United States – Federal Reserve Credibility against Economic Viability

December 22, 2018

United States – Federal Reserve Credibility

against

Economic Viability

Padmini Arhant

Federal Reserve is all about defending own credibility against economic viability reflected in the continuous interest rates hike in September and now in December 2018. The Fed Chairman Jerome Powell attributed the rates hike to economic data in hand that in itself pose questions on the matter. The economic figures in 2018 related to every sector on borrowing affecting consumer price index (CPI) directly tied to inflation is suggestive of the reverse response rather than persistent higher interest rates adjustment. 

The latest interest rate hike inevitably impact housing market, auto loans, credit cards and student loans that are already stressed due to past actions from the Federal Reserve. The economy is being unnecessarily subject to induced recession through such arbitrary positions from the Federal Reserve. The other factor is imposing speculations in the stock market among public investors on potential impending economic crisis that the Federal Reserve poised as privy to without sharing information in the public domain. 

Seriously, thus far the institutions like the Federal Reserve lacking in transparency and accountability since onset until now defying open congressional probe on missing trillions of dollars from U.S. Treasury within their organization adapt to the favorite strategy of manufacturing crisis in the absence of none in the horizon. 

By and large those behind the global operation of politics, economy and more hopelessly rely on creating problems and dire straits for own survival and further prosperity with little or no concern on their egregious involvements exacerbating economic, political and social conditions in the domestic and global environment.  There is no doubt the engagement is intended to stymie progress considering the entities impunity to responsibility behind major setbacks in the economy, politics and global activities conforming to negative trend. 

The topic will focus on detailed analysis and review of Federal Reserve penchant for raising interest rates under the guise of controlling or containing inflation ignoring economic and market results leading to a tailspin in the short and long term. 

Federal Reserve credibility never existed to begin with given the manner the private organization comprising core board members by virtue of inheritance of power within a confined group set up as family structure disingenuously functioning as United States Federal monetary authority against constitutional norm. 

United States constitutional requirement for monetary policy and treasury is to be brought under republic statute contrary to long tradition of the critical monetary service outsourced to private banking institution in the name of Federal Reserve. 

Time for transfer of power from privately run Federal Reserve to public represented Congressional Authority eliminating exemptions from scrutiny and compliance on appropriate monetary practice. 

The private entity Federal Reserve mandating U. S. sovereign monetary policy with the latest move on rates increase in the range 2.25 – 2.50 percent is based on self convictions and the organization’s custom in contradiction to economic reality.

The credibility and competence of any private or public institution and enterprise emanates from recognition and realization of actual events and potential effects of contrasting decisions unlike the current action from the Federal Reserve.

Thank you.

Padmini Arhant

Author & Presnter Padmini Arhant

Prakrithi.PadminiArhant.com

U.S.Economy & Financial Markets

October 11, 2018

U.S.Economy & Financial Markets

Padmini Arhant

The Federal Reserve preparation to hike interest rates in December 2018 in consideration of historic lower unemployment and GDP forecasts is received cautiously with financial markets reaction to United States and China trade war alongside unnecessary economic sanctions against Iran and Venezuela having drastic impact on global economy.

The Federal Reserve move on gradual rate increase to maintain inflation at current 2 percent bearing low unemployment is a step focused on limited factors such as job and GDP data. However, the fact of the matter is there are other aspects with potential reverse outcome on Federal Reserve’s action to interest rates hike that merits attention.

On the job status, the unemployment figures might be impressively low. Nonetheless, the cash flow in the economy is still lagging in small and medium businesses and other areas of the economy involving direct consumer purchase such as the housing market and automobile industry.

In general, the consumer spending is fairly weak and reflected in retail industry poor performance with many brick and mortar stores struggling to survive in the anemic retail business. The retail figures at the end of holiday season this year will further indicate the condition one way or another. The conventional retail chains and big stores are facing tough competition from e-commerce with online giant like Amazon forcing  shutdowns on major retail stores unable to compete effectively given the popularity and convenience of online marketing.

The e-trade is a big challenge to standard retail business and that in a way controlling inflation on many goods and services in the market. Again, the purchasing power among majority of consumers in the middle and lower incomes category is static and even remain below the expected level despite low unemployment in the economy. One of the reasons behind this sluggish consumer spending is lack of fair income distribution.

Although the job market might appear to be favorable, the buying power among consumers on big budget items like home and cars as well as other essentials are nowhere near  anticipated market share with significant impact on construction industry and manufacturing sector.

On the international front, United States administration policy towards Iran and Venezuela is triggering currency devaluation in emerging economies like India and developing nations such as Pakistan, Turkey and countries in Latin America dependent on crude oil imports from overseas. The U.S. dollar pegged to oil trade, the strengthening of U.S. currency is mainly associated with global transactions in dollar and the alternative being euro depleting foreign currency reserves for most nations worldwide.

European economy barring Germany, Norway and few Nordic states are yet to recover from recession started back in 2007 and experienced until now. Many EU members like PIGS ( Portugal, Italy, Ireland, Greece and Spain) along with Eastern European EU states are not relieved from economic crisis and barely able to meet financial obligations amid EU enforced austerity contributing to depressed economic growth and development.

The debt saddled nations are driven towards debt servicing to enrich international monetary authorities and prominent bankers profiteering on the extraordinary debt burden of these countries confronted with liquidity crunch creating the dilemma of debt trap causing economic downturns for nations in this situation.

In the given scenario, euro as the optional trading currency is superficial posing needless strain on global economic activities especially in the backdrop of fragile European economy and United States politically motivated sanctions against Iran and Venezuela compounding the problems on the energy demands and supply chain for nations like India and China with massive energy consumption to fuel the economy. The other efforts in this context such as raising OPEC output to deal with United States sanctions on Iran and Venezuela do not satisfy market requirement that are already felt with unaffordable fuel prices in India, Pakistan, Sri Lanka and many parts of the world.

United States and Europe would be ultimately affected as the western multinational corporations are predominantly benefiting from global presence and operations right from production to sales, distribution and service  in many industries invariably exposed to common energy and economic issues striking the consumer base in Asia and other regions instrumental in boosting global economic progress.

The global economic regression is directly related to these unwanted events with immediate repercussions on allies and those behind the strategy. China trade war is another dimension with United States having granted the former MOST FAVORED NATION (MFN) status and many United States companies involved in manufacturing goods from China that are not only available in America but also in the global markets. China has long been the world’s central exporter and wholesaler with businesses from far and wide ignoring labor exploitation in addition to normal employment and environment violations in the profit-oriented system. As such, China’s reciprocation to U.S. actions are not without consequences for both economies engaged in mutual trade warfare.

Accordingly, discernment on decisions against China, Iran and Venezuela from the U.S. administration under President Donald Trump is critical to save the economy from possible meltdown in the aftermath of global economic decline that are visible in the wake of current account deficits among many nations trying to maneuver the difficult predicament of survival and resolution to impending economic woes generating anxiety in the global domain.

As for the Federal Reserve resolve to move forward on the overnight federal funds rates over the next year and beyond from the present 2 and 2.5 percent to about 3.4 percent to contain inflation at 2 percent would predictably slow the positive economic trend hurting prospects in the already suppressed housing market and retail sales as highlighted above.

The macroeconomic forecasts on United States GDP for third quarter at 3.7 percent and 2.6 percent for fourth quarter with the Federal Reserve revision showing higher growth figures based on the latest tax cuts and government spending prompting Federal Reserve position on premature rate increase neglect stagnancy in ordinary household income.

The mere job growth in the absence of affordable living standards confirm income disparity. The per capita average net income and cash flow determining consumer price index and inflation is trailing behind projections and proposed changes to rates could wipe the gains realized in the recession free economic span in the past decade until now.

In a nutshell, the exponential rise in minimum wage and average income i.e. per capita income in correlation with GDP is important besides minimizing joblessness in the economy prior to addressing inflation alone in the macro and micro economic management.

Thank you.

Padmini Arhant

PadminiArhant.com

Prakrithi.PadminiArhant.com 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States – Federal Reserve Banking Deregulation

June 1, 2018

Federal Reserve Banking Deregulation 

Padmini Arhant

The Federal Reserve vote on banking deregulation two days ago renamed as Volcker 2.0 from the earlier one Volcker rule named after the ex-Federal Reserve Chairman Paul Volcker merits attention. 

The deregulation favoring major banks apparently with bipartisan support that includes a Democrat Lael Brainard among three sitting Fed Governors is claimed as simplification of the previous version. 

As such, Congress having blocked the rule that allowed consumers recourse against banks in addition to repealing fair lending practice in auto industry stated to have discriminated minority borrowers from white peers do not bode well in the economy comprising diverse consumer base.

The  Federal Reserve move towards new rule Volcker 2.0 cheered among  finance sector lobbyists in Wall Street and big banks having been responsible for financial crisis drowning significant number of homeowners and ordinary citizens in deep financial situations forcing bankruptcy and foreclosures on many beyond salvation requires public debate and approval rather than decision among core members representing vested interests.

The taxpayer insured banks and public deposits in financial institutions and importantly mortgage securities deserve scrutiny and regulatory compliance considering the banking industry earlier ventures and unrelenting activities that led to taxpayers bailout of the banks and finance institutions.

The ordinary taxpayers were abandoned in the mortgage fiasco while the big banks and hedge fund companies were rescued using the same taxpayers hard earned tax dollars in the do or die call following financial sector debacle. 

What has been recognized by common citizenry from past experience and established now is there will be no such thing as Bank or Insurance Industry Bailouts using taxpayer funds regardless of any dire scenarios sketched in the SOS – Too Big to Fail moment.

Though the new rule reported to retain the earlier version’s restrictions on speculative trading also known as proprietary trading, however providing classifications on trading activities for possible risk laden investments at banks discretion are to be weighed carefully given the finance industry’s notable impulsive characteristics for undesirable options. 

The article will resume highlighting other concerns related to Wall Street and Federal Reserve measures to ease regulations that are meant to protect ordinary citizens and common taxpayers being the overwhelming majority in the economy against the top 1% targeted goals to continue business as usual at the former expense.

Thank you.

Padmini Arhant

Author & Presenter PadmjniArhant.com

Prakrithi.PadminiArhant.com 

Independent Probe – Crimes and Abuse of Power

August 4, 2017

Independent Probe – Crimes and Abuse of Power

By Padmini Arhant

The media discussion on conducting probe on Congressional aides should go beyond and involve high profile entities responsible for serious crimes ranging from treason, abuse of power, sponsoring terrorism, authorization of illegal invasion and occupation of foreign land under false pretext to billing the United States taxpayers phony bills that are routine.

Bush-Cheney administration raking a fortune viz. Halliburton and Kellogg Corporation at the expense of army personnel deprived of appropriate facilities during combat situation in Iraq is just one example amongst myriad exploitations.

Under the same administration, the former NAVY SEAL officer Erik Prince founded private army Black Water deployment in Iraq committing atrocities over there. The Black Water resurfaced under Xe Services operating in Pakistan in 2009 and then recruited in Ukraine by successor President Barack Obama administration. None of these regarded worthy of national address. 

The lies and deception on deceased Osama Bin Laden since 2001 maintained throughout both republican and democrat administrations with the latter claiming Abbottabad mission as a landmark victory in the absence of any evidence to public in the United States and the rest of the world. Subsequently, eliminating NAVY SEAL engaged in Abbottabad operation that also submerged along with other crimes at the helm somehow escaped media and press attention. 

BENGHAZI gate like everything else dismissed as unfortunate event despite serious dereliction of duty from the administration and then State Department leading to a major political and security fiasco. 

The former Congresswoman democrat Jane Harman connection to striking a deal on Israeli espionage agent apprehended following FBI investigation swept under the rug with little or no media focus for reasons well known are not the only issues granted impunity from crimes against citizens in the United States and world over.

On the other side – Why not shed light on Pentagon and Federal Reserve yet to account for more than $20 Trillion respectively evaporated with open threats and ultimatums issued to rare Congressional hearing daring to question the department and private institution profiteering from unaccountability?

Is there really a democracy?  If so, 

What kind of democracy would grant carte blanche authority to political parties, administrations, institutions and departments to run a muck and glorify their legacy as remarkable instead of holding them accountable?

Any incident regardless of activity related to ordinary citizen tried by controlled media prior to any formal investigations and charges from relevant authorities. On the contrary, the influential members, organizations and political figures monumental crimes, complicity and deliberate indulgence for self-interest and political aspirations causing enormous liability to the nation and taxpayers are completely ignored as inconvenient.

Their actions compromising national trust and integrity and most importantly resulting in loss of innocent lives in domestic and international front are either vehemently defended or discarded to protect fraternity and maintain status quo.

What democracy would have mandatory health insurance tied to penalty shifting the burden of costs on the saddled middle and lower income category not qualifying under Medicaid or tax credits not meeting premium and healthcare expense?

What democracy would preserve flawed electoral process like the electoral college at national level and Superdelegates in political party viz. United States democratic party overriding voter participation?

Are there any interest or initiatives to reform the archaic failed electoral system?  NO 

Instead any other country such as Venezuela reforming the political system for meaningful all inclusive democracy is condemned and punished with sanctions.

Any investigations and inquiry targeted for political reasons while approving blatant misuse of position, capitalizing from various ventures and deals by members in political circle and around them would not be tolerated in functioning democracy.\

Above all, the media and press collusion in suppressing facts substituted with fabrications and false propaganda is indicative of the demise of democracy.

Is there any more information required in the reality confirming that fascism rules the world?

Thank you.

Padmini Arhant

Author & Presenter PadminiArhant.com

Spouse in Divine Mission

 

 

 

United States – July 4th Celebration

July 3, 2017

By Padmini Arhant

United States celebrating independence anniversary on July 4th would be meaningful upon liberty and justice experienced by all transcending race, religion, economic and ethnic background.

Unfortunately, the social racial divide and economic disparity deprives many citizens from claiming equal rights witnessed in judicial outcome and deteriorating living standards among Native Americans, African Americans, Latinos, and immigrant population.

The increasing wealth and monopoly on fame, fortune and power characterized as elitism subjugate the rest with little or no concern for actions and decisions affecting majority. The apathy qualifying as narcissism is not a healthy trend given reliability on the less fortunate to work in harsh conditions making survival a challenge.

A free nation would not impose existing mandatory laws such as health insurance subscription with penalty upon failure to do so favoring profit centric health insurance industry without similar provisions tied to penalty on insurance industry regularly not meeting their end of the bargain.

In a real democracy, there would be no tolerance to private entities and foreign members like European Royals secret meeting behind closed doors barring public and citizens represented press from gaining information on policies regarding global matter and more than seven billion inhabitants fate.  The reference is to Bilderberg conclave held annually with attendees sworn to secrecy in heavily guarded location.

The free country would not selectively profile law abiding citizens under the guise of national security while granting immunity to members in the position of authority on treason, corruption and criminal dealings based on fraternity and mutual advantage.  

Then there is misrepresentation and false propaganda misusing communication resources to mislead the nation and world at large to maintain status quo.

United States could lead in many frontiers provided the nation is liberated from illegitimate incognito forces functioning by proxy to promote self and vested interests exerting supremacy and dominance proved counterproductive thus far.

United States efficiency and energy is a consolidation of efforts and contributions from people of diverse orientation working towards common goal to improve lives for self and others in different domains.

Accordingly, collective rather than exclusive progress in society would define fair income distribution alleviating burden on lower and middle- income class and socially disadvantaged segments bearing imbalance in the economy.

United States strategies in domestic and foreign affairs are premised on benefits to political class their campaign financiers, special interests and influential entities ignoring ramifications at national and international level.

The private ownership of federal reserve in control of monetary policy and money circulation further undermines United States independent status. With legislations directed to profit campaign donors from economic sector and those near and far, the electorate expectations are barely met disappointing voters in the otherwise opaque unaccountable and devious system.

National and state operation is outsourced to private management like the credit bureaus run by three specific private companies with no oversight apply arbitrary rules leaving the victims of home mortgage fraud and credit card exorbitant interest hikes by banks at their mercy.

As long as government remains a mechanism for private organizations, political factions and those forging close relations with insiders to promote agenda threatening unity, peace and economic development,

Freedom for all is a mere dream and available at a dear price.

July 4th arrives and remembered with joy every year. The day equal opportunity and greater accessibility for optimistic future to citizens across the spectrum is no longer a struggle, the celebration would be worthwhile.

Hope for a better tomorrow beginning at present sets the path to reach milestone.

Happy July 4th !

Peace to all!

Thank you.

Padmini Arhant

Author & Presenter PadminiArhant.com

Spouse in Divine Mission