By: Phil Grande, Phil's Gang
You can fool some of the people all the time, and all the people some of the time, but you can't fool all the people all the time.
Two "Academics" who may argue that concept with you are an MIT professor named Gruber and another "Educator" - the Chair of the Federal Reserve - Janet Yellen; who is touring the US meeting with investors and educators around the country. She's there to tell them that the Federal Reserve has only two mandates... 1) to maximize employment, and 2) to stabilize prices through moderating long term interest rates. But she fails to disclose a third, which is their dirty little secret that they keep to themselves. This one is that once money is pumped into the market through QE; the Federal Reserve is mandated to manipulate and to boost stock prices. Then they are to redistribute the wealth from those increased stock prices, straight to those already in the market. That's the 10-percentile who controls 80% of all the privately held stocks.
This is a huge driver of "income inequality" formed by crony capitalism which the Federal Reserve has become the enabler. Yet Yellen insists the Federal Reserve is not the cause of "income inequality". Not only are they the main enablers of "income inequality"; the stock market and the Federal Reserve are codependents. By that I mean the Federal Reserve along with the criminal banks; suppress the price of metals downward and the dollar upward. Since August the dollar has continued to climb as Europeans have sold their Euros and bought dollars, as they believed that the US was in a recovery. Once they realize there is no recovery and what little recovery there is a jobless and wage-less recovery... they will bail and the dollar will take a dive. The metals and mining stocks should then soar with oil.
Without exception, the current QE bubble is the biggest one yet and like all bubbles must burst. Why? Because at some point bubbles rise above a certain level, which is then completely unsustainable. This was the case in the Dot com and Housing con that wiped out house hold net worth to the tune of $5 trillion and $10 trillion respectfully. Yet this bubble when it bursts, will be more than the first two combined. The Federal Reserve prints money to put into circulation into the economy by giving it to banks to lend out. Unfortunately they have not been doing that, but instead have been making money in different ways. These include trading profits, investment banking fees, deposit accounts - and lending back the money to the Federal Reserve. This is money they borrow at zero percent, and lend back to the Feds at 5%! That doesn't help the economy; in fact...we now know QE hurts the economy from within.
Now with the cash they made from ways that didn't help the economy; and because of that, the economy is in a jobless and wage less recovery, the Federal Reserve is forcing the banks to now take over the job of buying the 10 year treasury. Remember we have been lied to that QE is used to stimulate the economy. It's a total lie; it's to stimulate stock prices. The Federal Reserve implements quantitative easing by buying mortgages and treasuries that are on the balance sheet of the banks. The idea is that it will cause the prices to rise and yields to fall. However when rates hit zero percent, QE doesn't work anymore. The only thing it does at that point is increase stock prices; creates a bubble and at the same time the economy cannot improve.
Yet Yellen is touring the country deceiving everyone by saying how the economy is improving when it's not. When the net outcome of all this QE has been to create even more wealth for the already very wealthy. They can then put that money in a pile with all their other money.
As for the seniors and retirees; they are left with few choices. They can go back to work or to start taking on major risk at 70 and 80 years of age. Let's hope that in 2016 we get a President who loves the country and puts the people before politics and his party. A President that knows the solution is small business and helps to support them. Not like Obama who is trying to destroy them.
Why does he hate small business? Because he knows that if jobs are created his whole ideology, his dream of a socialist welfare state... will be lost. See, that only thrives when there is poverty and that is EXACTLY why Obama is killing small business and full time jobs. He's using his Obamacare to help do it for him.
So, who's fooling who? We know the answer and it's folks like Obama, Yellen and hired "academics" who are trying to fool everyone all the time. Don't be fooled.
For more information about Phil Grande and Phil's Gang visit our website at www.philsgang.com