NY Times: A Trump Economic Boom? The Fed May Stand in the Way
By BINYAMIN APPELBAUM
Without intending to do so, (or perhaps intending to send a message to his comrades-in-crime?) Slimes scribbler Binyamin Appelbaum (cough cough) performs a great service for some of us more advanced "conspiracy theorists" TM who have been warning that the HNB (Hebrew National Bank) intends to pull the rug out from Orange Man before he can turn the economic ship around. It's actually quite a shocking read -- not so much because it teaches us anything new, but because of its unusually brazen portrayal of just how powerful and how subversive the Central Bank of America really is. Let us examine a few excerpts.
Bennie lets a huge "cat out of the bag" for us.
Appelbaum: Investors in financial markets, and those predicting faster economic growth in 2017, would do well to remember the famous words of William McChesney Martin Jr., the former Federal Reserve chairman, uttered way back in 1955: "The Fed’s job is to remove the punch bowl just as the party gets going."
Analysis: A former Fed Chair admits that the bank has the power to kill an economic expansion (generally done in order to kill the inflation that the Bank itself has ignited).
Appelbaum: President-elect Donald J. Trump’s promises to cut taxes and regulation and to increase
spending on infrastructure and defense have convinced many that a sugar high in the near term will goose the economy. But Fed officials say the economy is already expanding at something close to its maximum sustainable pace, meaning faster growth would drive inflation toward unwelcome levels.
Analysis: "Maximum sustainable pace?" -- Do these gangsters at the HNB realize how many people are out of work or underemployed or earning crap for wages? Answer: Of course they know what's going on, and they want to keep it that way in order to ensure that Orange Man fails!
Appelbaum: To avoid overheating, the Fed could respond by raising interest rates more quickly. The more Mr. Trump stimulates growth, the faster the Fed is likely to increase rates.
Translation: The more Trump succeeds, the more aggressively the HNB will move to thwart that success by tightening the money supply with rapidly rising rates.
Today's Slimes confirms that "conspiracy theorist" Congressman Lindbergh Sr. was right when he warned that the new Central Bank (enacted in 1913) would come to dominate the economy through its issuance and contraction of debt-based currency:
“The new law will create inflation whenever the trusts want inflation. From now on depressions will be scientifically created.”
Appelbaum: The rate sits in a range of 0.25 percent to 0.5 percent, a low level intended to stimulate economic growth by encouraging borrowing and risk-taking. Analysts predict the Fed will shift the range upward by a quarter of a percentage point, modestly reducing those incentives.
Analysis: Sooner or later the base rate was going to be increased. It is the fact that it will happen so soon after the election that is disturbing. Clearly, the HNB delayed the inevitable rate hike in order to prop up Obongo's sick economy as best as possible and also to help elect Killary.
Appelbaum: The rate increase is widely regarded as a foregone conclusion. ...The looming question is how quickly the Fed will continue to raise rates in 2017.
Analysis: We predict that the rate hikes will come however fast and large as necessary to prevent a Trumpian economic boom.
Appelbaum: Economic forecasts always require large assumptions, but that is particularly true in the present case because Mr. Trump has provided relatively few details about his plans.
Analysis: To the contrary, Orange Man's economic plans with regards to taxation, regulation and trade have been quite specific -- which is why economic optimism, as confirmed by surveys of businesses large and small, is now soaring.
Appelbaum: During his campaign, Mr. Trump predicted 4 percent annual growth, and his actions since Election Day point to a single-minded goal of short-term job creation. “Our No. 1 priority is going to be the economy, get back to 3 to 4 percent growth,” Steven Mnuchin, Mr. Trump’s pick to serve as Treasury secretary, said last month.
Analysis: A return to 3-4% growth rates, for an economy as massive as America's, would erase the annual deficits (assuming spending is controlled) and lift millions out of poverty. Of course, our moral, cultural, educational and political problems won't be solved, but we should at least rejoice at the prospect of such long overdue economic expansion.
Appelbaum: Many economists regard such growth predictions as fanciful;...
Analysis: What is so bloody damn "fanciful" about achieving 3-4% growth after a period of massive tax cuts and massive regulatory relief? Privately, Orange Man is probably expecting 6-7%.
1- History shows that 3-4% growth rates were common up until the age of Obongo. But now, the Fed won't allow it?
2- Orange Man: “It is so important to audit The Federal Reserve, and yet Ted Cruz missed the vote on the bill that would allow this to be done.”
Appelbaum: Some think Mr. Trump is more likely to push the economy into recession than to catalyze a new boom.
Analysis: And who exactly are these pessimistic "some?" Answer: The very same Keynesian communists who drove the economy into a ditch by loading it up with too much taxation, borrowing, regulations, lawsuits, money printing and "free trade" schemes.
Appelbaum: Even if Mr. Trump is right, however, the Fed does not want 4 percent growth.
Analysis: Wow! Just wow! That one bears repeating, with some bold emphasis!
Appelbaum: Even if Mr. Trump is right, however, the Fed does not want 4 percent growth.
Analysis: Speechless. Just let that candid admission sink in.
Appelbaum: The central bank’s outlook has become increasingly gloomy. Officials estimated in September that annual growth of 1.8 percent was the maximum sustainable pace,
Analysis: A "maximum" growth rate of 1.8%" is actually a negative growth rate because the inflation numbers, which factor into the GDP formula, are cooked downwards. This can only mean, as it did during the HNB's Great Depression, that Yenta Yellen and the gang of ghouls above and beneath her actually want millions of Americans to continue to struggle in perpetuity.
Sorry my friend. The HNB doesn't want you to have a job. You wouldn't want the economy to "overheat" now, do ya?
Appelbaum: Fed officials also are increasingly convinced that steady job growth has substantially eliminated the post-recession backlog of people seeking work. The unemployment rate fell to 4.6 percent in November, a level the Fed regards as healthy.
Analysis: Any policy-maker or journalist who knowingly spreads the LIE of a 4.6% unemployment rate ought to have their lying tongues ripped out with a set of rusty pliers. The actual rate of unemployment / underemployment remains at about 20%! (long term unemployed + underemployed + phony disability cases --- see shadowstats.com)Moreover, many of the full-time-employed now work for service-sector wages so low that they'd be better off on welfare!
Appelbaum: Stanley Fischer, the Fed’s vice chairman, said last month the Fed might still benefit from fiscal stimulus because it could raise rates more quickly. That would increase the Fed’s ability to respond to future downturns by reducing interest rates.
Translation: The HNB creates the booms, and then "corrects" the "overheating" (inflation) by creating a counter-balancing deflationary bust, which it then "corrects" by creating a counter-balancing boom, which it then "corrects" by creating a counter-balancing bust, which it then .... (yeah, it really is that insane!)
Appelbaum: Mr. Trump has promised to press for rapid changes in government policy, but Congress is not built for speed. .... The impact of new cuts, and any increase in infrastructure spending that Mr. Trump can persuade dubious Republicans to embrace, would be felt mostly in future years.
Analysis: We're afraid that Benny is correct about Orange Man's fellow Republicant's. Some of the same crowd that is already pushing back on the issue of Putin and Russia (McCain, Graham, Rubio et al) can be expected to drag their feet on economic policies as well -- particularly if such obstructionism will gain then a few love letters from the Jew York Slimes or the Washington Compost.
Appelbaum: Mark M. Zandi, chief economist at Moody’s Analytics, predicted that tax cuts, regulatory rollbacks and deficit-financed spending would fuel faster growth in the first half of Mr. Trump’s four-year term. But he said that the Fed’s rate increases,... would gradually begin to take a larger toll. By the end, Mr. Zandi predicted, the American economy would be “unnervingly close” to recession.
Analysis: The HNB will keep the economy in the toilet as the Piranha Press pins the blame for undoing the "Obama recovery" on Orange Man.
Appelbaum: “The Fed and markets in general will ultimately wash out any benefit,” Mr. Zandi said Monday. “The economy under President Trump ultimately will be diminished.”
Analysis: Again, we say, wow! The sons-of-bitches, via their mouthpieces, are actually admitting to us what they intend to do. That's another line worth repition in bold..
Appelbaum: “The Fed and markets in general will ultimately wash out any benefit,” ---- “The economy under President Trump ultimately will be diminished.”
Analysis: If Orange Man is serious about "making America great again," he had better be prepared to pull an "Andrew Jackson" by battling the Central Bank, and killing it. Good luck with that!
Like Andrew the Great Jackson, Trump will have to defeat Rothschild's banker agents if hopes to succeed.
Boobus Americanus 1: I read in the New York Times today that the Fed won't allow Trump to achieve his target growth rate of 4%. The Fed wants 1-2%.
Boobus Americanus 2: It's the smart play by Yellen. Too much growth leads to overheating.
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