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The Fed-Induced Farce
Submitted by Jim Quinn via The Burning Platform blog,
The minutes from the last Fed meeting were released on Wednesday afternoon. The minutes, along with a squadron of jabbering Fed heads lying about the economy doing great, pretty much locked in the most talked about .25% interest rate increase in world history. Evidently the Wall Street titans of greed have convinced the muppets higher interest rates are great for stocks, as the market soared by 250 points. As institutional money exits the market on these rigged up days, the dumb money retail investor buys into the market with dreams of riches just like they did with Pets.com in 2000, McMansions in 2005, and Bear Stearns in 2007.
The Fed has lost any credibility they ever thought they deserved by delaying this meaningless insignificant interest rate increase for the last three years, so they will make this token increase in December come hell or high water. They want to give themselves some leeway for easing again when this debt saturated global economy implodes in the near future. The Fed is trapped by their own cowardice and capture by the Wall Street cabal. If they raise rates the USD will strengthen even more than it has already. The USD is already at 11 year highs. It has appreciated by 25% in the last year versus the basket of world currencies. The babbling boobs on the entertainment news channels authoritatively expound with a straight face about the rise in the dollar being due to our strong economic performance. It’s beyond laughable, as the economy has been sucking wind since the day the Fed turned off the QE spigot in October 2014.
Anyone with a working brain and an IQ over 100 (eliminates the bimbos and boobs on CNBC) can see the USD isn’t strengthening of its own accord. We’ve had 0% interest rates for the last six years, real median household income is lower than it was in 1989, consumer spending (which accounts for 67% of GDP) has been dreadful for at least a year, Obamacare is destroying the finances of middle class households, small businesses, and the nation, and the percentage of people in the labor market is the lowest since 1978. In other words, the U.S. economy is in recession. The reason the USD has been strengthening is because Europe, China, Japan, Russia, Brazil, and the rest of the world are either in recession or depression, and their “solution” to their woes is to debase their currencies.
The Japanese continue to redefine insanity as they wallow in their second decade of recession while debasing their currency and rolling out QE 9 – because it will surely work this time. The Chinese “miracle” is coming apart at the seams as their debt based mal-investment is revealed by the crash in global trading. Their solution is for the government to buy stocks and bad debt, while executing short sellers. Brazil is on the verge of revolution as their oil/commodity based economy implodes. Russia has been in recession for over a year as $40 oil doesn’t pay the bills. And lastly, the EU continues to crush their citizens with negative interest rates, debasement of the Euro, suicidal immigration schemes, and an ever growing mountain of unpayable debt, in order to prop up their mega-banks and the corrupt political establishment.
When every country in the world debases their currency in order to boost exports, the USD appears strong. It’s like being the best looking horse in the glue factory. The problem for the Fed and the mega-corporations in the S&P 500 is that a strong dollar makes our exports much more expensive to foreigners and reduces their profits from their overseas markets. You won’t see the talking heads on CNBC, Fox, or CNN truthfully analyzing the impact of a 25% increase in the value of the dollar. But it seems the buyback happy CEO’s of the S&P 500 conglomerates have used the strong dollar as their excuse de jour for their profits falling. Good old globalization has not only resulted in millions of good paying jobs being shipped to foreign lands, it has now made the S&P 500 corporations dependent on foreign markets for 30% of their sales and 40% of their profits. The continued appreciation of the dollar will result in lower profits for our mega-corporations, which will prompt the CEOs to fire more Americans and ship their jobs to the Far East, while ramping up the billion dollar buybacks of their stock. It’s the American way.
The Fed has created a dead end street for everyone not in their .1% clientele. They have kept rates too low for far too long and with the 99.9% already experiencing a recession, their desire to raise rates will hit a brick wall of reality. Their easy money schemes to enrich their owners has resulted in the issuance of trillions more in debt by the government, corporations and consumers. The $60 trillion of total credit market debt will implode if rates go up by even 1% or 2%. The corporate titans are now facing huge headwinds, as consumers have nothing left to spend, the strengthening dollar is sapping their profits, and higher interest rates will put an end to the faux housing recovery.
The Fed has destroyed the finances of senior citizens, savers and the pension plans of corporations and local governments with their 0% interest rates. The Wall Street bankers and their Fed puppets can surely see the writing on the wall. They will drive stocks as high as possible so they can cash out before the next collapse. They don’t care about their clients, the middle class, or the future of the country.
We’re all muppets to the banking cabal running this morally and financially bankrupt military empire of debt.
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Once again, the pungent smell.
Janet and the Market's Stoned
https://www.youtube.com/watch?v=cDjnB_61k58
The Fed needs to look on the bright side. Lots of data to be gathered from a bubble that was never popped. Lots of data on the implosion of an empire.
When they pack up and high tail their asses out of here I would avoid China. Don’t think the Chicoms will be to please to see the Zionist money counterfeiters anytime soon. Maybe Africa. They could practice affirmative action over there.
What did these morons think worldwide communism would look like FFS? Did they think it would look like paradise?
There's a reason you hear all of these rich fuckers promoting it. They want to be on top, in the party as it were.
"with our system someone is gonna take it in the ass, thats just the way it is." goldman
Looks more like gangbanging nowadays. All those banksters piled up on the fragile working class:
http://www.thepornster.net/video/479/outback-gangbang
Well, not so much working, more like food stamping class.
Is there anything we didn't know yet in this article?
No, same as it ever was...
Yes, such "let the majority eat cake" monetary experiments have been tried before. This one will end no differently.
Human technology evolves, individual human nature, not so much...
i was told the consumer was "deleveraging"
New York Fed: Household debt at highest level since 2010
http://www.cnbc.com/2015/11/19/new-york-fed-household-debt-at-highest-le...
The 'de-leveraging' myth has been a staple of deflationists since 2008. It was bullshit then and it's bullshit now, as your link rather succinctly underscores. The really scary part of this movie however, is yet to come - i.e., what happens to the currency when all this begins to roll over and the corresponding policy response ensues...
The rank and file haven't the money to de-leverage... Kinda obvious if you look around.
don't forget to mention that all those EM that are commodity producers have huge loans based on american rates. They'll get double fucked when the rate rises, AND their currencies lose value.
There are shitloads of bad debt out there that still need to be flushed. Look for the world markets to shit themselves. Even over 0.25%.
..forcing them to say "fuck it" and DUMP ALL PAPER ASSOCIATED WITH THE U.S.S.A...
December 16th will be an interesting day for Au/Ag
See this evil black bomb? we're gonna paint it pink, so it'll be safe and puppy friendly......
My ignorance, but what is significant about that date.
Think its the next FOMC meeting.
Thanx!
Has Cookie Monster been shot? Those fucking Muslims again!
What's all this.."if the rates go up by 1 or 2%" bullshit? IF they raise it will be more like 0.01 or 0.02%. Then Mr. Yellen can say "Well we said we'd raise if the economy was looking up, and it is, so we did." And everyone will go "Yay, Everything is awesome, long live the FED, all hail Emperor Obama."
Or something like that!
They hate us for our cookies!!
The US$ Index lines converge on a point near 7 years in the future...SHEMITAH!!!
Yes Im a Muppet, Im Oscar the Grouch. I live in the trash can.
And when all these shit stocks crash and burn and get thrown in my house. I will look through the crumpled bits of worthless paper and see if any still have life in them.
And not until then. Capiche .001%? Ive got nothing but time.
As much as I hate to admit it, I secretly hope we do have a citizen revolution.
???. Not sure how my post elicited that response.
Well done Mr. Quinn, a succinct fusillade of truth.
Welcome to the New Rome serfs!
ISIS is fake cause it only attacks common people
our politicians and billionaires could vacation alone in the syrian badlands and nobody would harm a hair on their heads. i really believe that.
McCain already does vacation there, and other than the psychosis he's fine!
Pebble Beach soon to be more dangerous than Damascus. I guarantee someone is out there looking for these guys.
Yaaa, i clipped the Cookie Monster. He was trying to steal my Entenmann's chocolate chip cookies.
That is a BIG no-no.
I'm not completly in agreement,the price could be built-in on the USD and I'd be cautious going into December until we see how it plays out.Seems like everyone from the banking and financial sector is pitching the USD-interest rate rise but I'm not so sure.Caution is advised when listening to Peter Schiff.IMO,the Fed is full of con-artists.
Who could have seen this coming?
"Caution is advised when listening to Peter Schiff."
More like ear plugs.
The Fed has destroyed the finances of senior citizens, savers and the pension plans of corporations and local governments with their 0% interest rates. The Wall Street bankers and their Fed puppets can surely see the writing on the wall. They will drive stocks as high as possible so they can cash out before the next collapse. They don’t care about their clients, the middle class, or the future of the country.
Jim You Nailed it here! Pulitzer for you
Someone has to care.
I'm not surprised that this shit show is as bad as it is, it's just human nature writ large but what I want to know is simply this:
Where are the good guys?
Maybe it's just too many Hollywood movies but at the point of our greatest darkness isn't the Milenium Falcon or the Riders of Rohan or heck even Lassie barking about Timmy falling down the well suppossed to show up here?
Either there are very few "good guys" or we aren't even at the worst part yet or worse yet it's both?
We all bitch about what's wrong but until the average person decides that it's important nothing will change and there is even a contigency for when they get there.
The very people with a dick buried in their ass are going to offer them a plan on easing anal suffering which of course makes sense in a world gone insane.
Most of the good guys are doing the best they can to take care of the victims after the big reset happens. I started an organic permaculture farm. We will eat and do our best to feed and take care of others. There is nothing that can really be done to take care of the current issues until the system starts to crash. There's no fixing this. We have to build a parallel system and get it running now!
Build garden, build community, build local economy.
The author mentioned the 0.1%. A breakdown of the 1%. The top 0.1% massage money and produce nothing. These guys are parasites. The rest of the 1% are productive, such as CEOs and captains of industry. e.g., the late Steve Jobs. These guys lead us.
The only game you can win is the one in which you write the rules.
Anyone "investing" in their Casino is begging for these sociopaths to fleece them.
Buy your assets outright and save your cash in PMs.
Fuck the Fed.
The “late Steve Jobs. These guys lead us.”
So says, “new kinley”.
Yeah, only so long as they follow directives of Judeo-Bolsheviks (JB’s). As long as Jobs was financing rock concerts in honor of Mao Se Tung, JB’s were happy. But, when he started to resist paying bribes to official in exchange for permits – well, Judeo-Bolsheviks had to cancer him out.
Oh, by the way, free men have no leaders, apart from themselves.
Soon these fucking central banks will own everything that's securitized. They will own the world. Then what? And you don't think that this has been planned for ages? Go read the Protocols of the Learned Elders of Zion, assholes.
The dollar is NOT appreciating. Sure, other fiat currencies are depreciating faster than the USD, so relative to those crashing fiat currencies, the USD is rising.
But to appreciate in real terms, the USD price of goods would need to FALL. Instead, the price of goods in USD is now rising at about 8%, down from rising at 12% in recent years.
Which means, the USD is depreciating at a rate of roughly 8%.
Sorry, but depreciating is not appreciating.
To put in terms of a metaphor, the situation is like this.
#1: A bunch of skydivers (currencies) jump out of an airplane.
#2: Most orient their bodies roughly head-down, and fall at 180 mph.
#3: A couple orient their bodies flat side down, and fall at 120 mph.
#4: When group #2 look at group #3, they appear to be rising.
#5: When group #3 look at group #2, they appear to be falling.
#6: But in fact, they all are falling, and all hit the ground at 2~3 miles per minute and die. Of course group #3 don't hit the ground and die until 10 or 20 seconds later than group #2.
But none of these skydivers is rising.
Only economists and mainstream financial gurus would jump out of an airplane without a parachute and think they are rising upwards.