We here at A&G are constantly striving to explain the corruptive complexity which is the Fed in as simple clear and concise a manner as possible..
Because our readership keeps growing leaps n' bounds and we have no way to know or assume what our followers know prior to visiting, we make another attempt to explain where we are where the Fed is concerned..
And to those who already may know the truth of things, stick with today's post.. There may be a nugget or two of new info for you.. who knows..
To really understand the Fed, you must accept two realities:
1) The Fed is a money-printing machine that wants stocks to go higher.
2) The Fed illustrates - orchestrates - telestrates all its movements to Professional "capital 'I' investors while keeping 'mom & pop' small lower-case 'i' investor completely in the dark...
And that’s pretty much it..
Since March, 2009 only two things thing have been constant:
1) The Fed has continued to print money expanding its balance sheet.
2) Stocks have moved higher.
The Fed does Not have any forecasting ability.
In addition via their parrots and talking mouthpieces at Wall Street Journal and on CNBC, we have been hearing that “growth would pick up in the second half of the year” for Five years now.
It has never shown up.
Neither has income, full-time employment, the labor participation rate, or anything else that would indicate a strong economy much less the beginnings of a recovery or 'green shoots' or other cutesy terms.
For instance, the Fed suggested it would stop QE and raise interest rates when unemployment hit the fake figure of 6.5%. The Fed predicted this would happen in 2015. Unemployment hit 6.5% back in the first quarter of 2014.
So what did the Fed do? Did it raise rates?
Nope.. the Fed dropped its unemployment threshold because said threshold was “no longer meaningful.”
The Fed again ignored this, claiming that the inflation numbers were “noise.”
Before the Fed Chair and board were feverishly working behind the scenes to get inflation to grow above 2% even though deflation is far better for everyday people because it allows their money to have more purchasing power..
Now Fed Presidents are claiming that inflation might remain below 2% for several years or that inflation might go above 2% and it would not be a “catastrophe.”
Moreover, there’s little hope of reining in the Fed because even if Congress implementing a “balance sheet size threshold” or controls for the Fed, they'd simply ignore them.
As a result of their meddling, everything from food prices to gas to rentals have gone up, up, up..
And ultimately that's where we are.. A super powerful entity that few understand and fewer in positions in power want to take on, is making decisions to solely benefit a select few
And no midterm or 2016 election is going to change a thing.
And everyone else.. We feel the 'heat' rise along with the prices of everything but we're still content to rest in the pot and daydream time away..
Like the lobsters..