You know the jig is up with the economy when the Fed admits they were wrong about inflation and jobs
Despite employing hundreds of P.H.D. economists as well as having access to the very best data, the Federal Reserve has proven itself to have been little more than a propaganda tool, and a mechanism by which the remaining wealth of the people has been funneled into the hands of a few.¬† And with the central bank’s credibility having been destroyed through the ignorance and outright lies of its former and current Chairman, it seems now the party must be over as all of a sudden Janet Yellen is admitting that they were wrong all along with their models and forecasts.
Janet Yellen this week cast doubt on the Fed’s announced plan to continue Fed rate hikes and reverse its years of “unconventional” monetary policy.
‚ÄúMy colleagues and I may have misjudged the strength of the labor market,‚ÄĚ Yellen announced on Tuesday, adding that they’d also misjudged “the degree to which longer-run inflation expectations are consistent with our inflation objective, or even the fundamental forces driving inflation.”
Yellen also “noted¬†that the labor market, which historically has been closely linked to inflation, may not be as tight as the low unemployment rate suggests.”
In other words, Fed economists are concerned by the fact they’ve been unable to achieve their arbitrary 2% price-inflation objective, which they believe indicates a healthy level of economic activity. Moreover, they’re concerned the low unemployment rate ‚ÄĒ which can be deceptive since it can show a “tight” market even in the presence of unemployed discouraged workers and involuntary part-timers ‚ÄĒ is not telling the whole story.
The end result is that the Fed is not at all sure that it can continue with its promised path of raising the target interest rate as has been the “plan” for the past several years.¬† –¬†Mises
Understandably, Janet Yellen and her former boss Ben Bernanke are the same central bankers who admitted they didn’t and could’t see the oncoming financial crisis of 2008, or that their policies had created bubbles that were obvious in light of the Dot Com one just eight years prior.¬† So this leaves the public with just one conclusion to make, and that is that the Fed’s real game all along has been to protect and enrich the 1%, knowing that there was little they could do to save the general economy and affect real jobs or wages.
When a banker finally ‘gets religion’ it either means they have been arrested for something, or they recognize that the system is about to implode.¬† And since it is unlikely Chairman Yellen will ever have to answer in a court of law for her lies and deceit, that leaves only the realization that the markets and economy are headed off a cliff, and now is the time for a mea culpa just months before Yellen is expected to be replaced at the head of the Fed.
Kenneth Schortgen Jr¬†is¬†a writer for¬†The Daily Economist,¬†Secretsofthefed.com,¬†Roguemoney.net, and¬†Viral Liberty, and hosts¬†the popular¬†youtube podcast¬†on Mondays, Wednesdays and Fridays.¬†Ken can also¬†be heard Wednesday afternoons giving an weekly economic report on the¬†Angel Clark radio show.