Tag Archive for Fed

When the Scales Fall- Frederick Sheehan

The U.S. government is losing credibility. That is both an obvious and a useless observation without a sense of the consequences. Maybe, there are none. Maybe, the accumulating doubt concerning Benghazi, IRS intrusions, and NSA confiscation of privacy are wearing thin. If the latter proves correct, how will the people express their disillusion: “Voting with their feet,” so to speak? A glaring vulnerability is the gap between falling income and inflation. The government’s numbers are propaganda, and seem to have worked. The Fed, Bureau of Labor Statistics, reporters, and the academics who are paid to polish Goebbelism into a scholastic veneer, state that annual price inflation is short of 2%. John Williams, proprietor of Shadow Stats, estimates that if the Bureau of Labor Statistics used the same methodology for calculating the CPI as in 1980, the monthly figure released and disseminated to the public would be 9.4% (as of November, 2012).

Bill Gross: Why QE Will End Before the Fed Wants It To – Money Morning

Legendary bond guru Bill Gross doesn’t think too highly of the Federal Reserve and Ben Bernanke’s monetary policies.

“There comes a point when no matter how much blood is being pumped through the system as it is now, with zero-based policy rates and global quantitative easing programs, that the blood itself may become anemic, oxygen-starved, or even leukemic, with white blood cells destroying more productive red cell counterparts,” Gross writes in his June investment outlook titled Wounded Heart.