FedSpeak Translation - There Is No Recovery

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DrKrbyLuv's picture
DrKrbyLuv
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FedSpeak Translation - There Is No Recovery

Link to complete Market Ticker (Karl Denninger)

Yet more BS Fedspeak, this time in the mainstream media:

In separate speeches, Janet Yellen, president of the Federal Reserve Bank of San Francisco, and Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, warned that rising unemployment could crimp consumers, restraining the recovery. Consumer spending accounts for about 70 percent of economic activity.

That's because there is no real economic recovery at all.  So why is the stock market up so much?

More than happy to show 'ya.  Two charts should suffice:

That is an overlaid chart (as close as I can easily get them to register) on the dollar and The S&P 500 from the March lows to today.  Notice the near-perfect inverse correlation. The Dollar goes up, the market goes down. The Dollar goes down, the market goes up.

Now today, literally minute-by-minute:

Same correlation - near-perfect.  Folks, you don't have to engage in any sort of "conspiratorial" thinking on this whatsoever.  You only need examine the facts.

The rally in the market has exactly nothing to do with the economy and the outlook for it.  It is tied to one and only one thing - the decline in the dollar.  

A WEAKER, EVEN COLLAPSING, DOLLAR IS NOT COMMENSURATE WITH OR INDICATIVE OF A STRONGER ECONOMY.

Since March The Federal Reserve and Federal Government have in fact promulgated and prosecuted policies that do the exact opposite. The stock market has responded not to forward economic prospects, as is often claimed, but rather to the "hot money" flows of foreign and domestic speculators and a dollar-based carry trade engendered by The Fed's zero-percent interest rates.

Yes, the stock market could go to all-time highs - for a short while - if this is allowed to continue. But oil (priced in dollars) would be $300 and the dollar would be at 40 - everything you buy that is imported would literally double (or more) in price, and your standard of living, since energy is in everything, would be cut in half - or worse.

How well will the stock market do over the intermediate and longer term when the 70% of the economy that is consumer spending (that's you, dear reader!) is destroyed by ramping import costs - whether the government calls that "inflation" or not?

The mainstream media will not show you the above charts, as they put the lie to any claim that the market is "foreshadowing" economic recovery in the next six to twelve months.

Bernanke, Geithner and the other stooges in our government and media are intentionally misleading you.

Again.

Let's review the "reasons" that we awarded a monopoly to create money to the private Federal Reserve.  According to official Federal Reserve documentation, their responsibilities fall into four different specific duties:

  1. Conducting the nation's monetary policy by influencing monetary and credit conditions in the economy in pursuit of maximum employment, stable prices, and moderate long-term interest rates
  2. Supervising and regulating banking institutions to ensure the safety and soundness of the nation's banking and financial system, and protect the credit rights of consumers
  3. Maintaining stability of the financial system and containing systemic risk that may arise in financial markets
  4. Providing financial services to depository institutions, the U.S. government, and foreign official institutions, including playing a major role in operating the nation's payments system

They have failed in every capacity but yet our government has been giving them more and more power.  And the corporate media seems content to give them a free pass.  At what point does it become obvious and irrefutable that the private Federal Reserve is the New York branch of an international crime syndicate?

Larry

earthwise's picture
earthwise
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Re: FedSpeak Translation - There Is No Recovery

Excellent post, Larry. Quite illuminating. Brings  the corruption into sharp focus.

docmims's picture
docmims
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Re: FedSpeak Translation - There Is No Recovery

The market as an inflation hedgeUndecided.  Think I'll pass.

 

We will not recover till unemployment starts falling.  It is hugely undereported.  It is approaching 30 percent if you include (as I contend) the number of unemployed who took advantage of the social security retirement and disability safety net.  These numbers are not included.  The number of unemployed over 6mos is not included, and the folks working part time that need full time jobs is not included.

Tax cut for small business, while it would crash the dollar train, would still at least jump start the employment train.  Unfortunately big business and the government are one and the same now, and discourage small businesses, because they can't controll them.

Damnthematrix's picture
Damnthematrix
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Re: FedSpeak Translation - There Is No Recovery

I'm confused now... "Janet Yellen, president of the Federal Reserve Bank of San Francisco, and Dennis Lockhart, president of the Federal Reserve Bank of Atlanta"?  You have MORE than one Fed...?

Mike - from Australia where we only have one Fed (actually called a Reserve Bank here)

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cmartenson
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Re: FedSpeak Translation - There Is No Recovery
Damnthematrix wrote:

I'm confused now... "Janet Yellen, president of the Federal Reserve Bank of San Francisco, and Dennis Lockhart, president of the Federal Reserve Bank of Atlanta"?  You have MORE than one Fed...?

Mike - from Australia where we only have one Fed (actually called a Reserve Bank here)

Mike -

we have one Federal Reserve that is composed of 12 sub-regions each of which has its own head and staff.  They are not created equally and the most important of them all is the NY Fed which is where Geithner hailed from (after he was done learning from and bonding with Goldman employees of course).

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ao
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Re: FedSpeak Translation - There Is No Recovery

Thank you Larry.  This is the post I've been looking for to give to a friend who keeps crowing about the stock market's recovery.  He doesn't get it.  You've explained it perfectly. 

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ckessel
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Re: FedSpeak Translation - There Is No Recovery
Damnthematrix wrote:

I'm confused now... "Janet Yellen, president of the Federal Reserve Bank of San Francisco, and Dennis Lockhart, president of the Federal Reserve Bank of Atlanta"?  You have MORE than one Fed...?

Mike - from Australia where we only have one Fed (actually called a Reserve Bank here)

Mike,

We like to have redundancy here in America. That way if one goes down we have back-up printing capability to insure there will be enough notes to go around!

Coop

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