Replies to post #200405 on Tornado Alley (PROG)

[SilverSurfer]

the Fed is fighting off deflation and the failure of tbtf multinational banks, not just U.S. bigs. May work out to be the best thing, we will see but either way the extraordinary measures have been a boon for the elites who front run. If the dilution solution plan works and deflation is snuffed out, we will see if inflation can be controlled when all the ballance sheet billions and trillions gain escape velocity into the general economy. In the mean time I don' know about you but I have been having to pay a lot more at the grocery store, gas pumps, medical care, college tuition and stocks are getting some strong inflation. The easy money always goes somewhere except to us dumb masses. Uh, "this" has been going on for 100 years. 1913 we got the private bank Federal Reserve and Income Tax.





[img]www.independentlivingnews.com/email/images/1913us_dollar.jpg
[/img]




http://mises.org/daily/6340/Where-Is-the-Inflation

https://www.independentlivingnews.com/2011/07/28/remarkable-new-evidence-of-gold-reemerging-as-money/

http://www.usinflationcalculator.com/

http://www.usinflationcalculator.com/inflation/us-inflation-spikes-as-consumer-prices-jump-in-february-2013/10001134/


https://www.aier.org/article/7545-everyday-price-index

[SilverSurfer]

maybe this is more your style...

Nanny State Fascism is OK Says Professor Because You Are Ignorant And Irrational

http://www.nytimes.com/2013/03/25/opinion/three-cheers-for-the-nanny-state.html?pagewanted=all&_r=2&;

[SilverSurfer]

They say a picture is worth a thousand words. In this case, the picture above is worth several trillion dollars (some would argue as much as $9 trillion).

The financial markets have become dependent on new Fed dollars. If you look at the few gray segments of the chart, the stock market swoons nearly immediately once the Fed halts its balance-sheet expansion.

For whatever reason (perhaps because it's owned by banks?), the Federal Reserve has chosen to use the price of financial securities as the signaling device that its efforts are yielding results. But the markets, like any junkie, demand greater and more frequent infusions to reach new highs. Note how the trend of successive Fed programs yields smaller and shorter-lived boosts.

The Fed lives in fear of re-entering recession while unemployment and wealth inequality remain stubbornly elevated. With so many families teetering at the edge, things could get ugly very quickly if a fall in asset prices were to create a "reverse wealth effect" that triggered another recessionary slowdown. So as long as low single-digit GDP growth persists, the Fed's hands are tied. It must continue to print.

No matter that the rising price of financial assets grossly benefits the top classes - namely the 1% who on 40% of the entire nation's wealth. In stark contrast, the bottom 80% of Americans own only 7%.

No matter that the Fed's money tsunami is creating asset bubbles (again) in stocks, bonds, college tuition, housing, commodities, etc. - further eroding that bottom eighty percent's ability to form capital to fund its future.

The Fed has gone "all in" here. There is no Plan B.


http://www.marketoracle.co.uk/Article39647.html