AGAIN-Fed Displays Classic 'Insanity!'
The Federal Reserve Chairman Ben Bernanke is going ahead with continuation of his insane idea of 'Quantitative Easing,' as a result of the latest meeting of the Federal Open Market Committee. This time, Bernanke is buying more Treasury securities to reduce long-term interest rates. The net effect here will be:
Penalizing 'savers' who will suffer from the resultant falling interest rates.
Penalizing bond holders and other investors in fixed-rate securities.
Continue the rising inflation rates, at a faster rate.
Put more consumers into houses they cannot afford; have no inclination of paying for.
The Fed's mission--should they decide to accept it--is to control inflation and insure maximum employment; conversely, the lowest unemployment rate possible. Apparently, the Fed has decided NOT TO ACCEPT! Nearly everything done by The Federal Reserve; done by the current regime, has exacerbated both problems!
Let's have a look at how the various statistics are derived; how the various statistics are contrived to achieve the desired goal:
The 'official unemployment rate (U-3)' is those unemployed for four weeks. The rate is determined by the number of unemployed, divided by the number of jobs available.
The "Clown Prince ZERO-bama, The Narcissist" regime has used two types of 'adjustments' to achieve their politically-inspired results. The regime has--at least once--reduced the total labor force numbers to make the U-3 rate to appear to be improving.
The "Clown Prince ZERO-bama, The Narcissist" regime has--at least once--shifted an undetermined number of the unemployed from the U-3 category to the U-4, U-5 and/or U-6 categories, thus reducing the U-3 'official' rate.
Due to the blatant dishonesty and obfuscation by the "Clown Prince ZERO-bama, The Narcissist" regime, one would be advised to periodically check the Gallup organization's tracking of various statistics, providing a more honest; more believeable picture of the national economy. The regime would like you to believe the August, 2011 U-3 rate to be 9.1%; the U-6 rate to be 16.2% The Gallup people have found them to be 9.8% and 18.3%, respectively.
This regime, The Fed as well as members of Congress--politicial parties, aside--continue to feed the American people the government brand of pablum; anything that is more pleasing to the ear and eye, than is the actual situation!