Fed: QE was “ineffective” in yielding “inflation and real economic activity”

The Federal Reserve pumped out trillions of dollars in Treasury security purchases, agency debt purchases, mortgage backed security (MBS) purchases… and they pumped out trillions of dollars through their “secret liquidity lifelines” to provide emergency loans to the global financial industry during the financial crisis…

And now the verdict is in – as acknowledged recently by the St. Louis Fed:

 After 6 Years Of QE, And A $4.5 Trillion Balance Sheet, St. Louis Fed Admits QE Was A Mistake          –  Submitted by Tyler Durden on 08/19/2015 – 07:12

“Evidence in support of Bernanke’s view of the channels through which QE works is at best mixed. There is no work, to my knowledge, that establishes a link from QE to the ultimate goals of the Fed inflation and real economic activity. Indeed, casual evidence suggests that QE has been ineffective in increasing inflation.”

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After 6 years and trillions of dollars in central-planning initiatives, America (and the world) is still chocking on debt and starved for liquidity.

Economic growth is anemic. Economic liberty and individual freedoms are being severely eroded. Big government central planning is marginalizing market disciplines and generating price distortions.

The Federal Reserve and the world’s other central banks were correct about the need for liquidity during the financial crisis.  But they were dead wrong about how to properly target liquidity flows.

It is now time to reset the targeting mechanism — and grant the same direct access to liquidity that was so generously provided to very the Wall Street banks during 2008-2010…. to bail them out of their greed-driven, binge-gambling, strategic blunders and risk management debacles.

It is time to level the playing field – and allow citizens direct access to liquidity and the freedom to allocate resources as in the manner which best suits their individual needs and desires.

The Leviticus 25 Plan 2015 –  $70,000 per U.S. citizen                                                  The Leviticus 25 Plan 2015 (1097)

 

 

 

 

Big government ‘largesse’ for Wall Street banks – and it is now time for equal access to ‘liquidity’ for American families.

Wall Street’s big bankers are doing fairly well these days.

Goldman Sachs CEO Lloyd Blankfein is now worth $1.1 billion, with his 2.2 million Goldman shares having gained 123% over the past 3 years (CNN Money 7-26-15).

JP Morgan Chase CEO Jamie Dimon’s total pay package hit the $20 million mark in 2014 (Reuters 1-22-15).  His net worth is a reported $1 billion.

In 2009, with the financial crisis winds blowing hard across the U.S., and major Wall Street getting billions of taxpayer dollars through TARP and billions more in ‘free money’ from the Fed’s emergency lending facilities and the Fed discount window, nine of these big banks also managed to lather up their bonus pay to the tune of $33 billion.

Those banks included Goldman Sachs, JP Morgan, Morgan Stanley, Merrill Lynch, Citigroup, Wells Fargo, Bank of America, Bank of New York Mellon Corp, and State Street. 

Here’s the story:

Bank Bonus Tab: $33 Billion – WSJ

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Meanwhile here is the status of millions of U.S. citizens – whose money, and future purchasing power, helped support the bonus pay initiatives for Wall Street bankers ‘in their moment of need’…

Maudlin Economics                                                                                                  August 18, 2015                                                                                                 Distressed American Workers Expose the Fallacy of Improving Unemployment Numbers

Job Growth but No Wage Growth. Job seekers may find it easier to find a job, but good luck trying to find a job that pays enough to support a family.

The lightly followed Department of Labor’s quarterly Employment Cost Index (ECI) is Janet Yellen’s favorite wage indicator for good reason: it most accurately reflects the true cost of labor to businesses.

Well… the ECI increased by 0.2% in the second quarter of 2015. That was not only way below what Wall Street was expecting, it was also the slowest pace of wage growth since 1982 when ECI record keeping started!

Those are bad numbers, but it is really worse if you dig below the headlines:

Devilish Detail #1: Government Worker Wages, Not Private Sector.

The overall ECI was up by 0.2%, but that is only because compensation for government workers increased by +0.6%.

What about the private sector? Change in compensation: 0%. Yup… ZILCH… NADA… ZERO… not a penny.

Devilish Detail #2: Benefits, Not Wages, Are Rising.

In the past 12 months, the ECI is up 2%. Sure, that kind of increase is nothing to shout about, but 2% is better than a sharp stick in the eye.

Hold on… not so fast!

Remember, there are two components of labor costs: (1) wages and (2) benefits like paid vacation, Social Security, workers’ compensation, and health insurance. Wages are roughly 70% of ECI, and benefits make up the remaining 30%.

Over the last 12 months, the cost of benefits has increased by +1.7%. My guess is that the lion’s share of that increase can’t be attributed to higher health insurance costs.

Moreover, the trend these days is for employers to pass on some or all of the higher costs of health insurance to employees, thus reducing take-home pay.

You know where else these measly wage gains are showing up? In homeownership.

Despite record-low interest rates, an increasing number of Americans are renting rather than buying. The Census Bureau reported that the US homeownership fell to 63.4%, the lowest level in 48 years.

The homeownership rate peaked in 2004 at 69.2%, but has been falling ever since.

Moreover, the rate of homeownership hasn’t been this low since 1967, when it was 63.3%.

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There is one economic acceleration plan that levels the playing field for U.S. citizens.  This plan does not ‘tax’ the big banks, like Elizabeth Warren proposes, to redistribute wealth to the lower classes.

This plan simply grants U.S. citizens the same access to liquidity that Wall Street banks received during ‘bailout mania.’

There is one economic acceleration plan that restores economic liberty, revives financial health for American families, reignites economic growth, shrinks the deficit, and pays for itself over 10-15 years.

The Leviticus 25 Plan 2015 –  $70,000 per U.S. citizen                                                  The Leviticus 25 Plan 2015 (1087)

 

Big government central planning spawns global debt load of $60 trillion – Answer: The Leviticus 25 Plan

Governments around the globe have buried their countries in debt.                                                                                                                                   The current $59.7 trillion total counts only the on-balance sheet government debt.

The global debt load will set monetary systems up for a crushing fiat currency reset, pounding the citizenry with an oppressive loss of purchasing power and critical reduction in real median household income.  And there will most certainly be another vicious round of real estate foreclosure actions.

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$60 Trillion Of World Debt In One Visualization 

ZeroHedge 08/06-2015

Today’s visualization breaks down $59.7 trillion of world debt by country, as well as highlighting each country’s debt-to-GDP ratio using colour. The data comes from the IMF and only covers external government debt.  

It excludes the debt of country’s citizens and businesses, as well as unfunded liabilities which are not yet technically incurred yet. All figures are based on USD.

Courtesy of: Visual Capitalist

The numbers that stand out the most, especially when comparing to the previous world economy graphic:

  • The United States constitutes 23.3% of the world economy but 29.1% of world debt. It’s debt-to-GDP ratio is 103.4% using IMF figures.
  • Japan makes up only 6.18% of total economic production, but has amounted 19.99% of global debt.
  • China, the world’s second largest economy (and largest by other measures), accounts for 13.9% of production. They only have 6.25% of world debt and a debt-to-GDP ratio of 39.4%.
  • 7 of the 15 countries with the most total debt are European. Together, excluding Russia, the European continent holds over 26% of total world debt.

Combining the debt of the United States, Japan, and Europe together accounts for 75% of total global debt.    Source: Visual Capitalist

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Governments extended trillions of dollars to bailout Wall Street during the last global financial crisis.

It is time now for governments to grant citizens the same direct access to liquidity-  to eliminate vast swaths of debt at the family level, before the next crisis blows up global economies…

The clock is ticking…

The Leviticus 25 Plan 2015 –  $70,000 per U.S. citizen                                                  The Leviticus 25 Plan 2015 (1080)

 

 

 

Atlanta Fed forecasts Q3 GDP growth at… (drum roll, please)… 1%.

The best lever-pullers, bean-counters and social engineer-types in the U.S. government – that includes Treasury, Labor, HHS, the Fed and others – have been working their ‘magic’ now, since 2007… and the economy is in ‘low crawl’ mode.

ZeroHedge 8/6/15: GDP Shocker: Atlanta Fed Sees Q3 Growth At A Laughable 1% Excerpts:                                                                                                                             The Atlanta Fed’s Q1 and Q2 GDP forecasts were virtually spot on with what the BEA ultimately reported. Which is why if its accuracy persists, not only the Fed, but Wall Street strategists suddenly have a very big headache on their hands. Moments ago, the Atlanta Fed just released its much anticipated first estimate for Q3 GDP. It was a doozy, at just 1.0%…”

The U.S. government has ‘directed’ trillions of dollars in liquidity flows, bailouts, credit guarantees, toxic asset purchases, stimulus programs…… and trillions of dollars in social welfare programs over the past 8 years…..

And family finances remain anemic:

RealtyTrac’s Foreclosure Trends Summary recently reported:                                    There are currently 807,533 properties in U.S. that are in some stage of foreclosure (default, auction or bank owned)…… In June, the number of properties that received a foreclosure filing in U.S. was 8% lower than the previous month and 9% higher than the same time last year.

And how have all of our big-government social programs (now approaching $1 trillion per year in Means-tested Welfare programs alone) been working out …?

http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2015/08/20150806_poverty_0.jpg

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All of the economic experts and political pundits ‘talk in circles’ about global economic problems.

There is only one legitimate solution Direct liquidity extensions to citizensjust like the massive liquidity infusions that the Fed and other Central Banks so deftly laser-beamed into the coffers of major Wall Street banks and insurers at the height of the financial crisis 2008-10.

The Leviticus 25 Plan 2015 –  $70,000 per U.S. citizen                                                  The Leviticus 25 Plan 2015 (1076)

 

 

 

 

 

Fraser Institute study: Economic freedom most important factor among nations…

New study: Economic freedom makes you happier than age, employment, income      By Jason Russell – Wall Street Examiner, Aug 5, 2015                                        Excerpts:                                                                                                          Government size, property rights and trade are among factors used to determine a country’s economic freedom.

Countries with more economic freedom have happier people, according to a study published Tuesday by the Fraser Institute.

Economic freedom determines how much control someone feels they have over their life, which can affect happiness levels.

The happiness benefit is seen even when other factors that might increase happiness and also are prevalent in economically-free countries are held equal. These include higher levels of health, income, trust and employment. Economic freedom actually makes people happier than their income, age, political system or job status, the study says.

“Clearly, living in an economically free society has an important impact on the average citizen,” said Fred McMahon, the Fraser Institute’s Research Chair in Economic Freedom. “Past research concluded that economic freedom spurs prosperity, income, employment and better public institutions.”

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And now there is a powerful, new economic acceleration plan that will revitalize economic freedom in America.

The Leviticus 25 Plan is a dynamic economic initiative providing direct liquidity benefits for American families, while at the same time scaling back the role of government in managing and controlling the affairs of citizens.  It is a comprehensive plan with long-term economic and social benefits for citizens and government.

The inspiration for this plan is based upon Biblical principles set forth in the Book of Leviticus, principles tendering direct economic liberties to the people.

The Leviticus 25 Plan 2015 –  $70,000 per U.S. citizen                                                  The Leviticus 25 Plan 2015 (1073)

 

U.S. economy 2009-2015 – abysmal. Open your eyes, America – to a real economic acceleration plan…

Big government central planning has been an abysmal failure in restoring economic vitality in America following the 2007-2010 financial crisis.

The U.S. government passed a $700 billion Troubled Asset Relief Program (TARP) in October 2008 to purchase assets and equity from financially stressed banks, insurance companies and automakers.  Total disbursements ended up being closer to $431 billion.

Our government also pumped out $831 billion in economic stimulus funds in 2009.

The Federal Reserve fire-hosed Wall Street’s financial sector with trillions of dollars in emergency funding, credit guarantees, and asset purchases.

And here we are in 2015….                                                                                               WSJ – July 30, 2015:  432,000 Americans dropped out of the workforce in June, with nearly 2 million now identified by government as “marginally attached to the labor force.” force.” The “labor force participation rate, 62.6% last month, is at its lowest level in 38 years.”  “Since the recession ended in June 2009, the economy has grown at an annual rate of 2.1%.”

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Big government central planning has eroded individual freedom and liberty in America, while generating 6 years of tepid labor force participation and anemic economic growth.

While it restored ‘health’ to the banking sector following their leveraged speculation gambling binge and strategic blunders, it has done almost nothing, on a net basis, to improve the financial health of average U.S. citizens over the past 6 years.

It is time for that to change.

It is time to revitalize economic liberty and get America moving again.

The Leviticus 25 Plan 2015 –  $70,000 per U.S. citizen                                                  The Leviticus 25 Plan 2015 (1069)