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Why The Fed Can't Stop The Next Market Crash
Submitted by Gregg Janke via TaoMacro.com,
In the last article I wrote I indicated why a stock market crash may be imminent. The reasons I gave included:
As early as January 2014 we reached a point of Sornette finite time singularity, indicating the market may have reached a point of instability consistent with bubble market tops.
The fact that market valuations were at an all-time high, second only to the extreme bubble peak of 1999-2000 era; when measured by more comprehensive metrics like market cap to GDP ratios.
Deflationary pressures mount. The overall economic trend has been one of deflation due to the malinvestment of the credit and debt buildup of the past decades. The velocity of money has been on a continuous decline for a while, and is now at record lows. It is not just oil that is crashing, but the entire commodity complex has fallen sharply in the last few years.
The Federal Reserve has stopped printing money, which was the impetus for the rise in the market. It’s a ways off the next phase transition of what its policy regime will need to look like in order to move sentiment back in the other direction.
In this piece I would like to expound on the last part of why the Fed will not be able to prevent the next crash. The recent debate surrounding Fed policy is whether or not they will start to “normalize” rates by beginning with a 25 basis point (0.25%) rate increase in the short term rate. I contend that this debate is somewhat moot, especially once the market has initialed a waterfall selloff.
When Janet Yellen decided to keep rates unchanged there was an initial jump in the markets, and then another sell off. Now apparently she is serious about raising rates in December. All this attention to a mere 25 basis points at best amounts to an additional potential trigger for the timing of the next market crash. More likely its real value is just more political theater from the Fed, which is really all they are good at.
The market is already over bought, overvalued, has started its decline, and is in an unstable state. The crash will happen regardless of the endless number of random reasons attributed to it triggers. The key question is, what will the Fed do when this happens? Certainly the discussion of the 25 basis points becomes entertainment at that point.
The Fed has truly run out of easy options. They are boxed in a set of circumstances of their making. They operate under the auspices that they are the sole institution with the knowledge and tools to navigate one crisis to the next; when in reality they are the creators of the crisis in the first place, by blowing up one bubble after the next.
The last two recessions have seen a dramatic diminishing return of the policy tools the Fed has used. There has been a complete phase transition from one recession to the next.
This chart shows the difference between the policy responses of the Fed Funds rate (Short term rate) after the Tech Bubble and the 2008 crisis.
The 2008 crisis required a much more aggressive change the in the Federal Funds Rate. It had to be brought down to zero and held there indefinably (Until this December when they raise it…no really)
This chart shows the difference in the monetary base, reference the Fed’s choice to introduce Quantitative Easing (QE) in response to the 2008 crisis.
The Red area indicating the money printing after the 2008 crisis was truly unprecedented in U.S. monetary history. It marks the end of world reserve currency credit induced expansion we have had for quite some time. Both policy changes of the rates and especially the blow up of the monetary base represent complete phase transitions of the tools implemented by the Fed. The increase in the monetary base with QE would have been quite unthinkable just a few years earlier. The debate of what the appropriate response to the two crises were very different; representative the diminishing return of Fed Policy tools.
This required exponential level of change in Fed policy is consistent with Austrian style economic theory which lets us understand that increasing levels of debt and money are needed to keep the game going just a little longer. Unfortunately for the Fed, the gig is up. While they struggle to find an appropriate time to introduce a 25 basis point increase in the short term rate, there awaits the next exponential transition into what will be required to stabilize the next crisis. A crisis that will be worse than 2008 because we are that much more in debt, and the Fed has already used up its easy fixes from the last crisis.
What will the next transition look like? If the previous regime of a rate reduction of 500 basis points was insufficient, even NIRP (Negative interest rates) will not work; as we would be talking about an additional few more basis points. Negative interest rates would also punish savers and those living off fixed income even further. This would be an awkward and likely unpopular policy to implement. It also would have a dubious effect on the economy, as we would descend into an even deeper liquidity trap.
The next policy regime will require even more quantitative easing, and perhaps alternative methods of the channel used for injection. I would expect a broader spectrum of securities purchases by the Fed to perhaps include coordination of a massive expansion in government fiscal stimulus. The last crisis resulted in the monetary base going from 800 billion to 4 trillion dollars. The next round of QE will require a multiple of that.
This next chart is not a prediction, but is illustrative of of the exponential nature of the next phase transition of Fed monetary policy. Just as what was ultimately done after the 2008 crisis would have been considered unheard of prior to the crisis, so too will the next policy implementation be drastically beyond the scope of what is currently being considered. Such is the nature of the exponential and discontinuous events that face us in a world manipulated by the Federal Reserve.
The Fed was late to prevent the popping of the last two bubbles, and it’s already too late to stop the popping of this one. The Fed is consistently behind on the timing of when to reintroduce stimulus because its only choice to deal with the bubble it’s created is let it crash, or blow it up even bigger which would result in an even harder landing. While the Fed ponders when the rate hike comes, our question is: When does QE4 start?
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I would really like to know what they will try this upcoming crash, i think we are very close....They have got nothing left....If they do QE4...we are in deep shit.
You are in deep shit regardless.
Negative Rates Next , along with QE - infinity ...
We're all Japan now
https://www.youtube.com/watch?v=mgekmOqCFTU
I think the E-Dollar is more rational decision for the powers that be instead of either QE4 or banning cash and negative rates.
Even though it’s always been the best fit for these crooks now that they are openly talking about it, it looks like a real possibility.
Ahh , The Powers That Be ....
.
.
.
To the Bankers, there is The Powers That Be.....
To The Government, there is The Powers That Be....
To The People, there is The Powers That Be.....
All entirely different entities depending upon your perspective on the situation...
One bunch of Crooks is another man's Law Enforcement ...... again , all down to Perspective ...
The US$ is already an E-Dollar ....
QE-infinity or Deflation BTChez... Choose your poison wisely ...
Roses are red, violets are blue,
The Fed ain't your friend, they gonna fuck you.
There was a young man from Boston, put student loans in a hedge, and he lost 'em.
He said with a grin, as he went all fucking in, " The Fed has both ends, that is awesome ! "
Yeah, the FED is all done preventing the crash.
But here's some news. China borrowed zillions to fund the posy 2008 "recovery". No one is stepping up this time.
You can stop BTFD. It's over.
I am currently in Japan - they seem to live much better than we do in teh US and are infinitely happier. We look like an expensive gulag in comparison. I haven't seen anyone homeless since I left the US. The quality of food (even in supermarkets) is superb. Everything seems to be cheaper here too.
According to that last chart, we'll still have 10+ more years to rearrainge the deck chairs after the next stage of QE.
The USS Titanic is looking more and more like the Black Pearl all the time. . .
Goto cash. If NIRP then buy gold. If QE then buy gold. If market crash, wait, then buy gold. Repeat.
Theres very little physical gold or silver left due to paper market price manipulations. Sorry, you'll be left stacking copper mesh and barbwire. Unless you don't believe in physical ownership, which may conflict with the reality of actual ownership.
Nothing can be done. I think Yellen passed out from sheer boredom she probably thought she'd have been in the bunker a year ago
Who says the Fed WANTS to stop the upcoming crash?
In reality it's the Fed who is about to crash, so stopping the crash is paramount to anything else the fed does, like raising rates.
The Fed (them and their elite circle) make money going up, money going down. It is not about how many people you affect, it's about knowing where the profits are. All the employment rate, inflation BS has nothing to do with them and their lifestyles. They can afford anything they want and they entertain us with their circus act. They do have to keep the US afloat as their business spins around it's existence.
They definitely want to prevent a crash. We owe them 4 trillion dollars. If not for that we would definitely see normalized rates, but what is a few bips when you might lose 4 T?
4 Trillion Zimbabwae I mean Us $
March 2016 starts QE4. NIRP begins shortly thereafter, or congruently.
Are your sources the same as Jim Willie, thinking that Tianjin was a fertilizer bomb? The expert not knowing a thing about explosives .. (creds from the AEC/IAEA)
https://app.box.com/s/hfgvcqg7gqh7i27at6sv53ywu87lwarp
By March '16 we better be well into a a REAL recovery, or it is Dark Ages for the next century. Think The Road with Aragorn from LOTR ..
Wrong, gvt defaults before then and take QE4 with it.
gvt defaulted in a 1971 pre-packaged bankruptcy. We have been living a long drawn-out re-org since.
I agree, that's where the bubble is.
Stocks are likely to go up for a Higher High, 2016? Money out of Bonds, into Equities.
Almost there....wave 5 down
http://tripstrading.com/2015/09/19/sp500-wave-4-up-finished-wave-5-down-...
http://tripstrading.com/2015/09/19/sp500-weekly-chart-2-or-5/
Short term I expect a bounce up, but Lower Lows next week(s).
http://tripstrading.com/2015/09/30/sp500-cfd-strategy-update-1h-chart/
All money and currencies will crash. Isnt Gold considered money?
Yes, but gold gets a mulligan in this case.
No!
Gold is a barbaric relic.
Only good for ballast when taking boating trips.
Just remember to wear your life jacket in case you have a boating accident.
...and if the world currencies don't all crash per se, it's a good possibility that the USDollar won't retain the world currency/petro-dollar status anymore...c'mon, those fed yahoos have been fabricating fantastical amounts of fiat monies, and like in most other collapsing economies, people go back to silver and gold as a common ground for trading.
Currency is not money in the traditional sense. You pay your taxes in currency or the "fiat du jour". You traditionally store wealth or invest/reinvest with money. For example, after the depression, we re-built the farm business with gold as a preferred asset for the new loans. During the good economic times we paid off the loans and bought more gold. So now we have plenty of revenue-generating real assets as well as real collateral to weather the coming storm.
same as it ever was...
Yes, BUT! ...gold has no counterparty risk...and it's a solid object unlike a promise or an obligation.
Correct, in addition, PMs remain the preferred collateral...
there's another word that seems to have been eliminated from banking...
When the big one hits I will not trade my shotgun shells and canned food for your useless bars. That my friend is the counter party risk.
Correct. Money went into hiding for a very long time during the dark ages. Barter was the way of the world and money was not preferred because having wealth (goods) was more important than money (antiwealth, or a claim on wealth which you do not have).
Got a match.....Many people dont think of the simple things anymore.
Money was used by the Lords who were the slaveowners of the serfs.
Go ahead...Choose to be a serf, a slave. (You already pay for the luxury of working for your current Lords....slave.)
Serfs bartered. Kings held the wealth.
Yes. It is good to be a Sovereign Ruler.
Looking forward to it. The Golden rule. Those with the Gold will make the rules.
Nothing changes except the actors.
Oh...Gold purchases armies...just like it did in the Dark Ages.
Thats true but then i will use my new shotgun to get my bars back
I disagree with the author on NIRP. The fed has shown that they don't really give a rat's ass about savers, nor about the affects of their policies on the eCONomy. The important thing to them is that they preserve the bankers and their system of raping the public. As far as QE4, there is plenty of student loan, car loan, and oil patch debt out there for them to monetize.
what are you doing for the next 5 years....how would you like to be president? This is the one issue that all the candidates should be talking about instead of abortion, drugs, etc. Deficit, Illegal immigration and cronyism-bankers should be the only topics. Jobs will come if cronyism is reined in. We really don't need all the profits to go to bankers and lawyers...we need some trust busting!
The "trust", i.e. the faith will be busted anyway.
as in "full faith and credit".
All fiat will die, period.
Global Weimar.
There is no avoiding it. The question is, how will this "evolved" species handle it? All those quadrillions of paper/digital promises will start seeking out real assets. It is in fact happening already.
In theory dead fiat (a gvt default) will have to be replaced with something, from what I understand it will be a, speeder new fiat, until the gold std is applied with truth in design, truth in politics and truth in advertizing as the principal componants, and accepted by law makers [should be a piece of cake in this case], an initial 25% at the register flat tax on everything except food will keep the spenders at bay until enough progress is achieved, at which point the tax is slowly reduced 5% per clip until it reaches 5%, (could take 30 years or so), then all is good to go as long as the queens tackle their challenge and the baton is passed to them. They say we are close this time, I hope they are right.
LMFAO!!! Bullshit. Self-sufficiency means you don't have to accept shit. Nothing has to do anything, period.
That is not how evolution works. Evolve or DIE motherfucker.
Oh yes you do sweetheart, the laws of nature and self sufficiency go hand in hand and trump evolution until evolution is old enough to do the right thing, there could be and has been plenty of dying to evolve to this point so why should that not continue, anyone in the wrong place at the wrong time will find themselves a victim of evolution, including cab drivers and such, where will you be at such time and place?
Oh yeah, there is no laughter in heaven, M.T.
Again, same as it ever was, chance (and God) help those that help themselves and their tribe...
Exactly. So many with their eyes wide shut NR...
Agreed, as long as God (father time) and evolution, are one and the same.
Well, my God is certainly smart enough to come up with evolution...
And mine smart enough to use evolution and the technology of man to eliminate the sinners, just not on this planet as of this moment. Yet that is the end goal, come hell or high water, the theory being we need more than 3 sane people and the 4th being the ever so important one(s) to grant the rest eternal life, without her there is no purpose or reason to continue to make a perfect planet, and so the whole thing would start all over again. It is easier for a camel to walk through the eye of a needle than it is for a rich man make it to heaven. Have a good night, i'm tired and sleepy and must retire now.
It could get bad enough, could get regional enough, that banks start eating their own when the SHTF. That is my dream, anyway.
after monetization they must
securitize the debt, no? there
the complete package of finantialization
resulting in monopolization of all,
the debt serfs. it will fail spectacularly
.
inevitable but , as is always wondered,
when? the difference between imminent and
inevitable, i saw that one too.
.
shake out on shake down street, coming up.
.
https://www.youtube.com/watch?v=8lCMUkqpI7o
Grateful Dead - Shakedown Street (Studio Version)
Perfectly timed for the Bush/Clinton shitshowdown. Imagine that.
QE 4 could be something the banks don't want.
They have served their clients enuff.
Now its every man for himself.
At some point the asymptote is reached and ALL realise that.
We are in the straits of Magellan and we are on Magellan's boat; the first humans on that road.
Once that HITS you and you don't where it leads to then its every boat for itself. Thats what happened to Magellan's expedition in reality.
The tech bubble cleared out all the day trader types. The housing bubble cleared out most retail except retirement and 401k money. The next one wipes out all the hedge funds. Then blankfein and dimon can have a celebrity death match for the game of throne
That is probably the most accurate assessment of "investing" I have heard in a while. So the question is, who do you have your money on? GS or JPM?
Goldman as they are the proving ground for high up govt jobs. Even Draghi was there. Goldman is the minor league for central bankers. Or is it Central bankers are the minor leagers for Goldman? I keep getting that revolving door mixed up.
Can we put a couple of hungry lions in the arena with them?
What makes you think FED is there to stop markets crashing?
Its not their mandate, but isnt that what QE 2 and 3 were all about? Thier attempt at the wealth effect has failed,
qe starts ....FUCK YOU NOW!!!
The answer is very very very simple.
One need to know a bit of European history to know what and how they will fix it.
The gold and silver indicators which where money back then are the proof.
1900's to 1930"s: money devaluations of 1000% in a decade.
1940's to 1950's: another money devaluation of 1000% and more in the next decade.
It didn't take a decade to jump, it happened in 1 week. But after that it remained stable for a decade.
I'm to tired to show all the details but that is how it will work out.
The first time caused a hughe crisis, the second one was masked by WOII aftershocks.
The proof is in the numismatic silver coins. The weigt was cut dramaticly, and a 5 became a 50. And then they cut the weigt again and 50 became 100 and 500. And it is also visible on the bills.
And for the silver bulls and the gold bulls, there's a very interesting fact to think about.
The money was devalued because all the gold and silver flowed out. The question is where it all went to and where it is now. Believe me, that silver isn't gone into electronics, it still exists somewhere in dark hidden warehouses.
But what did happen is dat the value of silver remained the same, the value of the currency dropped 2000% and more. So you silver was worth 20 times more even if the value was still the same.
That's where "PRESERVATION OF WEALTH" comes from.
Now, it was interesting to keep you money in silver because with all the inflation, a serious deflation wave hit europe and crashed the economy for 40 years. Money and credit was scarce. And those with money, where able to invest cheaply and become very rich with anual returns over 30 to 40% on their money.
I must be missing something here. My 1878 morgan silver dollar weighs the same as my 1935 peace dollar and has the exact same melt value. Not sure where the weight was cut to cause the devaluation. Unless I am missing something.
The face value of the coin was raised which represents a decrease in the weight of the coin.
The face value of the coin was raised which represents a decrease in the weight of the coin...the weight of the coin remains unchanged.
Morgan dollar
Peace dollar
Which one has more face value?
Exponential equations are a real motherfucker.
We will get deflation eventually, unfortunately, mostly a population deflation.
War.
Unless you are talking about nuclear war, I seriously doubt you are talkinig about the same magnitude of population shrinkage that he is. Think malnutrition, disease and outright starvation on an unimaginable scale.
The 4 horses of the apocalypse in a tag team roundup.
Yes, a real motherfucker. People bitch about the debt nearly doubling under Obama. What they don't understand is that the doubling every ~8 years is built into the fucking system. On average, every 2 term president doubles the debt because the debt MUST continually increase to service the previous debts. If the private sector won't increase debt, the government will take up the slack. This is the source of the growth-is-good meme. And the really shitty thing about exponential functions? You don't notice that they're going to be a problem until all of a sudden, they're a big fucking problem that "nobody could have seen coming."
"Negative interest rates would also punish savers and those living off fixed income even further. This would be an awkward and likely unpopular policy to implement"
Well "punishing savers" is the very last thing the un-fed cares adout. The serfs can go straight to hell and burn in their thought process.
Get ready it's gonna be QE-4 soon enough!
"The Fed is consistently behind on the timing of when to reintroduce stimulus because its only choice to deal with the bubble it’s created is let it crash, or blow it up even bigger which would result in an even harder landing"
"nobody wanted to! we were all making too much money..." - hank paulson
Monetary base in early 2008, pre-crisis: $800B. Gold price: $834/oz.
Post QE montary base: $4,000B. Gold price: $1,126/oz. Makes sense to me! /sarc
Meanwhile, housing is now unaffordable to the middle class in every single major city of america, we're seeing massive increases in health insurance, you're better off financially working minimum wages jobs the rest of your life than going to college due to the debt burden, the list goes on. Their mispricing of risk has fucked anything that money touches.
I've said it before, I wish no harm to come to the average person, but dear god the collapse and absolute roasting of these financial engineering motherfuckers can't happen soon enough. I really hope to wake up some day and hear about guitly verdicts against Fed presidents or that a marine expeditionary team has raided a compound in Uruguay to bring some sorry-assed banker home for trial. Damn every person in the chain that helped this come to be to hell.
Unaffordable ?, you can pick up a nyc 1200 square foot condo by Central Park for only 1,500,000
You are correct. In fact, in our current monetary system, bankers and financiers are nothing but overcompensated middlemen stuck between the printer/computer (where money is now created) and the producer/consumer in the real economy.
Execute the middlemen already!!!
people will do anything to maintain the status quo, working for scraps. They know nothing else.
the real question is- will the future look more like "idiocracy" or "1984"
If you ask me the future is already here and it looks like a cross between idiocracy and 1984.
Not to take the banker's side here but isn't "the system" more to blame? If life hands you lemons, make and sell lemonade...what if life hands you debt based fiat currency? Fuck it, you sell debt!
Replace the system with a sound money system. Sales will shift from "debt for sale" to "tangible products for sale" and then you can start talking about capitalism again.
Bankers replaced the existing sound money system with the broken fiat system. They created this broken fucking system, so they deserve every bit of blame for it's faults when it blows up.
the author isn't lying about M2V. i had to look because i keep reading that statement. one moar fred:
https://research.stlouisfed.org/fred2/series/M2V/
may i just say hoary fuck a 1.5.
How this is measured is also flawed. there is a serious reason why they want to ban cash transactions and PMs. A lot of money has been going underground at an ever increasing rate.
Remember, when a currency dies, the velocity is fucking ZERO!!!!!
Look, people know when they are in fact being bullshitted, and they respond accordingly.
with $10T - $15T on deposit at commercial banks depending on who you ask you can see why they want to nirp it. then the bank bonuses will go for hookers and blow raising the velocity to hitherto unseen heights. nirp can fix this. /s
You know what I find amazing is the fact that the Fed could raise interest rates while not raising the interest rate paid on reserves.
The fact that nobody talks about this just underscores how corrupt/criminal it all is.
There's plenty of funds who are liquidating right now from their portfolio's.
In almost every stock, there are hughe selling blocks.
Tuesday the 22nd...
Tuesday the 22nd...
If the Fed finds itself having to do a QE4 isn't that basically the same thing as driving your car, your brakes give out and you have no other recourse then to open the door and drag your foot along the roadway at 70mph? Just saying.
In your model the correct analogy would be "no other recourse but to step on the gas" - fixed.
Funny story from when I was a teenager. Well, it wasn't funny when it happened, but I learned a lesson and its funny now:
It was about midnight and I was on a road with no traffic with a buddy. I had the spedometer buried, and then I remembered that there was a curve coming up in the road, so I let off the gas and started to slow down. I should have been mashing on the breaks, because I had miscalculated, and the curve was closer than I had thought. The only thing that could do when it was in the headlights was to try to make the curve. I remember the tires squealing louder and louder until they suddenly broke loose, and I was in a spin. Every time I spun around, there was this cinderblock wall that kept on getting closer and closer. It turns out that the friction from the spinning slowed me down enough that I actually cut across the inside of the curve, and when I finally came to a stop, I was in same lane that I had departed from, facing the right direction. And I'm sure there were indentations in the door handle in the passenger's seat. I don't know why the seats weren't brown.
I learned to not drive so fast in the first place, especially with the flat spots on the tires afterwards. The Fed would have taken its survival as a sign that more of the same behavior will not be met with disaster.
Intelligent people learn from their indiscretions. The Fed? Not so much...
Going 70 dragging your feet out the door is what they are doing now, QE4 is heading toward a bridge and mashing the gas with a 200 shot of nitrous.
brakes? we don't need no steenking brakes.
Dont Worry. This is outright fear mongering. The Fed was able to contain the effects of the 2008 market crash. The very same folks who are predicting imminent doom predicted it last time. Look all around you - corporate profits are at an all time high, unemployment is under 6%, banks have successfully passed their stress tests. The "worst economic crisis since the depression" has had virtually no effect on the economy. Everything is awesome!
Based on the facts postulating that the Fed will be unable to stop the next market crash is simply preposterous! Markets go up and down, thats why you need a professional advisor to help you to allocate funds into a portfolio according to your risk tolerance and timeline. Let a professional manage your investments and Dont Worry. Let the experts at the Fed manage the economy and Dont Worry.
Do your duty as a consumer in the economy, and as Geo Bush said in 2001, "Go Shopping". Vote with your dollars - upgrade to an iPhone 6, lease a new Chevy Pickup, buy a bigger TV. The new 4K Ultra HDs have a great picture and football season is right around the corner.
Go on - you deserve it.
I lost it at "football season is right around the corner"
That was some good satire.
Thanks for the reminder, it will last me to Nightly Business Report.
"The Fed was late to prevent the popping of the last two bubbles, and it’s already too late to stop the popping of this one."
ZERO bubbles can be prevented from popping. The FED was not too late in preventing the last two bubbles from popping, it was too late in preventing the bubbles from forming. A bubble that does not form, cannot be popped.
the fed and their fiat is the suds
of the bubble machine, it is all they
do, period. that is the purpose of
the fed, stop. that is their "monetary"
fantasy in their own nut shell. all they
need is more green initiates, believers.
"What will the next transition look like? If the previous regime of a rate reduction of 500 basis points was insufficient, even NIRP (Negative interest rates) will not work; as we would be talking about an additional few more basis points. Negative interest rates would also punish savers and those living off fixed income even further.
This would be an awkward and likely unpopular policy to implement. It also would have a dubious effect on the economy, as we would descend into an even deeper liquidity trap."
But they don't care. The FED's constituents are bankers, not the other 330 million people in the country.
Jamie Dimon is a billionaire. That is what really matters to the FED.
I think Wall Street loves articles like this...when the stock market crashes we will need some scapegoats...with everyone looking at the FED...I think they are going to be a top contender...its like lined up dominoes..only one needs to topple and rest follow..of course that one domino is going to be the FED...I am so sorry Janet...Alan and Ben left you with a closet full of skeletons..but using your gifted, charming ways..you might be able to use them to your advantage..you know Halloween is just around the corner...
You gotta love the trajectory of green, that follows the trajectory of red, that not one in a million could have thought was coming before TARP/QE . . . Zimbabwe, bitchez.
The last two recessions have seen a dramatic diminishing return of the policy tools the Fed has used. There has been a complete phase transition from one recession to the next."
That's because it's always been a middle class income problem, and NOT a banking, liquidity, or credit problem. We are through, and are just waiting on the inevitable failure of the warping life support.
While I hope a great many things change in the structure of our economy, like the elimination of central banks like the Fed, post-crash, I could almost sympathize with them (I know, I know) in that they had NO chance to reverse what western corporate outsourcing caused for the last several decades.
Bad business behavior led to terminal dystopia, and asking anyone to reverse permanent damage like that, so late into the practice, was hopeless from the start.
But...I DO fault them for persisting with CLEARLY deleterious policy when they could see it wasn't working. To continue to deny our fate, AND it's DIRECT cause, not only renders them harmful in their own right, but culpable in displaying the same oblivious arrogance western corporations have historically displayed in denying the severe harm THEY have caused.
Government should have penalized the outsourcing movement long ago, instead of foster it with free trade garbage that couldn't possibly have succeeded.
It is western corporate culture that must be radically revised, but it is also government inaction, and Fed policy that must be punished, and eliminated, respectively. If we are a free people, and if we wish to remain a free people, western corporate culture, AS IT EXISTS TODAY, MUST be rooted out, the players removed, and new business models/structures created from the ground up. It is high time for radical change, or NEXT time, that's on US.
We cannot be duped into allowing this period to pass without the necessary action, because doing so, time and time again, does not work.
The author's projected Fed stimulus increase ain't gonna happen; the public has had enough. This is going nowhere but bad, and people know it.
m
You should be questioning why we even have corporations in the first place. If somebody doesn't have skin in the game, they're a lot more likely to make shitty decisions for their own benefit.
Corporations are people. What you're saying is racist and I am offended
Real question would be why is the fed and media working to trigger the next market crash.
demographics and math , there a bitch.
This is horrible.
The presumption then is that a command economy is okay if only the Fed could time it correctly?
Grateful Dead - Fire On The Mountain (Studio Version)
https://www.youtube.com/watch?v=YAhEi7W1ib0
Hadn't heard that in a while. Took me a few bars to remember that it wasn't this one:
https://youtu.be/s5FUm3buktA
A classic (and apropos) video of Devo's - It's a Beautiful World . . . .
https://www.youtube.com/watch?v=uGEWksYA5Ys
Devo was definitely way ahead of their time when this was produced in the mid-1980's.
Abolish the FRS! Drop dead, Fred! I mean, FED!
To paraphrase an old chesnut? "ALWAYS wrong, never in doubt." That's the FED at "work".
Don't need no stinkin Helicopters. Don't need no stimulus spending. Just stop vacuuming money to the IRS. for a while., or better yet, take the opportunity and kill it forever.
Actually,it would be impossible for the Fed to announce QE-4,since we are now up to QE-7,and counting..
One more day left in the magical, mystical month of September or Sepshimitah or whatever it is. So far nothing much happened. If anything is going to happen, it better hurry up. I didn't buy into the hype as much as some, but I admit I let myself have the tiniest little bit of hope there might be something to it all. To me, *any* change would be better. I even let that tiny bit of hope influence some important financial decisions, and now I regret it.
I wouldn't sell your ticket just yet.
Actually, a lot of things are happening. Most importantly, central banks are starting to admit their lack of power to alter the course of events, which in turn erodes the mindless consensus to stick things out regardless.
Rome wasn't burnt in a day.
The Fed should be abolished on the grounds that:
It is privately owned and therefore the owners know what the Fed will do and when they will do it so THIS IS INSIDER TRADING!
Abolish the FED!