By Rick Murphy: The Federal Reserve has been assuring the Americans about the perfection of the US economy.
The Federal Reserve Chairman Ben Bernanke has been proven to be dead wrong time and again. However, still many Americans, investors across the world and of course the mainstream media seem to show confidence in what the Fed says.
Editor’s note: Keep in mind, this is the same Federal Reserve which has conflicts of interest so blatant and massive (as exposed by a Government Accountability Office audit) that trusting them at their word is nothing short of absurd.
The Federal Reserve is of the opinion that the stubbornly high unemployment rate will go down, the economic growth will steadily increase and the inflation will decrease.
With such assurances about the economy, do you believe them this time?
The Federal Reserve Chairman Ben Bernanke has been proven to be dead wrong time and again. However, still many Americans, investors across the world and of course the mainstream media seem to show confidence in what the Fed says.
It doesn’t seem to bother them that the officials of the Federal Reserve have been lying to the people for years. The majority of Americans seem to want to believe blindly in the Federal Reserve, even when reasoning and logic would speak against it.
The actual fact is that there is nothing better that is going to happen to the US economy. The fiscal markets are again going to crash and the unemployment rate will again shoot up, but you will never hear the same comments from the Federal Reserve.
The new lies that the Federal Reserve is telling Americans
Yes, we’re still living in fantasyland and most of the Americans aren’t able to distinguish between the facts and the myths. We’re living on downright lies, spin and myths about the US economy.
If we don’t know the facts, how are we going to make intelligent decisions? Have a look at some of the biggest lies spouted by the Federal Reserve.
- The US economy is going to see a solid GDP growth in the coming years
Well, according to the reports of the Federal Reserve, the American economy will experience solid GDP growth over the coming few years.
In fact, it has also been mentioned that the growth will be at an annual rate that falls between 3.1% and 3.7% by the last quarter of 2014.
On the contrary, the truth seems to be different than what is being stated by the Fed. Economists see that an economic debacle is soon approaching.
They say that the time is imminent when the European banking system will crash and the after-effects will reverberate around the globe.
The epicenter, according to them, for the next crisis, is Europe and this catastrophe is getting closer with each day.
- The labor market will perk up and the unemployment rate will decline
Though the Federal Reserve mentions the aforementioned statement, a line from the Federal Open Market Committee (FOMC) press release says that that the labor market conditions have certainly improved in the last few months and though the unemployment rate has declined, it still remains elevated.
The Fed says that the unemployment rate will fall within the range of 7.8-8% but the economists say that the labor market hasn’t improved at all.
In the month of March 2010, 58.7% of the Americans had a job and even after two years (bringing us to the present day in 2012); exactly the same 58.7% of them have a job.
- There will be low inflation for an assured period of time
According to the projections of the Federal Reserve, the annual rate of inflation won’t be higher than 2.0% by the last quarter of 2012. However, it has been expected that this particular system will only pass if there are no other shocks in the oil sector.
On the contrary, the economists feel that if inflation is measured in the same way as it was in 1980, then the inflation rate would be more than 10%!
This is precisely why the Federal Reserve is constantly changing the way that they calculate inflation in order to make it seem as though they are not devaluing the dollar as significantly as they really are.
You can only judge who is right and who is wrong if you come back to this article a few years later.
If we don’t learn the facts from history, we’re doomed to repeat the mistakes. The economic collapse is one of the most important catastrophic events that is worrying Americans and perhaps this is making them prepare for a doomsday-type scenario.
Judge every financial move that you take so that it doesn’t turn around and hurt you in the long run.
Edited by Madison Ruppert
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