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Monday, May 5, 2014

Why its a Shame the Fed Is Not Racist like that NBA Guy

"You can strip me of work and put me out of my home

And cut off all my credit;

Force me to live on the street among rats who eat,

And I'll be none the wise who caused it.

Will take lots of System abuse and be perpetual victim;

Life savings sucked away like a chigger

Still chant 'USA!' and fight n' die in your wars

But you Better not call me 'Nigger'"
~~~~~~   ~~~~~~   ~~~~~~   ~~~~~~
Last Friday amid the remnants of the irrelevant media news put forth that the common average folk love digging their teeth into, was something actually important..

806,000 jobs were shed in the non-farm workforce in April.

And no, sorry Charlie... can't blame the weather..

This follows news earlier last week that the economy ground to a halt in the first quarter with growth plummeting to 0.1%

An official recession (unlike the current 5 yr recession-depression the elite will not publicly acknowledge) is two quarters in a row of negative growth..
So looks like someone in a position of decision making power better figure how to cook the books pretty quick and fudge out some 'fun' numbers or the populace may get upset..

Oh who are we to kid..  99% of people out there sincerely do not give a bleep about what goes on in the economy as long as they have work..

Pretty much the same 99% getting shafted routinely but a nice 'shafting' is not so noticeable with 24/7 entertainment full of sound and color to delight and distract.

Now if someone says something perceived racist..   Whewww..

'Oh Lord have mercy cause there gonna be hell to pay!'
We've expressed it before but its much like the scene in 'Airplane', the 1980 film where the stewardess is explaining that there is no pilot to fly the plane and other calamities that the passengers should give a darn about and yet what provokes the people to lunge and choke each other in panic?

The plane being out of coffee.

The unemployment rate fell to 6.3% (Yay!) but that was only because the labor “participation rate” plummeted back to a modern-era low of 62.8% (Boo!) last seen in 1978 when there were far fewer women in the workforce.

The rate for males is the lowest ever recorded at 69.1% (Double-Boo!)

That means the following:
That means just about 4 out of 10 Americans for whatever reason are not employed.

Conservatives will say there's jobs-a-plenty but people don't want to work; they are shiftless and lazy and rather collect government money..

Liberals will pass on the fact they've done absolutely Nothing to alleviate this situation by blaming those 'obstructionist' Reps..

And the game goes on..  And of course mid-terms to worry about.  Reps won't even press on Bengazi because they fear it coming back to hurt them come November..

Truth is, if you take a person accustomed to making $15/hr, fire him/her then re-offer the same or similar job at $11/hr, how excited should he/she be to commit 40 hrs weekly to it?

And if benefits come to the same or similar amount and you could stay in bed vs getting up at 7am every morning then trudging off to work among a thick soup of traffic, wouldn't you?

Here's more truth..  Only one way to force businesses and corporations to increase their wages and its two-pronged..

1) An FDR-style mass hiring in all positions of Federal government including an expansion of the allocation of money to the states so they can expand their hiring;  And..

2)  Severe financial penalties/tariffs on companies that move their operations abroad in response;  Any company that does not show at least 15% of its manufacturing workforce in the US has 25% tariffs added to all products/services they transport back to the US to be sold..

Will this ever happen?
Not with this President.. Certainly not if Hillary wins in 2016..

And most certainly not with a Republican

Businesses love recessions..  perfect excuse to shed dead weight and a lot of good salaries with benefits then re-offer the jobs to a hungry and wide-spread talent pool with resume in hand and bill collectors at their feet.

The Fed's balance sheet is at $4 Trillion and growing..  And they keep purchasing and the little people are never benefiting and never upset..

The Fed is smart not to draw attention to their deviance..

They never utter the naughty 'N' word.
Oh by the way, what exactly does it mean that the Fed's balancing sheet is $4 Trillion in a real, every day sense?

Simple..  Its the amount the US taxpayers ultimately owe the Fed not counting interest..

Huh?  Wha..What?

We'll explain as simple as possible for those who do not understand..

The Federal Government needs money so via the Treasury Dept, it calls up the Fed, which is a private bank and not a true part of the government and says "Hey, we need another $10 billion this month to cover our expenses..."
The Fed responds with "Sure thing" and theoretically prints up $10 billion in paper notes,  though in reality this transaction is done in a nanosecond using computers..

Anyways, the Fed creates the money out of thin air backed by nothing.. (If you or we did it, the term would be called 'counterfeiting' and we'd be in prison for awhile)

Now this money is given to the Government in exchange for bonds or treasury notes which hold a certain value of interest to be repaid at specific time of maturity..   Just like a savings bond you may have gotten as a child..

The Government now has $10 billion to pay its obligations for a given period- most of it will go to pay interest on debt and cover bonds immediately maturing..
The Fed now holds more of US debt.. like China, Japan and an assortment of other nations and professional Investors do..

One last point on this..

Normally when a nation is in financial difficulty, just like a deadbeat individual, interest rates rise because the loans are now riskier and there's greater chance at default..

The US interest rate is low by comparison..    How?

Because even if no outside forces buy US treasuries at the low interest offered, the Fed 100% of the time will step in to fill the void.  

This is why the Federal Reserve is the US Government's #1 creditor by more than double what is owed to China, and why we can never default even if we wanted to..
How many people know all this?

Very few..

How many know to get infuriated by Fed policies/decisions?

Even fewer..

 Yep..  Sure is a shame the Fed is not overtly racist..

Then the everyday person would care.