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

Gold Seeker Closing Report: Gold and Silver Gain About 1%
By: Chris Mullen, Gold Seeker Report

Northern Vertex Files Preliminary Economic Assessment Report for the Moss Gold Mine in NW Arizona
By: Northern Vertex Mining Corp.

Does The CoT Structure Prohibit A Rally?
By: Craig Hemke

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

 
Search

GoldSeek Web

 
The Fed’s Track Record: $390K Spent Per Job Created


 -- Published: Monday, 25 August 2014 | Print  | Disqus 

By Graham Summers

 

The Fed likes to claim that its policies are aimed at helping Main Street. Ben Bernanke began this argument when he was still Fed Chairman. Janet Yellen has since taken it a step further claiming that she comes from an “intellectual tradition” that it is important to use “public policy” to “make the world a better place.”

 

Anyone who’s spent even two minutes reflecting on the state of affairs in the last five years knows this is bunk. However, for the sake of the argument, let’s take the Fed at its word: that it does indeed care about Main Street.

 

If this is indeed true, then the Fed’s efforts have been an abysmal failure. The Fed’s balance sheet has expanded over $2.4 trillion since the Great Recession allegedly ended.

 

For the sake of argument, let’s assume that ALL of the money involved in the Fed’s balance sheet expansion during this period went towards creating jobs in the US economy.

 

Indeed, let’s take it a step further and say that the Fed is directly responsible for every single job created since June 2009 when it continued printing money by the billions to help the “recovery.”

 

We realize that we’re ignoring population growth, folks who dropped out of the jobs market, and a slew of other factors in this analysis. But the point of this exercise is to grant any and all issues in favor of the Fed.

 

The reason we’re doing this is because the results are terrible enough even under circumstances in which every issue is decided in the Fed’s favor. One can only imagine how awful the results would look if one were to include these other issues which would raise the amount of money spent per job created.

 

Having said that, consider the following…

 

·         The US recession allegedly ended in June 2009. At that time, 140,196,000 people were employed in the US and the Fed’s balance sheet was roughly $2 trillion.

 

·         As of July 2014, 146,352,000 Americans were employed and the Fed’s balance sheet was $4.4 trillion.

 

So, based on our assumptions (that ALL of the Fed’s money went towards the real economy and that the Fed is responsible for every job created since June 2009 when the recession ended), this means the Fed spent $2.4 trillion to create 6,156,000 jobs.

 

That’s $389,863 spent PER JOB CREATED.

 

Now, the odds that the 6.1 million jobs created since June 2009 pay anywhere NEAR this amount in salary is next to zero. And bear in mind, our analysis is based on key assumptions ALL of which are in favor of the Fed.

 

The reality is that the Fed has spent vast amounts of money and has very little to show for it. Even if you give the Fed the benefit of the doubt that all of its money has gone into the real economy to create jobs, this is a colossal waste of money.

 

The Fed’s efforts, if they were meant to help Main Street, have been a colossal failure. If they were not intended to help Main Street, then the Fed is lying.

 

Neither of those are positive qualities.

 

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: Monday, 25 August 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.