Posted on 03/21/2023 9:30:55 AM PDT by Kaiser8408a
I feel like I am watching the Star Trek original series episode “The Doomsday Machine” as former Fed Chair and current US Treasury Secretary effectively just guaranteed ALL US bank deposits. Aka, a massive bank bailout. The episode was about a robot space vehicle that destroy planets … and anything in its path. And if it changed course to destroy something, it gradually returned to its original destructive path. Like The Federal Reseve.
But after a few days of declining Treasury yields because of the mess created by Bernanke/Yellen’s too low for too long policies, and the Biden/Congress insane spending, the US Treasury 2-year yield is up 16.1 basis points.
Whether it was politcally motivated to protect Obama/Biden or Obama/Biden’s economic recovery was terrible, The Fed only raised their target rate once before Trump’s election. And then Yellen raised rates like crazy. Only to hand her mess off to Powell who had to drop rates like a rock and massively expand the balance sheet … again … to fight Covid.
The Federal Reserve from a car on Constitution Avenue in Washington DC.
(Excerpt) Read more at confoundedinterest.net ...
if only we all had a meme for the phrase “well isn’t that special”
lol
Try to convince me the FED isn’t political. Only when forced and faced with disaster do they act otherwise.
Truly the malevolent creature from Jekyll Island.
The banks make Woke loans to please the establishment and risky loans to make money knowing the establishment will bail them out.
“Only when forced and faced with disaster do they act otherwise.”
If they never face any consequences, they never change. It’s the Democrat way.
P
Yes but the problem is the banking establishment. As a Von Mises follower my argument is that Central Banks should not be interfering in the market place. Decades of low interest rates, fought for by the politicians, has lead to high inflation. Attempts now to reign in that inflation via interest rate hikes appears to be sending the USA back into the recession.
Not to mention the RINO way as well.
I was just thinking ... KJ-P and Yellen are interchangeable ... they are both “women”, fools and consistently spout nonsense which makes them and their positions interchangeable.
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