Rapture verdict ad 1
The Beginning Of The End Ad
Gold Buying Guide: Golden Eagle Coins
Lear Capital: The Best Source for Buying Gold & Precious Metal Investing

Recent Posts

The Book Of Mysteries
Economic Collapse DVD The Preppers Blueprint Economic Collapse Blog Get Prepared Now Ad

How The Federal Reserve Is Setting Up Trump For A Recession, A Housing Crisis And A Stock Market Crash

Share on FacebookTweet about this on TwitterPin on PinterestShare on Google+Share on LinkedInShare on StumbleUponEmail this to someone

Janet Yellen - Public DomainMost Americans do not understand this, but the truth is that the Federal Reserve has far more power over the U.S. economy than anyone else does, and that includes Donald Trump.  Politicians tend to get the credit or the blame for how the economy is performing, but in reality it is an unelected, unaccountable panel of central bankers that is running the show, and until something is done about the Fed our long-term economic problems will never be fixed.  For an extended analysis of this point, please see this article.  In this piece, I am going to explain why the Federal Reserve is currently setting the stage for a recession, a new housing crisis and a stock market crash, and if those things happen unfortunately it will be Donald Trump that will primarily get the blame.

On Wednesday, the Federal Reserve is expected to hike interest rates, and there is even the possibility that they will call for an acceleration of future rate hikes

Economists generally believe the central bank’s median estimate will continue to call for three quarter-point rate increases both this year and in 2018. But there’s some risk that gets pushed to four as inflation nears the Fed’s annual 2% target and business confidence keeps juicing markets in anticipation of President Trump’s plan to cut taxes and regulations.

During the Obama years, the Federal Reserve pushed interest rates all the way to the floor, and this artificially boosted the economy.  In a recent article, Gail Tverberg explained how this works…

With falling interest rates, monthly payments can be lower, even if prices of homes and cars rise. Thus, more people can afford homes and cars, and factories are less expensive to build. The whole economy is boosted by increased “demand” (really increased affordability) for high-priced goods, thanks to the lower monthly payments.

Asset prices, such as home prices and farm prices, can rise because the reduced interest rate for debt makes them more affordable to more buyers. Assets that people already own tend to inflate, making them feel richer. In fact, owners of assets such as homes can borrow part of the increased equity, giving them more spendable income for other things. This is part of what happened leading up to the financial crash of 2008.

But the opposite is also true.

When interest rates rise, borrowing money becomes more expensive and economic activity slows down.

For the Federal Reserve to raise interest rates right now is absolutely insane.  According to the Federal Reserve Bank of Atlanta’s most recent projection, GDP growth for the first quarter of 2017 is supposed to be an anemic 1.2 percent.  Personally, it wouldn’t surprise me at all if we actually ended up with a negative number for the first quarter.

As Donald Trump has explained in detail, the U.S. economy is a complete mess right now, and we are teetering on the brink of a new recession.

So why in the world would the Fed raise rates unless they wanted to hurt Donald Trump?

Raising rates also threatens to bring on a new housing crisis.  Interest rates were raised prior to the subprime mortgage meltdown in 2007 and 2008, and now we could see history repeat itself.  When rates go higher, it becomes significantly more difficult for families to afford mortgage payments

The rate on a 30-year fixed mortgage reached its all-time low in November 2012, at just 3.31%. As of this week, it was 4.21%, and by the end of 2018, it could go as high as 5.5%, forecasts Matthew Pointon, a property economist for Capital Economics.

He points out that for a homeowner with a $250,000 mortgage fixed at 3.8%, annual payments are $14,000. If that homeowner moved to a similarly-priced home but had a 5.5% rate, their annual payments would rise by $3,000 a year, to $17,000.

Of course stock investors do not like rising rates at all either.  Stocks tend to rise in low rate environments such as we have had for the past several years, and they tend to fall in high rate environments.

And according to CNBC, a “coming stock market correction” could be just around the corner…

Investors are in for a rude awakening about a coming stock market correction — most just don’t know it yet. No one knows when the crash will come or what will cause it — and no one can. But what’s worse for most investors is they have no clue how much they stand to lose when it inevitably happens.

“If you look at the market historically, we have had, on average, a crash about every eight to 10 years, and essentially the average loss is about 42 percent,” said Kendrick Wakeman, CEO of financial technology and investment analytics firm FinMason.

If stocks start to fall, how low could they ultimately go?

One technical analyst that has a stunning record of predicting short-term stock market declines in recent years is saying that the Dow could potentially drop “by more than 6,000 points to 14,800”

But if the technical stars collide, as one chartist predicts, the blue-chip gauge could soon plunge by more than 6,000 points to 14,800. That’s nearly 30% lower, based on Friday’s close.

Sandy Jadeja, chief market strategist at Master Trading Strategies, claims several predicted stock market crashes to his name — all of them called days, or even weeks, in advance. (He told CNBC viewers, for example, that the August 2015 “Flash Crash” was coming 18 days before it hit.) He’s also made prescient calls on gold and crude oil.

And he’s extremely concerned about what this year could bring for investors. “The timeline is rapidly approaching” for the next potential Dow meltdown, said Jadeja, who shares his techniques via workshops and seminars.

Most big stock market crashes tend to happen in the fall, and that is what I portray in my novel, but the truth is that they can literally happen at any time.  If you have not seen my recent rant about how ridiculously overvalued stocks are at this moment in history, you can find it right here.  Whether you want to call it a “crash”, a “correction”, or something else, the truth is that a major downturn is coming for stocks and the only question is when it will strike.

And when things start to get bad, most of the blame will be dumped on Trump, but it won’t primarily be his fault.

It was the Federal Reserve that created this massive financial bubble, and they will also be responsible for popping it.  Hopefully we can get the American people to understand how these things really work so that accountability for what is coming can be placed where it belongs.

  • Guest

    “It was the Federal Reserve that created this massive financial bubble, and they will also be responsible for popping it.”

    True, but the Federal Reserve only does what it’s told to do by those higher than they. Yellen isn’t the one who makes the important decisions. She’s just a yes-man(woman) who rubber stamps the decisions of her overlords.

    • socalbeachdude

      Absolutely false. The Federal Reserve did not create any bubble at all and has REPEATEDLY WARNED against excessive valuations in the stock and real estate markets. The Federal Reserve is run by its 7 member Board Of Governors which manage the 12 Federal Reserve Regional Banks in the US and the FOMC consisting of the BOG and 5 of the 12 regional bank presidents makes all policy decisions by consensus.

      • Guest

        The first sentence of my comment is a quote from the article. So your argument is not with me, it’s with the author of the article. You’re not too bright.

        • Stuey

          Haha….good one!…..what a dumbass drugheaddude is.

          • socalbeachdude

            Thank you for describing YOURSELF once again so very perfectly!

          • Stuey

            So you admit by your response that you are a drughead……or at least you knew who i was referring to by “drugheaddude”

          • socalbeachdude

            What utter stupidity, dude.

  • Mark

    Snoddy, or Below088 has been trying to make itself out to be a “god”, pretending like they have it all together and pretending to offer sound council all the while hiding the fact that it is suicidal. Has tried to commit suicide in the past and recently thought about committing suicide. It is very hard to keep up the façade of deception that you are your own god and know it all. We are merely trying to help by declaring the truth and hoping this person turns for true help.

    • Cinderella Man

      I keep telling Twaatblossom to reschedule her appointment with Dr Kevorkian…thick headed

    • snodtblossom

      I’m the mighty snodtblossom and I need “Crack”. Ahahahhahahaha!!!!!!

      • Mark

        You need to admit you are suicidal and seek help and quit pretending your a god. You know its true and you can no longer hide behind your façade of deception. Seek help before its too late. That will require humility.

        • snodtblossom

          I admit it. What about that one time you almost died when you were choking yourself while watching dude on dude action?

          • Mark

            OH good. It is hard to act like you have it all together while you really feel like there is nothing to live for except calling people names and degrading others. You are suicidal but it makes you feel better to attack others. Be humble and admit you need help before its too late.

          • snodtblossom

            Is someone there? Too late!

      • SnodtBlossom

        I have never tried crack

    • William Lutz

      Mind your own business Mark. You don’t know jack about snodtblossom.

      • Mark

        I know what I know,,,,

        • snodtblossom

          What do you know? Too late!

  • alan

    Trump won’t drain the swamp, the swamp will drain Trump.

    • socalbeachdude

      There is no swamp.

      • William Lutz

        Yes there is a swamp. It’s full of alligators that will bite Trump in the rear.

        • socalbeachdude

          You must be talking about the shadow government, but that is not a swamp but rather a CESSPOOL which can’t be drained and while needs to be filled in with concrete.

      • snodtblossom

        My snatch is a swamp!

        • socalbeachdude

          TMI

        • SnodtBlossom

          This is of course a latent h male imposter who only wishes he had a snatch of his own. The cooties in his momma’s snatch ate into his brain while he was born in her womb rendering him deranged and sexless.

          • snodtblossom

            I’m snodtblossom and my own written sentence describes myself best 100% ahahahahahaha!!!!

          • LIZ THE SHIZ

            oh so now your a psychiatric gynechologist , when you get a yeast infection do you bake bread with it?

    • GSOB

      There is a Marine swamp that needs to be drained.
      …..the Navy swamp, the Army swamp and Air Force swamp too.

  • they’re bluffin,no rate hike

    8 years plus of virtually no private sector demand at any level,soaring gov’t spendin/borrowin/taxing and with civil war getting ready to go hot in brazil,venuzuela and china,u think the fed has any intention of pricking the myriad of bubbles out there,i don’t think so

    • socalbeachdude

      The US Treasuries markets are doing that with yields that have been soaring upwards since last June. All the Federal Reserve does with the only 3 interest rates they set is to match the Federal Funds Rate to the yield (interest rate) on 3 Month US Treasuries and they are FAR BEHIND THE CURVE at this stage in doing that.

      • GSOB

        I repeat…
        may it never be. What a scary thought.

        • socalbeachdude

          Interest rates are inevitably returning to NORMALIZATION AT AROUND 5.25% in the 10 year US Treasury markets. And that will be a significant issue for the US government’s interest obligations on its $20 trillion federal debt. Presently those yields (interest rates) are around 2.62% on the 10 year US Treasuries.

  • Cinderella Man

    Good let them crash it now. President Trump will be fine if it happens this early in his term. You know this Michael. There is no way that this economy can stay on this path. We all know the stock market has ceased to be the bellwether of economic health. The economy is in shambles. It was bad with lil Bush it was exacerbated by Barry Ho. Now this fine mess. Its ok if we have to default and dismantle the Fed so be it. Lets get it over and done with waiting for economic doomsday is getting quite tiresome. And socalbeachdude will hijack the thread shortly…

    • William Lutz

      Well said Mr. Cinderella. I say the same thing. I’m Fed up with the Fed and government getting away with manipulating our money and increasing our debt with impunity. If the system doesn’t crash by next year, I’m going to be pissed. Congress better not decide to raise the debt, because we can no longer continue down this road indefinitely.

      • socalbeachdude

        The Federal Reserve does not do that at all.

        • William Lutz

          Yes I know, but the Fed enables them to do so.

          • socalbeachdude

            Absolutely false. The Federal Reserve only even owns about $2.5 trillion of the outstanding $20 trillion of US Treasuries which is less than 14%.

          • William Lutz

            You’re not understanding me. I’m suggesting that the Fed prints money so that the Government can keep the vicious cycle of spending. That creates some debt in the process. The Fed is only partly responsible, but not to a full extent. Comprende?

          • socalbeachdude

            The Federal Reserve does not do that at all and has kept the money supply in the US at very low levels relative to our $18 trillion a year economy.

            The total M1 money supply in the US is only $3 trillion and only $1.3 trillion of that is printed currency. This is confirmed by the Federal Reserve H.3 report:

            http://www.federalreserve.gov/releases/h3/current/

            M2 which includes M1 plus savings balances is only around $13. None of the QE funds increased the money supply at all but only served to increase the MONETARY BASE with 100% of those funds remaining inside the Federal Reserve.

            That LITTLE BIT OF MONEY supports the largest economy in the world which is now an $18 trillion a year economy.

            Not a penny of the debt in the US was run up by the Federal Reserve at all.

          • William Lutz

            Well either way, there’s no denying that the whole establishment is corrupt and we are headed for absolute bankruptcy.

          • socalbeachdude

            Americans Wealthier Than Ever…

            U.S. household net worth climbed to a record $92.8 trillion in the fourth quarter of 2016, as the end-of-year surge in stocks and a steady climb in home prices added more than $2 trillion of wealth to household balance sheets.

            The biggest contributor to the increase was the stock market’s end-of-year rally, which added $728 billion to household net worth in the fourth quarter, according to the Federal Reserve’s quarterly financial accounts report.

            https://www.wsj.com/articles/u-s-household-net-worth-reaches-record-92-8-trillion-1489078918

          • Stuey

            So what is your point here? You complain the stock market is too high and will crash soon but use the wealth it has created as an proof to William Lutz that we aren’t headed for bankruptcy. Which side of the fence are you on or are do you jump from side to side depending on what your are arguing at the time?

          • socalbeachdude

            The point here is, of course, that the total value of assets in the US far exceed the total debt of $64 trillion in the US. How long that will last is, of course, open to question and debate. There are no “sides” in that debate. Just facts and what those facts mean. The flip side of all debt is that it is held as an ASSET by its owner. Are you really unaware of that?

          • Stuey

            Oh no, i was not aware of that almighty one. NOBODY is as smart as you my godly friend.

          • GSOB

            Come home to yourself

          • GSOB

            People talk about the Federal Reserve increasing the money supply as printing money. Beachhead often chooses to ignore that in order to display his split hair thinking.

          • socalbeachdude

            Huh?

          • GSOB

            Well said. Follow that gut instinct

          • socalbeachdude

            I’d suggest you attempt to use your mind and actually understand the facts!

          • D B Cooper

            Debt Based Monetary System — from the selling of Treasury bonds to “create” the fiat currency … thru that private bank the Federal Reserve …down to fractional reserve banking

          • Lennie Pike

            You will get no reply – you pinned him, I mean it down with that one.

          • socalbeachdude

            Laughably false, dude!

          • Lennie Pike

            You had no reply – therefore true.

            Pay attention!

          • socalbeachdude

            I have replied extensively on all issues.

          • socalbeachdude

            There is no such thing as “fractional reserve banking” and all you are referring to is RESERVE REQUIREMENTS in the US banking system which mean that no bank can ever loan out more than 90% of its customer deposits with the current 10% reserve requirement on those deposits.

          • GSOB

            Hair splitting…..

          • GSOB

            The treasury prints money. When banks need cash, they request it from the Federal Reserve.

          • socalbeachdude

            Laughably false. The Federal Reserve NEVER JUST GIVES ANY BANKS ANY MONEY. Where do you come up with such utter nonsense? The Federal Reserve only sets 3 interest rates and none of those matter the slightest bit of a hoot in the US economy.

            The BOND MARKETS SET INTEREST RATES IN THE US ECONOMY AND NOT THE FEDERAL RESERVE. The yields (interest rates) in the bond markets have been SOARING EVER SINCE JULY and that is where all interest rates that affect the US economy are keyed off, and NOT the only 3 interest rates set by the Federal Reserve which simply do not matter a hoot in the US economy.

            The only 3 rates that the Federal Reserve is involved with setting are:

            1) Federal Discount Rate – currently 1.25%

            2) Federal Funds Rate (which it influences) – currently in the range of 0.50% to 0.75%

            3) Federal Reserve IOER (Interest On Excess Reserves) – currently 0.75%

            The IOER (Interest On Excess Reserves) interest rate does have an immediate beneficial impact for banks as it is the interest paid to banks on their excess reserves accounts inside the Federal Reserve and those accounts now have more than $2.5+ trillion sitting in them.

            The ONLY applicability of the Federal Funds Rate is INTERBANK BORROWING to clear nightly transaction balances which is now practically NEVER UTILIZED as the banks are awash in trillions of dollars of EXCESS RESERVES and have no need to borrow from each other.

            As to interest rates on savings accounts, BANKS ARE AWASH WITH EXCESS CUSTOMER DEPOSITS AT A TIME WHEN DEMAND FOR BORROWING IS VERY LOW which is why interest on savings rates is so low and that is not likely to change much.

          • GSOB

            You are inflated beyond desirable measure.

          • GSOB

            He don’t know how to teach.

          • GSOB

            It now takes two working parents to support a family and the national debt is accelerating higher and higher.

          • socalbeachdude

            Folks in the US need to stop living far beyond their means which means cutting their excessive spending and not running up so much unnecessary debt.

          • GSOB

            They are part of the check and balance system. (pun intended)

        • Dean

          Federal Reserve Is A Perpetual Debt Machine

          The Federal Reserve system was designed to be a trap. The intent of the bankers was to trap the U.S. government in an endless debt spiral from which it could never possibly escape.

          But most Americans don’t understand this. In fact, most Americans don’t even understand where money comes from.

          If you don’t believe this, just go out on the street and ask regular people where money comes from. The responses will be something like this…

          “Duh – I don’t know. I’ve got to get home to watch American Idol.”

          This is why it is so important to get people educated. I think that most Americans would be horrified to learn that the creation of more money in our system also involves the creation of more debt.

          The following is a summary of money creation that comes from one of my previous articles…

          When the U.S. government decides that it wants to spend another billion dollars that it does not have, it does not print up a billion dollars.

          Rather, the U.S. government creates a bunch of U.S. Treasury bonds (debt) and takes them over to the Federal Reserve.

          The Federal Reserve creates a billion dollars out of thin air and exchanges them for the U.S. Treasury bonds.
          So what does the Federal Reserve do with those Treasury bonds? I went on to explain what happens…

          The U.S. Treasury bonds that the Federal Reserve receives in exchange for the money it has created out of nothing are auctioned off through the Federal Reserve system.

          But wait.

          There is a problem.

          Because the U.S. government must pay interest on the Treasury bonds, the amount of debt that has been created by this transaction is greater than the amount of money that has been created.

          So where will the U.S. government get the money to pay that debt?

          Well, the theory is that we can get money to circulate through the economy really, really fast and tax it at a high enough rate that the government will be able to collect enough taxes to pay the debt.

          But that never actually happens, does it?

          And the creators of the Federal Reserve understood this as well. They understood that the U.S. government would not have enough money to both run the government and service the national debt. They knew that the U.S. government would have to keep borrowing even more money in an attempt to keep up with the game.

          • GSOB

            Join the discussion…

          • socalbeachdude

            No wonder folks don’t “know” that in America because what you assert regarding the Federal Reserve is patently false and laughably so!

            Each year the US Treasury issues more than $7 trillion in new US Treasuries (bills, bonds, notes, and TIPS) and the Federal Reserve purchases less than 8% of these. The US government itself through its agencies is the largest purchaser and holder of US Treasury debt.

            The Federal Reserve only owns about $2.5 trillion total of US Treasuries and the INTEREST ON THOSE IS FREE TO THE US TREASURY as the Federal Reserve rebates more than 94% of its annual profits each year to the US Treasury.

            I would suggest you learn about the US Treasury market at:

            http://www.TreasuryDirect.gov

          • Dean

            Why bother learning anything now? The system is coming down anyway. To quote the witch Hillary, at this point what difference does it make.

          • socalbeachdude

            No, the “system” will be just fine and the Federal Reserve will be shining brightly as the central bank of the US 100 years from now in 2027!

          • Dean

            LOL

      • GSOB

        Raise the debt ceiling, it is always in vogue.

    • socalbeachdude

      The Federal Reserve only sets 3 interest rates and none of those matter the slightest bit of a hoot in the US economy where all interest rates that do matter are keyed off the yields set in the US Treasuries markets.

      • Mikel Ryanson

        Here is the annoying troll now saying the most idiotic things. You trying to get a job with the fed reserve?

        • socalbeachdude

          What I have stated is, of course, 100% true, accurate, and correct.

          • GSOB

            Huh?

  • DJohn1

    A lot depends on who holds the influence over the FED.
    Because a whole lot of people in the billionaire class of people stand to lose. These may not be nice people. It is possible they might do something about it.
    They also know who is who at the FED. I would not be those in charge at the FED if they allow something economically bad to happen. Trump may get hurt. But the people responsible, might get ruined.
    Trump this early in his presidency can lay blame where it belongs.
    Then pick up the pieces and organize a recovery.
    People are not quite as stupid as the Obama Crowd and the Democrats think they are.
    This could backfire big time on the opposition.
    I am reminded of events prior to getting confirmed by the Congress. Everyone was making noises about not confirming the election.
    The problem is that a lot of campaign money flows into both Democrat and Republican finances. Where does that money come from?
    I suggest the Billionaire Club finances a lot of people in both parties and when push comes to shove all they have to do is suggest that an action not take place.
    No politician in his or her right mind will oppose openly the powerful and the rich behind the congress.
    Interestingly enough, the party with the most millionaires is the Democrats.
    Who stands to lose the most?
    More than likely it is the Democrats.

    • socalbeachdude

      All policy decisions at the Federal Reserve are made by the FOMC which consists of the 7 Federal Reserve members of the Board Of Governors and 5 representatives from the total of 12 Federal Reserve Regional banks. This is how the FOMC (Federal Open Market Committee) has always operated.

      • Mikel Ryanson

        Yes because their is now way anyone can be a puppet or bought. their is no way those members can be corrupt and screw over the American people. Do you believe half the things you say?

        • socalbeachdude

          Everything I have stated regarding the Federal Reserve is 100% correct. I’d suggest you learn the difference between the words “their” and “there.”

          • Horiboyable .

            Wow I wish I could achieve 100% accuracy! How do you do it.

          • socalbeachdude

            Hard work and solid dedicated research.

          • LIZ THE SHIZ

            cut/copy/paste from other sites you mean , you’re a fraud

          • GSOB

            He is an island and he isolates the mechanism that fosters the drip rate of the bleeding economy.

            As the parasite said to the host, …..

            relax.

          • socalbeachdude

            Huh?

          • GSOB

            You really sparkle….you know that?

          • socalbeachdude

            Hardly, but you certainly might be. Sad.

          • socalbeachdude

            Only for highly pertinent sources and quite excellent articles covering the current situation far better and in greater detail than I could create for here.

          • Stuey

            You are a legend in your own mind.

      • GSOB

        And your point?

        • socalbeachdude

          Isn’t that totally clear? If not, why not?

          • GSOB

            Every six weeks is a bit much for all these bankers to meet.

          • socalbeachdude

            Why? It would likely be best if they met weekly with all that is going on today.

  • socalbeachdude
  • socalbeachdude

    The FEDERAL RESERVE SIMPLY MATCHES THE FEDERAL FUNDS RATE TO THE YIELD ON THE 3 MONTH US TREASURY RATE and that has been the case for the entire 100 years of operation of the Federal Reserve.

    Obviously, the Federal Reserve will continue to TIGHTEN as it has been doing for the past year and will raise the only 3 interest rates that they set – not that it matters a hoot – on December 14, 2016.

    The Federal Reserve these days has nothing left that it can do except to push on limp noodles and there’s not much result with that.

    The Federal Reserve DOES NOT SET ANY INTEREST RATES THAT MATTER IN THE US ECONOMY NOR DOES IT EVEN INFLUENCE INTEREST RATES IN THE US ECONOMY TO ANY SIGNIFICANT EXTENT AT ALL.

    Changes in the Federal Funds Rate ALWAYS MATCH THE YIELD ON 3 YEAR US TREASURIES WHICH ARE THE KEY INTEREST RATE THAT ALWAYS LEADS WHERE THE FEDERAL RESERVE SETS THE FEDERAL FUNDS RATE and as Sandy Greenlyn stated recently over on MarketWatch, “It’s interesting how few people understand that the Fed funds rate chases the market-driven 3M T-Bill exactly and they have never deviated at all.”

    Open market operations are TOMO (Temporary) and POMO (Permanent) and were ESSENTIALLY RENDERED IRRELEVANT AND USELESS WITH THE FEDERAL RESERVE VERSIONS OF QE which were POMO ON STEROIDS.

    The BANKS ARE NOW SO AWASH IN VAST EXCESS RESERVES as a result of selling securities to the Federal Reserve with QE that the banks in the US now have MORE THAN $3.5 TRILLION IN EXCESS RESERVES compared to the historical norm of around $25 billion in excess reserves in their accounts at the Federal Reserve.

    The Federal Discount Rate only applies to member banks BORROWING DIRECTLY FROM THE FEDERAL RESERVE AT THE FEDERAL DISCOUNT RATE which is presently 1.00% which is 200% of the top 0.50% range of the Federal Funds Rate at which banks can borrow from each other.

    Banks can only borrow with the Federal Discount Rate on a fully collateralized basis for very short terms (typically overnight) STRICTLY FOR LIQUIDITY PURPOSES and THEY LITERALLY NEVER BORROW FROM THE FEDERAL RESERVE DIRECTLY as that has always carried a stigma and is now 200% of the cost for them to borrow from each other at the Federal Funds Rate. The Federal Reserve Discount Window has always been a LAST RESORT BORROWING MECHANISM for banks with sudden severe liquidity problem and has rarely ever been utilized hardly at all.

    RESERVE REQUIREMENTS are also TOTALLY IRRELEVANT THESE DAYS as banks are AWASH WITH VAST HUMONGOUS EXCESS RESERVES FAR IN EXCESS OF WHAT THEY ARE REQUIRED TO MAINTAIN AS RESERVES AGAINST BANK CUSTOMER DEPOSITS.

    The current loans outstanding utilization rate against customer deposits at banks is a RECORD LOW 67% and the maximum amount banks could lend if there were demand assuming a 10% reserve requirement would be 90%.

    Banks presently have MORE THAN $3.5 TRILLION IN RESERVES in their primary and excess reserves accounts at the Federal Reserve, so the “reserves requirement tool is also TOTALLY IRRELEVANT.

    Essentially, the FEDERAL RESERVE HAS NO TOOLS WHATSOEVER IN THEIR “TOOL BOX” AT ALL ANYMORE.

    • GSOB

      Today, America’s largest export is the U.S. dollar.

      • socalbeachdude

        The US does not “export” US dollars and is running a HUGE AND GROWING TRADE DEFICIT as it imports vastly more goods than it sells abroad.

  • socalbeachdude

    IT DOESN’T MATTER A HOOT WHAT THE FEDERAL RESERVE DOES WITH ANY OF THE THREE INTEREST RATES THEY SET as all interest rates that matter in the US economy are SET IN THE US TREASURIES MARKETS.

    The BOND MARKETS SET INTEREST RATES IN THE US ECONOMY AND NOT THE FEDERAL RESERVE. The yields (interest rates) in the bond markets have been SOARING EVER SINCE JULY and that is where all interest rates that affect the US economy are keyed off, and NOT the only 3 interest rates set by the Federal Reserve which simply do not matter a hoot in the US economy.

    The only 3 rates that the Federal Reserve is involved with setting are:

    1) Federal Discount Rate – currently 1.25%

    2) Federal Funds Rate (which it influences) – currently in the range of 0.50% to 0.75%

    3) Federal Reserve IOER (Interest On Excess Reserves) – currently 0.75%

    The IOER (Interest On Excess Reserves) interest rate does have an immediate beneficial impact for banks as it is the interest paid to banks on their excess reserves accounts inside the Federal Reserve and those accounts now have more than $2.5+ trillion sitting in them.

    The ONLY applicability of the Federal Funds Rate is INTERBANK BORROWING to clear nightly transaction balances which is now practically NEVER UTILIZED as the banks are awash in trillions of dollars of EXCESS RESERVES and have no need to borrow from each other.

    As to interest rates on savings accounts, BANKS ARE AWASH WITH EXCESS CUSTOMER DEPOSITS AT A TIME WHEN DEMAND FOR BORROWING IS VERY LOW which is why interest on savings rates is so low and that is not likely to change much.

    The only 3 interest rates set by the Federal Reserve have NOTHING WHATSOEVER TO DO WITH THE INTEREST RATES ON THE US GOVERNMENT DEBT as those yields (interest rates) are all set in the $12.8 trillion a year US Treasuries market and have nothing to do with the Federal Reserve.

  • socalbeachdude

    The Federal Reserve has nothing at all to do with any asset prices whatsoever and the Federal Reserve along with the IMF and BIS have repeatedly warned about excessive asset prices caused by manic speculation.

    FEDERAL RESERVE FED UP OVER FALSE PERCEPTIONS…

    Fed officials growing wary of market complacency – By Jon Hilsenrath

    Federal Reserve officials, looking out at mostly calm financial markets, are starting to wonder whether tranquility itself is something to worry about.

    http://www.marketwatch.com/story/fed-officials-growing-wary-of-market-complacency-2014-06-03-15103357?dist=tbeforebell

    The main reason that corporations have borrowed trillions of dollars is for STOCK BUYBACKS and the vast majority of the money coming into the stock markets in the US and globally since 2008 has been from corporations plowing back nearly 100% of their earnings along with vast trillions of borrowed money in order to pump up the prices of their own stocks.

    Bloomberg extensively reviewed this in an excellent article at:

    http://www.bloomberg.com/news/articles/2015-03-04/buybacks-at-46-billion-a-month-dwarf-everything-in-u-s-market

    Stock buybacks are WHAT HAVE CREATED THE BOGUS BUBBLES IN STOCK VALUATIONS and that has nothing to do with the Federal Reserve and as that slows as corporate earnings plummet, the MARKETS ARE HEADED FOR THEIR BIGGEST CRASHES IN THE HISTORY OF STOCK MARKETS.

  • aldownunder

    Over the years I have witnessed three booms and busts.
    Pre and post 1987 ‘Black Monday’.
    Pre and post 2000 ‘Tech Wreck’.
    Pre and post 2007/2008 GFC.
    But this next crash, I believe, is going to be on a far larger scale.
    There seems to be a perfect storm brewing.

    • socalbeachdude

      I fully concur and who is to blame are the speculators in the stock markets who totally ignored the fundamentals and who bid up stock prices beyond all reason based on HOPIUM AND FALSE PERCEPTIONS.

      • Sam nolan

        Your in a dream world maybe watching too much msm fake news. The coming crash is mainly because of banker and government corruption not speculators. Not saying they don’t have a little affect but not as much as you like to pretend.

        • socalbeachdude

          Laughably false. The single biggest things that have propelled the stock markets upwards over the past 8 years are HOPIUM, FALSE PERCEPTIONS, and SHARE BUYBACKS by corporations.

  • socalbeachdude

    Obviously, QE couldn’t and didn’t “boost growth” when 100% OF THE FEDERAL RESERVE QE FUNDS HAVE ALWAYS REMAINED FULLY INSIDE THE FEDERAL RESERVE.

    The Federal Reserve versions of QE were a series of 3 programs during which the Federal Reserve expanded the MONETARY BASE – but not the money supply – through ASSET SHIFTING TRANSFERS with member banks by purchasing EXISTING SECURITIES consisting of MBS instruments and US Treasuries from those member banks in exchange for depositing the proceeds in the excess reserves accounts of those banks inside the Federal Reserve with NOT A SINGLE PENNY OF THOSE FUNDS EVER LEAVING THE FEDERAL RESERVE.

    Those QE programs totally ended on October 31, 2014 and the Federal Reserve has no interest in continuing with any further QE as they have clearly stated.

    Replacing matured securities with new securities is NOT QE in any sense of the word at all and where you come up with the totally false and utterly bogus notion that it is QE is really beyond mind boggling.

    That entire increase of securities owned by the Federal Reserve came from the 3 Federal Reserve QE programs between 2008 and October 31, 2014 when the Federal Reserve totally ended its versions of QE.

    All Federal Reserve QE transactions were strictly ASSET TRANSFERS FOR BOOK VALUE with the proceeds deposited into the excess reserves accounts of those banks who sold securities inside the Federal Reserve. What kind of a silly question is that? What is so difficult for you to comprehend about the simple facts regarding the QE funds?

    All that was done was to SUBSTITUTE SECURITIES FOR CASH and nothing more and that did not increase the amount of assets at banks by a single penny. All it did was to pour the same Kool-Aid from one pitcher into another.

    All of the Federal Reserve QE funds were deposited into the EXCESS RESERVES ACCOUNTS of the banks inside the Federal Reserve who sold existing securities to the Federal Reserve. There was never $4.5 trillion. That is the total amount of the Federal Reserve balance sheet which started out in 2008 with a $1 trillion balance.

    The total amount of QE funds is around $3.5 trillion. Nobody “got richer” at all. The banks merely sold EXISTING SECURITIES TO THE FEDERAL RESERVE FOR NO NET GAIN AT ALL and the proceeds were deposited into the excess reserves accounts of those banks inside the Federal Reserve.

    FEDERAL RESERVE VERSION OF QE EXPLAINED:

    1) Federal Reserve buys securities from banks

    2) Federal Reserve deposits cash proceeds in excess reserves accounts of those banks at the Federal Reserve

    3) Securities stay parked on assets side of Federal Reserve GL

    4) Proceeds funds stay parked on liabilities side of Federal Reserve GL in the excess reserves accounts of the banks at the Federal Reserve

    The process was an ENTIRELY CLOSED LOOP just as if it were done inside a VACUUM.

    http://www.federalreserve.gov/releases/h8/current/

    http://www.federalreserve.gov/monetarypolicy/bst_fedfinancials.htm

    There is no “currency bubble” at all and the US money supply has only $3 trillion in M1, $12 trillion in M2, and $13.6 trillion in MZM.

    The QE funds are sitting parked in the required and excess reserves accounts of the banks and none of them ever got into the economy at all as is clearly established by the evidence on that matter. The total amounts in those excess reserves accounts now exceeds $2.5 trillion with the balance of QE funds in their required reserves accounts inside the Federal Reserve which is shown in the current H.6 reports:

    Money Stock Measures – H.6

    http://www.federalreserve.gov/releases/h6/

  • socalbeachdude

    Fed hands $117 billion in earnings to Treasury for 2015

    The Federal Reserve announced on Monday it transferred a record $117 billion in earnings to the U.S. Treasury during 2015.

    The transfer is nearly 21% more than the prior record of $96.9 billion, set in 2014.

    The transfer includes $97.7 billion in remittances, a side benefit of the U.S. central bank’s earnings from its massive bond-buying purchases. The Fed’s balance sheet now totals $4.5 trillion.

    In addition, the Fed transferred $19.3 billion to Treasury as required by the transportation spending measure signed into law late last year. That legislation mandated that the Fed’s capital surplus not exceed $10 billion.

    http://www.marketwatch.com/story/fed-hands-record-117-billion-in-earnings-to-treasury-2016-01-11?dist=afterbell

  • socalbeachdude

    The Federal Reserve has nothing at all to do with any asset prices whatsoever and the Federal Reserve along with the IMF and BIS have repeatedly warned about excessive asset prices caused by manic speculation.

    • Sam Nolan

      The fed and imf make all types of warnings yet are the ones behind all the corruption. Their is no reason to listen to them as they are the main ones destroying the world economy. Keep drinking the koolaid though.

      • socalbeachdude

        There is no “corruption” whatsoever involved with the Federal Reserve. Both the Federal Reserve and the IMF have been consistently correct with their warnings about excessive speculation and bubbles and debt as has the BIS (Bank for International Settlements) which is the central bank of central banks.

  • aldownunder

    Global debt hit a new all-time high of $217 trillion.
    By the end of 2016, global debt was roughly 325% of the world’s gross domestic product.
    There is nothing sustainable about debt levels growing to the sky and beyond.
    This is how a world dependent on debt functions for as long as it can, but we are beyond fulltime we’re in extra extra time now,the final siren wont be good.

    • socalbeachdude

      100% correct, and the correction will involve very significantly higher interest rates on that debt which will result in massive write downs and defaults.

  • socalbeachdude
  • socalbeachdude
    • GSOB

      Yellin is gellin

      • socalbeachdude

        Janet Yellen does not and cannot make any policy decisions unilaterally (by herself) at the Federal Reserve and all policy decisions including the rates on the only 3 interest rates they set are made by consensus of the 12 member FOMC of which Janet is merely one member with one vote, albeit she is Chairman.

        • GSOB

          And that’s why she’s gellin.

          • socalbeachdude

            She’ll announce the increase in the only 3 interest rates set by the Federal Reserve tomorrow at the end of the FOMC meeting.

          • GSOB

            Oh, the magnitude…..of the storm
            .
            in
            .

            the

            .

            Northeast

  • socalbeachdude

    The Federal Reserve is the single largest revenue source for the US government as it rebates 94% of its annual profits to the US Treasury and its taxpayers each year.

    That now amounts to nearly $100 billion of revenue each year for the US government making its $2.5 trillion of holdings in US Treasuries TOTALLY INTEREST FREE. The Federal Reserve does not cost the US Treasury or its taxpayers a single penny to operate.

    • Sam nolan

      Why do you keep commenting like a troll on every article a million times? Do you work for George soros or Rothschild. You sound like your an employee of the fed. If you want to comment so much with your dumb nonsense go start your own website.
      The fed reserve is a criminal entity. It’s basically a Jewish monopoly. Last 3 chairman were all Jews no coincidence their. We have never had a full audit as the fed does not allow it. We don’t know the full extent of the trillions those criminals have stolen.
      If you believe the fed gives almost all their profits to the U.S. goverment than your a fool. The fed also has no right to control our money supply. Next to the goverment it’s the biggest reason our economy is falling.

      • socalbeachdude

        All of my comments are 100% true, accurate, and correct. You are apparently extremely ignorant regarding the Federal Reserve as is clearly proven from your absurd and totally false assertions regarding the Federal Reserve.

        There is nothing even slightly “criminal” about the Federal Reserve and it was created by an Act of Congress which is known as the Federal Reserve Act which the Federal Reserve very faithfully follows, and I would suggest you read and attempt to comprehend the Federal Reserve Act at:

        https://www.federalreserve.gov/aboutthefed/fract.htm

        The Federal Reserve annually rebates 94% of its profits to the US Treasury for the benefits of the US government and its taxpayers. If you do not comprehend that then you seriously need to learn about the Federal Reserve and how it operates as it has ALWAYS done that and now those rebated profits amount of around $100 billion with a record high rebate of $117 billion for 2015 as covered by the MarketWatch article which is cited below.

        http://www.marketwatch.com/story/fed-hands-record-117-billion-in-earnings-to-treasury-2016-01-11?dist=afterbell

        • Dean

          That’s not what your friend Jeff Rense thinks.

          • socalbeachdude

            There is nothing even remotely “criminal” about the Federal Reserve.

      • Lennie Pike

        fake jews

        • Lennie Pike

          It is folly to argue with a liar. Ignore socaldude.

          • Lennie Pike

            Trump is a fed lackey like all the rest. The endless war will continue, criminal Wall Street will continue unregulated and unprosecuted, no swamp will be drained, amnesty will be given to every one of the 100,000,000 foreigners living in the U.S. whom have been given the jobs of Americans, Russia will either be attacked militarily or be provoked into attacking the U.S., and the U.S. will go cashless as a “solution” to a collapsed and worthless Dollar.

            Nothing will change until the fake jews (not anti-Semitic by definition) who control everything through their fraudulent financial system (including Donald Trump) are removed from power.

          • socalbeachdude

            Most of the current US population’s families came originally from foreign countries over the period of the 1700s right up through present. The US has always been a country that has welcomed immigrants – as long as they came here LEGALLY.

            Donald Trump’s lovely Jewish wife, Melania, is herself a foreign immigrant who came to the US LEGALLY. Donald Trump’s son-in-law Jarrod is Jewish and Donald’s daughter Ivanka converted to orthodox Judaism and they are a fine and wonderful family.

            Donald Trump understands and respects the excellent Federal Reserve in the USA and also respects proper regulation of the financial industry in the US and is a supporter of the return of the Glass-Steagall act which was a very simple and straightforward law consisting of only 34 pages that created walls in the financial industry splitting it into 3 non-integrated parts:

            1) commercial retail banking
            2) investment banking and brokerages
            3) all other financial concerns including insurance companies

            Russia certainly has no interest in attacking the US and will not be attacked by the US.

            The US is already a largely cashless economy and there are only even $1.3 trillion of printed US dollars in existence, but they will remain and will continue to be used as folks wish as legal tender.

            The US dollar is the most important currency ever created and is used is 83% of all global transactions and has been soaring in value on the DXY (basket of currencies) and has been rising very significantly in purchasing power against nearly all of the 27 major commodities in the world over the past 3 years and will continue to do so. The only real question is HOW HIGH THE US DOLLAR WILL RISE as it does create issues when it rises too substantially.

            Donald Trump is proving to be a GREAT AND WONDERFUL President and will most likely win re-election in 2020 and serve through 2024.

          • Stuey

            Melania is not jewish.

          • socalbeachdude

            Melania Trump is indeed Jewish and therefore so is Donald and Melania’s son Barron William Trump.

          • Stuey

            Awe, okay…….i guess that was why Melania demanded they get married in a Christian church. You really made of fool of yourself on this one, the mighty all knowing one has failed.

          • socalbeachdude

            Donald Trump is Episcopalian which is why there were married in an Episcopal church, but that certainly doesn’t make Melania any less Jewish. Helllooooo?

          • Stuey

            Yeah, with a Anglican service, which is Christian. Are you one of those anti-semites that sees “a jew” under every rock?

          • Stuey

            Yeah, with an Anglican service which is Christian.

          • Lennie Pike

            See my medium sized comment of the three.

            I have already undeniably discredited you to the point where you should have been embarrassed to the point of dissapearing from this site – no need to do it a second time since you will not do all of us a favor and leave.

          • socalbeachdude

            The only one you’ve discredited is YOURSELF with you bogus assertions.

          • GSOB

            John 14:6
            Jesus answered, “I am the way and the truth and the life. No one comes to the Father except through Me.

          • GSOB

            An economy with a total of $1,000,000,000 dollars in circulation, a house could never possibly be worth $2,000,000,000

            But, in an economy with a total of
            $1,000,000,000,000,000
            dollars in circulation, it could have thousands of homes worth
            $2,000,000,000

            Is it a coincidence that printing dollars is the U.S. government’s preferred method of dealing with economic problems?

          • socalbeachdude

            Huh? Where do you come up with $1 trillion in an economy and a $2 trillion house?

          • GSOB

            pun intended, hypothetical, point made.

          • LN

            Trump’s wife is a Presbyterian, idiot.

          • socalbeachdude

            Melania Trump was born Jewish and Donald and Melania’s son Barron William Trump is therefore also Jewish by birth.

          • Spatial Memory

            Obviously you have zero education nor experience within the banking or financial services industry whatsoever with that notion of “3 non-integrated parts”. Educate yourself ASAP. ROFL

          • socalbeachdude

            Thank you again for so perfectly describing your clueless little self.

          • GSOB

            The creation of more dollars allows for the inflation of asset prices.

          • socalbeachdude

            Not necessarily at all. The population of the US has expanded from around 100 million people in 1914 to around 320 million people in 2017. More people means there must be more money circulating in an economy.

          • GSOB

            It should come as no surprise that the United States maintains a major military presence in much of the Persian Gulf region, including the following countries: Bahrain, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates, Egypt, Israel, Jordan and Yemen.
            dollars for oil is preferred over the former dollars for gold.

          • socalbeachdude

            Yes, but so?

          • GSOB

            When, not if, the petrodollar system collapses, America will lose its “permission slip” to print excessive amounts of U.S. dollars……………………………………..

            Hyperinflation

          • socalbeachdude

            Absolutely false. The Federal Reserve is one of the most conservative central banks in the world and has created very little money over the past 10 years while the most egregous and irresponsible money printer inthe world – China and its PBOC have increased its money supply by more than $30 TRILLION for a mere $3 trillion less than 10 years ago – despite the fact that China’s economy is only about half the size of the US economy. Are you somehow not aware of that fact?

            The exchange value of the US dollar has appreciated upwards by more than 20% since 2014 which makes traveling abroad much less expensive in most countries and it has soared over the past year against the UK pound in particular.

            There is no such thing as the “petrodollar” and oil only accounts for LESS THAN 7% OF GLOBAL TRADE in which the US dollar is used and total transactions in US dollars accounts for more than 83% of all global trade.

            Oil can be and is purchased by countries in currencies other than US dollars and the most common currency other than the US dollar that oil is traded in is the EuroZone Euro.

          • Dean

            This Petrodollar System was the brainchild of Henry Kissinger and was given birth in the 1970s. It was a clever and diabolical system that enslaved everyone that needed asphalt for their roads and gasoline in their cars.

            The reason for that, is… if you wanted oil, you needed US dollars. The Arabs weren’t going to sell you any oil, if you didn’t have dollars. And the only way that you were going to get US dollars was to sell stuff to Americans. Otherwise, you didn’t get oil.

            Without oil, your country couldn’t develop. You couldn’t produce enough food for the workers, teachers, engineers, medical doctors and scientists (and so much more) to provide what every developed country desperately needs – educated, healthy manpower. To put it another way:

            Without oil, most of your population needed to be farmers.

            Without oil, you also became vulnerable to the military power of anyone who had lots of it – because they could have an advanced economy that produced enough money to buy weapons and training.

            Without oil, you became vulnerable, poor, uneducated and sick. And, THAT meant everyone in the world willingly became slaves to the Petrodollar System. Those who didn’t, quickly collapsed. Even the Soviet Union found itself unable to survive outside of the Petrodollar System, and fell apart.

          • socalbeachdude

            There is no such thing at all as the “petrodollar” as oil accounts for less than 7% of the annual global use of the US dollar which is used in around 83% of all global transactions for all sorts of goods and services around the world

          • GSOB

            I’d say just the opposite about beachhead.

          • socalbeachdude

            What I very clearly stated regarding the 34 page Glass-Steagall Act is 100% correct and the entire financial industry was indeed divided into 3 separate and distinct areas, specifically:

            1) Commercial retail banking

            2) Investment banking and brokerages

            3) All other financial entities including insurance companies

            Go read and attempt to comprehend the Glass-Steagall Act at:

            What Was The Glass-Steagall Act? – Investopedia

            http://www.investopedia.com/articles/03/071603.asp

          • GSOB

            The USA is the most powerful country in all the earth. God Bless America.
            Pray for her leaders.

      • socalbeachdude

        Each and every year, as has been the case for 100+ years, the Federal Reserve issues FULLY INDEPENDENTLY AUDITED Annual Financial Statements which are extremely detailed and run around 500 pages each year. They are fully publicly available for you and anyone else who is interested in them to fully read and review at:

        http://www.federalreserve.gov/publications/annual-report/

        The Federal Reserve does not cost the US government and taxpayers a single penny and is the LARGEST SINGLE PAYER OF REVENUES TO THE US GOVERNMENT each year.

  • socalbeachdude

    Federal Reserve chair hints the central bank will likely raise rates this month

    Federal Reserve Chair Janet Yellen addresses the Executives’ Club of Chicago, Friday, March 3, 2017, in Chicago. Yellen signaled that the Fed will likely resume raising interest rates later this month to reflect a strengthening job market and inflation edging toward the central bank’s 2 percent target rate.

    A rise in US interest rates could be ‘appropriate’ as soon as this month, according to the chair of the US Federal Reserve. Janet Yellen said in Chicago that a decision will be made mid-March.

    http://www.dailymail.co.uk/news/article-4279434/Yellen-signals-Fed-likely-raise-rates-month.html

  • Mikel Ryanson

    Can everyone just report the socalbeachdude. Click his name and report him how about for spam or something. He goes on every article and trolls insanely. Most of the comments in this comment section are from him. He is such a dumb shill. He is going out of his way to stick up for the fed reserve. He is saying the most idiotic things.

    • socalbeachdude

      I would suggest you read and and attempt to comprehend everything which I have stated which is 100% true, accurate, and correct and is fully backed by impeccable sources cited in each comment.

      • Spatial Memory

        The best place to learn the values of NOT MISSING OUT ON THE BIGGEST ECONOMIC EXPANSION EVER is to read the comical musings of those obsessively promoting the opposite positions despite the resulting angst….no link(s) needed.

        • socalbeachdude

          The only “expansion” there has been over the past 8 years is a massive EXPANSION OF DEBT which has increased in the US to more than $64 trillion and globally to well over $200 trillion. Are you somehow unaware of that enormously alarming expansion?

          GDPNow Q1 forecast plunges to 1.3% with vehicle sales, factory orders reports

          https://mishtalk.com/2017/03/07/gdpnow-1st-quarter-forecast-plunges/

      • Horiboyable .

        I like your independent source there.

        • socalbeachdude

          The Federal Reserve web site is the best and most comprehensive information available on the Federal Reserve and our Federal Reserve is the most transparent central bank in the world.

          • GSOB

            “This Act establishes the most gigantic trust on earth….When the President signs this Act, the invisible government by the money power, proven to exist by the Money Trust Investigation, will be legalized….The new law will create inflation whenever the trust wants inflation….From now on, depression will be scientifically created.” –

            who said that beachhead?

          • socalbeachdude

            An extremely clueless imbecile and moron named Congressman Charles A. Lindbergh who was soon thereafter thrown out of office.

          • GSOB

            And your point?

          • socalbeachdude

            That was a direct answer to your question.

          • GSOB

            Just keeping you on your toes

          • Horiboyable .

            Of course the Federal Reserve is totally impartial, that is why they have always welcomed calls for an audit.

          • socalbeachdude

            Each and every year, as has been the case for 100+ years, the Federal Reserve issues FULLY INDEPENDENTLY AUDITED Annual Financial Statements which are extremely detailed and run around 500 pages each year. They are fully publicly available for you and anyone else who is interested in them to fully read and review at:

            http://www.federalreserve.gov/publications/annual-report/

            What more do you want to know?

            The Federal Reserve does not cost the US government and taxpayers a single penny and is the LARGEST SINGLE PAYER OF REVENUES TO THE US GOVERNMENT each year and those rebates now amount to around $100 billion a year.

      • CASTIEL

        Keep that crap to you…..or open your own blog m#ron…..Most of people who visit this blog are tired of your sh#t!!!!!!

    • Reality

      just block it like most of us do here.

    • SnodtBlossom

      Socalbeachdude is the smartest guy on this board

      • Stuey

        Laughably absurd. But what else would i expect from you promoting yourself.

        • SnodtBlossom

          You’re not smart.. at all

          • Stuey

            Is that the best you got? Come on, i was expecting more from you! Call me Dirtbag XX or something.

          • SnodtBlossom

            Do you want to be a Dirtbag?

          • Stuey

            Yeah, i thought you had already assigned me a number previously. But i prefer “XX” it looks cooler.

          • SnodtBlossom

            To be a Dirtbag, you have to go thru a judicial review.

          • snodtblossom

            Ich Bin Madame President Hillary Clinton bwahahahahaha!!!!!!

          • GSOB

            Psalm 106:43
            Many times He would deliver them; They, however, were rebellious in their counsel, And so sank down in their iniquity

          • Stuey

            Now drugheaddude is upvoting his own post under his alias snotnose…….he just couldn’t resist to upvote everyone of his post.

          • socalbeachdude

            You are dead wrong once again, dude.

          • GSOB

            .
            .

          • GSOB

            How smart do you have to be?

          • GSOB

            Psalm 56:13
            For You have delivered my soul from death, Indeed my feet from stumbling, So that I may walk before God In the light of the living.

      • CASTIEL

        You and him are the dumbest rabid dogs i ever seen…..

      • GSOB

        Deuteronomy 32:39
        ‘See now that I, I am He, And there is no god besides Me; It is I who put to death and give life. I have wounded and it is I who heal, And there is no one who can deliver from My hand

      • LIZ THE SHIZ

        that’s because you are both the same troll commenter , pathetic

        • socalbeachdude

          Laughably false, and your totally off the wall false delusional comments cause me to really wonder about you, dudette.

      • GSOB

        Next to you.

    • CASTIEL

      I wonder why his crap shows in first place when you have more upvotes than him……..This motherf#cker is ruining the site….

  • socalbeachdude

    All 3 major stock indexes close at record for 1st time since 1999

    http://www.marketwatch.com/story/slumping-oil-prices-look-set-to-keep-lid-on-us-stock-rally-2016-08-11

    Last time all 3 stock indexes broke records, a long tumble came next

    Investors are hoping the markets don’t look anything like the last time stocks were breaking records simultaneously.

    After all three major U.S. stock indexes closed at record highs on Thursday.

    The last time the Dow Jones industrial average, Nasdaq and S&P 500 closed together at new highs was Dec. 31, 1999. Bill Clinton was in the White House, “The Green Mile” was in theaters and the dot-com bubble was nearing its apex. In March 2000, that bubble burst and all three indexes plunged.

    http://www.cnbc.com/2016/08/12/record-high-stocks-last-time-all-three-indices-broke-record-a-fall-came-next.html

  • socalbeachdude

    The Federal Reserve has NOTHING WHATSOEVER to do with stocks and it has warned repeatedly about excessive stock overvaluations which have been caused by CORPORATE BUYBACKS and STUPID MANIC SPECULATORS high on hopium and drunk on false perceptions wile totally ignoring fundamental valuation metrics.

    Remember One Thing – Karl Denninger

    The Fed has never, in its history, managed to actually prevent a market collapse.

    It did not do so in 1929.

    It did not do so in 1987, despite it being evident that the market was going to blow up.

    It did not do so in 2000, despite it being evident that the market was grossly overheated.

    It did not do so in 2008, despite having more than a year worth of warning (the two Bear Stearns hedge funds) and in fact Bernanke testified under oath that “subprime was contained.”

    It will not do so this time either.

    https://market-ticker.org/akcs-www?post=230456

    • Spatial Memory

      Why post such ludicrous misinformation?

      • socalbeachdude

        That comment from Karl Denninger is 100% true, accurate, and correct as is my preface to Karl’s comment.

    • GSOB

      Why Was the bailout bill necessary?

      • socalbeachdude

        It wasn’t and it had NOTHING WHATSOEVER TO DO WITH THE FEDERAL RESERVE but rather involved the US TREASURY forcing bailouts from the US Treasury on financial institutions most all of which who tried to REFUSE THEM.

        • GSOB

          Fear is what drove the bill to pass.

          • socalbeachdude

            Fear of what? Lies and stupidity surround FASB Rule 157 are what drove that utter nonsense.

            As to 2008-2009, that little and very rapidly corrected downward blip was all due to an accounting rule known FASB (Financial Accounting Standards Board) Rule 157 (“mark to market”) which was essentially rescinded in March 2009 at which point the markets returned to huge increases that surpassed prior levels.

          • GSOB

            And how was the bailout bill passed?

          • socalbeachdude

            Congress voted in favor of it. Obviously. Then Barack H. Obama II signed the bill. Then only about $400 billion of the approved $700 billion was ever even used and all but about $10 billion loaned to the “new GM” was repaid with high interest as soon as the financial institutions were allowed to repay it.

          • GSOB

            The Senate was forced to bypass the House, which had initially defeated the proposal that amounted to a taxpayer bailout of bad banking decisions.

          • socalbeachdude

            The TARP bill was not at all about “bad banking decisions” but about extreme market overreactions on the downside to the value of certain derivatives affected by the FASB Rule 157 “mark to market.”

            Moreover, there was NO NET BAILOUT AT ALL of any financial institutions other than to the “new GM” which was the only net cost associated with TARP when all was said and done.

          • GSOB

            TARP was just part of it.

            As it should, Congress debated the pros and cons of such a massive intervention.

            Was the taxpayer really out $700 billion?

            No

            Congress only authorized $350 billion to be lent out in 2008.

            The other $350 billion was saved for the new President when he took office in 2009.

            Obama never used the TARP funds to further bail out banks

          • socalbeachdude

            The bottom line is that the only loss from TARP was around $10 billion of the funds put by the US Treasury in the GM debacle where the bondholders and shareholders of the “old GM” were totally wiped out in that Section 163 Chapter 11 bankruptcy which should never have been allowed to happen the way it did at all.

          • Spatial Memory

            Put your head back in the sand. You seriously have zero clue what you’re typing.

          • socalbeachdude

            I’d suggest you read the history of TARP.

          • Spatial Memory

            Too freaking funny for words!! Without any doubt the most HILARIOUSLY mypoic misconception of the most significant financial event in global economies and asymmetric economic warfare with unquantifiable consequences to USA-“rapidly corrected downward blip”- cured by a fasb methodology modification= rotflmao. Thanks again for your excellent comedy!!!

          • socalbeachdude

            There was nothing particularly significant whatsoever about the turmoil caused by FASB Rule 157 back in 2008 to early 2009.

    • DeathtoFiat

      You’re clueless. The stock market soaring has almost a 100% correlation with the amount of corporate buybacks. And the Fed CREATES the crises and crashes, the boom and bust cycles, each time usurping more wealth and gaining more control. The next time will be the endgame, full control, centralized everything, impoverishing of hundreds of millions. Also, stop your spam. Surprised Michael doesn’t moderate your comments.

      • socalbeachdude

        I have clearly stated that corporate stock buybacks along with false perceptions (regarding the Federal Reserve) and hopium are the primary reasons that the stock market has gone up in other comments here which I would suggest you would read and comprehend.

        The Federal Reserve certainly DOES NOT AND CANNOT CREATE BOOM AND BUST CYCLES AT ALL as they have no means whatsoever to do so even if they wanted to and the only 3 interest rates they set are irrelevant in the US economy where all interest rates that do matter are set in the $13 trillion a year US Treasury markets from which all other interest rates are keyed – including the only 3 set by the Federal Reserve which are keyed off the yields (interest rates) on 3 month US Treasuries.

  • socalbeachdude
  • socalbeachdude
    • GSOB

      Why?

      • socalbeachdude

        Isn’t that obvious? The federal government work force is VASTLY BLOATED and need to be cut drastically and the US is running a $1+ trillion a year federal deficit.

  • socalbeachdude

    Trump’s first budget will call for major cuts in the EPA and HUD and a $54bn increase in defense spending when he sends it to Congress this week

    President Donald Trump is set to send Congress a proposed budget this week testing Republicans’ ability to keep long-standing promises to bolster the military, cutting into domestic programs.

    http://www.dailymail.co.uk/news/article-4305986/In-1st-budget-Trump-push-conservative-view-government.html

    • GSOB

      .
      .

  • socalbeachdude

    DOWN 20% FROM IPO PRICE DAYS AGO…

    SNAP stock has left bunch of millennial investors under water…

    http://nypost.com/2017/03/13/snaps-stock-has-left-a-bunch-of-millennial-investors-under-water/

  • socalbeachdude

    Wall Street Millennials Living Fast and Hard

    Many young Wall Streeters are turning to drugs and paying for sex to deal with the demands of their careers, a therapist tells ThinkAdvisor.

    “In an effort to cope with job stress and self-imposed pressure, these Type A’s are working murderous hours while relying on prescription medication and—primarily among the men—street drugs, such as cocaine and crystal meth, to help them focus and reach peak job performance,” the publication writes.

    That’s the word from, Jonathan Alpert, a mental health professional known as “The Wall Street Therapist,” whose clientele includes young traders, analysts, bankers and financial advisors.

    Driven millennials are suffering from stress-related headaches, sleep disorders, sexual performance disorders and other problems, he says.

    To help deal with demanding work, they use legal drugs for ADHD, but also street drugs like cocaine, methamphetamine and marijuana. Dabbling in drug use has become “a little more socially acceptable” as long as it doesn’t hurt performance, Alpert tells ThinkAdvisor.

    http://www.barrons.com/articles/wall-street-millennials-living-fast-and-hard-1489083342

    • CASTIEL

      You should go to a mental institution……

      • socalbeachdude

        You should read and comprehend the above article published a few days ago by Barron’s.

        • CASTIEL

          I dont give a crap about drugs in wall street…..and its the third time you post this sh#t…..I visit several sites for info like the majority of people who visits this blog……But we dont act like m#rons creating spam like you……

          • socalbeachdude

            No doubt you don’t care about so many on Wall Street being higher than kits on illegal drugs. Pitiful. Just pitiful.

        • Spatial Memory

          ROTFLMAO!

  • socalbeachdude

    This is the most overvalued stock market on record — even worse than 1929

    This is the most dangerous and overvalued stock market on record — worse than 2007, worse than 2000, even worse than 1929.

    Or so warns Wall Street soothsayer John Hussman in his scariest jeremiad yet.

    “Presently, we observe the broadest market valuation extreme in history,” writes the chairman of the cautious Hussman Funds investment group, “with the steepest median valuations on record, and the most reliable capitalization-weighted measures within a few percent of their 2000 peaks.”

    http://www.marketwatch.com/story/this-is-the-most-overvalued-stock-market-on-record-even-worse-than-1929-2017-03-13?mod=MW_story_top_stories

    • Spatial Memory

      The modifications from capitalization weighted indexing to float weighted and relative valuations have caught many flat-footed and market machinations have extracted some serious shekels from those that failed to recognize nor adapt. INCREDIBLY HILARIOUS to see you cite one and the INACCURATE legacy analysis relied upon.

      BTW, 2000 finished the year with the Dow Jones Industrial Average making fresh all time highs by Q4. Educate yourself.

    • billtheguy

      Well Socalbeachdude, there are more idiots in the stock market, meaning more overvalue!!

      • socalbeachdude

        Yep, and now that mom and pop have gotten in in droves this year, that huge crash is guaranteed.

  • Taos61

    You know they say the difference between a brown nose and *hithead is depth perception.Why all the excuses for this fascist clown??He doesn’t know what the hell he’s doing except how to run the country into the ground.

    • socalbeachdude

      How exactly is reining in totally out of control federal government spending “running the country into the ground?” Please do explain!

  • Spatial Memory

    Too funny watching a one trick pony still try and fleece any uneducated and uninformed rube that stumbles in. After multiple capital markets across multiple asset classes have clearly proven that today’s avant garde financially engineered efficient markets provide incredible opportunities regardless of current economic and market cycles still no sign of recognizing the NECESSITY of balanced asset allocation or balanced portfolios for viewers.

    Reality is with creeping to moderate inflation rate and GDP 0-3%, expect STOCKS / equities to OUTPERFORM. Rule of thumb is one hundred minus ‘your age’ is proper stock/equity allocation (100- age= X%). Rather than information on the NECESSITY of P.E.G. ratio analysis (price/earnings/growth) on individual stocks- just nonsense on static trailing data PE’s. The proofs of lack of any valued insights has been CONFIRMED REPEATEDLY by capital markets and INCREDIBLE MISSTEPS to any followers obviously MUST be recognized.

    Truth is global central banks have navigated with ABSOLUTE BRILLIANCE and as a result MOST of the population of the planet has BENEFITED tremendously.

    Nonsensical hyperbole like:
    “…it was the Federal Reserve that created this massive financial bubble, and they will also be responsible for popping it. Hopefully we can get the American people to understand how these things really work so that accountability for what is coming can be placed where it belongs…”

    is INCREDIBLY INACCURATE and INCREDIBLY HARMFUL to anyone that relied up such.

    • socalbeachdude

      I see you are lost in a sea of meaningless mumbo jumbo just as you always are!

      • Spatial Memory

        Forward discounting price discovery mechanisms known as capital markets have clearly REJECTED your IRRATIONAL guesswork!

        • socalbeachdude

          The only thing IRRATIONAL is the present market levels which are headed to their biggest plunges in the history of markets.

  • Spatial Memory

    Looking rough for bulls. Maybe proverbial “risk off” mantra broadens out in equities markets, Russell 2k already technical pullback last week 3%, NASDAQ G”growth leadership ” can’t generate significant short squeezes, / momentum broken on multiple time frames, spx – financial engineering schemes exhausted – been range bound, DJIA recent component changes charade unwinding. With end of March first qtr reports and policy events expect significant transfer of RISK and price dislocations.

    Any luck, “flight to quality” charade for bonds and TMV goes on sale.

    Jmho

    • socalbeachdude

      Huh?

  • Zlatko Milanovic

    Nope. Dumpf will be solely responsible, along with his Republican friends in Congress. Time to break out those long britches like a big boy. You break it, you own it.

    • socalbeachdude

      Huh? Broke what?

      • Zlatko Milanovic

        What part don’t you understand? It’s written in English….

        • socalbeachdude

          Donald is moving rapidly to fix many things that are broken. Hellloooooooo?

    • Mike Smithy

      Too late, Obama already broke it.

  • jakartaman

    You have to ask yourself – Why are so many forces trying to bring America down- even our last “president”? Where is this all going and why. Who/what will be the winners?
    My two cents are that the elite want to cause world chaos so that 80-90% of the world population dies. The masses are no longer needed and are a huge liability consuming much of the world resources.

    • Dean

      Georgia Guidestones

    • socalbeachdude

      What utter nonsense. Economies always have boom and bust cycles and go bust when there is TOO MUCH DEBT and this time the US and global debt are unprecedented in magnitude as will be the bust.

      • Spatial Memory

        Expansion – Contraction. Boom – Bust = ROTFLMAO
        Homeschool Economics

        • socalbeachdude

          CYCLES are exactly how economies work and that has been and always will be the case. Obviously.

  • David

    I say if Janet Yellin wants to raise rates and cause our Stock Market & our economy to crash then I say this would be a perfect opportunity for Donald Trump to get rid of the Fed once & for all!

    • socalbeachdude

      The Federal Reserve only sets 3 interest rates and none of those matter a hoot in the US economy. It really wouldn’t matter at all if the Federal Reserve raised the Federal Funds Rate (which only applies to interbank overnight borrowing on a fully collateralized basis) to 1000% as it is practically NEVER USED BY BANKS which are awash in more than $2.5 trillion in EXCESS RESERVES in their excess reserves accounts inside the Federal Reserve.

      • GSOB

        The artificial dollar demand created by the petrodollar system has “permitted” Washington to go on multiple spending sprees to further create their “welfare and warfare” state.

        • socalbeachdude

          The exchange value of the US dollar has appreciated upwards by more than 20% since 2014 which makes traveling abroad much less expensive in most countries and it has soared over the past year against the UK pound in particular.

          There is no such thing as the “petrodollar” and oil only accounts for LESS THAN 7% OF GLOBAL TRADE in which the US dollar is used and total transactions in US dollars accounts for more than 83% of all global trade.

          Oil can be and is purchased by countries in currencies other than US dollars and the most common currency other than the US dollar that oil is traded in is the EuroZone Euro.

  • Leif Erickson

    I am broke anyway. You can’t lose what you ain’t got, you can’t miss what you ain’t never had.

    • SnodtBlossom

      Get a job!

      • snodtblossom

        Get a better job!!!!!

      • GSOB

        Habakkuk 3:13
        You went forth for the salvation of Your people, For the salvation of Your anointed. You struck the head of the house of the evil To lay him open from thigh to neck. Selah.

    • Mr.Cipher

      Perhaps if you learned to write grammatically correct sentences you would acquire something you’d hate to lose.

  • Dean

    The fact remains, that there is a Communist/Muslim Brotherhood movement to takeover this country.

    How effective have they been? The following is a snapshot answer to this question.

    Sources: US Treasury Department, US Bureau of Labor Statistics, US Department of Agriculture, US Congressional Budget Office.

    Debt per US Citizen – Year 2009 = $31,000……..Year 2017 $61,340 (-$30,340)
    Labor Force Participation Rate – Year 2009= 65.8%….Year 2017 = 62.8%
    Home Ownership rate -Year 2009 = 67.3%….. Year 2017 = 63.5%
    Real Median Household Income – Year 2009= $57,744….. Year 2017 = $54,045 (-$3,699). This does not include 5% per year, adjusted for inflation.
    Average Hath Insurance Rate – Family Plan – $12,680….. Year 2017 = $18,142
    Food Stamp Dependency – Year 2009 = 32 million……Year 2017 = 43.6 million (-10.4 million) !!
    Persons living in poverty – Year 2009 = 38 million….. Year 2017 = 45 million (7 million) !!
    Number of people on Obamacare private insurance…Year End 2016 = 334,867
    Number of people on Medicaid supplemental – Year End 2016 = 17.4 million
    National Debt – Year 2009 = $10.6 Trillion…….Year 2017 = $20.1 Trillion (-$9.5 Trillion)
    $240 trillion dollar unfunded, but mandated liability of Social Security, Medicare and Medicaid.
    Obama’s final economic gift to the American people includes a credit swap derivatives debt, of which Obama has granted full payment of $1.6 quadrillion credit swap derivatives debt with annual interest rate of $505 trillion. Please note that the US government only takes in $2 trillion per year.

  • jox

    Trump could print Treasury Notes in his war with Yellen and the FED. But with caution. The last president that tried to do so was JFK.

    • socalbeachdude

      What utter nonsense. JFK did no such thing at all.

  • chris

    ‘In this piece, I am going to explain why the Federal Reserve is currently setting the stage for a recession, a new housing crisis and a stock market crash, and if those things happen unfortunately it will be Donald Trump that will primarily get the blame.’

    Unless they are actually setting the stage for something even bigger, namely the complete collapse of the current global Dollar based financial system and its subsequent replacement with something they have had waiting in the wings for ages such as a global digital ‘mark of the beast system’ run through the UN and IMF.

    • socalbeachdude

      The US dollar has been soaring upwards on the DXY for the past 3 years and is now at 101.78 on the DXY and headed much higher and is the most used currency in the world accounting for more than 83% of all global transactions and will continue gaining strength.

      http://www.marketwatch.com/investing/index/dxy

      • Spatial Memory

        Range bound since 2015- soaring = ROFL

        • socalbeachdude

          The US dollar is now at or near the highest level it has been in 3 years and has moved up very substantially from its low on the DXY in 2014.

      • GSOB

        Your hamburger demand is now global. Congratulations!

      • chris

        Until it isn’t…..

  • socalbeachdude
    • GSOB

      That’s it, fan it to flame…

      • socalbeachdude

        It really doesn’t matter a hoot what the Federal Reserve does with the only 3 interest rates it sets.

        • GSOB

          The Federal Reserve has a clear vested interest in maintaining a stable and growing global demand for
          dollars ……. They create them and then earn profit from them with interest rates which they set themselves.

          • socalbeachdude

            The Federal Reserve rebates more than 94% of its annual profits each year to the US Treasury for the benefit of its taxpayers and doesn’t need to create any “demand” for the US dollar which creates extremely high demand all by itself.

          • GSOB

            The Saudis agreed to price all of their oil sales in U.S. dollars only.

            Nixon and Kissinger had successfully bridged the gap between the failed Bretton Woods arrangement and the new Petrodollar system.

          • socalbeachdude

            So what? The Kingdom of Saudi Arabia produces only about 13% percent of all the oil produced daily in the entire world. All of the world’s oil only accounts for about 7% of the use of the US dollar in the world and 13% of that 7% amounts to the Saudi Arabian oil being 0.91% (less than 1%) of the use of the US dollar each year which is totally trivial.

          • GSOB

            Maintaining an empire dependent upon a “dollars for oil” system is no cheap task and requires careful monitoring and oversight of the world’s oil supplies.

          • socalbeachdude

            There is no broad “dollars for oil” system at all in the financial world and oil itself globally only accounts for less than 7% of all global transactions whereas 93% of all transactions have nothing at all to do with oil. Moreover, there is a massive record GLOBAL OIL GLUT and the price of oil is plunging rapidly and is now down to around $47 per barrel and headed much further down which will further decrease the percentage value of oil commodity purchases.

            Oil’s plunge below $50 sends options trading into a frenzy

            https://www.bloomberg.com/news/articles/2017-03-10/oil-options-trading-sent-into-a-frenzy-as-prices-fall-below-50

            Oil holds losses as supply glut looms – Bloomberg

            https://www.bloomberg.com/news/articles/2017-03-12/oil-holds-losses-as-u-s-supply-glut-expands-amid-libya-clashes

            OPEC data fans fears oil production cuts are in ‘jeopardy’

            http://www.marketwatch.com/story/opec-data-fans-fears-oil-production-cuts-are-in-jeopardy-2017-03-14

            Oil prices pummeled as data show higher U.S., Saudi crude output

            http://www.marketwatch.com/story/oil-prices-rise-for-the-first-time-in-7-sessions-monthly-opec-report-ahead-2017-03-14

          • GSOB

            This system of the U.S. dollar acting as global reserve currency in oil trade keeps the demand for the dollar ‘artificially’ high.

            This enables the U.S. to carry out printing dollars at the price of next to nothing to fund increased military spending and consumer spending on imports.

            There is no theoretical limit to the amount of dollars that can be printed.

            As long as the U.S. has no serious challengers and the other countries have confidence in the U.S. dollar,
            the dollars for oil system functions.

          • socalbeachdude

            You are simply not comprehending that oil (which is a commodity) accounts for LESS THAN 7% of the global economy and 93% of the global economy is not in any way involved with oil. Moreover, the price of oil is PLUMMETING DUE TO THE MASSIVE GLOBAL OIL GLUT and as a commodity in terms of price oil is LESS IMPORTANT THAN EVER in relationship to the US dollar and has nothing whatsoever to do with Federal Reserve monetary policy.

            There are very real limits to how many dollars can be created by the Federal Reserve and that limit has been reached and the Federal Reserve is now SIGNIFICANTLY TIGHTENING and has been doing so ever since it totally ended its QE programs on October 31, 2014 more than 2 1/2 years ago.

  • socalbeachdude

    Remember when Trump said raising rates would crash the ‘big fat ugly bubble’?

    http://www.marketwatch.com/story/remember-when-trump-said-raising-rates-would-crash-the-big-fat-ugly-bubble-2017-03-14

  • socalbeachdude
    • GSOB

      What scary thought…..

  • socalbeachdude

    Absolutely false. The Federal Reserve was created by an ACT OF CONGRESS known as the Federal Reserve Act and there is nothing in any way unconstitutional about the Federal Reserve Act.

    Kennedy did no such things at all as you falsely assert.

    • GSOB

      America’s central bank freed itself from the constraint of a gold standard.
      Now, the U.S. dollar can be printed at will…. without the fear of having enough gold reserves to back up production.

      • socalbeachdude

        No, the Executive Branch under President Franklin Delano Roosevelt got rid of the absurd 60 year failed “gold standard” experiment that was run from 1873 until 1933 domestically because the total amount of gold ever mined in the world was so tiny as to have no meaning at all to use any of it for “backing” the US dollar.

        Today in 2017, there are only about 180,000 metric tonnes of gold in existence with a total value of less than $7 trillion and around 70% of that gold is privately owned in the form of jewelry while the economy globally has expanded to more than 7.2 billion people and is now a $72 trillion a year economy with more than $700 trillion in assets.

  • socalbeachdude

    Full Text of Fed Chair Yellen’s Executives’ Club of Chicago Remarks

    I am pleased to join you today to discuss the U.S. economy and the Federal Reserve’s monetary policy. I strongly believe that my colleagues and I should explain, as clearly as we can, both the reasons for our decisions and the fundamental principles …

    https://www.bloomberg.com/news/articles/2017-03-03/fed-chair-yellen-s-executives-club-of-chicago-remarks-text

  • GSOB

    Psalm 68:19-20

    Praise be to the Lord, to God our Savior, who daily bears our burdens.

    Our God is a God who saves; from the
    Sovereign Lord comes escape from
    death.

  • GSOB

    Acts 4:12

    • aldownunder

      Time for a pill

      • GSOB

        Go paint your mirror black

        • socalbeachdude

          I’d suggest you polish your mirror.

          • GSOB

            LOL

    • mtntrek3

      The most important thing as Michael outlines in the green banner above. Two up votes. :-).

  • “V”

    The elites or the powers that be never expected a Trump Presidency, they always had the “FED” up their sleeve like a gambler to an Ace. Ready to play the ultimate card and ensure a one term presidency. I for one will be passing this article on to every friend, family member, neighbor etc. THIS IS NEWS THAT MUST BE SHARED.

    • socalbeachdude

      The Federal Reserve is a central bank and NOT A POLITICAL ENTITY at all and is not influenced or controlled in any way by politics. As to Donald Trump he is doing a wonderful job as President and will likely be re-elected for another 4 years when he runs for office again in 2020.

      • GSOB

        ?? Your point.

        • socalbeachdude

          Exactly as very clearly stated.

  • socalbeachdude

    The intensification of the GRAND GLOBAL DEPRESSION has been inevitable since it first started in August 2007 and has simply been delayed by the piling on of vast amounts of additional DEBT in the US and globally since then pushing total global debt up towards $220 trillion.

    • Spatial Memory

      Reality on earth as quantified by competent data sources CONFIRMED the absolute greatest economic and asset EXPANSION since record keeping began. Global capital markets price action has continued to CONFIRM. Thanks again for the many laughs. 🙂

      • socalbeachdude

        You’ll find out very soon WHEN – NOT IF the bubble bursts. Please don’t come back with a retort at that time such as “WHAT HAPPENED?”

  • GSOB

    God Bless the ATF

    • socalbeachdude

      What one earth does the ATF have to do with anything?

      • GSOB

        Yes, God Bless them and the military.

        • Gay Veteran

          why would your “god” bless our military???
          they commit war crimes around the world

  • socalbeachdude

    All currencies in the world are fully backed by the current and future labor and productivity and assets of the citizens of their issuing governments. And that is the core problem that the world is now facing as most governments around the world have ESSENTIALLY RENDERED INSOLVENT THE NET WORTH OF THEIR CURRENCIES BY VASTLY OVERSPENDING BEYOND THEIR MEANS and there are severe consequences for doing so.

    The US dollar, like all currencies, is backed by the current and future assets and labor and productivity of the citizens of the issuing government which is VASTLY MORE VALUABLE than some little junk commodity such as gold or silver.

    The so-called “gold standard” was a very brief 60 year experiment from 1873 until 1933 which proved to be a VERY STUPID AND ABYSMAL FAILURE at which point it was thrown into the garbage bin of the most stupid notions in the history of the world and incinerated.

    The gold standard was TOTALLY DISCARDED DOMESTICALLY BACK IN 1933 as that brief 60 year failed experiment was an exercise in utter absurdity and the US economy had totally outgrown any use whatsoever for a little thingy commodity such as gold in relationship to its currency.

  • socalbeachdude
  • DeathtoFiat

    Stop with this “recession coming soon” crap. We have been in a depression for at least a decade. Velocity of money is at a RECORD LOW, even lower than the “Great Depression”, and still tanking. The only reason we have not gone belly up yet USSR style is because of ZIRP, debt, central bank asset purchases with printed money, and trillions propping up the big banks. Take these things away, as has been happening since 2014, and everything falls apart. The election of Trump was part of the plan, since the bubble is getting ready to burst. It will ALL be blamed on Trump, by extension conservatives, by extension capitalism itself. Trump knows this, as evidenced by his cabinet FULL of bankers, most of them former Goldman execs. Making Goldman Sachs great again. That’s his real slogan. Trump the traitor. Those ICE “detention camps” (concentration camps) will one day be used to house more than illegals.

    • socalbeachdude

      There was no “ZIRP” to anyone and banks cannot and do not borrow from the Federal Reserve nor can anyone else do that to speculate in anything. The election of Donald Trump was most certainly NOT part of any plan and came as a huge shock – thank heavens – to those in power in the shadow government in the USA. Obviously, you are correct that assets will crash in price, but Donald is not to blame for any of that at all. The folks at Goldman Sachs are highly experienced at dealing with financial issues which is why so many were selected by Donald to be in his Administration.

  • mtntrek3

    Someone has to be at the helm when it crashes……. . That someone may be the one in office now. There are dark forces at work in the world. They want to tear down and rebuild according to their plans. “Out of chaos comes order”.

    • socalbeachdude

      Nobody at the top wants to tear anything down at all.

      • mtntrek3

        In order to bring about the NWO…. think again.

        • socalbeachdude

          What NWO? Most of that BS nonsense is being destroyed by elections all around the world which are moving countries towards and to NATIONALISM and acting in their own SELF-INTERESTS just like here in the US with the election of DJT.

          • mtntrek3

            We’ll see in time. DJT isn’t an answer to mankind’s ills. God through His Son Jesus is.

          • socalbeachdude

            Donald Trump will steer the US through its very difficult financial crises quite well and we will move towards prosperity which is probably realizable out towards 2032.

          • mtntrek3

            SBD, seriously……. I for one hope so. But my directions/instructions come from the Bible. …. I hope for better among us all. : ). Yet, I look around and see the times in which we live and the signs of such…. not good. Too much greed, corruption, etc. Man’s ways are failing. ….. Christ is the Way. : ) .

          • socalbeachdude

            Donald is fighting a very tough battle against the very corrupt shadow government in the US and has done an absolutely remarkable job in less than 2 months. Be happy!

          • mtntrek3

            Personally, I take all with a grain of salt. …… Time will tell. I agree with some of his stances as I’ve said, but we’ll see. ……..

          • socalbeachdude

            Yes, indeed, time will tell, but in less than 60 days – at no charge to the US taxpayers – Donald Trump is doing an absolutely WONDERFUL JOB and excellent insights as President of the Untied States of America!

          • mtntrek3

            My take, I may be wrong, but I think that Donald is a distraction. ….. Then again, he may be the spark to another civil war in our country. ……… He speaks grand things that will benefit us all. Anything that sounds too good to be true…… . Hey, I side with him on certain issues…… but he himself is a very worrisome figure.

          • socalbeachdude

            There will no civil – or uncivil – “war” in the US but folks will have to cut back on their excessive debt spending. There is nothing even the slightest bit “worrisome” about DJT. He has proven himself to be a most excellent and wonderful President in less than 2 months after his inauguration.

          • mtntrek3

            He has done some things that I agree with I have to say. Yet, he himself is a worry to me. We watch and wait. We hope for better. …… Seriously I have to go back to instruction/direction from God’s Word. ……… Consider God through Christ as your Savior please SBD. Take care. Chris.

          • socalbeachdude

            I don’t know what you are worried about. Nobody could do what DJT is doing now other than DJT himself.

          • mtntrek3

            He’s not my savior. Neither is any other President or politician. Jesus is. : ) .

          • socalbeachdude

            Donald Trump wasn’t elected as the “savior” of anything, but merely elected as the PRESIDENT OF THE UNITED STATES which is an incredibly difficult job to do these days and he is doing it at NO CHARGE whatsoever to the US taxpayers.

          • mtntrek3

            Oh damn. Just observing how some go on about him. …… . Lol. Smh. Seriously, you have a good day SBD and take care. Chris. ……

          • socalbeachdude

            Get used to America being great again!

          • mtntrek3

            We’ll see. : ).

          • mtntrek3

            My humble advice…… please don’t bury your head in anyone’s a–. I don’t … neither should you. We hope for better……. . Take care. Chris.

  • socalbeachdude

    A++++ to President of the United States of America, Donald Trump for his excellent job as President of the USA!!!

    • df NJ

      As far as I can tell, absolutely nothing has changed. Trump is no better than Obama at least so far.

      • mtntrek3

        Hey df NJ, long time no hear from you. How are you?

        • df NJ

          I upset one of the posters here pretty bad one day. So out of kindness and consideration I very rarely post anymore. I’m just having a boring day at work right now. I’ve been spending a lot more time on ATS. They have a lot more forums and the posters there do not think I am Satan.

          • mtntrek3

            We have to keep a sense of reality along with levity. Balance is essential… .

  • Black

    We’re all gonna die! Hopefully, right you friggin bible thumpin losers

    • df NJ

      40 years ago when I was 16 years old I saw a bumper sticker that read, “Jesus is coming, and boy is he pissed.” I’m still waiting.

      • mtntrek3

        Left, right politically speaking….. I find myself in between. Myself….. democrat the past several years. Perot once, Republican before that. Wrote in my vote this time. … I believe in God through Christ overall. …. And yes, Jesus will come again as a Judge. We need to be ready.

  • Rick

    Michael, isn’t this a good thing for President Trump? Wasn’t it you who just a few weeks ago write that the fall is inevitable, and that the best outcome for President Trump would be if it all happened early on in his Presidency? So isn’t this a good thing? Or did I miss something?

    • mtntrek3

      …… Overly zealous for Donald possibly. I hope the best for him personally, but……. ? . I’m a realist myself and put little hope in our ways. ……. My main hope is in Christ. 🙂 .

      • df NJ

        I talk to Jesus all the time. There’s a guy at work named Jesus.

        • mtntrek3

          A Hispanic? … He’s not the Son of God. There’s only One.

          • df NJ

            He’s Hispanic. But I get a kick out of saying, “I have to go talk to Jesus.”

          • mtntrek3

            Lol. ….. But God I take seriously. : ) .

        • mtntrek3

          Take care df NJ . SLFN.

      • Rick

        No doubt. Did you ever read the book “The Shack”? Now it’s at the theaters, and I was skeptical going in, but must say its the best movie made from a book I’ve ever watched. They capture it all. The only real place for your trust is right where you say.

        • mtntrek3

          Haven’t, but will check it out.

  • David

    “When interest rates rise, borrowing money becomes more expensive and economic activity slows down”
    True. when interest rates rise it is more expensive for the banks to borrow money. we consumers and regular folks have always had to pay expensive interest rates to borrow money from the banks.

    • socalbeachdude

      Banks do not borrow any money to lend to anyone and practically never use the Federal Funds Rates to borrow from each other which can only be done for very short term (typically overnight) LIQUIDITY purposes to clear transactions on a fully collaterized basis as banks are DROWNING IN VAST EXCESS LIQUIDITY and have more than $2.5 trillion in the EXCESS RESERVES accounts inside the Federal Reserve.

  • socalbeachdude
  • socalbeachdude

    How can you possibly be so delusional?

  • BruceB

    I would love too see this idiot when he has to refund the price of all these books he thinks he will sell, when what he predicts, does not happen. These fearmongers have got to be stopped.

Ready Made Resources 2015
Finca Bayano

Silver.com

Camping Survival
Don't Blame Trump
Lifesilver
Panama Relocation Tours
The 1 Must Own Gold Stock
180x350
Credible Warning
self feeding fire
finished gold2
ProphecyHour
Panama Survival Property
Facebook Twitter More...