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Monday, July 28, 2014

Don't Be Fooled by the Fed's Facade - Bloomberg View

Don't Be Fooled by the Fed's Facade - Bloomberg View

Look for the Federal Reserve to abide by this rule when it meets tomorrow and Wednesday -- and the European Central Bank to do the same in early August. Janet Yellen and her colleagues on the policy-making Federal Open Market Committee will maintain their well-telegraphed, gradualist approach, reducing monthly bond purchases by another $10 billion, signaling no urgency in raising interest rates, and reminding us of the importance of looking beyond the unemployment rate to understand what's happening in the job market.
Still, behind this comforting “steady as she goes” facade, Fed officials will be dealing with five complex and inter-related issues, the resolution of which will be months in the making:

 The Fed is not "autonomous". It is the great enabler of the Welfare State & Warfare State. We don't need that type of "effectiveness".

It is the destroyer of Liberty.

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