The only solution is to print more money! /Alan Greenspan
Strong job growth? I don’t think so.
The interest rate is being kept at zero because otherwise the world economy will collapse and it will be Obama’s to deal with. Eventually, the economy will collapse anyway, but the objective is to make the comparative good times last until Obama is out of office.
When the economy collapses the blame will fall on the Republicans.
It is time to make the politcal parties pay for what they have done... Fine each party 99 % of their contributions until there is no debt
As though any of these czars actually care . . . .
Hiding problems is one of the few things big government excels at. They have hidden a multitude of sins behind a cheap money policy.
Yeah its a problem alright. I am not saying I agreed with the bailouts, but I understand it. The banks got themselves jammed up and the system needed to be cleared and lubricated so that money could move again. The dollar “broke” as it were, with people selling dollar deposits for less than $1. It was a bad way.
But then they went and did QE, QE2, QE3 and so on. Now this had many motivations, some of which was to boost the economy - to avoid deflation which this central bank fears more than anything. They also wanted the stock market to go back up because everyone’s savings is tied up there like it or not. They also wanted housing market to recover for similar reasons.
But if they were believers in “trickle down” then they probably aren’t anymore. The numbers are all ‘damned lies’ so to speak. Unemployment is down, but it is down by moving millions and millions into disability and welfare or early retirement. Dollar is strong, but mostly because every other currency is worse. They say we have 2% inflation but this number has been revised just about every quarter since 2008 and now with oil prices and commodity prices sunk input costs will drop and this will feed some profits in some areas but that just means prices for finished goods will stay competitive and that means inflation is unlikely.
The QE money went to banks, insurers, fatcats. Any regular Joe try to get a home loan since 2008? Its a little easier now but it has been very difficult. If you want the economy to grow you need inflation and if you want inflation you have to drive demand for goods and services. To do that the people need cash. Welfare, disability and early retirement income is not enough to stimulate the economy and anyway it it requires bleeding the cash off the productive to give it to the unproductive. As a closed loop system it cannot possible benefit the economy, except for the fact that FedGov prints or borrows $1 trillion more each year than it collects. That could cause inflation but isn’t. So imo the magnitude of the problem is clear: With QE and deficit spending we still have very low or no inflation. That is bad news. Its almost a liquidity trap.
There are at least 2 ways out. 1) give every taxpayer cash or 2) cut tax rates significantly (basically the same thing, just difference of degree and progression).
Lies and damned lies unemployment? Economic growth? Who the heck are they kidding
Many of us have been saying for years that all of this can not continue. It appears the powers that be have messed things up so badly that when it does blow, it is absolutely going to ruin the country for the rest of our lives, anyway.
You all a-holes wouldn’t maybe think of cutting big worthless gub mint now would ya?
Nahhh,that might just work.
The author assumes she cares that it is this bad; she is a 0bama clone commie; as long as she lives in her academic, Marxist bubble, who cares? Afterall, they are the smart people and know what is best, so they in their hypocritical, twisted minds, keep their money and not share it in this marxist scheme. Negative interest rates are coming.
I’ve been of the opinion for years that the Fed will not raise rates. Not just for years, maybe for decades.
Why? Because to do so would make the Government’s debt unaffordable and would endanger the sustainability of the Entitlement state.
In fact, since entitlements and the debt are only growing, it’s a good bet that interest rates will have to go lower, even negative. At zero interest (ZIRP), the Government could borrow an unlimited amount of $$ without penalty. At negative (or NIRP) rates, the Government would actually make $$ off its debt.
Why would anyone pay to hold Government debt? In periods of extreme uncertainty or volatility, it might be better to sacrifice 1% of your wealth per year for relative stability vs. risk losing a lot more in the markets. In short, to minimize expected losses.
Of course, NIRP and even ZIRP is effectively a wealth tax. And the best part (for the bureaucrats) is that it does not require any legislation to implement.
Rats put in place thier own patties with bullseyes on thier back and when the shtf they are told plead the 5th or else
End the Fed and the problems go away...
Keynesian economics completely failed. And once you comitt to that road, wwhen it fails, you are screwed. You can’t put the keynesian policies back in the tube.
They borrowed and spent, rinse and repeat, because Keynesian economic theory said there is a multiplier >1 effect on the economy. And because it felt good to spend, spend, spend. Mainly the latter. The former gave them an excuse.
Problem is, the multiplier is actually <1 (as Friedman and Austrian schools proved). Drove up the debt, while actually harming the economy, permanently. There is no way out. Divide by zero. Tilt.
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.
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.
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.
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