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Boston Fed Admits There Is No Exit, Suggests QE Become "Normal Monetary Policy"
Perhaps it was inevitable. After all, the term “QEfinity” entered the financial lexicon long ago and there were already quite a few commentators out there suggesting that it may now be too late to remove the punchbowl, meaning an “exit” will not only prove difficult, but may well be impossible.
Take Makoto Utsumi, who oversaw foreign-exchange policy at the Japanese Ministry of Finance from 1989-1991, for example. Utsumi recently said a BoJ QE exit was out of the question “for the foreseeable future” and went on to note that “even the thought of an exit is a nightmare.” Meanwhile, it’s virtually impossible to say what effect Fed tightening will have in both the Treasury and corporate bond markets given the lack of liquidity in both and then there’s EM where carnage unfolded in 2013 after a certain bearded bureaucrat said the wrong thing about the direction of Fed policy.
Given all of this, we’re not surprised to learn that in a new paper entitled “Let’s Talk About It: What Policy Tools Should The Fed ‘Normally’ Use?”, the Boston Fed is now suggesting that QE become a permanent tool at the disposal of the Fed. After all, “financial stability” depends on it…
During the onset of a very severe financial and economic crisis in 2008, the federal funds rate reached the zero lower bound (ZLB). With this primary monetary policy tool therefore rendered ineffective, in November 2008 the Federal Reserve started to use its balance sheet as an alternative policy tool when it began the large-scale asset purchases. Now attention is turning to how the Fed should transition back to a more conventional monetary policy stance. Largely missing from these discussions about the Fed's "exit strategy" is a consideration that perhaps it should retain, not discard, the balance sheet tools.
Yes, oddly missing from the Fed’s exit strategy is the idea that there should be no exit.
Of course the idea that what was previously “unconventional” policy should now become “conventional” is supported by Fed mission creep because now, the dual mandate has apparently become a “tri” mandate:
Since the Dodd-Frank Act (DFA) has added maintaining financial stability to the Fed's existing dual mandate to achieve maximum sustainable employment in the context of price stability, it might be beneficial to have several tools to achieve multiple policy objectives. An additional consideration is that some of these tools may be needed to stem future crises as a result of the DFA's new limitations on how the Fed can provide liquidity under such adverse circumstances.
The particularly amusing thing here is that if the Fed’s third mandate is promoting financial stability then they’re doing a rather poor job of it so far and asset purchases are the primary reason why. A lack of Treasury market liquidity contributed to last October’s Treasury flash crash and as we’ve pointed out on so many occasions that it now borders on the comical, nothing good can come from sucking every piece of high quality collateral out of the system. Meanwhile, keeping rates low has triggered a bonanza of corporate debt issuance just as the new regulatory regime has ensured that secondary corporate credit markets are just as illiquid as the Treasury market.
* * *
So yes, please retain QE as a permanent policy tool (as we always knew you would). It’s done wonders for demand and financial stability thus far.
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Boston Fed head has created a short path to a nail gun incident.
I think a market rally on Wednesday is inevitable. But does QE mean LOWER gold prices now that they have decided on hyperinflation?
We are so fucking lost.
way beyond lost
"Lets Talk About It: Which Constitution empowers congress to coin money and provide for the punishment of counterfeiting the coin?"
I suppose in theory you can put a fire out with gasoline.
So what happens to asset valuation when the base currency under which they are priced is inflated to infiniti? Funny, most ZH members know the answer, too bad the Fed doesn't...
They can't do permanent QE in U.S. because it's already starting to crush the very banks that the Fed fronts for. They need arbitrage and near zero or zero at lower bound kills all arbitrage opportunity given enough time.
Dick Headley is out tonight saying global equity markets are going down big time within weeks, not months.
BJ Research Report compiled shows real aggregate demand crashing at called pace than 2008-2010 monthly average.
On a related topic:
Industrial Production Hasn't Been This Bad Since Q2 2009
"The Federal Reserve Industrial Production & Capacity Utilization report shows industrial production decreased -0.6% while January was revised downward to a -0.4% decline. February showed a measly 0.1% increase, so overall the first quarter looks bleak Annualized Q1 showed a -1.0% decline and such a contraction has not happened since Q2 2009. The G.17 industrial production statistical release is also known as output for factories and mines."
http://www.economicpopulist.org/content/industrial-production-hasnt-been...
And PMI indicated a near contractionary number as of April 1, 2015 (by official numbers), and I'd argue we went into recession in real terms magnanimous ago:
ISM Survey Shows Barely Breathing Manufacturing Sector - PMI at 51.5%
Submitted by Robert Oak on April 1, 2015 - 6:26pm
"The March ISM Manufacturing Survey shows manufacturing is barely breathing growth as a monthly -1.4 percentage point decline put PMI near the contraction edge. PMI is now 51.5% and if the index falls below 50%...that's contraction. The reason for the slide was supplier deliveries, which were more streamlined indicating less to ship and slower manufacturing hiring."
http://www.economicpopulist.org/content/ism-survey-shows-barely-breathin...
China, Japan, Korea and the Asian Tigers are about to shit the bed, and their crash (already underway) is going to literally burn paper, unrealized wealth at an amazing clip once the money rotating from Chinese real property to even more hollow equities catches on:
Shanghai Average new home prices decline 6.2% W/W, according to Uwin
- Shanghai New Home Sales increased 31.7% W/W
27 Apr 2015 - 04:02 - Forex - Source: BBG
http://portal.ransquawk.com/headlines/shanghai-average-new-home-prices-d...
Thailand Auto Sales (Mar) Y/Y -11.7% (Prev. -10.8%)
- March car output declined by -1.72% on year to 178,271 units
Reaction details (04:01)
- No immediate reaction seen in USD/THB, trades 32.58 last.
27 Apr 2015 - 03:59 - Forex - Source: BBG
http://portal.ransquawk.com/headlines/thailand-auto-sales-mar-y-y-11-7-p...
Say what you want about Peter Schiff but...
Thousands of muppets will be sacrificed. That should appease the money-God.
So QE to infinity was the truth? So I am sure Peter Schiff will tell us again.
Technically, that is possible. You cannot have fire without O2. Enough gasoline would inhibit O2 so the fire would be put out.
chain smokers beware.
Ding!
Why, that would be the good old United States Constitution, OC, Article 1, Section 8.
Not that anyone is using it...
What do I win?
You win your very own nailgun. Duck!!!
A trip to FEMA camp #13 for reeducation, same as me.
Camp 13, or District 13?
Lost is lost.
This is not not LOST it is "I need to be escorted into care" INSANE. Bring on the gentle rubber rooms. Let someone, anyone address this meglomaniac delusion.
Absolutely positively wrong. We are found. If you have been reading ZH for more than a few months you have to have known this moment was coming. You have to have known to be ready for it. You have to be in a position to benefit from it.
Wait, I thought the 7.5 year itch starts this week. Plus it's a Shemitah or smegma year or something like that.
Smegma year- that's the correct term.
Because a whole lot of Richard Craniums will be "cleaned out" and "washed up" this year.
My precious!!!!
+1 Holy shit that was funny.
Nah. They are just gassing up the helos. Bring it bitchez!
Let's hope so but I'm betting not.
We taxpayers have been propping up the stock market for generations thanks to the inclusion of the MIC stocks and oil stocks which only exist because of military spending. With Obamacare, it became official policy that taxpayer dollars get to support health insurance and medical related stocks ad infinitum. It was only a matter of time before it became open and permanent institutional policy that taxpayer dollars go directly to prop up the futures market too.
Don't forget the 401k Scheme to get moar money into the market.
Is Obama's 'MyRA' scheme still treading water?
Balance sheets and basic accounting are for "the little people" who are thrown in jail for counterfeiting & theft.
We're doing Gods work here! ;-)
"You can't taper a ponzi-scheme..." - Max Keiser...
Max has his moments, for a schizoid... He lost me when he began sucking Russell Brand's cock and singing the praises of bitcoin, when in fact he is an investor in a bitcoin exchange...
File under: NO SHIT
they will own it all eventually
By "it," they mean "us."
it was all fun and games while they were just buying treasurys. eventually it will be junk bonds, penny stocks, derivatives gone bad, real estate swindles, the whole nine yards. maiden lane 1 & 2 was just the beginning.
Absolutely. The BOJ is already do it. How far behind are we before our Fed is doing exactly the same thing?
who said they're behind
Damn you and your truthiness.
They will be doing so much buying that Yellowstone will have to be sold to pay for all the buying.
National Parks "Our best Idea"
@ buzzsaw dont forget student loan debt, too. Im sure that will be included once this bubble pops
No, only your CORPORATION which is your ALL CAPS NAME. The "you" (flesh and bood) can never be bought.
Correctamundo. I cannot be bought. However, if you are a hot blond/brunette/redhead I can be rented by the 5 minutes or so.
In reply to Buzz as well, you get it! We be pwned.
So many spinning plates! Party on!
Admits Djokar = "Floyd Ruby" = "squeeky FROHM" = low-level iinformant = deuschebag*
*huh, don't know nuthin' *
*We all be phu cc ccccck. Dddtttdd"
Shut yo mouth
Jus talkin' bout Shaft!!!!
but what happens when they shoot the last bear (probably me), and everybody is all in?
Does this mean they will increase their leverage to 683,000x....?
Eventually this wil end badly, whether the FED puts an end to QE or not.
At some point the financial system will go into meltdown, simlpy due to the laws of physics. What goes up, must come down.
Personally, they have just given me the confidence to stay bullish on stocks, for the time being.
It's already ended badly.
How are your family members under 45 doing?
Some of them might be making a good amount of money, but working 80hrs a week isn't living. The kids who think working at Google is awesome won't feel the same way when they are burned out at 35 with no real life.
There is nothing going on in the USA that can be considered a positive. Even the stock market going up is a negative because it means life just keeps getting more expensive.
Am I supposed to be happy that health insurance for a family now costs more than the mortgage on a $250k house?
Good points, adr.
First, we are in the very real Zero Interest Rate Trap that has been theorized and written about by many, usually Austrian or free market types. Most governments are borrowing money at effective zero interest rates and can neither generate self sustaining economies or pay down debt. The good ole USA is still piling on debt with no end in sight. Those writers generally did not theorize about QE balance sheets and a quadrillion dollars of credit default swaps, either.
Second, and more to your point, Obamacare is a huge barely visible but large drain on the economy. What just happened in plain sight is that everyone had their insurance rates double while downgrading their coverage to merely catastrophic. You are paying double for half as much. There is no actual extra productivity in medicine, no extra services and no extra coverage. However, the price doubled. The reason is that you are buying someone "poor" free first dollar insurance while downgrading your coverage. The early results show that fewer people are going for healthcare, already. So, there is actually less service being delivered. The reason is quite simple. Everyone under Obamacare (and the numbers will grow) pays the first $5k to $12k in costs before anything over an annual physical gets covered. That is essentiall self insurance. If you have to pay $12k of actual costs while paying another $12k for the catastrophic parts you are effectively self insuring. You actually have no insurance except in the extremes. Welcome to Redistribution 101.
Unless I miss my guess, the only happy people are the insurance companies who I predict are raking in record money. They just raised their premiums through the rough for a theoretical risk that not only did not materialize but actual expenditures are probably diving. Watch the reporst and CEO pay because they have to hide that money. The law requires 80% expenditures.
Obamacare is economically evil because it reaches everyone at every economic level, most importantly the millions in the productive class who cannot take much more. You will have the thrill of seeing the Medicaid patient come in and do their two dollar copay for the doctor or the medicince while you get a bill for $150 or more that you cannot afford. The Medicaid patient will have paid exactly zero for their care while you are paying $500 or more a month for the privelage of paying out of pocket on top of your premium. It's a huge hit and it is mandatory and prosecuteable.
Companies will respond will lower benefits, part time and further outsourcing to another country.
Your kids will be in your basement for a very very long time if they are dumb enough to work.
The other diabolical part of Obamacare is what it has done to employment. Tens of millions who once had a full time job, now have several part time jobs so no one employs them for more than 30 hours and has to provide employer funded healthcare for them.
Having several part time jobs instead of one full time job means more personal overhead for travel to work, time spent in travelling and more fragmentation of your time because the part time jobs do not mesh neatly in filling up someone's work day.
While the employer gets an employee without having to pay for health insurance, since employees are now not spending all their work time on that employer's job, their experience level and commitment are, on average, less, so they are less effective at the work than had they been full time employees.
And of course there is all the time and frustration individuals have to go through completing forms, as well as the inevitable tax problems for many when they discover they have to refund some of the Obamacare subsidy which they don't have available in liquid funds.
Those costs don't go away. They are enormous structural inefficiencies Obamacare has inflicted on the American populace. Good example of what you get when you elect someone who promises "hope and change" but hasn't any personal experience of wealth creation or even of working for a living outside of an affirmative action balloon.
Preezycare is making the AMT calculation look like child's play. Amidst our walk into shadow there remain bright spots for those who can think creatively. Look for a market need where your microbusiness can become 1 of your 3 part-time jobs. Not every business is capital intensive or requires a rocket-science PhD.
"Eventually this wil end badly"
For whom dear sir, for whom? They are buying up the entire world. You are fucked.
I'm happy to be f....d, and well off. It is not a crime to try and make a better life for yourself by participating in a system called capitalism, even though it is seriously flawed.
You sound a little bitter. Did you miss the six year rally?
Permanent QE is to financial stability as unending sin is to spiritual enlightenment.
It's too late for similes and I've already got two doubles in me.
I think I agree with you. If you said what I think you said.
You do. He did. It is. And I forget the rest beacuae I have more in me tha n you.
OK - it's official. The inmates have now taken over the asylum.
So how does it end? IMHO, an external event they cannot control...like what started it, i.e. Putin suddenly invading Georgia, August 2008, and sending an "orderly" liquidation of securitized "assets" into a tidal wave.....same shit will end it. That geo-political cosmic monkeywrench.
an external event they CAN control.
Eventually all countires can adopt the shekel as their national currency
I hereby declare my domain the state of me. I do not accept the shekel If you want something pay in gold, silver, or blood.
For the record I prefer the fried blood off of pork chops. That stuff is yummy.
Everyone's on the 'digital asset' side of the boat. What could possibly go wrong?
Moar asshats.
How will Quantitative Easing survive if we start using cash for 80% of purchasing goods and services? Your fucking toast. Rethink the long term scope. We don't need you, rather you need us.
How about:
Tell the f___ing truth, you POS.
http://patrick.net/misc/Ask+journalism+how+much+it+got+for+its+soul.++%2...
Shiller received a No Bell prize. You remind me of myself discovering fraud. Keep at it.
http://www.businessinsider.com/robert-shiller-yale-prank-2014-2
Thank you.
It is especially inhumane to deceive youth.
0 1
So that homeless troll at the bottom of the off ramp with the "Will Work for Debt" was Yellen. Desperate people do desperate things.
These brilliant morons understand that QE forever basically tells everyone that you never ever have to repay your debt. That in itself makes fiat worth less and worthless. Now that's a dual mandate.
Just like the US dollar states. IN GOD WE TRUST.
We have watched the Federal Reserve manipulate the digital currency. No thank you. You have fucked up trust.
If you mandate this, a bullet will go through the Federal Reserve window. Then you'll understand the the situation first hand. It will not be me pulling the trigger. Giving you advance warning.
Keep in mind. The Fed is giving back to the Treasury all the Interest that the Treasury pays to the Fed for all the Treasury securities that the Fed purchased. That is one reason why the Fiscal Budget deficits have decreased.
Most folks don't know that or haven't thought it through. Think it through.
The Fed will raise the FF rates and simultaneously announce QE 4 to assist in meeting its third mandate.
It's Saddam Hussein's fault.
QE by the Fed until a currency crisis. Then IMF SDRs is their backup.
The Federal Reserve's long-term plan to impoverish the small people.
The IMF's Oct 20 acouncement is meaningless. The rest of the world gives not a shite about the U.S. dollar anymore
Big fucking deal, more printing of fiat has always been 'normal' policy for the Jews that own the presses. Dumb Goy will never understand because he's convinced it's over his head, with terms like quantitative easing and other BS that simply mean they print as much as they want while goyim do real work for increasingly worthless receipts.
Keep killing people in foreign lands to defend your 'freedoms' dickweed, just don't look over here.
No, it's because like White Guilt the Jews have brainwashed the mass populace through decades of media that the poor Jews were thrown in ovens just because their noses were big.
The Goy have morals which is our biggest weakness they exploit.
There are plenty of white guys with names like Smith, Bush, Clinton, and Morgan. There's no way that Jews can manipulate any system against the wishes of that population. They are all in on this garbage unless you believe Jews have secret mind control techniques that you somehow escaped.
It is a keynesian-statist-collectivist-elistist-central planner ideology that drives all this stuff. It's all white guys, some Jews and all central planners. It is no more of a conspiracy than the NBA is a black conspiracy or convenience stores are an East Indian conspiracy.
The proper target is government power and that disempowers anyone you love to hate.
One thing that doesn't get a lot of attention, at least in the MSM, is the fact that the Fed is rolling over the interest on the federal and other debt obligations that comprise its balance sheet into additional debt. Given the current size of the fed's balance sheet, a substantial de-facto form of ongoing "unannounced QE" is already in place.
The "miracle of compound interest" is already heavily entrenched to the determinant of the US taxpayer and in the end game to the detriment of holders of US debt obligations, as the insolvency hole of the US government is dug deeper and deeper. In essence the Fed has addicted the US economy, and possibly the world's economy, to money creation.
IMO, the only exit scenarios are:
1) The eventual realization that the US$ must be inflated away at a rapid pace to lower the real value of the US debt outstanding to a manageable figure that can be serviced by the US taxpayer in real terms. Or
2) The US must default on its debt, resulting in a rapid fleeing from the US$, which would result in an even more rapid devaluation of the US$ than scenario 1)
To refute this proposition, US$ bulls would need to identify any example in history where such profligate spending and money creation on the part of a government was resolved without massive devaluation of its currency. I don't think they can identify such an example.
Excellent points.
I will add that until recently the Treasury was rolling over longer term higher interest rate debt into shorter term virtual zero rate debt. The reason is obvious. It is to get as close to zero as possible and sort of neutralize the compounding monster. The problem is that spending has not slowed a bit and you can go bankrupt even at zero interest. Also, if rates begin to rise and rise substantially the short term debt will quickly roll into much higher rates than if it had all been done in 30year notes. That will put the government in a crisis very quickly.
Most analyses I have seen show a "game over" default scenario with just a two percent rise in long term rates.
The problem has always been spending but we have one party and half of the other who deny that.
You don't get it.
CERN's large hadron collider fired up for the first time Sept 10th 2008.
We were blasted into the bizzaro dimension of the multiverse - bad news is good, war is peace, slavery is freedom.
There ain't gonna be no damn crash, no hyperinflation, and history doesn't matter.
This time its different.
Well when you been doing it for 10 fucking years, thats pretty much as normal as it gets you faking twits.
"o don't worry about the fraud, crimminal cartels and money counterfeiting going on by a private bank, thats normal policy".
http://cdn.meme.am/instances/500x/61650416.jpg
Pretty much sums it up.
No, this time, they need to give a few rounds of QE to rest of society, instead of funneling it directly to the big banko-corporations. This can take the form of debt-forgiveness, and/or monthly consumer allowance. Reduce rents too, while we're at it. That will free up additional money for consumers to spend on knick-knacks. The elite have gotten too good at sucking money from the host organism.
iWatch sales will bail us out of this derivative trap.
/LOL
What happens in the U.S. has no impact anymore on the lost of reserver status. We are beyond that point. The path is already set.
Let us not forget those with attempt at even an actuary to give me me shit cause ZH been wrong since 2008 because what can't admit to the stalking
before that date
Really even if u did have an actuary I would wonder what ur gig was
Whats ther issue but yea u suck thats why im here
cause they so great to stalk the place out to meet them!
Really I don't take to those who pretend to be my mommy if I be here or mommy in law who hates their son who look like their daddy who isn't anti man enough to be one my boyfriends mother.......
Fuck u and ur issue with me being here at ZH
Well I am sure the real people who built America and the rest of the developed world will save us.
I saw them trying to rebuild Baltimore last night. Looked like a funny way to do it, but we elected one of them to change the country. I'm sure they know what they are doing. I even heard from one of them that Jesus, Einstein, and Thomas Jefferson were actually like them. Those guys just had a skin condition that made them look different.
See we are saved.
The effort just needs to be focused.
Focused on the Banksters....
All is missing is a lens. Problem is most of that class has no one to focus them. The parasites like Jessie and the like care nothing about their people.
This is a frank admission that the central bank is now the market, that there is no market, that there is just the Fed.
They will be overthrown with this kind of position: that it is normal to steal money every day, and that it is normal to continue to transfer wealth from citizens to friends of the banks, that it is normal to have a central bank substitute itself for the market and control the government.
We all knew their exit-talk was pure BS.
Can't raise rates.
Just on/off QE.
QE4, which will be larger than $85 billion/month, will keep pushing stocks higher.
Think of Zimbabwe economics.
One time I will have to tell u about my parents first marriages mama told me about...
Not to mention mamas gpa
We cool w queers as well as all kinds of shit
NY no kill rat policy relocation policy meets whyliee coyote BUSTED.....we all safe NOW!
NY no kill rat policy relocation policy meets whyliee coyote BUSTED.....we all safe NOW!
Check out my logo...
In this enviroment where they've convinced everyone that it is deflationary - via buybacks, selling air in potato chip bags, etc - these baboons will be lucky if hYPER INFLATION takes place first before a collapse.
Ofcourse that would require salaries to move from 1978 standards to 2015 -
But it wouldn't surprise me if these sociopaths just pull the plug before a period of hyper inflation take plaae....
These poor 20 somethings have no idea what is coming - those with jobs will live in Japanese like quarters - 400 sq ft flats with minimal items. A flat screen tv on the wall, laptop, latest Iphone, high efficient showers ith timers, limited flush toilets, a few clothes in their diminitive closets - no need to own a car and have insurance - when they can drive luxurious and spacious Zipcars....
The clean and efficient serf......
Be happy in your serfdom
Print money
Create money out of nowhere
buy everything from everyone
give them the print, the printed paper
Your soul for a print ,
Th dollar is a contract to sell your soul
to the devil, mammon
You guys should be happy. Here is the Boston Fed saying that, in order to maintain the status and wealth of the powers-that-be, the Fed will do its part by crushing the nation's wealth. Clear as a bell.
Say what you want about Peter Schiff, but...
suggesting that QE become a permanent tool
paging Captain Obvious!
Yes there is a fix - it's called redirecting some, or all, FED money creation toward government work projects (ex: rebuilding bridges and highways) distributing income to working and middle-class Americans, the heart of consumerism that keeps our Capitalist wheel moving. All previous QE's undoubtedly proves giving free money to 1% doesn't work.
Keynesians are supposed to reduce the money supply (reverse QE) in the good times so they are saying there will be no good times.
Why would big money even care if the 99% are making any money and only live from pay check to pay check. This is all about big money and power. They'll do whatever they need to do to control the system. What you or I think, want or need does not matter. It's all about 'follow the money trail'.
Incoming black swan. That one is the scout for the flock.
QE is the black swan.
It always has been.
JADE HELM 15 folks
Smoke em if you got em
A new economy is being created right before your eyes.
An economy that doesn't need 99% of you.
Don't you understand?
This is depopulation without firing squads and camps.
QE has always been a feudal policy.
Perm QE means feudalism.
Who didn't know this was the plan? Raise your hands...
First of all, the reason we are in low to negative interest rates is because, the asset values are leveraged 80+ to 1. Each one of the leverages would need to gain interest. Also debt servicing. It's all about the asset values and leverage ratio. If the price of that leveraged asset deflates, the leverage ratio increases. It's all about inflation because, it affects the reserve ratio.
There are two kinds of inflation. Number one, Inflation from production/job wherein, the person/human with a job saves/invests a dollar and then the bank intern creates Nine new dollars, out of thin air, to loan to the next guy. (Reserve lending). This inflation is good because, it expands the economy and creates opportunity as everyone has access to it.
Then there is electronic printing/QE/POMO/Leverage. This type of inflation requires no production and can be whipped up on a computer keyboard and sent to anywhere on earth, within milliseconds to save the system that created it. This form of inflation is bad. It competes for human jobs and also is able to marionette the economy by, printing up those digits electronically and buying/selling futures and options or anything, controlling prices, intern controlling wages. A person with a job creates good inflation expanding and supporting the economy, at a sustained growth rate. The moment a person goes from being that good inflation creator, saving and investing for his future with that job, into an inflation eater/consumer/eliminator with no job. Consuming those electronic digits, controlling prices. After all, who can afford to raise prices or wages if, 72% of all American families and 52% of all Americans are receiving these electronic dollars (public assistance) to control inflation. They had to extract more taxes because of all the printing, too control inflation. Couldn't do that ? They came up with a great idea to extract more dollars from the public, controlling those prices and wages because, no one can afford to drive them up, right ? Here's the idea. Tell everyone that 'affordable' healthcare will become law and then raise rates/deductables 75%. I still say, that was one of the most brilliant moves, in history to control inflation domestically, while we try and open the avenues to export that inflation once again. See below.
Lets prove out that paragraph above. Take a look at the shale/fracking/sands increases in production, jobs and investment. 77% of every job created since 2010 has been in the oil sector. (shale/fracking/sands). But, let's take that one step further. When you are 94% self sustaining country from an energy point of view (thats Us) what happens ? The avenues to control inflation are shut. What are these avenues ? It's called the exportation of domestic inflation by, exchanging our good inflation dollars collected at the gas station pump and shipping them overseas in exchange for their foreign oil. Grants, gifts and "projects" also fit into the description of the 'exportation of domestic inflation'. Exporting this 'domestic inflation' controls prices and wages here at home. If this inflation is not exported, prices and wages will creep up. Crash oil prices for a while, turn all the inflation creators with a job into an inflation eater/consumer/eliminator without a job to control the rate and exposure of inflation. Problem is that everyone is printing in overdrive and everyone (all currencies/nations/fiat systems that print) needs to export that domestically created inflation, to control the value of that currency at home and globally if, your are reserve and petrodollar system, that doesn't need human production to run or suppot an economy. It's all about keeping the asset values high
That's the layer above, what you described was the layer below.
The electronic creation of currencies are in direct conflict, with human jobs and their creation as described above.