Message Matters: Trump Succeeded, Yellen Failed

Newsmax ^ | February 12,2016 | Larry Kudlow

[Hojczyk]

Most of all, a clear message tells voters what a candidate believes and where he or she wants to take the country. Ronald Reagan was the master of the message. Campaigning on a few key points, he told America how he was going to rejuvenate the economy and defeat Soviet communism. He didnt spend much time on detail. But over and over he repeated his strategic message. It worked.

The two biggest events this past week were Donald Trumps landslide in New Hampshire and Janet Yellenâs testimonies before Congress. Trumpâs message succeeded. Yellenâs failed.

When I interviewed Trump on the day before the primary, he emphasized his positive message of optimism, growth, and national security. In recent weeks, he has talked about how America has been losing key battles around the world, whether its ISIS, Russia, Iran, China trade, immigration, or the declining economy. And he has loudly proclaimed: If you elect me, we will start winning again. Everywhere.

Asked what a President Trump would do about the risk of recession, he reeled off a series of tax cuts, deregulations, and federal budget cuts. He knows the country is in revolt against Washington, D.C., and he plays to that with his program.

He talks about oil independence and opening up federal oil fields.

He talks about bombing ISIS oil trucks.

[Robert DeLong]

he reeled off a series of tax cuts, deregulations, and federal budget cuts. He knows the country is in revolt against Washington, D.C., and he plays to that with his program.

this can't be, everyone knows he is a liberal. /sarcasm

Go Trump

[ChildOfThe60s]

Not only are we in revolt against DC, we are in open revolt against the Republican Party, which is nothing more than a slavish subsidiary of the DNC.

[Flick Lives]

Before the House this week, Yellen acknowledged that the Fed's forecast and polices may not be working. (What an understatement.) She pointed to stock market declines and higher credit-risk interest rates. And when asked whether the Fed was changing its upbeat economic view that would lead to more rate hikes, she replied, "Maybe, but the jury is out."

Oil prices and inflation are falling. So are profits. No clear message.

The next day before the Senate, not only did Yellen back off additional Fed rate hikes, she raised the issue of pushing short-term interest rates into negative territory. Woah. The flip-flop of flip-flops.

That policy hasn't worked in Europe or Japan, and it won't work here. It would destroy savers, again. Banks will go into short- and medium-term Treasuries, which at least have a positive yield, rather than make loans. And negative rates will crush net interest margins for banks.

Having raised rates at just the wrong moment, the Fed now ponders the next bonehead move. Our best and brightest financial wizards will never figure out the Fed is not the solution; it's the problem.

[Liz]

Having raised rates at just the wrong moment, the Fed now ponders the next bonehead move. Our best and brightest financial wizards will never figure out the Fed is not the solution; it's the problem.

Amen.

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Course anytime the Fed is named, I go ballistic....and here/s why.

Obama and the rest of his admin were the kingpins of Chicago criminal politics ensconced in our WH. The stench from the Chicago sleaze permeated the putrid Capitol Hill air... starting w/ Obama's COS Rahm Emanuel.

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THIS MADE ME LAUGH OUT LOUD shortly after quitting his powerful WH job as Obama's COS, Rahm held a presser declaring he "just remembered" he really, Really wanted to be Mayor of Chicago. Then Rahm announced he had magically "raised" $30 million for his campaign in "just a matter of weeks." (waiting for hysterical laughter to die down).

Ya gotta wonder how much the cunning onetime Wall Streeter wired offshore when Obama put Rahm--in a dual role---as his COS....... AND in charge of the entire US Treasury.

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BACKSTORY---THE KINGPINS OF CHICAGO CRIMINAL POLITICS IN OUR WH wasted no time.....they had a stranglehold on the Census, AND the US Treasury, from day one.

The minute Obama/Valerie/Rahm/Axelrod/Geithner, and that Practiced bunch of Chicago criminals, landed in the WH they did two things that were apparently crucial to their evil plans

(a) they took control of the US Census;

(b) Obama placed his COS Rahm Emanuel in control of the US Dept of the Treasury (cabinet-level agency oversees IRS).

THE SMOKING GUN---WSJ REPORT--On Jan 20, 2009 Timothy Geithner was appointed Obama's Secy of the Treasury. But within three weeks, the Obama White House tightened its grip on Treasury. Obama put his COS, Rahm Emanuel, in charge of Treasury---Rahm Emanuel's dual role was an unusual move.

When he got to Treasury, WH COS Rahm Emanuel was so involved in the inner workings of the Treasury that the phrase "Rahm wants it" had become an unofficial mantra among subservient govt staffers, prostrate in obeisance, scurrying to accede to Rahm's wishes, according to Treasury government officials. Reported by WSJ / 05/31/09

SOURCE http://online.wsj.com/article/SB124113406528875137.html

[Liz]

EXCERPT---FOURTEEN TRILLION DOLLARS Behind The Real Size of the Bailout; A guide to the abbreviations, acronyms, and obscure programs that make up the $14 trillion federal bailout of Wall Street
SOURCE motherjones.com
Mon Dec. 21, 2009 12:23 PM PST

The price tag for the Wall Street bailout is popularly put at $700 billion—---the actual size of TARP--the Troubled Assets Relief Program. But TARP is just the best known program in an array of more than 30 overseen by Treasury Department and Federal Reserve that have paid out or put aside untraceable money to bail out financial firms and inject money into the markets.

To get a sense of the size of the real $14 trillion bailout, see MJ chart at web site. A guide to the pieces of the puzzle includes massive untraceable Treasury Department bailout programs.

Money Market Mutual Fund: In September 2008, the Treasury controlled by Obama/Emanuel announced that it would insure the holdings of publicly offered money market mutual funds. According to the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), these guarantees could have potentially cost the federal government more than $3 trillion [PDF].

Public-Private Investment Fund: This joint Treasury-Federal Reserve program bought toxic assets from banks and brokerages—as much as $5 billion of assets per firm. According to SIGTARP, the government's potential exposure from the PPIF is between $500 million and $1 trillion [PDF].

TARP: As part of the Troubled Asset Relief Program, the Treasury controlled by Obama/Emanuel made loans to or investments more than 750 banks and financial institutions. $650 billion has been paid out (not including HAMP; see below). As of December 21, 2009, $117.5 billion of that has been repaid.

Government-sponsored enterprise (GSE) stock purchase: The Treasury controlled by Obama/Emanuel bought $200 million in preferred stock from Fannie Mae and another $200 million from Freddie Mac [PDF] to show that they "will remain viable entities critical to the functioning of the housing and mortgage markets."

GSE mortgage-backed securities purchase: Under the Housing and Economic Recovery Act of 2008, the Treasury controlled by Obama/Emanuel may buy mortgage-backed securities from Fannie Mae and Freddie Mac. According to SIGTARP, these purchases could cost as much as $314 billion ---SNIP---.

LONG READ---go to web site to read more and checkout the shocking financial charts.

SOURCE http://motherjones.com/politics/2009/12/behind-real-size-bailout

[Arm_Bears]

I’m still trying to get my head around the concept of negative interest rates.

With positive interest rates, the borrower pays interest to the lender—Does the lender pay interest to the borrower when rates are negative?

Don’t laugh—I read last week where DC was considering paying people to obey the law.

[the_daug]

Reagan had double digit inflation and interest rates. Retirees could live off the interest paid out on cds. I had a great grandmother able to pay for nursing home care on the interest of her cds. She wouldn’t do that now. Reagan told how he planned to get government out of the way so Americans can be great. That cutting marginal rates into three tier cutting capital gains so people with capital could move with out taking a tax hit. I thought it hubris for Donald to say he was going to make America great again.

[virginia9000]

GO TRUMP 2016! Kudlow gets it. Hears it. States it clearly!

[nascarnation]

In September 2008, the Treasury controlled by Obama/Emanuel announced that it would insure the holdings of publicly offered money market mutual funds.

As I remember it, Caliph Baraq didn't take office until Jan 2009.

[huldah1776]

Imagine someone who has everyone of his employees and an ex sign non-disclosure agreements, uses his lawyers to intimidate everyone, and enjoys suing being president. What do you think will happen? Will that person give up power and abolish the FED as many want?

[the_daug]

So he used the act in his administration?