‘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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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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“The Japanification of the US” – Investors to central banks: We aren’t listening anymore

The headline is actually false. People still do listen to central banks. There still is the feeling that the economic drug dealer still has some cocaine to pump into the system. If investors weren’t listening at all we’d be seeing a much more interesting market.

But investors are listening less. Or perhaps more accurately, investors are listening but are much more dubious. The central bankers have long lost their wizard status, at best they are magicians, and even so people are catching the sleight of hand more and more often.

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The Economist says the political divide is between “globalists” and “anti-globalists”, no it’s the political class versus everyone else

In the attached article The Economist frets that the trend toward “globalism” (their word) is in jeopardy. And what the magazine or “newspaper” calls globalism is indeed being challenged. The headlong march toward transnational governments embodied in the European experiment is under attack. And for good reason. People feel disenfranchised.

The average person sees a “global order” (again The Economist’s words) which cares little for the “pedestrian” interests of the middle class. The bourgeoisie sees a rising crony class,

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