This article was written by Tyler Durden and originally published at Zero Hedge.
Editor’s Comment: Prolonged negative interests rates mean that only the bankers, and a few selected partners, are on top of the financial game. That’s exactly what’s been happening for years and years now, and why the banks rule.
The Federal Reserve has been absolutely devastating to the average American’s pocketbook as well as personal freedom. In this case, Yellen has us all stuck in a condundrum… classic tails you lose, heads they win.
Yellen Says Negative Rates On The Table “If Outlook Worsened”
by Tyler Durden
As the market now diligently calculates the suddenly surging odds of a December rate hike, here’s Yellen with a preview of what will happen once the rate hike cycle is aborted…
… just as it was aborted in Japan in August of 2000 when the BOJ also decided to send a signal how much stronger the economy is by hiking 25 bps, only to cut 7 months later and to proceed to monetize not only all net Japanese debt issuance a decade later, but to hold half of all equity ETFs.
The good news:
Because when have the Fed’s forecasts before ever been wrong.
It Took 22 Years to Get to This Point
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Raise rates. Lower rates. Keep rates the same. Negative interest rates. I really don’t care anymore. Just say it; you don’t know what you’re doing.
When money becomes so cheap that the government is paying banks to take it, then you know we are in incredibly deep shit.
If anybody is interested, New Zealand just posted the text of the formerly secret TPP online.
ht tp://tpp.mfat.govt.nz/text
I agree, it’s nothing but a big game for the rich to get richer.
Nobody ever knows what they’re doing. Disappointing, isn’t it?
Wait till they put an expiration date on cash so you have to either spend it by then or it becomes worthless and diminishes in value by the day till it fully expires.
Yes, this has been proposed, just not quite a mainstream idea yet (I stress “yet”).
Ha ha it’s like Budweiser’s “born on date”.
Might as well go full on communist slave labor then and cut the bullshit, if that’s your game.
Basically that policy says “saving is off the table, work or die”.
Yeah, that’s pretty much it (as intended but it won’t be promoted that way).
The one thing people forget is that people will always find ways around most situations and if this idea came about, no doubt you would see black markets spring up with non government intervening trade. It happens all the time when government puts the boot on its citizens.
They are all traitors and deserve the punishment befitting of such crime!
All the Fed is is an association of banks. It’s no surprise that the association would try to help its members. Not sure why this is a headline?
All the Fed is is an association of Privately Owned banks that control the US Currency. It’s no surprise that the association would try to help its members at the expense of US Citizens.
YELLEN SAYS SHE DOESN’T SEE NEED FOR NEGATIVE RATES NOW
Please raise the Rate ‘ya bull dyke and send the Stock Market into a tailspin.
YELLEN SAYS FED SEES ECONOMY ON STEADY PATH OF IMPROVEMENT
Lying to yourself and others is not reality.
Manipulating the unemployment rate [5.1%] is not reality.
About 2 years ago – roughly 94 Million working age people were out of work.
Now it is roughly 100 Million working age people are not in the workforce.
Couple years ago, I believe the true nature of unemployment was closer to 22-24% nationwide.
Now, I would gather it is gaining or getting closer to 40%.
300+ Million people in America, not including undocumented illegals. 100 Million [+/- 5%] working age adults are not in the workforce. Yet, they want people to believe that things are improving and the economy is on the upside? …
Technically we have more people being supported on Government subsidies than a contributing FULL-Time Workforce. Something has to give in and fail for the ponzi scheme to be fully exposed for what it truly is.
Economically, our country has become Takers, instead of Producers. A system like this can not sustain itself forever!
We already have negative rates. If you factor in the real rate of inflation, the current rates are already negative. So, they have already tested it. Then add the fact full-on negative rates are right now being beta tested across Europe, and it will be a matter of time before they go for it.
But for it to work they will have to get everyone on cashless systems. That way they can jerk the rates and currency valuations whichever way they wish and put blocks on withdrawals so there are not bank runs. They can also do forced tax grabs whenever the tally at the end of the day is short a few billion.
In a not too far a distances in time, you will see the following message on your e-account:
“Thank you for your custom today! Remember, you may not withdraw more than $200 a day and you must make a formal request to transfer amounts between $500 and $2,000. It is illegal under Federal Law to withdraw or transfer amounts above $2,000. As you are a shareholder of this institution, we reserve the right to instill a one-time Account Balancing Toll if our Daily Balance does not meet Federal Asset Reserve requirements. You will be notified of the amount on your monthly e-statement.
Thank you for using Bank of America!
Hey, its Hanukkah! Have you got your Bubby one of our Golden Menorahs? Just take out one of our We Pay Your Mortgages at negative 2 per cent and you will light up her – and your life – this Holiday Season!!”
After reading this article all I can say is, “She has to Be Crazy”.
I mean I went out to the shed to do some metal cutting and grinding for my “Vehicle Prevention Program”. Thinking there would be a great article to read coming up.
Well, not so good. Good for the Newbies to catch up.
She is just a very evil demon. She knows exactly what she is doing.
I think this is a great idea, keep the system running as long as possible. ZIRP NIRP as long as they can keep this bubble going. Gives me more time to position my family to get thru this. Its open enrolment at work so I have been comparing plans again. I even looked on the .gov site. On the .gov site I found a plan for $400 per month with a $12000 deductible that pays %50 after the deductible. Say your making 25000 per year, you pay $4800 toward the insurance and pray that you never get sick, otherwise you have to claim bankruptcy. Affordable Health!!!
Just imagine how much you will pay when its free!
“Say your making 25000 per year, you pay $4800 toward the insurance and pray that you never get sick, otherwise you have to claim bankruptcy. Affordable Health!!!”
Good luck trying to file Bankruptcy on Medical Bills.
In my State, you can not include Medical Bills into a Bankruptcy File. Unfortunately, people are left responsible for this debt if they find themselves in a hardship.
The economy is jelling with Yellen. Like jello, it jiggles but stays upright. The people are yelling at Yellen and the Fed to take a long walk off a short pier. Brother can you spare a dime? Bankitis gone berzerk. Freaking fiendish finaglers.
Supply and demand. Infinite supply (costs nothing to create their debtmoney) and huge demand for nearly free money. I guess it will wash out any value and everything will be priced in monopoly money.
Sal
The Fed will not raise rates until it looks like a Republican will win the white house, then the fed will raise rates and when the economy begins to suffer/collapse the administration will then blame the market turmoil on the fact that the markets are “fearing” a Republican victory in 2016, otherwise the fed will keep playing this game of hinting at raising interest rates.
This makes as much sense as, as the government is saying, the price of goods & services have not changed, so there’s no need to give Social Security recipients a COLA(Cost of Living Allowance) for 2016.
Or at least that’s what they are telling us.
The bag of tricks to pull is getting empty. Soon the end comes, very soon.
what are you trying to do, usurp mike snyders favorite line? He’s got a copyright on the ” end is coming soon, very soon”. It’s what he makes his living off of, he knows that once he ever puts a date on it he’s out of business, and he is also a lawyer so watch out for a trade violation suit being filed against you.
Just another reason to keep stacking your preps. If it’s going to cost you money to keep it in the bank, don’t. Use that money to purchase hard assets such as food, gold, silver, and the metals used to defend those assets, brass and lead. Keep prepping! This ponzi scheme/bubble can’t last forever. Sooner or later it’s all going to collapse. When it does you’ll be glad you prepared because then money in the bank will be worthless.
Prepper tip
Emergency Cook Kit – Multi Fuel Stove with Cooking Pot and Firestarters
https://www.youtube.com/watch?v=D4Bpx4MDkkY
(on sale currently for $34.95 at WND Superstore)
*I have NO connection to this product or WND. I just think it is a useful item.
Direct link…
http://superstore.wnd.com/preparedness/Fire-Warmth/Emergency-Cook-Kit_2
Texasprepper you just wrapped it up in one paragraph. You covered it all right there. Use the money while it’s still worth something. Buy everything you mentioned in bulk, it will you pay back in dividends.
Keep most of your money in Hard usable assets. That’s where it will end up anyway, just to survive. When the cash doesn’t buy anything anymore, and they come for your assets…..give them a demonstration of how well you maintain your firearms.!!!
Pyramid scheme, ponzi scheme, choose the name of your favorite crooked game and that is what the Fed is all about. Problem is the joke is on the American public who get the shaft every time and are left holding the proverbial bag of crap.
Actually, the tactic of deferring or passing problems on to the next administration is nothing new. The are several reasons for this; by hiding their failures help the present president reelect the successor from his party, or to help damage the successor should he be from the other party. It just so happens most presidents are simply too incompetent or ideological to rationally deal with complex issues anyway. Without a doubt they know the consequences of finally raising interest rates, and they also know sooner or later it will have to happen (for a variety of reasons) and the effects won’t be pretty. So, one can see they usually place their personal ambitions, their party, and their politics ahead of the country. I have believed there will be no big economic surprises until the present administration is out of office. All the forecasts of collapse posted on this site are premature and poorly thought out. Probably sometime in 2018 is when they will no longer be able to put it off, though I can assure you the person who is in office will certainly try to further kick the can down the road.
FTW, I am sure you saw the Fed meeting video, that senario you just explain shows us how much a cluster f…..K Of of the past economy.
Yea, ever since the fat acron bulldike lost bladder control in public, she has not been the same ever since. Once she read that they wont calapse the grid until she leaves the board, she almost barfed up crap and the siliva went into her lungs instead of her throat. Yellen needs to be carefull in public meetings in getting caught off guard. If your reading my post Jannet, let me make some suggestions. Go to CVS or Walgrees and pick up a pair of Depend under Garments, this can be good back up for public convulsions.
aka
HCKS..