First, what is stimulus? Stimulus is a way rich folks with plenty of political power protect and add to the value the value of their assets. Stimulus also prevents powerful produces and vendors from suffering from decreasing demand for their goods and services. Despite all of the lofty reasons for the Fed doing this that or the other, stimulus is a politically driven agenda. Fiscal stimulus enriches powerful corporations which benefit from the activities, that are chosen for government projects. There is a net loss to society.
Another way to understand stimulus is to know that it really boils down to giving huge amounts of unearned money to the rich under the premise that money spent at the top will create activity within the rest of the economy.
The Federal Reserve cannot lower interest rates any longer. We are at the point where defaults will start occurring. Because of that, rates will start to rise regardless of what the Federal Reserve does. As it is, the Federal Reserve is under a political directive which says, do not let asset prices fall for any reason.
Central banks around the globe have been buying stocks outright for sometime now. When stocks start to slide, they will buy more. At a moment of crisis, the United State’s central bank will announce that they are initiating an emergence equity buying program. to save the world. The reasons given will be similar to those used when the TARP bill was passed in 2008,
After the Federal Reserve announces a program to buy stocks “to save the economy”, they will not stop unless they are forced to.
Remember, the mentality in the United States is that the Federal Reserve and its policies are good and necessary. Ordinary Americans are actually being completely fleeced but they are completely unaware that their troubles have anything to do with the Federal Reserve.
Yes, the Federal Reserve is already supporting stock prices. Announcing an official program to do so, will enable them to buy huge quantities of stock with the public cheering them own. That will be much more effective than buying stocks while pretending not to.
There is a good reason why the new stimulus will be nothing more than buying stocks. High asset prices are all that are all that is holding the economy up. Even a 10% correction would spin the whole country into a deep depression.
The public will be fleeced at much higher levels than it currently is.
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Since 2006 I have been writing that the purpose of Federal Reserve policy is to elevate asset values on behalf of the world’s most politically powerful citizens. This is the only agenda the Fed has and it is the only agenda it has had for many years. I am very careful to study institutions and people according to how they function and disregard how they are defined. The Federal Reserve has never had a policy, theory or anything else that had one iota of a chance of bolstering economic activity or doing any good for the common man.
Politicians seize every opportunity to virtue signal and engage in recreational grief. Do not forget that all of these folks are hybrids of the human race in that they are sociopaths or if you prefer have political personalities. Don’t forget that you have no representation in congress. Upon taking their seats, the representation you claim as your right is freely transferred to the highest bidder. You as a citizen are simply there to be exploited if you allow it to turn out that way. There is not a soul in any branch of government who will not try and use this tragedy or any other as a means for personal gain. The vast majority in congress are nothing more than agents for the deep state which uses them to exploit you the citizen for profit.
It takes a political personality to become a world leader. That is similar if not the same as sociopath.
How is it that the stock market goes up forever? The fastest and most efficient way to create an endless flow of income and wealth is to buy the government and then give a directive to to operate an asset value enhancement initiative. Declare that the program is in the public interest, create massive amounts of money out of thin air and then have the central bank push stock prices up.
What is the Deep State?
Americans have opted for mandatory health insurance and are treating it as universal healthcare. Do not expect an increase in the level or quality of actual healthcare in the country. As a patient you may have already noticed that the utility of a visit to your doctor has decreased and is continuing to decrease further with every passing day. This is because your doctor is dealing directly with your insurance company and only indirectly with you as a patient. Your doctor’s bottom line is determined by his relationship with your insurance carrier and not you. A doctors income is greatly enhanced by accommodating the goals of the insurance companies he works and hardly at all by accommodating you as a patient.
Government serves as a platform where people go to get what they want and have others pay for it. All who use government in this way deny doing so. All who learn in school of the many lofty roles’ government plays are not told the truth. Perhaps their teachers really don’t know any better.