Saturday, August 30th, 2014

5 New Lies That The Federal Reserve Is Telling The American People


The Economic Collapse
April 26th, 2012
Reader Views: 260

The Federal Reserve says that everything is going to be okay.¬† The Fed says that unemployment is going to go down, inflation is going to remain low and economic growth is going to steadily increase.¬† Do you believe them this time?¬† As you will see later in this article, Federal Reserve Chairman Ben Bernanke has been dead wrong about the economy over and over again.¬† But the mainstream media and many Americans still seem to have a lot of faith in the Federal Reserve.¬† It doesn’t seem to matter that Bernanke and other Fed officials have been telling the American people lies for years.¬† As I always say, most people believe what they want to believe, and many people seem to want to have blind faith in the Federal Reserve even when logic and reason would dictate otherwise.¬† The truth is that things are not going to be getting much better than they are right now.¬† When the next wave of the financial crisis hits, the U.S. economy is going to fall back into recession, financial markets are going to crash and unemployment is going to absolutely skyrocket.¬† But you will never hear any of that from the Federal Reserve.

The following are 5 new lies that the Federal Reserve is telling the American people.¬† After each lie I have posted what The Economic Collapse Blog thinks is actually going to happen….

#1 The Federal Reserve says that the labor market has improved and that unemployment is going to decline significantly over the next few years.

The following is a quote from the FOMC press release that was released on Wednesday….

Labor market conditions have improved in recent months; the unemployment rate has declined but remains elevated.

The Federal Reserve is projecting that the unemployment rate will fall within the range of 7.8 percent and 8.0 percent by the end of 2012.

The Federal Reserve is also projecting that the unemployment rate will fall within the range of 6.7 percent and 7.4 percent by the end of 2014.

The Economic Collapse Blog says that the labor market has not improved.  In March 2010, 58.5 percent of all working age Americans had a job.  Exactly two years later in March 2012, 58.5 percent of all working age Americans had a job.  If the labor market was improving, the percentage of working age Americans with a job should have gone up.

The Economic Collapse Blog also says that while there is a chance the official unemployment rate may go down slightly in the short-term, the truth is that it is going to go up into double digits once the next wave of the financial crisis hits us.

#2 The Federal Reserve says that that U.S. economy is going to experience solid GDP growth over the next couple of years.

In fact, the Federal Reserve is projecting that U.S. GDP will be rising at an annual rate that falls between 3.1 percent and 3.6 percent by the end of 2014.

The Economic Collapse Blog says that a great economic cataclysm¬†is coming….

“When the European banking system crashes (and it will) it is going to reverberate around the globe.¬† The epicenter of the next great financial crisis is going to be in Europe, and it is getting closer with each passing day.”

#3 The Federal Reserve says that we can expect low inflation for an extended period of time.

The Federal Reserve is officially projecting that the annual rate of inflation will not be higher than¬†2.0 percent¬†by the end of 2012.¬† Federal Reserve Chairman Ben Bernanke reinforced this projection during his press conference on Wednesday….

‚ÄúBut we expect that to pass through the system, and assuming no new shocks in the oil sector, inflation ought to moderate to about 2 percent later this year.‚ÄĚ

The Economic Collapse Blog says that the Fed is being tremendously dishonest and that if inflation was measured the exact same way that it was measured back in 1980, the annual rate of inflation would be more than 10 percent right now.

The truth is that most middle class families know that we do not have low inflation right now.  This is hammered home millions of times a day when average Americans visit the gas station or the grocery store.

At the beginning of the next recession inflation will likely subside, but that will only be because economic activity will be slowing down dramatically.

#4 The Federal Reserve says that it has built up a 30 year reputation for keeping inflation low.

Ben Bernanke actually had the gall to make the following claim during his press conference on Wednesday….

“We, the Federal Reserve, have spent 30 years building up credibility for low and stable inflation, which has proved extremely valuable in that we‚Äôve been able to take strong accommodative actions in the last four, five years to support the economy.”

Oh really?

The Economic Collapse Blog says that the¬†Federal Reserve¬†has nearly a 100 year reputation for destroying the value of the U.S. dollar.¬† Even using the Fed’s doctored numbers, the value of the U.S. dollar has declined¬†by more than 95 percent¬†since 1913.

To get a really good idea of just how much the dollar has been destroyed by the Fed over the years, just check out this chart.

#5 Federal Reserve Chairman Ben Bernanke says that we should trust him because the Federal Reserve stands ready to do whatever is necessary to support the U.S. economy.

“If appropriate… we remain entirely prepared to take additional action”

The Economic Collapse Blog says that Federal Reserve Chairman Ben Bernanke is doing a great disservice by not warning the American people about the tremendous crisis that is coming.¬† In a¬†recent article¬†I stated that this next crisis will blindside most Americans just like the last one did….

“Sadly, just like back in 2008, most people will never even see this next crisis coming.”

So who should you trust – the Federal Reserve or all of the half-crazed bloggers out there that are warning about the “serious doom” that is coming.

Well, come back to this article in a year or two and compare how accurate the predictions were.

In the end, time will tell who is telling lies and who is not.

If we do not learn from history, we are doomed to repeat it.

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  • Evie

    I am starting to understand this crisis is getting worse but instead of the whole system going down it seems it is going down country by country. This could be a means tested social experiment mostly to eliminate the boomers. The attitude now is after you pay for something the ,entral planets would prefer you disappear_unless you are willing to go into debt or voluneer labor for free.

  • Ed_B

    “The Economic Collapse Blog also says that while there is a chance the official unemployment rate may go down slightly in the short-term, the truth is that it is going to go up into double digits once the next wave of the financial crisis hits us.”

    No, the TRUTH is that US undmployment is already well into double digits at about 15.5%. All one need do is use the pre-1995 U6 government calculation in order to find it. The Fed is not doing this because they KNOW that it is true and that many US citizens do not know that it is true. Above all else, the Fed seeks to avoid a frightened Sheeple stampede, so their MO is one of softly spoken soothing… lies. They simply cannot grasp the idea that the truth is a FAR better policy even if it is upsetting.

    “The Federal Reserve says that that U.S. economy is going to experience solid GDP growth over the next couple of years.”

    Yeah, right… this is probably among the least likely of all the scenarios I have recently considered. I would love for this to be true but, unfortunately, neither logic nor reason supports this contention.

    “The Federal Reserve says that we can expect low inflation for an extended period of time”.

    Really? Just when is this supposed to start? Oh, I get it. This is true but ONLY if we exclude almost everything that is rising in price and that people MUST buy in order to live. Food going up? Ok, we won’t count that. Evergy going up? OK, we won’t count that either. After all, who really needs food and energy?

    “The Federal Reserve says that it has built up a 30 year reputation for keeping inflation low”.

    In their own minds, I suppose. In the minds of those of us who can still think clearly, the Fed has built a strong reputation for bungling the economy, inflating bubbles, and failing to handle interest rates in a manner that would best serve the US economy and its citizens. If the market were to set interest rates that would put a natural control on out-of-control government spending. If national productivity declined and government borrowing increased, rates would rise, curtailing such counter-productive government tendencies. Can’t have that, now, can we.

    • den1313

      Go to the Bureau of Labor Statistics and get the numbers for this simple equation: total working age population minus number of people working divided by the total working age population times 100. That will give you the actual unemployment rate without all the bullshit. It is far higher than 15%

  • Evie

    Not only are the unemployed not all counted. But many jobs have disappeared and are not coming back. Jobs thst should diseapear do not.,
    Ceos,economists,bankers,oversight and various othet experts who have no clue. Ditchdiggers and teachers are demonized for not working for peanuts_yet the above are worth billions just because they say so. I would like millions for nothinh also.

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