nightmare? she's the one that wanted to run with the big dogs, guess now she's finding the tall grass problematic
Posted on 09/20/2015 4:30:14 AM PDT by dontreadthis
Yellen has inherited a complete nightmare. Thursday’s decision to delay yet again the long-awaited liftoff from zero interest rates is illustrating that the world economy is totally screwed. There is a lot of speculation about why the Fed seems so reluctant to “normalize monetary policy”. There are of course the typical domestic issues that there is low inflation, weak wage gains in the face of strong job growth, a hike will increase the Federal deficit and then there is the argument that corporations that now have $12.5 trillion in debt. All that is nice, but with corporate debt, our clients are locking in long-term at these levels, not funding anything short-term. Those clients who have listened are preparing for what is to come unlike government which has been forced to shorten the average duration of their debts blind to what happens when rates rise, which will be set in motion by the markets – not Yellen.
Fed is really caught between a rock and a very dark place. Yes, they have the IMF and the world pleading with them not to raise rates for it will hurt other debtors who borrowed excessively using dollars to save money. The Fed is also caught between domestic policy objectives that dictate they MUST raise rates of they will bankrupt countless pension funds and international where emerging markets will go into default because commodities have collapsed and they have no way of paying off this debt that has risen to about 50% of the US national debt. By avoiding the normalization of interest rates (hikes), the Fed has encouraged government to spend far more than they realize because money is cheap. This will eventually light the fire under the economy helping to fuel the Sovereign Debt Crisis. There appears to be no hope for the Fed and they will be forced to raise rates only when they see asset inflation in equities. Then they will have no choice. This is the worst possible mess and the longer they have waited to normalize interest rates, the worst the total crisis is becoming for they will have zero control over the economy and once that is seen, holy Hell will break lose.
The marxist wench will be up to her jowls in kobe beef and caviar regardless of whatever happens to the “little people.”
As for the economy, I dare say its probably doing better than the economic indicators are showing because so much of the economy has moved over to the black market under dear leaders reign.
Exactly, zero interest rates are but another example of how the regime rigs the game to protect the child in the White House. Forget the long term harm that the current monetary policies pose, so lot as the child is made to look good.
Just watched the SF Fed banker giving his happy talk. Employment up, wages soon to follow. Interest rate hike soon, economy growing, all is good, happy happy happy.
In a word, BS
These serfs now come in the form of marginally attached labor - whether it be by agency/contract labor, guest workers, illegals, or other pliant individuals. It is easier to control someone when their livelihood can be held over them by short-term contract or threat of deportation. Such serfdom receives additional justification by being called "more competitive" - even when it reduces freedom.
It will all crash...when a conservative is elected
Yellin isn’t trapped in a nightmare.
WE are trapped in a nightmare.
Yellin is wrapped in a cuddly blanket.
textbook liquidity trap
We need a database stored on a server offshore, with liberal politicians, advisors, and media helpers and hollywood cheerleaders names, pictures, titles, agency, car model, year, color, plates, and especially home addresses. Easily accessable read only through tor. Because we need to prepare now to hold them accountable. Suddenly and soon.
Love it!
When you keep kicking the can down the road, eventually the can falls apart at some point.
How would giving people cash, or cutting taxes, reduce the 20 Trillion in debt?
I’m wondering about the effect of Trump (if he gets elected) imposing a “dedicated reduce the debt tax” of say 2% on every big ticket item imported into the U.S. In effect, Japan and China would then be paying themselves back.
Then, do the same with sales. Meaning impose a National “dedicated reduce the debt tax” of 1% on all sales in the US except groceries and prescriptions.
Then, all the foregoing only be done in tandem with:
1. Eliminating, as in closing completely, several major departments of government.
2. Constitutional Ammendment for balanced budget.
3. Term limits.
4. Judiciary reform.
5. Flat tax.
6. Former federal legislators being barred from EVER becoming lobbyists.
These six are just a sampling. There are many others.
At some point, the ONLY cure for what ails us is a balanced budget each year and putting the existing debt on a downward curve.
To accomplish the foregoing will take a massive re-education of the 47% that put this bastard in office........twice.
nightmare? she's the one that wanted to run with the big dogs, guess now she's finding the tall grass problematic
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.