Federal Reserve Vice-Chairman Stanley Fischer made a couple of controversial statements this week regarding negative interest rates. Fisher stated negative rates “seem to work” while admitting they are bad for savers but they “typically they go along with quite decent equity prices.” There are two problems in play. The first is an explicit admission that the Fed sponsors wealth inequality. …
The Federal Reserve operates the largest printing press on the planet. It seeks to hire the most qualified people to address current economic conditions and design strategies to maximize future market potential. However, when crisis strikes and with global equity markets in turmoil, those hired admit they are out of touch with the present and blindsided by the future. As minutes from their own meetings show, when the Panic of ’08 hit, which the Trends Research Institute forecast and named, the Fed was blindsided. Were they stupid then, or just playing stupid? Today, from China’s economy growing at its slowest pace in a quarter century, Japan sinking back into recession, Europe’s stagnant Gross Domestic Product, Asian economies jolted by plummeting exports, emerging-market economies and currencies crashing, commodity indexes gyrating between 1991-to-1999 lows, etc., the “outlook” is clear: Global Recession. What’s the Fed’s position? Fed Vice Chairman Stanley Fischer recently said Fed officials “simply do not know” what course of action to anticipate since “it is still early to judge the ramifications of the increased market volatility of the first seven weeks of 2016.”
Are they stupid, or playing stupid by not seeing the Panic of 2016
“No flow, no go.” That may be the simplest way to describe the critical role of central banks to the flow of credit and money into any monetary system. It was the lack of access to cash and bank liquidity that humbled Greece, Detroit and others. Ellen speaks with Dr. Timothy Canova, one of the foremost experts on our central bank, the Federal Reserve, about why their operation of our cash spigot determines who wins and who loses. Co-host Walt McRee speaks with Gwen Hallsmith about a newly published handbook focusing on new ways to invest in local economies and Matt Stannard reviews the Fed from a visionary point of view – what could be accomplished if the Fed worked for the public interest?