Fed ‘One and Done’ is a Wall Street Fantasy

By Michael Pento – Re-Blogged From CNBC

One of the current myths promulgated by Wall Street is that the Federal Reserve will raise rates once this year, breathe a sigh of relief, and be done until the “12th of never.” But those who are familiar with our central bank’s history are aware that the Federal Open Market Committee has never tightened the federal-funds rate just once. A quarter-point hiking cycle has no historical basis and is just wishful Wall Street thinking.

In the spring of 1988, fearing a rise in core inflation, the Fed went on a tightening cycle that lasted from April 1988 to March 1989. During that time, the fed-funds rate increased more than 300 basis points (3 percentage points). This episode was followed by a recession beginning in 1990, suggesting that the corrective policy actions may have intensified a weakening economy, and that the Fed is prone to being economically tone deaf.

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The Warren Buffett Economy——Why Its Days Are Numbered (Part 4)

By David Stockman – Re-Blogged From http://davidstockmanscontracorner.com

….As reviewed in Part 3, the very idea that 12 people sitting on the FOMC can adroitly manipulate an economic ether called “aggregate demand” by means of falsifying market interest rates is a bad joke when in it comes to that part of “potential GDP” comprised of goods production capacity. In today’s world of open trade and massive excess industrial capacity, the Fed can do exactly nothing to cause the domestic steel industry’s capacity utilization rate to be 90% or 65%.

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How’s the US Economy?

cropped-bob-shapiro.jpg   By Bob Shapiro

How’s the US Economy doing? That depends on who you ask.

The “official” unemployment rate, at 5.7% is a little high by historical standards, but way down from the peak of the Great Recession. The US Dollar is way up in Forex Markets, and that usually means that the US Economy is booming and everyone wants our strong currency. GDP is up again – at a 3.8% annual rate during the 2nd half of last year.

Who could ask for anything more?! Let’s look at these and other numbers a little more deeply.

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Gallup CEO Calls 5.6% Unemployment Rate “The Big Lie”

By Mike Shedlock – Re-Blogged From globaleconomicanalysis.blogspot.com

On Linked-In, Gallup CEO, Jim Clifton proclaims 5.6% unemployment is “The Big Lie“.

And it is. I have talked about this for years, but perhaps it would be interesting to hear the same thing from a CEO of a big agency. I picked this story up from ZeroHedge. Emphasis in italics is mine.

Clifton first calls the unemployment rate “extremely misleading” but later on calls it “The Big Lie“, and that is the title of his Linked-In article as well.

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An amazing chart of an amazing job-creating state; we owe a debt of gratitude to ‘Saudi Texas’ and the shale boom

Since the Great Recession started in 2008, employment has fallen along with the Labor Participation rate. It is only in the last 2 months that employment has gotten back to pre-recession levels for the US as a whole.

But, contrast two oil rich states: “Saudi” Texas and the anti-energy California. California still has 7.3% unemployment, and people & businesses are fleeing the socialist level over-regulation. In Texas, employment never fell below pre-recessionary levels, and in the last year, provided fully 1/6 of all new US employment – over 420,000 new jobs in the last year!

Please read on for the story of the Texas Miracle. (Bob Shapiro)

Mark Perry AEI   By Mark J. Perry

(Reblogged from the American Enterprise Institute)

US vs Texas Employment

The chart above shows a most amazing economic phenomenon: Since

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More Jobs Through Less Regulation and Bureaucracy

cropped-bob-shapiro.jpg   By Bob Shapiro

The US needs more jobs.

While the headline unemployment rate shows the rate mostly recovered from the depths of the most recent Recession, by adding back in people who have given up hope of finding a job, plus those working part-time but really wanting full-time jobs, it shows US unemployment around 23% – at Great Depression levels.

Unemployment - ShadowStats

New business start-ups are a major source of new jobs, as well as being

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