The central bank is finally admitting what most of us have known for some time now. The Fed is fueling the asset bubble and pumping a lot of money into a “booming” economy. As Bloomberg’s Richard Breslow details in today’s note, the worst kept secret in the financial world is now not only accepted orthodoxy but finally being discussed openly by, at least some, authorities.
Central bank policies are directly driving asset prices and the bubbles therein. It’s what they do. It has been so stunningly obvious that, at this point, it makes a mockery of things to deny it as an ongoing, and essential, part of how their strategy is implemented. Oddly enough, however, it’s a revelation that is, apparently, coming late to many people with a lot of savings and nothing to show for it. And it is an undeniable factor in this January’s price action. –ZeroHedge
Alan Greenspan knew this. So did Ben Bernanke, who had no problem with it. In fact, his strategy required it. Jerome Powell was not initially sold on QE4, but he has been seeing no way around it. It fell on ardent loyalists to take his insistence that it was “not QE” with any seriousness. Otherwise, they would have had to admit to knowing little about financial markets.
Does anyone else notice anything odd? When was the last time the Fed inflated the asset bubble to this degree? So much for that booming economy we are being told about daily. It was at the very least, a little refreshing to hear Dallas Fed President Robert Kaplan openly talked about this in an interview Wednesday. Although he did couch it in terms that implied it was a matter of some concern to him. But, of course, he went on to say, “we’ve done what we need to do up until now.”
“My own view is it’s having some effect on risk assets,” Kaplan said. “It’s a derivative of QE when we buy bills and we inject more liquidity; it affects risk assets. This is why I say growth in the balance sheet is not free. There is a cost to it.”
He doth protest, just not so much. Their ability to drive investor behavior is so well established that what is going on in the markets can’t remotely be seen as an unintended, or even unwanted, consequence. ZeroHedge
We’ve been saying since this debacle began that you can choose to not call this QE4 if you don’t want to. Use whatever words you like. Call it a “tuna popsicle” for all we care. But the results are the same as if this market manipulation was being called QE4. The asset bubble is inflating and when this thing bursts, the Fed will probably be out of tools.
We Are ONE MISTAKE Away From Global Recession
At this point, is it a bad thing to admit something that is so patently evident to everyone?
The answer is probably yes.
They have always been responsive to financial conditions. In many ways they’ve been transfixed by them. Now they are openly acknowledging that they own them. And once you do so, it becomes harder than ever, if even at all possible, to give them back. Kaplan said they need to. –ZeroHedge
National resources, including farmland, groundwater, ports, and fake makework job openings, are sold-off, to pay the odious debt.
All of the bad checks or bad frn’s in the whole world, ever, do not create any bubble in physical reality or wasted energy, while you are guilted for eating a square meal and washing your car.
Conservatives and conservationists, alike, conserve nothing they can put their finger on, for noone, who they can name.
Considering that all Americans with the exception of many blacks and all Native Americans came to America in order to escape extreme tyranny and abuse in some form or another, we could all demand reparations from the rest of the world for the extreme abuse. That could be a really great lifestyle for me, so it really wouldn’t matter what the Federal Reserve does!
War is for the psychpaths. Unfortunately, as long as individuals can continue to profit of of war without suffering any consequences, as has been the situation for thousands of years, I am extremely pessimistic that war will cease to exist in my life time, yet still am dedicated to ending war.
Global investors, international bankers, natural resource thieves, land thieves, and defense contractors, in addition to a cabal of upper echelon military brass have continued to rape, pillage, and plunder nations. Switzerland is never nuetral and is always profiteering off of the wars, and so is China. China will not admit this, but China has been the benneficiary of American wars through the rebuliding of the nations that have been destroyed by America and its NATO allies. This is just one of the many reasons that Wall Street has been demanding that China continues to open its financial system to the west.
Global investors are loyal to money and nothing else. They will finance the war industry in America, and the rebuilding industry in China, profiteering two-fold off of the spilled blood. China has also profiteered directly from this rebuliding financially through compounded interest, and through having countries turn their natural resources over to China, as they have done in Brazil with gold mines in the Amazon rain forest, with countries in Africa and continuing to criticize the U.S., which does definitely deserve criticism, but also profiteering through an enormous trade surplus with the U.S.
Until people realize the good cop bad cop scenario between countries being baited by the IMF, World Bank, and cabal of international bankers and investors, they will continue to be played as fools by profiteering puppeteers, laughing all the way to the bank on the way to war, and the way to rebuild.
When interest is eliminated, perhaps war will be eliminated. The lazy, incompetent, and greedy vampires can’t get enough of it, and love the blood spilled anyways, as they drink it out of Baccarat crystal on their yachts and Lear Jets.
It must be a global agreement to eliminate interest though. King Henry the 1st did eliminate interest and the private bankers which lead to the War of the Roses.
Has everyone noticed that the military and talking heads are always talking about protecting our interests, in a region not even remotely close to our borders?
The interests that they refer to is compounded interest. Iran, Libya, Syria, North Korea, and China all have debt free government currencies.
It is in our interest that they pay a bank tax to the wealthy.
Israel also has a debt free government currency, the Shekel, whose banking system was created by Lord Rothschild who coincidentally advised the western powers on creating privately owned debt based monetary systems. Rumor has it that Rothschilds know a thing or two about finance.