Posted on 04/19/2016 11:48:41 AM PDT by Kaslin
Last week, President Obama and Vice President Biden held a hastily arranged secret meeting with Federal Reserve Chairman Janet Yellen. According to the one paragraph statement released by the White House following the meeting, Yellen, Obama, and Biden simply "exchanged notes" about the economy and the progress of financial reform. Because the meeting was held behind closed doors, the American people have no way of knowing what else the three might have discussed.
Yellen's secret meeting at the White House followed an emergency secret Federal Reserve Board meeting. The Fed then held another secret meeting to discuss bank reform. These secret meetings come on the heels of the Federal Reserve Bank of Atlanta's estimate that first quarter GDP growth was .01 percent, dangerously close to the official definition of recession.
Thus the real reason for all these secret meetings could be a panic that the Fed's eight year explosion of money creation has not just failed to revive the economy, but is about to cause another major market meltdown.
Establishment politicians and economists find the Fed's failures puzzling. According to the Keynesian paradigm that still dominates the thinking of most policymakers, the Fed's money creation should have produced such robust growth that today the Fed would be raising interest rates to prevent the economy from "overheating."
The Fed's response to its failures is to find new ways to pump money into the economy. Hence the Fed is actually considering implementing "negative interest rates." Negative interest rates are a hidden tax on savings. Negative interest rates may create the short-term illusion of growth, but, by discouraging savings, they will cause tremendous long-term economic damage.
Even as Yellen admits that the Fed "has not taken negative interest rates off the table," she and other Fed officials are still promising to raise rates this year. The Federal Reserve needs to promise future rate increases in order to stop nervous investors from fleeing U.S. markets and challenging the dollar's reserve currency status.
The Fed can only keep the wolves at bay with promises of future rate increases for so long before its polices cause a major dollar crisis. However, raising rates could also cause major economic problems.
Higher interest rates will hurt the millions of Americans struggling with student loan, credit card, and other forms of debt. Already over 40 percent of Americans who owe student loan debt are defaulting on their payments. If Federal Reserve policies increase the burden of student loan debt, the number of defaults will dramatically increase leading to a bursting of the student loan bubble.
By increasing the federal government's cost of borrowing, an interest rate increase will also make it harder for the federal government to manage its debt. Increased costs of debt financing will place increased burden on the American people and could be the last straw that finally pushes the federal government into a Greek-style financial crisis.
The no-win situation the Fed finds itself in is a sign that we are reaching the inevitable collapse of the fiat currency system. Unless immediate steps are taken to manage the transition, this collapse could usher in an economic catastrophe dwarfing the Great Depression. Therefore, those of us who know the truth must redouble our efforts to spread the ideas of liberty.
If we are successful we may be able to force Congress to properly manage the transition by cutting spending in all areas and auditing, then ending, the Federal Reserve. We may also be able to ensure the current crisis ends not just the Fed but the entire welfare-warfare state.
IMHO, a contrived state of emergency..
It was all nonfiction up till this point.
Negative interest rates are not a hidden tax on savings. They are an open tax on savings. The hidden tax on savings is inflation plus taxation of interest.
All is going to plan my Lord. The rebellion will be crushed with our new weapon.
She said, “I can put the crash off until after the election.”
Secrets—just more indication of a land of the free. Just like a trade agreement.
Landlords must rent to jobless felons!
Banks must make loans to the indigent!!
Illegal aliens must be granted citizenship!!!
The employed must hand their earnings to the unemployed!!!
It’s the only way to save the economy!!!!!
Obama’s twisting every direction to avoid the lack of recovery from the downturn of 2007, the continued recession since his taking office, becoming recognized as part of his legacy. They are playing stonewall tactics to hold up discovery, using resources behind the scenes, to reach the goal line and foist the official recession onto the next administration.
At that point as by magic, the true numbers for employment, the sad shape of the economic outlook, and the burden of national debt will be newsworthy...20 Jan, 2017.
I think she needed to tell Obama his 7 year great recession was getting worse.
Even local political leaders try to beat the economy is doing great drum. :(
That she can NO LONGER hold back the financial dam about to burst with BULL$HIT prattle.
She also, more than likely, reminded him that if ANYONE gets a look at the FED'S books then the show is also most certainly over.
Looks like that beach ball head needs some air, immediately. Signs of deflation!
Yellen-”My dough’s all in Swiss accounts, you?”
Obama-”Yep.”
Fiat, unbacked currency and the Soviet-style central-control of our money supply are the absolute bedrock and foundation of progressive-left government. Without this control, every leftist, nanny-state social engineering scheme would crash.
Eliminating the Fed should be the #1 goal of every conservative who wants to take back this country.
“My recommendation is to buy land in Cuba.” -Yellen to Obama and Biden
“Yes Sir”
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