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Proof Positive That the "Recovery" is a Lie and the Fed Is Only Interested in the TBTFs
By basing the whole “recovery” argument on fraudulent data, the Fed and Federal Government have backed themselves into a corner.
After all, anyone with a functioning brain knows that the unemployment data, and, GDP growth data are massaged at best and totally bogus at worst. By using these data points as bricks to build the argument that somehow spending $4 trillion in newly printed money (and issuing $11 trillion in new debt) was needed only reinforces one of two things:
1) None of the people in charge of steering the economy have a clue what they’re doing …
Or…
2) The whole thing was in fact a giant lie used to cover up the fact that none of the money was spent to try and generate economic growth.
How do we know the US is not in recovery? It’s really quite simple. If it were, the Fed wouldn’t have any issue with raising rates. Take a look at the below chart. Every other recession going back to 1954 saw rates begin to rise a few years into the recovery.
Here’s out latest “recovery.” We are now five to six years into it and rates are effectively at zero. The old adage says “actions speak louder than words.” You could literally skip all of the Fed FOMC minutes, speeches, and Q&A sessions. The below chart is exponentially louder than anything Yellen or the other Fed leaders could say.
The Fed and Feds can talk about recovery all they want. But it’s just talk. If the US was truly in recovery, interest rates would be rising.
So… if the money wasn’t spent on creating growth, why was it spent?
To stop the bond bubble from blowing up.
The bond bubble was $80 trillion going into 2008. Today it’s over $100 trillion. The US had $5 trillion in public debt going into 2008. Today it has over $18 trillion.
Part of this money went towards expanding the already bloated government with endless programs and social spending. But a significant portion of it went towards rolling over old debt. The US never had an extra $5 trillion lying around to pay off its old debts to begin with. And so it has been issuing new debt to cover for old debt that was coming due.
Indeed, between October and November of last year, the Federal Government issued $1 trillion in new debt… because it didn’t have the money to pay back old debt that was coming due. That’s just $1 trillion. Total US debt is above $18 trillion.
There is no recovery. There is only the bond bubble. And everything has been done to prop it up because when it bursts (as all bubbles do), entire countries (including the US) will go bust. But the Fed doens't even really care about this... it cares about the $555 TRILLION in interest rate-based derivatives sitting on the TBTF bank balance sheets.
This situation will result in a Crash far larger than 2008. The markets involved are larger as is the risk and the leverage.
If you’ve yet to take action to prepare for the second round of the financial crisis, we offer a FREE investment report Financial Crisis "Round Two" Survival Guide that outlines easy, simple to follow strategies you can use to not only protect your portfolio from a market downturn, but actually produce profits.
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Best Regards
Phoenix Capital Research
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You want to see recovery? Skip Fort Bragg CA. I've been working here 4 weeks and the homeless seem to outnumber the working class. They are everywhere at all times of the day with their dogs which are given to them and fed for free by the local animal shelter. Pit bulls leading their mumbling half-drugged homeless owners around the streets through the faltering tourist trade. I ran into a man the other day who was out picking edible mushrooms to sell to a local vendor to help pay for his weekly synthetic heroin fix. Polite guy, told me he used to work a fishing boat until the Mexicans moved into town and took all the jobs. Yeah...let's see Obummer visit this town followed by his stream of prime-time news cameras. Won't happen. America is not back to work. Far from it. Much of America is drugged up and fed for free.
We are in a limp dick recovery, and the chart illustrates just how different it is this time.
"...Fed Is Only Interested in the TBTFs"
The fed is the TBTFs.
That's a pretty ugly chart, but I'm afraid there is an easy fix for that. Eliminate the data series.
lulz
Anyone else notice bond yields moving up even as the stock market heads down?
YES! ...and this is happening even as it is becoming apparent to even many of the TV and media financial pundits that macro data will NOT allow the Fed to raise rates...so why haven't treasury yields been headed down as the stock market seems to be possibly headed down?
Strange.
In a manipulated market, take what you would normally expect to happen and reverse it. That is, until the whole thing breaks and it does exactly what you expect to the power of 10.
UROKO (full length)
https://www.youtube.com/watch?v=yzdomBX8U0w&feature=plcp
Thats a pretty big head and shoulders
Silver bitchez!
"Head and Shoelaces" !
Another Phoenix Capital TEOTWAWKI Article, the 820th in the last 5 years.
The markets should rally hard Monday.
Markets will absolutely crash when Phoenix Capital TEOTWAWKI Doom Porn articles cease being published at the top of ZH.
I am skeptical about this.
I suspect rates are low to give otherwise insolvent banks with loads of bad loans free money to play with to improve there balance sheet and prevent seizing of markets while the badness goes away. Simultaneously banks can use unlimited frre money to implement nwo agenda involving continued offshoring of manufacturing and crushing small business in favor of large politically conected conglomerates. Plus financing of boomer retirement and healthcare and finanancing wars. Imagine the destruction that unlimited funds in the hands of our corupt government seemingly puppet of isreal.-
The Fed is digging their own grave. After the coming crash, the Fed will be abolished and a new one world currency called the SDR will be established administered by the IMF.
Also, I am worried that Obama will try and confiscate privately owned gold like FDR did?
And that IMF will need a local branch in each country - a hole that can be filled by each country's CB. You really think they don't have a plan?
in Canada futur shop is closing Sixty-six stores will close 1,500 retail employees out of work. no recovery here in canada!
You just need to get a war going
You'll be good as new
Give us your best shot. It will be good for both of us
war may not work anymore even if there isnt total destructon
No recovery in the U.K. the lady boys are making more cash
There's a few million people that can vouche for it all being a lie.
"We killed a few million people around the globe, we lied to some people, we ruined some folks lives". "The economy is strong".
My Banker just bought a new yacht for his son and refurbished his own older model.
Very Bullish economy for him and his Buddies.
I got rid of my fishing boat. Used once a year maybe. $650 a year in property tax. I was sure to sell it outside the state. Won't make a fuck but made me feel good.
Boats lose, lose proposition. Your story and my experience remind me of my buddie's saying: "If it flys, floats or fucks: rent it.
Similar idea.
Friend of mine says 'if it's got tits or tires, one day it will give you trouble'
Americans and the rest of the world held hostage by the globalziogangbangksters deserve a fair system of money, but will never have one under their malevolent rule.
They deserve that for which they voted. And good and hard.
The economic version of assisted suicide and they are trapped in a loop, evidently they chose the wrong pill and trapped us in the Matrix....
Who wrote this? Phoenix? Awesome 5 star post, his best ever. Too much focus has been on the Fed's $4 Trillion, not enough on the Treasury's $11 Trillion of "needing to print money because they spent way more than they had in their checking account". Does anybody not think this amount of money over 7 or 8 years could boost GDP by at least 3% a year? If the answer is 5%, then we never left the recession. Yes, its that simple.
The arrogance of the FED is our problem. Thinking that the business cycle is bad and controllable (by them) is part of their issue. Listening to all of them from Greenspam and even before, they all consistently think that they can control it all.
In fact they have just taken money from the public and given to banksters.
"The arrogance of the FED is our problem."
If only "arrogance" were the problem, and not their theft and violence.
The banksters need to repay us.
Eric Garner was killed in an effort to protect the fiat-debt servicing revenue of NYC.
K; It is more than arrogance. The FED was established by people who knew exactly what had to happen with their fiat/fractional reserve fraud, incrementally, eventually.....inevitably......They are faux-Hebrew/Babylonian/Khazarian/Chosenite/Banksters, who's fraudulent concepts and deceptions control all the central banks of the world.
They were/are narcissistic, malevolent psychopaths busily working to destroy humankind and inflict a totalitarian NWO on all peoples. They know exactly what they are doing. It is all according to plan and has been in progress for centuries.
Until and unless the human race comes to understand what is being done to them, the demoniacal psychopaths/fascists/Liberals will ultimately succeed.....for a very, very, short period of time. Then they will be destroyed.....permanently.
As Winston Churchill observed (paraphrased): "It is ironic that the destroyer of mankind will emerge from the same Tribe as the savior of mankind."
Their arrogance IS OUR PROBLEM.
Their actions are theirs
Guillotine the Fed. Audit the heads.
The banksters need to repay us.
And We the People must reclaim our currency system from the banks in the form of a DEBT-FREE, SOVEREIGN MONETARY UNIT created by the Treasury in line with statutorily set goals of 0% long-term inflation of the GDP deflator. This money should be credited to the Congress and spent into circulation, in accordance with the Constitution. The debt-based money system slowly enslaves us to the banks, while commodity money allows banks to call in their gold and threaten inflation and deflation effectively at will. The Fed should lose the power to create money and should become a government entity with the purpose of setting the interbank rate and mediating payment processing throughout the country.
Phoenix continues to write complete crap. Haven't people figured out that the world is not ending and the US economy is recovering rather nicely. Writing red meat for the conspiracy crazies just never seems to go away.
the truth lies somewhere in between your opinion and their opinion.
No, Phoenix is correct, just repeatedly early. Well, sort of. The collapse has already happened. The problem is that the facade is crumbling at a slower pace.
You voted for Obama twice did't you? Don't prepare get the shit slamed out of you.
Yeah, everything is awesome, there is no $17 Trillion of debt, there are no $500+ Trillion in deriviatives, employment is great, and we have "the best healthcare in the world". Buy some Apple, I hear it's going to double by next Summer.
You don't think that QE4EVA will double APPL? Of course, a hamburger might cost you double that but hey, double is double.
"At any rate, a monetary expansion results in misinvestment of capital and overconsumption. It leaves the nation as a whole poorer, not richer. These problems are dealt with in Chapter 20. 4. Continued inflation must finally end in the crack-up boom, the complete breakdown of the currency system. 5. Deflationary policy is costly for the treasury and unpopular with the masses. But inflationary policy is a boon for the treasury and very popular with the ignorant. Practically, the danger of deflation is but slight and the danger of inflation tremendous." -- Mises, "Human Action", Ch. 17, 1949
It is not "crap" but inevitable.
The banksters need to repay us.
"Read, Think. Repeat."
Phoenix is a bit like Tom Stolper, always take the opposite side. In this case, I think Graham is right, but it bothers me now that he says so......