Cheap Tiffany Jewelry0The Social Security Revolt O

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Federal Reserve is on a slow march to oblivion. The credibility of the hollow men erodes further with each passing daytime. The riddle has faded, the wizardry gone. Only incompetence and ineptitude remain.
In some respects, the pate of the Federal Reserve tin be viewed as a sort of Witch Doctor, or Shaman. When the Shaman's powers are perceived as muscular, entire is well. The masses can take silence comfort in the truth that somebody is "in control."
But while the Shaman's powers erode -- or ultimately get exposed, like the man behind the curtain in the Wizard of Oz -- outrage and terror rapidly follow. Outrage at the sudden wastage of comfort (never mind the bald deception laid bare)... and fear at the realization that not 1 is truly on altitude of entities.
For the Federal Reserve, the masses are realizing two truths:
The Fed has one solution for each malady -- printing money.
In this case, it is the wrong solution to the wrong problem.
The hollow men are the ultimate example of the antique saw, "To the male with a beat, everything looks favor a identify." The hammer of Quantitative Easing (QE) is useless. And the more aboveboard of the Fed Heads know it full well.
Says Richard Fisher, President of the Federal Reserve Bank of Dallas:
In my darkest moments [link widoczny dla zalogowanych], I have begun to surprise if the monetary settlement we have yet engineered might even be working in the bad locations... A great many rush hourers or older cohorts who played by the rules... are earning exceedingly cheap nominal and real returns on their savings.
Further abatements in rates earned on savings will hardly endear the Fed to this part of the />
The comments are excerpted from a recent speech of Fisher's to the New York Association for Business Economics. (It is prevalent for Fed officials to wind their views through arranged comments.)
Let us now translate those comments into layman's English. By course of monetary accommodation "working in the wrong places," Mr. Fisher worries that the Fed has jacked up the wrong wealth prices.
Flooding the system with liquidity has helped out the banksters, and catered a windfall to rich enterprises with the ability to launder their profits through offshore subsidiaries, yet helped the average Main Street saver I'll say..
Mr. Fisher then openly worries, very rightly, that the Fed's maneuver to keep amuse rates approach zero adds insult to harm, as retirees with savings accounts are compelled to obtain by above chart scraps.
Worse still is the Fed's embrace of what Doug Kass cries "screwflation," as in, amount hikes in all the zones that completely screw over the medium class. When your grocery bill doubles but your paycheck shrinks, that's screwflation. When your heating bill goes up 50% while your money mart list earns zero, that's screwflation.
And as we have pointed out again in these pages (sans the use of Kass' term), "screwflation" is accurate what the Fed intentions to deliver different heaping helping of via "QE2"... with no clear sagacity as to how printing more money will actually create jobs, aid pay down debt, or otherwise kickstart an economy that is diseased for causes wholly OTHER than "a absence of liquidity."
The hollow men are focused on the wrong problems. But they cannot fix the genuine problems [link widoczny dla zalogowanych], so they don't attention.
(Social Security may be in the newspaper, but it's not the only thing moving the market right now. If youre seeing for increased market thinking , sign up for Taipan Daily.)
Social Security: The Straw That Breaks The Camel's Back?
The real risk here because the Federal Reserve is a backlash namely leads to historical political alteration.
It is likely, at fewest in theory, for parliament to audit the Fed, or even to threaten the Fed's independence. This has all been "possible" yet "no bloody probable," deserving to the big ramifications such a challenge would entail.
But if the Fed messes