Wednesday, September 21, 2011
Sick and Tired of the DELUSIONAL FED
I cannot keep writing about the FED as I am writing a book on this "august private cabal" and need to conserve my energy for this enterprise.
A link below shows just how this TWIST is being reacted to by the Repubs ---
Either way it is an attempt to BEND THE YIELD CURVE.
This is the arrogance of the FED in its self delusion that by over-meddling in the economy from the financial perspective that short term interest rates will fall.
The FED owns over $5 Trillion worth of US Debt and seems to think that by PRINTING MONEY we can somehow affect in a positive manner the REAL ECONOMY.
This is delusional to the N-th degree.
When income tax was written into law on February 14th 1913, a dollar THEN WAS WORTH 97% MORE than a dollar NOW! Forget about what a dollar could buy in terms of OTHER CURRENCIES, but what real things it could buy and the cost of bread, beer, meat, housing etc.
The picture above this post illustrates how the dollar has lost value and as a result MORE OF THEM need to be circulating in the economy, hence banks LEND more and apply ABSURD interest rates to those loans.
Further for people who are attempting to live off their savings, the interest rates offfered on their money is close to zero!
Why bother saving? Don't bother!
Why are banks offering tiny savings rates? Because banks don't need or want your money. Father FED takes care of them! They want to lend or are supposed to lend, but with their CRAPPY balance sheets and risky investments in derivatives that they hardly understand, their capital is weak and therefore they need Father FED more now than ever.
You don't need a degree in economics or business or accounting (or ANYTHING for that matter) to figure out if the OMOTS is better off now in 2011 than he was in say, 1991, two decades ago.
The reality is that most people are in DEBT up to their eyeballs and have a negative equity situation with regards to their house.
We are assured by the LSM that "we're getting out of recession" and that "green shoots in the economy are sprouting up".
What a lot of CRAP!
Most of these talking heads are paid absurd amounts of money to interview "experts" and the more their network or cable station sells in advertising, the better.
So they HAVE TO CONTINUE to tell us that "everything is getting back to the way it was". Otherwise less stuff would be purchased and less revenue from advertising would flow and they'd be out of the job!
So I am going to try not to write about the FED for a week or more.