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Forum Post: Is the FED trying to "create jobs" or protecting investors by supporting artificial prices indexes?

Posted 10 years ago on Sept. 7, 2012, 3:42 p.m. EST by richardkentgates (3269)
This content is user submitted and not an official statement

The FED looks like they are going to once again rally the markets and stabilize stock prices with another round of Quantitative Easing which is a disincentive for the downward adjustment of prices that usually takes place during periods low demand. Not to mention devaluing of the dollar by engaging in these fresh cash give-aways. Giving WallSt more money has no track record of creating jobs.

Now the news

Jobs report likely to force Bernanke's hand


A weak August jobs report signaled hiring continues to slog along at a snail's pace, giving the Federal Reserve even more reason to enact more stimulative measures -- possibly as soon as next week.

The economy added just 96,000 jobs in August. And even though the unemployment rate dipped to 8.1% from 8.3% in July, any number above 8% is still uncomfortably high for the Fed. (Inflation, on the other hand, is comfortably below the Fed's target for 2% a year.)

In a speech in Jackson Hole, Wyo. last week, Ben Bernanke characterized the weak job market as a "grave concern" causing "enormous suffering and waste of human talent" -- one of the strongest statements yet from the Fed chairman.

Bernanke has defended the Fed's efforts so far, including two rounds of large-scale asset purchases known as quantitative easing. Options for more easing could include a third round of asset purchases, nicknamed QE3, or extended guidance on low interest rates. The Fed currently forecasts interest rates will remain "exceptionally low" until late 2014.

Earlier this year, the central bank had pledged to provide more stimulus only if the economy weakened further. Recently that language changed to say the Fed "will act" if the economy merely stays the same.

For the Fed's outlook to change, it would have needed to see a major, sudden improvement – say 300,000 jobs in one month, said Alan Blinder, a Princeton University economist and former Federal Reserve governor. The economy needs about 150,000 jobs a month just to keep up with population growth.

That didn't happen. Making matters worse, the job gains for June and July were revised lower. The Fed's policy-making team meets for two days next week, and Bernanke will discuss their latest decision in a press conference on Thursday afternoon.

Several economists and market experts, including bond king Bill Gross of Pimco, were quick to chime in on Twitter about how the jobs numbers make some move by the Fed far more likely next week.



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[-] 2 points by richardkentgates (3269) 10 years ago

Funny. No supporters of taking power away from the FED here on this thread by certain users. Then a thread posted showing a Dem saying the same thing, those users missing from this thread suddenly supports the idea. Very "on message". WTF is this. Who is actually running the show here? It certainly isn't Occupy and thats for damn sure.

[-] 1 points by TheRoot (305) from New York, NY 10 years ago

Bernanke is oiling the machinery that the 1% hired him to maintain. In his speech in Jackson Hole, Bernanke said the weak job market is a "grave concern" causing "enormous suffering and waste of human talent". What you didn't hear him say is that without a stronger job market, you and I won't be able to pay the elite all the interest on all the phony debt that they're creating. The elite are concerned that so many of their slaves aren't productive. That "waste of human talent" will cause the elite to suffer. They hired Bernanke to fix it such that you and I can pay them back and continue paying them the rest of our lives. Bernanke's job depends on it.

But wait there's more. This all didn't come about over night. The great, great grand dads of the elite foisted it on society long ago. All of them want you healthy enough and productive enough to maintain their wealth and their children's wealth too, on and on and on. For details on how the 1% have and continue to loot and enslave us, take a look. http://vimeo.com/3722256

[-] 1 points by richardkentgates (3269) 10 years ago

Greed does not need such a dark notions as slaves. Greed is empowered by the inability to see past one's nose.

Yeah, pretty familiar with the FED's beginning.

[-] 0 points by TheRoot (305) from New York, NY 10 years ago

Not sure what you mean by inability to see past one's nose because these guys are looking into the next several generations. Btw, I liked Dr Park's presentation because it compares and contrasts honest money to dishonest money from before the FED until today. Let me know what you think of his presentation, (if you have the time.)

[-] 0 points by richardkentgates (3269) 10 years ago

Looking at lines on a chart is not seeing past one's nose. I'm not a gold standard supporter. There is nothing wrong with out current system aside from the FED not being run by elected officials. For it to be run by elected officials, it needs to be nationalized. From there, some ethics reform mandated on WallSt by the federal government. Monetary regulation alone is not enough.

[-] 0 points by TheRoot (305) from New York, NY 10 years ago

The central bank in the US starts the counterfeiting process. commercial banks continue it. Nationalizing their system to Government control isn't going to change that because dishonesty is dishonesty no matter what. Commodity money is honest money.

[-] 1 points by bensdad (8977) 10 years ago

The FED is trying to do doing what the Rs in congress should be doing.
stimulating the economy
Rs s/b taxing the 1% to employ the 99%

[-] 0 points by hchc (3297) from Tampa, FL 10 years ago

Wow. You have reached a new level here with this one.

I'm not sure what to call it though.

[-] 0 points by richardkentgates (3269) 10 years ago

The money being printed by the FED is going str8 to banks. It does not go to infrastructure or any other employment project. It is simply to prop up unprofitable institutions.

[-] 2 points by bensdad (8977) 10 years ago

banks are not profitable?
they do get the fed money for almost nothing and lend it out at a profit
I believe this is the RESULT of the only way we can stimulate the economy if we do not tax and spend
I do NOT believe it is the GOAL
We need an "American bank" to do what we need - bypass the banksters
as long as we allow the banks to buy congress this will never happen

↓↓↓↓↓↓↓↓↓↓↓↓↓ FIRST STEP ↓↓↓↓↓↓↓↓↓↓↓↓↓↓


[-] 1 points by richardkentgates (3269) 10 years ago

Yeah, I think a national public bank would be good.

[-] -1 points by TrevorMnemonic (5827) 10 years ago

Yeah giving a trillion dollars to Bank of America was a real stimulus.

You should take some advice from Alan Grayson and Dennis Kucinich when it comes to the Fed.

The federal reserve props up the banks we're protesting.

How does inflation help you Bensdad?

We keep getting the same amount of dollars that are devaluing... while they keep getting more dollars.

The Fed creates money from nothing.. gives it to the banks... the banks keep it on deposit... gain interest... pay FAT CEO bonuses... all while America is falling apart.

Our monetary policy is based on debt. Simply put... It's stupid.

[-] 2 points by bensdad (8977) 10 years ago

We need more money to create demand to create more jobs
We can tax the rich & the corps OR we can print it
We should have an American bank to bypass the banksters
sort of like we stopped loaning money to students by using banks

[-] 1 points by TrevorMnemonic (5827) 10 years ago

Please tell me more about how a monetary policy that gives unlimited resources to the banks and nothing to the people is the solution

I am interested in this. I've heard it's been working this entire time.


Yeah tax the rich... I agree there. But pass the NEED Act and use monetary policy to create jobs.

Why my previous comment has downvotes is beyond shocking on an OWS forum.

Do we have a bunch of Ben Bernanke fans in here? The same guy Bush appointed. The Federal Reserve gives trillions of dollars to the banks OWS is protesting. The same banks that buy the government.

[-] 1 points by bensdad (8977) 10 years ago

I do NOT want to give the money to "the" banks
I want a bank owned by America . to loan money to the people who need it & to finance infrastructure spending. Obama shut out the banks from student loans and loaned the money directly. Do the same here

I don't know the numbers, but eliminate the cap gains / dividend preference and create a corporate AMT for ANY company that sells anything in the US

[-] 1 points by TrevorMnemonic (5827) 10 years ago

That is exactly what the NEED Act is. HR 2990

You should check it out.


[-] 0 points by VQkag2 (16478) 10 years ago

It's a disgusting policy. Is the admin controlling the Fed policy.? I thought that was seperate.?

The Fed should make a couple of trillion available to the people to refinance at the same ratethey givethe banks.

See if the banks like that.

[-] 1 points by TrevorMnemonic (5827) 10 years ago

it is separate because the US congress has been corrupted by banksters for YEARS.

Presidents appoints chairman. But ultimately who the money is given to is solely up to the Fed... until Congress grows ethical balls and reforms monetary policy and takes it away from the banks and gives it to the people. Kucinich has been preaching to use monetary policy to build cities and create jobs for years. Sounds better than giving it all to banks so they can run the corrupt show.

[-] 1 points by VQkag2 (16478) 10 years ago

So I thought the Fed was not supposed to be controlled by the Admin but of course secretly is.

And how is congress involved?. They certainly are also not "supposed" to control the Fed and I never suspected they did secretly. I guess they created the Fed but what exactly are you suggesting.?

[-] 1 points by TrevorMnemonic (5827) 10 years ago

the banking act of 1913 took away control over monetary policy and gave it to the fed. Congress can take the power back as soon as they vote to do so. The constitution grants monetary authority to congress.

Read HR 2990... the NEED Act. Using monetary policy to create jobs, build cities, and help fund true universal healthcare.

Dennis Kucinich - http://www.youtube.com/watch?v=0CaYuss28HQ

[-] 1 points by VQkag2 (16478) 10 years ago

Interesting do you know if there was a vote help in the house? Any vote for it?

Seems like the members might find it too radical and not even allow a vote.

[-] 1 points by TrevorMnemonic (5827) 10 years ago

it's stuck at the committee level

hasn't been brought up for a vote

[-] 1 points by VQkag2 (16478) 10 years ago

yeah that is not surprising. Maybe if enough of the people rise up and demand it. Maybe after the govt has been taken back from the 1% plutocrats.

I don't see these corrupt pols even allowing a vote. And Kucinich is retiring.

Any co sponsers?

[-] 1 points by TrevorMnemonic (5827) 10 years ago

not retiring.. he got redistricted and had his base stolen from him.

I'm not sure about sponsors. he is the only one listed on the govtrack site though

[-] 1 points by VQkag2 (16478) 10 years ago


[-] 0 points by VQkag2 (16478) 10 years ago


[-] -1 points by richardkentgates (3269) 10 years ago

Yeah, pretty much.

[-] 0 points by poindexter (8) 10 years ago

It's all about getting Obama reelected, the nightmare starts in 2013. Millions thrown off welfare programs, austerity, austerity, austerity. The cash will disappear, inflation will come, food prices today are just a hint of what is coming.

This wild printing spree is all about a second term for Obama. Better start stocking up on canned goods.

[-] -1 points by hchc (3297) from Tampa, FL 10 years ago

I love how the jobs number was less than population growth and yet the "rate" went from 8.3 to 8.1%.

Just another fuckin lie outta DC.

[-] 0 points by richardkentgates (3269) 10 years ago

Politics as usual

[-] 0 points by VQkag2 (16478) 10 years ago

It's the most dishonest number they spew at us. But I guess the election is upon us and they are preparing to drop it below 8% next month.

That's how it's done right?

Sneaky bastards. They ain't kiddin me.

[-] 0 points by marvelpym (-184) 10 years ago

John Crudele of the Post always writes about the tricks the Labor Dept uses to fudge these numbers (in all administrations, not just this one) and it's scary stuff. Here's one example.