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Fed Admits "Something's Going On Here That We Maybe Don't Understand"
In a somewhat shocking admission of its own un-omnipotence, or perhaps more of a C.Y.A. moment for the inevitable mean-reversion to reality, Reuters reports that San Francisco Fed President John Williams said Friday that low neutral interest rates are a warning sign of possible changes in the U.S. economy that the central bank does not fully understand. With Japan having been there for decades, and the rest of the developed world there for 6 years...
Suddenly, just weeks away from what The Fed would like the market to believe is the first rate hike in almost a decade, Williams decides now it is the time to admit the central planners might be missing a factor (and carefully demands better fiscal policy)... (as Reuters reports)
"I see this as more of a warning, a red flag that there's something going on here that isn't in the models, that we maybe don't understand as well as we think, and we should dig down deep deeper and try to figure this out better," said San Francisco Federal Reserve President John Williams on Friday pointing out that low neutral interest rates are a warning sign of possible changes in the U.S. economy that the central bank does not fully understand.
Williams, who is a voting member of the Fed's policy-setting panel through the end of the year, has said the central bank should begin to raise interest rates soon but thereafter go at a gradual pace; ironically adding that the low neutral interest rate had "pretty significant" implications for monetary policy, and put more focus on fiscal policy as a response.
"If we could come up with better fiscal policy, find a way to have the economy grow faster or have a stronger natural rate of interest, then that takes the pressure off of us to try to come up with other ways to do it, like through a large balance sheet or having a higher inflation target," Williams said. "It also means we don't have to turn to quantitative easing and other policies as much."
As we noted previously, depending on the importance of the credit channel, the Federal Reserve, by pegging the short term rate at zero, have essentially removed one recessionary market mechanism that used to efficiently clear excesses within the financial system.
While stability obsessed Keynesians on a quest to the permanent boom regard this as a positive development, the rest of us obviously understand that false stability breeds instability.
It is clear to us that the FOMC in its quest to maintain stability is breeding instability and that previous attempts at the same failed miserably with dire consequences for society. We are sure it is only a matter for time before it happens again.
And thus, Williams' warning now seems oddly-timed at best, and cover-your-ass tactics at worst perhaps "the matter of time" is about to bite once again...
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Is there a chin there? Or did he lose it long ago gorging himself off the American people?
Keynesians: Borrow money and let the .gov spend it.
Banksterians: Create credit via various instruments afforded only the elite and use it to manipulate markets.
Corporatists: Blame the little guy via the media you own for your fucking sick greed.
re: banksterians. usually i like a bigger word when a smaller one will do because i'm a pedant, but bankster rhymes with gangster and, as such, must be retained for its poetry and implicit allusion to al capone and his baseball bat.
The Fed is trying to save the relic of a dying system by propping up large banks. They shuffle data, shuffle words and manipulate markets in secret to protect their confused loss of control. That is what they are hiding. Their customers are the banks pretending all things can be fixed through them? Large banks are now "the" liability filled with an addictive sickness, fed by the Fed, and that is the dying relic they are attempting to save. We must cut the bank cord and step back to more simple and responsible financial arrangements. Starting with the elimination of the Federal Reserve.
Is someone trying to talk themselves off the gibbet?
Fascists: do all three and say you're doing it for the Fatherland/Motherland/Brotherhood etc ad nauseam
Qui bono. In aeturnum, qui bono?
Go back to watch (the other) John Williams music...
it's the waking up of the 99.9% fast-er and furious-ier, silly.
I understand what's going on.
Zionist psychopaths running a fiat cartel are ratfucking the world and deep dicking us all in the ass.
"If we could come up with better fiscal policy, find a way to have the economy grow faster ...
Hey Williams, does the word fiat ring a bell?
you know it does ring a bell with me. it's what andrew maguire says that soon all the unallocated gold long positions are to be settled in, getting the goldman-led faction of the cabal (i know) out of their imbedded, legacy short positons and allowing them to take advantage of rising prices. but let the man speak for himself:
http://kingworldnews.com/andrew-maguire-this-historic-event-is-about-to-...
The floodgates of inflation set loose upon the world overnight.
More funny money velocity than you can shake a stick at.
They've got other cards up their sleeve, prior to going nuclear.
http://www.metalprices.com/news/article/DN/20151105003303/dj-india-gold-...
Ho CHIN Minh
Translated: We are not responsible for what's about to happen.
Not even the super intellects of the Fed could have seen 'this' coming.
Exactly, they see whats about to happen and see the signs and they are saying not me I'm not the one who did this.
Nor did we see it coming.
we didn't destroy that.
If you like your smoking crater, you can keep your smoking crater.
The Fed works for the big banks, not the American people. That's all you need to know.
The Fed IS the big banks midget.
Now get in mah belly!
The Fed is a creation of private banking system. The FED is part of the system, and primarily reacts to the banks need for liquidity. The midget is correct.
which is not enough when the banks' need is solvency.
Fuck him, he said nothing ZH fight club does not already know since long ago.
Exactly. If Venezuela doesn't crackup soon their dollarization schedule will be off-putted quite a bit. And gasp! they really will have to raise i-rates.
ijole!
muéstreme el oro!!!!!
Years ago I started making this offer: A $50 gift certificate for the winning example:
Keynesian stimulus was used in the
country _____ in the years ______,
during a __ recession/__ depression,
then the economy turned around within 2
years, and then produced ___ years
of lasting growth WITHOUT A WAR after this.
The increased tax revenue was enough to
pay off all the deficit the stimulus
had created within ______ years.
I’ve been posting this challenge on multiple forums for over 5 years, still no winners yet. It appears the liberals went out and cheered for Obama’s trillion dollar stimulus with exactly …. wait for it…. ZERO success stories.
http://www.teapartytribune.com/2015/05/18/keynesian-beauty-contest-revea...
Keynsian stimulus was used in the Country Germany in the years 1933 to 1938 during the depression starting in 1933, then the economy turned around immediately and then produced 6 years of growth.
There was a war after this as Hitler insisted that Schacht continue stimulating the war machine. In 1938 Schacht was canned as Reichsbank Chancellor.
The increased revenue caused tax roles to triple, with a doubling almost within the first year.
Schacht, who was a gold man, had to concede that Keynes was right.
Money has to be volume controlled and flux against goods and services.
Money is not metal, it is law.
Obama's did not stimulate the economy. QE is not Keynsian. Keynes was for exogenous treasury money to compenstate for the defects of fiat banker PRIVATE credit emissions. QE is a liquidity swap aimed at banker reserves channels. Keynes would never have gone for this idea.
It was completely clear to the Keynes and a few others, that bank credit systems had drained the world of liquidity.
Germany did not have a great depression, and instead they rock and rolled, and built autobahns, and built out homes and industry. Because Hitler took them to war, does not diminish the lessons to be learned.
The real lesson, is don't concentrate everything into a pyramid, where one man can lead your nation off of a cliff.
The other lesson is that money is law. Because FIAT credit emitting private bankers have usury encoded into their money type, does not mean that other FIAT moneys have to be coded as such.
Nope. This Keynesian approach still creates the moral hazard that gives any so-named stimulus to the unproductive but well-connected among the bankers, not those that are worthy of financial success in the economy.
Carnegie and Ford built industrial empires wherein the whole population enjoyed the fruits of their labor and ethic, both employment and prosperity. This did not require any Keynesian stimulus.
In fact, Keynesian stimulus is what destroyed the empires of Carnegie and Ford. Keynes worked for the bankers. Whereas, the bankers were forced to work for Ford and Carnegie until they got their fiat stimulus blitzkrieg rolling over the countryside. Does your banker work for you today?
In fact, this is why Hitler went to war, the widely heralded German stimulus paradigm unraveled in six short years. Sound familiar?
https://en.wikipedia.org/wiki/John_Maynard_Keynes
The problem with the Keynesian approach is the same problem as morphine, it has a huge potential for addiction, especially when it is not used for emergencies, and the starting is more fun than the stopping.
Carnegie exploited a few people at the right time, any idiot would've accomplished the same given the same starting point; stop heaping laurels on lucky robber barons.
Too bad neither of you twinks recognize that the war *was* the fucking stimulus program for Germany.
Actually, yes, it very much does mean that; because the holes created by popping of bubbles of endogenous supply from usurious vampiric assholes, is always backfilled from the largess of fiat by central banks as we've seen for the last 7 years now.
"Money is not metal, it is law."
True. But law passes and the metal is still there.
Fiat money is a nuclear weapon in the hands of politicians.
NO EXCEPTIONS!
True for sure. But, in my humble opinion, actions lately indicate that the next chapter of this epic, global wipeout is unfolding now. The FED has switched gears and is now looking to assign blame for what is coming next. The divide is widening. Politically as well. Game on (grab the popcorn... it is going to get more interesting from here on out).
There will be no place on this planet for you to hide motherfuckers.
Fair warning.
I hope your right, but somehow my gut tells me these pricks have a plan B, they always do.
They should have had a Plan C.
Plan Pb will take care of that.
The ZH fight club is just a bunch of fat, lazy, confused, bum-F'ed, wet-keyboard pussies.
"No place to hide..." JFC, get a life. They're A_F'ing you every day of the week with ZIRP. They hide in their yatchs, in their mansions, and flip you off as they pass you on the freeway in their Maseratis.
And the best most can do here is -talk- about stacking gold and silver at grotesquely inflated prices. They don't need a plan B. You've all already been gaffed through the gills by plan A, because you've surrendered with your own plan A.
F'ing ignoramous hillbillies.
i object to wet keyboard. had it once and have obsessively avoided it since.
also qrotesquely inflated prices. if current prices are grotesque, hang on to your hats and keys.
also one has to be noticed to be flipped off imo.
Another "child of the state" seeks initiation into Fight Club?
Well, someone will be along shortly ;-)
The only one you got right was 'fat', but that's because my wife can burn.
And what exactly are you doing?
Hint: get your fucking shinebox, chuckles.
what investment advice can you offer all the hillbillies here or is it too late for any
The fools still think they can pull this off and survive the storm.
Actually you've stumbled across one of, if not the most important reasons for all can kicking and obfuscation. None of these filthy scumbags wants it to come apart on their watch, so they do whatever they can to keep things going until the next guy gets in. How many calls for Yellen's head do you expect to hear if it falls apart tomorrow? What about Bernanke? Not quite as many. And Greenspan? Maybe a few. Robert Rubin? Who's he?
The real question is how they could have convinced themselves they understood the economy.
Nobody can point to successful active control of a stable economy over 2 generations, it has never been done.
The first time will not be any existing country, as there is no technology to allow that, the intellectual revolution happening now is making that judgement solid science and engineering. Some things are too complex, you can't compute them.
No one could have seen it coming.
None of them maybe, but, ZH and many other indie blogs have been warning for years that there was only one possible out come of their idiot plans.
Phil Collins and that ABBA babe had the song: "There's something going on."
I don't think it's imminent, because there is a tremendous amount of momentum in the US economy and its currency. But, having said that, the collapse of the Dollar is drawing inexorably closer. There's no doubt about that.
http://barlowscayman.blogspot.com/2014/02/might-us-dollar-collapse.html
Assholes.
you've changed my mind.
You got two? The one you shit with and the one you speak with? Or are they interchangable at this point?
All these cunts ever say is "it would have been worse if we didn't do it" Heard it a thousand fucking times. Worse for who? The blowjob twins, Jamie and Lloyd? Fuck the Fed, Fuck you Bernanke. Fuck You
Morons sitting on a few tons of our gold in their personal accounts.
emphasis on few.
the chinese and the indians have the rest.
"a warning sign of possible changes in the U.S. economy that the central bank does not fully understand. "
"A warning sign"? Is this guy real? :a warning sign"" just now, not 15 years ago?; 10 years ago;? 8 years ago?
Tell us, dear Sir, just what is it that you do under-stand? While you're at it, tell us where you have been for the pat 20 years of your life.
And then we can move on from there.
Ho hum
They've been lyin' since the Federal Reserve was first proposed on Jekyll Island. Here's a quote from a guy that was there:
"This [Federal Reserve Act] establishes the most gigantic trust on earth. When the President [Wilson] signs this bill, the invisible government of the monetary power will be legalized....the worst legislative crime of the ages is perpetrated by this banking and currency bill."
"From now on, depressions will be scientifically created."
-- Congressman Charles A. Lindbergh Sr. , 1913)
Lindy was contemporary w/ the cabal at JI but, he did not participate in the planning of the Aldrich Plan later renamed the FRA of 1913.
You're right. Didn't mean "there" to be at Jekyll. Meant he was "there" in Congress fighting to stop it, kinda like a Ron Paul.
but is he really lindy? as in lindy hop, etc. i don't think that's accurate. "lindy" is the pilot not the congressman, his father.
whatever, i found this looking up the senior lindbergh:
http://www.washingtonsblog.com/2012/03/charles-lindbergh-sr-86-of-great-...
but is he really lindy? as in lindy hop, etc. https://www.youtube.com/watch?v=tCc6ft3xmPs
i don't think that's accurate. (lucky) "lindy" is the pilot not the congressman, his father.
that charles a lindbergh was born Carl Månsson, in Stockholm, Sweden, to Lovisa Carlén, the 19-year-old mistress of Ola Månsson, a peasant member of the Riksdag of the Estates and a bank manager. When accused of bribery and embezzlement, Ola Månsson changed his name to August Lindbergh, left his wife and seven children, and emigrated to the United States with his mistress and their illegitimate infant son, Carl, in 1859. Lovisa became Louisa and young Carl became Charles August Lindbergh.
whatever, i found this looking up the senior lindbergh:
http://www.washingtonsblog.com/2012/03/charles-lindbergh-sr-86-of-great-...
The charming hubris and entitlement to control oozes out of his pores, for all to see, and he hasn't a clue.
You've been with the professors
And they've all liked your looks
With great lawyers you have
Discussed lepers and crooks
You've been through all of
F. Scott Fitzgerald's books
You're very well read
It's well known.
But something is happening here
and you don't know what it is
Do you, Mr Williams
If I have to source that for you, you don't deserve the exorbitant privilege of reading this board.
Stability is breeding instability?!?!?! How profound of you, Mr Williams!!! Do you yet know the known unknowns and the unknown unknowns???
Memo to Mr Jones ear ah Mr Williams (or is it Dr Williams?):
You stoooopid bast;(d. The eigenvalues are way far out in the open right half plane, and you put them there!!!!
Yes, something is happening here here and you f$)in well know what it is, don't you, Mr Williams
Oh. Please, please, please don't say; 'We had to destroy the economy I order to save the economy.'
please don't say it as it is both too funny and brings in the whole war crimes thing.
The country is in a FULL BLOWN DEPRESSION.
The only reason that the American people are surviving this depresson is because of the freely printed by the TRIILIONS of U.S. FRN FIAT paper to feed and house 96 million people.
Go to Kim Jongil University and setup an economics brain trust there. The Norks are experts at planned economics. Aw, but if they didn't get to play important and deep thinkers they'd have no fucking use, would they.
Fucktards.
https://research.stlouisfed.org/fred2/graph/fredgraph.png?g=2n0D
https://research.stlouisfed.org/fred2/graph/fredgraph.png?g=2mPb
https://research.stlouisfed.org/fred2/graph/fredgraph.png?g=2n96
https://research.stlouisfed.org/fred2/graph/fredgraph.png?g=2n97
https://research.stlouisfed.org/fred2/graph/fredgraph.png?g=2n98
See above. No Fed rate hikes indefinitely hereafter.
A resumption of QEternity and NIRP is a given.
"A resumption of QEternity and NIRP are a given."
BINGO!!!!!!!!!!!!!!!!!!!!!!!!
. . . , which further confirms that the equity market has become a rentier-socialist, not-for-profit, gov't-sponsored trust/slush fund for the top 0.001-1% and mutual, hedge, and pension funds.
The stock market and supporting institutions, i.e., Fed, TBTE banks, financial services, etc., are now a kind of rentier-socialist, corporate-statist public utility that is too big to fail and thus will be supported by the Fed, gov't deficits, and TBTE banks' offshore shadow banks' pass-through entities and HFT levering up equity index futures and jamming futures with HFT.
Were the SPX to decline 10% or more and persist there for a few months, the hopelessly levered offshore carry trade in the Caribbean banking centers, Channels, and "Belgium" for Treasuries and MBS to equity index futures of 50-80:1 (vs. 25-30:1 in 2005-08) would be blown wide open and result in a global systemic crisis larger than 2008-11 (a "Bedlam in Belgium").
Be careful what you wish for, ZH bitchez.
So what are you wishing for ?
We know that it has to fail. The question becomes who pays for it when it fails.
aside from, perhaps, your own portfolio (certainly mine) where is this not for profit stock market of which you speak?
having a higher inflation target
Well there you have it, inflation is? A central banker driven target and if you are not able or permitted to lock your economic circumstances into this inflation you are stuffed.
The Fed has to blame the politicians for what's going to happen. They don't want to take the fall and in the final analysis it IS the politicians fault.
The Fed has to blame the politicians for what's going to happen.
The Fed's job is to run political cover for the TBTE banks' license to steal the US and world blind in perpetuity.
Therefore, their job is to facilitate what they are instructed by their owners and then take the blame for the inevitable crises and apply their well-developed sophistry to rationalize intellectually post facto why they could not have known that a crisis was imminent, when, in fact, they know exactly what they are doing and what the eventual outcome will be.
https://www.youtube.com/watch?v=qtmgHKAwxM0
awesme comment........
Tribe (tm) pulls the plug and all board free flights to Israel where they have all the gold stashed. Stop and ponder that as a serious possibility.
I can make no sense at all out of this admission. What's a low neutral rate supposed to be? I guess it means no takers of even cheap money, no loans being made, money supply not expanding, inflation not expanding.
Are they really that dumb at the Fed, that they think demand is magical, unlimited, and all they have to do is let the horse run?
Answer: Doh!
The Fed has disabled the market's discounting mechanism for capital for the past seven years, and now wonders if their model is missing something?
"there's something going on here that isn't in the models"
Now that's the problem, isn't it? You manipulated all the predictable stuff out of the markets. So what you'll get now is an outlier black swan event that no one can predict or ameliorate to come blow us all to hell. Nice work.
"If we could come up with better fiscal policy, find a way to have the economy grow faster or have a stronger natural rate of interest"
A debt jubilee would do the trick. But then your parasite overlords might have to give back some of what they stole and there'll be none of that. So enjoy your black swan apocalypse and when the prols come looking for your head on a pike, just remember that you chose to have it this way.
Watch what happens if you take the EBT/SNAP away from the poor landwhales.
Hilarity will ensue!
I say:
1. Lower the voting age to 10.
2. Raise the minimum pay scale to $105/hr.
3. Give everyone $3,500,000.
4. Everyone over the age of 15 shall be packing heat.
and see if that works....
If we could come up with a better fiscal policy..
I'm having trouble understanding that statement. Fiscal policy is the province of Treasury, meaning taxation and spending.
Monetary policy is supposedly the province of the FED, where they control the price of bank credit via interest rates.
A Fed member especially should know the difference between the phrases "monetary policy" and "Fiscal policy."
MEFO - great pick up. I missed that. The neo Bolsheviks at the Fed just assume that everybody kows that they and the Fed Gov are the same org and have the same objectives. It's all "for the good of the People" of course
Monetary Policy and Fiscal Policy in the USA are both the province of a small group of bankers, politicians and industrialists, and always have been. Any notion to the contrary is just naive. The names change over the years, but its a well-defined system that you get to join if you show unusual apptitude (or are very lucky) at: (a) making money within the existing system, or (b) winning popularity contests (political elections), mostly because you then have some ability to perpetuate or change the system. You of course also must have a lust for money/power or you won't play along (which let's face it, almost everyone does, so this criteria is rarely a factor in the selection process).
And there is no grand conspiracy by the Rothchilds, the Communists, the Jews or any other "successful" group--it's simply a self-selecting system (every power center has it), and at various points in time members of the afore-mentioned groups have shown exceptional apptitude to work within and perpetuate the system in their respective power centers, or else come up with a completely new system (it's not the typical Jew's fault that he's got an apptitude to be successful in the USA's system--most reading this would take advantage of it too if they had it). Thus focusing on these groups is a complete red-herring--it's the nature of man in general that's the problem, not any particular group. Russia and China have got the same internal problems with their politicians/industrialists/bankers that we in the USA do, and it's got nothing to do with Jews.
BTW, this is why Donald Trump will never be allowed to be elected President. He is a member of the USA's system already, but he has proven unpredictable and is showing signs that he want's to break out of the system--(which scares the bejeesus out of the controlling cabal). They will try and buy him out with more riches first, and if that doesn't suceed they'll try and frame him (rape accusations, Child Porn on his computer, tax fraud by his businsesses, etc.). If that still doesn't work, he'll either come down with sudden health problems or they'll let John Hinckley out of prison and tell him that he still has a shot at Jody Foster if he can figure out some way to impress her.
The system in each power center eventually breaks down--it always has. It seems like it's the USA's turn to have that break down. But then it re-sets and re-invents itself in some new civilization/era. And on and on and on.
Until God says "enough". He's the only one that can fix the system permanently, and he'll do it (as He must) by changing the nature of man. It's already in process--see the Gospel of John.
Note: the "system" can also include religious leaders and generals (in addition to the politicians, bankers and industrialists). It's just that in the West those two other types don't figure into the curent "system" very prominently. That can change rather quickly.
Servant..here a week or so..liked your post..but "your dog don't hunt."..
try defending the elite finance banksters and the odd(by chance alone) fact of the high concentration of jews in the fed and wall st and MSM.
jews were heavy into communist movements in the west as well. and as a block vote democrat er leftist.
jews all too often are in the leadership of wall street crime & corruption (milken as example)
I would like to see you refute the above or explain the systems that allow the above to happen..PS I only point out facts about which the MSM never exposes or actively hides. ( I do not hate jews only those who have done incredible harm to our society)
I have been waiting for a defender of the jewish people to step forward and make the above explainable..you would do the jewish people a big favor if you could.
keep posting.
I won't defend individual jews--anybody with eyes can see that many are neck deep in the key causes of the decline of Western Civilization (Hollywood, banking, social media, teaching profession, the "new morality", etc.). However, it's not Jews as a culture that are the problem--as pointed out above there are many civilizations that never even heard of a Jew (much less had one as his banker) and they all eventually went into the dust bin of history for more or less similar reasons. It just so happens that Jews are particularly good at exploiting the dominant "system" of today (which relies on high finance and media/propaganda). But look in the mirror and tell me that you, your family members and friends would not have given into the same temptation many of the Jews have if you had the smarts, orgainizational skills and herd mentality that they do to pull it off. In today's society (our current "system") a combination of a high IQ and social networking skills is a huge advantage to people groups, and these are the precise qualities that come naturally (some would say supernaturally) to the Jew.
No, it's not the Jew. It's us--all of us. We here in the US put our leaders here, and we'll put new ones here again that are exactly like the old ones when our current system crashes (though I have a feeling the new system will reward generals and religious cult leaders far more than it will bankers). Other societies will do the same. An on and on it goes.
I learned a long time ago to be careful what I asked for. Fact is, after considering the alternatives I'd much rather have an apostate Jew calling the shots in my society as opposed to say, a hard core Muslim or Communist. As bad as thing are, they don't even begin to approach the living conditions is various societies where there are no Jews at all.
Jews are particularly good at exploiting the dominant "system"...
Any person adopting the jewish faith today is practicing a dead faith. It's sole purpose was to create guilt / indebtedness from both within and without. Indeed, it's demise occurred on Calvary when their messiah hung on a Roman instrument of death as a proxy action by those you note as being able to exploit dominant systems.
The irony however was this was by divine design. Current followers of this dead system will themselves die in the debt they themselves desire to foist on others. That is unless they're able to take advantage of the purchase price of their and any other person's freedom as is made available through this payment in kind by their "King".
jmf.
No disagreement. But no one need worry about the Jews, as God Himself swore he would preserve a remnant--they will eventually realize what they've done and come back to Him (well, those who are left alive after what's coming is done). I'm far more concerned about the rest of us (Western Civilization) who have rejected the King and the payment He made for us--we'll get no second chance.
I have an upper-class Chinese friend who is an "up and comer" in the Communist Party and an atheist. He is shocked at the anti-morality that the government and media foist on us in the West. Did you know it's forbidden in China for a TV show to depict divorce? Even someone who knows nothing about God logically understands that societies that treat divorce as something normal and acceptable will eventually self-destruct, and yet we in the West are so blind we can't even conceive of the possibility.
Meanwhile, in Germany where I currently live, the birthrate is the lowest in the world because most men have figured out marriage and child rearing is a "heads you lose, tails I win" proposition for them vs. their mate, and the women have been brainwashed into thinking it's "normal" to be by themselves and independent of any man or family. The Germans will pay a couple about $400/month per kid if they have children until they reach 18, yet still there are few takers except for the immigrants (mostly Muslim and Indians).
THe age of the white man, having rejected Christ, is over.
Treasury was outsourced at the end of 2008.
I guess being "data dependent" has its downside..if you don't have the data you can make wrong decisions...but to help the FED get off the hook ..I will give them their PR answer ahead of time..."well, we made the best decision working with the data at hand"...however we should have remained faithful to our old model of making decisions ...the good ole coin toss"...
The Federal Reserve is equivilent to the Nazis sending savers and the middle clss to the gas chambers.
Atlas, I don't want your money. Here is more data that proves you wrong. Sorry about that. Turn your back to Mises and his moronic teachings.
Money is law, and markets are not magick.
_________________
The nature of money means far more than Communism or Capitalism. Canada’s Sovereign money system 38-74.
From 1938 to 1974 Canada had little to no price inflation. Canada had a quasi- Sovereign money system, where their money pumped into channels and was non usurious. Private Banks were part of Canada’s mixed money supply. However, private credit emission was a small component, and was held to four year loans only, and limited to 6%. Further, private banks were jawboned by Bank of Canada (BOC) to keep them from emitting bad debts.
BOC became a crown bank in 1938 and was initially was privately incorporated in 1935. A crown bank means that BOC had its stocks fully owned in trust by Ministry of Finance (MOF).
In 1945, private banknotes are ordered removed from circulation. Private Banks emit credit, and their banknotes then represent high cost interest bearing loans. After 1945 only bills issued by bank of Canada were allowed. This issuance of BOC bills represents seigniorage and profits received by government and thus lowered taxes. Seigniorage should not go to rent seeking private banking corporations.
After first seigniorage, then old bills are replaced with new, and no additional inflation of money supply is necessary.
BOC after 1938 was a State Bank that emitted debt free money. The downside is that this money power was not protected by good law, and ultimately BOC was returned to a debt spreading type of bank in 1974. This conversion was at behest of Bank of International Settlements (BIS). There was also coercion and bribery against parliament to convert BOC in 74. Thus 1974 is the date that Canada became subordinated to private money power.
Bank of Canada was structured as follows: Shares are held in a Trust by MOF, Minister of Finance. In other words, BOC is incorporated as a company with shares, however the shares are wholly owned. Said shares are put in a trust, and MOF is trustee. It would be interesting to see what the trust specifies as to the actions of trustees.
Prior to 1974 MOF would tell Governor of BOC to create money debt free. This isn’t a real clean way to make debt free, and is still a corporate structure, which is why it was co-opted.
This debt free would be injected into the commons. Commons, when they are used by everybody, has a multiplying effect, where every dollar in creates much more than a dollar out. Think clean water, it makes everybody healthy so they can then labor and create. Not clean water? Then people get sick, and you have economic collapse.
Debt Free is recalled by taxes, and then is re-spent by government, so it flows in a loop that has no interest. In this way, money becomes a tool that the people use to labor with and create wealth. It has zero cost, and hence production chain does not have to add price to cover usury. This type of money can be saved to then be used to form small business, so it is entrepreneurial.
Canada’s population in 1939 was only 12 million people, in 74 it was 23 million. It is astonishing what Canada was able to do with this small population and a sovereign money system.
These things netted out of this system, the time period of 38-74:
1)
Beginning in WW2, sovereign money funded war effort without debt. Canada contributed greatly to WW2 effort. By end of WW2, RCN was fifth largest navy in world.
2)
Free Education for returning WW2 Veterans. Improving labor in this way improves productivity. Public school infrastructure was improved in the same way as hospitals, by direct injection of debt free money. This then lowered costs for schools and hospitals.
3)
Business loans. Business loans allows small to medium enterprises to form, thus increasing efficiencies. Small business are almost always more efficient than large business.
4)
Land Grants. (Land Grants are a way of keeping land from being grabbed by monopoly forces. This was easy in Canada given the amount of land available.)
5)
St Lawrence Seaway was dredged and improved and added locks. (Note that Canada spends into their commons, as all governments should.) This is something like Panama Canal and a significant engineering feat. It allowed an inland seaway to get from Montreal and Lake Ontario.
6)
Welland Canal is another waterway link between Lake Ontario and Lake Erie. It is eight locks and lifts ships 326 feet over the Niagra Escarpment.
7)
Trans Canada Highway was built, about 4,000 miles
8)
Universal Health Care. Free health care. Since economy was efficient, health care could be afforded. (Note: the U.S. private health care system is 3X more expensive than Japan’s. Only after 1974 did Canada’s health care system go bad.)
9)
Pensions and Direct Injections
a.
This is Social Credit Theory similar to that advocated by Major C.H. Douglas. These direct injects are debt free money being collected in taxes, and then spent (injected) back down into the base of the population. This creates a pumping action, and the money goes on to create consumption and wealth. It also overcomes losses from waste in industry, so labor can buy their output. (Wages never equal the actual value of production as waste and overhead is captured in prices.) Canada may not have not understood this action, that injections are proper economics and needed, as shown by Gap theory. They injected as a response to the Depression.
b.
Family Allowances: This is another direct injection, usually for kids up to age 16, about $5 in the 1960’s money, per month.
10)
Private Banks are Restricted to four year loans only.
a.
This is private creation of credit by banking corporations. A four year loan at 6% interest means that the interest does not go exponential. Note: In 1974 BIS coerced and removed these restrictions, so private Banker could make profits. His profits are usurious and also change the nature of Canada’s money supply. Canada’s money supply ratio then shifts, making it predominantly private credit and less debt free. This is the beginning of the end for Canada.
The nature of money means far more than Communism of Capitalism. Communism vs Capitalism is dialectic. This dialectic means people have their attention diverted away from money, its creation, and how a country’s wealth vectors.
In 1974 Debt stood at only 18 Billion, easily supported by a Continental Country of 23 million people.
Runaway inflation in late 1970 was created by Bankers, especially since the money had changed to become private credit. After 1974 Governor of Bank of Canada only controls the overnight rate for reserves. Control of overnight reserves is control of the price of Credit, and in no way allows volume and path control of wealth type law money (debt free).
How did Canada provide for mortgages?
Answer: They used trusts, which were similar to Savings and Loans in the U.S. This would be intermediated money that already exists. A saver would loan their savings to a new debtor. In this way, the population held debt instruments against each other. Debts were NOT held by banks for housing. Since inflation was low, trust would offer loans at very low rates in the 1 to 3 percent range. Retirees used their savings as income, as young people paid the loans off. Trust loans would not be for 30 years, and had to be renegotiated periodically. CD’s were for 5 years.
After 74 private banks offered loans structured in such a way as it was low down payment, but long term. The entry point was all usury up front in the loan, and hence borrower would be forever in debt. This then pushed housing costs in asset inflation, and also destroyed Trust intermediated money banking model.
When trusts collapsed, bankers swooped in and bought up remnants, which also happened with Savings and Loans in U.S.
Asset backed commercial paper. This is working capital used by business in order to operate. It is usually issued by non-bank entities and is intermediated EXISTING money, not new credit.
These sort of financial entities, shadow banks were usurped after 74, so savers were then disallowed access to have “capital” returns from industry. Instead returns of productivity then went to bankers, who created new credit as loans. Banksters now use credit default swaps to insure toxic asset backed short term loans. Therefore, FIRE (finance insurance and real estate) have usurped the money supply.
There are many proper ways to volume and channel control an economy. No one is talking about these methods:
1)
Sovereign money as in Canada’s model
2)
Self-funding loans, which go into inelastic markets, to then create wealth, to then pay off their loan over time.
3)
Rent taxes. Free lunch should be taxed. Why the giveaways and welfare to the rich? Income should be untaxed.
4)
Interest free loans to municipalities, so they can then inject into commons. This money also goes on to be used for local transactions, savings, and is used to pay off private debts.
5)
If one must have credit emitting banks, then they should be modeled on Sparkassen Municipal Banks of Germany. These banks return their profits and their debt instruments stay local. Their costs are low because they are public.
You mean to tell me that the Socialist FED has failed??? Socialism/Central Planning has failed??? What else is new.
Every American President assassinated tried to end the Fed; protect Americans from the usurious.
What do we see now? We see the Talmudists write a Project for a New American Century which serves their Zionist claims first, and waste American blood and treasure.
America was the only one to protect 'jews', and now they use us in the most horrible ways and boast about it in Israel.
There are plenty of links to show how Israel boasts about using the USA, and anyone of serious mind can find that.
Zionist Menachim Begin boasted that zionists created modern terrorism. Rahm Emmanuel's grandfather was a bus bomber. And America , my America, wonders why it is hated by the world when it is infested with these Zionist terrorists, these homocidal Bolsheviks?
Shadow,
Are you completely not paying attention? The FED is a corporation that works for the private banking system. Where the hell is that in a socialist central planning model? Socialist plannig model implies some sort of civilian or political inputs to planning.
Corportocracy that leads directly to Oligarchy, in order to take rents is NOT SOCIALIST CENTRAL PLANNING.
Oligarchy is the final phase of Crony Capitalism. Aristotle noted the cycle, where a few Oligarchs finally emerge, and then one promises to release all the debts of the serfs. The serfs then join this oligarch against the others, thus defeating them. Winning oligarch becomes the King. King has to keep his subjects out of debt in order to do wars.
King abuses his power, or gives birth to idiot progeny, and eventually that King is overturned, then Democracy starts again. Rinse Repeat.
This cycle of debt driven dependencies did not occur in a few areas, especially those areas that released debts in jubilees.
To get back to the socialist planning model, Communism (Bolsheveism J) was a creature of Wall Street Banksters, especially funded by Kuhn (J) and Loeb (J), with Schiff (J) at the helm. Beware of dialectics, and don't become ensnared.
Always like your comments, mefobills, but time is shorter now. The downing of the Russian aircraft, and no world 'leader' condemns it.
Gloves off. Their Zionist silence speaks volumes.
Try to understand the Northern, Viking, Christian mind. Nov 1st is All Saints Day.
The Zionists know that; their Hallowe'en. Their timing will undo them this time, imo.
But it may suit the time to claim technical fault, and then punish the individuals responsible.
I'm not. I know the FED is a "private" Bank. Private and public are just words. Government is as much a business as any corporation. What I meant by central planning is Centralized authority. Socialism calls for the people to control interests but the only way to do that is to give an entity the power to force people to hand over their assets. In order to do that generally people look towards the government which serves private interests.
But the point remains. It is the centralization of power that leads to the downfall and suffering of the majority. Socialism is simply a lie told to allow that centralization to take place. The FED controls the monetary system in order to prevent severe booms and busts. But in reality it is used to put everybody into the poorhouse.
And Socialism always leads to an oligarchy. You have to force people to hand over assets. Power is an exchange between individuals and entities. In order for Socialism to work you need to hand over power. And when power is centralized it leads to the few oppressing the many.
Shadow,
There is no room in your worldview for government to step into inelastic markets, where government belongs. There is no room in your world view for government to properly use fiscal policy in order to limit monopoly and rents.
Your worldview enables rent seekers to claim that money is metal, or credit, so then they can have a free lunch.
Everything has a balance point.
I guess the experience of Canada, the REAL DATA, does not convince you of how a proper society should function.
Government did the planning in Canada, and government issued the money without interest and debts. It was private rent seekers that usurped this balance, and broke the pact between their "civil servants" and the people.
Another example, Hungary went almost 1000 years with a responsive civil government, that did not usurp its people. This government was well constructed, with various power blocks held in balance. Hungary was usurped by external forces, similar to Canada.
More plausible deniability. The AshkeNAZI un-Federal no-Reserve Board ruin the world and run off with their fake money, believing in their Talmud: all non jews are 'donkeys', 'cattle' to be used by them.
See bailed out banks as their latest heist.
See the John Hopkins research which proves that 90% of those who claim to be jew have no dna linked to hebrew, and most Palestinians who they abuse are the jews of the Biblical times.
That is typical of the Khazar, Ashekenazi types who were bandits, killers, bloody warmongers, forced to convert to judaism after their king was made to do so by...Russia.
Ashekenazi don't even want to know their own bloodline, but they do carry on thieving, killing, and thinking they are superior because everyone puts up with their bullshit.
Want to fix it? Take away the profit motive from banking... including central banking. Pay bankers the same as plumbers. Make banking a utility.
That way there will not be this constant tendency for bankers to want to steal from people and people will start to develop the beginnings of trust of bankers.
Currently bankers do not deserve and do not receive any trust. Since people do not trust bankers, no one actually believes that bankers want to fix anything. People think it is just another banker con to f*ck them in the ass.
Upvoted you, but Usury is the problem. It is the right of people to issue their own money without interest.
The last crisis we talked about sending bankers to jail, the next it will be central bankers.
Your time is coming, scum.
You are referring to TALK about sending central bankers to jail, right? How many actually went to jail?
I think next time there will be a common understanding and an anger that talk is not good enough.
Central Banks have crossed the rubicon long ago to the extent people accept them hyper inflating assets through direct purchases is normal.
There is no free lunch in terms of these policies.
Have a listen to Bernanke blaming everyone else. He must be getting worried when he agrees to be interviewed by Hard talk.
http://www.bbc.co.uk/programmes/p035smr0
It's called a balance sheet depression you fucks. It means that many of the major corporate banks and corporations (e.g., GE and Gst due to your intervention. You prop up asset valuation by using formulas you learned in school (but you never understood these formulas were merely derivatives of derivatives) were and are bankrupt. Your soul job is and always has been to maintain status quo. This precludes failures of public corporations. After all, it's all a confidence game as we learned with Lehman. Let Lehman fail and suddenly things start to revalue.
The system protects itself because the system likes its distribution of wealth and perceived power. It hates the idea of chaos (i.e., the situation where perceived wealth can no longer translate into physical goods and services).
Agree the purpose of the exceptional policy is to maintain the banking/power hierarchy, which makes me wonder whose Cheerios Fuld pissed in. . .
It's called a balance sheet depression you fucks. It means that many of the major corporate banks and corporations (e.g., GE and Gst due to your intervention. You prop up asset valuation by using formulas you learned in school (but you never understood these formulas were merely derivatives of derivatives) were and are bankrupt. Your soul job is and always has been to maintain status quo. This precludes failures of public corporations. After all, it's all a confidence game as we learned with Lehman. Let Lehman fail and suddenly things start to revalue.
The system protects itself because the system likes its distribution of wealth and perceived power. It hates the idea of chaos (i.e., the situation where perceived wealth can no longer translate into physical goods and services).
Central banks = communism, new feudalism which is why they like China, another version of opium wars, hopium.
Their bullshit is obvous. Only their paid pet politicians still believe it because their income depends on it.
The saving grace for America is that it is the size of a continent, and no AshkeNAZI thug private central bankster can own it all, despite their efforts for that shit sandpit, genocidal Israhell and its batshit crazy Talmud.
We are all Greeks.
-- Percy B. Shelley, 1821
No.
Bow down to the Talmudist filth and its freakery if you must, and its central bank communism.
I won't.
I'm quite looking forward to them burning in their bonfire of vanity. I am very sorry to say that Britain is lost, bunnyswanson.
The FED believes in an economic ideology that is the opposite of how Capitalism actually works, no wonder it’s got problems.
In saner times, when demand was recognised as the driver of the economy, the US consumer was seen as the engine of the global economy.
With growing inequality, the US consumer has seen real wages stagnate since the 1970s. His consumption was maintained, first with debt, and then the illusion of wealth due to a house price bubble. He used his ever increasing house price as an ATM to borrow against to maintain consumption.
In 2008 things changed, the US consumer was maxed out on debt and his house was falling in price.
The once wealthy Western consumers have all had a similar experience.
Demand for Chinese products collapsed and China tried to keep things going with debt, hoping the West would soon be back on its feet.
With supply side economic theory being the order of the day, all the help has been put in at the top with nothing trickling down, because it doesn’t.
Capitalism trickles up though the following mechanism:
a) Those with excess capital invest it and collect interest, dividends and rent.
b) Those with insufficient capital borrow money and pay interest and rent.
With almost no welfare state in China its consumers constantly have to save for a rainy day, limiting their own consumption.
The world’s belief in supply side economics and trickle down is exactly the opposite of how Capitalism actually works, its demand driven and money trickles up.
QE puts money in at the top, where it stays, blowing asset bubbles.
Prepare for more solutions based on the opposite of how Capitalism actually works.
We had un-regulated, trickledown Capitalism in the UK in the 19th Century.
We know what it looks like.
1) Those at the top were very wealthy
2) Those lower down lived in grinding poverty, paid just enough to keep them alive to work with as little time off as possible.
3) Slavery
4) Child Labour
The beginnings of regulation to deal with the wealthy UK businessman seeking to maximise profit, the abolition of slavery and child labour.
Where regulation is lax today?
Apple factories with suicide nets in China.
A leopard never changes its spots.
The thing about modern capitalism is credit, it's a vampire, and while the 1% may escape it's clutches (or even benefit handsomely from same), it eventually consumes any value that labor could ever provide in perpetuity (just like any other sovereign); but when that paradox unfolds, wars begin, and the drafts never find those stalwart defenders of industry who are too important to the effort profiteering at home to be sent as cannon fodder, while the restless masses may well be less dangerous in RealFarAway-istan than in say Watts.
I owe I owe, so off to thankless work I go...
THE biggesr fear the Club has right NOW, is too many people outside the Club know what's going on.
To that....I'm going to bet my Gold, the Club is going force/coerce/threaten the Government about removing all Infomation about the Club and it's Club Members from the Internet, to the point of Legal Action if they mention anything about the Club on a Website. This is old school Nazism and 1984 all over again. This is one they will have to introduce in the near future before the end of next year, maybe even 6 months.
it doesn't matter..they can block everything now,or next year
once those know all about the cat that's now out of the bag,your already well ahead of their game
those are the one who have the upper hand now,and plan accordingly
They can turn everything off.
But forcing website owners to remove content, that's going to need a Law.
And be a Global Law, as preperation for Global Governance.
It has to be done as measure of "National Security" or it's going to spook the herd and all 'ell will break loose.
"I see this as more of a warning, a red flag that there's something going on here that isn't in the models, that we maybe don't understand as well as we think, and we should dig down deep deeper and try to figure this out better,"
Translation: "We need to print moar."
I guess there must be a standing FED rule forbidding any member from reading ZH. BS of course as is the above quote, because even the most uneducated of us here figured it out years ago. Corzine paved the way of claiming ignorance. That's all the FED will have left when it all goes down. That won't work this time with hundreds of millions of angry people.
i think the ones who have figured it out are still <1% of the us pop (over 3 million) and that's being generous and that's why the spin applied will be accepted as it is was with 9/11
I like the "maybe" in there. An official government hedge word. They guys really can't help themselves, can they?
"Economy grow faster" vs. survival and the well being of society.
There's the problem right there. All this bullshit is based on never-ending growth. Totally stupid and not possible. This entire system is a farce and can only last a certain amount of time.
Also, what's so hard to understand about we're flat ass broke?
ZeroHedge Bingo
Starting at any leaf comment, see if you can find a full path to the root using nothing but up arrows.
Is this why Boner made the dirty debt ceiling deal?
If a government shut-down loomed, that would have been the perfect timing for the Feral Reserve to let the house of cards fall and blame the Republicans.
If they know they can't keep the plates spinning any longer, then the only alternative is to find a fall guy and let it happen.
Now that the dirty debt deal is done, who (or what) is going to be the fall guy? WWIII?
You could always volunteer, do you believe it would make the difference?
Boehner is not that smart. He's usually drunk
They are finally figuring out that near zero, zero, or negative interest rates is how you put the economy in "park".
San Fransisco FED......nicely too it seems. Has not missed too many meals. Back to the bathhouse with you corpulant play toy. Squeel.
"I see this as more of a warning, a red flag that there's something going on here that isn't in the models, that we maybe don't understand as well as we think."
A lifetime of miseducation renders them useless and impotent. The best any member of the board can do is get the hell out of Dodge before guilotines go back into production. The dumbest will stay to the end - their end.
There a lot of things these guys do not understand or choose to ignore.
1. Government spending does not create economic growth, just a bunch of wealthy cronies.
2. Printing currency (not money) does not create economic growth, just a dishonest currency.
3. Central bank monopolies are a recipe for global havoc and societal chaos.
4 Expansions and recessions are healthy for an economy.
5. Trust is the foundation of any social contract. A unit of money is, in fact, a social contract.
etc.
I'm sure these Fed members feel they can intellectually outsmart the basic laws of money and economics. Time will tell....
Translation: "It's not our fault."
Jump you fuckers.
Couldn't have anthing to do with the fact that the San Franciso real estate market is in the biggest Fed blown bubble in recorded history could it? He's seen how this has turned out more than once...
"...San Francisco Fed President John Williams said Friday that low neutral interest rates are a warning sign of possible changes in the U.S. economy that the central bank does not fully understand."
How can they not understand it? Bernanke said he was a student of the Great Depression.
Did Bernanke forget to take some math lessons?
The various Feds most likely don't know because they are using models that do not take the effect of banking and debt (truly unbelieveable but true) into their modelling as they apply micro reasoning to the macro. https://www.youtube.com/watch?v=7ZK7aTBD97U thank you Prof Keen
a larger balance sheet or a higher inflation target? hahaha, they can't hit the inflation target they have now, and a larger balance sheet? just say the magic word (debt ceiling, which is an oxymoron, there is no ceiling)
"If we could come up with better fiscal policy, find a way to have the economy grow faster or have a stronger natural rate of interest, then that takes the pressure off of us to try to come up with other ways to do it, like through a large balance sheet or having a higher inflation target," Williams said.
If Williams could have been born an elephant...
If Bernanke had the courage to do nothing, we would be better off now than we are with what Bernanke cowardly did.
In 1921 the economy crashed hard and rebounded within 18 months. The roaring 20's followed.
In 1921, the government had the better fiscal policy.
What happens after a stock market crash? October was the best month in a long time, after the 1,000 point opening drop in the DOW a few months ago.
In 1987, the market crashed a RECORD 22% in one day. By the end of the following year it was at a new all time high.
It is way too late for Williams to be lamenting that he left the barn door open and the horses got out of the barn. He should have been against fiscal stimulus in 2008 and let things hit bottom, so we could bounce back up again. Not to mention that Williams wants government to do more of what isn't working already.
"It is clear to us that the FOMC in its quest to maintain stability is breeding instability and that previous attempts at the same failed miserably with dire consequences for society."
Williams knows the FED is anti stability. Stability is ZERO inflation. FED policy is destablizing by definition- a 2% inflation target.
A dual mandate is unstable, by design. Unemployment rises from a recession low to an arbitrary full employment number. Rising inflation and interest rates as a result, choke off the economy suppressing employment again.
The FED breeds instability.
No!! No! NO! Keep this OUT of sight:
http://showrealhist.com
The wealth stolen by these bastards is one of the worst crimes ever perpetrated against the American people. The crash of q4 will be disastrous for so many sectors. I had pinned mid November but hey what the hell do I know says the former MER operative.