Fed Official Admits Zero Interest Rate Undermined Economy: “QE Has Been Ineffective”

by | Aug 19, 2015 | Commodities, Headline News | 57 comments

Do you LOVE America?



    Today, with the United States and the globe approaching another financial cliff, officials from the Federal Reserve are beginning to acknowledge the colossal failure of their quantitative easing program that was instituted in the wake of the 2008 economic collapse.

    The Vice President of the St. Louis Federal Reserve branch stepped out to criticize the role that quantitative easing has had on the floundering economic recovery. CNBC reported:

    In a white paper dissecting the U.S. central bank’s actions to stem the financial crisis in 2008 and 2009, Stephen D. Williamson, vice president of the St. Louis Fed, finds fault with three key policy tenets.

    Specifically, he believes the zero interest rates in place since 2008 that were designed to spark good inflation actually have resulted in just the opposite. And he believes the “forward guidance” the Fed has used to communicate its intentions has instead been a muddle of broken vows that has served only to confuse investors. Finally, he asserts that quantitative easing, or the monthly debt purchases that swelled the central bank’s balance sheet past the $4.5 trillion mark, have at best a tenuous link to actual economic improvements.


    “There is no work, to my knowledge, that establishes a link from QE to the ultimate goals of the Fed—inflation and real economic activity. Indeed, casual evidence suggests that QE has been ineffective in increasing inflation,” Williamson wrote.

    It seems highly significant that a Fed official is fessing up to the detrimental role of his mother organization.

    In this video, Gregory Mannarino argues that this internal criticism and public condemnation of Fed policy is a ‘bombshell,’ revealing the weakness of the Fed that critics have long known were there:

    What QE has done is put cheap money directly in the hands of the megabanks who caused the crisis, on the pretext that they would trickle down and stimulate the economy. Only the money was invested into its own choice vehicles, with a spending spree driving up asset prices out of the realm of reality and putting homes, loans and investments out of the hands of the crumbling middle class.

    Meanwhile, insiders and cronies have multiplied their wealth and a silent inflation has washed over with a tugging undertow dragging down many who are caught up in drowning debt.

    Mannarino discussed how the Federal Reserve, a private agency given a private monopoly over the money supply by government, has created a time bomb or debt bomb, waiting to explode a burden cost upon people for generations to come.

    Meanwhile, as these financial panelists admitted years ago, the market has long since become enslaved to the central banks – there is no free market, and everyone is going to hurt when the music stops.

    The crazy thing is, nobody in charge knows how to stop the thing, or keep it from crashing.


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      1. When the parasitic tribe controls the money supply and creates corrupt powerful elite class and criminal puppet Governments making this planet a big prison for regular and honest people then ELIMINATE THEM by all any any means on an international level.

        They are cancers as they have been throughout history while blaming others for their crimes.

      2. Fed dissolves itself in ….3…2…1….

      3. well, since we all kinda know QE wasn’t about what it was said to be, we should now applaud the biggest scam in known history of the world…

      4. These controllers are nothing more than warm turds……………with corn. If every person in this country stopped all debt payments at once, than game over now.

      5. Oh gee.. pouring $ on a bonfire puts it out! ugly times coming…. get ready.

      6. No, they will have to be drug kicking and screaming from their high perch…..

      7. The answer to fix the economy can be found in the book by Dr Edwin Vieira Jr titled “Pieces of eight.” Article 1, Section 10, Clause 1 was written for a reason.

        The American people have the monetary system and government they wanted. Too bad they didn’t understand it.

      8. Just another lie in a fascist shithole built on fantasy and lies.


        They Print train loads of free cash for the banksters, and tack that debt on the American people. Fn ZOG Fed needs to be in Prison Camp FEMA right now.

        If Obama was smart he’d let the debt default and print new currency with out any ZOG Fed control. Does he have the balls or do we need a real Pres Trump to take action.

      10. And I simply don’t care. Im debt free. I could care less about anyone who owes money. The fact is when you buy on credit its not really yours. Until you make the very last payment your nothing more than a glorified renter. Im tired of my hard earned saved cash having to unfairly compete against borrowed money.

        • Old Coach. You may not care cause you are debt free like me too, but what about your debtor neighbors? When they crash they will come to you who has more, looking for help. You should care.. They will be a ZOMBIE threat next door.

          Id like to see all US Debt wiped off the books period and jail the banksters like they did in Iceland.


          • I don’t want to see the debt erased. The folks who went into debt wherent forced at gunpoint. The willingly signed the loan papers. That’s not fair to folks like me who saved and paid cash. Let the deadbeats suffer from their fiscal irresponsibility. Folks in debt gambled that they could somehow pay. and if they lost that gamble that’s tough they learned a lesson from the school of hard knocks. I want that debt to remain attached to them until they die and probate collects what it can get. Forgiving the debt is rewarding folks who have made poor decisions and done the wrong things.

          • I love this! He’s in such a hurry to run me down that he replies to a different poster thinking it me! LOL !

            Well, WWT, let me just say that you haven’t clue #1 about what the Fed is and how it works. Since 2008 they’ve been doinig two basic things:

            1. Buying up bad loans to help keep commercial banks solvent. This doesn’t create new money, it just relocates it.

            2. They’ve been buying vast amounts of US Treasuries, to keep the US Government “funded”. This does create new money, but it ain’t the Fed’s fault. Get the Halfrican and Congress to quit overspending a trillion or so per year, and that money creation will stop immediately.

            Thing is, Federal deficit spending is now something like 6% of the GNP. Halt that, and you get instant depression, which will trigger debt defaults in the private sector. Deflationary spiral. A lot of people who aren’t prepared get hurt, or die. No politician wants to be there when it happens, so they just keep borrowing, hoping that when the Black Swan finally knocks the whole thing over, they can blame the Jooos. Or something.

        • Old guy you’re right in many ways but you are a debt slave. If you have a house and you’ve paid it off,well,you don’t own it because the gooberment has a permanent lien on it in the form of property taxes . You house is subject in many states to eminent domain laws which the SCOTUS says can be confiscated and given to someone who will pa more in taxes .

          Until a person can sit on a piece of property and never worry about it being taken due to taxation by the gooberment they are never truly debt free .

          • I get a homestead exemption on my house. I don’t pay any taxes on it. If for some reason I cant remain I will burn everything. I own several places. In fact I reciently bought two more places at the Arkansas commissioner of state lands tax forfeiture auctions. go to COSL for info. Yes the five civilized tribes where dispossed of their land. It could happen to me? However no banker will evict me. No neighbor is welcome. They better pay attention to the no trespassing signs. It would not pay to climb my fence. I already have built a reputation as a mean curmudgeon. Ive prepared to take care of me & mine. Others need to do the same.

            • Unfortunately your homestead exemption can be revoked at the drop of a hat by the very same government who gave you the exemption.

              • so they revoke the exemption? taxes here are very reasonable. they only put on the exemption because of duress. there was a petition measure being brought out that would have completely elemated the property tax. the legislature knew it would make the ballot and be passed. so the put on the exemption as a compromise with the petition backers. Many rich influential folks and members of the state legislature own much of the land here. They are not going to raise their own taxes. Our property taxes pay for many things we all benefit from the roads law enforcement ,shools,fire dept, the local hospital ,library etc. We are not illinoise where the property taxes pay for lavish pensions for government. o parasites. our property tax rates are not set by the state officials. the state doesn’t receive a penny from the property taxes. the tax rates are set by the elected county JP,s and the measures are then put on the ballot to be voted on. the state goverment is funded by sales taxes and fees & permits ect. Arkansas is one of the few states that is in good financial shape. And out elected officials are fiscally responsible. We have a balanced budged clause that not even Bill Clinton could circumvent. The state cannot spend more than the revenue it takes in.

        • Exactly Old Guy … exactly. Well said and so true.

        • good for you sir, my hats off. Still working hard to get to that point myself.

      11. America’s only way out is to let it crash and burn and declare the dollar dead and print a new currency under the US control, not the ZOG FED Bankster loan sharks. There would be a 5 to 10 year shake out pain. But it needs to be done ASAP to save our Country from total Slavery. Obama need to put into action JFK’ s Executive Order EO-11110.



        • I refer you to my post above.

      12. If the FEDS go after Anonymous’s money in my safe, they will be met with the Ventilation team at the door. Anonymous has extensive experience and training from watching videos, and typing threats on Anonymous’s key board.

      13. NO KIDDING!!!!!!

        Our economy s like having a piece of wood stuck though our hand, and it is getting infected.

        The problem is that they are trying to treat the infection and not the problem, “the piece of wood”.

        “Stupid is as Stupid does”!!!!

        Off Topic.
        I was and have been watching the TV program Falling Skies.
        The program reminds me of our country and the world. You have the Overlords= Washington D.C. You have the Skidders= the welfare queens (eaters). Then you have the patriots= the folks that are fighting back.
        I also watch the Walking Dead. The Government is gone because the Zombies/Leaches have eaten them, and all you have left is the Survivors that are fighting them.
        The one that scares me the most was Jericho. They pull that one off as a false flag and we wouldn’t know the difference for years.

        Where I’m coming from is TPTB always tell us what they are going to do before they do it. If these programs have anything to do with our future? LOOK OUT!

        With everything that is suppose to happen in Sept. Just makes one think.


        • I don’t watch much tv but have been watching Jericho. Sure looks like what we have to look forward to. And more.

        • Hey Sgt Dale

          Is it like this take on the walking dead?

          you tube

          I was a Sheriff

          • May I very very strongly recommend:

            1. Know that artificial womb thing they almost got perfected? Throw a ton of money at that project. Now.

            2. What’s the best AI you got? Throw a ton of money at that project. Now.

            3. Put the AI, the artificial wombs, and a bunch of frozen genetic material in orbit. Make sure the orbit is unlikely to decay for the next 40,000 years.

            Now would be good.

            Insurance policy.

        • Sgt., you’re not the only one that noticed the similarities between “The Walking Dead, Falling Skies” meme.
          What gets me about “The Dead” is none of those twits think to find a shortwave radio. Ugh.

          But for the present-lampposts and baseball bats applied liberally about the head and shoulders of the bastas that caused this crap would be a start. Yeah, we’d probably would have to dig up a few graves to get the others that planned this stuff in 1913 (or earlier?).
          However-it would be sufficient for them to off themselves with nail guns or walking off balconies on Walk Street.
          Be well.

          • Auto-correct sucks. *walk*.

        • Sarge, when someone from the Fed admits to the truth, that is scary. I just got back from GA the other day making another supply run. I could be going back in Sept. depending on events. In the meantime, I’m still stacking and praying.

        • At thedailysheeple, “32 Cops Fired 600 Rounds Into A Car Full Of Hostages Killing A Hostage.” Sgt. Dale, would like to hear your take on the article.

          • Braveheart
            I didn’t read the article so from where I set right now I will give you my GUT feeling on this first.

            All I can say is what a bunch of MORONS!!!!!
            Where the “F” was the sniper. Did they talk to him? Where and who was the supervisor? Who gave the order?
            Morons like this give cops a bad name!!!!!

            Ok looking at this from the “Devils” side.
            Now looking at this I think some one is full of SHIT!
            32 cops 600 rounds. Is around 19 rounds a piece. At a car full of hostages. Only one hostage was killed? Did the Bad guy get hit? Something doesn’t look right here. I have shot 600 rounds of 45ACP, 223, 308, and 9mm into cars before. I can tell you that if there was any living thing as small as a mouse in them it would be dead!!! That car would have more holes in it than strainer.

            The other question that I have was the car loaded with a bomb, and if he did set it off they would have died?

            Ok I have answered this from both perspectives. I really don’t know what to believe.


      14. SGT.

        I like your viewing choices

      15. Giving away free money is always very effective.

        Until everybody is hooked on it then you cut it off, then it is a total disaster.

        I just wish the collapse would happen quickly, like a hurricane. I am dying of a thousand cuts. This slow decline is really hurting. Every time I go to the grocery store is costs about $250 when a year ago it cost $125.

        The country is to far gone to fix, but it is too soon to start shooting.

        • Yea, it was free to corporations and banks etc, but for the average folks all it meant was you made nothing on deposits and the interest they paid on loans etc was a tad lower,
          I agree with you though JS, lets just get this over with,

        • yes I agree the thousands cuts is a good example.

      16. This is just the dwindling spiral that ALL civilizations go through on their path to oblivion. And once more, it has been caused by politicians who promise that they are the ones who know best how to fix all of the problems of society, when they are the very source of them! Like Einstein said, how can we expect politics to solve the problems that politics has created in the first place? If some spoiled little brats break all of the dishes and glasses in the kitchen, why do we expect those same brats will clean up the mess and then buy some new dishes?
        ONLY the thoroughly brainwashed, if not totally brain dead idiots in the matrix, believe that the brats will be able to make things right again. All that we ever get in reality is more than just the broken dishes on the floor. We also get broom handles poked through windows and a scratched up floor from them walking all over the shards of glass!! WHY can’t anybody else see these obvious facts?


      17. “QE has been ineffective in increasing inflation”

        They haven’t checked the prices of almost everything I buy.

        Good news is that gas went down another penny, to $2.24. The news says that gas prices are rising, but they have been falling in my area for a while now.

        • Of course it has been ineffective. Most of what they are doing, as I stated earlier, is raking old bad debt to keep banks afloat. The old debt IS the inflation that already happened.

          Meanwhile the velocity of money is falling, industries are less sanguine about borrowing for expansion, even at 2% interest. New borrowing is the inflation they wanted. They thought they could stimulate it with these low rates, but it ain’t happening. Why? Because taxation, (see Obamacare), regulation, illegal immigration, and what-all are stripping the consumer of the motivation (and ability) to buy. Who would build a new factory when there’s nobody to buy the products?

        • yes the necessity,s of life the prices have risen. and many things that can be bought with easy to obtain credit or a credit card the prices remain high. Go to a auction sale where cash is king and you will see lower prices. scrap prices have tanked . because no one is using the recycled scrap to build new stuff. the prices of food ,fuel ,electricity can be easily manulipated by those who provide those necessity,s.

      18. Good vids. When the pundits don’t argue but all agree, at that time everyone knows the deal. Took America about 7 years to figure out this scam. Well, I should say those who pay attention to financial economics know the scam.

        QE has been VERY effective at provided unlimited wealth to those behind it. Anything else you may have thought it was to do was just a scam cover story. Let’s be honest.

        They talk about owning something scarce. Is gold scarce? Really? They talk about Gold Backed economy. Not enough gold to do that. Please will/must trade some other way. If bitcoin ATM’s show up in Greece, that could be huge. An alternative currency based on hype rather than fiat. Which is less valuable?

        The DOW 50 SMA crossed the 200 SMA. The PPT, I think, is holding a basket under the DOW. Preventing the bearish descending triable from forming and making this look like a flag. Well, if the money printers print themselves another $3.6T then it sure might be a flag! Imaging how high the DOW can go if a leveraged $3.6T is thrown in — if it breaks up the Betty sell the farm and jump into the stock market. Just got to know when to jump out before she blows!

      19. Survival tips for today. We had a pretty good storm last night in Illinois. The sirens go off and you take shelter. The storm/tornado wipes out your house but you’re ok. But you left your medicine, keys, phone, check book etc. upstairs. Plan ahead. Stick your keys and phone in your pocket. Take your meds with you. Take your mad money and checkbook with you. And another thing. If you expect severe weather, why are you sitting around in short pants and tongs? Put on long pants and sturdy foot wear.

      20. Should also have a firearm and flashlight with you. So you can see which looter you shot.

      21. Destroying the currency by money printing never helps the economy in the long run. In the short run, money printing funds the trillion dollar deficits and increases the money flowing through the economy. The only reason why we don’t have hyperinflation is that the money velocity continues to drop.

      22. Platimum will rise.

        Thats what Hawk was telling us last week on Survive to Thrive. Its looks like the MMV’S, Breakaway Civilization fired a Plasma weapon into to China to teach them a lesson about crashing our currency. This time if that was the case, then i back up the people who did that. That i belive was non other than the “White Hats” Navy of 25% that is the breakway Civilization. If our dollar calapsed, not a single person on this site, or the anyone of the mentally handicaped dumbed down normalcy bais people working everyday will not know what really happened. We will know, but they wont understand what just happend. It literally means that nothing will move. They dont need EMP to cripple us. Kill the dollar, we are crippled then the grid shuts off in your house one month from now because you cant pay it, then any debt that you owe, house, car, your f..k….d, the banks will come for it, then your now out in the streets. David Hodges says it best. The people will rise up and the russian and chinese military is counting on that so that the traitous allies can then say China, did it and that China is going to invade us with russia, when in fact, this exactly what they have engineed and planned. To let the Russia and China, do the dirty work that they need done, which is to kill out all whites and patriots and to take about the coporations owners who are the Billionarie White Hats, who are breaking away to Texas. Texas, as in Houston, will be first city in America’s history to Transition from a type zero civilization to a Type Once Civilization. A Type One Civilization is a country that is Under and advanced Leadership, meaning the United States Constitution. The Constitution is the most advanced standard of living ever designed for the Future of a Civilization..

        USASECURITYGUARD had responded to my post for a reason, because he could tell by my writing style that i know things that i have not posted yet, because i have been holding back sensitive information. This the real reason why they want to take out Texas. If we transition, we will elect our new government and become a Type One Civilization. Our state has all races that live and work together in balance. We will be the first region on the planet to have this diversity and in balance Via, a Type One Civilization. If i dont refuse to tell what i really know about September, then its effects will be minor. Humans respond to crisis, its effects must be felt to force evolution of the species to make the transition. Whats happens next, your guess is as good as mine. Look at how intensely i have been getting attacked on this site, its for a reason,. I know something that is concerning the concerned inside the cabal. The birth of Type One Civilization is upon us. When September 28th passes, the water has Broken, and Earth will give Birth to the New Type One Civilization. We will return to Constitutional Order. And this my friends will be the result. I am going to realease some startling info soon and us preppers that most of us may not know about ourselves.



        We are transitioning from a type zero civilzation to a Type One Civilization. Platinum will rise.

        • nice Qne hix. do you ThInk the sPace ship haS anethind tOW doo wiyh it. I saw sum things in the wuds ay feyoo munths aggo. bee kirful inkase the rong one contract yoo. Thay sAy that thay must be frum owtEr fahr spase, i wil stey awey now. ReD NecCK
          And hix no the trooth we doo.

          • Hey hcks mon, ya done forget ’bout us dreadlockers mon? Dem Agency azz clowns is lookin’ to get you too mon!

      23. What a great ZOG Foreign Policy we have. The Pentagon announces that world wide drone strikes will increase by 60% in the coming year. They are creating more enemies faster than they can kill them.

        Solution: Axe the Pentagon budget by 60% and watch these sniveling psychopaths crawl back in their holes. Or drop all of them deep into Iraq territory and let them fight their way back home.


        • WWTI. Hicks. Solus lupus. Druid. WWTI.

      24. This explains how the Banksters steal from us

        It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.

        Henry Ford

      25. The gas price rises at the pump while the barrel price falls. That’s some fancy finagled ripoff aint it? In other off topic news, Jared Fogle the big goon for Subway sandwiches guilty of child porn and sex with minors. Eat fresh, yeah right, like coldcuts are eating fresh. I ate there once, never again, their “food” sucks. 5 dollars, how about no dollars.

        • The gas price is falling here in NC and has been for the past few weeks. It just went down to $2.24 a couple of days ago.

      26. I feel bad for all who are in debt, debt and buying things that one can not afford are thought to the populous from the time we could think or talk. It is and was a grand plan to fool everyone, and it worked. They give credit like candy and than torment you when you cant pay, and the game has changed in a big way these last several years, for example. I ordered internet and phone service from a company a few years ago, but later I found out that upgrading the service was not possible, this was a lie but was told they could, I called and canceled, they said nothing was due because I never used the service, a few months later I got a call from a collection agency on that same account, tried to get it fixed but no one can, so when they call back I tell them what happened and that I will not pay. These banks and lenders don’t care, they would rather see 100,000,000 homeless with empty houses on their books than try to help. I have a friend who got a offer for a loan from an Indian casino with a interest rate of 200%, no lie, this shit is crazy.

        • Borrowing to buy bling IS voluntary. I don’t feel very sorry for them at all.

        • The problems started when the credit worthiness of the borrower was low on the list of chriteria when approving the loan. The banker didn’t care because the government guaranteed the loan. The buck ultimately stops with the borrower. The buyer on credit wasn’t being realistic ,prudent, frugal or fiscally responsible. I don’t feel sorry for them. They are the ones who purchased too much debt. They made their own bed let them lie in it. that debt needs to remain attached to them for the remainder of their lives. No banker has ever cheated me or taken one penny from me. I refuse to play their game. borrowing money is a gamble . Even no interest loans have hidden cost like insurance and fees for servicing the loan.

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