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[YouTube] The Federal Reserve: There Will Be No Economic Recovery.


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MP3: http://www.fdrpodcasts.com/#/3160/the-federal-reserve-there-will-be-no-economic-recovery
Soundcloud: https://soundcloud.com/stefan-molyneux/fdr-3160-the-federal-reserve-there-will-be-no-economic-recovery

On October 19th, 2014, the Federal Reserve ceased the third round of quantitative easing (QE3) and all but promised to raise the interest rate by the end of 2015. It was widely speculated that an increase in the interest rate would occur in September, but the month came and went without change.

It was reported that the Federal Reserve wanted to see more improvement in the economy before raising the key interest rate. Despite approximately $3.5 trillion worth of asset purchases since 2007 and the unprecedented and prolonged decrease of the Effective Federal Funds Rate to a historical low - effectively 0% - the economy had yet to recover enough to warrant a rate increase.

With their “the economy is recovering, we promise” credibility on the line, the Federal Reserve increased the interest rate 0.25% on December 16th - effectively adjusting it in name only and leaving it at historic lows. This didn’t stop the mainstream media from proclaiming the "dawning of a new era,” announcing an end to “an era of easy money that helped save the nation from another Great Depression."

There Will Be No Economic Recovery. Prepare Yourself Accordingly.

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Effective Federal Funds Rate
https://www.quandl.com/data/FRED/DFF-Effective-Federal-Funds-Rate

Major Stock Indexes vs. Federal Reserve Interest Rate
https://research.stlouisfed.org/fred2/graph/?g=1Gvm

Federal Reserve: Total Assets
http://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm

Major Stock Indexes vs. Federal Reserve Assets
https://research.stlouisfed.org/fred2/series/DJIA
https://research.stlouisfed.org/fred2/series/NASDAQCOM
https://research.stlouisfed.org/fred2/series/SP500
http://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm

Get more from Stefan Molyneux and Freedomain Radio including books, podcasts and other info at: http://www.freedomainradio.com
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Great presentation. A minor historical correction though: The Hyperinflation in Weimar was not connected to the rise of Hitler. The Inflation began as a response to pay of government debts and ended in 1923. The crash in 1932 was deflationary in Austria and Germany. In fact, Brüning the chancellor before Hitler instituted an economic regime that looks like Austerity does today. 

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