Fed Delivers REAL State of the Union Message

It was with an almost great sense of irony that on Wednesday the Federal Reserve Board released its own “State of the Union” message. And in doing so, the Fed told us all we need to know about the U.S. economy. Here is an excerpt:
“The Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions–including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.”
Say what? What does all of this jargon actually mean beyond the fact that seniors and other savers living on fixed incomes can expect to continue to get cheated out of a decent rate of return on their interest bearing investments until 2014?
In layman’s terms, the phrase: “Anticipates economic conditions including low rates of resource utilization,” means the Fed forecasts no significant job creation and no significant increase in economic activity until at least 2014.
Hey wait a second! This statement by the Fed is in direct contradiction to the president’s State of the Union message delivered less than 15 hours earlier when he uttered the following: “We are poised for progress. Two years after the worst recession most of us have ever known, the stock market has come roaring back. Corporate profits are up. The economy is growing again.”

By the way, the roaring stock market the president referred to actually produced a 2.11% rate of return in 2011, as measured by the S & P 500 index. Now, a 2.11% return could be called many things by many people, but only a smoke blowing politician seeking re-election would call it “roaring.”

So there you have it. Those running for re-election say we are poised for progress. And those making critical interest rate policies that squeeze seniors and others relying on interest income, say they must continue to severely harm all interest seeking savers because the economy is so bad they are afraid of returning interest rates to normal levels.

There is even more deception in the shell game being played on seniors and other savers. Those who continue to preside over the borrowing of $4 billion dollars every day don’t really want to ever pay savers and seniors normal interest rates. Instead they want to use their iron grip on the Federal Reserve's policies to make sure the can borrow cheap. They are simply hoping voters living on fixed incomes don’t connect the dots linking reckless fiscal policies to their own lost interest income streams.

Fed Delivers REAL State of the Union Message