JIVE TURKEY OBAMA, THE KING OF STUPIDITY, WRONGLY CLAIMS SYRIAN EXODUS IMMIGRANTS ARE LIKE MAYFLOWER AMERICANS DURING HIS PROTESTANT CHRISTIAN THANKSGIVING ADDRESS

Today, President Obama took to YouTube to lie to Americans on all days, the without doubt Protestant Christian holiday of Thanksgiving. Idiotically, Obama said,

“In 1620, a small band of Pilgrims came to this continent — refugees who had fled persecution and violence in their native land. Nearly 400 years later, we remember their part in the American story, and we honor the men and women who helped them in their time of need.”

Self-funded, capitalist adventuring separatist Protestant Christians (left). Totalitarian Syrian muslims dependent on charity handouts to survive

Today, Americans celebrate Thanksgiving because dissenting English Protestants known as Pilgrims who sailed to North America to establish an English colony did so as part of their Protestant Christian religious practice. Not merely reform-minded English Protestants known as Puritans who sought to purify the Church of England from all Roman Catholic practices, the Pilgrims were separatists who believed that no hope existed for purifying the Church of England.

The Pilgrims arranged for Dutch investors to finance the ships and supplies for the Pilgrims to establish of a profit-seeking colony on land in America owned by the English king. The Pilgrims struck a deal with the King of England through his agents to obtain a land patent granting them the right to settle on the English land in North America.

However, the first Thanksgiving decreed by Congress was to celebrate a war victory. Congress decreed the first national day of Thanksgiving on Thursday, December 18, 1777, to commemorate the American victory at the Battle of Saratoga after the surrender of General John Burgoyne and 5,000 British troops in October 1777. In proclaiming the first national day of thanksgiving, Congress wrote,

“It is therefore recommended to the Legislative or executive Powers of these UNITED STATES, to set apart THURSDAY, the eighteenth Day of December next, for solemn THANKSGIVING and PRAISE; That at one Time and with one Voice the good People may express the grateful Feelings of their Hearts, and consecrate themselves to the Service of their Divine Benefactor”

The history-idiot-in-chief should know this: CHRISTIANS FOUNDED AMERICA, NOT ATHEISTS, NOR JEWS, NOR HINDUS, NOR BUDDHISTS, NOR MUSLIMS.


Unlike 10,000 Syrians engaging in exodus from the Middle East, there were only 102 Pilgrims. More so, the Pilgrims were self-funded, adventurers. The U.S. Congress is funding the Syrian exodus from Syria to the USA. More so, Congress gets its funding from borrowing and taxes you to pay its massive credit card.

The 10,000 Syrians engaging in exodus are mostly needed muslim beggars many of whom denounce Christian belief and who want to see the world fall to muslim Sharia law.

Obama is living proof that Americans need a constitutional amendment barring anyone from becoming president of the United States who has at least one immigrant parent.

Obama is disloyal to the core. Obama hates Americans, especially white protestant Christian Americans. White protestant Christian Americans comprise the lion's share of American population — 79.96% white, 51.3% protestant. It matters not if most choose not to attend a church or affiliate with any protestant church.

You can watch the deplorable, denigrating idiot, the leader of the free-world, lie about Americans and American history for his personal agenda and political gain on Thanksgiving.




At least as of this writing, Americans need only suffer 420 days with the rather disgusting, anti-American.

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OBAMA STARTS HASHTAG JIHAD AGAINST AMERICANS. REJECT OBAMA'S EFFORTS TO TRY TO MAKE YOU FEEL SHAME.

Today, Obama unleashed an attack on all Americans who rightly stand united against Obama's plan to import Syrian Muslims and their anti-American culture into the USA. This time, Obama has taken to Twitter, firing off a hashtag missile against the minds of the impressionable.

Obama is waging a war of psychology against Americans. When you think about it. That is the stuff of sicko dictators that you would find in movies like V for Vendetta.





Obama is using the latest tactic of cultural Marxists that relies upon deep-seated psychology whereby no one wants to known as a shameful person. Instead of slut-shaming, Obama is trying race-shame you.

Don't let the jerk-in-chief attack your mind with his hashtag missiles. No doubt, as an American, you have compassion. However, unlike Obama, you lack stupidity.

In STUPIDLY, SOCIAL JUSTICE WARRIOR OBAMA GOES ON TIRADE AGAINST AMERICANS LOYAL TO AMERICA, I showed you that Obama tried to shame you into believing you are not an authentic American if you defended your expressed preferences for the USA and like-minded Americans over anti-Enlightenment foreigners such as Muslims.

There are four types surrounding the question of importing Muslims into the USA. Three of them are against Age of Enlightenment Idealism:

• Appeasers
• Collaborators
• Denialists

And then there is the fourth type:

• Realists

Realists know the end game for Muslimry worldwide is political domination. With that comes imposition of Sharia Law. Sharia law means legalizing and institutionalizing a rape culture one which adjudicates for men against women.

Every realist knows this. Every realist knows that those who strive to live by Islamism do not want to live by the rule-of-law based on Age of Enlightenment ideals.

As I showed you in OBAMA. MR. SETBACK. THE GREAT APPEASER. OBAMA NEEDS TO WIN A NEW NOBEL PRIZE FOR APPEASEMENT, Obama began his presidency with a plan of appeasement to world Muslimry. Now it seems that Obama's appeasement was part of a larger plan of collaboration. Consider that Obama was raised by his Islamic step-dad, Lolo Sotero, it seems so unlikely that Barry Obama lacks any strong sympathetic allegiance to world Muslimry.

Obama entered the White House as an appeaser to worldwide Muslimry. He will leave the White House as a Muslimry collaborator.

Obama's support of terrorists in Syria against a UN-recognized sovereignty has let Obama put a toilet bowl stain on the reputation of Americans. In so doing, Obama has made Americans who pay taxes to Congress unwilling collaborators to terrorism.

All of the anti-Assad Syrians who Obama will import illegally into the USA — no law exists that authorizes Obama to pay to transport them — in effect are terrorists in violation of international law. It matters not if Assad is a bad guy as likely he is.

All Americans must ask themselves to what purpose does it serve to import millions of people who believe in a totalitarian doctrine to govern every moment of their lives, a doctrine — Islamism — that is little different than Mao Communism. Rather than relying on pseudo-science rhetoric though, it relies on pseudo-religious rhetoric, a rhetoric devised from corrupting extra Judaic texts and apocryphal, bogus writings about Jesus.

The next effect is the same. The bogus rhetoric justifies totalitarian political action ranging from stoning to death women who allegedly entice men to rape them to blowing up Westerners who attempt to live by Age of Enlightenment idealism.

Not only is Obama a bad president, perhaps one of the worst ever, but also Barack Obama simply is a horrible human being, a true lowlife. Obama is a horrible little man with deep character flaws, the product of his rather lame parents — a self-loathing mom and and an opportunist, immigration status-seeking dad as well as an opportunist, often-absent step-dad. Later historians will not be kind to him.

Everyday that passes, Obama goes further to reveal himself as a Islamic collaborator. Americans need to step up and demand Obama resign the presidency.

For more on the ongoing stupidity that is Barack Obama, check out WE INTERRUPT YOUR PROGRAMMING TO BRING YOU OUR LATEST WAR AGAINST ISLAMIC JIHADISTS, ISIS, OH AND SYRIA.

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$92,000 A YEAR LIFESTYLE FOR WELFARE BUMS IN SOUTHERN CALIFORNIA PAID BY THE U.S. CONGRESS WHO EXTORT TAXES FROM YOU.

Everyday in the USA, millions win the lottery — the Section 8 Voucher lottery given to them by the U.S. Congress.



Where I live in sunny, well-to-do Southern California, not far from Los Angeles, and minutes from world famous beaches, there are non-profits who act as landlords for Section 8 voucher lottery winners.

I've seen the data. There are many who live in apartments that would require a $48,000 gross income to pay the rent who live there free-to-them and near-fear to them, all paid for by the U.S. Congress.

And where does Congress get the funds to pay landlords? Congress borrows most of it and taxes many "middle class" Americans with few deductions at such confiscatory rates to pay for the debt service on the borrowing.

I know of one case where person X earns about $44,000 a year and  with his Section 8 subsidy, his gross income gets bumped up by Congress to $92,000 a year. Sure, each month, he pays a fraction of the rent and yes, his employer withholds taxes.

However, the Section 8 welfare he gets far exceeds his withholdings. In short, he isn't paying taxes at all to Congress.

You are reading that right. The welfare he receives exceeds his income and more than doubles it! He lives as if he has an engineering degree from Cal Poly rather than the high school grad he is who works as a personal services technician!

Congress believes he should be among the lucky who get bumped up to a upper middle class income and lifestyle, in effect, give him more buying power than those who I know who work hard for $55,000 a year. Sadly, those who know I who earn $55,000 earn too much to qualify for any welfare from Congress.

On top of that, he gets EIC for two children under the age of 18! So Congress actually pays him for having kiddos!

I know of another person who skipped many school days and dosed out on acid. Then for years during early adulthood, she continued tripping on acid weekly. She said she has tripped over 5,000 times.

Anyway, all of her drugging destabilized her brain. So what did she do? She went to doctors saying she had mental problems and boom, they gave her disability! Now, Congress gives her $23,000 in gross income for rent via the Section 8 program and another $10,000 or so in Social Security Disability Income. She gets all of that because of her voluntary drugging that fried her brain.

And there is another case of a family whose combined household income from wages exceeds $90,000 and yet Congress still gives them another $48,000 gross income, effectively. They have a gross income of over $138,000 a year thanks to Congress!

And you are going to get steamed even more over this. Many of the residents in these subsidized apartments could be illegal aliens. The State Lawgivers of California prohibit landlords from checking on immigration status.

As well, Congress provides block grants that end up in the pockets of these non-profit landlords to subsidize even more. The lawgivers of California provide these block grants as well.

Most Americans don't know anything about this. Congress has turned America into a socialist paradise for some.

Why live on Section 8 welfare in East St. Louis where you must duck bullets when you can live in sunny Southern California among the rich in some of the most sophisticated cities in the USA? You can.

I see it first hand. I have intimate knowledge of the workings of the Section 8 system in Southern California.

If there were no rent subsidies, rents would plummet tomorrow. Rents would become affordable to even the lowest paid workers.


SNAP (Food Stamps) welfare works the same way — artificially raising food prices.

All of this was decided during the George Herbert Walker Bush years and his "kinder, gentler" America program.


Capitalism, work, ingenuity — all of this is getting killed by a socialist-leaning Congress, a socialist-for-the-masses, exclusivity-for-the-richest-elites (think: Warren Buffet). It's no wonder how many call this current version of America, neo-feudalism, a kind of hybrid socialism-fascism-feudalism.

And while no one should care how Congress spends their funds, all should care how much Congress can legally steal from anyone. No American should be forced to pay a sum of taxes that exceeds 12% of her or his income in any year to Congress.

The time has come for a constitutional amendment that puts Congress in tax shackles. Likely, it might be the only amendment Americans need. That amendment should limit the sum of taxes Congress can collect from anyone in whatever form to 12% of his or her income in a year.

Legislating should be hard. Congress should be forced to decide between guns and butter.


Today, the New York Times published a story about how the City of Los Angeles is going to blow $100 million on grubby welfare-seekers.

The whole thing reminds me of this video Peter Schiff put together a year or so back.

America. It's so over.

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Q2 2015 VELOCITY OF CIRCULATION. THE GREATEST DEPRESSION CONTINUES. IS THIS THE MOST DAMNING INDICTMENT AGAINST CONGRESS AND THE FEDERAL RESERVE?

Readers of Bizarro Theater know that Americans have not had a money-based economy legally since Congress decreed that Federal Reserve banknotes are legal tender. That happened more than 100 years ago.

Bizarro Theater readers know that were it to exist, money would be coined metal by weight and fineness.  BT readers know that were it to exist, money could exist without either banking or lawgivers such as Congress.

BT readers know that cash is bank credits with bearer negotibility circulating in perpetuity. BT readers know that cash requires banking to exist. Further, BT readers know that cash as legal tender requires both banking, lawgivers and their enforcement agents.

So when anyone talks about the velocity of money, if they weren't muddled in thought by their false beliefs, rightly, they would say velocity of circulation or velocity of the circulating media or something along those lines.

With the legal tender banknote system Americans live by today, velocity of circulation reveals the turnover of negotiable bank credit in the buying and selling of domestically-produced products through time. A rising velocity of circulation shows anyone that Americans are trading new property in the pursuit of profit with greater frequency. Likewise, a falling velocity of circulation shows that Americans are trading new property with less frequency.

In short, an increasing velocity of circulation shows a bettering economy and likely leading to better living for many Americans, if not most. Likewise, a decreasing velocity of circulation shows a worsening economy and life worse off for most Americans.




Hover over the bars for the actual numbers.



For those old enough, when they follow along the chart and reflect on their life, they will see the chart corresponds to reality. In spite of minor recessions here and there, Americans became ever richer after World War 2 through the 1970s. Especially during the 1950s and 1960s, Americans moved to the suburbs, bought houses easily, had two cars in the garage while, had one primary income earner and could easily pay medical bills as well as easily pay for higher education for their college-aged children.

Americans were the envy of the world.

During the late 1970s, American living became increasingly harder. To quell inflation, Fed Chairman Volker oversaw the rising of Fed Funds Rate which pushd the prime interest rate through the roof.

During the Reagan years, and more so during the middle years of his presidency, living improved for many but not all. Yet, optimism prevailed among many.

By the time, the self-professed, kinder and gentler George Bush, Sr., became president, owing to the policies he supported that Congress turned into law, Americans began to see their livelihoods fall. American life became fairly bleak through near to the end of the first term of Bill Clinton.

Around 1994, Americans began to experience a bettering economy. This bettering rose until the peak of the Dot Com bubble, which hit in 1999. After sputtering during the early George Bush, Jr., years, Fed Res chairman Greenspan goosed the economy. Doing so led to the Greenspan-Bernanke Great Inflation, the biggest banking credit bubble in the history of mankind.

The Greenspan-Bernanke Great Inflation combined with reckless mortgage-backed securities peddled by the U.S. Congress itself through its GSE agents, Americans lived through a massive bubble, a false prosperity. That false living came to an end by Q4 2007.

Since Q4 2007, life for Americans has become progressively worse. Much of the damage has been done by the progressive Congress of Harry-Reid and Nancy Pelosi under Barack Obama, a man always who is willing to push more government upon Americans. As well, the Ben Bernanke-Janet Yellen Fed Res policy of near-zero interest rates has wrecked capitalism.

As our lawgivers are weak, mindless men, it's going to take much more pain from a much bigger disaster before smarter men ascend to power who put forth laws and action that restores prosperity to Americans by restoring capitalism, focusing on the protection of the individual and his property (right of ownership) while riding Americans of the failed doctrine of kinder, gentler, crony politics, near-socialism economics.


For those curious as to the technical details of the chart, in the first footnote of the Federal Reserve release titled Money Stock Measures - H.6, someone at the Federal Reserve has defined M1 thus:

M1 consists of (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of depository institutions; (2) traveler's checks of nonbank issuers; (3) demand deposits at commercial banks (excluding those amounts held by depository institutions, the U.S. government, and foreign banks and official institutions) less cash items in the process of collection and Federal Reserve float; and (4) other checkable deposits (OCDs), consisting of negotiable order of withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, credit union share draft accounts, and demand deposits at thrift institutions. Seasonally adjusted M1 is constructed by summing currency, traveler's checks, demand deposits, and OCDs, each seasonally adjusted separately.

The adjusted M1 is M1 with the traveler's checks removed.

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LAWDY, LAWDY FINANCIAL END TIMES ARE SURE TO BE COMING UPON US, SO SAYS THE PREACHER MAN.

With the Internet, like most everything else, the good and the bad stand before you. You must decide.

Sometimes the bad of the Internet is baneful stupidity spread by Financial End Times preachers. Spewing populist sermons from their blogger pulpits, these deliverance preachers promise to guide their flocks through Financial Armageddon. Such Financial End Times preachers are fond of fleecing their flocks with sales of their numerous books of revelation.



These Financial End Times preachers claim the financial apocalypse is always about to happen soon. They claim to have the gift of financial prophecy. For them, their Satan, their evil foe is the supposed Financial New World Order.

One of the more insidious sermons often preached is how "the debt is going to explode in our faces." These preachers breathe fiery sermons of brimstone and treacle, that devil-spawn bankers and corrupted law givers have engaged in such financial evils that a price must be paid to set things aright.

Reality of course is far different from superstition.

The Greenspan-Bernanke Great Inflation, the biggest credit bubble in the history of mankind led to peak GDP. After the Greenspan-Bernanke Great Inflation blew up, deflation started. We're only seeing signs now of banking deflation stopping.





First under Bernanke and then under Yellen, central bankers have masked that deflation with what they call Quantitative Easing. And that is the whole point of Quantitative Easing. Quantitative Easing makes everyone believe that prices they look upon with their eyes are at least the same as before if not slightly higher.

If you were to ask almost everyone you were to meet if prices of things are up or down in their supermarkets and elsewhere, they would tell you that prices are up. Of course, as all prices get quoted in dollars, dollar prices are up.

However, once you look at prices in True Dollars™, you would find that true prices are down for almost everything.

Credit isn't any different. Credit is up in current dollars. Since credit is the flip side of debt, debt is up in current dollars. Populist end times financial preachers point to current dollar charts of debt and have their flock believing locusts are about ready to swarm.

However, in True Dollars™, credit is down and thus so is debt, for everyone. So let's have a look.

Where do the women and men of Congress stand with their debt? Congress debt has fallen to true GDP peak-approaching 2007 levels.



What about the law givers of the various states and counties and municipalities?


What does the debt position of financial firms look like?


Where are the non-financial corporations?



Where are the non-financial businesses not incorporated?


And what about individuals, where do households stand these days on debt?



As you can see from the table below, that all parties of the economy have been reducing their true debt, their debt tallied in True Dollars™.



Unlike the populist financial end times preachers as well as those other superstition lot, the academia economist preachers, I give you to scientific reality. You won't find anywhere else on the Internet, my charts, all of which correspond to the reality everyone experiences daily.

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ADVANCE RETAIL SALES FOR MAY 2015. ARE WE GETTING CLOSER TO A RECOVERY UNDERWAY?

The minions at the Census Bureau released the June 2015 report of the Advance Monthly Sales for Retail and Food Services reporting May 2015 data. Everything is up by month and by quarter!

I'm not going to hit with you all the charts generated from this series, but glance at the table below the main chart.



Expressed in True Dollars™, these are solid month-over-month gains though I suspect these gains reflect an income tax return effect. The quarterly gains impress even more.

We're still far from Peak GDP. If Americans continue on this path, it's quite possible for 2015 to finish ahead of 2014. A year-over-year advance hasn't happened in awhile.

A year-over-year advance would signal a true recovery underway. Some would say that is a signal to go long industrial raw materials, manufacturers, banks and so on.

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WHERE HAS LIVING BEEN BEST SINCE THE GREENSPAN-BERNANKE GREAT INFLATION, PEAK GDP AND THE GREATEST DEPRESSION?

Today, I did some sleuthing. Using income per resident, age 16 and up, expressed in True Dollars™, I compared the 50 states and the District of Columbia to see what Americans have weathered the Greatest Depression storm the best.

While I am not going to put up all 51 curve charts plotting per capita income for each state and DC, I shall present to you a few tables.

The first table shows the change in income per head from various dates in the past.



Nevada has been the best place to live since Peak GDP merely because Nevadans enjoyed the smallest decline in income per resident expressed in True Dollars™.




The second table shows how the states rank by changes in income as expressed in the percents above.



It fails to surprise that car making country — Michigan and Ohio sit at the bottom. Also, who wouldn't expect high-tax states like New York and Illinois to be  near the bottom. It surprises that residents of upstate New York continue to pay taxes to feed the residents of New York City. Likewise, it seems the residents of Chicago have the rest of Illinoisans held hostage.

The third table shows how the states rank by income per head at Peak GDP in True Dollars™, Q4 2007, and for the latest report (Q3 2014 as of this writing). Also, the table reveals the per cap income percentile for each state.

This table can give you an idea in which states living is declining and in which states living is improving.



For any state, if the number in the second column is larger than the number in the first column, living is worsening in that state.

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JUNE 2015 MANUFACTURERS' SHIPMENTS, INVENTORIES, AND ORDERS — NEW ORDERS. IT'S ALMOST ALL DARK WITH A FEW RAYS OF HOPE.

So, the worker bees at the Bureau of the Census have released the April data for the June 2015 Manufacturers' Shipments, Inventories, and Orders report.

After putting the data in True Dollars™, for new orders, the change from the previous month looks bad along with the change from the previous year as well as from five years ago. Only the change from the previous quarter looks good.



There are a few bright spots, though. It is from here that a basis of true recovery likely is forming.

The industries that are showing consistent bettering are construction materials, electric components, industrial machinery, material handling, ferrous metal foundries, iron and steel mills.

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TODAY'S ECONOMY IS THE SAME AS AMERICA IN 1975. Q1 2015 GDP REVISION.

The Bureau of Economic Analysis workers released the revised numbers to first quarter GDP. In the 21st century, one would expect that government workers could release GDP data monthly and not seasonally adjusted.

As no one uses money anymore — coined metal by weight and fineness — there is little cause to adjust data for seasonality. Gold and silver don't get shipped to "money center" banks by rural farm bankers to earn interest anymore. As there is no money, that kind of banking hasn't existed for tens of decades. Thus, there isn't a seasonality effect in the economy anymore.

Well, GDP has now fallen to about what it was for the first quarter of 1975 during the Greatest Depression.



The change in True GDP as measured in True Dollars™ is quite revealing. All who have lived through these years know how accurate the chart tracks good times and bad times.

Yet, because of the power of persuasion-in-propaganda and peer pressure effects of crowds, most today, believe they have been living in an economic recovery, albeit a slow one, merely because they have heard that sermon repeatedly and are afraid to believe otherwise.

The propaganda isn't true. Americans have been living in the Greatest Depression after having lived through the Greenspan-Bernanke Great Inflation, the biggest credit bubble in the history of mankind.



The year-over-year change yields a much clearer picture. The economy is bettering but hasn't recovered. Not until the line crosses over the zero mark can anyone claim the economy has recovered.


And while the economy crashed after the Banking Crisis of 2008, an inevitable crisis brought on by the Greenspan-Bernanke Great Inflation, the signs of trouble arose by Q2 2006. In spite of claims to the contrary, the last decent economic run Americans experienced began Q2 1994 and ended Q4 2000, with the best of those times ending Q1 1997.

The worst action Federal Reserve central bankers could have done, they did. They did so precisely because Fed Res bankers don't understand capitalism and how capitalism works, at all.

Rather than cut interest rates to near zero and engage in Quantitative Easing, the truest definition of voodoo economics, Fed Res bankers ought to have pushed interest rates higher faster. Cutting rates impaired extant capital bought on credit by enterprisers who operated prudently. To maintain return on capital, such enterprisers were forced to do the only act they could, cut labor.

Meanwhile, even at low rates, new entrants could not come into markets, borrowing credit to buy new capital and thus put Americans to work since even at those low rates, returns to any new capital could not materialize. In short, if Americans aren't workers and thus lack wages, they can't buy goods and services at prices needed to gain returns to capital.

Academician economists with their phony doctrine of economics are quite wrong. Fed Res central bankers have been quite wrong. Congressmen, whether House members or Senators, have been quite clueless.

The true fixes likely never will happen.

1. Fed Res bankers need to be stripped of their power to set the inter-bank lending rate (Fed Funds Rate) as such a rate is the basis for commercial lending rates.
   
   Such bankers lack omniscience. They don't know what commercial rates ought to be.
   
   Instead, rates ought to be set in futures markets. Futures markets are why Americans never starve and never run out of energy.
2. Congressional-backed mortgage securities need to end, which means so-called Government-Sponsored Enterprises (GSE) such as Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) need to be shuttered.
   
   Bankers need risk. With the advent of mortgage-backed securities (MBS) guaranteed by successive U.S. Congresses, bankers have lost their bearings and have become imprudent in the practice of banking.
   
   MBS worked for bankers as the source of structured investment to pay off deposits until such didn't anymore. Think about the perversity of it all.
   
   Bankers sell credit to borrowers and buy rights of action against borrowers called mortgages. Then bankers sell those rights to U.S. Congresses through their GSE agencies. After bundling mortgages into securities, GSEs sell those MBS to bankers, effectively selling back to bankers the mortgages they originated, but now with risk to bankers stripped out.
3. By constitutional amendment, all legislators need their taxing authority severely limited. No American should be forced to pay more than 10% to 12% of her or his income in total to all levels of legislators.
   
   By significantly restricting taxation authority, legislators would have their borrowing capacity restricted significantly.  Thus, legislating would become challenging.
   
   Each year, there should be contentious fighting by members of the House and Senate as to what gets funded and by how much. Thus, only the most important legislation with the greatest effect for the most people, if not all, should be debated.
   
   And the same thing should happen in the states and the counties.
   
   Legislation should be hard to come by. Everything should be a contentious fight among legislators. Legislating should be a pain-in-the-ass, a hard job, so hard that only the most important issues should be debated and decided upon. It should be so hard that only the most tenacious and thoughtful persons should be attracted to do the work.
4. Working-age immigration needs to be restricted, likely for decades. If Americans want their wages to rise in True Dollars and thus experience a rise in buying power, they must awaken to reality and agitate for restricted immigration, say to no more than 5% of  total population each year.
   
   Wages and capital are interlinked. Wages are a consequence of producing wealth under efficiency. The more wealth produced and gained by each worker, the higher wages can rise.
   
   High capital spending causes high wages. Wages rise when capital spending per worker rises.
   
   Only in proportion as labor becomes pricier that it becomes profitable to use cheaper methods (capital) to amplify labor. Capital spending arises because of likely increasing returns to capital.
   
   Labor becomes pricier only under a dearth of workers. When there is an abundance of workers, labor is cheap.
   
   Heed my dictum. Labor makes property. Capital makes property efficiently. 
   
   Capital becomes a factor in production only if in using capital, workers can produce property in stock or in work cheaper than by producing property in those things without capital. Without capital, there is little reason to organize workers. Without capital, everyone lives at bare subsistence.
   
   Before the industrial era, almost all Americans were poor, barely living above bare subsistence poverty. Almost all were farmers who traded little.  Farmers had little capital. There were hand tools and maybe a few plow horses.
   
   The few "wealthy" Americans were those involved in shipping. Ships of shipping, of course, are capital.
   
   Under the automation of industrialism, true wages or "real" wages if said by economists rose and rose substantially. As Americans added machinery, which, of course, is capital, workers' buying power as expressed in true pay rose.

Both excessive immigration and suppressed interest rates gut the return to capital. Such policies wreck capitalism. The U.S. Congress wrecks the return to capital by expanding immigration and doing nothing about illegal aliens. Fed Res Bankers wreck the return to capital by engaging in Near Zero Interest Rate Policy (N-ZERP).

If Americans desire to live in a golden age, like Americans of the past, say between the 1950s and 1960s, they need to return to living by capitalism. That means the fixes above must happen.

I'm right. Guys like Peter Schiff are right, intuitively, most times, except guys like Peter Schiff don't have the numbers to back up their claims. I do.

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EXISTING HOME SALES REVEALS OMINOUS BLACK CLOUD OVER THE U.S. ECONOMY. STILL THESE ARE THE BEST TIMES TO BUY RESIDENTIAL REALTY

While some await the Census Bureau workers' next release of New Residential Sales data on May 26, 2015, the National Assoication of Relators have released Existing Home Sales data. The story looks bleak.



Always, numbers without context lack meaning.

While Existing House Sales looked to be bettering from the low of Q4 2008, that bettering stopped August 2013. Since then the trend has been worsening.


In spite of the worsening state of existing house sales, if you have the income, likely these are among the best days to buy a house in decades.







However, far too many Americans cannot swing a mortgage to buy a house. That, my readers, is the biggest problem vexing the economy.



There are many could-be buyers, but few would-be buyers because so few have the means to swing a mortgage. And yet, True Dollar™ prices run near 50% off.




The inane policy of Quantitative Easing impaired extant capital. To restore returns to capital bought with credit, enterprisers had to cut labor.

After all, wages arise solely from capital. Absent capital, there can be no wages.

Not until all of the impaired capital has been written off, can enterprisers begin to undertake new capital on much lower interest rates. Yet, once enterprisers can, new capital formation will give rise to wages.

We're catching glimpses of this dynamic of capitalism expressed in the labor markets. First there was massive layoffs, unemployment and the need to collect SNAP food welfare from Congress. Of late, there has been a steady decline in True Unemployment in the working age population.

Enjoy one from one of my all-time faves, The Boys!

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CONSTRUCTION SPENDING REPORT SHOWS THE DEPRESSION STATE OF THE U.S. ECONOMY

So a week ago this past Friday, on May 1, 2015, the Census Bureau of the Department of Commerce released the Value of Construction Put in Place Survey (VIP). The VIP is a report of  provides monthly estimates of the total dollar outlay of construction work in the U.S.A.



The survey covers construction work done each month on new structures or improvements to existing structures for private and public sectors. Data estimates include the cost of labor and materials, cost of architectural and engineering work, overhead costs, interest and taxes paid during construction, and contractor’s profits.

After removing the effects of monetary accretion, chart after chart reveals the sorry state of construction in the USA.

Soon, I shall be releasing a special web service that has all of the charts derived from this survey, updated automatically. This service will have all of the key economic indicator surveys, price adjusted so you can understand reality.

For now, though, I want to share with you a few key charts from the VIP.















One of the few bright spots on construction spending can been seen in private enterprise spending on manufacturing.

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ELECTRICITY AND GASOLINE PRODUCTION ARE WAY DOWN. BUT BEA AGENTS CLAIM THE ECONOMY IS GROWING.

On Wednesday, April 29, 2015, workers at the Bureau of Economic Analysis of the Department of Commerce told the world that after adjusted for price changes, real gross domestic product increased at an annual rate of 0.2% in Q1 of 2015.

All of the world's most popular financial bloggers as well as popular Ph.D. academicians working in the field of economics parroted that silliness, which makes me wonder why anyone reads and believes anything they publish.

Of course, the BEA report is little more than a work of foolery. True GDP — GDP after removing the effects of monetary accretion — shows the U.S. economy continues to shrink during Americans' Greatest Depression.

From Q4 2014 to Q1 2015, True GDP shrank -2.1%. Year-over-year, True GDP has shrunk -3%. And since peak True GDP driven up the by the Alan Greenspan-Ben Bernanke Inflation Bubble, the biggest credit bubble in the history of mankind, True GDP has shrunk -44.9%, shockingly so.

How could anyone believe the economy is growing when energy usage by each American has fallen as much as it has?









The recent gasoline numbers prove interesting. With a substantial drop in prices, Americans bought more gasoline over the last two years. However, that trend has stopped over the last six months. Americans bought less gasoline last month than the average over the last six months.




Everyone should listen to me because ...

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OIL PRICES. GASOLINE PRICES. THE LOWS KEEP COMING. PRICES REFLECT THE GREATEST DEPRESSION REALITY.

On May 6, 2015, the USA Today published a work by Evan Kelly (Oilprice.com) who claims oil prices are up. Also, on the same day, the jokers at Reuters report that oil prices hit 2015 peaks today.

Such is the kind of foolery you can read everywhere published by mainstream media.  After removing the effects of inflation, prices are near ten-year lows. Prices are low because Americans still are living through an economic depression that continues to get worse.






































Be sure to check out the other recent works on the Greatest Depression still ongoing.

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FEWER MILES DRIVEN FOR EACH AMERICAN. THE ECONOMY IS DRIVING IN THE SLOW LANE WITH ITS FLASHERS ON.

Workers at the Federal Reserve give you this chart every month. If you relied on
this chart, you would think it reveals something positive. After all, it shows that vehicle miles driven are near an all-time high.



However, the chart lacks context. As I teach always, without context, explanation is meaningless.

It is not the total miles that count, but the total miles each American 16 and older that counts.





Driving peaked between 2001 and 2005.

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S&P 500 STILL NO WHERE NEAR ALL-TIME HIGH. CASH ACCRETION AND RHETORIC DECEIVES MANY.

In spite of the cringe-worthy stupidity that gets parroted by those working in financial news media of U.S. stocks near all-time highs, after removing the effects of inflation, stocks are no where near all-time highs.

Reality:



Fantasy:

If only almost all would stop with their silliness and begin to think, they would being to question how can stocks be at all-time highs if Congress-provided food welfare, SNAP (aka, food stamps) stays near all-time highs (SEE: YELLEN. THE FED, THE LIES, THE FAKE RECOVERY. 46 MILLION NEEDY AMERICANS STILL NEED FOOD STAMPS).

True record stock markets indexes would reflect an economy firing on all cylinders, with everyone who wants a job having one, with few needing Congress-provided welfare.

Since the S&P true crash at February 1, 2009, the collusion between those at the Federal Reserve and those of the U.S. Congress have managed to bleed into circulation 1.53 times the sum of cash in circulation at the crash. Said another way, there are 53% more dollars in circulation today (as of March 1, 2015) than there were on February 1, 2009.




So unless Americans massively increased their output of electricity, food, gasoline, clothing, steel, movie tickets and so on, no one should believe in any of the rhetoric about a growing economy or all-time highs stocks.

Growing up, never would I have believed that most adults could be as stupid as they are while some adults know no boundaries when it comes to being deceitful.

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COMMERCIAL BANK CREDIT FALLING STILL. REPORTS OF A US ECONOMY EXPANSION ARE WRONG.

Commercial banking has been the mainstay of the economy since the mid 1800s. When bankers extend enough of their bank credit, takers produce more in hopes of earning profits. Most times, under prudent credit lending, the economy expands.

In the days of money — coined metal by weight and fineness — bank credit expansion was easier to detect as ever more bank notes would circulate from banks of issue. When prices would get pushed up quite high, prudent men knew that a bank crisis would be forthcoming.

Today, it's much harder to see such things as no one has money. Today, everyone only has cash, which is evidence of deposits in circulation, as well as deposits that can get negotiated by check or so-called electronic transfer.

When commercial bank credit is falling, there is no way the economy could possibly be expanding. And yet, true credit is falling while politicians and Federal Reserve bankers tell you an expansion is underway.




The commercial picture doesn't look good.






The consumer picture looks as bleak.





Residential realty looks bad. Likely, it's a great time to buy a house, if you can as true prices likely are quite low, historically.


In fact, the whole realty part of commercial banking is quite bad.

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AMERICANS LIVE IN THE GREATEST DEPRESSION STILL. NO RECOVERY. NO EXPANSION. IT'S ALL BEEN A PACK OF LIES.

For those who read Bizarro Theater, I ask you to spread the word about this important work.



Back on April 14, 2015, I released the charts from the U.S. Census Bureau on Advance Monthly Sales for Retail and Food Services for March 2015 adjusted for inflation (see: ADVANCE RETAIL SALES SHOW EIGHT YEARS OF LIES. WHAT RECOVERY? DEPRESSIONS NEVER LASTED THIS LONG WHEN AMERICANS HAD MONEY.)

In chart after chart, you see the true picture of retail. There isn't a sector of retail that has not experienced a decline in sales from peaks happening between Q4 2007 and Q3 2008. Some sectors like grocery retailers and food and beverage retailers hit their respective peaks in Q4 2000.

Cars, other vehicles and parts sales for such hit a peak way back in Q4 2001. It should not surprise then why car makers begged for bailouts.

And everywhere else you can look from manufacturers' new orders and personal income to savings and investment, you see the same pattern of downward curves. In short, the economy has been shrinking for years in spite of the lies from Janet Yellen, her predecessor Ben Bernanke, President Obama and many TV blabber heads.

The Federal Reserve System and its workers have failed consistently at managing the economy. They cannot do it. 

What execs at the Federal Reserve System are successful at doing is colluding with successive U.S. Congresses to keep Americans from agitating for a return to money — coined metal by weight and fineness. Having legal tender bank notes and checkable deposits as the only means of debt settlement to U.S. Congress keeps banking going in spite of the needs of Americans.

First up is GDP. True GDP is down 2.1% from Q4 2014 to Q1 2015.

Here is the state of acquiring capital for production. If the economy were growing, this curve should be sloping upward to the right.




Here is what manufacturing looks like.














And all of those charts and many more that will be published with frequency and made available free to those who subscribe to various priced-products all show the same downward trend.

Spending by Americans constitutes more than 2/3's of the economy. Americans true disposable income keeps falling.







Therefore Americans can't spend.



And enterprisers can't earn.









And few can save on falling true incomes.





And few can profit on falling incomes.



But U.S Congress' Obamacare is increasing Medicaid income. And that readers, is the crowning achievement of six years of Obama and his congresses.

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ADVANCE RETAIL SALES SHOW EIGHT YEARS OF LIES. WHAT RECOVERY? DEPRESSIONS NEVER LASTED THIS LONG WHEN AMERICANS HAD MONEY.

Well, the U.S. Census Bureau has released the Advance Monthly Sales for Retail and Food Services for March 2015. Suffice to say, the propagandists report that retail sales are up. Always, they do. That is easy enough to do under a regime of ongoing cash accretion.

For eight years, agents of propaganda for the President, the Congress, and the Federal Reserve have told you there was a crisis that needed urgent action. And after the crisis had been handled, these same agents told you an economic recovery had been underway.



Well, all of that has been outright lies, big lies, whoppers of epic proportion. The crisis was the making of Congreses and commercial bankers precisely because bankers came to rely on mortgage-backed securities created by the agents of Congress, Freddy Mac and Fannie Mae, as reserves from which to meet liabilities.

Politicians, appointed officials, presidents and idiot economist academicians have lied to your faces about the crisis. And after dealing with the crisis, these same despicable, unmanly cowards have lied to you continuously about a fake recovery.

Because you are an adult,  you should expect politicians to lie. Idiot economist academicians lie mostly because they are too stupid to know their doctrines, which they have accepted as dogma are quite false.

As Americans, we are stuck with liarbirds.

I have shown you these lies in these stories and many more:

• ECONOMIC EXPANSION? RECOVERY? SHUT UP ALREADY AND STOP LYING ABOUT ANY RECOVERY.MUCH LESS ANY EXPANSION.
• AMERICAN CORPORATE PROFITS STILL IN DECLINE AND STILL TOO HIGH. SEE THE TRUE PICTURE.
• YELLEN. THE FED, THE LIES, THE FAKE RECOVERY. 46 MILLION NEEDY AMERICANS STILL NEED FOOD STAMPS.
• ANOTHER MONTH AND YET ANOTHER UNEMPLOYMENT FANTASY PEDDLED BY BY THE BLS.
• DAMMIT JANET. THE USA ECONOMY RECOVERY HAS BEEN DERAILED YET AGAIN.
• POLITICIANS AND TV BLABBER HEADS HAVE LIED TO YOU FOR YEARS ABOUT THE ECONOMY. SEE THE TRUTH.
• THE SECRETS OF AUTOMATED CLEARINGS, GDP AND THE ECONOMY. RECOVERY? WHEN?

The foregoing have charts on true GDP, true bank credit, corporate true profits and true bank clearings. You should read those to see the charts at least. You can use these charts to steer your way through commerce. 

There hasn't been any recovery because bankers at the Federal Reserve do not understand commerce at all. Economist academician Ben Bernanke, a guy who never worked in a for-profit industry as an adult, indeed knew not what he was doing with his stupid Quantitative Easing. And his follower, Janet Yellen is little better.

By suppressing interest rates and thus cheapening credit, Bernanke and Yellen have killed the the return to capital for those with extant capital paid for with credit at higher rates borrowed upon expectation of higher prices.  This has resulted in unnecessarily lengthened, high unemployment followed by capital growth restriction and thus true wage growth impairment.

In short, both Bernanke and Yellen have impaired capital. Without sound capital, wages can't get paid. Without wages, few can consume to any extent.

Look at these charts. These charts support exactly that. None of these charts dealing with the advance monthly sales for retail and food services reveals any recovery. All the charts show ongoing decline.

Total Retail and Total Restaurants

Cars, Trucks, other Vehicles, Parts, and Gasoline

THE BRIGHT SPOT: Non-Store Retailing

Although non-store retailing (Internet shopping, mostly) has fallen since the peak, it hasn't fallen off as bad as every other sector of retailing.

When Americans had money — coined metal by weight and fineness — never did trade depressions last as long. It's only since the advent of the Federal Reserve and the replacement of money with cash as legalized tender that depressions have lasted this long. Mortgage-backed securities issued by the agencies of Congress only have made banking and the economy worse.

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ECONOMIC EXPANSION? RECOVERY? SHUT UP ALREADY AND STOP LYING ABOUT ANY RECOVERY.MUCH LESS ANY EXPANSION.

As I showed back in April in AMERICAN CORPORATE PROFITS STILL IN DECLINE AND STILL TOO HIGH. SEE THE TRUE PICTURE, corporate profits are falling. Never does the economy expand on falling true corporate profits.

As I wrote back in November 2014 in THE SECRETS OF AUTOMATED CLEARINGS, GDP AND THE ECONOMY. RECOVERY? WHEN?, 

Commercial banking is what gives rise to any advanced economy. In spite of popular misguided hatred for bankers, without commercial banking, you would be living at a bare subsistence. Nothing that you know would exist. 

Until True Commercial Clearings begin to rise, no one should expect the economy to be sound. Until True Government Clearings begin to rise steadily, no one should believe an expansion is under way.

There is no reality to any claims of the USA economy in expansion. It's not even in recovery. The economy has been contracting every year since peak True GDP of Q4 2007.

Commercial banking clearings activity fails to support any propaganda about the economy pushed either by those of the Obama Administration or by those of the Federal Reserve.

Back in Q2 2013, it looked as if for moment, at long last, a true recovery could have been underway. That didn't hold. The same kind of head fake happened in Q3 2014.



That government clearings is about GDP reveals welfare spending support. That government clearings is in decline reveals fewer true taxes collected on falling true GDP.



The Federal Reserve ought to be required by Congress to provide Americans this data on monthly rather than quarterly and long after the quarter expires.

As well, it would be great if the likes of Obama and Yellen weren't such cowardly immoral cretins. If only they could mature, get tough and begin telling truth to all, that would be great.

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PARSING YELLEN'S YELLEN-SPEAK BLATHER. JANET YELLEN DECODED.

Today, Fed Res chairman, Janet Yellen gave a speech at the The New Normal Monetary Policy conference sponsored by the Federal Reserve Bank of San Francisco, San Francisco, California. Like her predecessors, Yellen speaks in an obtuse, truly meaningless language that needs to be decoded for anyone to gain meaning.

Luckily for you, I have done that. Here are the key parts decoded for you.



Janet Yellen said: With continued improvement in economic conditions, an increase in the target range for that rate [interbank lending rate] may well be warranted later this year.

What Yellen means: As Fed Res bankers, we decide how to set the Fed funds rate based on measures of profitability for the key banks that comprise the majority of commercial banking sales of the Federal Reserve System.

Janet Yellen said: We'll increase funds rate and its subsequent path will be determined by the Committee in light of incoming data on labor market conditions, inflation, and other aspects of the current expansion.

What Yellen means: We'll increase the FFR based on banking sales expansion and for no other reason.

Janet Yellen said: I will also discuss why most of my colleagues and I believe the return of the federal funds rate to a more normal level is likely to be gradual.

What Yellen means: The current FFR remains at an abnormal level. It is going to take a long time to restore the FFR to a normal level.

Janet Yellen said:  The Committee is now giving serious consideration to beginning to reduce later this year some of the extraordinary monetary policy accommodation currently in place.

What Yellen means: We're going to continue quantative easing (buying securities, mostly those from Congress), but perhaps not buy as much as we do now.

Janet Yellen said: Of course, we still have some way to go to reach our maximum employment goal.

What Yellen means: As bankers, we're not concerned if millions never get jobs. We seek to have enough employment to expand sales of banking products of our member bankers of the Federal Reserve System.

Janet Yellen said: The unemployment rate has not yet declined to the 5.0 to 5.2 percent range that most FOMC participants now consider to be normal in the longer run.

What Yellen means: We're trying to psy-op you into believing that a 5.2% unemployment rate, which means the ratio of those who looked for work in the last four weeks to the sum of those aforementioned with those who have jobs.

Janet Yellen said: But I think we can all agree that the recovery in the labor market has been substantial.

What Yellen means: It looks like there are enough people working for our bankers to offer more credit.

Janet Yellen said: I am cautiously optimistic that, in the context of moderate growth in aggregate output and spending, labor market conditions are likely to improve further in coming months. 

What Yellen means: I hope things better but we are not making our plans based on that.

Janet Yellen said: I think consumer spending is likely to expand at a good clip this year given such robust fundamentals as strong employment gains, boosts to real incomes from lower energy prices, continued increases in household wealth, and a relatively high level of consumer confidence.

What Yellen means: If gasoline prices remain low, this will free up discretionary spending from those who buy gasoline now.

Janet Yellen said: But overall, I anticipate that real gross domestic product is likely to expand somewhat faster than its potential in coming quarters, thereby promoting further gains in employment and declines in the unemployment rate.

What Yellen means: I hope that real GDP grows even though there is little potential for it.

Janet Yellen said: In assessing the actual strength of the labor market and the broader economy, we must bear in mind that these very welcome improvements have been achieved in the context of extraordinary monetary accommodation. 

What Yellen means: Without quantitative easing, the economy would be far worse than it already is.

Janet Yellen said: While the overall level of real activity now appears to be much closer to its potential than it was a year or two ago, the economy in an "underlying" sense remains quite weak by historical standards, for the simple reason that the increases in hiring and output that have been achieved thus far have required exceptionally low levels of short- and longer-term interest rates, reflecting a highly accommodative stance of monetary policy.

What Yellen means: The true potential of the economy is quite low. So, real sales are matching that quite low potential. The economy is in bad shape. It's weak. We know it. Don't you?

Janet Yellen said: Interest rates have been, and remain, very low, and if underlying conditions had truly returned to normal, the economy should be booming.

What Yellen means: If this economy were legit, we would have boom times give dollar strength and low oil prices. But because the economy isn't legit, we continue with quantitative easing and these horribly written speeches that I must deliver in public to convince you otherwise.

Janet Yellen said: Inflation as measured by the price index for personal consumption expenditures has been running below the FOMC's longer-run goal of 2 percent for a number of years, and on a 12-month basis is currently 1/4 percent. Some of the weakness in inflation likely reflects continuing slack in labor and product markets.

What Yellen means: Our bankers aren't selling enough credit instruments because many Americans who could work aren't working. Lacking income, they can't service debt if credit were offered to them.

Janet Yellen said: On balance, I therefore think it is appropriate for monetary policy to remain accommodative for some time, fostering an environment of tightening labor and product markets that, together with stable inflation expectations, will help move inflation up to 2 percent over the medium term.

What Yellen means: We're going to keep with quantitative easing until enough start ups cause serious competition to existing sellers of products. We hope that happens and  if it does, real hiring will happen and the economy will go back to normal. Besides, we don't have any other plan. We don't know what to do otherwise.

Janet Yellen said: The Committee's decision about when to begin reducing accommodation will depend importantly on how economic conditions actually evolve over time. Like most of my FOMC colleagues, I believe that the appropriate time has not yet arrived, but I expect that conditions may warrant an increase in the federal funds rate target sometime this year. 

What Yellen means: The economy is still a wreck. And if I say I expect maybe we could raise the FFR, it appears to you that we're in charge and everything is under control.

Janet Yellen said:  The near-zero setting for the federal funds rate has facilitated a sizable reduction in labor market slack over the past two years and appears to be consistent with further substantial gains. A modest increase in the federal funds rate would be highly unlikely to halt this progress, although such an increase might slow its pace somewhat.

What Yellen means: We're afraid if we were to raise the FFR, no hiring would arise.

Janet Yellen said: That said, we must be reasonably confident at the time of the first rate increase that inflation will move up over time to our 2 percent objective, and that such an action will not impede continued solid growth in employment and output.

What Yellen means: We're not raising the FFR until our bankers growth of credit products increases.


Janet Yellen said: A substantial body of theory, informed by considerable historical evidence, suggests that inflation will eventually begin to rise as resource utilization continues to tighten.

What Yellen means: Business execs will seek credit to outbid competitors for commodities when enough firms have entered markets. When that happens, our bankers shall be selling banking products at the rate we seek.

Janet Yellen said: With respect to wages, I anticipate that real wage gains for American workers are likely to pick up to a rate more in line with trend labor productivity growth as employment settles in at its maximum sustainable level.

What Yellen means: Employers won't pay higher wages until they buy and put to use more capital.

Janet Yellen said:  But the outlook for wages is highly uncertain even if price inflation does move back to 2 percent and labor market conditions continue to improve as projected. For example, we cannot be sure about the future pace of productivity growth; nor can we be sure about other factors, such as global competition, the nature of technological change, and trends in unionization, that may also influence the pace of real wage growth over time. These factors, which are outside of the Federal Reserve's control, likely explain why real wages have failed to keep pace with productivity growth for at least the past 15 years. 

What Yellen means: We don't care if Americans see an increase in real wages.  We care only if there is enough working with discretionary income to buy banking products.

Janet Yellen said:  I have argued that a pickup in neither wage nor price inflation is indispensable for me to achieve reasonable confidence that inflation will move back to 2 percent over time.

What Yellen means: Our bankers will sell products at the rate we want, eventually.

Janet Yellen said: That said, I would be uncomfortable raising the federal funds rate if readings on wage growth, core consumer prices, and other indicators of underlying inflation pressures were to weaken, if market-based measures of inflation compensation were to fall appreciably further, or if survey-based measures were to begin to decline noticeably.

What Yellen means: We're keeping the FFR where we want it, anytime.

Janet Yellen said:  But the prescription offered by the Taylor rule changes significantly if one instead assumes, as I do, that appreciable slack still remains in the labor market, and that the economy's equilibrium real federal funds rate--that is, the real rate consistent with the economy achieving maximum employment and price stability over the medium term--is currently quite low by historical standards.

What Yellen means: We're keeping the FFR where we want it, anytime, and by that, we mean we're continuing with quantitative easing for awhile yet.

Janet Yellen said:  Under assumptions that I consider more realistic under present circumstances, the same rules call for the federal funds rate to be close to zero.

What Yellen means: As of now, there will be no change to the FFR. It's staying near zero.

Janet Yellen said:  The FOMC will, of course, carefully deliberate about when to begin the process of removing policy accommodation. But the significance of this decision should not be overemphasized, because what matters for financial conditions and the broader economy is the entire expected path of short-term interest rates and not the precise timing of the first rate increase. 

What Yellen means: We're going to talk about raising rates, endlessly talk about it. But when we do, it's not the first rate increase that you should care about, but the last one, because the last one means the economy shall be in recession again after a recovery. However, we're far from having any recovery.

Janet Yellen said:  the Committee's decisions will be data dependent, reflecting evolving judgments concerning the implications of incoming information for the economic outlook. We cannot be certain about the underlying strength of the expansion, the maximum level of employment consistent with price stability, or the longer-run level of interest rates consistent with maximum employment. Policy must adjust as our understanding of these factors changes.

What Yellen means: We will raise the FFR when we see the necessary, legit improvement in the economy.

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