Tag: The Fed

The Fed Just Put Gold in this Win-Win Situation

From Birch Gold Group

fed economy

Since March 23, the Fed’s balance sheet has soared like no other time in history, shooting up to more than $6 trillion.

This is thanks to the “extensive new measures” that Chairman Jerome Powell decided to deploy, as a monetary moon shot intended to avoid severe economic disruptions.

You can see the sudden and unprecedented rise in the Federal Reserve’s balance sheet below:

fred 4-17

But is this what the economy really needs? And is the Fed fueling a recovery or complete economic disaster? Let’s briefly examine these questions.

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P FOR PANDEMIC

“People should not be afraid of their governments. Governments should be afraid of their people.” – Alan Moore – V for Vendetta

Coronavirus is close to becoming a pandemic, WHO warns - The ...

“Authority, when first detecting chaos at its heels, will entertain the vilest schemes to save its orderly facade.” – Alan Moore – V for Vendetta

I wrote an article called V for Vendetta – 2011 just over nine years ago on the day after the Tucson shooting where congresswoman Gabrielle Giffords and eighteen others were shot by a psychologically disturbed lunatic, with six dying. At the time, I thought of the scene from the V for Vendetta movie where someone did something stupid and all hell broke loose. I expected a similar result from this act, but those in control of our society were successfully able to put a cork in the bottle, preserving their façade of order.

We learned shortly thereafter, through the patriotic efforts of Edward Snowden and Julian Assange, how the government was using the vilest of schemes to surveil every American through their abuse of the Patriot Act. The government has become an enemy of the people.

The Immelman Turn » Blog Archive » Giffords Assassination Attempt

It is interesting to go back and view my conclusion from nine years ago and assess its accuracy as of today:

“This country has not reached the level of control and fear seen in Orwell’s 1984 and V for Vendetta, yet. We are moving relentlessly in that direction. Surveillance, monitoring, spying, censorship, secret prisons, predator drones, and conforming to state rules and regulations put citizens further under the thumb of an all-powerful state. The freedom to dissent, the freedom to be left alone, the freedom to speak out against injustice, the freedom to disagree with your government, and the freedom to present your ideas without fear of retribution or penalty are essential in a democratic society.

The next phase of this Fourth Turning will surely include another downward spiral in financial markets as un-payable debts accumulate to a tipping point level. When ATM machines stop spitting out twenties, food shelves are bare and gas stations are shuttered, social chaos will ensue. The government will react with further command and control measures. In V For Vendetta, the government creates a terrorist incident in order to gain unquestioned control over the population. Americans will need to be more vigilant than they have been over the last ten years in keeping an eye on their government.”

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Big Banks Just Weaponized the Coronavirus Against the Fed

From Birch Gold Group

corona virus banks

The Bank Policy Institute (BPI) has offered some “helpful” suggestions for the Federal Reserve in response to imminent economic fallout due to the coronavirus (COVID-19).

“Helpful” in this case means in favor of the big banks. To begin with, a recent article on the BPI website outlines the potential problem for the banks:

The COVID-19 epidemic is projected to reduce economic activity, may reduce market liquidity, and could generate a flight to quality from risk assets to federally insured deposits at banks.

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The Fed Has Created A Monster Bubble It Can No Longer Control

Authored by Charles Hugh Smith via OfTwoMinds blog,

The Fed must now accept responsibility for what happens in the end-game of the Moral-Hazard Monster Bubble it created.

Contrary to popular opinion, the Federal Reserve didn’t set out to create a Monster Bubble that has escaped its control. Also contrary to popular opinion, the Fed will be unable to “never let stocks fall ever again–ever!” for the simple reason that the monster it has created– a monster mania of moral hazard in which all risk has vanished because the Fed will never let stocks fall ever again–ever!–is now beyond its control.

And that’s a problem for the Fed, which above all else needs control of interest rates, financial markets and the economy.

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The Fed Could Be Setting Us Up for Explosive Price Inflation

From Birch Gold Group

us inflation

Until recently, Federal Reserve Chair Powell has maintained that the Fed will operate using a “symmetric 2% inflation target.”

Simply put, that means the Fed sees 2% inflation as a level that sustains economic growth without putting too much upward pressure on prices.

But it looks as though that whole idea may be set aside, at least for now, with the potential for inflation to start rising, and quickly.

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LET’S FANTASIZE FOR A MOMENT

No………not about Stucky’s python or the lovely and intelligent ladies of TBP.

https://wedeclare.files.wordpress.com/2015/05/coming-money-trust.jpg

Let’s fantasize about a fairy tale land where there is NO central banking. A magical land where the value of your money is not devalued, against your will, every second of every day. 

Yeah, I know. Never. Gonna. Happen. So just pretend……

The reality is that money is nothing more than a representation or stand in for your labor, or, if you really want to get down to the nitty gritty, money is a stand in for the hours, days and years of your life.

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The Economic Collapse Began Long Ago

By Gerold

My forty-year old Godson was belly-aching about the lack of jobs. He whined it’s all the Boomers’ fault.

I tore a few strips off him. I asked him WTF am I wasting my time researching and writing these articles if he doesn’t read them. Since I had him cornered, I told him a few things he obviously didn’t want to hear.

We are in an economic depression. It was predicted in Strauss and Howe’s 1997 book “The Fourth Turning” [Link]  that occurs every four generations as a time of great turmoil. Their Generational Theory is a framework which explains where we are, how we got here and where we’re going. For more details see ‘Notes” at end.

This is a ‘Stealth Depression.’ The government is doing its utmost to hide it with fake statistics. Their ass media handmaidens are carrying their water telling us everything is wonderful. And, if my Godson believes the ass media, he deserves his fate.

At the bottom of this deception are fake inflation (CPI) statistics. They distort everything else because most economic data is ‘inflation adjusted.’ Consequently, when other economic data such as GDP growth is adjusted with fake inflation statistics, then those numbers are also distorted.

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Why the Feds Will Lose Their War on the Markets

Guest Post by Bill Bonner

DELRAY BEACH, Florida – The markets continue to dawdle. Not much conviction in either direction.

We’ve already looked at the War on Poverty, the War on Drugs and the War on Terror.

So let’s move on… using our new lens to look at another of the feds’ fake wars.

Dirty War

No war was ever officially declared against the markets.

But for four decades the feds conducted covert operations… a dirty war in which they’ve tried to mislead, obstruct, and suppress market forces.

They used fake money, fake savings, and fake interest rates to confuse investors, businesses, and consumers.

They didn’t say so directly, but their purpose was to give out false signals so that people would change their behavior.

“Demand” was too weak, they said. What to do about it?

They flooded the system with phony savings (credit).

Price signals were distorted. Credit limits seemed to disappear. Debt limits were eased.

Then, in 2008, the war turned hot… with the feds actively and overtly holding down interest rates to push up stock and bond prices.

In response to the crisis they caused – by encouraging too much debt in the housing sector – they claimed that the “free market” had failed.

They were just responding to the “emergency,” they said.

Soon, everybody got in on the act – expressing an opinion about how high (or low) interest rates should be.

Continue reading “Why the Feds Will Lose Their War on the Markets”

The Fed’s Biggest Nightmare: Consumers Are “Losing Faith” Their Cost Of Living Won’t Keep Rising

When you read bullshit from the corporate mainstream media like that below, you realize how right George Carlin was:

The table has tilted folks. The game is rigged, and nobody seems to notice. Nobody seems to care. Good honest hard working people: white collar, blue collar it doesn’t matter what color shirt you have on. Good honest hard working people continue (these are people of modest being) – continue to elect these rich cocksuckers who don’t give a fuck about you. They don’t give a fuck about you – they don’t give a fuck about you. They don’t care about you at all – at all – at all, and nobody seems to notice. Nobody seems to care.

That’s what the owners counted on. The fact that Americans will probably remain willfully ignorant of the big red, white, and blue dick that’s being jammed up their assholes everyday, because the owners of this country know the truth. It’s called the American Dream cause you have to be asleep to believe it.

Tyler Durden's picture

Submitted by Tyler Durden on 12/01/2014 18:30 -0500

Filed under “insane paragraph of the year,” Reuters pens one of the most-telling sentences of the year/decade/century, suggesting – as per the existential threat to the Fed’s meme – that consumers are worried that their cost of living won’t go up more?

 

via Reuters

Translation: Please dont lose faith that your cost of living will stop soaring: the Fed’s very existence depends on it.

 

h/t @RudyHavenstein