The Fed Has A Big Surprise Waiting For You

[longknife]

When an organization literally not responsible to the population of a country can make all the decisions affecting its economy, there is no way to control it.


When rate hikes are discussed, like I did two weeks ago in This Is Why The Fed Will Raise Interest Rates, most people have similar initial reactions. ‘They can’t do that, it would kill the economy, or at least the recovery’.


Ouch.


Read more @ The Fed Has A Big Surprise Waiting For You Zero Hedge

 

[Dont Taz Me Bro]

But the truth is, there is no recovery. It’s just a scene in a play. And the economy is completely shot, it only appears to be left standing because the Fed poured oodles of money into it. Or rather, into a part of the economy that it can control, that it can get the money out of again easily: Wall Street banks. And Wall Street equals the Fed.

Yeah, many of us have been saying this for a while now............

 

[C_Clayton_Jones]

Oh dear, 'The Fed,' scary.

Yet another example of rightwing paranoia and lunacy.

 

[longknife]

Oh dear, 'The Fed,' scary.

Yet another example of rightwing paranoia and lunacy.

Say that again - when it happens and the stock market sings lower than whale excrement.

 

[Mr. H.]

We are all Bozos on this bus.

 

[Manonthestreet]

O% interest is screwing millions alrdy.......the better to force people into .....the stock market

 

[ShackledNation]

Oh dear, 'The Fed,' scary.

Yet another example of rightwing paranoia and lunacy.

Somehow being against large private banking corporations is "right wing"? Interesting.

 

[HenryBHough]

I'm pretty well out of stocks in anticipation of a skyrocketing interest rate phenom. Not only will stocks plunge but all that ready cash will be just sitting there waiting to loan out at obscenely high rates. Trick is to find people stupid enough to pay them but with secure enough paychecks so as to not default. For that reason I prefer to lend to government drones.

 

[EdwardBaiamonte]

When an organization literally not responsible to the population of a country can make all the decisions affecting its economy, there is no way to control it.

1) We don't want the population making monetary decisions when the population doesn't know what monetary decisions are.

2) We don't have a democracy as long as we have a Constitution and a Fed

3) Our founders realized that common people were too stupid for a real democracy yet Democrats try to sign up stupid to vote all the time. This is a from of subversion.

 

[EdwardBaiamonte]

Oh dear, 'The Fed,' scary.

Yet another example of rightwing paranoia and lunacy.

submoron liberal is happy to give all the power to govt having never looked at human history!

 

[EdwardBaiamonte]

Oh dear, 'The Fed,' scary.

Yet another example of rightwing paranoia and lunacy.

Somehow being against large private banking corporations is "right wing"? Interesting.

yes and poor Clayton has no idea that the Fed caused the Great Depression and current Great Recession!!

 

[peach174]

Yep!
They announced that they are going to stop QE and when they do look for everything in prices to go up.

 

[EdwardBaiamonte]

Yep!
They announced that they are going to stop QE and when they do look for everything in prices to go up.

they are stopping slowly, over years perhaps, and there is no reason to expect prices to change.

 

[ShackledNation]

Yep!
They announced that they are going to stop QE and when they do look for everything in prices to go up.

Why would stopping QE cause prices to go up?

 

[EdwardBaiamonte]

Yep!
They announced that they are going to stop QE and when they do look for everything in prices to go up.

Why would stopping QE cause prices to go up?

QE is printing money which would if anything cause prices to go up. Stopping QE would have the opposite effect, if anything. A liberal will know zip about economics. That is why he is a liberal. Liberal=stupid, sadly.

 

[Kimura]

When an organization literally not responsible to the population of a country can make all the decisions affecting its economy, there is no way to control it.


When rate hikes are discussed, like I did two weeks ago in This Is Why The Fed Will Raise Interest Rates, most people have similar initial reactions. ‘They can’t do that, it would kill the economy, or at least the recovery’.


Ouch.

QE is printing money which would if anything cause prices to go up. Stopping QE would have the opposite effect, if anything. A liberal will know zip about economics. That is why he is a liberal. Liberal=stupid, sadly.

Um....QE isn't printing money, it's an asset swap.

The FED purchases Treasuries and sells the dollars it creates. After this asset swap occurs, the primary dealer that sold the Treasuries to the FED now has cash as opposed to bonds, and the FED now has Treasuries as opposed to cash.

QE is a change in the overall asset composition of government sector liabilities and their term structure. There is a ZERO increase in non-government net financial assets.

 

[HenryBHough]

True that actual money isn't being printed.

It's all smoke and mirrors. Just figures typed into a computer. The computer that is programmed to destroy your savings.

 

[Kimura]

True that actual money isn't being printed.

It's all smoke and mirrors. Just figures typed into a computer. The computer that is programmed to destroy your savings.

It's actually not smoke and mirrors at all.

How is the computer coded to destroy our savings?

 

[EdwardBaiamonte]

Um....QE isn't printing money, it's an asset swap.

its called printing money or dropping new money from a helicopter, as in "helicopter Ben". The purpose is to preventing deflation in a slowing, recessed, or depressed economy. Its a good thing to do for sure as long as they take they money back out of the economy if it causes inflation.

 

[EdwardBaiamonte]

True that actual money isn't being printed.

It's all smoke and mirrors. Just figures typed into a computer. The computer that is programmed to destroy your savings.

It's actually not smoke and mirrors at all.

How is the computer coded to destroy our savings?

the target is 2% inflation and they mostly exceed it so they do destroy savings.