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Fed Destroys Mainstream Meme, Admits Low Oil Prices "Could Dampen Economic Expansion"
When even The Fed is unable to keep its story straight on the impact of low oil prices, the entire facade of 'household spending' enhancement must collapse (as the data shows). After six months of lower prices, retail spending is still tumbling... and it appears The Fed is finally fessing up... "persistently low energy prices... could damp the overall expansion of economic activity for a period, especially if the slowing took place after most of the positive effects of lower energy prices on growth in household spending had occurred."
Wait what!?
OH come on - now they're just punking us. I thought low oil was a huge tax cut that'd be spent on iPhones? pic.twitter.com/Kzj8meaG6B
— Rudolf E. Havenstein (@RudyHavenstein) February 18, 2015
From The Fed Minutes:
"Several participants noted that there were signs of layoffs in the oil and gas industries, and that persistently low energy prices might prompt a larger retrenchment of employment in these industries.
In addition, it was observed that if capital investment in energy-producing industries slowed significantly, it could damp the overall expansion of economic activity for a period, especially if the slowing took place after most of the positive effects of lower energy prices on growth in household spending had occurred."
* * *
Fed recap: if one excludes the impact of lower energy prices on the economy, lower energy prices are good for the economy
— zerohedge (@zerohedge) February 18, 2015
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They are getting concerned. Took 'em long enough.
If the Fed is speaking truth it is only to prepare the ground for even bigger lies.
Correct, they know full well that economic expansion cannot continue forever. They know that contractions and deflation is just reality, they simply want to maintain power and control, period. Slavery never ended folks. It really is that simple.
Clouds are gathering over west Houston. That sentiment was not only the theme of the West Houston Economic Development Summit held on Feb. 13, it was the headline of the event's press release.
http://www.bizjournals.com/houston/morning_call/2015/02/west-houston-to-...
The best slaves are those who believe they are free.
and exceptional.
and spending their time convincing their fellow slaves of how free and exceptional they are.
and spending more time ridiculing and demonizing those who reject slavery.
Correction... Slavery EXPANDED and became LESS VISIBLE at the same time.
High prices restricts economic growth.
But....
Low prices dampen economic expansion.
Welcome to Pee Coil.
What economic expansion would that be?
Government expansion.
Further expansion of the Financial Services sector, of course. Is there any other expansion that matters?
Not at this point (where it swallows everything else whole to avoid imploding).
That sector has been 'nationalized' years ago!
I have always said that the gowth in the good jobs the last 6 years were in the oil patch....now that that is going bye bye....its only Hamburgers and waitresses now...
Gimee a hamburger and a waitress with a big gulp.
No fries.
Can I get titties with that.....?
thats the problem with lying - you cant just tell one lie; lies grow and grow until they are out of control and contradictory;
you can be sure your sin will find you out
ask not what can oil price do for economy, but what the economy can do for oil price.
Low prices (deflation) BAD! High prices (Inflation) GOOD! Low taxes BAD! High taxes GOOD! Low debt BAD! High debt GOOD! Small government BAD! Big govenrment GOOD! Personal Liberty, Freedom & privacy BAD! Rules, Freedom Restrictions & Total Surviellance state GOOD! Global Warming BAD! Global Cooling GOOD! These dudes are geniuses! Send more Nobel Prizes asap!
Growth... expansion... MUST.... seek... yield... or... die.
So prices may have to raise to preserve household growth.
you get it right. They will raise taxes
Higher taxes on the Middle Class always stimulates grote.
/sarc
You say it so much nicer, roadhazard... My translation was "The middle class isn't getting fucked in the ass enough".
Because nothing expands an economy faster than high as Hell oil prices.......
There's always an excuse some place to keep rates low in this shitty eCONomy. They know damn good and well they can never raise rates.
Just how stooooooooooooooooooooooooopid are these economists anyway?
I presume that is a rhetorical question?
I'm not sure anymore! It is very hard to make sense out of these dangerous retards!
There's your first problem, thinking any of it makes sense.
They work for the banks, and only the banks.
Banks = Government. One in the same! All this fatal 'public policy' is originated & driven by our fearless 'elected' officials! Banks are merely the 'well-paid' conduit to facilitate these insatiable needs of the twisted socialist state. Not to worry. All will end in suffering & misery as usual!
What an outrightly blatant load of bullshit the politicians at the fed are foisting upon us peasants. Low oil prices are bad for banks because they stupidly lent hundreds of billions to alternative drillers predicated upon $95 oil. the rest of us are quite happy to be paying only $50 to fill up our tanks versus $100.
+1 brother.
Ultimately it is all about hyper-inflating the currency in a pathetic attempt to pay down debt! Destruction of the 'clueless' middle class. The is their 'Grand' plan!
Uh oh... S&P and DJIA can't even go green from less than a half a percent in the red when the Fed offers its mollycoddling words to the markets.
Me fears the magician's spells are starting to lose their power. Time to change vocab! Less "patience" and more "generous." More "resolute support" you dumbasses. Do "whatever it takes" to keep the markets up or we'll find someone who can!
Not only that, but they couldn't prevent Au from spiking ten bucks!?!
"Dammit K-Hen! Whud I tell you about those PMs?"
Lower oil prices .... dampens all harmonicas !
At this stage it is difficult to discern what they are, or are not, lying about.
I'm going with they are lying about everything. Yeah, that's my final answer.
The banksters need to repay us.
"Bankster heads accepted as payment for all of their debts, public, or private."
Yes, they are full of shit but it's less lying and more qualified, wavering, mealy-mouthed double-speak.
Oh, it's lying alright.
If they were trying to weasel out of going to a boring opera or something it might be "wavering," or "double-speak," but it's about covering for their theft, and fraud, so it's lying.
The banksters need to repay us.
Guillotine them all, and let God, or whatever, sort them out.
Fed should release a flock of doves along with the minutes
so is gov going into more debt to buy oil and store put it in reserve. or go into more debt to spend on military to blow up oil production in middel east.
"Expansion you can believe in!"
Patience is the hot word of the month....will there or wont there be..Patience...the algos love it..Key word for them
First this. Now oil prices are too low?
I think it's safe to say the Federal Reserve Bank and that bitch they keep drilling in every orifice The U.S. Treasury don't have too many friends in the "neighborhood" left to buy those shrink wrapped pallets of "papier" worth nothing!
Because, without higher oil prices you cannot meet contract obligations to repay the debt note. Keep raising the debt printing machine. At the end of the day. You will stand in front of a gun firing line. Our system is broken, go after Krugman, who tricked you. He sweats under pressure.
I wonder if Steve LIESman is at his desk crying "but they told me lower oil was like a tax cut, I can't believe they would lie to me like that"
Don't worry Mr. LIESman, warren "the crony" buffett will be there later on to blow you while Becky Quick stands in the room laughing at your small weiner.
AS CAN GOLD AND SILVER!!!!
Shhhh! The baby's sleppin!!!
Jewish lighting strikes ...
Blast hits Southern California refinery...http://news.yahoo.com/blast-hits-southern-california-refinery-180648165-...They're taking the high road that high gas prices are good for the economy while extending the "green" meme. Nothing could be further from the truth. The money went into the consumers pocket and he didn't buy more ishit. that cannot be tolerated and so we're back to the Keynesian we can control everything and the recovery is great bullshit. They should be scared, tons of money went to the consumer in terms of lower gas prices and not a measurable bump. Not good, the patient is going to need LOTS more IV's to even get a heartbeat. Long live the Fed! The economy is DEAD.
God forbid a few of us lowly workers save a few bucks/week on gas! the gov't is drooling over those few extra dollars and ready to pounce!
Then lay on a few layers on planet saving carbon taxes to help u out even more!
Low oil prices ? Our petrol prices are back to where they were - oil companies taking profits downstream to balance out upstream losses
Low oil prices ? Our petrol prices are back to where they were - oil companies taking profits downstream to balance out upstream losses
Absolute proof the government is not working in us lowly workers' best interest. A very powerful action they have taken that says soo much.
I crave the days of the $200 fill-up!
Believe me the oil companies and bankers crave it a hell of a lot more than you do.
The taxman is all over the energy sector sharing in all the spoils!
Oh... they will get their 200 oil. This is part of the process.
The dampening has been taking place for some time. Nothing the Fed says or does will have any affect on the economic outcome ahead. The spin from various sources helps the meme stay alive, but soon it will be recognized for what it actually is, just more meaningless rhetoric. Still, even Britain believes the deflationary pressures are "good". Must be some good tasting Kool-aid.
http://www.globaldeflationnews.com/great-britain-on-the-verge-of-succumb...
All we need to do is double or triple the prices of everything then we will be ok! Woohoo! Why didn't those really smart economists tell us that earlier? Cheesh!
Now finally the monkey shows it’s ugly head from the sleeve :Dutch proverb http://menneweblog.nl/wp-content/uploads/2013/04/aap.png
Extending Low Oil Prices Will Kick the U.S. 'growth' Economy right in the Nuts http://forum.prisonplanet.com/index.php?topic=264446.0
They have to make sure everybody feels the pain so they can legalize the export of all crude products before they ramp prices back to the moon.
I hope the hits the BS housing market soon because I am tired living like a pauper waiting for the market to implode. Everything is stupid overpriced. Bastards
Yeah, no kidding. That is where much of the cap ex and job growth was. If the consumer doesn't spend it, but rather saves and pays down debt, the Fed's evil plan is foiled yet again.
More free money on the way.
Inexpensive, plentiful energy is the foundation for a society based on liberty.
Manufacturing is gone, and purchasing power has been reduced. We are now, to a large extent, an extraction economy like Russia, so of course lower oil prices will hurt our economy.
J-j-j-j-gibberish!
Keep saving and paying down debt. We'll destroy everything the new old-fashioned way. They will have to print another $17T to bail out the first $17T they printed.
Sell any assets over debt and put your fucking savings in a mattress. If you deposit it, they will figure out a way to get their hands on it when the shit hits the fan.
If you must invest, buy 2 shares of stock and call it a day.
Something unexpected is going to go illiquid some day.
The whole world will shit their pants in unison.