Quote:
Originally Posted by manaboutown
|
Quote:
Originally Posted by dewilson58
NOW THAT WAS WORTH SHARING!!!!
Thanks
|
It only briefly mentioned the Fed and QE. The Fed and QE are the ONLY reason the numbers are showing "improvement" to the economy.
The Fed has taken on almost $4 TRILLION in debt and given the banks almost $4 TRILLION to offload all the nonperforming crap they're holding. Plus the Fed has brought the discount rate to almost 0% (0.25%). The banks get almost free money. The banks use their "free" money to buy treasuries and other assets including stocks...the interest is more "free" money for them. The "improvements" to the economy are all due to an infusion of $4 TRILLION over the last several years. There's been no REAL growth in the economy, it's all newly "printed" money.
It's like a broke family writing checks with no funds available. Borrowing for everything they spend. It LOOKS like they're doing fine, but they're just going deeper and deeper into debt. The stores SEEM to be doing fine too because the family keeps spending.
How much does the government pump into the economy through other means? SS checks, welfare checks, food stamps, section 8 housing, medicare, medicaid, the military, it's full of money going out into the economy as "printed" money. Over $17 trillion is the federal debt...all that money made it into the "economy", it's why it's been rising. Our economy is based on debt, not REAL assets. The more debt, the better it's doing.
Oh sure, the Fed is "tapering"...but it's still $70 BILLION each and every month getting pumped into the economy to hold it up...give it the illusion it's growing. Sure it looks like it's growing...with "free money" to the tune of $70 billion a month.
You need to know WHY something is happening not just that it is... The stock market is tulip mania because of free money from the Fed. Yellen will print too... Enjoy the ride...until it stops.