2009 Was Not the Bottom
Nothing Really Happened
This week’s Federal Reserve meeting should be a wake up call to investors, economists, traders, and in reality, to everyone in the world. What Janet Yellen said, after you tear away the happy talk, was “we threw 5 trillion dollars and zero interest rates at the US economy, central bankers around the world jumped in behind us, and nothing real happened”.
What did Occur
Speculators had a party, zero interest rates created imaginary assets, and corporate buybacks pushed the money back out to the speculators and Corporate CEO’s who rode the tail of this party animal.
So Nothing Happened for the Workers of the World
Is it any wonder we have seen the wave of populism around the world. Global trading is not the problem, the problem is that the money in the world is in the wrong place. It is in a sense ironic the that new President of the world, Donald Trump is a prime example of the type of player in this phenomenon. He played with other peoples money, had a number of bankruptcies, used US tax policy to spin the money around and then took even bigger risks. Is it any wonder that he will not release his Income Tax Records and has tied himself to essentially the number one PR “Fake News” firm of the past 25 years, a firm that has spawned a bunch of copycats like Breitbart, i.e. I am talking about Fox News.
Where do thing go from Here
This is not the start of making “America Great Again”, this is the start of “Cleaning America Out”. Hopefully after this cleanout we can do a real “Make America Great”.