Wednesday, August 31, 2016

Jackson Hole, Wy: Proof - We Need to End the Fed

The market waited in its normal fashion before Fed news. It was up a little and down a little. After Yellen's speech, the market roared up over 100 points, but an unusual thing happened. It gave up all the gains. I had to read the speech. Maybe I could find what others saw or felt?
There it was in one of the many subsections under policy tool kits that the Fed utilizes. Yellen began talking about the limitations for action that the Fed is under. Besides being an area to pass the blame when things go awry, Yellen seeks more power in our economy using our currency as a springboard.
"A serious limitation of our pre-crisis policy tool kit was its inability to generate substantially more accommodation than could be provided by a near-zero federal funds rate..."
She goes on to mention other actions and consequences like the taper tantrum. She adds that the Fed was able to reduce rates to provide accommodation by four points. Now, with the federal fund rate near-zero, Yellen seeks another direction if trouble were to arise. She had a handout to show the federal funds rate and it included rates below ZERO!
She didn't harp on it, but a picture tells a thousand words. She finishes with the need by the Fed for more power, so they can use other options in the tool kit. She would like:
* purchase other assets. This is what the Bank of Japan does as it buys stocks. Yeah, the Fed gets to pick winners and losers in our Free-market. Maybe she wants to short gold?
* improve education. Yeah, it wants the shills to sell the Fed to the masses as why we need the Fed.
* worker training, research and reduce regulation burdens. It is passing the buck to Congress when the Fed fails again! In addition, the Fed is making a political statement and yet, they claim political independence.
The Federal Reserve policies have continued a war on savers and people thrifty with money. This same low interest rate environment has especially punished seniors seeking a safe yield with bonds. It has destroyed almost all pension plans across America and the same policies have distorted our capital markets because the Fed believes their action will stimulate borrowing. Yeah, get everyone in debt.
Those idiots don't realize that when savers reach a financial goal, they will make a purchase like a car, furniture or house. When seniors have enough disposable money, they treat their family to a vacation, out to dinner or help with expenses like education. Pensions help millions of Americans so social security isn't the only option when old age appears.
Dear reader, it gets worse. The Fed would also like more power to tinker with inflation. They keep harping on their 2% targets, to which they remind you that they have not met. BS!
Back To The Future
The Fed has already tinkered with real inflation. In the real world we need food and energy everyday and a place to sleep (shelter). Yes, gas is cheaper, but the devaluation of the purchasing power of the dollar still makes it a large expense. Food prices rise and rise and rise some more. Shelter? Are you kidding me? We have the lowest home ownership since 1963 and many citizens use between 40% and 50% of their income to cover rent. People, the Fed and government do NOT consider those necessary costs in their evaluation of inflation. Get out of town! Corruption! Liars! Thieves! = Tyranny!
Yellen has put negative interest rates on the table, while at the same time, the Fed is studying reports to end the use of currency in our society. The Federal Reserve not only violates the constitution and the only money mentioned gold and silver, but now, it is studying a way to end your financial independence. The free use of money. Even if they don't activate this program, negative rates will tax your money held in banks. The hands on the clock is approaching mid-night. As the Chamber Brothers say, "Time Has Come Today.." End the Fed!