U.S. Rep. Scott Garrett says Federal Reserve Chairman Ben Bernanke’s ultra-low interest rate policy is hurting senior citizens by forcing them out of the safety of fixed-income investments and into much riskier stocks.
“With regard to seniors, the Fed’s loose monetary policy and basically pegging the interest rates where they are right now keeps them at historically low levels for an extended, protracted period of time,” Garrett told Newsmax TV in an exclusive interview.
The low interest rates, designed to spur economic growth, carry with them “huge negatives,” the New Jersey Republican said.
Here’s the question of the day: Did president Obama tax the U.S. into recession?
TrimTabs’ Charles Biderman makes that exact claim…
Welcome to the new recession. TrimTabs tracking of real-time wages and salaries shows that the United States has entered into a recession this year. I had been predicting a slowdown after the big bump in December incomes due to the hike in taxes. It has taken a while for us to get a handle on income this year given all the changes in tax rates. But now enough time has passed that I can say I was right. The U.S. economy has slowed enough to enter into recession.
This is how I know we have entered into a recession. After-tax wages and salaries net of inflation have been shrinking year over year since the second week in January. What has been growing dramatically in real time this year is income and employment tax payments. Withheld income and employment taxes have been running about 8.3% higher year over year, comparing the same 33 business days between Tuesday, January 8 and Monday, February 25.
Checking with our favorite official Washington economist, we now know that higher employment taxes accounted for 6% and new soak-the-rich taxes 2% of that 8.3% gain. That means that, before inflation, after-tax wages and salaries grew by only 0.3% for the 135 million Americans that have jobs subject to withholding.
After inflation? Well, what is inflation now? If you believe the Fed, around 2%. Others say higher. Regardless, there is no doubt that the Obama Administration has taxed us into a recession. Congratulations.
Inquiring minds may wish to read the rest of Biderman’s article for some interesting thoughts on insider selling, stock buybacks, and TrimTabs’ employment projections vs. BLS reporting.
Biderman claims the recession started in 2013…
Biderman’sDaily Edge: U.S. Entered Recession in January Yet Fed Fix Keeps Stocks Pumped – Stock Insider Selling is now 50 to 1 and Bailing
CLICK ON CHART TO ENLARGE
The U.S. Dollar, on a monthly closing basis, has created a series of higher lows since 2008. Now the US$ is working on doing something it hasn’t done for the past 10-YEARS in the chart above!
Scott Adams, creator of the comic-strip “Dilbert,” believes financial markets are a vast conspiracy and that stocks are set to plunge 20 percent (h/t Josh Brown).
In a strange new blog post, Adams says stock movements are controlled by a figurative “network of big players” who lure in small-time investors only to set them up for disaster.
He seems to be dead serious.
Here’s the main part of the post:
When I say there is manipulation and collusion in the financial markets, it doesn’t mean there are actual meetings in which billionaires smoke cigars, drink expensive cognac, and make their evil plans. It might be enough that they are all so aware of each other’s moves that they just play follow-the-leader and do so faster than small investors. The sort of market manipulation I’m describing only requires one billionaire leader who is closely watched by the other billionaires. When he sells, they sell, and they all understand why. The big players who time it right get a 40% gain for the year while the underlying value of their stocks is unchanged at the end of it all. It is the perfect crime.