15 Years Of Stimulus - Nothing To Show

[galdur]

Submitted by David Stockman via Contra Corner blog,

At this point 15 years ought to count for something. After all, we have now used up one-seventh of this century. So you can’t say its too early to tell what’s going on or to identify the underlying trends.

Indeed, during that span we have encompassed several business cycles, two financial crises/meltdowns and nearly a non-stop blitz of “extraordinary” policy interventions. To wit, a $700 billion TARP, an $800 billion fiscal stimulus, upwards of $4.0 trillion of money printing and 165 months out of 180 months in which interests rates were being cut or held at rock bottom levels.

You’d think with all that help from Washington that American capitalism would be booming with prosperity. No it’s not. On the measures which count when it comes to sustainable growth and real wealth creation, the trends are slipping backwards—– not leaping higher.

So here’s the tally after another “Jobs Friday”. The number of breadwinner jobs in the US economy is still 2 million below where it was when Bill Clinton still had his hands on matters in the Oval Office. Since then we have had two Presidents boasting about how many millions of jobs the have created and three Fed chairman taking bows for deftly guiding the US economy toward the nirvana of “full employment”.

Say what? ........much, much more below

http://www.zerohedge.com/news/2015-04-08/15-years-stimulus-nothing-show

[Pentax]

The US economy is fucked.

China and other emerging economies are sucking what manufacturing jobs they haven't already.

The country is drowning in debt.

And government is so broken that those assholes do nothing but jerk each other off and laugh at the paupers they are screwing.

Totally fucked now.  And getting worse

[galdur]

The US economy is fucked.

China and other emerging economies are sucking what manufacturing jobs they haven't already.

The country is drowning in debt.

And government is so broken that those assholes do nothing but jerk each other off and laugh at the paupers they are screwing.

Totally fucked now.  And getting worse

Yep, the FED June hike hype was just to pump up the dollar so it has room to collapse. They can´t hike, the whole system is leveraged to the hilt and then some. Even the FED itself is leveraged like 70 to 1.

[galdur]

In the midst of the Federal Reserve’s creative but controversial quantitative easing program — the five-year plan of buying billions of dollars in debt securities each month and forcing down interest rates to historically low levels — the central bank’s balance sheet has ballooned to nearly $4.3 trillion in assets from $800 billion, leaving one large unanswered question hanging over the marketplace: What does the Fed intend to do with all those bonds?

…

Can the Fed’s equity capital of $56 billion — yes, the Fed is leveraged 77 to 1 — be wiped out? A mere 1.3 percent change in the value of those $4.3 trillion in bonds would theoretically wipe out the Fed’s equity. Can the Fed go down the tubes, in the same way that Bear Stearns, Lehman Brothers and Merrill Lynch did?

http://notquant.com/there-is-simply-no-way-out-the-fed-is-leveraged-771/

[Spendulus]

Submitted by David Stockman via Contra Corner blog,

At this point 15 years ought to count for something. After all, we have now used up one-seventh of this century. So you can’t say its too early to tell what’s going on or to identify the underlying trends.

Indeed, during that span we have encompassed several business cycles, two financial crises/meltdowns and nearly a non-stop blitz of “extraordinary” policy interventions. To wit, a $700 billion TARP, an $800 billion fiscal stimulus, upwards of $4.0 trillion of money printing and 165 months out of 180 months in which interests rates were being cut or held at rock bottom levels.

You’d think with all that help from Washington that American capitalism would be booming with prosperity. No it’s not. On the measures which count when it comes to sustainable growth and real wealth creation, the trends are slipping backwards—– not leaping higher.

So here’s the tally after another “Jobs Friday”. The number of breadwinner jobs in the US economy is still 2 million below where it was when Bill Clinton still had his hands on matters in the Oval Office. Since then we have had two Presidents boasting about how many millions of jobs the have created and three Fed chairman taking bows for deftly guiding the US economy toward the nirvana of “full employment”.

Say what? ........much, much more below

http://www.zerohedge.com/news/2015-04-08/15-years-stimulus-nothing-show

Full employment would cause hyperinflation,therefore people have got to be out of work.

[galdur]

Bill Holter-Global Black Hole of Derivatives

Bill Holter of MilesFranklin.com contends the banking system is interconnected and very weak and explains his point by saying, “Look at what happened when the Swiss dropped their peg to the euro. That basically has tanked the Austrian banking system. The Austrian banking system is on the verge of collapse because they lent in Swiss Francs. The strength in the Swiss Franc makes those loans much more difficult to pay back. That’s thrown the entire (Austrian) banking system out of kilter. If you do that with the dollar and you raise rates, and the dollar gets strong or spikes up 5% or 10% overnight, what’s that going to do to banks all over the world? That’s going to create a smoking black hole of derivatives.”

https://www.youtube.com/watch?v=wIZQolFxM78

[Pentax]

Submitted by David Stockman via Contra Corner blog,

At this point 15 years ought to count for something. After all, we have now used up one-seventh of this century. So you can’t say its too early to tell what’s going on or to identify the underlying trends.

Indeed, during that span we have encompassed several business cycles, two financial crises/meltdowns and nearly a non-stop blitz of “extraordinary” policy interventions. To wit, a $700 billion TARP, an $800 billion fiscal stimulus, upwards of $4.0 trillion of money printing and 165 months out of 180 months in which interests rates were being cut or held at rock bottom levels.

You’d think with all that help from Washington that American capitalism would be booming with prosperity. No it’s not. On the measures which count when it comes to sustainable growth and real wealth creation, the trends are slipping backwards—– not leaping higher.

So here’s the tally after another “Jobs Friday”. The number of breadwinner jobs in the US economy is still 2 million below where it was when Bill Clinton still had his hands on matters in the Oval Office. Since then we have had two Presidents boasting about how many millions of jobs the have created and three Fed chairman taking bows for deftly guiding the US economy toward the nirvana of “full employment”.

Say what? ........much, much more below

http://www.zerohedge.com/news/2015-04-08/15-years-stimulus-nothing-show

Full employment would cause hyperinflation,therefore people have got to be out of work.

Little doubt that the only reason inflation hasn't gone hog-wild is that the job market basically sucks.

Wages are stagnant, actual jobs that you can hope to pay your bills with are still scarce.

The situation is not good.

The fed has to stop the fiasco and soon.  When they do, markets will tumble, the housing market will contract again, taking more jobs with it, and the cycle will repeat itself.

There is no way this stimulus is sustainable and the only reason it's gone on for as long as it has is that they are scared shitless of what will happen when this false support is removed and true market forces take over again.  Bernanke got the hell out of dodge because he didn't want to be blamed when it all collapsed and I'd expect an exit from Yellen soon, as the game of hot potato goes on.