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This Is What Yellen Said About Negative Rates Coming To The US
As reported earlier, the biggest stunner bar none in today's FOMC announcement, was the emergence of a negative interest rate dot in the Fed's projections. It was unclear who drew that (perhaps Kocherlakota, perhaps not)...
... but the author is ultimately irrelevant: what is very relevant is the "inception" of NIRP in the heads of the FOMC members, which came at a time just when everyone was supposedly gearing up to boost rates by a meager 25 bps, further raising questions if the US economy is already in recession (spoiler alert: yes).
Of course, this should come as no surprise to our readers: just in January we wrote "Get Ready For Negative Interest Rates In The US", but for the Fed to admit this possibility just when it was widely expected to at least signal a rebound in the economy with the tiniest of rate hikes, or at worst a hawkish statement, was truly a shock.
So besides a red dot on the dot plot, what else do we have to go on? Not much, though luckily one reporter did ask Yellen what the NIRP dot signaled. This is what she said:
Let me be clear that negative interest rates was not something that we considered very seriously at all today. It was not one of our main policy options
The proverbial "we did not seriously consider it today" fluff. Remember when the SNB promised the Euro-Franc peg was safe and sound "today", and the very next day it crushed countless FX traders who were long the EURCHF? Kinda like that.
And yet...
I don’t expect that we’re going to be in a path of providing additional accommodation. But if the outlook were to change in a way that most of my colleagues and I do not expect, and we found ourselves with a weak economy that needed additional stimulus, we would look at all of our available tools. And that would be something that we would evaluate in that kind of context.
And there you have it: not if but when the inevitable inventory accumulation spills over and results in the next recession, we now know the simple choice that is facing the Fed: QE 4 (or 10 if the Fed goes "Windows") or NIRP.
As for hiking rates, well we leave it to Ben Bernanke who said it best earlier this year: "No Rate Normalization During My Lifetime"
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Congrats Janet Yellen.. I lost all faith in you and free markets.
Welcome to the party. You are a little late, most of the canapes and shrimp have already been eaten.
I had a feeling they would try negative rates before this thing is finished. It will only end in superbubbles that make the dot com and housing bubbles look small, but they will just crash from a higher level.
Translation: "WE WILL NEVER RAISE RATES AND COME TO THINK OF IT, RATES WILL BE NEGATIVE SOON ENOUGH!"
NIRP is the next step as ZIRP loses it's effectiveness.
And it's everything to do with declining core population growth in the US and outright declining core populations globally...when there are fewer buyers, the logical step is lower rates to get them to leverage up...and when that doesn't work, pay them to leverage up.
http://seekingalpha.com/article/3517306-why-fed-rate-hikes-are-truly-laughable-but-the-world-isnt-laughing
From considering raising interest rates to having negative interest rates...sounds like to me that Yellen is pulling a Gartman.
Yellen is getting a witch treatment by getting sucked into a deflationary spiral.
The "dot chart" looks like a Rorschach test...for the public.
better get going with that cash ban quick, I hear NIRP is much more efective when people don't have much choice
Gold, bitchez.
After you have crossed the rubicon, you have to count backwards.
Change will have to be forced on the system from the outside.
China almost scared the fucking joo right out of them with the bond thing. It mostly hinges on THEIR market, as wallyworld street has proven itself to be largely irrelevant.
My pussy itches!
"...all of our available tools."?
Translation for those who don't understand sophisticated fed speech,
FUCKING JEW BANKERS WILL GET ALL YOUR MONEY.
to a bank, its product is money aka debt. it is poison like anyone having too much debt or business to have too much inventory. nirp is both a theft mechanism against savers and a weak way to force people to get the poison of the feds debt out of their system and into the peoples hands where it can be silently stolen through inflation aka dealuation aka printing. THE FED IS FUCKING EVIL AND HAS BEEN FOR 100 YEARS!!
I'm cool with negative interest rates. I just want a FEMA trailer and free dental and medical. Give me that, and I'm as happy as a pig in slop. Word to your mother.
The Fed is nothing more than a group of old fat crony bankers stealing your grandkids money.
Nice guys.....huh?
think about how negative interest rates really work. I borrow $100 from you today...pay you back $99 in a year...and my debt is paid off.
Think of what that truly is. It's not negative interest rates....it is DEBT FORGIVENESS, and that's what it should be called.
The world's going to get interesting.
Do you actually think you'll get negative rates on YOUR debt?
LOL!
Your credit card rates will go UP, not down. And no one will EVER pay you to buy a home. Those negative rates are for the big important borrowers, not you.
Where do you think the money for those negative rates will come from? Someone will make out like a bandit, it just won't be you.
duh...of course not. Only the Treasury, insider hedge funds and mega corps will get that rate. It was an EXAMPLE!
think about how negative interest rates really work. I borrow $100 from you today...pay you back $99 in a year...and my debt is paid off.
Hah! You forgot to mention in your scenario that YOU are a bank. I put $100 in savings (unsecured loan) and in a year I see a balance of $99.
MY borrowing (as noted above) still incurs a positive interest rate. Are you currently getting mortgages or car loans at .25%? Didn't think so...
Right.
If they actually want negative rates to stimulate the economy (and by stimulate I mean hyperinflate) then they would give consumers negative rates.
Somehow they want us to believe that by giving banks negative rates (including charging people to save money at banks) that the banks will show some kind of restraint that consumers would not.
What will happen is the so called banks (who are actually hedge funds) will lever up, buy everything of value and crush the people further into debt servitude.
That will be their actions, so clearly that is their plan.
They have had many opportunities to turn back and have declined to do so. It is not weakness or incompetence. It is corruption and evil.
FY 2016 and 2017 look pretty sexy to me - - -
Yellen is a nobody, just a mouthpiece for the Khazarian Bankstre Warlords who don't want to give you anything anymore for holding their fiat but would happily charge you 29% for your credit card minimum payment. And soon they will charge you fee's for banking with them.
a little majic and tisssue paper is worth your labor and production, now who controls the tissue paper, well there's the rub. one religion has had all the fed chairs for over 2 decades is just well luck er majic.
+1.
So..I can assume that..
1. They REALLY aren't going to raise rates. (As many here have said in the past..although reading several 'Tyler articles' recently..one almost might not have have gotten that same vibe..'almost' as though the Tyler were convinced for a hot sec there..could be just me though..) ;)
2. Negative rates ARE coming to a US of A near you.
We are not spending enough.
Most have nothing to spend.
So they will beat us with whips of negative return on our wealth (such as it is) while incentivizing even more debt.
WE MUST SPEND
even if we have nothing to spend and nothing to buy. We will be asked to borrow, if it is only for paper to burn in the backyard pit. Money is no longer important. The currency of the day is DEBT.
Think about it!
It will cost us to save and they will PAY us to spend what we don't have. The world has gone mad.
They will "pay" us in funny money.
She looks like she's about to have a heart attack, is that just another tool? Or is she just another tool, or fool??
Translation: "WE WILL NEVER RAISE RATES AND COME TO THINK OF IT, RATES WILL BE NEGATIVE SOON ENOUGH!"
We already have negative interest rates. Anyone who doesn't see inflation, haven't been paying bills. The costs of essentials, food, heating, college education, healthcare etc keeps going up.
Basically, every working person is on the breadline.
ZIRP or NIRP does not help anyone except the 1%.
Who is driving up the cost of housing, stocks etc ? Investors. The banksters' favorite customers. They get the best borrowing rates because they don't really need to borrow. As compared to the person who really needs that loan for a mortgage. The people who need to borrow are a greater financial risk to the banksters than the investors.
Shit, I wanted to just chill and numb out on a joint or three and football, but you had to mention the cost of living.
In case you haven't noticed, or maybe you live in a city, in which case, too bad, but everything is getting cheaper out in the sticks. Firewood, fresh vegetables, honey, labor, everything is cheap and getting cheaper, even fucking gas! (2.31 today, cash price, and this is NY state).
The deflationary supervortex™ (yeah, I'm calling dibs on that) is about to suck out every last breath of normalcy bias left in the world, so, I suggest sucking off the teats of public employees. Do their yard work, fix their faucets, etc. After all, you already paid for it, taxpayer.
Anecdotal comment: Bought about five pounds of fresh, homegrown tomatoes for $3.00 the other day. How's that inflation treating you?
Enjoy your football teevee programming.
It's more biflationary and hits certain sectors at certain times. Right now most prices are plunging due to massive oversupply and very low demand. People are broke so zero demand an dinventories are huuuuuuuuuuuuuuge. Clothes, even food is stacked up with no place to go and zero consumers to buy. Wages going no where and STEM grads are also getting reamed. Only bankers and politicians are golden.
The things they can force you to buy [like Obamacare] are skyrocketing.
Forsure, savers are getting the dry sodomy treatment by the Fed and Wall Street bankers.
That's one reason I like Trump. He is NOT a career poltician; he actually has a real job and is not born and bred inside of the DC Loop. Who knows but I feel he understands the plight of the American Middle Class better then any of these other professional polticians. He has tons of common sense. By far and away he is better then any left-wing democrat who simply want huuuuuuuuge tax increase to pay for their massive gubmint expansions.
I don't know enough yet about Fiorino but Bush seems totally disconnected from America's Middle Class along the lines of Boner and Mitch McConnell.
Trump is gonna break your heart Loki
And a nice 300M from his dad, Fred.
I see a portion of Trumps support coming from many who want to be a part of a campaign that rubs the establishment and their groupies noses in it. They like to watch someone not cowed into admitting they misspoke or however else they can dilute their apology. They revel in Trumps Immunity to their weapon of toxic slime and actually shoots back. I admit to enjoying the ride in the backseat as Trump runs over the elites standing in the street shouting HALT! I only wonder if Trump is a victim of his own success. I'm not convinced he is in it to win it and for that I can't blame him. If so be has a problem with an exit strategy. It must be something dramatic and punishing to his detractors.
Trump is a carefully calculated and meticulously timed theatrical act. He's not running roughshod over the elites; he's doing their bidding. It's Obama all over again. He's telling the masses what they wanna hear.
The emotional support is always the easiest to reach compared to rational support which requires hard facts and analysis. The problem is that emotion support is not secure, it can change in a heartbeat.
I support Trump's attack on political correctness and some of his stands, but for me that doesn't translate into a vote. I hope that he is the icebreaker that clears a path for a rational player who can truly represent MY conservative perspectives.
I know.....I'm suffering from irrational hope.
Your hope is audacious. ;)
It's not the pols don't understand, it's that they just don't care. It doesn't pay as well.
FORWARD SOVIET
fiorina has also been frequently called out as one of the "worst" CEOs.
http://finance.yahoo.com/news/yale-professor-carly-fiorinas-business-193...
She's just as ready to send soneone else's kids to die in a banker war as any of the others.
You do not get your name on the ballot without pre-approval of the ballot controllers.
I live in rural MN and stuff is expensive as fuck. Grocery stores bone you here because it's 30 miles to the next one.
It was always a bluff. They cannot tell whether or not they are going to raise rates until they get to the moment. They signaled earlier that they know they SHOULD but that is a bluff. It is trying to look like an honest Keynesian who will go countercyclical...only they never do. They always go for the balloon-bubble-boom.
Homes are super sensitive and it brings out those asshole home flippers everywhere. They are back in force. There are two types: 1. The kind who buys a home in a hot or accelerating area and actually improves it, increases the market value and sells at a profit. This type is not so bad. 2. The guy who finds and underpriced home, buys it and puts it back on the market two weeks later at 25% higher price. I hate these guys. They actually drive up home prices with an artificial demand.
I remember in the last boom-bust reading about Vegas waitresses who had 13 homes. There have to be 12 other actual people who want to either live in the home or own it as a vacation home. Apart from either, it is a fake demand and fake pricing signal. It drives up the prices for people who actually need a place to live or have some organic need for another home.
I know that free marketers can make an argument about how this works and I get it, but it is still not long term organic demand.
As one who is in the midst of selling his home to more to another area it irritates me. Yes, I do get appreciation on the selling end but do not really get ahead when I have to replace it at 20% higher, as well.
At the core of these things, you will find the Fed-government-central planners.
Well the Latin Americans, the Chinese, the Europeans seem dumb in this regard... "Push Forward Men" on toward NIRP.
"Translation: "WE WILL NEVER RAISE RATES AND COME TO THINK OF IT, RATES WILL BE NEGATIVE SOON ENOUGH!"
- Not that Latin Americans or Chinese have NIRP, but the proven propaganda of WWI Era USA and Nazi Germany is a proven Technique, successful tools.
A most interesting Set of Rules. As the Order states, Interest Rates cannot go negative since it would mean you are paying Janet to hold your money when you could put it under your mattress and lose nothing.
So wass'up?:
1.The purpose of the NIRP is to FORCE the money into the Economy to stimulate the Multiplier.
2. When first considering the idea, it's "Simply Horrible! I've got to put my free money into the hands of those...those PROLES!"
3. Ahhh, but sanity takes over. Nobody else is putting THEIR money into the Drubs grimey fingers so there is something else going on.
4. "We'll PAY Janet and her bosses and keep our cut because, absent other actions, we'll still have more free money left over at the end (*Shudder*) compared to what we will have left otherwise.
The game is not over because someone is still geting trainloads of free money (...and shiny metal commodities...), the WAR hasn't hit our shores yet and there's still a pipeline to "Our People".
Subject to change at a moment's notice but...GAME ON!!!
CW
... you could put it under your mattress and lose nothing.
This is why they want to ban/prohibit/outlaw cash, oh don't ya know. No more paper to stuff in that mattress.
The gvt will default before they are able to raise rates, i've been right all along here folks, trust me on this.
Is not negative rates a government default? 18 trillion dollars of debt that they likely will be getting paid to create.
In any sane world, any entity that is forced to borrow to make payments on their debt is in default. The fact that the banks can't afford to call the note says more about them than the debtor.
Corruption is default...the contract failed
Take it a step further.
The IRS will still consider earned interest taxable even if it's at a negative rate.
May the bird of paradise fly up their noses.
No way will Americans stand for negative interest rates
Piss on'em.
Horseshit.
Americans are a bunch of debt addicts.
Americans have no savings.
Americans will cheer negative rates.
In real terms, rates are already negative. Time for local tribes to organize, take stock of their local resources, arm themselves and stop sending any more tax revenue to D.C. The international trade and supply lines won't hold much longer, at least not based on what I saw in Brazil.
Lots of useless fucking paper-pushers getting upset that they will have to work for a living again.
Fuck em.
So they considered it but not SERIOUSLY considered it. When the shit hits the fan then they will SERIOUSLY consider NIRP. I got it now.
If you are a real estate developer, like Trump, ZIRP/NIRP are heaven on Earth.
Zero cost of money for you to build.
Zero excuses for buyers to borrow money to afford the crap you build.
Take out the abstract numbers from "employment" and this country is already in a depression. The average American makes less than they did 10 years ago. A falsely high stock market and good jobs replaced with part time jobs do not make a recession.
All these RE speculators love zero rates as you said, HH. They sit on the land forever with almost no carry costs.
yup, that is where my saving is, paid cash though. plus it can be enjoyed, hunting, logging ect.
yea it could go down, but with very low taxes(188/yr) ask me if i care, cause dolla going down equel if not moar.
land gold anything durable cetp a suit, tie and lie...
Raw land is still way overpriced where I live and even far away. Land that was $500 per acre ten years ago is now listed at over $10,000/ acre. Not realistic and it's no wonder it's not selling.
If you want to "stop sending money to DC", do it legally:
1. Stop working 40+ hours a week.
2. Stop buying shit you don't need.
3. Downsize the house.
4. Downsize all that shit you bought.
I see this more and more..still plenty of people "concerned with thier image" and willing to kill themselves working to LOOK "successful"...but I am continually surprised to find people tired of the rat race and taking action to get off that wheel.
Jeb Bush...that STUPID FUCKER...says X million Americans are working part-time, but want to work full-time...YOU'RE A CLUELESS FUCK JEB...just like your brother...Take a minute to talk to those part timers...many, many of them are perfectly happy with 25hr/wk jobs.
Don't disagree at all. In fact, I totally agree. But, the trajectory is likely:
1. Most people will get crushed by rising cost of living as governemt sucks everything into it like a black hole - just wait until public pensions begin to fail (the raping of the population will be devastating). People will have to work whatever they can, whenever they can, etc. Ability to work less wont be an option. Working under the proverbial table will become more prominent. Barter as well.
2. Will result from pressure from #1. Long overdue anyhow.
3. Tough when the housing market is out of control. The bubblenomics at play here wind up trapping most on one side or the other (buyer versus seller).
4. For sure.
The net result will be deflationary. People will be forced to reduce all unnecessary expenses... right down to mission critical. And many will wind up just walking away from houses again. But, until the current system fails, they will be trapped in the system. Surviving this journey is going to be real thing that ZH should be talking about. Focusing on items 2, 3 and 4 are what people should be doing right now if they can.
Cool post, by the way. Gave me a good lead in for what I wanted to share. (and... you have one hell of an avatar!)
you are spot on centerline, fucking exactly my delemia by choice, wifey and i must both bring in income or give up the country(modest) living on acreage. not too much to chew with 50 percent equity, but none the less, on da treadmill. but i will say, better off than the chasers you mention.
human will never really change til forced too, ha...
Solid post centerline!
Jebbie is horrible but I watched the replay of the Commie News Republican scrum and picked up something that we already knew. We already knew that Cruz's wife took a leave from Goldman while dickface runs for the nomination. He showed his subtle central banksterism last night by declaring that he would leave Alexander Hamilton on the $10 bill and take Jackson off the 20. Hamilton was a big proponent of a central bank in the Brit style and Jackson despised the concept and fought it tooth and nail.
I'm just waiting on someone that touts that POS as Prez and I'll unload on them. It was a signal to the evil empire that he'll play their game. The American voter has no clue as to that little camouflaged message. I forget the rabblerousing cunt he wanted on the 20 in lieu of Jackson. Yeah, the same Jackson that borrowed cannons from Jean Lafitte and kicked the Brit's ass at New Orleans with a bunch of Rednecks and Cajuns that joined the fray.
We suspected, but now we know. He was spouting about sovereignty from the UN (I believe it was Cruz) while signaling keeping it in the hands of the intrnational banksters.
Newsflash:
Cruze's wife is managing director at Goldman. Do you really think he gives a fuck about sovereignty. Total kabuki theatre.
http://www.bloomberg.com/news/articles/2015-03-23/cruz-s-wife-heidi-said...
This. Stop feeding the beast.
Americans are at the lowest level of intelligence ever recorded in the US, and importing a bunch of Spanish speaking drug cartels won't make things better. Go look at the people in any Walmart in anyplace in America at any time. Do you think 1% of those people have any idea what the Fed even IS ?!?!?
I read somewhere this week that only 30% of Americans know who Mr. Yellen is.
I am truly amazed the figure is thar high.
5% is probably more like it.
Brawndo! Its got electrolytes.
Recent poll shows over 85% of adult Americans cannot place Iowa on a USA map. Fewer then 5% can place Germany on a map of Europe.
And, yes, ZH'ers, these are our voters.
30% is way high.
Syrin, I agree. But, I will take a pass on visiting Walmart, there is not enough soap and disinfectant to clean oneself after such a visit. I wold rather go to Haiti.
How did foriegner increase US Property Holdings after 2008?
Look at 2008-2010 on chart. The dip in Blue is US losing Property/Assets overseas. The jump in Yellow is Foreigner Moving into US Wealth Property/Assets.
http://www.bea.gov/newsreleases/international/intinv/iip_glance.htm
Probably is just Elite Insiders plan moving forward as the whole thing was planned out by Bankers. Like bernanke, Paulson, Yellen, Greenspan, Geithner, Blankfein, Dimon, Weil, Fund.
My friend listed his farm for $3.4 million awhile back. No takers after four years. Then some international RE company contacted him and asked to list it internationally and he agreed. They jacked the listing price up to $10 million and started bringing Chinese over to look at it. Sold it in 14 months to a couple of Chinese men for $7.2 million; and the Chinamen felt they were getting a bargain, $10 million land for only $7.2 million!
Who knows where the money came from. No one seems to care. No questions asked...not like the old days when you had to show source of that much money from to do this type of transaction. The closing agent said it's very common now and they actually see not only lots of Chinese but lots of Nigerians!
Thanks. Salesmanship wins again, a marketing coup.
not so sure HH. for NIRP to really be effective, they have to ban cash first. sure, a lot of people wouldn't notice at first since ony "outlaws" use cash.
Actually, savers have about $8 trillion in long-term savings accounts.
And Bill Sardi on August 7, 2015 on ZH predicted that those savers still standing eventually will be “partially rescued” by a rate hike. Said Sardi, “The Congressional Budget Office says this is going to happen in the second-half of 2015” – all part of the propaganda, perhaps, since the banking cartel and not the CBO has sole power over the economy.
It’s easier for general consumption, of course, for the bankers to suggest there are few savers to sacrifice. But truth telling has never been one of their attributes. The fact is, rate increases can be predicted for infinity (a carrot dangled in front of savers for 81 consecutive months now), but the decision is made only by the owners of the Federal Reserve, the bankers. And who can doubt that the decision has little to do with the health or future of the American economy. And, as the vulgarity of wealth achieved by the elite bankers demonstrates, their motivation for all kinds of policy is strictly personal (and private – like the ownership of the Fed). Bernanke’s bizarre rational that the economy requires the sacrifice of savers for his lifetime reveals the power and greed of the Fed.
Regardless, here’s Sardi on the fate of America’s savers:
“Once interest rates rise on borrowed money from the Federal Reserve, banks are going to have to raise their interest rates on long-term savings accounts from less than 1% to maybe 3.0% to halt the continued erosion in the value of saved money (about $8 trillion in these savings accounts). That rate of interest does not match the rate of inflation, said to be 2.2% target rate by the Federal Reserve Bank but more like 5-6% from 2010 to 2015 according to ShadowStats.com (however ShadowStats.com now shows the US economy is in steep deflation with the inflation rate plunging like it did in 2009 after the banking collapse). [ShadowStats.com] But savers are finally going to lick their wounds and start earning meaningful interest on their money again. Savers will still be losing wealth, but just not as much.” -- What The Federal Reserve Is Going To Do And What The Next President Should Do To Invigorate The US Economy
Ron Paul, who predicted in August there would be no September rate hike because the Fed is “terrified of 1937,” also is predicting a long called for "day of reckoning" that will lead to the collapse of both the fixed income and equity markets.
http://www.cnbc.com/2015/08/16/ron-paul-fed-may-not-hike-because-everything-is-vulnerable.html
JR, Thank you so much for a concise, intelligent comment. I wish I had your knowledge, but I'm a hopeless hoarder of silver and a drunk, which is why I read ZH. Party on!
Interestingly the Brookings institute where Bernake now works was funded by Rockefeller Foundation and Ford Foundation... and was partly responsible for putting together the CBO as per wiki.
"“The Congressional Budget Office says this is going to happen in the second-half of 2015” – all part of the propaganda, perhaps, since the banking cartel and not the CBO has sole power over the economy." from JR
Well full circle, there is a relationship between the FED, the CBO, Brookings, Rockefellers, Ford Family.
Full circle is right, which explains Bernanke. And they say Brookings is centrist. It’s centrist like the Likud party.
The definition of a think tank is a partner of the Israeli Lobby.
Who Controls the Think Tanks?
Priceless! Free. Send me a few coins, and I'll tell you everything I know.
Total Savings Deposits at all Depository Institutions
2015-09-07: 8,164.3 Billions of Dollars (+ see more)
Weekly, Ending Monday, Not Seasonally Adjusted, WSAVNS,
https://research.stlouisfed.org/fred2/series/WSAVNS
Yep.
But look at the Graph, doesn't even dip in 2007-2010, the rich get richer even in Recession and Financial Crisis.
Just like Carib Banking Centers US Treasury Holdings, sky rocket from 2002 which was broken out as Bermuda and Cayman Islands till it because Obvious the money was flowing there.
http://www.treasury.gov/ticdata/Publish/shl2002r.pdf
http://www.treasury.gov/ticdata/Publish/shla2013r.pdf
(http://www.treasury.gov/ticdata/Publish/mfh.txt)
http://www.bea.gov/newsreleases/international/intinv/iip_glance.htm
Bermuda 2002 = $14 B, then 2013 = $94 B, Today ??
Cayman Islands 2002 = $10.7 B, then 2013 = $66 B, Today ??
Carib Bkg Ctrs, $324.5 Billion USD
Bankers controlling the Federal Government is both RICO, Racketeering, and Treason.
18 U.S. Code Chapter 115 - TREASON, SEDITION, AND SUBVERSIVE ACTIVITIES
§?2381. Treason
§?2382. Misprision of treason
§?2383. Rebellion or insurrection
§?2384. Seditious conspiracy
§?2385. Advocating overthrow of Government
§?2386. Registration of certain organizations
- 1994, Fast Track Authority for WTO Approval
- 1994, NAFTA Treaty,
- 1995, Sub-prime mortgages started
- 1995, Community Reinvestment Act, the Clinton Admin urged flexibility,
- 1995, HUD advocated greater involvement of state and local organizations
- 1996, Start of a Period of Accounting Fraud in USA which continues today
- 1997, M2 Money Velocity Top
- 1998, Brooksly Born Rejected on her concerns on OTC Derivatives
- 1998, Derivatives expanded and were not regulated
- 1998, Clinton's Kosovo War
- 1998, Citicorp & Travelers Insurance Merger
- 1999, Gramm–Leach–Bliley Act (GLBA), End of Glass Steagal Act
- 2001, 911, Hijacked Airplanes flown into buildings, bld 7 federal records and banking data lost
- 2001, US-Afghan War
- 2002, McCain–Feingold Act (G.W. Bush, Campaign Finance, soft money unlimited)
- 2003, US-Iraq War
These are the fingerprints of the crime, Teeth. A banker-controlled economy transfers the private ownership of the means of production to the bankers who are stealing the means of production.
A powerful indictment, Teeth. Thanks!
Actually, "All your monies are belong to US!"
http://gata.org/node/5606
The dividing line between America's political government and the bankers has become invisible. Thus Powell's concern in the correspondence you resourced:
Dear Friend of GATA and Gold:
… The Treasury Department was surprisingly candid in that correspondence, asserting the U.S. Government's authority, in declared emergencies, to confiscate precious metals and to restrict ownership of mining shares -- and to confiscate and restrict every other financial asset as well. So perhaps precious metals investors shouldn't feel too paranoid. …
But of course lately the arrogance and imperiousness of the U.S. government have far exceeded even the paranoia of precious metals investors. Certainly capital controls may be imposed in the United States in the next currency crisis, and it's not far from capital controls to even more brutal interventions in the economy....
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Savers, don't try to withdraw the whole $8T at once!
"no rather normalization during my lifetime".....or anyone else's for that matter.
Even Janet Yellen is now saying that the war is unwinnable.
Deflationary Spiral -> All production shuts down including Oil and fresh water sources as margins dry up -> Riots at Developed Market borders -> Hyper-Inflation as demand outstrips supply.
not yet
Considering that's not very long, things could improve in the short term, enjoy it while you can, it was written.
we would look at all of our available tools
Like raising interest base rate, oh no thats not a tool, is it.
The truth is they can't raise the rates, they have painted(printed) themselves (and us with them) into a corner. These idiots have kept the interest rates at zero with the hope of creating an annual inflation rate of 2%. But it never happened, even though they keep telling us it is some where around that figure (which is utter bullshit). Instead we have gone into the nightmare they were trying to avoid all this time, deflation. Now there is no way out. If they jack our interest rate up even by .25% it will instantly push the US over the edge because the federal government has been spending all this free money, something like 18 trillion dollars worth (I think it is probably worse then they are telling us). What happened today tells me that they have admitted that they have completely failed with this experiment. Take a long hard look at all the currently failed economic countries, then multiply by ten, this will not end well.
And one more point, this experiment was a failure before it even started. The FED has got it in their head that the interest rates being raised or lowered would control an economy. This thinking is completely wrong, the interest rates are a trailing indicator. They are trying to have the tail wag the dog.
> No way will Americans stand for negative interest rates
they'll surely bend over for them though, assuming recent and past history provides any indication.
Isn't NIRP just like taking your money...so, instead or NIRP, they will just say....And it's gone.
(not too much of a stretch from NIRP... to gone.)
We haven't had free markets in decades.
KABOOM! You just haven't felt the heat from the flash or seen the blinding light...
That is still a ways away, but the only question then became, do the ashes fall to the right, or left?
We haven't had free markets in decades.
You would be wrong. The free market is everywhere people exchange of their own free will.
Voluntary transactions aren't the same as free markets.
"You would be wrong. The free market is everywhere people exchange of their own free will."
Which exist on micro-economic scales only. In anything macro, expecially if it involves credit and debt, forget it.
to the new darlin's point, it exists.
I'm not surprised about the "farmers' Markets" that are springing up in the northern Boston area every week. While every week they are doin' business. they do accept EBT/SNAP, except for some notable sellers.
Same-same in our tours through Maine, VT (Bernie-land!!!) and Live Cheap or Die NH farmers' markets. The poison is pervasive.
I lost all faith in you and free markets.
??? The Fed is the antithesis of free markets.
The entrepreneur is the capitalist; the dictator is not. Only in a world where progress has been achieved through capitalism is there room for discussing the myth of successful Marxism. Bernanke, Fischer and Yellen are not capitalists; Bernanke, Fischer and Yellen are central planners, the same as Stalin.
The rights of man--individual freedom and the opportunity to own property and develop the means of production, i.e., capitalism--exploded into the most successful society the world had ever seen. It is the greed lust of the founders of globalism that is destroying this economic miracle of individual freedom.
Socialism will fail in the United States, just as it failed in the Soviet Union. But the difference will be a faster failure in the US because there will be no capitalistic "America" to prolong it, as shared American enterprise prolonged the USSR.
Folks lost faith in "free markets" a long time ago. It's a myth. No, the FED has played the "Charlie Brown" card of promising rate hikes far too long. You can't lie to folks forever, they tend to not trust you.
"Congrats Janet Yellen.. I lost all faith in you and free markets."
I hope that's sarcasm. We haven't had anything even remotely resembling "free markets" for decades.
Nor have we had anything resembling sarcasm on ZH
The problem is that you gave her any faith in the first place. The lack of free markets has been around since before Yellen as well.
I never had faith in Yellen and my faith in free markets is not shaken because the markets that we have now are certainly not free ones.
Old Yeller claimed ZIRP creates jobs and LESSENS wealth gap. If she really means this we are more fucked than i thought.
Banks are a criminal enterprise, and as such, I have 0 sympathy for anyone idiotic enough to still have their money parked there.
Cash, bitcoin, metals ( that you have in hand / sunk in your favorite lake ), are your only real chance of hanging onto some semblance of your precious financial worth.
It is what it is.
Took you a long time to lose to cotton on.
Free markets? The only free part is that the bankster are free to loot and pillage at will.
One reason trump may be so appealing is that he doesn't piss on the publics back and tell them its raining with a bunch of cryptic doublespeak gobbllgobbledygookygook bullshit like this heifer... Nauseam infinatum
there is no place for faith, it is all working as intended. 100 year old global scam.
Yup, QE4 on the way.
in saecula saeculorum
QE never ended. Who is buying the 100 bill a month China is dumping? Not me.
We have a winner. Yellen said all maturing paper and the interest continues to be rolled over. So there is more QE paper out there today than there was a year ago.
Liabilities - Total Liabilities (Less Eliminations from Consolidation)
2015-09-16: 4,429,521 Millions of Dollars (+ see more)
Weekly, As of Wednesday, Not Seasonally Adjusted, WLTLECL,
TBTJ Banks are part of the team, so since they create money out of thin air and can borrow or rehypothicate against Treasuries why not buy FED US Treasuries.
Thats the real question. Anyone else smell smoke?
The funny part is, without China dumping, QE would be a big fat bomb dropped on shadow banking.
They're are going to skip QE4 and going straight to QE5
QE11 anyone ?
QE?
Dangit, the infinity symbol didn't come through.
... never mind, didn't work
This is more like QE3.11 we are in now. But I have heard the next QE release is suppose to be QE16 followed up by the highly anticipated next generation QE call QE_XP
Help me understand. The Fed loans money to banks at Zero Interest that it creates out of thin air. Does the Fed loan money to the government also at Zero percent? This money is to be loaned out and create debt which creates the entire chain reaction of an economy. How can the Fed loan something it doesn't have? They can just fabricate money as credit and supply pretty much as much as needed?Help me understand slowly. So the interest collected goes to the Fed? They just create money out of thin air and keep track of it on a balance sheet and interest is paid on something that was created from nothing? The Fed buys U.S. Treasury Bonds to create this so called money?
.
Part 2 So China bought US bonds for awhile. They have 1.5 Trillion held in US debt. We pay interest on that right? China is liquidating these bonds for cash from us? Who buys these treasuries back? The Fed? And if so, do they just pile it onto their balance sheet?
I realize these are basic questions to some, but I am learning and learning....but the above 2 scenarios just don't make sense. Nothing is backed by anything...and money and debt and credit is just magically created?
Thank you in advance to correct me if I don't get it all.
it is a scam as/like you describe that
is the prerogative of a "sovereign" power.
the international powers see themselves as
super sovereign and then make indebted
"sovereign" nations of the sovereigns.
the supreme parasites are devouring their
hosts and telling you, the devoured, that
is the meaning of your freedom and sovereignty.
.
they are very humorous people, very funny,
selling us our own demise and we buy it by
using their fake, fraud fiat, funny money.
it is the law; that we must screw and bankrupt each other
and ourselves to the benefit of the banksters and
the monetary authority. this is what passes for
a money system man, 1913-2015 and counting!
Yes.
Sorry. I thought it would be funny. It's not. But, if it is any consolation, you're on the right track.
The SHIFF is getting set to sail.
Have to say...the SHIFF is finally hitting the fan.
Let me be clear that negative interest rates was not something that we considered very seriously... Janet Yellen
Let me be clear, there is no Fed equity market put... William C. Dudley
So they considered it, just not "very seriously."
From February 22, 2010 (Five and a half years ago)
http://www.reuters.com/article/2010/02/22/usa-fed-yellen-idUSN2222725320...
http://www.forbes.com/sites/realspin/2013/11/21/millennials-who-want-to-...
The economy is so healthy, we might do negative interest rates!
So will anybody foolish enough to open any type of account at a bank have to have a minimum FAKO score and apply to be eligible to make deposits?
LOL! This is mental!
Not only that, YOU have to give the bank a toaster.
Ha! I can see it now...transaction fees for exceeding maximum allowable balance.
Somehow TBTF banks will figure out out to rehypothecate the same deposits into their own internal accounts and have depositors pay interest on that too.
NIRP is required for this inception to continue.
"But if the outlook were to change in a way that most of my colleagues and I do not expect" -> If you didn't expect it you wouldn't bother saying it.
"...we would look at all of our available tools" -> the only available tool you have is the NIRP, because you've even exhausted the ZIRP!!
"And that would be something that we would evaluate in that kind of context." -> Yes, we will have to go negative rates, because there is no other way.
There, translated it.
Janet will raise rates when she damn well feels like it ...
(stop bothering her)
(she's not feeling well)
After listenig to that person´s drivel, I have decided that I will become a manic depressive. We, that is the grey, normal majority, have no more say in this world.
You never did.
The sociopaths have been in control since the apes dropped out of the trees.
Communist Central Planning is wonderful, no?
I bet her cookies are delicious.