“People Need To Get Used To This Idea”? The Fed Announces 0% Change … To 0% interest Rates

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us-wrenchSo, the much anticipated Federal Reserve meeting at Jackson Hole, Wyoming, has resulted, again as anticipated, in a No vote, meaning that Interest Rates will remain “unchanged”.

Q Wealth report Readers may remember that in a previous post on the Fed’s Interest Rate bravado, we posed the question …

“Far from raising interest rates next month, is the FED actually instead, preparing the ground and heading in the direction of joining Germany and Switzerland, in introducing “negative interest rates” by next year?”

Now it will take time to see whether the Fed’s Jackson Hole announcement is indeed more than just The Fed climbing down from the bolshy frothy rhetoric on rates, but essentially they resisted the temptation to “save face”, given their premature Bullish comments in recent months about “imminent rate rises”.

But reading between the lines, something has become clear, and it was hinted at by one of the CNBC Talking Heads …

…. “People Need to get used to this idea” … he told the world yesterday.

But what precisely is it, that we’re going to have to get used to?

Well it seems that we’re going to have to get used to Interest Rate changes in the future are going to be announced in “ranges”.

Talking Head guy expanded on the phrase as follows …

“The Funds Rate, is zero, but it trades at around 12 [ 0.12%], so a 25 basis points range, would put the effective rate at around 0.37% … ”

Confused? You were meant to be!

So did we get that? Even the two Talking Heads, one in the studio, and one “on location” in Jackson Hole were confused!

Actual Rates, effective rates, ranges?

Don’t worry … behind all that waffle and flim flam, what they are effectively saying, is that the Federal Reserve are now so constrained by reaping the whirlwind rewards and inevitable consequences of their policies, that they are now at the point where they are reduced to “navel gazing with a magnifying glass” over minute shifts in already ‘flat lining’ rates.

Is 0.25% or 0.37% really going to make any difference to the economy? Really?

They are of course, desperately trying to convince us that they are actually “running” the economy … as if anything other than a truly free market can do that … and that these ever-more-minuscule variations in “Interest Rates”, are somehow ALL that is needed to put the economy “back on track” … whatever they mean by that!

By the way, the “Interest Rates” that they’re talking about, are the same ones that the Big Banks have spent billions of dollars of their shareholders money in fines, for rigging in the LIBOR and other BOR scandals!

But of course no personal liability, guilt, or fines, have ever been suffered by banking Executives of course! Personal responsibility for the outcomes of the decisions that they take, would never do!

What do you think this is, a free market or something!?

Meanwhile, in Couch Potato Land, the Bread & Circuses consumers, are oh so conveniently bored by the whole topic, oblivious to the “Scam of All Time” that is being perpetrated underneath their noses, as they passively roll over to have the bellies and ears tickled, with the next form of State bribery, paid for out of the proceeds of crime, euphemistically called “The Public Purse.

Effectively they kick back on the couch and “watch the game”, while they’re having their pockets picked!

But that’s a topic for a whole other day!

 

To Your Secure Financial Future, as always

 

Kris Karlsson

Banking Expert

The Q Wealth Report Team

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