Bank Robber extraordinaire, Fed Vice Chair Stanley Fischer, admits to plundering main street.
We ought to redefine the term “bank robber” to refer not to what is robbed, but to officials in the crime syndicate that is robbing us all. At the center of that syndicate is the Federal Reserve. Recently, Federal Vice Chair Stanley Fischer spoke in favor of negative interest rates. His words reveal that he knows full well that he is plundering America for the sake of a minority.
According to Bloomberg (emphasis added),
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While the Fed isn’t “planning to do anything in that direction,” the central banks using them “basically think they’re quite successful,” Fischer said Tuesday on Bloomberg Television with Tom Keene in Washington. He reiterated that Fed rate increases will be data dependent without giving a specific timeline.
Fischer’s comments on negative rates come days after Chair Janet Yellen left the subject out of a speech on the future U.S. monetary policy toolkit, suggesting that they’re not an option that’s up for discussion at the Fed. Fischer is a former Bank of Israel governor and a prominent figure in international economics, so his remarks constitute an important acceptance that the unconventional and often controversial policy might be working in other jurisdictions.
“We’re in a world where they seem to work,” Fischer said, noting that while negative rates are “difficult to deal with” for savers, they typically “go along with quite decent equity prices.”
Ask the cashier next time your buying groceries how much he or she watches the price of equities.
They don’t care.
Furthermore, a world with inflated equity prices is highly unstable. The suckers shoveling money into a 401(k) are probably going to lose a lot. Only those who can deal with high levels of risk really profit (and they profit a great deal).
But everyone who might consider putting away a little money in a savings account is robbed. Everyone who has a pension that depends on low risk investments is robbed. Everyone living on a fixed income is robbed. Everyone who has to buy groceries and other items every month as their money becomes worth less and prices go up is robbed.
They are robbed by the Fed’s bank robbers.
Negative interest rates would be another layer of robbery as the banks would basically “tax” depositors. This is usually accompanied by laws that punish people for “hoarding” cash. But even artificially low interest rates have the effect of draining wealth from the middle class and delivering in to the one percent.
Stanley Fischer’s job is to rob savers and give money to people trading equities and he openly admits it. They do work! They effectively rob the working many for the sake of the plundering few.
This is what has been killing the middle class for over a generation.
The Delusion of Data
Fischer’s claim to make “data dependent” decisions is a lying scam. Listen to him in an earlier interview vacillate between claiming to be driven by data and admitting there is enough confusion in the data to justify anything.
He claims the Fed doesn’t make decisions by coin toss. I believe him. He does whatever will protect the interests of the people he works for.