The world hangs on every word uttered by Grandma Yellen as if she controls the world. Why doesn’t the average American see through the smoke and mirrors? The current monetary policy of the Federal Reserve is beyond ridiculous based upon history and the economic numbers being pumped out by the government. The world is so fucked up and the people so delusional or ignorant, they don’t realize the entire economy and financial system has been captured for the benefit of Yellen’s owners on Wall Street. Here is a little comparison to show how ridiculous Yellen’s policies are at this moment.
GDP growth 2nd quarter 2007 – 3.1%
GDP growth 2nd quarter 2014 – 4.6%
# of Americans employed 2007 – 146 million
# of Americans employed 2014 – 147 million
Unemployment Rate 2007 – 4.7%
Unemployment Rate 2014 – 5.8%
Fed Funds Rate 2007 – 4.75%
Fed Funds Rate 2014 – 0.10%
Money market returns for little old ladies 2007 – 4.25%
Money market returns for starving little old ladies 2014 – 0.09%
So we have an economy supposedly growing faster than the economy in 2007. We have more people employed than 2007 and according to the government and mainstream media we are adding 300,000 jobs per month. The unemployment rate has plummeted from 10% to 5.8%. Home prices have risen by 25% since 2012. The stock market is near all-time highs. Corporate profits have never been higher.
Can someone please explain to me why the Federal Reserve would need to keep interest rates at 0% if the all of the above is true. Based upon the figures from 2007, the Federal Funds rate should be at least 4%.
So is the government lying about the economic figures or is Yellen lying about the need for emergency level interest rates? Do you now understand who Yellen works for? It’s really really hard being the Federal Reserve Chairman. You have to decide whether to not raise interest rates or not raise interest rates, depending upon what Jamie Dimon instructs you to do.
Ya grandma Yellen is in control alright….. did you see that the DOW jumped 421 points today making it the biggest one day jump since QE three years ago?? Every market index was up big time today. Where did this money come from hmmm?? Obviously a nice XMAS present to the Wall St gang from the FED Unbelievable….. The insanity continues unabated.
As Martin Armstrong has stated government spending the world over is systematic.
Where else can the Government get taxes from?
Declining asset prices mean less capital gains taxes. And just whom do you think is going to buy those treasuries at those low interest rates?
Certain societies are going to have to collapse first so the American people can see the inevitability of what their government has become before any politician can even specifically suggest what needs to be cut.
Nice work if you can get it.
Borrow money at 0 % interest.
Gamble in the markets with it and grab yields everywhere.
Play derivatives games.
Draw the winners out in bonuses and stick the sheeple with the losses.
Ever get the feeling you are on the outside looking in??
Since the ‘Black Friday’ financial collapse came about the ‘Presidents Group on Working Markets’ came into effect.
http://en.wikipedia.org/wiki/Working_Group_on_Financial_Markets
The raising of fed interest combined with the changes resulting from the 2005 Bankruptcy Reform Act – specifically the doubling of minimum payments, millions of people found their “guaranteed” cheap consumer credit payments double or triple, at the exact same time the Fed rate was up to a multi-year high.
The joke is that the 2014 GDP number is absolute bullshit, as compared to the mainly bullshit one produced in ’07. Throw in the ignored real inflation – or did the Obamacare impact magically not show up in GDP? Millions and millions gained free monthly meds – and we aren’t growing faster by any means with steam.
Running an economy on mis-allocation and graft has a shelf life, much as Ayn predicted. We are in the twilight of this game, even if the majority want to believe they are seeing the first light of dawn.
What cannot continue, won’t. Good luck to us all trying to survive the mess these rich elitist bastards have created.
Paul Volcker chides banks for not being able to meet rule’s deadline
By Eric Garcia
Published: Dec 19, 2014 9:40 a.m. ET
Former Federal Reserve Chairman Paul Volcker criticized giving banks more time to divest from hedge and private equity funds.
WASHINGTON (MarketWatch) — Former Federal Reserve Chairman Paul Volcker isn’t impressed with the decision to delay a part of the rule he helped create.
The Federal Reserve announced Thursday it would give banks until 2017 to divestfrom hedge and private equity funds, which is mandated under the so-called Volcker rule of the Dodd-Frank financial reform law with the goal of trying to end risky financial activity.
“It is striking that the world’s leading investment bankers, noted for their cleverness and agility in advising clients on how to restructure companies and even industries, however complicated, apparently can’t manage the orderly reorganization of their own activities in more than five years,” Volcker said in a statement according to the Wall Street Journal.