Monday, August 29, 2016

Yellen: Fed Should Explore Purchasing ‘Broader Range of Assets’

Lost amidst the normal gobbledigook double speak by Fed Chair Janet Yellen at the Jackson Hole Summit last week, was a short passage which largely went unnoticed by the financial pundits more interested in short-term interest rate fluctuations (to hike or not to hike).  Here is the passage (boldface emphasis is mine):

On the monetary policy side, future policymakers might choose to consider some additional tools that have been employed by other central banks, though adding them to our toolkit would require a very careful weighing of costs and benefits and, in some cases, could require legislation. For example, future policymakers may wish to explore the possibility of purchasing a broader range of assets. Beyond that, some observers have suggested raising the FOMC’s 2 percent inflation objective or implementing policy through alternative monetary policy frameworks, such as price-level or nominal GDP targeting. I should stress, however, that the FOMC is not actively considering these additional tools and policy frameworks, although they are important subjects for research.
This key message was obscurely packed into a bunch of esoteric back filling, but more importantly hints that helicopter money is coming.  It is the last resort for desperate central banks trying to re-inflate the economy in a deflationary environment which every Keynesian economist fears.  "Broader range of assets" indicates buying not just US Treasury bonds (quantitative easing), but also equities, corporate bonds, real estate, and eventually leads to giving away free tax deductions to the masses.  Money and credit figuratively rain down at every level:  household, corporate, government.  Hence, the term "helicopter money" is coined due to the massive liquidity injected into the economy.

The problem, of course, is liquidity is not wealth.  Stimulus of this sort is nothing more than legalized counterfeiting, and no wealth is created...but that's for another discussion.

Helicopter money also ensures hyperinflation. The ol' "be careful what you wish for (targeted inflation rate)--you may get it (unintended hyperinflation)" rings true.

http://blogs.barrons.com/incomeinvesting/2016/08/26/yellen-fed-should-explore-purchasing-broader-range-of-assets/

Shock Interview: New Black Panther Leader DESTROYS Democrat Politicians: “We’re Being Pimped Like Prostitutes And They’re The Big Pimps Pimping Us Politically”

http://www.shtfplan.com/headline-news/shock-interview-new-black-panther-leader-destroys-democrat-politicians-were-being-pimped-like-prostitutes-and-theyre-the-big-pimps-pimping-us-politically_08282016

Tuesday, August 23, 2016

Socialism: The World's Greatest Generator of Poverty

https://mises.org/blog/socialism-worlds-greatest-generator-poverty

How The Fed's Facebook PR Campaign Went Terribly Wrong

http://www.zerohedge.com/news/2016-08-23/how-feds-facebook-pr-campaign-went-terribly-wrong

Something "Unexpected" Happened When Seattle Raised The Minimum Wage

Wow, what a surprise .  The University of Washington concluded that raising minimum wages in Seattle "lowered employment rates of low-wage workers".

http://www.zerohedge.com/news/2016-08-23/something-unexpected-happened-when-seattle-raised-minimum-wage
...the Federal Reserve Bank of San Francisco that finds that "higher minimum wage results in some job loss for the least-skilled workers—with possibly larger adverse effects than earlier research suggested."
Gee, the academics and intelligentsia are finally coming to the same conclusions the rest of us peons came to years ago.

FBI Reports Linking Hillary To Vince Foster "Suicide" Disappear From National Archives

http://www.zerohedge.com/news/2016-08-23/fbi-reports-linking-hillary-vince-foster-suicide-go-missing-national-archives

Follow The Money Trail For Source Of "Russian Threat" Paranoia

http://www.zerohedge.com/news/2016-08-22/follow-money-trail-source-russian-threat-paranoia

US National Debt Clock

More people are becoming aware of the huge US debt bomb.  But what they aren't aware of is the US Treasury has issued so many USDollars that the prices for gold and silver should be astronomically higher, based on the money supply.

If not for the artificial suppression of precious metals prices by the monetary authorities and bullion banks acting on behalf of central banks, gold and silver should be $8,108/oz. and $896/oz., respectively.


http://www.usdebtclock.org/