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The Federal Reserve: Illusion Of Understanding, Illusion Of Control
Submitted by Charles Hugh-Smith of OfTwoMinds blog,
The net result is nonsensical policies that fail to achieve their stated objectives.
We live in an era of illusion: the illusion of understanding, and the illusion of control.
Few institutions reflect these illusions better than the Federal Reserve, though the Pentagon, Congress, the Imperial Presidency, the sick-care cartel and the higher education cartel are certainly giving it a run for its money.
The foundation of the illusion of understanding is data--Big Data. That the Fed has no idea of how the real economy actually functions is painfully apparent. But the state's vast flood of data, neatly organized into slop-troughs that suggest precision, creates a very compelling illusion of understanding: media shills go to absurd lengths to treat bogus or marginal data as the equivalent of the tablets brought down by Moses.
Sorry, Corporate Media: the unemployment rate and the official rate of inflation are not real. They are illusions rigged to lull the masses and enrapture the simulacrum experts living high on the hog in academia, NGOs (non-governmental organizations) and think-tanks.
Here is the reality, as expressed by IMF Chairwoman Christine Lagarde: what passes for precise data is a guesstimate at best, and a carefully executed distortion at worst.
The net result is nonsensical policies that fail to achieve their stated objectives. Even more tragicomic, the spokespeople tasked with presenting this failure to the Great Unwashed are forced to speak gobbledigook that borders on the psychotic if taken at face value.
For example, Janus Yellen must claim she is planning to raise interest rates while also proclaiming that she's keeping rates at zero for the indefinite future. If a non-Elite person rambled on in this fashion, they would be tossed in jail as a 51-50 (involuntary psychiatric hold).
Equally perverse is the illusion of control--the fantasy that the Federal Reserve controls the real economy. Note to Fed: hosting the financial feasting of the Power Elites for 7 long years had essentially zero positive effect on the real economy.
All the Fed's QE and ZIRP (zero interest rate policy) accomplished was the inflating of multiple bubbles (housing, stocks, bonds, student loans, subprime auto loans, etc.) and chumming the feeding-frenzy of financiers gorging themselves on income-producing assets while the dwindling middle class has been mesmerized into accepting debt servitude as the acme of middle class membership.
The notion that the Fed or the IMF understands the real economy is pure illusion. So is the notion that they control the real economy. All they control is the level of exploitation of the many by the few.
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Not bad.
This article describes the Alchemist who successfully turned paper into gold.
https://www.youtube.com/watch?v=_tiOMu_Bf8Q
Joe Walsh says it best.
"Illusion Of Control"
Please... They have complete control as they drive the economy full speed off of the cliff (while blaming consumers for not doing their fair share). Complete control.
Is the economy being driven off a cliff? --- Or is the economy being pushed into a funnel by the criminal FED?
An elitist cabal of global political-operative-bribers and market-manipulating-barons led by the FED is using the dollar and the intrinsic stored value of the American economy that backs the dollar in an attempt to strengthen and solidify their control over the global economy as it has expanded over the last thirty years since the rise of the Far East as a competent manufacturing region, fed by dependent commodity markets in the EM. ZIRP is the cleaver that is separating the American wealth from the American people and allowing these conquest determined Alexanders to continue their aspiring international conquest in the midst of a completely manufactured global depression.
ZIRP is killing people in the United States and around the world. ZIRP is depriving the American people of their historic wealthy economic base. All of our American wealth is being funneled by the FED's ZIRP into the thieving hands of this globalist cabal that is pushing the urgency of connived free trade agreements. ZIRP is nothing less than a genocidal theft of the cash value of the American economy. ZIRP says, your stored wealth is worth NOTHING except as it can be used to purchase the trinkets and baubles in the consumer marketplace.
But we all know, wealth had value up until ZIRP. Wealth earned interest until ZIRP. Where did the market value of our wealth go? And who ended up with it?
An elitist cabal of global political-operative-bribers and market-manipulating-barons led by criminals at the FED has stolen all of it. ZIRP is the policy tool that is allowing a genocidal theft that is killing Americans every day by dismantling our market economy and funneling all its stored value into the hands of a few, an elitist cabal of global political-operative-bribers and market-manipulating-barons led by the FED, which has been taken over by these international criminals.
Read my name
They were unsuccessful. All they did was repeat history.
The fed is not about understanding and control. It is about understanding and manipulation. And it works as intended.
Nothing illusory about the fortunes being made by FED insiders and their riskless betting. A N/Jew Aristocracy is being formed. Like vermin, notoriously hard to get rid of.
The FED knows exaxtly what they're doing; destroying the global economy to get the new world order.
Yup!
There is one illusion that is particularly captivating -- that we can just print money and borrow our way to ever-increasing prosperity. How awesome is that? Everyone seems to be in love with that idea.
But if that notion really is a distraction from facts, Fed.gov has a lot to worry about. Because the 540+ people who run the place are going to face a prospect where they pretent to exhibit fiduciary responsibility, and taxpayers pretend to fund their debt-fuelled consumption orgy.
The federal reserve has no credibility, depsite their hand flailing and word salads tossed in front of cameras. We are in trouble, and the clock isn't rotating in our favor.
So how did the 5 year plans work for the USSR? What...the USSR no longer exists? WTf?
Psychologically, this woman...this hapless academic, simply isn't up to the stress-test
Charles - it all makes perfect sense when you realize - it is intentional, and they are professional liars.
OT any thoughts on IWM massive outpeformance, even over qqq ?? fat finger in the 'right' direction is not questioned perhaps....stick it into the euro close then....?
Sure. The Russel was rolling over yesterday. Today the FED is buying it - all of it - to make sure and ensure that nothing breaks the metoric rise in the market of 4 weeks. Its really that simple. first, put a bid on oil (which was also rolling over), and squeeze all the shorts in that space. That costs the FED almost nothing. Then ramp the SPX by smashing volatility - also a cheap trick. Let gold and silver have their day in the sun. Small price to pay for maintaining the illusion of wealth and prosperity.
The fed has turned into a terrorist organization for the middle class. They enrich the wealthy class and destroy everyone under them. Why are they doing so much to protect the markets? It's called leverage and these paper investors are leveraged to the hilt. Any kind of real market correction will implode the ponzi......
Currency wars, then real wars. Once the wars start the fed is useless.
Currency wars? Definitely. Real wars? Only if the psychopaths get their way.
If the shooting starts in earnest, the Fed will be far from useless, as it is the means by which the wars are financed. If we were taxed directly to pay for it all, there would have been a tax revolt years ago. Even the jingoistic warmongers would begin to question the sanity of invading/destroying much of the Middle East and north Africa if their tax rates skyrocketed.
No, the Fed is there to make the wars possible. After all, it's not a coincidence that the Fed opened its doors just as WWI started.
There is risk to the elitist parasites to use such obvious deception attempts and to send the world into war. I think they feel they have few other choices that will keep them in control. They probably feel that they need to exert more control and destruction, at a time when the world is crying for less.
https://thinkpatriot.wordpress.com/2015/02/06/high-dimensioned-games/
https://thinkpatriot.wordpress.com/2015/02/26/complex-systems-and-the-hu...
There are rather fundamental reasons for this, the nature of nature, as an example.
Greenspan and Bernanke have both written books explaining what brave geniuses they were for giving away free money and encouraging debt to balloon and assets to skyrocket.
If you have to write a bragging book telling people you are a genius...
Since there is NO painless escape from easy money, expect Janet to stay on hold forever. Though, if she wants to write a book, she could go NIRP and explain her brave geniusness to us all.
Neptune in Pisces: just another distortion of our "Age of Lies" (lasts until 2026)
What is amazing is that the Atlanta Fed actually does something useful - and publishes it on the web. Their Q3 forecast for this year is posted at 1.1%.
https://www.frbatlanta.org/cqer/research/gdpnow.aspx?panel=1
Perhaps the inflating of the massive bubbles was the intended result all along, and all the other bullshit about jobs and inflation was just prestidigitation to confuse the masses - a big whitewash which pretends to claim there are actually useful purposes to their strategy. The strategy has useful purposes, if you are an insider, because you can game these bubbles to transfer huge amounts of paper wealth from non-insiders. Then as long as there is a huge army of fully owned syncophants willing to enforce this ridiculous ponzi against the sheeple, your paper wealth can be converted into actual real world goods, ie, hookers and blow. Life is good if you are near the power source of the ponzi, the ability to create claims on real goods out of nothing. Wait - isn't that theft? Yes, theft was the real point of creating the Fed, and it is working pretty well.
"When plunder becomes a way of life for a group of men living together in society, they create for themselves, in the course of time, a legal system that authorizes it and a moral code that glorifies it." Frederic Bastiat
World Economies: Stimulated into Recession
http://ejmoosa.com/blog3/2015/10/28/world-economies-stimulated-into-rece...
Janus Yellen, yes the god of the doorway, and four faced.
what they control, in large part, is the rate of the transfer of wealth from productive labor to capital.
Period.
Suppose the Fed put a no-limit bid under the market and everyone sold to them...now that would be funny. The market would just stop.
Market looks like it is getting long and waiting for Fed juice...risky.
I forget - who was the FED chairman or IMF head who said we all should have been born rich?
Need two ropes
Do you suppose the Fed expects these histories to stay unseen?
http://showrealhist.com/yTRIAL.html
I control the FED, IMF, World Bank, BIS, Vatican Bank, de Rothschild Bank, the City, TBTF, and pretty much the entirety of the Western World. And I'm not about to relinquish that control anytime soon, frankly.
This is NOT an illusion!
"Born to murder the world."
http://3.bp.blogspot.com/-bb_Cu9Aa5MI/UmGGHW_qCxI/AAAAAAAAFls/WQuJPmr3LS...
Lords of Illusion. Masters of Reality. They can make water run uphill. I bet they could not. I lost. Everything.
https://www.youtube.com/watch?v=lN1RToUAOQg