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The Fed Has Created A "Monster" And Just Made A "Dangerous Mistake," Stephen Roach Warns
Stephen Roach is worried that the Fed has set the world up for another financial market meltdown.
Lower for longer rates and the proliferation of unconventional monetary policy have created “a breeding ground for asset bubbles, credit bubbles, and all-too frequent crises, so the Fed is really a part of the problem of financial instability rather than trying to provide a sense of calm in an otherwise unstable world,” Roach told Bloomberg TV in an interview conducted a little over a week ago.
To be sure, Roach’s sentiments have become par for the proverbial course. That is, it may have taken everyone a while (as in five years or so) to come to the conclusion we reached long ago, namely that central banks are setting the world up for a crisis that will make 2008 look like a walk in the park, but most of the “very serious” people are now getting concerned. Take BofAML for instance, who, in a note we outlined on Wednesday, demonstrated the prevailing dynamic with the following useful graphic:
Perhaps Jeremy Grantham put it best: “..in the Greenspan/ Bernanke/Yellen Era, the Fed historically did not stop its asset price pushing until fully- fledged bubbles had occurred, as they did in U.S. growth stocks in 2000 and in U.S. housing in 2006.”
Indeed. It’s with that in mind that we bring you the following excerpts from a new piece by Roach in which the former Morgan Stanley chief economist and Yale fellow recounts the evolution of the Fed and how the FOMC ultimately became “beholden to the monster it had created”.
* * *
From “The Perils of Fed Gradualism” as posted at Project Syndicate
By now, it’s an all-too-familiar drill. After an extended period of extraordinary monetary accommodation, the US Federal Reserve has begun the long march back to normalization.
A majority of financial market participants applaud this strategy. In fact, it is a dangerous mistake. The Fed is borrowing a page from the script of its last normalization campaign – the incremental rate hikes of 2004-2006 that followed the extraordinary accommodation of 2001-2003. Just as that earlier gradualism set the stage for a devastating financial crisis and a horrific recession in 2008-2009, there is mounting risk of yet another accident on what promises to be an even longer road to normalization.
The problem arises because the Fed, like other major central banks, has now become a creature of financial markets rather than a steward of the real economy. This transformation has been under way since the late 1980s, when monetary discipline broke the back of inflation and the Fed was faced with new challenges.
The challenges of the post-inflation era came to a head during Alan Greenspan’s 18-and-a-half-year tenure as Fed Chair. The stock-market crash of October 19, 1987 – occurring only 69 days after Greenspan had been sworn in – provided a hint of what was to come. In response to a one-day 23% plunge in US equity prices, the Fed moved aggressively to support the brokerage system and purchase government securities.
In retrospect, this was the template for what became known as the “Greenspan put” – massive Fed liquidity injections aimed at stemming financial-market disruptions in the aftermath of a crisis. As the markets were battered repeatedly in the years to follow – from the savings-and-loan crisis (late 1980s) and the Gulf War (1990-1991) to the Asian Financial Crisis (1997-1998) and terrorist attacks (September 11, 2001) – the Greenspan put became an essential element of the Fed’s market-driven tactics.
The Fed had, in effect, become beholden to the monster it had created. The corollary was that it had also become steadfast in protecting the financial-market-based underpinnings of the US economy.
Largely for that reason, and fearful of “Japan Syndrome” in the aftermath of the collapse of the US equity bubble, the Fed remained overly accommodative during the 2003-2006 period. The federal funds rate was held at a 46-year low of 1% through June 2004, before being raised 17 times in small increments of 25 basis points per move over the two-year period from mid-2004 to mid-2006. Yet it was precisely during this period of gradual normalization and prolonged accommodation that unbridled risk-taking sowed the seeds of the Great Crisis that was soon to come.
Today’s Fed inherits the deeply entrenched moral hazard of the Asset Economy. The longer the Fed remains trapped in this mindset, the tougher its dilemma becomes – and the greater the systemic risks in financial markets and the asset-dependent US economy.
* * *
Roach goes on to say that we're already seeing the beginnings of what may very well turn out to be a dramatic unwind as high yield rolls over and the emerging world struggles to cope with a soaring dollar (remember, even though EM has largely avoided "original sin" i.e. borrowing in dollars, at the sovereign level, corporates are another story).
As an aside, those interested in a comprehensive account of what Roach covers in the article cited above are encouraged to reach David Stockman's "The Great Deformation."
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Malachi's pope might be right , this may well be the last. Christmas . 40 billion barrels of oil n gas in the golan heights is a game changer just as all characters have shown up for the party
"The Fed Has Created A "Monster"
Sorry, Bud... The Fed IS the monster and it's Frankenstein Creator dwells in the City of London.
And here I thought we lived in the Land of the Free, with Free Market Capitalism!!!
It's only a free market for the chosen ones of the tribe mate.
Obviously. I didn't think /sarc was necessary.
Once the EBT spending reaches the hokey stick point of no return, only then there is hope for a reset and burning it down.
I just got this on my RSS feeds, by dolph911. Found it much more telling than reading Roach nonsense:
Deflation can in fact be beaten, because deflation is a monetary phenomenon, not a physical phenomenon.
In order to combat deflation, governments have a tool called fiat currency, which can be created out of thin air in infinite quantities. When you have infinite currency meeting against a finite, and declining, world of physical goods and services, you get inflation.
This collapse is going to be an inflationary depression. This is how it is going to go down, might as well resign yourself to it.
http://ourfiniteworld.com/2015/12/21/we-are-at-peak-oil-now-we-need-very-low-cost-energy-to-fix-it/comment-page-2/#comment-75672
Dude, are you sure?
I'm now scared thast I won't have enough money to buy food. But, guess what? I grow my own, and so do many of my neighbors (shhhh... some of them are actual farmers).
If you're right, and nobody can afford food, me and my neighbors are going to be very, very rich, or very, very dead.
Thanks for the heads up.
Some people might want me to put this (/sarc) here.
I would tend to agree with you but for the magnitude of leverage in the system. When the underlying assets (i.e. equities) depreciate, which I believe they will, the leverage will tend to collapse upon itself in a deflationary orgy of margin calls and fire sales. I could be wrong, I'm no expert, but I believe it will be a deflationary collapse first, followed possibly by hyperinflation, depending on what course of action the central banks take.
Oooo... sorry dude. Equities aren't "assets". They are pieces of paper that are usually kinda stiff - so you can't even wipe your azz with them. Suggest you read "When Money Dies" about the Weimar Hyper inflaton/currency crash.
Assets are things that have intrinsic worth/value as opposed to concrete goods. Pieces of paper that say you own something, (a % of a company, etc) might say you own something, but if the company dies, you own nothing. So stocks, bonds, etc are symbolic "assets" - they aren't real. If you "own" ten shares of Firestone ties and have a flat, will they rush right out and fix it for you? Nope. If you own stock in a company, what you really own is a piece of paper that says you "own" a percentage of a company - but if the company dies, you own a crinkly piece of paper and nothing else.
In a fictional idealolgical world, you would be correct, but in the real world, equities are assets.
Deflation can be beaten? Deflation is a natural result of technological progress and innovation. It does not need to be "beaten". This is the biggest lie thrown out there by central banks which get to print worthless money and buy things of real value (AKA legally steal from everyone). This deflation bogeyman is a lie used to steal from the poor and middle class. Please go fuck yourself and have a Merry Christmas.
He seems sure it is a "mistake"?? Just the next page in the script I think. If anyone is happy with this, then let them stay in power.
Merry Christmas!!!
Inflation AND deflation are both lies used to steal from the middle class. They get you coming and they get you going.
Free market to them means they get everything for free
Scotty, you got the first part right.
Second part is all fucked up though.
Let me help.
It should read - " Free Market Cannibalism. "
The land of PC, and the home of the slave.
How do you pronounce that? Fronk-en-steen?
WB7 do have a Yell-en-steen monster image you can post?
The Fed is filled with monsters, animals, nightmares and straw men.
I believe the Fed was coined "The Creature from Jekyl Island" many years ago.
g edwards should have penned it "the kosher monster form jekyll island."
By the way, stant, if Israel can take Lebanon’s, Gaza’s and Syria’s oil and gas reserves as in the Golan Heights, someone else can take it back.
If Israel decides to take on the world, then there’s a chance there will be no Israel.
Which is true.
To the article: Kindly tell me something I didn't already know,
Sorry , spastic finger.
Why is it that economists who say that the Fed has been overly accomodative for years also say it is a mistake to gradually stop being overly accomodative? You can't have it both ways mr. Roach. The mistake is not in raising interest rates, the mistake is that the Fed thinks they can control the economy and have misused their power for years. Havoc has been unleashed and we will all feel it. It didn't happen in December it has been happening for years.
The FED definitely controls an economy, it's just that it is not THE ECONOMY which benefits the average citizen.
And when TSHTF, the sheep will blame "free market capitalism" for the problems that befall us all, instead of the central planners at the Federal Reserve. And they will beg for MOAR control over their lives, not less.
It's like trying to control a tiger by its tail. The tiger will eventually get loose. It took the USSR about 70 years, but market forces will always crush them.
Yep turkeys don't vote for Xmas.
So elites do not allow themselves to be impoverished by using their central bank to make sure they don't!
The way this has worked though, if you consider the % the elites control to the poorest ... if the elites take 1% more than they should so now getting 101% of their entitlement. On a long enough timeline ... they own everything and where we are now and have been for quite a while.
So figure this, if they own everything and the poor own nothing IT IS NOT THE DUTY OF THE POOR TO RESOLVE THIS ECONOMIC FIASCO but those with everything ... Awesome concept that.
The only fight for the FED at the moment is at all costs to the native population preserve all the elite have stolen and where we are at right now. If the elites are losing worth be sure the poorest are going to pay.
D'uh the FED is the MONSTER.
End the Fed, legalize free market capitalism.
For some reason, I like your avatar...
And your avatar wins the thread. NO votes required.
so vote for it
We continue to bungle along. Continue to experiment and evolve/devolve. No one has implemented a truly workable economic system for a nation to date (at least in recorded history). We suffer from bad experiments. We either learn or don't learn from them (and often ignore history and repeat the same mistakes over again). There are basic principles and laws as regards human behaviour, sociology, trade and business, government, etc. that have not been successfully isolated and codified in relation to importance. Once this happens we might be able to formulate a workable economic system that offers a decent semblance of stability and duration.
Note: A central bank (not as they exist today) might even be a workable component of a workable economy if its policies and actions were based on the true principles and laws mentioned above.
It would seem that way however if you are and high priest of a system that benefits those who implemented it will you not endeavor to maintain it?
Would not said maintenence include squashing like a scurrying cockroach any naissant competitors?
Just a thought.
alfbel +1. You might find Leibniz on physical economy, where economy is measured in physical productive and energy output not in fiat currencies somewhat interesting.
55 years out of colllege (where I picked up a minor in Economics), I have concluded that in the so-called real world, there is only ONE economic 'law':
TANSTAAFL = Tans fan alll
There Ain't No Such Thing As A Free Lunch
(Thank you Heinlein - The Moon is a Harsh Mistress) [And Why In The Hell doesn't someone make a movie out of this? Answer: It is way too Libertarian.]
There is only balance between competing interests.
The balance, historically, ain't fair to the majoritty of players.
Get over it, or work to redress the balance.
https://www.youtube.com/watch?v=AvgRrbLq5Zs
That's awfully long, I prefer TANFL, there ain't no free lunch. Like my old HS teacher would always say.
+1 for the Heinlein reference.
OT if you want a surprising real-world (pardon the pun) twist on "The Moon is a harsh Mistress" check out this link it does get to Heinlein eventually: http://www.brainsturbator.com/posts/188/ronald-hadley-stark-the-man-behi...
http://www.thewrap.com/bryan-singer-to-direct-adaptation-of-sci-fi-class...
Just the word "central" makes me cringe.
The FRB is private bankster wet dream. Enough said.
Truth vs lies.
Truth is really simple and just is, lies are complicated and require maintaining.
When your business model is deception you are going to be one busy mother fucker.
and the maintenance increases exponentially over time. This is why whatever long term plans these wannabe philosopher kings have are doomed to failure.
If you like your fuckedupedness you can keep your fuckedupedness......
The Fed exists to help its friends, the bankers. If the Fed raised rates, you can bet the bankers will profit from it. The question is how?
Really easily. Certain corporations and governments will go bankrupt. The common plebes will then start to suffer because of unemployment and crappy economy. To show that they are "doing something", governments will blame others and start wars, and get rid of some mouth breathers in the process. Wars are profitable for bankers.
Rinse and repeat.
Another way the banksters profit: the Fed raised rates a quarter of a percent, tacking even more interest on every person who carries a balance on their credit card.
Easy, huh?
And savers' rates didn't go up at all.
Isn't that what they call a hair cut? Or just a trim?
What he wants ZIRP4EVA?
We should have raised rates back in the 90's and they should be at 10% now, so to match inflation.
Fucking idiots.
Let's cut through all the financial engineering bullshit. Central Banks policies exist for one reason, and not the reason he says. What the Central Banks are tasked with, and the sole concern they harbor is to "prevent the speculators, off all types, from having to book their losses in the market casino."
Capitalism has one founding principle, those who invest wrong lose all or part of their investment. That is how failed business and failed market players get weeded out. They lose, and the deserving winners move on to keep playing the game.
Instead, due to corporate, wall-street, bankers, capture of the Governments and Central banks, Central Bank polices have been all about preventing losses to the speculators and bankers. In order to prevent the losses, all kinds of exotic, and anti capitalist tools are invented and used. It really is Central planning Communism for the aid of speculators and banks.
We say "Oh the Fed is making a mistake, market players might lose some money if the rates are rising!" "Oh, fuck, it's a panic!"
Let these failed banks, failed corporations, failed speculators, and the entire class of people who sought wealth without work, let them lose their asses. The Central Bank has no business passing losses on to the 99%, while making whole all speculators.
It ain't freedom. It isn't deomocracy. It is not in any way free market. It has no capitalist unseen hand weeding out the garbage.
It is a wealth transfer machine run by a tiny elite. Prepared to use the Fed as a rich man's communist party dictatorship. Passing all wealth to the 1% via a repeal of market forces and price discovery. They bet wrong, they win, they bet right they win. With the Fed in control, the banks and speculators are going to keep cashing in.
Merry Christmas Jack. One of my many few favorite Zerohedge posters. Nicely said in post. In case you missed....
Love and Light - YouTube
Ah, Jack, you said " The Central Bank has no business passing losses on to the 99%, while making whole all speculators.'
Jack, that IS the business of the CBs - all of them, with the Fed leading the way and showing them how.
Best out front example lately is Draghi and Greece. That's plain enough for the sheeple to understand, if they were not distracted by pro football and such.
The central banking hasn't finished up the grid. Hence mindless wars. Look up Bank of International Settlements, it will show you who the next country to become a irrelevant ISIS sponsor. It's all a dog and pony circus.
I agree with your assessment and it made me think about how the same people who are on top of this system that takes from producers to subsidize consumers also generally believe in evolution. They probably understand that free markets separate the wheat from the chaff and if allowed to proceed naturally would eventually result in a world full of people who are smart and capable of competing with them on almost a genetic level. That's probably what keeps them up at night, they're fascists at the core, even as they espouse leftists ideologies.
While it's time to get past 20th century concepts like fascism and the left-right false dichotomy, fascism has always been "leftist". Nazi propaganda films refer to how National Socialism is going to protect the worker from rapacious capitalists, for example.
Going back to 1920, the movement had representatives who wrote things like this:
Fascism and Communism are at each other's throats because they are religious siblings. Nothing is as bloody as an internecine war between religious zealots within the same church.
Fascism is national socialism, communism is international socialism.
Good article on central bankers:
https://www.moneymetals.com/news/2015/04/29/economic-collapse-timeline-0...
What a BS story this is. The Fed will never be able to "normalize" rates. The taxpayer cannot pay the interest on the debt as it is with just a quarter point raise. What a joke.
It should be raised to 75 basis points. You're the joke.
Did someone just say "there's blood on the streets?" Yummy.
The trumpet is muted with socks from China and EBT Cards blocking enough pressure to clean the instrument pathway.
So it's a monster: "It's Alive!"
/pause doom/
Merry Christmas to all and to all a good night.
/resume doom/ "after holiday"
Cheers! :)
Announced at the annual Economists' Ball: presenting Stephen Roach, and his brother, Cock.
http://www.noradsanta.org/
Don't forget to share the experience with your children. We had to watch it on analog TV. When the reception became fizzy, dad would press the rotor button to optimize antenna signal.
Just like when the earth swifts and the satellites lose signal. Today, we pay for their fuck up under High Definition comedy.
FED is a subsidiary of the Bfor IS, set up to handle NAZI Germany's banking in the 1930s, after it morphed from an overseer of the WW1 Reparations.
The rate hikes will continue. The goal is to wipe out the petro dollar and bring in a new currency regime.
The same banking actors are transferring their assets in the new system.
It does seem like even the biggest dollar suporters have been demoralized at this point. They probably are at the point where they could end the dollar and go to something else. I am guessing that the new FRN or BISN would be completely digital. No way to transact without a point of sale terminal of some kind. The only media of exchange without using the new currency would be straight barter (my tire for your bread) and perhaps PMs, though that could also be characterized as barter to an extant as well.
Will the King Dollar people actually start singing the praises of the new global currency when it is trotted out? This should be fun to watch.
Stuck pigs squeal.
Congressman McFadden
on the Federal Reserve Corporation
Remarks in Congress, 1934
AN ASTOUNDING EXPOSURE on a corrupt institution:
Excerpt:
"Mr. Chairman, we have in this Country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks, hereinafter called the Fed. The Fed has cheated the Government of these United States and the people of the United States out of enough money to pay the Nation's debt. The depredations and iniquities of the Fed has cost enough money to pay the National debt several times over.
"This evil institution has impoverished and ruined the people of these United States, has bankrupted itself, and has practically bankrupted our Government. It has done this through the defects of the law under which it operates, through the maladministration of that law by the Fed and through the corrupt practices of the moneyed vultures who control it.
"Some people who think that the Federal Reserve Banks are United States Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lender. In that dark crew of financial pirates there are those who would cut a man's throat to get a dollar out of his pocket; there are those who send money into states to buy votes to control our legislatures; there are those who maintain International propaganda for the purpose of deceiving us into granting of new concessions which will permit them to cover up their past misdeeds and set again in motion their gigantic train of crime.
"These twelve private credit monopolies were deceitfully and disloyally foisted upon this Country by the bankers who came here from Europe and repaid us our hospitality by undermining our American institutions. Those bankers took money out of this Country to finance Japan in a war against Russia. They created a reign of terror in Russia with our money in order to help that war along. They instigated the separate peace between Germany and Russia, and thus drove a wedge between the allies in World War. They financed Trotsky's passage from New York to Russia so that he might assist in the destruction of the Russian Empire. They fomented and instigated the Russian Revolution, and placed a large fund of American dollars at Trotsky's disposal in one of their branch banks in Sweden so that through him Russian homes might be thoroughly broken up and Russian children flung far and wide from their natural protectors. They have since begun breaking up of American homes and the dispersal of American children. "Mr. Chairman, there should be no partisanship in matters concerning banking and currency affairs in this Country, and I do not speak with any.
http://home.hiwaay.net/~becraft/mcfadden.html
Congressman McFadden subsequently suffered two attacks against his life and died on October 3, 1936, from a "heart-failure sudden-death" after a "dose" of "intestinal flu."
McFadden was likely poisoned. All sorts of irregularites surrounded his medical treatment at the time and also the subsequent forensics.
whew had me worried, thanks goodness the fed never gave up on accomodative policy. they loaned the banks 105B (thats more than a month of QE) at negative interest. the banks get 1/2 point and the fed can say they raised rates. since the fed is no longer data dependent so they can rinse and repeat as often as they like which should be once a quarter and really no reason not to bump that 105 number a bit. raising rates brings the high yield market back into a more normal zone. why chast yield when the yield is coming to you? in the service economy inflation growth is robust. (thank goodness those fast food workers got a raise) government motors makes car and the government buys them. its all good. the real problem comes when wall street gets tired of buying its own stock. there's not enough accomodation on the planet to keep that ponzi scheme going and where the stock market goes so goes the economy
It’s been a planned attack on our nation—its savers, its law, its morale, its sound money practices, its culture, its manufacturing base. And, now, even its celebration of Christmas..
Our Constitution prohibited all of this: this Third World invasion, this illegal merging of corporations to wipe out competition and create international behemoths, this rule of a sovereign people by private international bankers…
It was done through government capitulation to the bankers in 1913, through bribes, blackmail and assassination and false arrest, through planted stories to damage companies and individuals, through a controlled banker-financed media, including Hollywood…’
It is the story of the capture of a great nation: it is the story of a nation that turned on its people, on all its hopes and dreams and progress.
Over these past three decades, the attack on America has been incredible. And it didn’t have to be. It wasn’t as if there was crippling change from an industrial revolution to a tech revolution; there were no major dire economic effects. Or there shouldn’t have been. At every point along the way, this aggressive attack on the nation could have been avoided or fixed by allowing the insolvent banks to go broke; by allowing competition to develop among corporations, by putting corrupt officials in jail, by auditing and then abolishing the Fed.
Economic collapse is coming. But it is not economic collapse of the nation and its people; it is economic collapse of the financial system and its international bankers.
100% correct. And don't forget the 'international free trade agreements' like TPP. These have proven to be immensely effective tools in our destruction.
the depressing thing is the way the system works, we find the truth then we ignore the data. there were congressional teams in China in the 80s to expose outsourcing to the mainland, and they found prison labor. it wasnt until 2001 that the president signed WTO despite their human rights record and the fundamental premise that there is no free market if you allow prison labor to enter the marketplace, and this on the grand scale is what happened, the outsourcing of jobs whichi mpoverished the american middle class (maybe those jobs needed to go to China, presidential candidate Carly Fiorina when she ran for Sen in CA) . wall street saw China as the wild west of business, unregulated and they pushed until they got it. TPP is just another step in the process.
The FED ensures that connected losers always win on paper.
End the FED.
If your own central bank does it and it affects only the population in your country is one thing. With the FED they are going to take it out on the rest of the world through the dollar global reserve currency status. THAT IS WHY IT NEEDS REMOVING so their problems they can deal with in their own country.
The general principle for a central bank is this...
Every now and then they have to burn the economy creating a recession to flush out a whole load of malinvestment. That should have been done in 2008 but they needed to make sure they had lifeboats for their worth. All prepared, into the lifeboats the FED screams whilst the population goes through economic hell now.
As an ordinary member of the population subjected to BOE central bank manipulation all my life but never fully understood it...
The fucking central banks have been doing this over and over and kind of puts into perspective how a person who does not do anything wrong can be screwed over. It is the central banker economic system you see, while they manipulate ordinary peoples lives are trashed.
Payback is going to be a bitch for these mothers ... to many have woken up to what has been going on.
The efficiency of the system, suppressing wages etc. to keep it all going while those priviliged have been taking the same if not more! Go and ask a banker or politician what their pay cut has been in the last 5 years ... oh they havn't ... I see.
"too many have woken up to what has been going on"
Unfortunately nowhere near critical mass as yet.
Has anyone else noticed the fervor from Progressive friends when one questions the meme that Capitalism is the problem, and that fractional reserve and central banking are the opposite of free market Capitalism?
Why do they get so livid,?
The FED has ONLY one mantra : The USD is impregnable fortress, thus the FED's ability to print is unlimited, as Fiat debasement is a non issue BY DEFINITION; like a papal doctrine of feudal times, as the Pope was deemed infallible.
So went the legend until Peace of Westphalia...
Is 2008 the antichamber to a USD demise like that of papal dogma?
If so the fiat pope is now facing the end of his hegemony.
But he HAS to fight to the bitter end! That is his brief and he has to do what it takes! Until it goes pop !
withdrawn.
If the Fed is still growing the money supply through places like Belgium, and happens to raise one of the many interest rates that exist both under and not under their control, can it be said they are truly tightening anything?
It's just another kind of head fake. They refuse to stop being doves, and they lie about it. This is as much a fuck you to everyone who has been calling them on their bullshit as it is an attempt to pretend to be doing something.
It is so funny to see all of these free-money-tit-suckers come out of the woodwork when the Fed just dings their game just a tweak. Fuck every last one of them, they are all talking their book and nothing more.
Fixed mortgage rates have gone down since the rate hike. Don't they need to sell some of their bond "assets" to effect a real change?
Pilgrim, Do ya THINK the three stooges could have constructed an atomic bomb?.......Do ya THINK the Fed could _______?...
He needn't worry anymore. It's going to happen. Therefore plan. Either stock up or bullet to the head if you'd rather not deal with it and can't blame you if you take that choice. I have both options.
I'm reasonably good at counting in 25's. So including inception the FED has been screwing the world for 5 generations. Weird thing though the very people who kick-started this Ponzi are still alive and will still be around when we on Z/H are a blot on the landscape.
A close friend who is a taxidermist confided in me that George Soros is 169 years old in Human Years but relatively young in the Reptile world.
These guys at the FED aren't stupid. They're brilliant. They're manipulating the system to crash for the globalists. There are no accidents at the top. Some of us may believe they're so dumb... how could they be that dumb... it doesn't work like that. It's all planned out. The FED has the best Event Directors eva!
www.wartornnations.net
www.wartornnations.net
www.wartornnations.net
Yeah, these people are not dumb. Evil and conniving, yes. Dumb, no.
Math is really starting to prove your right. How anyone can deny it... the inequality is unreal... and heading in a very specific direction. Everyone sees it but yet no one will do anything? Most everything that is calculated these days just doesnt even pass the sniff test. You know when math is no longer math, we are fucked. Velocity is grinding to a halt as unemployment hits 5%.. You have some major contradictions in this economy. Its all about math and the math really says they are all lying, this market is no more than one huge lie. Gold/silver demand is screaming this is all B.S. Lots of indications in my opinion there are some real rats driving the bus. Incomes from the middle class have been being transferred to the upper class by means of "FREE" Trade..ship the job overseas for a fraction of the cost and keep the difference. I call this the real HSSL that everyone missed?
The math is indicating a very sophisticated stealth demolition of the economy. Im convinced. Its not a mistake. It cant be its working too well. All the money is streamlined to the top. They play stupid, when they really "know" what is going on. They say "oops" sorry for the mistake, sorry please excuse us? Very innocent and cunning. They really need to go, I cant emphasize it enough. Simple math proves most of what they say is B.S. and make no mistake they KNOW IT.
Its a controlled demolition just like the trade towers. Buildings that tall dont come straight down when a plane hits them like they did. Its pure math and its says they lied just like everything they do. The only way to get a building to come down the way those buildings came down is to engineer it to do exactly what it did. Controlled Chaos is our government, welcome to the new America. Most people who have looked into the towers understand this. Math doesn’t lie, people do. 80-90% of our population disapprove of our Congress and Senate.. Pretty incredible math. How do they stay in?
With a disapproval rating of Congress @ 90%? These assholes should GO! Do we let it go to 99.99% before we rid ourselves of them? Oh the fun getting to 99.99%. If there ever was a reason to overthrow our government 90% disapproval of congress should be enough? Guess not.. Please give me another master. I think a large portion of our government are liars and cheats... SCUM.
Just as they put the Trade Towers on a path to come straight down, they put the economy on a "Glide" path that will drive us into the ground. At this point the US Gov is the enemy of the people.
Merry Christmas.
How do you normalize going off a cliff?
Hint: Wile E. Coyote
The FED doesn't make mistakes, they create Opportunities for their Bankster Buddies to make more profit, and give the working class the opportunity to loose everything. It's a give and take thing.
Roach may be right but for the wrong reasons.
The biggest problem (post the QEs) is the velocity of money in the real, productive economy.
QE to small community banks and the creation of state banks (like in ND) tasked to loan to small businesses at low rates may actually have been productive.
QE as applied is a gift to large banks and the wealthy while stealing purchase power and savings from people who work for a living.
["Today’s Fed inherits the deeply entrenched moral hazard of the Asset Economy. "]
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[“as the products of American industry are increasingly displaced by others, both in American and foreign markets, maintaining prosperity requires ever-rising budgetary and balance of payments deficits, which makes it steadily less attractive as a method of economic management. If continued long enough it would involve transforming a nation of creative producers into a community of rentiers increasingly living on others, seeking gratification in ever more useless consumption, with all the debilitating effects of the bread and circuses of Imperial Rome.” ]
Nichlas Kaldor -- London Times sept. 1971.
What the doctor ordered after a rate hike:
http://www.advisorperspectives.com/commentaries/20151222-pring-turner-ca...
the fed can raise rates and be accomodative (105b in RRPO) they are no longer data dependent, they can continue to raise rates without critics kitbitzing about the economic data, and they are basically out of the decision making process during the election cycle. its all pretty smart, at least for the time being. the difficult thing is the election, the voters have to be fooled into thinking they are getting someone they want. the last time we changed presidents the markets crashed and they'll probably do it again, unless the oligarchs can all decide. so far no one has handed Trump a copy of the script he is just auditioning, but if he wins, like Obama he will show up for the inaugration knowing all his lines. remember Obama acted like he would be somebody, the best thing anyone can do is either stay home or vote third party, the more obscure the candidate the better.