Talk ahead of the Federal Reserve meeting is that the central bank may make noise about increasing rates. Americans are trained to believe government, especially the Federal Reserve, have magical powers. Such beliefs are easy to come by since human beings are hard wired to serve kings and prone to worship those they elect instead of exercising authority over them.
The Federal Reserve has been able to reduce interest rates because there has been no natural force causing them to move higher. If demand for money for buying plant and equipment was high or if borrowers were defaulting on loans in high numbers, rates would move up regardless.
Thinking errors abound. Credentials are universally accepted as competence, even when those who own credentials go their entire lives without making a single accurate forecast or implementing a successful policy. No matter what, citizens are going to believe these folks are highly adept.
Economists like Janet Yellen and Ben Bernanke experience the kind of success alchemists in the middle achieved when trying to turn base metals into gold. Kings were excited about the work the alchemists were doing and leaders today hang on every word that comes from a Federal Reserve Chairman. Neither has ever had even a little success in accomplishing the tasks they have attempted.
What I am expecting this week out of the Open Market Committee are emerging face saving initiatives. The public is starting gain awareness, that there has been no economic stimulus and that they have been robbed blind instead. It is human nature to believe anything coming from authority but there is one caveat. The believers must be comfortable. Americans are beginning to suffer some on account of all of the money that has been stolen from them by Fed policy. They are also learning that their chances of doing well in the future are greatly reduced.
Another thinking error is that of insisting that all are innocent until proven guilty. As true as that is in a court of law it is destructive to use that logic in day to day life. Only sociopaths have the manipulative skills to gain an appointment to the Open Market Committee. There is not an honest bone in any of the bodies who participate in Federal Reserve meetings.
Americans are starting to figure these things out. I expect face saving efforts to begin accelerating.
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