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Peter Schiff: Thanks to the Fed, We Have a Monetary Roach Motel (Videos)
In the video below, Peter Schiff explains what anyone NOT listening to the mainstream media already knows: The Fed is stuck in a monetary Roach Motel from which it may never escape. Thanks to liberals fools, bribing people for votes in a never ending Ponzi scheme has actually been given a name as if to legitimize it somehow: They call it Keynesian Economics.
In the video, Peter explains what he has so many times before. He explains how Janet Yellen’s position is not supposed to be a politicized one, however like all things Obama related, Janet Yellen politicized her position with her fierce loyalty to Barack Obama and his ongoing lie about a fictional recovery. In fact, Yellen was willing to risk the country’s well-being rather than betray Obama, by saying the economy was ready for a rate increase back in December (perhaps a wise idea when you consider the body count associated with the Obama White House).
In the following video from the post titled, Janet Yellen Strayed From Her Own Plan and Went Nuts, Peter shredded Yellen for her blind partisan loyalty. At the 4:30 mark, Peter explains how in Yellen’s own words, she said the Fed was only going to raise rates when the data warranted a rate hike, but with all the pressure coming from fools like Obama talking about how anyone denying a recovery was just “peddling fiction,” Yellen was backed into a corner.
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The liberal talking heads on television kept saying we should raise rates because Emperor Obama kept saying we were in a “recovery,” and a REAL recovery would justify raising rates. The only problem was we weren’t anywhere close to a recovery and Yellen knew it. For all her talk about only raising rates when the data supported a hike, Yellen raised rates based on numbers that were SUBSTANTIALLY WORSE than they were back in September, when EVERYONE agreed raising rates was the WORST IDEA EVER! In fact, the big news the actual day of the hike, was that manufacturing was down as it was expected to be, but it was down more than 3x what was expected, and obviously the first number was still lower than it was in September, further demonstrating that the rate hike was a typical slight of hand gesture from someone who considers herself “part of the Obama administration.”
Yellen was backed into a corner, and she was screwed no matter what she chose, but let’s be clear, she put herself in that position. To use her words again, Yellen said the rate hike was intended to “show confidence” in the economy. H-E-L-L-O! Someone might want to tell the Fed chair, that a strong economy doesn’t need a token .25% rate hike to show confidence. A strong economy creates its own confidence. Duh!
Keep in mind at all times who we’re talking about here. Back in 2008, when the world was on fire, halfway through 2008, Janet Yellen still wasn’t even forecasting a recession yet… THAT’S how far off she was. She was chosen by Obama to be a “yes man,” or in this case, a “yes woman.”
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Obama knows that if what happened to George W. Bush happens to him, and he can’t prevent the bubble(s) from BURSTING before he leaves office, Hillary will never get elected. So, the idea is to keep saying the economy is strong, but you can be sure they won’t make the same mistake of raising rates again, no matter what they are bluffing to do. Obama and Hillary CANNOT afford it.
Janet Yellen has one job: DO NOT let the next bubble pop while Obama is still in office. If a Democrat is in office when the whole house of cards comes crashing down, hello full-fledged Socialism/Communism. Even though the American standard of living continues going down, debt keeps going up, but the Fed will keep towing the nonsensical party line about a “recovery” because of all the uninformed voters who will believe it.
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In the following video, titled: U.S. Dollar on its Way To Collapse in 2016, Peter talks about Obama and the Fed will keep telling the country how since the U.S. stock market is going up (and hence obviously strong – COUGH), that means the economy is also strong. In reality, the Atlanta Fed just revised growth down to .6% down from 3% in December, a number not seen since the last recession, so Peter says expect rates to go back to zero, and expect QE4 to artificially prop up the market until after the election.
If Yellen is crazy enough to raise rates again, expect three things to happen for sure:
1) The U.S. stock market would go way down, and we’re off to the worst start in history;
2) Gold would go up, and it has; and
3) The U.S. Dollar would go down, and this last week the Dollar hit a new low on the year at 96
Something Obama and the rest of the talking heads will fail to mention is that the U.S. stock market is ONLY up in US Dollars. Relative to other currencies and Gold, the US Dollar will fall a lot faster than the stock market will rise, which means we’re witnessing another slight of hand by the Emperor of Lies. It’s time people WAKE UP! The US Dollar is Dying, Economic Collapse is On Our Doorstep, the reason other countries had a Secret Meeting at the G20 to Take Down the US Dollar is because the days of the Dollar as the World Reserve Currency are coming to an END, and it’s about time you learn How the Loss of the US Dollar as Reserve Currency Affects You Personally, or suffer the consequences.
NEW: THE FOLLOWING TWO POSTS FEATURE BOTH PETER SCHIFF AND DR. JIM WILLIE:
Dr. Willie and Peter Schiff Together: Total Currency Collapse and Reset Coming
Peter Schiff and Dr. Jim Willie Warn Investors About Timing Fed Market Rally
ALSO DON’T MISS:
Jim Willie and How the Loss of the US Dollar as Reserve Currency Affects You Personally
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Monetary Roach Motel by Peter Schiff recently wrote in Alternative News
It may be almost impossible to underestimate the gullibility of professional Fed watchers. At least, Lucy van Pelt needed to place an actual football on the ground to fool poor Charlie Brown. But in today’s high stakes game of Federal Reserve mind reading, the Fed doesn’t even have to make a halfway convincing bluff to make the markets look foolish.
Just two weeks ago, the release of the Fed’s March policy statement and the subsequent press conference by Chairwoman Janet Yellen should have made it abundantly clear that the Central Bank policy had retreated substantially from the territory it had previously staked out for itself. In December, it had anticipated four rate hikes in 2016, but suddenly those had been pared down to two. Based on the conclusion that the era of easy money had been extended for at least a few more innings, the dollar sold off and stocks and commodities rallied.
But in the two weeks that followed the dovish March guidance, some lesser Fed officials, including those who aren’t even voting members of the Fed’s policy-setting Open Market Committee, made some seemingly hawkish comments that convinced the markets that the Fed had backed off from its decision to back off.Could it be that Yellen does not want to be seen as one of those “fiction peddlers” that President Obama criticized in his State of the Union address who have the audacity to suggest that the U.S. economy is not strong?
But the bigger question is not why the Fed is mindlessly cheer-leading, that is after all part of its job description, but how it can justify altering its monetary policy while holding fast to its economic forecasts. To square that circle,Yellen said that the Fed had erred in its assumptions as to what constitutes a “neutral” policy level whereby rates are neither stimulating nor restrictive. She said that based on her global concerns, neutral policy should now be considered close to 0% rather than the 2% that the Fed had hinted at earlier. She also said that the range of factors that the Fed considers in reaching its rate decisions had evolved beyond simply looking at the traditional inputs of GDP growth, inflation and unemployment to include global risk factors that could impact the U.S. In other words, the Fed is not simply “data dependent” but is now “globally data dependent,” a stance that could allow it to point to any potential crisis anywhere in the world as a rationale not to raise rates. Already many observers are suggesting that the June “Brexit” vote in the UK will be a justification to take a rate hike off the table for the June FOMC meeting.
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Of course, this ever-expanding list of criteria should be viewed as what it really is: a continual shifting of goal posts that will prevent the Fed from EVER having to raise rates again (at least until a rapidly rising CPI forces its hand). It may have incorrectly believed it could get away with a series of increases when it first started raising in December, but those expectations may have wilted when the markets and the economy dropped so decisively in the immediate wake of December’s 25 basis point increase. Yet even though markets have recovered, I believe they have only done so because the Fed has backed off. In fact, if that initial rate hike was a trial balloon for future hikes, its flight was about as successful as the Hindenburg’s. As such, the Fed hardly wants to risk another sell-off that it may be unable to reverse.
So the handwriting is on the wall for anyone literate enough to read it. The Fed is stuck in a monetary Roach Motel from which it may never escape. Keynesian economists like to discuss a “liquidity trap” but their policies have created an undeniable “stimulus trap” that I believe will remain in place until the whole merry-go-round spins out of control.
The quarter that just ended yesterday saw the biggest quarterly declines in the U.S. dollar in five years (T. Hall, Bloomberg, 3/30/16), and the strongest quarter for gold in 30 years (R. Pakiam, Bloomberg, 3/30/16). These moves completely took the Wall Street establishment by surprise. But given the historic rally enjoyed by the dollar over the past five years, three months’ worth of declines may just be a small down payment on the declines the dollar may experience in the years ahead.
Despite having fallen for all of the Fed’s prior head fakes, some economists are taking today’s March payroll report, which showed the creation of 215,000 jobs and a tick up in the labor participation rate to 63.0% (Bureau of Labor Statistics), as a sign that the Fed will now have to shift back into a hawkish stance. Putting aside the fact that the majority of the new jobs were part-time and went to people who already had at least one, and that the official unemployment rate actually ticked up, one wonders how much more of this will we have to witness before economists finally realize that there will likely never be a real ball to kick.
The post Monetary Roach Motel appeared first on LewRockwell.
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FOR MORE GREAT MATERIAL FROM JIM WILLIE:
Dr. Jim Willie: Expect More US Voter Fraud as US Debt Problem Looms
Dr. Jim Willie – Secret Meeting at the G20 to Take Down the US Dollar
Jim Willie and How the Loss of the US Dollar as Reserve Currency Affects You Personally
Dr. Jim Willie: Financial Deals Happening Behind Closed Doors; US Not Invited
Dr. Jim Willie: With Collapse of Dollar, Banks, Bonds, and Other Currencies Go Too
Dr. Jim Willie: US Dollar is Being Surrounded By All Sides; It’s Tragically Comical
Dr. Jim Willie: We’re in the Bottom of the 9th; The US Dollar is Dying (2/28)
Dr. Jim Willie: Economic Collapse is On Our Doorstep
Jim Willie: “The Quickening” is Approaching Global Economic Markets
Dr. Jim Willie and How To Simplify Your Finances To Survive Economic Collapse
Jim Willie: Both Our Allies and the American People Absolutely Hate Our Government
Jim Willie: U.S. Dollar is Now a Matter of National Security Due to Poor Decisions
Jim Willie: Armageddon Coming to U.S. With Trillions Exposed In Derivatives
Jim Willie, The Fed’s Week of Reckoning, and an Isolated United States
Jim Willie: After Banks Fail, Government Seizes IRA’s, 401k’s, and Pensions
Jim Willie, the Crumbling Global Economy, and the Dollar Crisis
FOR MORE GREAT MATERIAL FROM PETER SCHIFF:
Peter Schiff: Newest Recession Hiding in Plain View; American Dream Is Dead
Peter Schiff: Dollar Collapse Will Be the Single Biggest Event In Human History
Peter Schiff: Federal Reserve Only Delaying Total Financial Collapse of U.S. Economy
Peter Schiff: Obama “Peddling Fiction” As Unemployed Tops 100 Million People
Peter Schiff: Recovery Fantasy Persists Despite Recession Evidence
Peter Schiff: Here Comes the Great, Great, Great, Great Recession!
Peter Schiff: “Whatever Obama Was Calling Recovery… is OVER!”
CNBC Actually Admits Peter Schiff Was Right… Again (Video)
Peter Schiff: Due to the Feds Antics, the Market is Very Dangerous Now
Peter Schiff and “If The Economy Is Fine, Why Are So Many Large Retailers Imploding?”
Peter Schiff: Take a Good Look at the “New” American Dream!
Peter Schiff and Reagan Advisor: Complete Economic Collapse Immediately Ahead
Peter Schiff: Warning! Economic Storm Clouds Ready to Rain
Peter Schiff: Death of the US Dollar Is Imminent; Fed Out of Options
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