Justified Or Not, Yellen Takes A Parting Shot


#41

I disagree. When the crash occurs all currencies will be utter crap. But the most desired piece of all the crap will be the US dollar and everybody will want some. The dollar will be the best of the currencies under these conditions. The US dollar isn’t going anywhere.

The stock market collapse will collapse the Chinese economy as well because their debt problem is just as bad as the US debt problem. Chinese debt is three times its GDP. What does China do to keep its debt economy afloat? It devalues its currency against the dollar and it buys US debt. The US dollar and US debt will be ever more desirable during the crash to come.


#42

The Chinese economy relies on selling cheap plastic junk to the west, so they will be kind of fucked, but they have been sourcing gold to back their currency with.

I’m not a huge fan of the gold standard because gold is a) beautiful and b) useful and it’s a shame to keep it all in a bunker underground somewhere, but it is something real to peg your currency to, temporarily at least. The Chinese are definitely trying for this, whether they’ll succeed is another matter.

How did the Dollar become the global reseve currency? The British sent (((Lord Balfour))) to negotiate with (((Lord Rothschild))) and Woodrow Wilson to get the US into WWI to bale out the Allies after the Eastern Front collapsed after the (((Russian Revolution))). Rothschild’s price was Palestine, Wilson’s was global reserve status. In the 1960s the French went and asked to change their dollars for gold, as promised on the notes themselves, but the Fed told them LOL GTFO you snail eating perverts! When the French left, the Fed realised they had a problem, why should other countries accept notes not backed by gold? So (((Kissinger))) was sent to OPEC to cut a deal, so that oil would be sold for dollars in exchange for military protection. Saddam Hussein was the first to realize that the US wasn’t fulfilling its side of the bargain and tried to sell his oil for Euros, and got taken out at the third attempt. Gaddafi was trying to put together a gold-backed Dinar for the whole of Africa to sell its resources in, which would have been good for Africa, but bad for the (((Cabal))) which owns the Fed, and so Hilary was charged with taking him out, which she made a mess of, quite frankly.

The only thing keeping the USD as the global reserve currency is fear of the US military, only this has been severely weakened by Obama policies and among the populace there is no more will left to keep fighting this endless Orwellian war.


#43

Wall Street is melting down because everyone knows Trump is about to start mass-deportations.

Can you convince someone to invest in a company they know will face decreasing demand?

The ponzi scheme is coming to an end, sadly the backlash of this won’t result in a utopia but rather mad max style gangland cannibalism.


#44

I suppose that’s a serious appraisal of the situation???


#45

But wait a minute, I thought our boys were fighting overseas for our freedoms???


#46

Bond holders are terrified of inflation, because it devalues their holdings. Better to own debt in an inflationary time.

The new deficit doves, i.e. GOP Congress, are trying to persuade the bond market they will be fine, but it is sinking in that Congress will trigger inflation.


#47

Ironies abound in Trumpland. Hannity claims economy was weak all along under Obama and being propped up by cheap money (quantitative easing). Actually not a trivial point, the monetary stimulus was more effective at supporting equity prices than in direct stimulus. But Hannity of course leaves out the reason the Fed was acting: Republicans would not allow fiscal stimulus, so the Fed acted as it could. And the real joke is Hannity et al claiming the rising market for Trump and the falling one for Obama.

All good things come from Trump, of course. And all bad things come from the Devil, I mean Obama. This raises the theological question: Is God (Trump) all-powerful or not? Why does he allow the Deep State to exist? It must be to allow Free Will.

John Fugelsang: “Trump is not the Anti-Christ, Christ is the Anti-Trump.”


#48

So tell me… of the 800 billion stimulus package Obama got at the beginning of is tenure how much was assigned to infrastructure? With a little investigation you will find that it was 30billion… of the 30 billion very little went to roads and bridges. The vast majority of it went to fund energy projects like Solyndra. The vast majority of his stimulus went to tax cuts, unemployment compensation and state relief…

Republicans raised the flag over the many times the money actually went to pad the pockets of ‘Friends of the Obama’s’ and of course, rather than sending illegals home so that Americans could actual find work, he funded extended unemployment. I suppose you could call that dumping cash into the economy but what it actually did was idol millions of otherwise capable workers… we could talk about this spending evolution that created Obamacare and medicare expansion that helped fuel the opioid epidemic…

As far as building the economy… I’m not quite sure how he managed to cause it to boom the month that Trump was elected… I guess business reacts to perception… I don’t think that people believe that ‘Obama built that business’…

As an after thought to your comments, using your logic, I would suppose that Obama should likewise get credit for the 70% drop of illegals showing up at the border… starting as soon as trump won the election… Hum?


#49

That one is too funny… how many times has he had to take BS ruling, primarily from the 9th circuit, to the Supreme courts? How many times has he been threatened over removing people like Rosenstein and even Mueller which is his actual right. How much negative ‘news’ has provided considerable headwind to anything he wants to do? How many people have managed to leak things like private calls to other countries leaders? How many of those leakers have been identified by those who’s job it is to investigate and punish such behavior… It will take time, but all things considered, the rats in this government are having a spotlight put on them… I know that it will break your heart but when actual evidence is found (and it can be found and exposed because TRUMP WON) all of the political antics of Obama from fast and furious to Uranium One to Covering for Clinton … who by the way DID NO WIN… Obama will be exposed as the charlatan that he is. But it takes time in the face of unprecedented obstruction. Just like Mueller who thinks he can roll people like Manafort to sing about someone bigger, eventually someone will give up Obama to save their own asses…


#50

Here come the global interest rate increases…


#51

What people fail to realize is that the president, past or present has little to do with the market. Actions like tax changes can affect the market however the driver is the federal Reserve.
The Federal reserves actions like:
ZIRP.
QE1-3
Operation Twist 1&2

Buying 4 trillion in debt with created dollars.

The Obama years are fat with growth provided by adding cheap money to the economy, as always the actions are now coming due. The Fed is raising interest rates, selling the 4 trillion in assets which will result in a recession.

And yes Janet, valuations are high because YOU and the board caused this bubble. And yes, the Dems and the media will crow about the devastation the recession will cause.


#52

So many monetary experts here with few understanding the actual function of the Fed.

And the reality is the Federal Reserve shouldn’t be biased yet they are appointed by THE PRESIDENT, you can see the bias.

The rule for policymakers is this:
The Federal Reserve should raise rates when inflation is above target or when GDP growth is too high and above potential.
The Fed should lower rates when inflation is below the target level or when GDP growth is too slow and below potential.
When inflation is on target and GDP is growing at its potential, rates are said to be neutral. This model aims to stabilize the economy in the short term and to stabilize inflation over the long term.
To properly gauge inflation and price levels, apply a moving average of the various price levels to determine a trend and to smooth out fluctuations. Perform the same functions on a monthly interest rate chart. Follow the fed funds rate to determine trends.

But as you know inflation, GDP levels have been largely ignored for the last 9 years by the Fed which causes, wait for it, A BUBBLE in the market and the inevitable fall.

Greenspans Feds caused the Housing bubble and Yellens extension of cheap money has caused this bubble.


#53

And the reality is the Federal Reserve shouldn’t be biased yet they are appointed by THE PRESIDENT, you can see the bias.

The Federal Reserve is the driver in controlling expansion and contraction of the economy.

But that in fairytale land it suits your beliefs better than reality.


#54

Your close but congress has little to do with inflation.

Prices and inflation are driven by three factors: the consumer price index, producer prices and the employment index. Most nations in the modern day look at the consumer price index as a whole rather than look at core CPI.


#55

Do you know how ridiculous that is???

The ponzi scheme you refer to is cheap labor.

The government allows illegals to easily enter the country.
Illegals work for cheap wages.
Illegals keep entry level wages, forcing all wages to remain stagnant, inequality to widen. The left whines louder. Oh the poor people.
The left demands higher minimum wages.
Government responds by raising minimum wages.
More illegals enter the country for higher wages.


#56

Hate to tell you but that went away decades ago.

Your TV, Cell Phone, power tools, steel, computers, pads, etc are not cheap plastic junk.

The Chinese now not only have out manufacturing but all our technology should American companies move manufacturing to other countries. The downside of off shoring.


#57

Fortunately we are the prettiest pig in the pen so far.
The problem will arise when investors begin to look at our debt level as unsustainable. At that point they will demand a risk factor, higher interest rates above the market norm.

The entire debt issue will finally come to a head as the Federal reserve raises interest rates and that 300 billion in interest gets larger every year. We will then pay for the largess of the Bush 5 trillion and the Obama 9 trillion in added debt not to mention the 4 trillion held buy the Federal Reserve.

Then the rubber will meet the road. The American people will then get to decide what we can afford and what we cannot afford. The reality will finally be seen, we cannot afford everything we have today. We need to raise taxes and EVERYONE including you will need to pay Federal income taxes, the safety net which exceeds over half of Federal Government spending will need to be reduced.

It’s no longer just about how much is collected in taxes but how much is spent which is totally ignored today.


#58

Yo,
The US has 20 trillion in debt, China has 4 trillion in debt.

IS this the new math??


#59

And Monte who’s fault is the debt?

IT’s the governments fault. Past and present.

Unfortunately out spending is on auto pilot.
The only way to cut spending is if you hit the biggies, Healthcare/Pensions/SS.
Over half of all government spending which doesn’t cover mandatory spending.

The Dems in 06/08 campaigned on cutting spending, did they, no. Did the GOP in 10/12 and 16, no.

What people campaign on is exactly that a joke on the American people like Forward or Hope and change, all just words without meaning when it comes to government.

But keep up the Hate it does so much for the country further deepening the divide.