We are in trouble because of FED, and now FED is in trouble - It can't end well

in fed-up •  8 years ago 

Yellen_cartoon_04.06.2016.png

We all know that for whatever reason FED wants to have higher inflation rate. Not sure why higher inflation would help excepting making us more poorer, but that's beside the point.

So FED started pumping up the stock market assuming that people will invest in stocks and get rich and then withdraw some profits and spend. That didn't happen. People didn't get out of stock markets as there were few places to go.

Then FED started pumping the housing market, assuming that this will be a motivation for people to get out of stock, buy a home and that would increase spending as people will need to furnish the house and also repair/remodel. That didn't happen. Jobs weren't created and people were still suffering the aftermath of waves of foreclosures.

FED then started reducing the saving rates forcing people to spend the money today rather than lose the purchasing value tomorrow. That didn't happen. People just don't have the appetite left for these games.

FED devastated the gold and silver markets, thereby forcing the people to flock to stocks but that didn't happen. People who invest in gold and silver, as it turns out, are a bit smarter than FED. (#steemsilvergold community included!)

Then came a new game in town - Bitcoin. And FED saw big money move away from stocks to cryptos. This was outside the control of FED. So they started buying into it so that they can cause volatility and shake people out. Not much luck. People in cryptos are well aware of FED games.

FED as the last step started raising short-term interest rates to make dollar strong but that backfired as it started to invert the yield curve.

As a last resort, FED today, punished the dollar and it dropped by almost a dollar (no pun intended!). This is to create the situation that puts a doubt in people's mind that they should buy assets (aka spend money now) as the value is going to go down. But it is not going to happen as people are seeing that with such a sharp drop in the dollar, the gold and silver remain unmoved and that is a red flag in itself.

As you are reading the article, you must be thinking - "hey that doesn't make sense". And it doesn't. What FED is doing makes no sense at all. It is as if, someone puts down his /her pot and says, "Let's do this" and everybody is too high to critically judge the actions.

So forget the inflation Yellen, I am yelling that you should be watching out for deflation. Forget the recession Yellen, everybody is yellin' that you are going to cause depression.

Time for easy money - Minimum Basic Income! This is the only thing that will guarantee inflation and destruction of America - that's what you want Yellen, don't you?

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"Now" in trouble? We've been in trouble for a long time. This corps has been dead and portrayed to the zombies as being alive. Problem is it's way past stinking, there are actual maggots falling off the table at this point. Funny how people can't see the decay..............

Well said but now FED is in a full blown panic mode.

Well, I'd like to believe that and if so GOOD! Bout' time these crooks had to look themselves in the mirror. Let's not forget these mafia members have all the fiat and means to do whatever they like. We can all sit around and say they've lost control but we all know that's part of the plan.

As you say, this is going to end very badly. Huge monetary experiments always fail. This time will be no different I'm afraid.