The 0% interest rates of the past 5 years have made the wealthiest people in America and the world much wealthier. At least in (fiat) dollar terms.
This in an interesting take on why Reid moved when he did. From one of the best connected people in politics, Ron Paul. (He does have a son in the Senate.)
The employment numbers we get are sketchy at best when they are done “right.” For example the official rate of unemployment doesn’t count those who have given up looking for work, such as the millions in their late 50s and early 60s who have been forced to “retire” since 2008. It’s a very gamed number.
This isn’t a surprise. There is no way she would have been considered for the top job at the Fed had she been for an audit.
But we must keep the pressure on and we are thankful that Senator Vitter raised the issue.
3 key components to wealth which lasts generations are said to be gold, land, and art. The first 2 classes are somewhat obvious, but art is less so. Yet the rich over the centuries have always invested in paintings and sculpture.
Anyone voting for Yellen is a Keynesian and therefore an “old” Republican. Anyone voting against her is a “new” Republican like Senators Rand Paul or Ted Cruz. We will be able to identify clearly the players on each team.
Why does any of this matter to the average American?
I’m not kidding. The guy who was in charge of a big part of the Fed’s quantitative easing efforts in 2009, Andrew Huzar, explains that all the money printing, the exploding of the Fed’s balance sheet, all the central bank sleight of hand has hurt this country, and the world.
Will Janet Yellen, nominated by President Obama to head the Fed, provide a reasoned defense of current Fed policies in her upcoming Senate confirmation hearings? It isn’t likely.
When the man who couldn’t recognize a stock market bubble says this, watch out.
From the very beginning people have asked how the Fed would ever exit its Quantitative Easing program. Every time the Fed has indicated that it would stop its extraordinary measures the markets dip. Look at this chart.
There appears to be nothing under this market but freshly printed hundred dollar bills, cotton candy, and unicorn wishes. Throw in a good bit of marginally positive animal spirits too.
Faber says that the Fed will not taper its efforts but will instead be forced to print even higher amounts than the $85 billion (who knows) in funny money it is currently pouring into the world economy every month.