Results 1 to 10 of 10

Thread: Yellen’s Effed up Attack on Working People, Sad

  1. #1

    Default Yellen’s Effed up Attack on Working People, Sad

    http://www.counterpunch.org/2017/03/...ng-people-sad/

    MARCH 17, 2017



    Why did the Fed raise its benchmark interest rate when inflation is still running below the Fed’s target, workers wages have hardly budged and the economy is not even growing at 1 percent?

    Yellen was asked that question at a press conference on Wednesday following the release of the FOMC’s statement. Her answer helps to show how the Fed makes its policy decisions based on factors most people would never consider. Here’s what she said:

    Janet Yellen– “Well, look, our policy is not set in stone. It is data-dependent and we’re — we’re not locked into any particular policy path…As you said, the data have not notably strengthened.”

    Translation– So after saying the Fed bases its decisions on the data, Yellen does a quick 180 and says the data hasn’t changed. Okay.

    Janet Yellen– “There’s always noise in the data from quarter to quarter. But we haven’t changed our view of the outlook.”

    Trans– The Fed expects economic growth will remain in the doldrums. (2 percent or less)

    Janet Yellen– “We haven’t boosted the outlook, projected faster growth.”

    Trans– The Fed is determined to maintain a slow-growth environment in order to continue its “easy money” policy which benefits Wall Street.

    Janet Yellen– “We think we’re moving along the same course we’ve been on, but it’s one that involves gradual tightening in the labor market.”

    Trans — Ah ha. Now we’re getting somewhere. Now we can see what the rate hike is really all about. It’s all about the minuscule improvements in the labor market. Yellen thinks the improvements are a big red flag.

    Janet Yellen– “I would describe some measures of wage growth as having moved up some.”

    Trans– Battle Stations! Battle Stations! Full Red Alert!

    Janet Yellen– “Some measures haven’t moved up, but there’s is also suggestive of a strengthening labor market.”

    Trans– “Suggestive”? In other words, the mere hint of improving conditions in the labor market –which could result in higher wages –is enough to send Yellen into a rate-hike frenzy? Is that what she’s saying?

    Janet Yellen– “And we expect policy to remain accommodative now for some time.”

    Trans– So don’t worry Wall Street, we’re not cutting off the flow of cheap money, we just need to tweak rates a bit to dampen the prospect of higher wages.

    Janet Yellen– “So we’re talking about a gradual path of removing policy accommodation as the economy makes progress moving toward neutral.”

    Trans– We’re keeping our eyes peeled for even the slightest uptick in wages, but we’ll continue to price cash below the rate of inflation so the investor class can make out like bandits.

    Janet Yellen– “But we’re continuing to provide accommodation to the economy that’s allowing it to grow at an above-trend pace that’s consistent with further improvement in the labor market.”

    Trans– We’ll make sure the economy doesn’t grow any faster than 2 percent GDP for the foreseeable future so we can continue to provide cheap credit to our constituents on Wall Street who need money that is priced below the rate of inflation to push stocks and bonds higher into the stratosphere. Also, we think that rising wages are merely a fleeting blip on the radar, even so, we are prepared to raise rates until the threat has been thoroughly extinguished.

    So the Fed hasn’t changed its policy or its projections. Yellen basically raised rates because she had a ‘gut-feeling’ that the demand for labor is strengthening which means that wages could rise. (Her feelings on this matter are not supported by the data, but whatever.) As the primary steward of the system, it’s Yellen’s job to make sure that doesn’t happen. Any sign that of improvement in labor markets (like higher wages or, god forbid, rising standards of living) must be squelched before they ever get started. At the same time, the Fed has to balance its anti-worker duties with its stealth mandate to shower the investor class with below market-priced credit to help them game the system and rake off hefty profits. It’s a tough job, but the Fed has proved that it’s more than ready to meet the challenge.

    The idea that the Fed is an impartial referee that serves the public by setting interest rates and regulating the financial system, is the nuttiest of all the conspiracy theories. The Fed is not only a creature of the banks, it is also the most destructive institution in the country today. Just look at the growing social unrest, the political instability and the sudden surge in right wing movements. Does anyone seriously believe these phenomena just popped out of nowhere? These are all the result of the gaping inequality that has emerged under the Fed’s malign stewardship. There’s nothing accidental in the way that wealth has been transferred from one class to another. It’s all part of a plan, a plan to enrich the few while everyone sees their incomes shrivel, their wages stagnate, the health care costs soar, their education expenses explode, their personal debts balloon, and their standards of living steadily decline.

    Check out this chart from Bloomberg that shows with stunning clarity the real impact the Fed’s misguided policies. Rather than try to persuade readers that the Fed is a thoroughly corrupt and heinous institution that is a threat to every man, woman and child in the USA, I ask readers to study the chart and draw your own conclusions. The question that arises is this: Did the Fed choose the policy that would best serve the interests of the American people (by restoring economic growth and increasing employment) or did they choose a policy that they knew would maximize the profits for the investor class at the expense of everyone else?

    You decide.


    (Here’s One Chart That Captures the Debate Over Quantitative Easing, Bloomberg)

    One more thing: How much of our fractious and increasingly-polarized political culture is the result of economic and monetary policies that have intensified feelings of hopelessness among the public? Would the American people have voted for a rightwing demagogue unless they were so desperate about the slide in their standards of living that they felt compelled to look for remedies outside the political mainstream?
    Isn’t it true that Donald Trump wouldn’t be president today if it wasn’t for the Fed?
    Think about it.
    The essential English leadership secret does not depend on particular intelligence. Rather, it depends on a remarkably stupid thick-headedness. The English follow the principle that when one lies, one should lie big, and stick to it. They keep up their lies, even at the risk of looking ridiculous.



  2. Remove this section of ads by registering.
  3. #2

    Default

    Yep , pretty much , no growth expected , raise the rates anyway .
    Support CalExit . Danke Do Something

  4. #3

    Default

    Been saying it for a long time. Wages are key to the Fed. By keeping wages low, it offsets their monetary inflation. Quite possibly my first post on this forum in Jul 2007:

    Quote Originally Posted by Brian4Liberty View Post
    ...The corporate/industrial/government complex (establishment) always wants a larger supply of laborers, to lower wages. The politicians cater to that. They can dress it up any way they want, but in the end, they do what the establishment tells them, and they want a larger labor pool to compete with you.
    ...
    Our wages have decreased while everything else has inflated. And as we all know, inflation eats away at your wages (which are stagnant or lowering), reducing your real spending power, and taking money from you to redistribute it to others.

    Alan Greenspan and the Federal Reserve have been working the system for years. Almost everything has been going up in price, which is offset by lowering wages. Then they can say we have almost 0% inflation. Greenspan hides behind pseudo-libertarian ideals, at the same time he works the system to the detriment of the average American.

    Everything is right on track, on the road to serfdom...
    Twitter: B4Liberty@USAB4L
    "Foreign aid is taking money from the poor people of a rich country, and giving it to the rich people of a poor country." - Ron Paul
    "Beware the Military-Industrial-Financial-Corporate-Media-Government Complex." - B4L update of General Dwight D. Eisenhower
    "Debt is the drug, Wall St. Banksters are the dealers, and politicians are the addicts." - B4L
    "Totally free immigration? I've never taken that position. I believe in national sovereignty." - Ron Paul


    The views and opinions expressed here are solely my own, and do not represent this forum or any other entities or persons.

  5. #4

    Default

    Quote Originally Posted by Brian4Liberty View Post
    Been saying it for a long time. Wages are key to the Fed. By keeping wages low, it offsets their monetary inflation. Quite possibly my first post on this forum in Jul 2007:
    You have to admit this is a pretty clever con. We need more skilled workers!
    The essential English leadership secret does not depend on particular intelligence. Rather, it depends on a remarkably stupid thick-headedness. The English follow the principle that when one lies, one should lie big, and stick to it. They keep up their lies, even at the risk of looking ridiculous.

  6. #5

    Default

    Quote Originally Posted by Brian4Liberty View Post
    Been saying it for a long time. Wages are key to the Fed. By keeping wages low, it offsets their monetary inflation. Quite possibly my first post on this forum in Jul 2007:
    The Fed has not control over wages.
    "The future is here, it's just not evenly distributed yet." - William Gibson

    I am Zippy and I approve of this post. But you don't have to.

  7. #6

    Default

    Quote Originally Posted by Zippyjuan View Post
    The Fed has not control over wages.
    Only when Greenspan is running around DC lobbying for more immigration and more outsourcing.
    Twitter: B4Liberty@USAB4L
    "Foreign aid is taking money from the poor people of a rich country, and giving it to the rich people of a poor country." - Ron Paul
    "Beware the Military-Industrial-Financial-Corporate-Media-Government Complex." - B4L update of General Dwight D. Eisenhower
    "Debt is the drug, Wall St. Banksters are the dealers, and politicians are the addicts." - B4L
    "Totally free immigration? I've never taken that position. I believe in national sovereignty." - Ron Paul


    The views and opinions expressed here are solely my own, and do not represent this forum or any other entities or persons.

  8. #7

    Default

    I don't get it. It sounds like the article is saying that rates are too high. The problem is that the rates are way too low.

  9. #8

    Default

    Quote Originally Posted by Madison320 View Post
    I don't get it. It sounds like the article is saying that rates are too high. The problem is that the rates are way too low.
    It is a no- win according to some. It doesn't matter what the Fed does.

    The Fed kept rates too artificially low- hurting the economy and the poor to the benefit of the rich.
    The Fed raising interest rates will hurt the economy and the poor to the benefit of the rich.
    "The future is here, it's just not evenly distributed yet." - William Gibson

    I am Zippy and I approve of this post. But you don't have to.

  10. #9

    Default

    As the Austrians show, interest rates are an important signal regulating intertemporal consumption vs investment. Distort them, and you create destruction, along with a wealth transfer to those connected to the fed.

  11. #10

    Default

    The poor Fed. I feel so sorry for them.

    I am not one for slogans, but if I had to pick one it would be: End the Fed!


    Quote Originally Posted by Zippyjuan View Post
    It is a no- win according to some. It doesn't matter what the Fed does.

    The Fed kept rates too artificially low- hurting the economy and the poor to the benefit of the rich.
    The Fed raising interest rates will hurt the economy and the poor to the benefit of the rich.






Similar Threads

  1. Replies: 28
    Last Post: 06-07-2012, 02:34 PM
  2. Replies: 0
    Last Post: 02-05-2012, 02:20 PM
  3. Replies: 1
    Last Post: 11-30-2008, 12:51 PM
  4. Replies: 4
    Last Post: 10-18-2008, 09:40 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •