Federal Reserve, US Interest Rates - America Needs A Brain

By: Barry_M_Ferguson

Like the scarecrow in the ‘Wizard of Oz’, America needs a brain. Otherwise, it will never get out of the corn field.

The Federal Reserve Bank met today and again left interest rates and the fed funds rate as is. No change. But, they said a rate increase before the year is out is still a very real possibility. Ha, ha, ha, ha, ha, ha, ha, ha, ha, ha, ha!!!!!! These mendacious meddlers of monetary policy are hilarious. Stan Fisher has lost all credibility since he was so adamant a few weeks ago about rate increases. Janet Yellen? A complete joke. The Fed apparently uses the same ‘red line’ that obama uses. Threats and nothing more. They don’t have the guts and they sure don’t have the intellect to know what to do. Of course, we all know if the Fed really wanted to help they would follow the advice of Jim Rodgers. They should all resign immediately and terminate the Fed bank. But that ain’t going to happen.

Sure, there is a chance that the Fed could follow through with their threats. Sure, there is a chance I could win the $400 million dollar power ball lottery without buying a ticket. These blowhards ought to just shut their collective pie holes and get out of our face! They are beginning to look as stupid and feckless as Congress.

The goal of the Fed is to of course enrich their big bankster friends and the best way to do that is to drive asset prices to the moon floating in a ginormous bubble. So, we get the message. There is no down side to stock prices. The Fed is the best ‘put’ option on the planet and they serve this function for free. I suspect the so-called ‘volatility index’ will soon make new lows. Actually, I don’t know why the VIX hasn’t go to zero yet. Why does anyone need a put option? We have the Fed. No, just buy stocks and let the Fed inflate the bubble. It’s all good. Forget about earnings and fundamentals. They no longer matter.

Of course, we all have to turn our brains off and hope we die before the bubble bursts. However, we should know that bubbles burst when the either hit a sharp object or the pressure increases too much outside the bubble. But today, we live in an artificial world. That is, the Fed has removed and banned all sharp objects (the truth) while they have simultaneously found the switch to adjust outside air pressure (promote investor ignorance of all things economic). For instance, the Fed essentially is telling us that the economy is still so weak that it cannot withstand a fed funds rate higher than .5%. Wow! Why again should we all be so confident that stocks will keep rising in this environment? Oh yeah, the Fed is buying assets to push prices up. Okay. Got it. Message received.

Sometimes we have to invent words that are not currently in the accepted lexicon of language. I have a new word for people that are elected to Congress. That word is ‘congresstitute’. That is an amalgamation of the words ‘Congress person’ and ‘prostitute’. That is, people become politicians, get themselves elected to Congress, and then prostitute their vote to the highest bidder. See my previous blog post: http://bmfinvest.blogspot.com/2016_08_01_archive.html.

Caught Congresstitute Warren today grilling Criminal Stumpf, the don of Wells Fargo. Seems like every time we turn on television there is another banker testifying before Congress about criminal activity that their company was involved in that resulted in hundreds of million of dollars in compensation to godfathers of these organizations. Wells Fargo of course has committed more crimes than the mafia and Criminal Stumpf is following Criminal Dimon and Criminal Moynihan to the witness chair.

Congresstitute Warren was tough on the criminal sitting before her. Wells Fargo has been setting up fraudulent accounts (and committing God knows how many other crimes against humanity because that is their business model) without client authorization so more fees and charges could be assessed to unsuspecting dopes that bank with the criminals. And of course, Criminal Stumpf could collect a nice salary.

Okay, we all know that the US has disintegrated into a sleazy cabal of bankers who dominate everything now. Warren, and her fellow congresstitutes should have been hard on the criminal. However, it mystifies me why none of these people can understand the real problem in the country and the world.  It is quite simple.

Criminal Stumpf wouldn’t have been in Washington today if President Barry had been running things. The reason is I believe in free capitalism. It isn’t pretty. It isn’t always fair. Often times capitalism can seem cruel and harsh. But, what no one seems to understand is that capitalism was doing what capitalism does best in 2008 before it was so rudely interrupted.

What was it doing in 2008? The big banks were as usual engaged in criminal activities regarding derivatives and how they were sold to the unsuspecting, simple-minded world. Capitalism spotted the criminal activity and correctly assessed the real value of these big banks at zero. Day after day, bank stocks continued to slide towards zero. They were all nearly bankrupt and out of business until capitalism was interrupted by people like Warren.

Elizabeth Warren headed a congressional committee that oversaw the TARP program that largely bailed out the banks. She of course was aided by and duped by the Federal Reserve Bank to that the criminals made out like, well, criminals.

Wells Fargo stock had dipped to something like $7 dollars per share in early 2009. BofA and JP Morgan and all the other criminal enterprises were also experiencing near zero stock prices. Why did Ms. Warren stop capitalism?

Because politicians don’t trust capitalism. Why? Because capitalism calls ‘BS’ on anyone committing fraud. That would include the Federal Government going now $20 trillion in debt in large part to save criminal banks like Wells Fargo from bankruptcy. Capitalism does not play favorites.

Now Ms. Warren rakes Criminal Stumpf over the coals after she herself turned the predator lose on the american public. It’s like she loaded a 357-magnum, handed it Criminal Stumpf, and now chastises him for shooting people. Why didn’t she let the criminal go bankrupt?

Sure, the whole economy would have faltered had the big banks failed.

Or would they?

I doubt seriously that the economy would have faltered much. The US government always uses fear against the american public to bully the ignorant masses into submission. Americans are truly a perpetually scared bunch of people. We must remember that the vast majority of banks did not play the derivatives game. Only the big ones. Those who resisted the derivative scam would have mopped up the banking business as criminals like Stump cleaned out his desk and went on to a career mowing grass.

It is government intervention, and central banker intervention that subdues capitalism thus leading to income disparity and a stale economy. Some argue that capitalism is the root of the problem. I’m sure readers have heard talking coconuts like Bernie Sanders rail against economic freedom. What everyone must realize is we haven’t been allowed to experience true and free capitalism for decades.

I hate to beat a dead horse but the problems we see today in the economies of the world go back to former Fed Chair Greenspan and his interventionist mentality. And, blame must be shared by those who were stupid enough to listen to him.

So, while Ms. Warren may have enjoyed grilling Criminal Stumpf, she too should take the blame for the very existence of Wells Fargo as a thieving institution.

Feel free to get a brain cell.

Barry M. Ferguson, RFC
President, BMF Investments, Inc.
Primary Tel: 704.563.2960
Other Tel: 866.264.4980
Industry: Investment Advisory
barry@bmfinvest.com
www.bmfinvest.com
www.bmfinvest.blogspot.com

Barry M. Ferguson, RFC is President and founder of BMF Investments, Inc. - a fee-based Investment Advisor in Charlotte, NC. He manages several different portfolios that are designed to be market driven and actively managed. Barry shares his unique perspective through his irreverent and very popular newsletter, Barry’s Bulls, authored the book, Navigating the Mind Fields of Investing Money, lectures on investing, and contributes investment articles to various professional publications. He is a member of the International Association of Registered Financial Consultants, the International Speakers Network, and was presented with the prestigious Cato Award for Distinguished Journalism in the Field of Financial Services in 2009.

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