The Fed: Economy is Gloomy because Americans are “Hoarding Money”

Canada Free Press ^ | 09/04/14 | Alan Joel

[Sean_Anthony]

Investing money in or starting small businesses-- Backbone of America

In a moment of recent hand-wringing, the Fed examined the question of why inflation has stayed extremely low in the United States despite all the efforts of quantitative easing money pumping. Their answer: American consumers are mainly to blame.

Yes indeed. In a paper released this week by the St. Louis Federal Reserve, the Fed cites “low level of money movement in large part on consumers and their “willingness to hoard money.”. To be fair, the paper also criticized its own policies as well, suggesting that the has they have “reinforced the recession” with their “excessively low interest rate policy”.

However, “hoarding money” is seen as the main culprit and attributable to two factors:

A (gloomy) economy after the financial crisis.

[cashless]

And of course by Americans, they are referring to the banks right? That is where all the Trillion$ we poor slobs we paid in taxes and inflation wound up. Only the .1% and .01% made significant wealth increases and they are all friends with the bankers ESPECIALLY the Federal Reserve bandits.

[Rummyfan]

Every day there is some statement released by the federal government that indicates that the pols and bureaucrats think that America would be just wonderful.... without Americans!

[Diana in Wisconsin]

Canned goods. Chocolate. Thick socks. Cigarettes & TP for bartering. Sterno. Sturdy boots. Road Flares. Concertina wire. *SMIRK*

[factoryrat]

How in the hell can Americans hoard money when 3/4ths of us are living from paycheck to paycheck? And that money isn’t being blown on luxury items either. Utilities, fuel, food, and housing eat up the majority of the money most people earn. And low inflation? Are you kidding me? Been to a grocery store or gas station lately?

[TurboZamboni]

$400 is more than our gubmint thinks you should be allowed to keep.

[PATRIOT1876]

Wot an idiot!

Did this guy have a brain when he was born?

Was it replaced by a golf ball?

[notdownwidems]

It could be that people just don’t have any money to spend

That's what 'Slow Joe' Bite-me said, just the other day! Of course his prescription blamed it on the evil rich, those other than him, I mean!

[Mr. Jeeves]

“What prudent merchant will hazard his fortunes in any new branch of commerce when he knows not that his plans may be rendered unlawful before they can be executed?” — James Madison

[Uversabound]

And of course ammo and more ammo

[Wyatt's Torch]

I’ve pointing to velocity for years...

And it’s why QE was the right thing to do.

[Jim from C-Town]

Work for the St. Louis Federal Reserve do ya?

[Jim from C-Town]

Gee, you sold the idea of looking for the article so well, I decided not to care enough about another BS article about another BS study from a Quasi-government monopoly.

The Federal Reserve of St. Louis is no different than that of Dallas, Cleveland, or San Francisco a bunch of seat filling bureaucrats that have no more knowledge about the economy or the concept of how a market operates than your average Obama drone and a damn sight less than your average Obama crack dealer.

[Jim from C-Town]

http://canadafreepress.com/index.php/article/65788

here is your correct link.

[Some Fat Guy in L.A.]

“Young lady, did you hoard all that money by yourself?”

“No sir - my sister whored some of it too”

[HP8753]

Hoarding money? Yep that's me.
They must be talking about the blue quart jar for pocket change on my dresser.
That is the only money I can afford to hoard.