The Fed Never Calls The Bubble A Bubble... Why Not?

[allthingsluxury]

The Federal Reserve, by manipulating interest rates and creating money out-of-thin air, produces economic bubbles that must always end in painful economic busts.

Have you ever noticed that Fed officials never actually acknowledge any of this? They never warn Americans ahead of time and everyone acts surprised when it all comes down.


Click here to watch this video and to read more:

https://silverliberationarmy.blogspot.com/2019/05/the-fed-never-calls-bubble-bubble-why.html

[The Sceptical Chymist]

If you're referring to things like stock market bubbles, the government has a long-standing history of not mentioning that dirty word bubble or any of its synonyms.  This isn't surprising, either.  Can you imagine the panic selling that would ensue if the Fed or any other branch of the government declared that stocks were overvalued to the point of being in bubble territory?  Do you think any government official, elected or not, would want to take responsibility for that?

Alan Greenspan probably was the only one with balls enough to call the market as he saw it in 1996.  He made a speech, in part of which he said:

But how do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions as they have in Japan over the past decade?

*source*

He knew that stocks had become inflated to the point that they were severely overvalued, and the media latched onto that phrase "irrational exuberance".  Greenspan may as well have called the market a bubble, but he didn't--he likely knew the selling stampede that would inevitably follow.

So that's why you won't hear the Fed talking about bubbles.  On the other hand, I don't think the stock market is in a bubble right now, or at least it hasn't gotten to the point of insanity that it reached in 2000 right before the big crash (or 1929 or any other crash).

[rose9696]

FED has their own development policy. FED is different and that's why they always make America rich every year. I think the bubble phenomenon is very recognizable, when the Fed announces that the bubble will immediately explode.
that is their main reason and they want to let everything happen as naturally as possible. that is my personal opinion on this issue.

[Beerwizzard]

Making money out of nothing in case with FED is a very rough  explanation of thing that is called a monetary policy. American government have to devaluate their currency in order to save its position on global market. For example China is artificialy devaluating their currency to achieve the same goals.
But if we are looking at stock market bubbles then you may notice that until people are talking about bubbles on stock market then we are pretty far from the moment where it would blow up. On the highest prices no one really cares about bubbles.

[CryptoBry]

Making money out of nothing in case with FED is a very rough  explanation of thing that is called a monetary policy. American government have to devalue their currency in order to save its position on global market. For example China is artificially devaluating their currency to achieve the same goals. But if we are looking at stock market bubbles then you may notice that until people are talking about bubbles on stock market then we are pretty far from the moment where it would blow up. On the highest prices no one really cares about bubbles.

Any type of government has the tendency to devalue their currency if the situation warrants for it and of course this is to protect their own interest most especially in the global economy. Yes, government will never tell us the real truth and the possible consequences of what they are doing. The most important thing for the government is that things can do well in the short-term sometimes sacrificing the long-term effects most especially if politics can enter the game. This should have been partly avoided if national currency is backed by valuables like gold and this can be the reason why there are now countries returning to the gold standard.

[SvonioneFromMangoCoinz]

The Fed is the US central bank and they have a lot of bank branches in countries around the world. rather, they are actually holding the entire financial situation of the world. they know when the economy will collapse but they cannot report.
they can only set up contingency plans when the economy goes down, Americans can still get jobs and reduce the number of unemployed people.

[pushups44]

The reason for this is that among the goals of central banks is maintaining price stability and promoting employment. So if they warn investors of an impending doom, it would become a self-fulfilling prophecy. Nonetheless, skepticism of central banks is merited, in my humble view. We like bitcoin precisely because it is immune to the shenanigans of central banks.

[traderethereum]

The reason for this is that among the goals of central banks is maintaining price stability and promoting employment. So if they warn investors of an impending doom, it would become a self-fulfilling prophecy. Nonetheless, skepticism of central banks is merited, in my humble view. We like bitcoin precisely because it is immune to the shenanigans of central banks.

But bitcoin has the potential to be used as an illegal transaction, and we know that may be right now, many illegal transactions have been confirming by the network, but no one will know what that transaction is.
Besides that, the Fed was not acknowledged all of that, and they pretend that they are clean institutions.
Maybe that reason will be true, but once again, we don't know what their plan behind all of this is, and we could only guess.
They don't want to be honest to the public because sometimes if they are honest to the public, that will make the public getting more panic.

[Kakmakr]

Why would the FED acknowledge their own mistakes? The financial system was designed to protect the interest of the top 10% of this world, not the interest of the 90% of people that are running around in the little mouse wheel. 

Knowledge is power and they know how to manipulate this system and how to warn the top 10% before things goes down. This is why you never listen to the rich people's public comments, because they will never divulge the truth. <You should find out what they are doing with their own wealth and copy them.> 

[cryptjh]

The FED and the ECB here in Europe are printing as much money as they like, pushing the prices of most things up, without the salary follow up. This money printing QE led to inflations and losses of buying power.
I think the massive central bank money printing is one of the main reason for the price of bitcoins keeps going up.

[Febo]

Have you ever noticed that Fed officials never actually acknowledge any of this? They never warn Americans ahead of time and everyone acts surprised when it all comes down.

Because if you leave the economy to the market then they would lose their jobs since would be not needed anymore. There would be no big growth and recessions, but just a steady boring predictable slow growth. No way to earn easy wealth.

[Xampeuu]

Have you ever noticed that Fed officials never actually acknowledge any of this? They never warn Americans ahead of time and everyone acts surprised when it all comes down.

Because if you leave the economy to the market then they would lose their jobs since would be not needed anymore. There would be no big growth and recessions, but just a steady boring predictable slow growth. No way to earn easy wealth.

although it is slow but consistent growth, I think it will be better. so that no one is seen manipulating data savagely, like in 2018, it certainly took a lot of casualties. so I'm still sure to be on this road

[dothebeats]

They like to do things their way so let them be, lol. They wouldn't even bother checking the debt they have created and the possibilities of collapsing the economy with their trusty QE and bank partners engaging in multiple financial atrocities while the feds keep them safe. Also, why would the feds warn the Americans of what mayhem is to come? That will only be leaving a sudden taste of distrust within the people's eyes so might as well keep things to themselves. Anybody within that small circle of the feds, alongside the rational thinkers know that economic collapse happens every so often, and to keep the panic contained, they just keep it to themselves.

[Cosbycoin]

The Federal Reserve, by manipulating interest rates and creating money out-of-thin air, produces economic bubbles that must always end in painful economic busts.

Have you ever noticed that Fed officials never actually acknowledge any of this? They never warn Americans ahead of time and everyone acts surprised when it all comes down.


Click here to watch this video and to read more:

https://silverliberationarmy.blogspot.com/2019/05/the-fed-never-calls-bubble-bubble-why.html

I'm tired of youtubers trying to draw me to watch their videos on YouTube. If they don't call it a bubble then what do they call it? Whatever it is, we all still know that a bubble is still  a bubble and when it reaches the peak it will always burst. And it's only someone who is foolish would think that the price of any asset would continue to go up forever.

There are times things will lose their value, everything goes round in a circle, it goes to the highest price it can reach at that time and then it drops and waits for another time to rise again. So don't think that they going up forever, they won't.

[Adriano2010]

Maybe is their choice, but always was used the term bubble for a bubble, because is wrong to call it on another way because is just a bubble, anyway they can call how they want, this not affect crypto on anyway.

[mindrust]

It is just human nature.

BTC hodlers weren't calling BTC a bubble in December 2017 neither. (unless they already dumped their bags) There is a minor difference though. The Fed has no other choice. As an investor, I can change my mind and jump from BTC to gold or USD when I think BTC is overpriced or do the opposite when USD becomes overbought against BTC but the FED can't shift its position. They are the casino owners and they have to defend their casino, investments, position no matter how shitty the situation is.

Look at that, they wanted to raise the interest rates but after they got schooled by Trump, they just couldn't do it. It is the most fucked up thing could happen to a central bank. Getting orders from a politician.

The Fed just did that.

They lost their credibility, completely. People see the Fed as a circus now. The trust is gone, that's why Bitcoin is constantly having more and more investors. Gold too, but they are manipulating gold, when they run out of juice gold will make similar parabolic movements just like bitcoin.

[davis196]

When some institution,organization or entity has enormous power,it usually abuses that power.The same thing happens with the Federal Reserve System.The main problem is that they have the power to create money out of nothing.

[pushups44]

The reason for this is that among the goals of central banks is maintaining price stability and promoting employment. So if they warn investors of an impending doom, it would become a self-fulfilling prophecy. Nonetheless, skepticism of central banks is merited, in my humble view. We like bitcoin precisely because it is immune to the shenanigans of central banks.

But bitcoin has the potential to be used as an illegal transaction, and we know that may be right now, many illegal transactions have been confirming by the network, but no one will know what that transaction is.
Besides that, the Fed was not acknowledged all of that, and they pretend that they are clean institutions.
Maybe that reason will be true, but once again, we don't know what their plan behind all of this is, and we could only guess.
They don't want to be honest to the public because sometimes if they are honest to the public, that will make the public getting more panic.

Actually, due to the transparent nature of the blockchain, government agencies are more than happy to see criminals using bitcoin. It's cash that is more difficult to trace. The idea that bitcoin provides true anonymity is no longer accepted in the industry.

[traderethereum]

The reason for this is that among the goals of central banks is maintaining price stability and promoting employment. So if they warn investors of an impending doom, it would become a self-fulfilling prophecy. Nonetheless, skepticism of central banks is merited, in my humble view. We like bitcoin precisely because it is immune to the shenanigans of central banks.

But bitcoin has the potential to be used as an illegal transaction, and we know that may be right now, many illegal transactions have been confirming by the network, but no one will know what that transaction is.
Besides that, the Fed was not acknowledged all of that, and they pretend that they are clean institutions.
Maybe that reason will be true, but once again, we don't know what their plan behind all of this is, and we could only guess.
They don't want to be honest to the public because sometimes if they are honest to the public, that will make the public getting more panic.

Actually, due to the transparent nature of the blockchain, government agencies are more than happy to see criminals using bitcoin. It's cash that is more difficult to trace. The idea that bitcoin provides true anonymity is no longer accepted in the industry.

I don't think the government will let the criminals using bitcoin to make an illegal transaction and they will tell them always to use bitcoin.
That is not good because that will make the illegal things will increase and the government will face difficulties to track em down and arrest them because they don't have a proves to do that.

[buwaytress]

Why is this a surprise? Why would they ever publicly and explicitly acknowledge it? Would a crypto project ever confess its inherent weakness? Would you expect a state or private entity to ever concede that its very system is rotten to the core?

The acknowledgements come in quite different ways, but perhaps more meaningful. To me, every time a central bank or a Fed Reserve guy or a traditional market advocate attacks Bitcoin. Or diverts the bubble talk to Bitcoin... That's good news.

Because it shows that they're sitting up and taking notice of Bitcoin. Because it means they recognise its threar against them. Because it shows they acknowledge their systems' weaknesses.