Debt Rattle May 21 2015

[Raúl Ilargi Meijer]

Harris&Ewing F Street N.W., Washington, DC 1918 • Has The Fed Got A Grasp On Economic Reality? (Gambles) • Global Inflation Mystery Risks Making Centr
[See the full post at: Debt Rattle May 21 2015]

[Raleigh]

“…group-think of Bernanke including Larry Summers, Ken Rogoff, Paul Krugman and the IMF’s Olivier Blanchard, who all studied the same courses taught by Stanley Fischer at the Massachusetts Institute of Technology.”

Stanley Fischer, a member of the Bilderberg Group and the Council on Foreign Relations:

Early 70’s – Associate Professor at the University of Chicago

1977 – 1988 – MIT Department of Economics

1988 – 1990 – Vice President, Development Economics and Chief Economist at the World Bank

1994 – 2001 – First Deputy Managing Director of the International Monetary Fund (IMF)

2001 – joined influential Washington-based financial advisory body, the Group of Thirty.

2002 – 2005 – Vice Chairman of Citigroup, President of Citigroup International, and Head of the Public Sector Client Group

2005 – 2013 – Governor of the Bank of Israel

2014 – Barack Obama nominated Fischer to be Vice-Chairman of the US Federal Reserve Board of Governors.

https://en.wikipedia.org/wiki/Stanley_Fischer

I’ve posted about the Group of Thirty before. Its members include Krugman, Rogoff, Summers, Geithner, Mark Carney, Mario Draghi, Mervyn King, etc.

https://en.wikipedia.org/wiki/Group_of_Thirty

And Larry Summers (whose family changed their name from Samuelson to Summers) is the nephew of economist Paul Samuelson:

“The New York Times considered him [Paul Samuelson] to be the “foremost academic economist of the 20th century”.[3]

He spent his career at MIT where he was instrumental in turning its Department of Economics into a world-renowned institution by attracting other noted economists to join the faculty, including Robert M. Solow, Franco Modigliani, Robert C. Merton, Joseph E. Stiglitz, and Paul Krugman, all of whom went on to win Nobel Prizes.”

https://en.wikipedia.org/wiki/Paul_Samuelson

It’s a tight little group, and we aren’t in it. There’s no free market. There’s “these guys”. They are central planners who manufacture bubbles, then gently steer them, of course all the while pretending they don’t see them (how can you not see what you have purposely set out to create? – of course they see them). When the bubbles falter, they prop them up.

One great big happy family of liars and pretenders who profit handsomely (along with their like-minded friends) and who could care less about the rabble.

“It is difficult to get a man to understand something, when his salary depends on his not understanding it.” Upton Sinclair

[Raleigh]

“Janet Yellen’s Federal Reserve is “reasonably confident” it can drive up consumer prices. Mario Draghi says his ECB’s stimulus has already “proven so far to be potent.” The Bank of England reckons inflation is “likely to return” to its target within two years.”

Was watching a good video someone recommended re the Great Depression. The speaker highlights how Hoover got together all business leaders and told them not to reduce wages (this went along until the businesses almost went under). They wanted prices maintained come hell or high water. They tried desperately to reflate. Of course, the speaker also talked about the Roaring Twenties, how the Federal Reserve purposely held DOWN interest rates (hello, we’ve heard that before!), which created the boom, which then caused the crash that lay in the house that Jack built.

On and on it goes. They are nothing more than money engineers who should be fired from their jobs tout suite for gross negligence. Can you just imagine if structural engineers worked in the same fashion? Why, we’d all have been crushed by now by one highrise building or another, sandwiched between our roofs and foundations. Cries would be heard on an hourly basis: “Look out below!” In no time we’d be avoiding any kind of structural building, taking our chances sleeping under the trees and the occasional bear attack.

Dr. Robert Higgs goes over the financial engineering by the government/Fed during the 1920’s, how they held down interest rates, and what happened after the bust.

It is a very interesting listen. Government/Fed are always the problem. They create the messy hair, and then proceed to backcomb it until there’s nothing left but to shave it to the bone. If they would just not cause bubbles in the first place, allow the market to set interest rates, none of these things would happen. They have been purposely engineering them. They need to let deflation take its course, undo the false wealth of the last 40 years, and then shut the heck up. If they hadn’t meddled in the deflation, everybody would have taken their licks by now and we’d have been on our way out of this mess in a couple of years.

You could start watching at about 8:10 (although the first part is good too). If you have less time, start watching around 11:30. At 39:00 he speaks of businessmen in various industries conspiring to raise prices (by deliberately cutting supply) and to suppress competition amongst themselves, as well as raising wages in 1933. The businessmen had actually been conspiring for 15 years to have this done, but the Depression allowed them to enact their wishes.

All government/Fed does is create chaos.

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