US Federal Reserve

The US Federal Reserve — the central bank of the US — sets the most important price in the world, the price of credit.

Discover how a privately owned cartel has hijacked America’s financial system for the benefit of the US government and its banking buddies. Well, that’s one way of looking at it. Not everyone sees it like that.

But after reading how ‘the Fed’ floods the world with cheap money, fuelling bubbles all over the world and destabilising the world economy in the articles below, we’d like to hear what you think…

Read more

interest rates Australia
Why a Rise in Interest Rates Won’t Mean Much
It’s definitely possible that the US and even Australia could lift interest rates in the future. This would cause bond prices to drop and the supply of money to contract. But even if rates were to rise 1%, rates across the developed world would still be extremely low.
cryptocurrency global concept
Welcome to the New World Order
The problem they’ve got is this. The rich can’t buy in to such a ‘small’ market without showing what they are doing this (which would push up prices out of their control). So instead they are trying to make ordinary people write it off, panic sell or fear cryptocurrencies. Or at least not compete with them to buy in. Its economics 101.
US economy not as good as it looks
This Is Going to Get Real Ugly
When you throw trillions of freshly-minted dollars at an economy, you’d expect a bounce in the tax take. That’s exactly what happened after 2009. But the chart shows us that something is different this time.
tax cuts
Tax Cuts for the Rich…Hallelujah!
This new tax scheme doesn’t reduce US government spending by one penny. Ultimately, the money they spend has to come from the productive economy; there’s nowhere else to get it. But why should giving the rich more money stimulate output? Are they having trouble making ends meet? Do they lack capital?
goldilocks economy bear market
Goldilocks Economy Meets the Bear…Again
The actions taken by the Fed after the dotcom bust and the GFC would’ve, in 1999, been deemed to be sheer recklessness…bordering on lunacy. That’s how much the world has changed in the space of two decades. Goldilocks is going to be mauled by another bear…and it’ll be far more ferocious than the one that awoke from hibernation in 2000.
money
Just Follow the Money
In following the money, we find the wealth created in recent years has been nothing more than an illusion. This illusion can only be maintained if ever more money is printed…making the world’s newest and largest economy for the privileged few even bigger.
US fed stabbing investor in back
Will the Fed Stab Investors in the Back?
Warsh — who resigned as Fed governor in 2011 — says he’d like to get the Fed in position to fight the next downturn…by raising rates now. Instead of having investors’ backs…ready to buy assets when markets turn down…under Warsh, the Fed may become investors’ worst enemy.
debt crisis
The Global Debt Bells Are Tolling
The base of the debt pyramid now needs to expand at a multiple of $5 to achieve $1 of growth. If the global debt pyramid — somehow miraculously — is still standing in a decade’s time, it’ll take more than $8 of debt to register a positive reading on the GDP needle. This is madness.
price target
Dow 50,000? Why Not?!
Yes, reflation is coming. And yes, this is an economy that can’t tolerate higher inflation/interest rates. Then with no debt ceiling over Congress…and no hold-the-line president in the White House — the sky’s the limit. Dow 50,000! Why not?!
us economy interest rates
Will the Fed’s Stubbornness Cause a Collapse?
In 2017, the US Federal Reserve has lifted interest rates twice. Stronger employment is their argument to end their decade long bond buying rampage. However, while employment in the US continues to strengthen, inflation remains stubbornly low.
us federal reserve interest rates
Can the US Fed get out of this one?
The US Federal Reserve has left the interest rates unchanged at 1% to 1.25%. No surprise there. The thing is, there is something not quite right in the US economy, so the Fed is hesitant to make any sudden moves.