central Planning has never successfully worked."
I disagree. It's has worked and continues to work spectacularly well for its true purposes and masters.
Central planning has always worked. It is a wealth transfer mechanism, and it works as planned, maybe even better than ever.
Yes, the world is catching on the Fed's failures, but why do we keep pointing out the symptoms of the system in the economy today rather than looking at the key, fundamental flaws at the heart of our monetary system? Our system is based on logical fallacy.
Our monetary system's survival depends on treating debt and "money" as equally valuable, when, of course, they are not. If I were to give you $1000 today with 100% certainty, it is more valuable to you than $1000 in the future, even with 99.9% certainty. The fact that the debt (for future repayment) has any uncertainty means that the present value of this debt is less than than the dollar denominated sum.
What this means is that everyone has a financial incentive to get money out of the fractional reserve banks as soon as possible. It is a clear, obvious arbitrage opportunity. The final bank runs must come as a matter of logical certainty; it is only a question of whether it is sooner rather than later.
Rob Kirby Interview seems to Nail it pretty well:
http://usawatchdog.com/the-chaos-is-planned-rob-kirby/
Fake Statistics doesn't fool anyone but the most uneducated. Thanks Fed, Treasury, and our Public Executives /s.
If we need a Bail In & a war on terror, how about fixing TBTF Banks, FDIC Funding, and those Open Borders. If we have plenty of money to throw around to save illegal immigrants, then how about fixing Social Security & Medicare /s.
And there is this Bombshell
http://ellenbrown.com/2014/07/16/did-the-other-shoe-just-drop-black-rock...
Shock to Bank Credit & a bank run Possible.
But Country Quarentine from Diseases brought across the borders is another economic Shock. News today China Quarentines a whole Town or City due to Plague.
1) War
2) Disease
3) Currency Crisis
4) Returning Dollar Inflation
5) Credit Crisis in banking
6) Federal Spending Crisis
7) Shockwaves from NSA Spying kills US Tech Industry NASDQ
8) Loss of Foreign Faith in US Financial Markets (derivatives, Ponzi Schemes)
Take your Pick
The world's just catching on now? What - has it been asleep this whole time? JFC.