{"id":10755,"date":"2015-08-05T06:41:16","date_gmt":"2015-08-05T11:41:16","guid":{"rendered":"http:\/\/olduvai.ca\/?p=10755"},"modified":"2015-08-05T06:41:16","modified_gmt":"2015-08-05T11:41:16","slug":"fed-lunacy-is-to-blame-for-the-coming-crash","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=10755","title":{"rendered":"FED LUNACY IS TO BLAME FOR THE COMING CRASH"},"content":{"rendered":"

FED LUNACY IS TO BLAME FOR THE COMING CRASH<\/a><\/h3>\n

This week John Hussman\u2019s pondering about the state of our markets is as clear and concise as it\u2019s ever been. He starts off by describing the difference between an economy operating at a low level versus a high level. He\u2019s essentially describing a 2% GDP economy versus a 4% GDP economy. We have been stuck in a low level economy since 2008. And there is one primary culprit for the suffering of millions \u2013 The Federal Reserve and their Wall Street Bank owners. They are the reason incomes are stagnant, the labor participation rate is at 40 year lows, savers can only earn .25% on their savings, and consumers have been forced further into debt to make ends meet. Meanwhile, corporate America and the Wall Street banks are siphoning off record profits, paying obscene pay packages to their executives, buying off the politicians in Washington to pass legislation (TPP) designed to enrich them further, and arrogantly telling the peasants to work harder.<\/p>\n

In economics, we often describe \u201cequilibrium\u201d as a condition where demand is equal to supply. Textbooks usually depict this as a single point where a demand curve and a supply curve intersect, and all is right with the world.<\/em><\/p>\n

In reality, we know that economies often face a whole range of possible equilibria. One can imagine \u201clow level\u201d equilibria where producers are idle, jobs are scarce, incomes stagnate, consumers struggle or go into debt to make ends meet, and the economy sits in a state of depression \u2013 which is often the case in developing countries. One can also imagine \u201chigh level\u201d equilibria where producers generate desirable goods and services, jobs are plentiful, and household income is sufficient to demand all of that output.<\/em><\/p>\n

<\/i>…click on the above link to read the rest of the article…<\/p>\n

 <\/p>\n

\u00a0<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"

FED LUNACY IS TO BLAME FOR THE COMING CRASH This week John Hussman\u2019s pondering about the state of our markets is as clear and concise as it\u2019s ever been. He starts off by describing the difference between an economy operating at a low level versus a high level. He\u2019s essentially describing a 2% GDP economy […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[8,1870,88,173,303,3286,7863,7619,7864,7865,661,668,4915,753,5856,1939,7866],"class_list":["post-10755","post","type-post","status-publish","format-standard","hentry","category-economics","tag-8","tag-bill-gross","tag-bonds","tag-crash","tag-fed","tag-investment","tag-jim-grant","tag-john-hussman","tag-lunacy","tag-overvalued-markets","tag-qe","tag-real-estate","tag-saving","tag-stocks","tag-the-burning-platform","tag-zirp","tag-zombie-corporations"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10755","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10755"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10755\/revisions"}],"predecessor-version":[{"id":10756,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/10755\/revisions\/10756"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10755"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10755"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10755"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}