This past week the Federal Reserve and the Bank of Japan announced new policies that signal their continuing desperation with their failing central bank policies. Their answer to failing central bank policies continues to be ‘more of the same’, i.e. still more free money injections. The BoJ now promises ‘QE for ever’ pegged to the 10 year bond rate fixed at zero interest, while the Fed creates a fictitious ‘neutral federal funds rate’ as the benchmark justifying keeping free money flowing to bankers, shadow banks, and big investors. Listen to my analysis of the recent decisions by the BoJ and the Fed on my radio show this past friday, 9-23.
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SHOW ANNOUNCEMENT
Today’s show examines and discusses the past week’s major decisions by the Federal Reserve and the Bank of Japan, and how they represent growing failure and desperation of central bank monetary policy globally. Bank of Japan promises to keep bond rates at zero for another ten years and to continue to inject money until inflation exceeds 2%. The Federal Reserve forecasts US growth rates through 2019 at a mere 1.9% GDP, but predicts unemployment rates will fall to 4.5% even as it raises interest rates (staring December) from 0.5% to 2.6%. Jack discusses how this contradiction makes no sense and why a US recession is on the agenda in 2017-18 that will blow all those Fed projections. Meanwhile, the Fed creates another fictitious ‘target’—by aligning nominal interest rates with an unknown ‘neutral rate’. Monetary policy is broken and central banks are desperately searching for cover.
(Watch for my coming commentary and analyses of the US elections in the run up to November voting. This coming friday, September 30, the Alternative Visions show is dedicated to analyzing the first presidential debate. Read on this blog in coming weeks my series of articles on the election from Telesur and other print publications–including ‘Hillary’s Ghosts’, ‘Taming Trump’, and assessments of the three presidential debates.)
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