It is clear that Janet Yellen is holding her tongue on raising interest rates, and the Federal Reserve is effectively propping up the stock market in the meantime.
The maneuver will only delay the inevitable, but perhaps that is exactly what the powers that be want.
If Donald Trump is right, the Fed is only holding off on rates in order to spare President Obama the stain of another financial crisis during his time in the Oval Office, stalling only to dump a recession-slash-depression on the next president.
Trump has made this idea a center of his recent talking points. According to HNGN:
Republican presidential contender Donald Trump has once again accused the Federal Reserve of keeping interest rates low at the behest of President Barack Obama, who Trump says wants to avoid an economic depression during his administration.
Yellen is “keeping the economy going, barely,” Trump told The Hill. “The reason they’re keeping the interest rate down is Obama doesn’t want to have a recession-slash-depression during his administration.”
“They are not raising them because Obama has asked them not to raise them,” Trump told Reuters. “He wants to get out of office, because we’re in a bubble, and when those rates are raised, a lot of bad things are going to happen.”
He added: “Janet Yellen is highly political and she’s not raising rates for a very specific reason: because Obama told her not to because he wants to be out playing golf in a year from now and he wants to be doing other things and he doesn’t want to see a big bubble burst during his administration.”
The comments have – in true Trump style – stirred controversy, with even Janet Yellen responding (indirectly) to the politics of controversy:
US Federal Reserve chief Janet Yellen has one very good reason for raising US interest rates next month: politics.
Although central bankers are supposed to be above base political considerations, few would blame Yellen for wanting to shield herself and the US central bank from attack as the 2016 US presidential race picks up pace.
[…]
To avoid such allegations, Yellen appears to be carefully grooming investors to expect an interest rate rise when the Federal Open Markets Committee meets on December 15-16. At a congressional hearing overnight, she noted that a December rate rise was a “live possibility”.
Is Trump now loud enough to steer the actions of the Fed, which has otherwise proved immovable?
Despite overwhelming evidence that the Federal Reserve has bolstered the biggest banks on Wall Street with its policies, the privately-held central bank has long denied that its moves are political in any way. The president nominates its head, but the agency, set up in 1913, has no checks and balances on its actions, though it does have its share of public controversy.
In pointing out the “independence” of the Fed from any government oversight whatsoever, former Federal Reserve Chairman Alan Greenspan went so far as to say that its relationship with the president doesn’t matter. It is, quite simply, not a democratic or constitutional institution at all – and that is admitted:
“The Federal Reserve is an independent agency. And that means, basically, that there is no other agency of government which can overrule actions that we take. So long as that is in place… what the relationships are [between a Fed chairman and a president] don’t frankly matter.”
It is little wonder the controversial bank would be on the defensive. Questions raised by Ron Paul and others have put the oligarchical instrument of power into a bind with public scrutiny.
Trump underscored the economic damage that has taken place across the ravaged middle class and the effect that low interest rates have had on small businesses, savers, pensioners and investors:
“You know who gets hurt the most? People who practice the American dream and did what should have been the right way – the people that went through 40 years of their life and saved a hundred dollars every week [in the bank],” Trump said.
“They worked all their lives to save and now what happens is they’re being forced into an inflated stock market and at some point they’ll get wiped out,” he added. (source)
Obviously, the Fed knows that the monetary policy it controls is hurting ordinary Americans and whatever is left of so-called Main Street. Perhaps that much is a given.
Maybe Trump will continue to focus on the Federal Reserve in his highly theatrical upstart campaign. Will he ask about where the gold in Fort Knox went too? Trump always has money on the mind, and that could prove very interesting.
What happens next may be difficult to call, but it will make for good political theater, as far as economic bloodsport goes. Financially, everything is on the line. Most people have skin in the game already.
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Not like we all didnt already know this
yeah like, obvious much?
Trump. Ha! He’s a butthole!
…and when I and the rest of clear thinking Americans vote him in, I’m going to write him a letter and address him as Mr. President Butthole!
It takes an uncouth, politically incorrect, brazen, brass balled butthole like him to get it done. If he does like he talks, I’m with him all the way to the end.
Trump Accuses Fed of Not Raising Rates Because Obama “Doesn’t Want a Bubble Burst” Until He Leaves
Trump is absolutely correct, and yes the bubble will burst.
Even if the rate is raised a little bit, it will start the unraveling process that the Federal Reserve has created.
Thus creating a panic mode – good for them – bad for you and I.
Never liked Trump on that TV show but like him more and more every time I hear what he has to say.
Bank Of Ireland Bans “Small” Cash Withdrawals At Branches
“Under new rules, designed to streamline in-branch services, Bank of Ireland said withdrawals of less than €700 will no longer be facilitated with the assistance of tellers.
From mid-November, customers will have to use ATMs or mobile devices for small and modest-sized withdrawals.”
“After all, if people can’t withdraw paper money and stash it under the mattress, then interest rates can be as negative as the government wants them to be in order to “encourage” consumption.
If, for instance, you’re being charged 10% for saving your money, then by God you will probably spend that money rather than see the bank collect a double-digit fee just for holding on to your paycheck.”
http://www.zerohedge.com/news/2015-11-05/bank-ireland-bans-small-cash-withdrawals-branches
To save Hillary’s election also ……..
They are desperate to keep Trump out.
ObamaTrade Details Unveiled, Officials Warn “It’s Worse Than We Thought”
“The Trans-Pacific Partnership means that America will write the rules for 21st century trade,” according to President Obama, but as Reuters reports, U.S. unions, lawmakers and interest groups questioned the long-awaited text of a landmark U.S.-backed Pacific trade deal on Thursday.
“It’s worse than we thought,” Lori Wallach, director of Public Citizen’s Global Trade Watch, told members and U.S. labor representatives said the agreement contained weak, poorly worded or unenforceable provisions, concluding “we do not believe those improvements are significant or meaningful for workers.”
It appears, that ObamaTrade may be a boon for factory and export economies like Malaysia and Vietnam, but – as expected – will achieve little for the average joe in America.”
http://www.zerohedge.com/news/2015-11-05/obamatrade-details-unveiled-officials-warn-its-worse-we-thought
It unionizes every worker in the world. We will be subjected to International Corporate law and our laws will become obsolete as will our Constitution. Our police forces will become members of the International World Police. This is really, really bad for us.
Only so many people will go homeless or hungry before they risse up and take the law back and into there own hands.
With nothing to losse and everything to gain, well it turns cowards into super men so we must start a war with russia or else we will have to cover the pensions we have been keeping for you all, your a liability to us.
Now if russia/china don’t bite or the people just won’t allow us to do that then a good old race war will sort things out for us and don’t ask for option three, you would not like it.
James,
I agree. This is bad.
I am sure it was always part of the plan.
The Fed board members are appointed by the US President and approved by the Senate. That is the only control the US government has over the Fed. Otherwise it is a private, unaudited bank that has the unique ability to print money.
The only control Obama has over the present Fed is that Yellin was appointed during his period of office. Appointees are just as likely to be biased towards the appointing president as say Supreme Court appointees. After that though, there is no control.
Seriously, Donald Trumpis just a ‘word salad’ mouthpiece who has supplanted Sarah Palin and Michelle Bachmann for those that don’t think about what they hear.
She only has to wait long enough until it looks like the next president will be a Republican then she will be ordered by obama to raise rates and he will blame the market turmoil on the economy reacting to the likelihood of the GOP taking control of the white house.
Love him or hate him, Trump doesnt mince any words and tells it like it is. Him, Carson, and Fiorino are doing so well because they are not part of any political machine and have no ties to masters.
Dump Trump! Why would anyone want a Crony Capitalist as President when Crony Capitalism =the problem?
I like/respect Mark Levin and listen to his radio show often. To me he has more on the ball than old man Rush, dumb ass Hannity, or wacko Beck.
Levin likes Ted Cruz for President and once referred to Cruz as “The best lawyer in America”.
To me Ted Cruz reminds me of a Cuban Barry Goldwater.
I worked for Goldwater as a teenager. Even still have my “Goldwater in 64” button.
Watch out fur dem hogs! (buy another gun today)
You kids,
I still have my “I Like Ike” lapel pin and button.
And I still do like Ike.
Lawyers–Damn near as bad as politicians–and a politician lawyer–your right Them Hogs–buy more guns–possums like lawyer meat, lol
I like Levin’s politics, especially the convention of the states that’ll probably never happen. However, I find that Levin himself irritates me. For one thing, he pronounces his name “Le Vin”, instead of Levin (as in rhymes with seven). That tells me he’s not proud of his Jewish heritage. If you’re a jew, then be a proud jew, is what I’m saying. Secondly, he sounds just like Steve Buscemi.
OK troll, I’ll bite.
I’d rather have a billionaire PRESIDENT, than an old hag extortionist and kniver as the leader of our armed forces. At least, the billionair calculates, monetarily, outcomes of actions. So, why not elect someone (as like Ross P) to an office which requires economic prowess and “balls”? Not that Hillery doesn’t have balls.
Please excuse me for having an opinion that does not jibe with yours. How very Patriotic of you to draw attention to this, now bite me dickhead!
I don’t like Trump, You do and are a douche, get over it.
But which do you like less, Trump or Hillary?
I know of lots of Trump haters that are Hillary supporters, and lots of establishment Republican insiders, illegal immigrants, Democrats, Muslims, perverts, Greenies, and so on that are the same camp as yourself of being against Trump.
I would vote for my lawnmower before I would vote for that useless life support system for a set of nasty, saggy boobies even Bill don’t want—at least the 2 of them are consistent in their beliefs, and it MUST run in the family–BILL was busy getting blowjobs from interns and let a whole bunch of rangers and delta get killed in Somalia (operation enduring freedom) because he, much like this ignorant wench did in Benghazi, would not authorize any support for OUR people. OUR people– The stand down duo of the century–TREASONOUS in my opinion–should be hanged by the neck–Even the thought of her in office turns my gut.
Hogs denigrated Ron Paul. That’s when I realized that he isn’t playing with a full deck. You’d think a Goldwater fan would know better, but oh well.
Trump, Carson, Cruz, (god–not another) Bush, lawnmower, coffee maker, DOORKNOB–who gives a shit as long as the demawhores are derailed. Socialist Fuks–It will slow the decent a little while longer for us to get things in order for what you and I know is the endgame of this chaos–You know as well as I, Them Hogs–regardless of who gets in–it’s gonna be a target rich environment soon–were too far gone as a nation–a little more time to prep is always a good thing and for that reason–I would vote for my spare tire before a demawhore. Don’t get me wrong–republipimps are not any better–Demawhores want your money to give to the useless shits that contribute absolutely NOTHING and drag our society down–Republipimps want your money for—THEMSELVES–WE ARE in the death thralls of the world as we know it. You have a good day now–and pick up a little extra beans–and a lot extra bullets–bad time are a comin.
You can take to the bank Obama will not make a move on two things: one is to do anything firm and necessary to deal with the menace of radical Islam: he will just let it grow and grow and get out of hand; the second is the economy: he will do nothing to drain the debt swamp and instead will inflate and borrow to the max until he leaves office. We are now at the event horizon where he can only go for it and push his agenda to the max. Leave the mess to the next guy just as Bush did to him.
The Fed is an independent agency? We all know better than that. The Fed carries out the economic policies of the president, notwithstanding the power of the purse of the Congress. This has long been a thorn in the side of the American people. Audit the Fed and then shut it down.
I agree things were septic with bush, but the sh*t sure has piled up since our new commander and chief took office????
islam coming to a neighborhood near you soon. I bought another 1000 rounds last week and then remembered about the boating accident we had. Go figure…
Those dang boating accidents really can come out of nowhere
TAXPAYER BILL TO RESETTLE 35,000 MIDEAST REFUGEES: $2.3 BILLION
“It costs U.S. taxpayers nearly $65,000 to resettle one Middle Eastern refugee over the first five years, which is 12 times what it would cost to care for that same refugee in a neighboring country in the region, according to a new study.
The Center for Immigration Studies cites “heavy welfare use” as the main reason why refugees are so costly to resettle. This flies in the face of oft-quoted comments by U.S. mayors who claim refugees add to their tax base and promote economic growth, making for a more “culturally diverse” and “economically resilient” city.
The CIS study indicates they are more of a drain on the economy than a boost.
The $64,370 cost to U.S. taxpayers over five years is a “conservative estimate” presented in a new study released by CIS’ chief researcher and statistician.”
http://www.wnd.com/2015/11/taxpayer-bill-to-resettle-35000-mideast-refugees-2-3-billion/
What I want to know is how to hire some of them? Around here about 80% of the home construction contractors are Mexican. If one can get other immigrants and a $65k subsidy, then one has to be able to compete!
This is what the crystal ball will look like after the elections of 2016. Lame Duck Exec.in Chief will pardon dozens upon dozens of banksters,pedophiles and War criminals,then the Obama blame game will commence, (much like the Bush blame game has played out for seven years…for the second time!) “The Donald” will be held up above reproach, as the newly elected puppet in the white house, by brain dead voters who cannot find fault in a politician they like. Then the Wheeler dealer in Trump will surface and all kinds of Constitutional Loop hole dancing will commence.Or… the alternative is… the wicked witch of the West appears to be at the foot of the “white” house.
If they put rates up and they are past on to house buyers then the banks will move into the property market to soak up the cheap bargins as people fall behind on payments.
Make no mistake that if the bankers did not like Trump then he will not win, it’s window dressing to fool people into thinking they have a choise, they don’t and the bankers will continue to keep you all as debt slaves for as long as ye shall live unless we have a revoloution and kick some arse.
Trump is the great F-U to a lying congress and a rino senate. We voted for them and got them both elected because the were going to repeal obumbo care. FAIL! So now they get Trump who is leading the polls by about 35% more than the media will let on to. I could care less if you like him or not, he will win by a landslide. So bitch and moan all you like but he’s going to win because if he doesn’t the U.S. economy is over and as dumb and miss led as the public is…The vast majority in this country know it’s basically over if the economy isn’t fixed now.
I want to see a US candidate that would forgo being paid, that is not controlled by bankers
And would run for and SERVE for the good of our country.Then we just might have something!
Yeah, Demoncraps always leave the mess behind for others to clean up. Remember when the Clinton’s left the White House in a mess?
From 9/11 (on Clinton’s watch) and soon to come on this sodomite’s one.