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The Fed's Inconvenient Truth (In 1 Hope-Crushing Chart)
Year after year, economic growth collapses from "hope" to "nope."
The question we are surprised everyone is not asking is, after 6 years of experimental extreme monetary policy that is utterly failing to create anything like escape velocity, isn't The Fed's inconvenient truth that they are impotent (as opposed to omnipotent) at anything other than financial asset inflation and the transitory mirage of wealth creation?
Charts: Bloomberg
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My fear is this will not end for decades, like Japan, and when it finally happens I'll be in the psyche ward
GD At the back of my brain I'm thinking we may see something interesting happen before the end of the year, but either way I'll still probably end up in a home for nutters. Too much of this shit day in, day out is seriously messing with my mojo.
You've heard that the nuthouses have been closed?
The old textbook recipes for the economies must be wrong, judging from the results. Now, you and I would put the books in the paper recycling bin but there are some leaders who insist that trying the same thing over and over and over again will produce a different result. My mojo is in pieces, too.
We passed 250% GDP debt death spiral in 1998. The Fed is just looting the carcass. Not like anyone cares anymore.
The charlatan in the oval office has demanded that the economy not collapse during his tenure, so watch for continued "transparency" from the Fed and MSM while the PPT props this bitch up for another year, then it will get dumped on the next administration...
I'm pretty certain what you said is accurate. I've seen and heard enough things to make me think that is actually so.
As long as it holds together for two more Christmas trips to Hawaii on our 747 Obama is good with it.
Ooooooo ... bad luck! Try again?
As long as they're still making money out of it, they'll keep going. Seriously. They don't care. The whole world could be earning one dollar per hour. Real estate could be a million dollars per week, groceries another million per week ... as long as people are willing to borrow, as long as some idiot is willing to buy the debt (pension funds?) the banksters will be willing to lend to them what they have no hope in hell of repaying, and then lending even more next week. The only physical limit is the mathematical limits in our microprocessors. Banksters don't get bonuses for NOT lending. To them, every week the Ponzi still floats is a good week. Why not try for another week?
Think back to the old car finance deals - eg. $5000 deposit, $100 per week for five years and then an $8000 "balloon" payment at the end of the five years. How many people actually saved up that "balloon" payment and spent a bit of time debt free? How many just rolled over the debt and traded up the car? What was the real money flow of the deal vs the paper money flow? I see no reason why this shit has to stop, as long as people are desperate/stupid enough to go along with it. You might be smart enough to "stay out of trouble", but what about the idiot next-door? Or the idiot-down-the-road? The idiots are controlling the price. You're taking whatever they determine.
We're like a nation of farmers who've lent each other all our seed corn and eaten it. Come spring, we'll collect all those IOUs and put them in the ground.
The nut houses haven't been closed. We just have "open borders" for the mentally ill. Think "progressive".
I think we will have a "October Surprise "during the 2016 Presidential Elections...
No more elections. We won't last that long
-from an optimist
Massive helicopter drops?
Everyone is scrambling so furiously that they forget to vote? Like voting matters...........
Since this will not end at all well and the monetary games being played will only make the inevitable correction absoluetly bone crushing, I'd nearly agree with you... except I've gone from initial anger to just shaking my head and pulling my fully justified George Carlin-esque cynicism routine, thus avoiding the psyche ward as he did.
Yeah, purgatory.
While the government keeps exalting how great things are going ( and they are good if you are in the government).
And everyone is happy. Just ck Facebook.
Tattoos are free. Healthcare is free. EBT is all the rage. Jeff Bezos becomes the first trillionaire.
President Jorge Ramirez joins forces with Latin America, and it's one big happy family, with the USA paying the bills with printed Monopoly money.
Jim Cramer gets a Noble Prize for economics.
The biggest project is adding Obama to Mount Rushmore.
Secretary of State, Al Sharpton, is on a worldwide tour, offering our surrender, on unconditional terms.
Hillary ( she dropped Clinton, kinda like Ellen) won two terms and died in the last year of her second term. Her VP, at the time, Huma, did not win at election time, but finished out the term. Her hubby was all the rage!
I know what you mean.
Your comment was in jest, but have you considered the possibility that you may be a prophet?
This can end before the end of the year, if enough of us just wake up and demand it ..
https://app.box.com/s/hfgvcqg7gqh7i27at6sv53ywu87lwarp (Read Me First)
Are we, We The People ..
or
WE THE MICE? (as in blind mice) ..
I prefer mice to sheep. Sheep are just led to the slaughter. Mice, on the other hand can be quite clever ..
https://youtu.be/YDkyRPVD6To
Through all this madness, we all need to learn to laugh ..
I picture Janet Yellen at home frantically flipping through text books with a constipated look on her face. In her robe. Occasionally in the nude. Oh, sorry.
We are already in the psyche ward.
Mass Delusion: Your Central Banker Relies on it!
There's just that one tiny shred of doubt. Am I crazy? Maybe I've been brainwashed by the interwebs; maybe I am way the fuck out in left field. Either I've gone insane or my world has. People I talk to, from all walks of life, bodysnatchers. It's very strange indeed. All the same, I have never been more certain of what lies ahead. The single most significant event in modern history, and we have a front row seat. There will be many deer in the headlights. Awareness will prove to be the most valuable constituent of preparation.
it's like Zeno's Recession
A most excellent analogy. Never ending, always half way there but never THERE!
Bankers guaranteed to make money on each little cycle and they're short the masses and global economy. UN and IMF are poised to scoop up everything and consolidate the world when SHTF. Gird loins.
After you make a billion or so on some deal, wouldn't most people lay back and enjoy their time left and cultivate a serene conscience as opposed to trying to triple it by any nefarious means and at anyones expense? Maybe I'm not well versed on the sociopathic mind-set.
Once you have a certain amount of wealth you either leave the game or you keep playing. For power.
pump and dump.
salesman, what are you going to do?
This is where some idiot chimes in 'but how much worse would it have been without Central Banks'
LOL
It would have been a LOT worse....... For central bankers.
Here is hoping it gets worse for them soon.
It is the time thing that is really pissing me off. Its one thing to tax me ... it's another thing to steal my time.
Yes, that and the very inflation they've "sought" yet refuse to recognize they've created through said asset inflation - thanks to complicit farcical U.S.S.A. economic statisticians that make China blush.
"after 6 years of experimental extreme monetary policy that is utterly failing to create anything like escape velocity"
That only means that we will have even more EXTREME monetary policy.
LMAO. I used to work for a company in MA.hole and one day I got there around 6Am and all the workers were there drinking coffee.
I asked them, "Dont you guys start at 8:00?" and one said, yeah, but if we didnt get here around 6AM we would be late because of the traffic.
Man! I wouldn't live like that for nothing. I do't care how big the house, how useless show off the car is, I wouldn't live like that for nothing. Nadda!
Ya'll must be defective.
Simple solution: start at six, leave two hours earlier. That's management for you.
Which is why the focus needs to be on a defunct congress, wherein once the representation part of the mission is lost, the mission is gone, never to return (in your lifetime at least).
Almost forgot to add, for those who've forgotten how the govt was designed to work...
Congress is the neatly and expertly and concisely designed organization, and the only one, that could shut down the Fed in a relative instant.
Too easy, eh?
"The question we are surprised everyone is not asking is, after 6 years of experimental extreme monetary policy that is utterly failing to create anything like escape velocity, isn't The Fed's inconvenient truth that they are impotent (as opposed to omnipotent) at anything other than financial asset inflation and the transitory mirage of wealth creation?"
Here again we have the presumption that the Fed are a gaggle of Keystone Cop-esque buffoons stumbling between actions. I disagree. Look at what they have accomplished for the ones they are beholden to.
Were Dimon and Blankfein billionaires prior to the Feds' machinations? NOOO. I figure things are going to their plan. Their main concern is to keep the frog from jumping out of the pot, and to serve up all
you can eat frog leg buffets for the .01%. All the rest is window dressing, allowing their crony buddies to convert free fiat into real things, period.
The entire experiment of turning over the largest economy in the world to a handful of unelected bankers who are promoting their own at the expense of the masses is as far as one needs to think. The rest of this noise is a byproduct of that!
"escape velocity"-----like they and their cronies want to "escape" or change the status quo. Why the fuck would they? If I had a golden goose
laying golden eggs regularly, but also shitting in my neighbors yard, and I know interfering with the gooses' bowl movements is going to cut off
my egg production, am I going to do anything about it--probably not. (Actually I'd figure out a good win-win solution, but I'm not a psychopath,
nutjahb-yes; psychopath-no)
It's the rocket to escape the doomed planet that everyone is pouring their resources into which will never lift off because it's a hollow tube.
Huge shiny metallic exterior, impressive launch tower, bold insignia on the fuselage that reads: "Jekyll Island 1913".
It seems odd to talk about "economic growth expectations" when in construction (in my area and surely elsewhere across the country) the growth comes from bulldozing condemned buildings and dismantling factories -the contents of which are being scrapped; in finance the growth comes from expanded call-centers that handle foreclosures, collections and repossessions for banks; and in medical care growth comes from trying to meet the new paperwork requirements of ObamaCare and the success of mounting direct mail campaigns designed to get seniors to come in for colonoscopies they clearly do not otherwise need.
In my sprawling rural geographic area, we have just one indoor swimming pool. It is a legacy of an air force base that was shuttered in 1990. The pool has been closed for the last three months "for maintenance," but which is really just an effort of some in the school department to close the popular swimming pool to save money. Instead of closing the pool outright, in order to save money the school department has abortively begun "maintenance" of the pool, which is in fact a major construction project, a renovation of the pool's buried plumbing system. This work has been assigned to school custodial and maintenance workers, who are supposedly going to accomplish the task "in their spare time." (Trust me, they're all thrilled about the idea. LoL)
Already two pool re-opening dates have been moved ahead months, and the hint is that the project has become fiscally impossible (due to incompetence), and it looks increasingly like the pool likely will never reopen. This abortive mission-creep was apparently well-planned for political reasons.
Is all this intentional dismemberment of our infrastructure in part undertaken to avoid property taxes; the intentional defrauding of medical patients for the ObamaCare/MediCare/Medicaid graft built into our inane social welfare systems, and all the increasingly disingenuous fraud perpetrated against taxpayers at every level, REALLY figured into our economic growth expectations? If so, and there is no question that this is the case, there's no doubt the measure of economic growth expectation is not in any way indicative of either the health of our economy or the health of the nation.
Rural area swimming pool, and indoors at that? What, you fellers ain't got no swimmin' holes? That's what's wrong with Amurca these days -- buncha woosies.
Using Reverse Engineering we can immediately conclude that the expected escape velocity is working in contradistinction to the FED's mandate, and purpose, as we write here about it. In the world of Physics that energy is now working at cross-purposes to the actual end goal of the FED, and their shareholders. This will obviously render the FED to be undermined to a precarious position with all levels of the American population once the people realize that the FED has no purpose due to their loss of control over the so-called 'economy' they claimed to have mastered like alchemists years ago.
Lies, God damned lies, and statistics, can't extricate Old Yeller from this one IMHO.
The federal reserve only cares about two things... ever-increasing money/power for predators-that-be (banksters and governments). Period.
The patient is on permanent life support.
The patient is dead; they just programmed the screen thingy to keep making the sine waves.
Nope. It's the dope's got our hope on the rope. A slope trope.
As it went in the history of the Soviet Union, the people were always promised the paradise. Since the paradise never came, and never would in such a system, the rulers simply told the people "Well, this is it, you are here now, this is the future", and you were supposed to accept (and parrot) that you were living the promised paradise. Or else.
A currency crisis for the US will be a sign that market is free, elsewhere.
The only thing that whould panic the Federal Reserve is a currency crisis. It's when they losee control.
still waiting for that exceptionalism in action tha the US govt keeps talking about....glad to see though that some people in the US still have a brain...must be Zero hedge articles and the internet....which will be shut down soon....terrorism you see.....bring on the Inquisition because the world is really flat.....
extremely hard to convince someone of an idea when their paycheck depends on them not understanding.....
Just like a tree makes no sound when it falls in the forest if no one is there to hear it, if no one says the word "depression" you'll never actually have one. It's all good, move along, nothing to see here, just a fluid situation developing.
ZIRP must mean getting rid of usary.Don't have to pay interest?There seems to be a wave of intellectual movement today that is telling us that not paying any interest is evil.Somehow when I look at history of interest rates and I look at the interest rates still being allowed on credit cards I get the same message.The banksters depend on interest in order to rip people off.I'm semi-retired.I couldn't care less if I have to pay cash for anything that I buy.I don't care about making interest at the bank because I've never depended on that.If I deplete my savings before I die,who cares.If I don't owe anything to anybody and I'm debt free then I'm glad about what Bernanke said "interest rates will never normalize during my lifetime".Maybe interest rates could go to 1.5% possibly but Government debt at all levels prevents anything drastic from happening.Save in gold and silver and store food and other essentials for emergency situations.That's the smarter way instead of getting head over heels in debt.
Usury is not the world's problem. Usury hasn't been a problem for like 2000 years. A lack of real economy is our problem.
Bankers make money today when interest rates are low and when interest rates are high. They're not a one trick pony anymore.
I need Yield.
How much additional interest can a defaulting loan without collateral reliably pay?
There's your rate hike in the pipeline.