Why the Fed rate talk was 'a bunch of nonsense'

 End Times, Finance, GLOBAL ECONOMY, National security, New World Order, QE, US Economy  Comments Off on Why the Fed rate talk was ‘a bunch of nonsense’
Mar 312016
 

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CNBC: The Federal Reserve was never hiking rates four times this year. Investors didn’t believe it, and now Fed Chair Janet Yellen has all but explicitly acknowledged it.

Indeed, Yellen‘s blockbuster speech Tuesday assuring that the central bank would go slowly on future adjustments to monetary policy only caught some of the market by surprise. Others realized there was virtually no chance of a hawkish Fed in 2016.

Central bankers at the Fed bark but they won’t bite,” Peter Schiff.

Opinion: The economy is built on counterfeit money. Let that sink in for a moment…

The Federal Reserve borrowed/printed $4 trillion dollars that was used to buy mortgage bonds from major banks. The banks, flush with cash, bought stocks and bonds and wham-o, Batman, the third biggest bull market in history and the first bull market built on bull p..p was born.

The only way the Fed will raise interest rates is if/when foreign banks stop buying US Treasury bonds because the rate of return is not worth the risk. That happened before under Jimmy Carter when interest rates were as high as 22%.

Then, there is the matter of the $200-250 billion that the US pays to finance the $19 trillion in national debt. A rise in interest rates would further bankrupt the nation.

 

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Feb 132016
 

national debt

CNBC: “Central banks have been pumping money into the global economy without a whole lot to show for it other than sharply higher stock prices, and even that has been on the downturn for the past year.

Growth remains anemic, and worries are escalating that the U.S. and the rest of the world are on the brink of a recession, despite bargain-basement interest rates and trillions in liquidity.

It’s all part of a phenomenon that Michael Hartnett, chief investment strategist at Bank of America Merrill Lynch, terms “quantitative failure”.

Opinion: We have hundreds of posts on Quantitative Easing (QE). It began in 2009 as a cure-all for an economy that  refused to grow. Since there is a Democrat in office, you won’t hear how QE hurts the poor and middle class and makes the rich uber wealthy.

Simplified QE Formula: Create money – give it to banks – banks buy stocks and bonds, and whamo, Batman, the bull market is on.

mountainThe problem is that the newly created money is like counterfeit, it is literally borrowed from ourselves and has to be paid back. Globally, QE debt is over 12 trillion, which, of course, does not factor in the national debts of each nation, making the world awash in debt.

Solomon knew better: “The rich rule over the poor, and the borrower is slave to the lender.” Proverbs 22:7

So, here we are 7 years from the recession that never really ended, and we are on the verge of another one. If we look back to Genesis 41:25-27, Joseph warned Pharaoh that at the end of 7 years of plenty there is 7 years of famine.

This time the central bankers have a new idea: negative interest rates (NIRP): literally paying a bank money for the privilege of making a deposit.

After that fails, will come the end of cash, which will only work temporarily because the DEBT problem is still there and there will be non-stop economic reports to sell the world on the benefits of a cashless society.

That is the reason we created BPTnews.org, since our staff consists of me and Editor (with help from Vason), it is not possible for us to do commentary on all the news, it reminds me of the I Love Lucy show with the chocolates.

In the next week or two, we will combine the sites and either URL will take you there. We received several emails regarding keeping the commentary on the blog posts, the only change will be a prompt to “read more” (expand) when the commentary exceeds a certain number of words.

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Jan 222016
 

Bloomberg: “Stocks rose around the world, extending Thursday’s rebound from a 2 1/2-year low, on speculation that central banks will expand stimulus measures to counter turmoil in financial markets. Oil surged with emerging-market currencies, while haven assets retreated.

European shares headed for the biggest two-day gain since 2011, the euro approached a two-week low and Spanish and Italian bonds rallied after European Central Bank President Mario Draghi indicated he may bolster economic support as soon as March. Crude was poised for its steepest two-day rally in five months and the Russian ruble rebounded from a record low. Asian stocks climbed the most since September on speculation Japan and China may also take steps to calm markets.”

Opinion: Mario Draghi (Italian for dragon) is the Janet Yellen of Europe. The head banker.

With one sentence “We are adapting our instruments to the changing conditions,” Draghi sent the global markets on a rally. So what does it mean?

Stimulus, also known as Quantitative Easing (QE), means that Chairman Draghi is willing to keep manufacturing money to deposit into banks. The happy bankers then take that money and buy stocks and bonds and wham-o Batman, everybody is as happy as can be.

Yes, Virginia, QE makes the mountain of debt grow so large that it will one day become impossible to pay back, but since virtually no one cares, and the market is up, it’s time to party for now.

It is little wonder that when the Black Horse Rider (Revelation 6:5-6) comes on the scene, the party will come to a screeching halt.

Hyper-inflation is a sudden phenomenon.

See Headline: “Desperate: Hillary Prepares to Embrace Slavery Reparations”  BPTnews.org

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After 6 Years Of QE, And A $4.5 Trillion Balance Sheet, St. Louis Fed Admits QE Was A Mistake

 Bible prophecy, Finance, National security, New World Order, QE, US Economy  Comments Off on After 6 Years Of QE, And A $4.5 Trillion Balance Sheet, St. Louis Fed Admits QE Was A Mistake
Aug 202015
 
After 6 Years Of QE, And A $4.5 Trillion Balance Sheet, St. Louis Fed Admits QE Was A Mistake

Zero Hedge: “As you’re no doubt aware, the Fed is fond of using the research departments at its various branches to validate policy and analyze away bad economic outcomes. For instance, earlier this year, the San Francisco Fed came up with an academic justification for the now infamous double seasonally adjusted GDP print – they

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Aug 132015
 
The Fed Is Out Of Options, "QE Is All It Can Do Here" Art Cashin Predicts

Zero Hedge: “Weakness in commodities “is not transitory,” Art Cashin tells CNBC, if you look at things like copper, “this is really a deflationary push… where things can get a little out of control.” The Fed says they must get off zero interest rates because,, as Cashin notes, “they can’t do anything else.” However, as

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Bloomberg: The Epic China Meltdown

 Bible prophecy, End Times, EU, Finance, QE, US Economy  Comments Off on Bloomberg: The Epic China Meltdown
Jul 112015
 
Bloomberg: The Epic China Meltdown

  Bloomberg News: “The Shanghai Stock Exchange Composite Index has lost 28 percent since its peak on June 12, the worst selloff in two decades. About $3.9 trillion in market valuation has evaporated, more than the total annual output of Germany—the world’s fourth-largest economy—and 16 times Greece’s gross domestic product. The benchmark is still up 82 percent in the past year,

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Mario Draghi Doubles Down On Eurozone Failure

 Bible prophecy, End Times, EU, Finance, National security, QE, US Economy  Comments Off on Mario Draghi Doubles Down On Eurozone Failure
Jan 232015
 
Mario Draghi Doubles Down On Eurozone Failure

Investors Business Daily Op-Ed: “Economics: Despite the opposition of the European Union’s most powerful nation, Germany, the European Central Bank has launched a massive quantitative easing program. It’s not what the stagnant EU needs. Yes, markets rallied on the news, largely cheering the fact that someone, anyone, seems to be doing something about the eurozone’s

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