Public Patience Wearing Thin About The Economic Recovery Narrative

The Fed Removes the Word “Patience”.

The Fed tries to prepare the markets for a rate hike, insisting the economy is doing better.

The housing and economic recovery narratives incessantly peddled by the mainstream media are wearing thin as a stream of poor economic data pours in contradicting the narrative.

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Podcast Summary:


What Does the Removal of “Patience” From the Fed Meeting Minutes Mean?

Hawk Talk/Dove Love

5:40-9:59 The removal of the word patience from the FOMC minutes should have meant that the Fed would be taking a more aggressive stance towards raising rates, yet Fed Chair Janet Yellen clarified that the Fed is just as patient, if not more so than ever, despite the removal of the word patience. The Fed also suggested that economy was not “solid” as they has noted in January but rather the pace of growth was “moderating”.

Ms. Yellen also noted she would like to see further improvement in the labor market, including wage growth but that she didn’t necessarily expect to see any. The Fed also took note of the recent rise of the dollar and insisted that it was not a cause of concern and reflected the “strength” of the U.S. economy, despite nearly all recent economic data indicating to the contrary. (other than the Non-Farm Payroll job numbers)

As predicted earlier this year, as more poor economic data comes out, the “recovery” story would wear thin.

The Atlanta Federal Reserve is tracking the first quarter GDP at near flat.

Atlanta Fed GDP Now chart

The Atlanta Federal Reserve is projecting .2% GDP growth in the first quarter of 2015.

Discussion of the contradiction of the Fed’s rationalization for raising rates when by their own measures and outlook they should not be. The Fed is insisting they are going to raise rates because the economy is improving and perhaps needs to do so for credibility sake.

Main Stream Media Propaganda Regarding the Economic “Recovery”

9:59-14:12 discussion of the media’ incessant characterization of economic data as on “solid footing” while refusing to admit the economy is slowing down and demand lacking as evidenced by declining retail sales. The Fed President of San Francisco (Williams) and St. Louis (Bullard) talked after the minutes were released about the need to raise interest rates soon.

Discussion of the excuses the Fed will give for not raising rates.

The Housing Market and Central Bank Interest Rate Manipulation

14:12 – 28:20 Discussion of the manipulation and spin of the housing numbers and their impact on the stock market. Discussion of the contradiction of the Fed moving towards raising rates while the rest of the world’s central banks are lowering theirs. Discussion of central bank coordination of manipulation of interest rates.

Housing sales are down despite the supposed increase in jobs and lower interest rates. Lack of inventory is blamed. If there truly were a lack of inventory, new home builders would rush to meet the unmet demand. They aren’t. Perhaps because they can’t get financing to start projects, or their potential buyers can’t get financing to buy the new homes or perhaps there is no demand in the first place. Discussion of the unintended consequence of artificially low interest rates – lending dries up.

lofty housing starts

Lofty housing starts!

housing inventory chart

Early 2015 housing inventory remains low. but still higher than early 2014, 2013 or 2012 levels.

Low interest rates primarily help those with assets and sovereigns by keeping the rate of interest they pay on their deficit spending borrowing low.

Mortgage Difficulties

28:20-40:54 difficulties in getting a mortgage and the advantages of a long term low interest rate mortgage are discussed.

Main Stream Media Slowly Changing Their Tune on the Economic and Housing Recoveries?

40:54-44:35 Recent articles in Bloomberg and the Walls Street Journal questioning the strength of the economy and housing market housing are discused.

Warnings of Deflation Today vs Warnings of Deflation in the 1970’s

44:35 Rising prices were hstorically discussed as the evil in an economy. Today the threat of falling prices is being touted as the greater evil as central banks conspire to create inflation. Low prices actually create demand while higher prices stifle it. Demand has been brought forward. Higher prices will stifle consumer spending further.

Trickle down (giving money to people directly) central bank stimulus vs trickle down central bank stimulus is discussed. (giving money to banks)

Size of the Silver and Gold Markets

The size of the silver and gold markets is discussed.

Chart showing relative value of global silver mining productionvs jp morgan fines paid and bill Gates net worth

J.P. Morgan paid fines worth 2.5 times more than the value of the entire global silver mining production in 2013.

Public Patience Wearing Thin About The Economic Recovery Narrative

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