‘The longer central banks interfere, the worse the crash’

“I smell…Central bankers.”

How this obvious truth eludes so many economists is beyond me.

It’s simple. The central banks seek to goose the economy. They lower interest rates below the real market interest rate. As such people, institutions, everyone takes advantage of the relatively cheap credit. But as this cheap credit is taken advantage of malinvestment (that is investment that would not have happened if the market had set rates) begins to build up. It builds and builds and builds until there is so much malinvestment the economy topples on itself.

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Central Banks May Choose Helicopter Money Over Negative Rates

Here comes the Fed…Hooray.

The definition of “helicopter money” appears to be shifting a bit. Generally it means pouring currency (printed by a central bank) into the economic system by directly depositing it into accounts. What type of accounts appears to be an open question. Whatever the Fed chooses (assuming that it does) it is a bad idea however.

How about we let rates adjust to where they should be naturally? How about we let things clear. How about we get real now,

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Is the Fed keeping rates low to help Hillary? Trump says good chance, Clinton bristles

We reported earlier that a group of pro-Hillary activists were given a highly unusual audience with some of the Federal Reserve governors in Jackson Hole last month. The message officially to the Fed was “don’t raise rates and kill jobs.” But everyone there knew that the real message was “don’t raise rates and scuttle Hillary’s chances for the presidency.”

Yesterday Trump spoke to the issue of interest rates and economic manipulation by the Fed. He pointed out that the Fed has in many respects created a bizzaro economy where the entire world is reliant on near 0% rates of interest and increasingly,

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The Fraud Of Full Employment

The official unemployment rate is a baloney number. It doesn’t actually measure all of the unemployed. Those who are no longer eligible for unemployment benefits are simply treated as if they no longer exist for instance. This is millions of Americans. Very likely these unemployed “ghosts” are your neighbors. Or maybe even you.

The official unemployment rate is deceptive – as IBD says in the attached article.

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‘Brave New World’: Fed to Buy Corporate Debt?

The underlying Yahoo News article doesn’t actually talk about Fed buying corporate bonds. It only states:
” [Yellen] said, ‘future policymakers might choose to consider some additional tools that have been employed by other central banks,’ including buying a wider range of assets [ with newly created money.]”
But just imagine if the Fed did start buying corporate bonds, what a wave of corruption it would set off.

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Light that match: Yellen suggests radical new Fed policies

Yellen says the Fed is not “ actively considering” any of the radical and destructive ideas she outlines in her speech, but if not why is she mentioning them? These ideas include:  printing money to buy assets including stocks, targeting 4% or higher inflation, printing money until nominal GDP hits a certain target (Fed speak for until we get as much inflation as we want).

Also note that when ’08 hit, the Fed bought government supported mortgage securities even though that was illegal at the time.

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Bernanke’s Japan Visit Unveils “Helicopter Money”, Sparks Monster Rally

Loaded up and on the way.

“Dolla dolla bill ya’ll…”

Or is it yen yen ya’ll?

No matter, the helicopters are in the air over Tokyo and currency is about to fall from the sky.

Watch military spending in Japan ramp up. This ought to work. We promise. This time. It’s gonna happen.

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This video may blow your mind, the best illustration of the post Crash bailouts I’ve ever seen

This is from 2011 when the wounds of the Crash were still fresh.

Now we’ve been conditioned. Time has passed and the banks want you to forget what happened and the dull economic pain which still dogs the world.*

We at ACC will never forget.

At the end of this video is a very short ad for someone who was running for Congress. We do not endorse candidates ever. We don’t know who this person is.

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The Keynesian Blessing: Americans Are Broke

Americans are debt addicts. They love to spend. The politicians love to spend. Everyday Americans love to spend. Spend, spend, spend. And we wonder why many things, our society even, feels so cheap.

People live on credit. They finance cars, houses, vacation – cell phones – think about that – PHONES. They don’t save.

And why should they? They get nothing for saving. There’s literally no real return on socking money away in a bank these days.

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(YIKES) US created 38,000 jobs in May vs. 162,000 expected “There’s one word for it, which is just shocking,”

I was listening to Bloomberg this morning in the car and this kind of number was certainly not on the table for the economists and money managers they had on for the breakfast show. (At least the ones I heard.)

38,000 huh? And these numbers of late have been particularly subject to downward revision over time. This is a significant blow and may put a lot of the economic world back on the heightened state of alert we saw at the beginning of the year as stocks dipped seriously.

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