http://bullionbullscanada.com/index.php/commentary/gold-commentary/26697-fomc-meetings-are-irrelevant

Created: 16 June 2016 Last Updated: 16 June 2016 Published: 16 June 2016 Written by Jeff Nielson Hits: 270

For more than 7 ½ years, the Federal Reserve has been promising to normalize U.S. interest rates. That was the initial promise, back at the end of 2008. Most people in the Western world have forgotten what “normal” means with respect to interest rates, after the past 7 ½ years of monetary insanity.

In general terms, normal interest rates mean rates in the range of 3 – 5%. However, given the extreme levels of indebtedness across the Western world, and the elevated level of “risk” associated with such obvious insolvency, a “normal” interest rate for these regimes would be more in line with a rate of 6 – 7%, if not higher. The financial joke here is that if any of the Western world’s Deadbeat Debtors did raise their interest rate to a rational level of 6 – 7%, that regime would be quickly bankrupted by (at least) a quadrupling of interest payments, on their gargantuan debt.

Therefore we in the West live in a world of permanent interest rate fraud: the most-insolvent nations on Earth have the lowest interest rates. Consequently, there are no “buyers” for any of the fraud-bonds of any of these nations (i.e. there are no more lenders for these Deadbeat Debtors). Thus these economies have descended to the level of open Ponzi-schemes. The only way that these corrupt, bankrupt regimes can delay their own bankruptcies is by continuing to print-up (i.e. counterfeit) insane quantities of their worthless, paper currencies – and then using the one form of their worthless paper to “buy” another form of their worthless paper. Pure fraud.

Propping up bankrupt economies in this manner is known by the euphemism “monetizing debt”, a phrase never heard from the vacuous sycophants of the mainstream media, because monetizing debt is what bankrupt regimes do, immediately before declaring bankruptcy. With this context in mind, let us return to the corrupt world of the Federal Reserve, and its farcical “FOMC meetings.”

In the 7 ½ years since the Federal Reserve began promising to normalize U.S. interest rates, there have been approximately 60 FOMC meetings. During that period of time, the Fed has raised U.S. interest rates precisely once – all the way from the ultra-fraudulent level of 0% to 0.25%. This one, token rate-increase occurred for one purpose: to try to inject a tiny degree of credibility into the verbal diarrhea of compulsive Liars. When you promise to do something for 7 ½ years, but never do it, even the apologists in the Corporate media have difficulty trying to pretend that there is some significance to these FOMC meetings.

There isn’t.

Since the end of 2008; we have seen nothing but talk from the Fed-heads, and the “talk” has all been lies. Very obviously the talk itself is completely meaningless, thus the FOMC “meetings” (where the Fed-heads assemble to talk) are also meaningless. All that counts is action, and the action has been virtually non-existent.

At the current rate, it will take the Federal Reserve 30 years just to get U.S. interest rates all the way up to 1% -- which would still be an insanely low level, by historical standards. It would take the Fed 60 years to get U.S. interest rates back to 2%, much longer than most of us will live, and that would still not be a normal interest rate. One would see much more action watching two snails race each other.

Skeptics will argue that even though everything said by the Fed-heads are lies, and the Federal Reserve never does anything, these FOMC meetings still have significance because they “move markets.” No, they don’t. The computerized trading algorithms operated by the Big Banks move our markets, in a perpetual price-rigging operation. The meaningless drivel from the Fed-heads, along with the ludicrous economic “statistics” produced by our corrupt governments are merely the pretexts used by the Big Bank crime syndicate to manipulate markets in one direction or another.

Perhaps the most-obvious example of this fact is precious metals markets. After gold and silver prices were capped in 2011, in one of the most extreme examples of market fraud in history, the Fed-heads have spent the last 5+ years talking about raising interest rates, but (almost) never doing so. Have precious metals prices thus been steadily rising (and recovering lost ground) for the last 5+ years, as the Fed failed to do what it promised, again and again and again?

No, precious metals prices have ground steadily lower, throughout this period of time. Here the fraud is simply infantile. On every day except the actual day of the FOMC meetings, the Fed-heads talk about raising interest. Then when the actual meeting occurs, they do nothing (again). Precious metals prices fall every day the Fed-heads engage in their serial lies about “raising interest rates”, but they only rise for one day: each time we see the Fed (again) breaking its word.

Note the level of perversity here. In a sane world, we would see a precisely opposite paradigm. Prices would move in accordance with actions (i.e. reality) virtually all of the time, and only occasionally would the repetitive talk from compulsive Liars have any effect on prices.

Some readers would still argue that this analysis is now outdated. Precious metals markets have moved higher (finally, over the past several months) based upon the Fed’s continual broken promises – during the current “rally”. Yes, the Rally. And what a “rally” it has been!

After 6 months of this supposed Rally, the price of gold has regained 25% of the ground it has lost over the previous 5+ years of market-rigging fraud. The price of silver has regained less than 10% of its lost ground, despite the fact that in any legitimate rally the price of silver leads the price of gold higher. But that’s not even the real joke concerning this Fake Rally.

In the real world, a world in which the Big Banks have debauched our paper currencies to virtual worthlessness, a fair-market price for silver would start at $1,000/oz. A fair-market price for gold would be at least $10,000/oz. By that measuring stick, the price of gold has only moved 2% of the way toward a fair-market price after 6 months of this “rally”. The price of silver has moved only a fraction of 1% of the way toward a fair-market price.

Only those who listen to the perpetual lies of the mainstream media could have mistaken the last 6 months of muted, upward movement in precious metals as “a rally.” Furthermore, the reason for this Fake Rally (i.e. upward price-fixing operation) has now been explained to readers on several occasions. Precious metals prices were moved off of their previous bottoms simply to make it easier to crash those markets at the same time that all other markets are crashed.

FOMC meetings are “important”? No. Watching compulsive Liars repeat the same lie over and over and over could never be construed as being important, and could only be construed as being irrelevant.

FOMC meetings “move markets”? No. The banking crime syndicate’s Master Trading Algorithm moves our markets, as this computerized trading now totally drowns out all trading by human participants in our markets.

FOMC meetings are “crucial” with respect to gold and silver prices? No. They are crucial only in the sense that these serial lies have been the principal excuse provided by the media, to cover-up the last 5+ years of market-rigging fraud.

How irrelevant have FOMC meetings been over the past 7 ½ years? One could have copied-and-pasted the “minutes” from the last FOMC meeting in 2008, and published those same minutes in every FOMC meeting since that time, and we would have only noticed one difference. The shameless sycophants of the mainstream media would have gushed with praise about the Federal Reserve’s “remarkable consistency”.

Some people enjoy watching puppet-theater. But that doesn’t make it important.

http://bullionbullscanada.com/index.php/commentary/gold-commentary/26697-fomc-meetings-are-irrelevant