Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Harry Dent’s Gold Prediction Invalidated
By: Przemyslaw Radomski, CFA

SELLING OUT OF PRECIOUS METALS AND BUYING BITCOIN…. Very Bad Idea
By: Steve St. Angelo

The Bitcoin Bubble Explained in 4 Charts
By: Jake Weber

VXX Sends an Awesome Message from Another Galaxy
By: Rick Ackerman

Geopolitical Risk Highest “In Four Decades” – Gold Demand in Germany and Globally to Remain Robust
By: GoldCore

Asian Metals Market Update: November-22-2017
By: Chintan Karnani, Insignia Consultants

Gold Seeker Closing Report: Gold and Silver Gain With Stocks
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 11 21 2017
By: Ira Epstein

Bitcoin, Bail Ins And Bullion
By: Mike Maloney

Tactics For The Gold Bull Era
By: Stewart Thomson

 
Search

GoldSeek Web

 
The Fed Has Failed


 -- Published: Tuesday, 1 July 2014 | Print  | Disqus 

By Graham Summers

 

The Fed has long believed that money printing or credit creation equals growth.

 

In an effort to prove this (and to prop up the insolvent big banks), the Fed has embarked on QE 1, QE 2, QE 3, QE 4, Operation Twist 1 and 2, and kept interest rates at zero for over five years.

 

All told, the Fed has spent nearly  $4 trillion.  To put this number into perspective, it comes down to a little over $12,000 for every man woman and child in the US.

 

The end result has been the single weakest recovery in over 80 years. Adjusted for real inflation, we’ve essentially flat-lined.

 

And now, we have a clear illustration that the Fed’s theories are totally false.

 

Below is a chart of Loans and Leases in Bank Credit for All Commercial Banks in the US. Note how credit growth shot up at the beginning of 2014. All told, we’ve seen over $200 billion in credit growth in the first half of 2014.

 

 

 

Despite this growth, GDP growth has been an absolute disaster. Officially the GDP shrank at 2.9% in the first quarter of 2014.

 

The fact that the economy shrank like this, DESPITE all of the Fed’s interventions over the last five years AND the credit growth in the first quarter of 2014 is proof point blank that the Fed’s economic models are wrong.

 

The Fed is now tapering QE, but one could well make the argument that the Fed has wasted trillions of Dollars. There is no evidence from history that QE creates economic growth (see Japan and the UK). Moreover, the ‘70s debunked the Phillips Curve (the notion that high inflation cannot coincide with high unemployment).

 

In simple terms, the Fed has failed.

 

This concludes this article. If you’re looking for the means of protecting your portfolio from the coming collapse, you can pick up a FREE investment report titled Protect Your Portfolio at http://phoenixcapitalmarketing.com/special-reports.html.

 

This report outlines a number of strategies you can implement to prepare yourself and your loved ones from the coming market carnage.

 

Best Regards

 

Phoenix Capital Research

 


| Digg This Article
 -- Published: Tuesday, 1 July 2014 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.