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The U.S. economy is weak. Very weak. But the Federal Reserve is planning to raise interest rates anyway. Why?

Here’s what’s going on: According to the Atlanta Fed the US economy is expected to grow at a respectable 2.8 percent for the first quarter of 2017 That’s not bad considering that, for the entire year of 2016, the economy hobbled along at an anemic 1.6 percent. Unfortunately, the Fed’s original forecast has been slashed to account for the downturn in the data. According to their current (March 8) calculation, the economy is growing at a meager 1.2 percent. In other words, the already-sluggish and underperforming economy is gradually grinding to a standstill.

This isn’t the kind of environment where the Fed typically raises rates. In theory, lower rates create an incentive for borrowing which boosts consumer and business spending which, in turn, increases growth. Conversely, raising rates, however slightly, has a negative impact not only on rate-sensitive sectors of the economy (Re: Housing) but also on stock and bond markets where investors adjust their portfolios to reflect the rising cost of credit.

So why is the Fed raising rates when the economy is crawling along at suboptimal speed and, perhaps, headed for recession?

That question can be answered in two words: Donald Trump.

The Trump Bump has been the biggest post election day rally in Wall Street history. The promise of giant tax cuts, fewer regulations and $1 trillion in fiscal stimulus has sparked a stock-buying frenzy that has added nearly 2,000 points to the Dow Jones Industrial Average while piling up another $3.2 trillion in market capitalization. Wall Street loves Donald Trump, there’s no doubt about it.

Regrettably, the unexpected stock-surge has thrown a wrench in the Fed’s plan to gradually guide stocks higher avoiding a bond market blowout that could send yields into the nosebleed section wiping out trillions of dollars in equity in the process. The Fed would rather avoid that scenario which is why the FOMC is expected to gradually raise rates to dampen the irrational exuberance that has overtaken Wall Street. So after nearly a decade of flatlining GDP — accompanied by a stock market rally that lifted the Dow from an abysmal 6,547 points on March 9, 2009 to a lofty 20,906 on March 8, 2017– the Fed has finally decided to ease on the brakes, remove the punchbowl, and see if it can regain control over the runaway equities-train.

Following Friday’s BLS report that 235,000 new jobs were added in February, Goldman Sachs economists predict the Fed will hike rates three times in 2017; in March, June and September. That should stop the Trump surge dead-in-its-tracks. Here’s more from the New York Times:

“Employers added 235,000 workers to their payrolls in February, the government reported on Friday, a hefty gain that clears the path for the Federal Reserve to raise its benchmark interest rate when it meets next week.

The official jobless rate fell to 4.7 percent, from 4.8 percent in January, while average hourly earnings grew by 0.2 percent in a report that overlaps with President Trump’s first full month in office.

“They’re ready to go,” said Diane Swonk, founder and chief executive of DS Economics, referring to the central bank’s expected vote next week to raise rates from their historically low levels….

Although the economic anxiety that helped put President Trump into the White House remains, the official jobless rate is near what the central bank considers full employment — a threshold where, in theory at least, everyone who wants a job at the going rate can find one.”

Of course, the booming labor stats do not account for the millions of people who have left the workforce altogether after failing to find a job in Obama’s less-than-stellar economic recovery. The data also fails to point out that 95 percent of all the new jobs have been crappy, low-paying, parttime service sector jobs that barely keep food on the table let alone put a roof over one’s head. But, whatever.

Fed chairman Janet Yellen sees the uptick in new hires as a vindication of her steady-as-she-goes 8-year zero rate monetary policy that has shifted trillions to the investor class while working people have seen their incomes and wages stagnate, their prospects for retirement dwindle, and their living standards fall. Now Yellen wants to shift gears and gradually raise rates to preemptively dampen the possibility that tighter labor markets will increase wages and, thus, give workers a bigger slice of gains in production. That, of course, is a catastrophe for which the Fed will do everything in its power to avoid. Any sign of higher salaries will be dealt with swiftly and decisively. As de facto representative of the ruling Bank cabal, the Fed would rather prick the massive asset-price bubble it has created and risk sending the financial system into a headlong plunge off a cliff, than allow perennially-strapped workers to garner even a farthing more for their daily drudgery. Class hatred remains the animating force that fuels all Central Bank policy decisions. Here’s more from the Times:

“Bigger paychecks are something that most Americans, after years of stagnant wage growth, are particularly eager to see. The Federal Reserve, too, has been waiting for an increase,(yuk, yuk) but it is also wary of wages rising too fast. The board’s members want to head off incipient inflation and so have begun to slowly raise rates, which makes borrowing and risk-taking more expensive.”

Now there’s a phrase for the ages: “Incipient inflation”?

You’ve heard of preemptive war, haven’t you? Now we have preemptive attacks on inflation. In other words, even the whiff of higher wages sets off alarms at the Eccles Building where the Bank Mafia hastily gathers their members to mount yet-another assault on working people. Keep in mind, that when stocks double or triple in value providing mountains of cash for the parasite class for whom Yellen works– it’s a sign of boundless optimism and confidence in the illusory recovery, but when wages make even the slightest movement upwards, the shift is greeted with howls of “runaway inflation” followed by a series of excruciating rate hikes that boost unemployment, reduce activity and weaken growth. Where’s the justice?

At present, inflation hasn’t even reached the Fed’s 2 percent target while, according to Reuters, workers wages have gone up by a pathetic 6 cents per hour. Is that why the Fed is slamming on the brakes?

Yer darn right, it is. No raise for you, Mr. American worker. Janet Yellen is going to make sure of that!

But there’s another reason why Yellen is tightening policy even though the economy remains in the 1 percent-GDP doldrums. She wants to torpedo Trump’s economic plan before the details are even put to paper.

The Fed has repeatedly expressed uneasiness about the president’s $1 trillion fiscal stimulus strategy, a plan Yellen thinks could result in a sudden blip of activity that could push up inflation and overheat the economy. A series of rate hikes will not only put the kibosh on Trump’s chances for success, it will also undercut prospects for stronger growth.

But why would Yellen want to foil a plan that would result in stronger growth?

It’s because stronger growth means higher yields on long-term debt. In other words, Yellen’s dodgy buddies in the bond market will get absolutely pulverized if GDP picks up and Trump achieves his goal of 4 percent growth.

Market analysts think that Trump will never achieve that goal, and they’re probably right. After all, the Fed will never let him.

MIKE WHITNEY lives in Washington state. He is a contributor to Hopeless: Barack Obama and the Politics of Illusion (AK Press). Hopeless is also available in a Kindle edition. He can be reached at [email protected].

(Republished from Counterpunch by permission of author or representative)
• Category: Economics • Tags: Federal Reserve, Unemployment 
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  1. The Fed liked Obama and hoped Hillary Clinton would win the election. It’s now doing what it can to weaken the economy, undermine Trump and provide impetus for a Trump impeachment or resignation. (A great deal of Nixon’s problem in 1974 was a weak economy.) Even if Trump stays in office until 2020, a bad economy, high unemployment, etc. will ensure the Democratic electoral victory that the Fed was hoping for in 2016.

    • Replies: @Wally
  2. TheJester says:

    There is no question that the Fed plays politics in order to support the interests of financial elites who own and manage the Federal Reserve Bank … and there is no question that the Fed supports the globalization of the world’s economy and the financial services that fuel it.

    Post-WWII, there have been too many suspicious cases of low-interest rates and a surging economy just in time to support a sitting president … and likewise, there have been too many suspicious cases of higher interest rates and a stalled economy just in time to sabotage an incumbent’s administration and chances for reelection. In short, the Fed chooses sides … subtle and wrought with quasi-magical incantations and ceremonials to justify its mystic insights into the future.

    The loyalties of the Federal Reserve are best exposed by the serial appointments of members of an (((elite community))) to the position as Chair of the Federal Reserve Board of Governers –Alan Greenspan, Ben Bernanke, Janet Yellen — and other senior management positions. And consider the puzzling appointment of Stanley Fisher as the Vice-Chairman of the Federal Reserve. From Wikipedia:

    Stanley Fischer (Hebrew: סטנלי פישר‎‎; born October 15, 1943) is an economist and the vice chair of the U.S. Federal Reserve System. Born in Northern Rhodesia (now Zambia), he holds dual citizenship in Israel and the United States. He served as governor of the Bank of Israel from 2005 to 2013. He previously served as chief economist at the World Bank. On January 10, 2014, United States President Barack Obama nominated Fischer to be Vice-Chairman of the US Federal Reserve Board of Governors.

  3. the Fed will never let him

    I’m no economist (thank god), but I find it hard to believe in fed’s omnipotent powers. Under the normal conditions the fed does probably conduct the orchestra, but these times aren’t exactly normal.

    Should the administration introduce, for example, a 40% tariff on most imports, it might turn out that the fed’s but a paper tiger…

  4. “God laughs at those who deplore the effects of which they cherish the causes”. – Bossuet

    Lyndon Johnson funded the Vietnam War with deficits. While the Fed at that time was a much lower profile than today, it was widely known that William Mc Chesney Martin did not approve. That is the same William Mc Chesney Martin who said it was his job to take away the punch bowl just as the party started going.

    Richard Nixon appointed Arthur Burns as chair (who he thought he could control) and then closed the gold window over the opposition of the Fed.

    The Humphrey-Hawkins Act (dual mandate) was a “shot across the bow” of the Fed, intended to make sure they kept easy money policies going.

    The Fed is what it is and acts as it acts because that’s the way the politicians want it. The Fed can be convicted as an accomplice in the crime but the politicians, elected by the people, are the criminals in charge. All this obsession with the Fed is just plain nuts.

    The founders knew all democracies commit suicide and that ours would fail when the people voted themselves access to the Treasury. That is what has happened. The problem lies in democracy and human nature.

  5. Anonymous [AKA "Tax Profit"] says: • Website

    I wonder why Congress and the Fed are so unwilling to tax multinational corporations. Middle-class tax payers, small businesses, and domestic manufacturers pay MUCH higher effective tax rates than Google, Goldman Sachs, Pfizer, and Merck.

    The voters are watching now. Incumbents in Congress have long enabled corporate tax avoidance in exchange for bribes, ahem, I mean “campaign contributions.” That won’t fly this cycle. Do “our representatives” have the courage to represent us? Or will they keep acting like Goldman Sachs and Pfizer tax attorneys?!

    • Replies: @Sam J.
  6. I wonder why Congress and the Fed are so unwilling to tax multinational corporations.

    I believe there are two reasons.

    Some are paid to favor the multinationals and, having no morals or understanding, are able to justify it to themselves.

    Some are aware of how precarious the situation is and are afraid bringing down the temple. If you do not understand that people who do understand are scared shitless, then you are in the dark.

    It is going to get ugly. If you think there is some way to avoid the catastrophe ahead of us you are only going to frustrate and torture yourself looking for a solution that does not exist. It is too late.

    Sauve qui peau (hat tip Derb).

    • Agree: bluedog
  7. Anonymous [AKA "mystero"] says:

    I don’t understand the logic at all. Low interest rates give money to the investor class, but high interest rates prevent wages from increasing?

    What do you want from her?

    • Replies: @LD
  8. anon • Disclaimer says:

    It’s all just the playbook. Maybe a thumb on the scale. Trump is unpopular among elites, since he is considered unpredictable and hence potentially dangerous. So, lets make sure that the markets know what they should know. But the thing is that the Trump equity market surge can’t be explained. We were getting one hike anyway. To, teeing up a third is just sending a message.

    Meanwhile, the real drivers are the US dollar (too strong) and oil (too cheap). A rate hikes worsens both. But the Fed isn’t really that powerful. Plus, getting the fed fund rate off the zero bubble is a good thing. Raise them so they can be lowered later. I’m betting that we get March and then can’t quite do even a second.

    The surge was supposed to come in 2015, but the US dollar and oil squashed it. Its obvious that Trump’s growth agenda is without plausibility. Want to help exporters? That’s great and all, but Boeing is in Blue State Washington and Walmart is in Deep Red Arkansas. Infrastructure? The only. policy that pretends to unify Republicans is a tax cut — any tax cut. And there goes any hope of financing any change.

    However, Trump is a lucky guy. Obama beat the animal spirits like a rented mule, but they are back. A rate hike is good for banks and getting the entire Federal regulatory apparatus off the throat of the (non shadow) banking system and letting them make some profits will finally facilitate lending to people who need and want money to spend and invest. Small business and non prime. It was impossible to see just how much damage the anti business tone was having until it disappeared.

    Is 25 bp going to stop anything? I don’t see it. The entire Trump boom is inexplicable — which required conjuring up the animal spirits for lack of anything else. I can feel them. People are going to do business as usual in pre Obama USA and the hell with anything else. It’s been time to grow for over two years. It can’t be contained by the Fed.

  9. @anon

    However, Trump is a lucky guy. Obama beat the animal spirits like a rented mule, but they are back.

    What is going on in the retail sector demands an examination of your “animal spirits” diagnosis.

    The broad public may answer pollsters positively about their outlook, but they are drawing in and real retail spending is dropping. Consumer spending is nearly 70% of GDP and those are the animal spirits that drive the economy.

    The surge in equities may well be nothing more than FOMO (fear of missing out) for those with cash on the sidelines or unused credit balances in equity accounts (margin buying has rebounded). What matters to the economy is what the herd does. If the consumer does not move as expected this may quickly peter out.

    Do investors think Donald Trump is going to make America Great Again or just provide one more round of Keynesian pump priming in a dry well, causing them to crowd around for what little flows back out?

    A few upticks on the unemployment rate could see the herd stampede.

  10. Imagine if the Fed repeatedly jacked up the rates right after a black president was elected. There’d be blood in the streets and the MSM would be leading the charge.

    • Agree: MBlanc46
  11. The Empire is collapsing and with it the domestic economy. Neither Trump nor Hillary nor the FED can stop it. Most Americans will be blind sided. The ridiculous gold bugs will be vindicated although fiat money is not the problem. Debt money is the problem. Debt money plus absolute corruption plus the crippling cost of Empire.

    The FED is much bigger than Trump. The FED, Wall Street and the U.S. Treasury are one. I don’t know what Yellen is up to at the moment and she may be out to get Trump. But I do know she has bigger fish to fry.

    • Agree: bluedog
  12. Miro23 says:

    It’s because stronger growth means higher yields on long-term debt. In other words, Yellen’s dodgy buddies in the bond market will get absolutely pulverized if GDP picks up and Trump achieves his goal of 4 percent growth.

    A good article showing that the whole thing is held together by low interest rates.

    Almost free money feeds into speculative bubbles, with “too big to fail” taxpayer guarantees and a FED ready to flood the market with liquidity (more taxpayer debt) should anything go wrong.

    And almost free money allows the government to take on these enormous debts and spend far more than it collects in taxation to fund: 1) Middle East wars 2) a welfare dependent Democratic voter class 3) a plethora of Special Interest projects nurtured by client politicians = totally bad value healthcare, education, military procurement etc.

    Like an old and rotten tree, the US economy is just waiting for the next high wind to bring it crashing down.

  13. When I taught economics at the University level, this was how I lectured on money creation:

    They put ink on paper. I showed pictures of the printing presses. Then pictures of the money being delivered to the banks in armored trucks. The only detail they needed to know was that the banks shared the dough in proportion to their size.

    All that crap about monetizing government debt in order to stimulate the economy or prevent it from “heating up” is obfuscatory garbage in terms of what citizens need to understand. In this reality-based discussion, “inflation” is an increase in the quantity of money in circulation. Its affect is higher prices, in proportion to the distance from the hands of the initial beneficiary. In the case of a counterfeiter that is going to be Las Vegas real estate and with the banks it is going to be financial asset bubbles first and foremost.

    The banking class can make money both ways: boom or bust. If they get to print money then loaning it out for, say, Congressionally mandated bad loans – then they end up with the property from bad loans through foreclosure. Otherwise, they just profit from loaning money they printed out of thin air.

    It is pretty clear the banking class hates Trump. So with all due respect to a point that has merit otherwise in this article, you can’t discount the motive to deal Trump a blow with a financial crash and subsequent recession. There will be some hedge fund retards that can’t see what’s coming and they’ll jump off buildings, sure. But by and large the only people hurt will be common citizens and perhaps Trump. But I wouldn’t be so sure. He has been underestimated from the day he first declared candidacy and could turn this right around on the bankers.

    He just paid homage to Andrew Jackson. Look up your history and I think you are going to see that was a shot over the bow of the bankers, the likes of which we have not seen in my lifetime.

  14. m___ says:

    The whole of the stock-markets data is “Fake News”. It is worse then religion, only the bishops stand a chance to better themselves.

  15. Whitney, me lad! Damn yer good!

  16. Agent76 says:

    Mar 8, 2017 US private sector created 298K jobs in Feb. vs. 190K est

    Job fair Companies added jobs at a blistering pace in February, with a notable shift away from the service-sector positions that have dominated hiring for years, according to a report Wednesday.

  17. Sam J. says:

    “…The Fed has repeatedly expressed uneasiness about the president’s $1 trillion fiscal stimulus strategy…”

    As opposed to the $16 Trillion, and some say $29 Trillion from looking at stats, bailout given to the banks.

    • Replies: @Agent76
  18. Sam J. says:

    “…I wonder why Congress and the Fed are so unwilling to tax multinational corporations…”

    As far as I’m concerned since the courts have ruled corporations are people and can give money to campaigns like people then they should be taxed like people. They also should forfeit limited liability and follow the same rules as people. If they wish to relinquish there personhood then maybe they could have some different breaks.

  19. Agent76 says:
    @Sam J.

    View and share these with others so more folk’s will be in the know and it was all was a ponzi slavery ploy.

    The Fed Audit

    GAO (Government Accountability Office) report Of the Federal Reserve

    Barney Frank in 2005: What Housing Bubble?

    A speech by Barney Frank on the House Floor in 2005 where he refutes any concern about a housing industry bubble and advocates for the government to continue expanding home ownership.

    How The Democrats and Rino’s Caused The Financial Crisis

    Starring Bill Clinton’s HUD Secretary Andrew Cuomo And Barack Obama; With Special Guest Appearances By Bill Clinton And Jimmy Carter

  20. nsa says:

    Joonomics as practiced by the central bank and their pals is easy to defeat…JUST REFUSE TO BORROW. Become debt free. Apply scissors to credit cards. Want a house…..start saving you money. Want to start a business… it on your own nickel. Same for getting rid of the KM (Kosher Media). Unlike the hapless Winston Smith, you have the power to turn off the TalmudVision box and dispose of it. Don’t like jooies, stay out of their crappy mattress and trinket stores. Complicated problems require simple common sense solutions.

    • Replies: @jacques sheete
  21. As US economy stands now the interest rate increase would be justified strictly only by rise of inflation.

  22. MBlanc46 says:

    Boeing is in blue state Illinois.

  23. Mark Presco says: • Website

    It looks to me that the enormous debt bubble that these bankers have created is so toxic that when it pops it is all going to go. The wealth of the elite should evaporate, resulting a massive global reset.

    Can someone out there please explain why these global oligarchs think that they will retain power and control?

    • Replies: @Miro23
    , @another fred
  24. @nsa

    Great comment! Plutarh would have agreed, see below.

    Debt and junk, including “fashion” are slavery.

    Sheete’s Commandment’s (The Holy Trialogue):

    1. Stay outta debt.

    2. Avoid wage slavery.

    3. Question everything, especially authority.

    “Care not for fine horses or chariots with handsome harness, adorned with gold and silver, which swift interest will catch up with and outrun, but mounted on any chance donkey or nag flee from the hostile and tyrannical money-lender, who does not demand land and water like the Mede,887 but interferes with your liberty, and lowers your status.

    If you pay him not, he duns you; if you offer the money, he won’t have it; if you are selling anything, he cheapens the price; if you don’t want to sell, he forces you; if you sue him, he comes to terms with you; if you swear, he hectors; if you go to his house, he shuts the door in your face; whereas if you stay at home, he billets himself on you, and is ever rapping at your door.”

    Plutarch, Morals, Chapter 23, “Against Running in Debt” c. 100 AD…

  25. Another fun quote:

    Usury and an early bailout of the money boys. We never learn.

    “The curse of usury, it must be owned, is inveterate in Rome, a constant source of sedition and discord; and attempts were accordingly made to repress it even in an older and less corrupt society…

    Financial ruin brought down in its train both rank and reputation, till the Caesar came to the rescue by distributing hundred million sesterces among various counting-houses…”

    TACITUS, ANNALS, Book VI (beginning)1

    It is not known when Tacitus began writing the Annals, but he was well into writing it by AD 116.[1] Modern scholars believe that as a senator, Tacitus had access to Acta Senatus, the Roman senate’s records, thus providing a solid basis for his work.*.html

  26. One more:

    Even Aristophanes knew the score. From his satire on a communistic government to be run by women:

    Where did the lender get the money from in the first place, if all the money belongs to everyone? Obviously, he’s a thief!

    Aristophanes, “Women in Parliament”(also known as “The Assembly Women” or “Women in Power”) κκλησιάζουσαι

    Written 390 BCE, Translated by G. Theodoridis

  27. Pandos says:

    Like any corporation, the fed’s job is to maximize profits for its shareholders – and you ain’t one, although it is your money.

  28. Miro23 says:
    @Mark Presco

    Can someone out there please explain why these global oligarchs think that they will retain power and control?

    They know better than you or me when the bubble is going to pop, and you can be sure that they’ll have their wealth somewhere else when it does. Billions can shift between currencies and countries with a few clicks, and a private jet doesn’t take long to get from New York to London or Zurich.

    When it’s all over , I assume that they’ll come back to the rescue and buy everything up cheap.

    • Replies: @Anonymous
  29. Art says:

    Leave the interest rate at ZERO – have the Fed loan money to local banks – have the local banks loan the money to American home owners at zero interest plus administration costs in 15 – 7 year loans. The local banks will return the money less administration costs to the Fed.

    In this way the average American can rebuild his wealth and America can get back to normal.

    There is no law of god or nature that says this cannot happen.


    • Replies: @another fred
  30. @Art

    There are all kinds of way this can work out, BUT nothing will work unless and until the Congress (or whoever replaces them*) finds the courage to stop the bleeding.

    The Fed has done what they have done because that was the job they were given by the Congress as the Congress continued to “stimulate” the economy. This is not rocket science.

    *Have NO doubt, in an “emergency” the power of the purse will be taken from the Congress.

  31. @Mark Presco

    Can someone out there please explain why these global oligarchs think that they will retain power and control?

    “They”, or some portion of them, will retain power because people have huddled themselves into dependent masses crowded into cities. The small, independent farms and local businesses are no longer the core of the economy.

    When TSHTF the people will scream for the government to “do something”.

    They will.

    As long as the earth is overcrowded with a dependent population “they”, whoever they are, will be in charge. Meet the new boss, same as the old boss.

  32. LD says:

    I was thinking the same thing you are. Wasn’t the artificially low interest rates supposed to be raised a long time ago?

  33. Wally says:
    @Diversity Heretic

    Why have Jews held the last three Federal Reserve chairs?

    Just a coincidence?

    Zionist Wikipedia Editing Course

    Who demands mass immigration into white gentile countries, but stops non-Jew immigration into “that shitty little country”?
    Who runs the Federal Reserve?
    Who runs Wall Street?
    Who owns the US Congress?
    Who owns the White House?
    Who dominates the US Supreme Court?
    Who forces acceptance of the fictitious & impossible ’6M & gas chambers’?
    Who runs the media / entertainment?
    Who runs the music business?
    Who dominates ‘academia’?
    Why is AIPAC the most powerful, dominant lobby, which regularly writes the text of Congressional bills and resolutions?
    Who is it that wants to censor free speech via the “hate speech” canard?
    Who is it that demands we shed the blood of US troops for their interests?
    Who are the real & biggest racists on the planet?

    • Replies: @JohnDough
    , @JGarbo
  34. Anonymous [AKA "Freedomfalcon"] says:

    All of these Federal Reserve shills!
    The agenda of the Federal Reserve central bank is the wholesale destruction of a nation and its people by the manipulation of the value of one’s savings.
    Removing numerals from your account is illegal. Yet, removing spending power of those same numerals in one’s account is lawful. $5.00 for a pint of blueberries.
    In 1970 a Corvette was around $5000-6000. Today that same car is over $60,000. So, your first dollar you saved prior to the end of the Bretton Woods agreement is now maybe worth a dime. Probably less. The American standard of living is today only 1/3 of what it was in 1973 on average. Yet, our access to more of these dollars is restricted by the Federal Reserve actions.
    A general strike is in order to topple this merciless plague on our land and the world. Congratulations! You’ve just found yourself to the feet of the nexus of Satan’s power grip on Earth(the Federal Reserve).
    The Evil breeds the demon seed, the power, the fortune, the fame.-Iron Maiden

    Solution: mentioned above
    Nationwide General Strike to throw the “wheel” to the ground.
    Perhaps this could be achieved with the truckers unified slowing to the minimum
    speed until the vampire squid is turned into undead calimari.

  35. joe webb says:

    .” Now Yellen wants to shift gears and gradually raise rates to preemptively dampen the possibility that tighter labor markets will increase wages and, thus, give workers a bigger slice of gains in production. ”

    This is the kind of left-wing ideology that, first, has no basis in argument in this essay, and none generally in economics. There is an argument that runaway inflation can accompany a wage improvement, but we are so far from that happening, that Whitney is singing his johnny one note tune of anti-capitalism..

    IN fact, the Fed has been much worried about deflation, and that is the main reason it has wanted to raise interest rates, and has been afraid of doing so because of fear of choking off what anemic growth there has been of late.

    Whitney should be retired to the old left-wingers home to blather on with his fellow resenters.

    Socialism is the Only Answer goddamnit.

    Joe Webb

  36. Anonymous [AKA "Ange"] says:

    The interesting thing about our times is that NOBODY WANTS THEM.

  37. Quote: Stronger Economic Growth? Over My Dead Body, Says Janet Yellen…
    Please someone accommodate the wish of that pigs carcass ???

  38. JohnDough says:

    Right on! Until people talk about this problem nothing is going to happen. Everyone also goes after Trump’s Christian administration members but not Jewish Goldman Sachs alumnus like Gary Cohn and Steve Mnuchin! They lied to Congress too. But guess who owns Congress.

  39. JGarbo says:

    So the good and great Christians, who outnumber the dastardly devilish Jews by hundreds of millions, cannot overcome their evil genius? Only a really dumb Christian would even dare to think that way, and deserve his lowly place in the heap.

    • Replies: @Floyd R Turbo
  40. Yellen may want to torpedo the Trump economy but she’s actually going to ensure that it lasts longer and is stronger than it would have otherwise been. There’s too much cheap money waiting for something to do as it is – raising interest rates isn’t going to make any difference. But it will result in people having more confidence than they otherwise would have had, because they won’t be afraid of inflation.

  41. @JGarbo

    Only a few hundred jews have any power – most jews are being manipulated by the elite jews too.
    There ARE powerful jews who want to help their fellows, but a lot of powerful jews don’t give a fuck, and simply see other jews as gullible tools.
    When the US and Europe crash and burn, a lot of common jews will be injured. I don’t think Israel will be immune either.

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