10 Reasons Why The Unemployment Numbers Are A Massive Lie- Brain Dead thinking

[singular_me]

the fed reserve said it would stop its QEs when the unemployment falls below 6.5%... 5.5% meaning that we are in for a credit crunch ???
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10th March 2015

On Friday, we learned that the official “unemployment rate” has fallen to 5.5 percent. Since an unemployment rate of 5 percent is considered to be “full employment” by many economists, many in the mainstream media took this as a sign that the U.S. economy has almost fully “recovered” since the last recession.

In fact, according to the Wall Street Journal, some Federal Reserve officials believe that “the U.S. economy is already at full employment“. But how can this possibly be? It certainly does not square with reality. Personally, I know people that have been struggling with unemployment for years and that still cannot find a decent job. And I get emails from readers all the time that are heartbroken because they are suffering through extended periods of unemployment.

So what in the world is going on? How can the government be telling us that we are nearly at “full employment” when so many people can’t find work? Could it be possible that the government numbers are misleading?

It is my contention that the official “unemployment rate” has become so politicized and so manipulated that it is essentially meaningless at this point. The following are 10 reasons why…

#1 Since February 2008, the size of the U.S. population has grown by 16.8 million people, but the number of full-time jobs has actually decreased by 140,000.

#2 The percentage of working age Americans that have a job right now is still about the same as it was during the depths of the last recession. Posted below is a chart that shows how the employment-population ratio has changed since the beginning of the decade. Does this look like a full-blown “employment recovery” to you?…


#3 The primary reason for the decline in the official “unemployment rate” is the fact that the government now considers millions upon millions of long-term unemployed workers to “no longer be in the labor force”. Just check out the following numbers…

more
http://theeconomiccollapseblog.com/archives/nearly-full-employment-10-reasons-unemployment-numbers-massive-lie

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Negative Interest Rates – Brain-dead Thinking that Will Implode the World

The entire problem we have with this proposal of negative interest rates first put forth by Larry Summers, is that this is another means for bankers to make a fortune through theoretical stimulus that will never reach the public. This crazy idea will have a DEFLATIONARY drag on the entire economy and threaten to tear the entire system apart for it is presented on behalf of a single group – the money center banks..

Now we look at government. The deficits have not stopped. They all borrow more every year. The crisis hits because they are now addicted to low rates. What happens when rates rise? Central Banks can try to manipulate short-term rates, but they cannot manipulate long-term. That is why the Fed was buying back 30 year bonds trying to create a shortage of long-term so in theory others would lend long-term. That totally failed as everything the Fed has done. Why? Because they act ONLY indirectly and assume the banks will act as they intend. The banks have not lowered car loans or credit card fees and rates in proportion to the decline in rates at the Fed. They have pocketed the difference.

Central Banks act ONLY indirectly, and not directly. They count on banks lending. In the USA, the banks did not lend and instead they went to the Fed and demanded they be paid interest on excess reserves. The Fed complied and pays them 0.25% for excess reserves. The banks can pay ZERO and make money without risk and use the balance for trading.

This entire exercise is brain-dead and it will not end very nicely. All they are doing is wiping out pension funds and the elderly. All those years of advice save for retirement are proven to be total bullshit when banks can convince governments that people should be paying them for the privilege to trade wildly with their money. What a deal. Thank you Larry.

more
http://armstrongeconomics.com/2015/03/10/negative-interest-rates-brain-dead-thinking-that-will-implode-the-world/

[mick silver]

don't you trust your government . they would not make up numbers . I just hope you get in line and start thinking clearer before you have to go to a fema camp .............................................. one big matrix all around us all and getting worst .... Just One reason to get it now so you can hold it when you need it

[singular_me]

SNB considering higher negative interest rates: Schweiz am Sonntag

ZURICH Sun Mar 8, 2015

(Reuters) - The Swiss National Bank, battling a rise in the country's currency, could push interest rates further into negative territory if the franc moves in the "wrong direction", a Swiss newspaper reported on Sunday, citing sources close to the bank.

Citing sources close to the SNB, Schweiz am Sonntag said "a rate of minus 1.5 percent is being considered".

A spokeswoman for the SNB declined to comment on the story.

In a bid to discourage investors from piling into the safe-haven Swiss franc, the SNB said in January it would charge even higher negative interest rates of minus 0.75 percent on some of the banks who deposit funds with it.

Negative rates effectively mean banks are paying the central bank to hold their money.

This move on Jan. 15 was announced alongside the SNB's abandonment of its cap of 1.20 francs to the euro, which sent the value of the franc soaring.

Switzerland's currency could also face renewed upward pressure when the European Central Bank begins its new government bond-buying program on March 9.

full
http://www.reuters.com/article/2015/03/08/us-swiss-snb-idUSKBN0M40E820150308

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Negative Interest Rates Yield Positive Results—So Far
Challenging economic orthodoxy, central banks cut rates below zero without yet creating new problems

March 4, 2015 12:17 p.m. ET
60 COMMENTS

Interest rates can’t go below zero—or so says a longstanding rule of economics.

Savers would sooner hold cash, goes the logic, than lose money leaving it in the bank. Economists call this presumed floor the “zero bound.” It’s why many central banks, having cut rates to zero, have tried to revive growth with more-exotic tools, such as massive purchases of government bonds.

But as with so many other rules in recent years, the zero bound is being rethought as central banks push rates into negative territory to revive their slowing economies. The big question is whether this new monetary tool will be enough to resuscitate spending and push inflation back up in the many parts of the world where it’s sagging.

But as with so many other rules in recent years, the zero bound is being rethought as central banks push rates into negative territory to revive their slowing economies. The big question is whether this new monetary tool will be enough to resuscitate spending and push inflation back up in the many parts of the world where it’s sagging.

Sweden led the way below zero for a brief time in 2009 and 2010, followed by Denmark from 2012 to 2014. Last year, the European Central Bank introduced a negative interest rate. Largely in response, Switzerland and Denmark have since pushed a key policy rate to minus 0.75% and Sweden to minus 0.85%, unprecedented in modern times.

Individual savers have mostly been spared, but big customers aren’t so lucky: Some German banks are charging for large deposits, and in the U.S., J.P. Morgan Chase will do the same, though the Federal Reserve has stayed on the positive side of zero and looks set to raise rates this year. About 16% of the world’s government bonds now sport negative yields, meaning investors are paying to lend to those governments.

This is a potential game-changer for central banks. Normally, they stimulate spending by lowering the real interest rate, that is, the nominal interest rate minus inflation. With inflation now close to zero or lower in many countries, negative nominal rates make possible more negative real rates.

Interest rates are normally positive because it suits both savers and borrowers. It provides households with an incentive to save for tomorrow rather than spend their money today. Companies, meanwhile, are willing to pay to borrow because they plow the money into projects that promise higher returns.

These relationships, however, are not immutable. Worry over the future can drive people and companies to stash money away even if they receive nothing in return. Companies can have such low expectations about the viability of new projects that only zero or negative rates can entice them to borrow and expand. That seems to be the case now. Central banks have held real rates in negative territory since 2008 because of the moribund investment environment and very low inflation.

Historically, however, central banks have almost never pushed rates below zero. First, it wasn’t needed. Second, it might disrupt the financial system; For example, money-market mutual funds would close up shop if they couldn’t promise investors a positive return. Third, it could push depositors to simply take their money out as cash.

Europe’s experience has eased some of those worries. The Danish central bank found that after rates went negative in 2012, the money market continued to function normally, and there was no surge in demand for large-denomination krone notes. Rates today in Sweden, Denmark and Switzerland are more negative than they were in Denmark in 2012, yet none has yet seen a surge in currency demand.
http://www.wsj.com/articles/negative-interest-rates-yield-positive-resultsso-far-1425489466

[mick silver]

With so much excess cash in the system, the recovery will gradually speed up as 2008-2009 recedes into the past. Then comes something that will look like a boom, and then come accelerating rates of price inflation and hard times again.Terry Coxon

[Ponce]

They are want to hide the sun by covering your eyes with a tissue paper........but the sun is burning the tissue paper......the elephant is in the living room and it is staying for good.....what to do?, make a bonfire in the living room roast the elephant AND EAT IT. When they give you lemons make lemonade.

V