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Trump Says Yellen Keeping Rates Low To Protect Obama
Make no mistake, what you saw with the Fed’s September meeting and subsequent (in)decision was an FOMC that simply froze like a deer in headlights. As we’ve documented exhaustively, there are no right answers and Janet Yellen only made it worse by, in Deutsche Bank’s words, “removing the fourth wall” and admitting that the committee is reflexive.
The Fed cannot hike for fear that a soaring dollar will accelerate EM outflows and plunge the world’s most important emerging economies into chaos.
But remaining on hold risks precipitating the very same outcome because by missing the window for liftoff, the FOMC has fostered an environment in which all EMs are constantly on their toes with no idea when or even if the “symbolic” 25bps hike will ever come. The attendant uncertainty engenders the very same capital outflows as a hike might.
And then there are of course considerations about what the FOMC is telegraphing about the risks to the US economy. September’s “clean relent” telegraphed a dour outlook and that, in turn, weighed on domestic risk (apparently bad news is bad news again). But hiking and thereby conveying a positive outlook for the US economy could well cause the dollar to soar (because if the ECB and BoJ are still easing, the policy divergence would be exacerbated in a liftoff scenario, giving the USD a strong tailwind) which would be a negative for some US corporates and could well weigh on the economy going forward.
So this is the impossible scenario the Fed finds itself in and it’s all complicated by the fact that we are heading into an election year. For his part, Donald Trump believes Yellen is deliberately delaying liftoff not because she is simply confused as to what to do, but because she’s trying to help the Obama administration. Here’s more via Bloomberg:
According to Donald Trump, Janet Yellen's decision to delay hiking interest rates is motivated by politics.
“This is a political thing, keeping these interest rates at this level,” Trump, the billionaire Republican presidential candidate, said in a Wednesday interview with Bloomberg Television's Stephanie Ruhle. “Janet Yellen for political reasons is keeping interest rates so low that the next guy or person who takes over as president could have a real problem.”
That problem spurred by raising rates, Trump argued, could be “a recession or worse.”
On the other hand, Trump faulted the Federal Reserve for not having acted sooner. “Yellen is keeping rates too low, too long,” Trump said.
Here are some other highlights from the interview:
“Yellen is doing this with the blessing of the President because he doesn’t want to have a recession - or worse- in his administration.”
“I’m a developer, I’m not complaining from my own standpoint, I’m just saying that at some point, you have to raise interest rates, you pay nothing. They are trying to put the recession - and it could be a beauty into the next administration.”
Now, it's probably safe to say that Trump doesn't understand just how convoluted the Fed's reaction function has become at this point, which means he's likely predisposed to thinking that the FOMC's decision making is more political than it actually is. That's not to suggest that the Fed is truly "independent" per se, it's just to say that at this point, Obama's legacy is probably not particularly high on the list of things that keep Janet Yellen up at night.
That said, there are very real questions as to whether the Fed will risk raising rates in an election year and on that note, we'll leave you with some thoughts from BofAML as presented here first earlier this month.
Via BofAML's US Economics Team,
Experience and independence both say “yes”
A popular view among some market participants is that the Fed is unlikely to hike in a presidential election year. While many economic and market factors may influence when and how often the Fed hikes in the upcoming months, we do not expect the timing of US elections to play any meaningful role in the Fed’s policy deliberations. Neither historical experience during the past several hiking cycles, nor the Fed’s own desire for policy independence, suggests this will act as any constraint on the hiking cycle. Rather, we expect the Fed to gradually tighten policy in a data dependent manner during 2016 — regardless of how the political winds may blow.
Recent history: most hikes during election years
Historically, presidential election years have not precluded policy tightening by the Fed. Of the last five Fed hiking cycles, four either began during or continued into an election year. Two of these — 1988 and 2004 — started in an election year, some months before Election Day (in March and June, respectively). Two others — 1983 and 1999 — began the year before an election, with hikes continuing well into the following year. Both these hiking cycles stopped before Election Day (in August and May, respectively), perhaps fueling speculation about the Fed’s motives. But the Fed did not resume hiking once Election Day passed — in contrast to what one should expect if the Fed were temporarily holding back hikes around an election. Rather, each of these tightening cycles concluded as the Fed returned rates to a more neutral stance.
Guarded independence
Is past performance a good predictor of future policy? Given how strongly independence is held at the Fed, we suspect it is. Numerous studies show that politically independent central banks deliver the best inflation and growth outcomes, and Fed officials know that even the perception of political influence can undermine their best intentions. Rather than trying to avoid being news by keeping policy unchanged in an election year, the best strategy would be to move in a very deliberate, well-communicated and datadependent way — one that not only has nothing to do with the political cycle, but wouldn’t even give that impression. Indeed, if the Fed really wanted to minimize political pressure today, it is not at all obvious if the better choice would be to hike to appease its most vocal Congressional critics or to stand pat. Any action or inaction is bound to upset (at least) one party — so why even try?
Unlikely variations on an unlikely theme
Finally, the view that the Fed cannot or will not hike in an election year yields some unlikely implications for monetary policy. One is that the Fed has to get going very soon — and perhaps somewhat aggressively front-load rate hikes — in anticipation of sitting on its hands for some time. In contrast, Fed officials have warned that they don’t want to hike prematurely, and they have emphasized both a data dependent and gradual approach to normalizing policy. Another variation is that if the Fed delays this year, they won’t be able to lift off for nearly another year — and thereby put policy significantly “behind the curve.” But it’s hard to believe the Fed would choose to wait that long and potentially let inflation get out of control because of politics; recent speeches note the risks of hiking too late. In the end, while several factors could potentially delay Fed rate hikes, we very much doubt next year’s presidential election will be one of them.
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Those with their brain's on were talking about this exact scenario 2 years ago (at least).
Yes and the stock market was plunging fiercely exactly during ballot casting time in 2008 when outsider Obama needed swing voters to overcome the incumbent party.
Yep, Trump's right! Yellen's an Obozo sycophant just like his ass-kissing MSM.
good one zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz
The Donald should really spend some quality time on ZH and expand his horizons.
Making a connection between Yellen and Obama on this story is like thinking blaming a retarded mollusk will explain why the tsunami plunge avoidance team is biding its time until that time is just right...or just completely unavoidable
Trumpie should also be happy, because low interest rates protect real estate 'empires' like his.
I'd be VERY curious to see what would be left of his so-called real estate 'empire' if interest rates were at 3-5%.
I bet he would be bankrupt...again!
Trumpie desperately needs ZIRP, and what better way to guarantee that then by going into politics? (hint hint, wink wink, nod nod)
But of course Americans and most ZH-ers are stupid and will fall for his lies and cheap rhetoric, just like they fell for "change you can believe in," "get amazing abs in just 30 days or your money back" and "read my lips, no new taxes."
Heck, Karl Denninger and that idiot Bill-Flanders-Still love Trumpie as well, so 'nuf said... (even RT has quietly stopped inviting Karl Denninger as 'talking head' on their shows, hehehe)
You believe that Trump cares more about $$$ than his ego, legacy, or America and that everything he says is an elaborate lie?
I kind of doubt that.
He cares about both. He needs money in order to inflate his ego/legacy.
America probably comes last, politics is just a vehicle...
All of you cocksucking "liberal" idiot shits think everyone is just like you. They are not.
Like the socialist jew media is going to allow a recession to start during the Obama depression....
The Fed isn't doing this because Obama is in the WH. They are doing it because the Fed is supporting the government's ability to service it's debt through suppressed interest rates. The percentage of the Feral Government's budget supporting interest on the debt is roughly the same as it was when Ronald Reagan was in the WH. Back then the debt was much smaller and interest rates were double digits. Now the debt is much larger but interest rates are near zero. Raise the average interest rate on government debt by 1% and they'll have to slash-and-burn a lot of discretionary spending. Raise them by 2% and just meeting "entitlement" payments becomes problematic.
This is why we (and most other developed/Western countries that are all in the same boat) are becoming more like Japan every passing day.
But the endgame is still, as it is always, debt expansion to facilitate ownership change n'est-ce pas?
The candy from strangers appears to be just so much sweeter this time....
Yup, people fall for Trump's cheap rhetoric like turkeys voting for Thanksgiving. In the end he's just another I-need-big-banks-and-ZIRP-to-fund-my-real-estate-empire Wall Street insider, but people are too blind to see that.
You take stupidity to a whole new level.....
Do you ever post anything other than Lying and Name calling? Link?
Winner Winner Chicken Dinner!
true, but we didn't have zero rates until after obola got into office and started giving away the farm with every free shit program going through the roof and student loans being taken over by the feral gubmint. all the tbtf corporate monstrocities got even more than that.
The government is Obama. He can hire and fire the Chairman "at will".
If the GOP wins you can be damned sure the Fed will raise rates and let everything crash to pin it all on the Republicans come 2017.
If the GOP wins you can be damned sure the Fed will raise rates and let everything crash to pin it all on the Republicans come 2017.
deleted
I'm starting to think that what the FED will do is simply print a trillion dollars. No purchase of anything, no bonds, stocks or loans involved. Just a magical appearance of another trillion. What have they got left?
The second trillion would be a day later.
Fuck China, Japan and others that hold our debt, let's add another two trillion within days and pay it direct to the government to see what they do with it. They're the so-called policy experts, and 'national leaders' (HA!)
“GOP is not a political party anymore, it’s a radical insurgency.” Chomsky
Well, it's hard to tell if that was an insult of the GOP by Chomsky or a compliment given this administration was arming ISIS, the indiscriminate droning of nations we are not at war with and the current national debt along with unfunded liabilities.
Could you elaborate? ;-)
Sure. My pleasure:
You can tell that even by the votes. I mean, any issue of any complexity is going to have some diversity of opinion. But when you get a unanimous vote to kill the Iranian deal or the Affordable Care Act or whatever the next thing may be, you know you’re not dealing with a political party.
It is important to bear in mind that the Republicans have long abandoned the pretense of functioning as a normal parliamentary party. Rather, they have become a “radical insurgency” that scarcely seeks to participate in normal parliamentary politics, as observed by the respected conservative political commentator Norman Ornstein of the right-wing American Enterprise Institute.
Since Ronald Reagan, the leadership has plunged so far into the pockets of the very rich and the corporate sector that they can attract votes only by mobilizing sectors of the population that have not previously been an organized political force, among them extremist evangelical Christians, now probably the majority of Republican voters; remnants of the former slave-holding States; nativists who are terrified that “they” are taking our white Christian Anglo-Saxon country away from us; and others who turn the Republican primaries into spectacles remote from the mainstream of modern society—though not the mainstream of the most powerful country in world history.
http://www.salon.com/2015/09/23/noam_chomsky_right_wing_extremism_from_trump_may_be_comic_relief_but_its_not_that_different_from_the_mainstream/
You do realize "slave holding states" also included Brazil right? And Hillary! (gasp!) is ass deep in the "deep pockets" of whoever pays her the most...right? And Christianity has NOTHING to do with skin color or governmental systems...right?
So if you want to pin the underwhelming success of the Afordable Care Act on the Dems be my guest. As for the Iran Deal, bah, it took a heap of money and deals to keep the dual citizen congress peep Jews on board so if that is any indication of "Parliamentary Polyrazzmataz bullshit session" you go El Guapo.
The underwhelming success of ObamaCare is a gross understatement, no doubt...of the 23 state exchanges created under that ObamaNation governmental mandate 21 are losing money, that in itself is a conflicting statement I suppose when one considers they are supposed to be "non-profit"...but of course by New And Improved! bizzaro world old accounting standards that doesn't matter anymore...suffice to say one third have shut down completely stranding "the folks".
But fear not, fresh on the heels of the blinding success of the Iran "deal" he's making noises about another "deal" with the certifiable nutcase who runs North Korea.
What could possibly go wrong? ;-)
They don't call them Brazil Nuts for nothing.
Sorry. Had to step outside.
Brazil did have more slaves than America. Way more. More than 10 times than America. But, Brazil is not the topic. Trump/Republicans are.
Unfortunately, some don't read into the context. Chomsky is very critical of the democrats and academia. But, again, not the topic here. Trump/Republicans are.
Now, the topic is NOT Christianity, because again, Americans have absolutely, unequivocally NO clue what Christianity is all about. However, American Christians do know, unnoticed to most of them, because they are so naive, that they are the biggest, and hypocritical fascists.
By Chris Hedges: Twenty-five years ago, when Pat Robertson and other radio and televangelists first spoke of the United States becoming a Christian nation that would build a global Christian empire, it was hard to take such hyperbolic rhetoric seriously. Today, such language no longer sounds like hyperbole but poses, instead, a very real threat to our freedom and our way of life.
… members of Congress who have earned between 80 and 100 percent approval ratings from the three most influential Christian Right advocacy groups as one of many signs that the movement is burrowing deep inside the American government to subvert it. The movement's call to dismantle the wall between church and state and the intolerance it preaches against all who do not conform to its warped vision of a Christian America are pumped into tens of millions of American homes through Christian television and radio stations, as well as reinforced through the curriculum in Christian schools.
http://www.amazon.com/gp/product/0743284461?keywords=chris%20hedges&qid=1445208661&ref_=sr_1_8&s=books&sr=1-8
I just noticed you changed your avatar.
I've always thought of you as ZH's crazy Aunt in the attic.
Brazil is about 70% trannies so of course they are fucked. They love it
Our War Criminal Congress approval rating is around 8%, below used car dealers and fuckin' lawyers.
How did that transform to 80 to 100 percent approval from ANY advocacy group?
Source your info, please.
>>Our War Criminal Congress approval rating is around 8%, below used car dealers and fuckin' lawyers.
and its a REPUBLICAN CONgress, too!
You are completely deluded. Chomsky is a CIA stooge. Pat Robertson is a Masonic plant. Your lovely country was raped and pillaged by the Vatican, not Christians. And neocon pedophile warmongers are about as far from Jesus Christ as east is from west.
Silver For The People
Salon? ROFL.
So, check this link, instead:
http://chomsky.info/20150820-2/
It sounds like your opinion of the mainstream mimics the view of the main stream media's. So any group which does not agree with the current status is part of the "radical insurgency"? Interesting. At least we know what your views are grounded on. So what future do you want? One which is similar to what we have, one that continues on the path we are taking, or one which reverts back to our where we came from. When I refer to "where we came from" I am thinking of the thought process of all free men in the time of July 4th 1776.
free men in the time of July 4th 1776?
Go and ask a black person about free men in 1776.
They will die of laughing so hard about your statement.
Crispus Attucks, first to die in the Revolution, was a freed black man.
Shut the fuck up.
https://en.wikipedia.org/wiki/Crispus_Attucks
The fact that our black people are so poorly educated is because the democrats created a new plantation.
And, no, I'm not a republican, anymore, not since the treatment of Ron Paul.
fat fingered
...and completely misguided, ignorant and used. Less than 1::7 odds any black person in America today had American slaves as ancestors. Slaves were treated far better than serfs. After freeing themselves the serfs freed the slaves and don't you forget it, asshat.
https://en.wikipedia.org/wiki/Bacon's_Rebellion
https://en.wikipedia.org/wiki/Culpeper's_Rebellion
https://en.wikipedia.org/wiki/Gove's_Rebellion
https://en.wikipedia.org/wiki/1689_Boston_revolt
https://en.wikipedia.org/wiki/Leisler's_Rebellion
https://en.wikipedia.org/wiki/Protestant_Revolution_(Maryland)
Aw, shit. You can blow me now.
"when you get a unanimous vote to kill the Iranian deal or the Affordable Care Act or whatever the next thing may be, you know you’re not dealing with a political party"
None of those bills EVER had anything close to popular support. Back when the Rs at least pretended to have a spine, I call that "doing their job". Now, of course, they are falling in line and supporting everything the President says with only token (verbal) disagrement. Which should meet with your approval of how an opposition party should act.
You can get public support for anything depended in how your ‘phrase’ the question.
I find very unlikely that most Americans are not support of health care.
Don't confuse health care with the ACA/Obamacare. The latter is nothing more than a means of forcing citizens to pay private companies for a service you pay monthly premiums, and then pay even higher deductibles if you dare actually use the service. Oh, and if you opt out, you pay a "tax" to the gov (any doubt that is what they're hoping for? Free taxation stream paired with no services!). If a Repub POTUS had pushed this through a Repub congress, it would be universally hailed as a corporate scheme to enrich the healthcare industry. And that critique would be right. The only "benefit" is the party that pushed it can snag votes from the mortards who think it is free (because someone else has paid for it). Even that has consequences...remember the story about the hourly-wage earners complaining the $15-an hour minimum wage pushed them over the threshold for subsidies, and begged for less hours?
Not to mention the 60% increase in premiums that is coming. ObozzoCare was designed to fail so they would bring in a single payer plan (Government) that could determine who gets what/when/where/how and why.
In the meantime, Government Approved Doctors get to wear spiffy uniforms with little symbols on their sleeves, and report all interactions with you to the bureaucracy that is determined to minimize the cost to government in any form possible. (Actually written into ObamaCare, I read it the night it was released. Did not go through the Social Security/Medicare side of it because I wasn't interested (at the time, though it'll probably haunt me as the worst of the whole fucking thing).)
60%? Yore raycess.... Why do you want to deny Illegal Aliens their constituutional right to FREE SHIT?
dumbass. plese tell us how the democrats are any different? they are two sides of the same bum penny.
SAME? You need to go get a dictionary......
Iranian deal + demonization of Christians as remnants of slave-holding [GOP] States /tell
Is this what passes as a Cyber-Bolshevik these days? You're going to have to try less hard
https://www.youtube.com/watch?v=PqI-28meTZ8
Indeed /tell
The primary slaveholding states were democrat controlled. Our first facist President, Lincoln, could give a shit about slavery, but used it to make national government supreme over the individual states. And Lincoln was the first Repubican president.
oh pullleease stop with the "Demonizing Christians" bullshit-youre breaking my heart-every time one of them is caught with a 5 year old girl in their bed, or a man in a bathroom stall, they demonize themselves for FREE!
when you get unanimous votes you know you ARE dealing with a political party.
you know you ARENT dealing with a collection of independent thinkers. Yes, like all of the Democrats unanimously rubberstamping the White House agenda. It is ALL about the party.
Since no one else has said it I will, Fuck'en retard...
Ditto.
Class warfare mantra is working.
Rediculous it is the recognition of the advancement of the "Progressive Agenda" over the last 100 years. It is an incremental advance toward Socialism or neo-communism. You from Brazil ought to recognize this today easily as your own Socialist utopia Brazil is heading into the economic toilet with people trying to impeach your idiotic leader who countenances the same verbage and message as these Progressive morons in this country.
The demise of all economic theories (Brazil, US, China, and so on) will take place in the context of limits to growth (finite planet), declining oil, and an aging population while there is peak in population growth.
Most Brazilians live with very little. I don’t worry about them.
The ones living in the high-rises will become the real danger.
Ha!
Inane. The GOP seems to hate Trump, don't they? As do the dems. Both are controlled by elites and hate somone that threatens their control.
We probably agree on a lot of points, but downvote for your first paragraph and for the fact that you cited salon dot fucking com.
For God's sake, have some self respect.
Those with their brains on know the difference between "brain's" and "brains".
True. It's also bigger than just that. But Obama is being protected.
Not sure if this is your point, but I think what is being protected is the oligarch controlled governmental system itself. Obama happens to be the figurehead at the moment. I like a lot of what Trump says, and I could give him a pass on this one because his point is technically correct (though it would be the same if anyone else was in office of either Team), but I think he is missing the bigger picture.
"Not sure if this is your point, but I think what is being protected is the oligarch controlled governmental system itself."
And yet, you seem to believe oligarchs (that control your system) have our best interests at heart when they speak of "gun control"?
You really need to make up your mind on which side of the fence you're gonna be standing on when TSHTF ;-)
No, I think oligarchs have their best interests at heart when they speak of gun control. I also think you have the oligarchs' best interest at heart when you advocate against collective action against them and suggest we engage in a societal free for all where they would take your guns and enslave you without pretending to care if you disagree.
"I also think you have the oligarchs' best interest at heart when you advocate against collective action against them..."
And I have done this when...exactly...because I disagree with you're idea of "collective action" you think >>>we<<< have taken none?...lol...you won't like my idea of "collective action" anymore than I like yours.
"...and suggest we engage in a societal free for all where they would take your guns and enslave you without pretending to care if you disagree."
Tell me again how they can enslave dead men. That's the ONLY way they'll get them, then of course our point is made and they are exposed as the tyrants they are.
But you were going to tell me all about YOUR side advocating for MY basic human right of self-defense against tyrants & oligarchs by "lawful" means, weren't you?
Please continue ;-)
Trump sez.......
Drrrrrrrrr
Until he goes after the criminal cabal of the FED and their shyster banksters, he's missing the point.
Recession. Oh Donald.
Gee, I sure hope we don't go into a recession.
Gafaw...Gafaw ... Gafaw....
wtf has 90% of American been in the last 10 years?!
This Christmas we'll see more energy layoffs and a bloodbath in the retail sector since Americans cannot even afford a flannel shirt reduced 90%.
So what else is new?
Go ahead, say it Donald ... "We need to abolish the Fed". Say it mother fracker say it !!!!!
that is exactly what he is paid
to never say, that is the problem.
.
the fed's owners are his masters.
.
then there are those political and legislative
trifles to control, along with the entertainment
and journalistic, never mind educational, corporate
spheres.
.
it is impossible i tell you, we are in
the great impossible. one step from freedom,
man.
Yep, Trump is the circus distraction and will eventually step down and all this to allow Jeb to come from behind; this is politics 101 from the Clinton and Bush playbook (same book).
The fly in the ointment right now is Ben Carson; so they will have to step up the attacks via lies, distortions and other assorted attacks on the only candidate with actual, real and proven integrity.
Or they can just take him aside and threaten him and/or his family. Perhaps an auto accident or an onset of some "brain disease"; the irony & narratives that could create.
Just wait and see, but in the end we get King Obama. Americans will lose because they have already lost because we now have embraced godlessness in deeds of unrighteousness as a way of life.
Therefore we are under divine judgment from which there is no escaping and we have only to look forward to more pain and more suffering and the love of many will continue to grow colder and colder as it is written.
there is something i recognize in what you say
man. then there is the possibility of the
opposite of what has been proposed, prescribed
or forsooth-ed.
Yeah he's right but she's protecting more than the magic mulatto
What the fuck was this?
Fuck Trump and fuck BofAML's US Economics team in the ass.
Respectfully of course.
Of course, the White House Monkey is being protected. Each U.S. administration dumps an economic turd on the next.
Of course, interest rate gaming is the FED's game. The recession has already fucking started with interest rates at historic lows.
There will be no interest rate lift-off, so fucking stop talking about it. This type of mental masturbation is blindly following the FED's grand "will they or will they not" distraction from real numbers that prove an unavoidable Depression on tap for 2016.
Raise the fucking intelligence bar here and quit paying attention to the fuckwit Trump.
Agreed. Trump is nothing but a fucking mouthpiece with bad hair. He also said on CNN that QE or letting the market crash and start over were basically the same thing, same results. The dude is a quack, most americans dont even realize at this point how fucked the system is. Fuck this POS. No POTUS candidate is telling yoi the truth.
And they wont be confiscating guns either...that I can guarantee. So stop talking about that as well..
This administration was fortunate when they inherited their turd.
They knew exactly who to call and bring the economy roaring back.
https://m.youtube.com/watch?v=xm3VMrKqJSA
Actually, they were lucky given their intentions. They used a crisis to further their progressive b.s. Never let a crisis go to waste.
Barack Suckin Cock Fuckbama has had protection since Day 1 of his asinine, fucked up administration. Of COURSE the fuckers at the Fwed have his skinny assed back. He was installed to create chaos, mayhem and division. Personally, I shun and slap any Fuckbama "supporter - dumb fucks that they are.
Call in the interpreter.
Yes, and what did he mean about Mr. Yellen when he said this: "...keep Janet Yellen up at night."
I have disassociated from one friend that was his supporter and it is now a litmus test for any new individuals when it comes to voluntary association.
This - Donald Trump - telling the truth like he is is really going to piss the power players off!! Right now in the U.S. - Trump has the biggest and baddest megaphone - larger than Obama's bully pulpit. The White House, Federal Reserve etc really don't want to get into a public pissing contest with him. He literally has them by the balls! Hey Donald - you best get the best damn bodyguards you can afford - keep them close - very very close.
has the fascist media always dedicated this
amount of coverage to an election 14 months,
now 13, away?
.
pulpits in the media. what is that, who cares
and who pays and then, again, who cares?
.
very few are even listening man.
Only Hillary has the outstanding ablity to lead the country through the next recession... even depression, and still fill up her bank accounts. I even suspect she has plans to sell the US citizen's confiscated guns to the middle east (all proceeds to the Clinton Foundation). "How could anyone not love my Mom?" Chelsea Clinton.
There are over x30 Schools of Economics and therefore x30 Economic Theory(s):
They are all bullshit. Economics is practised as the Black Arts of clipping coinage, debasing fiat currency and recursive scamming of the wealth produced through human intereaction.
Economic Theory Defined: Political Expediency.
It's NOT the Economy, Stupid, it's the Economists.
"People who lie to themselves, and believe their own lies, becomes unable to recognize the truth, either in themselves or in anyone else.
And they end up losing respect for themselves and for others. When they have no respect, they can no longer love.
So they yield themselves up to their impulses, indulging in the lowest forms of pleasure, and behave in the end like a thing obsessed in satisfying their vices.
And it all comes from lying — to others and to yourself."
Fyodor Dostoevsky, The Brothers Karamazov
http://verbewarp.blogspot.com.au/2005/12/economic-heresy.html
http://verbewarp.blogspot.com.au/2006/03/warning-to-east.html
http://verbewarp.blogspot.com.au/2011/08/delusional-economics.html
http://www.zerohedge.com/news/2015-10-17/dollar-moves-shake-world-federa...
Ho hum
Just like Greenspan kept rates low to try to prevent a recession on Bush's watch. I totally believed at the time that was the reason and I have no problem believing its a big part of the reason now.
You can't un-taper a ponzi, so the can will be kicked until there is nothing left. Fuck them all. The bankers, the potus, the sheeple.
Trump spoke more on micro economics in 2 sentences than any politician has on the national stage in the last 20 years, Ron Paul excepted. Haven't heard this stuff since Ross Perot ran. Now you know Trump is doomed.
Trump unfiltered makes too much sense sometimes. Billionaires don't have to suck up.
The diversionary Messiah.
ROFL
The Chinese and the IMF were both howling at the FED about the last impending rate hike as I remember it. I think Yellen et al, were of the opinion that the combined irksome ire of the Chinese and the IMF (and the ECB) would have been too much spot on to the point of what is actually occurring before our very eyes. This one is going to be a slam dunk on the Chinese. Giod bless America, because believe me, you sure don't want the Chinese running things. LoL They eat everything, because in their cultural-historic past, those who wouldn't eat everything, starved to death. So they cooked-up the cats and the dogs too, and those who ate, survived. Those who didn't eat, didn't hear their stomachs growl, or bark either!
Obama in inimicable clown-president fashion will simply blame the FED (and global warming) for anything that occurs simultaneous to the next rate hike. The high temperature here today was about 43 degrees. The wind was stiff.
In the mean time, the only thing that really will save the world economy we all care about is, rate hikes until we're up in to the ying yang of double digits, rate hikes that make savers and small businesses feel like their efforts are paying dividends, dividends that can then be put into making purchases, purchases that in turn will revive the economy. Savers don't spend the principle. If they spent the principle, uh duh, they wouldn't be savers, would they? And small businesses don't spend their principle either, because the principle is just the float on their business transactions and not really their money to spend.
The other thing that can be done is to offload government regulation into a liberal dumpster some where. Government regulations are generally just so much do-good vomit. Both bureaucrats and legislators should be regularly whipped hard. It would teach them to be more careful in their regulatory efforts, and to work harder to streamline that which government has been increasingly demanding of everyone.
Government should be a yes/no affair. Can I? Yes/no. And when they say, no, vote their asses out of office.
Politicans elected or not all like the spend money cut interest rates part of ecconomic theory but when it comes time to do the not politically popular part like raising interest rates all of a sudden they have a thousand excuses to not act.
Donald's right. The Fed is monetizing the global markets for the exact same reason. Western market chart action is comical.
Donald Trump is a full fledged moron if he thinks for one second that Old Yeller can possibly raise rates without blowing up the entire world in the process. Trump is either an ignorant moron that lacks education, or he is spinning horse shit for the FED, and the tribe. We all know what will happen when the rates are raised, and we all know what will happen to Trump's holdings if rates are raised too. Trump is a disingenuous mofo that is playing everyone for a sucker if he thinks for one second that anyone worth their salt in Economics thinks he knows what he is doing when it comes to the reformation of Ponzi Casino Crony Capitalism, or it's inevitable demise. Frankly, I don't think that Trump has a friggin' clue when it comes to the downfall of the USA and governance at this juncture.
"We all know what will happen when the rates are raised".
We also know what happens when rates aren't raised, fiat money becomes meaningless as the Fed is televising that if it costs nothing to borrow it, it musy be worthless.
What a quandary.
"Donald Trump is a full fledged moron if he thinks for one second that Old Yeller can possibly raise rates without blowing up the entire world in the process."
There is always more than 1 way out of a situation.
It's yet to be seen if Trump knows more than he's letting on or if he doesn't know what he's talking about.
Two things:
1.) It's probably more likely that the fed doesn't hike during RE-election years.
2.) The US is totally bankrupt and the Fed can't actually hike.
You Trump haters need to realize that low interest rates benefit Donald Trump and all real estate developers. The man made an honest statement. Not sure why you have so much vitrolic for him. He is as good as it gets now in American presidential races unless one of you geniuses can reanimate Eisenhower or clone him.
+1
Plus, is money really the biggest issue? Personally, I think immigration is a bigger issue.
Maybe Trump should declare bankruptcy and get it over with. The sooner that happens, the sooner we can start honestly rebuilding. And think of the ramifications throughout the world if America did that!
Wow..love him or hate him Trump telling it like it is when it comes to the FED'S non-sense trying to protect Obama Administration from a full blown distaster on his watch.
i guess its a lot better then saying we should keep kicking the can down the road..................
Hussein Obama is a Usurper (he was born and likely still is BRITISH and is not a natural born Citizen, no matter if birth occurred in the Oval Office). The entire Congress knows he is a Usurper, and they have ALL committed treason letting Hussein Obama attain the office. Congress and SCOTUS only protect their own treason by letting the Usurper get away with everything.The FED is protecting all of them.
When there is no legal executor of the laws then there is no law, and the law is only what these evil fucks say it is.
Whats the penalty for treason?