The Fed Is A “Pickle”

Breaking news: The Wall Street casino created another all-time high for the Dow during the week ending February 14. Then it fell 35% in March.

The “pickle” description is explained below. Stay tuned.

The Federal Reserve is monetizing bonds—directly funding the federal deficit because congress and the administration spend more than their revenues. The coming recession will increase the shortfall, expand debt and force more monetization. Stagflation anyone?

Corporations, individuals and governments can ill afford higher interest rates. Expect the Fed to monetize at low-interest rates to fund government expenditures. QE4ever is happening because it must.

What other gambles exist in the Wall Street casino?

  • The Fed bets it can monetize via QE4ever and create minimal consumer price inflation. If not, the BLS will massage statistics.
  • The Fed bets it can increase its balance sheet, aid hedge funds, feed Wall Street banks, please President Trump, buy off Congress, and keep its position of power and influence. Based on a century of evidence, they can, for a while longer.
  • The Fed bets it can levitate the stock market and boost the economy long enough to reelect President Trump in November 2020.
  • The Fed “prints” currency units and those currency units buy congresspersons, presidents, media corporations, the military-industrial-security complex and everyone important. The Fed is betting it will last nearly forever.
  • The Fed bets they can continue their “take from the poor and give to the rich” program of controlled dollar devaluation for many more years.
  • The Fed bets that “Federal Reserve Notes” are better than gold because they are “the only game in town,” even though gold retains its value and dollars buy less every year, as planned.
  • The Fed bets the existence of Fort Knox gold is irrelevant. Total value, at current prices, is less than $300 billion, and the Fed created more than $300 billion from thin air in the past several months.
  • The Fed bets it can plan to normalize their balance sheet, even though normalization would create a depression. Plans are not facts.
  • The Fed bets it can avoid deflation and manufacture enough, but not too much, consumer price inflation. Doubtful.

IN SHORT, THE FED IS A GAMBLER.

The politicians and economists at the Fed are gambling with the health of the economy, purchasing power of the dollar, individual savings, Fed credibility, pension funding, and retirements. The gamble will work poorly for most people, but the Fed will protect the political and financial elite.

1 2 3 4
View single page >> |

Disclosure: None. 

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.