The Federal Reserve has never had a mandate to either listen to, or enact, polices predicated towards the equity markets in the United States or abroad. But since the middle of the Greenspan era, and the rise of investment banks controlling major portions of the stock markets through high frequency trading, the implementations of the Greenspan Put, the Bernanke Put, and after yesterday, the Yellen Put, have clearly shown that the central bank is all about protecting the rich, and now the Census Bureau has validated this assertion.
In a new report published by the Census Bureau, only the top 10% have seen their incomes rise since the top of the Housing Bubble era of 2006, and this in part has been due to taxpayer funded bailouts, the crushing of small businesses through their inability to get capital, corporate layoffs and stock buybacks, and most importantly, the Federal Reserve pumping tens of trillions of dollars onto Wall Street that never trickled down to the lower 90%.
U.S. Census Bureau data out Wednesday underscore just how lousy the recovery has been if you aren’t rich.
Looking at eight groups of household income selected by Census, only those whose incomes are already high to begin with have seen improvement since 2006, the last full year of expansion before the recession. Households at the 95th and 90th percentiles had larger earnings through 2014, the latest year for which data are available.
Income for all others was below 2006 levels, indicating they’re still clawing their way out of the hole caused by the deepest recession in the post-World War II era. – Bloomberg
In addition to this new data, the Census Bureau also published a report earlier this week that showed median household income has declined in the same time period (since 2006) to levels not seen since 1998, which was the height of the Dot Com bubble.
The reality of the situation today is, the Fed is not bound to the mandates instilled in their creation back in 1913 because the rules changed in 1944. No longer was the dollar simply limited to domestic parameters which made focusing on inflation and unemployment the primary charge of the central bank because once the dollar became the global reserve, policies made had instantaneous effects on currencies and economies all around the world.
So when Fed Chairman Janet Yellen said yesterday that the central bank was watching global stability as a measurement for raising interest rates, she was finally speaking some truth as the Fed has been doing this covertly for decades anyway. However, what she failed to admit in that same speech on Sept. 17 was the lie she made when she said that Fed policies were not the cause of the increase in wealth inequality, as the newest data from the Census Bureau proves this has been the case.
Kenneth Schortgen Jr is a writer for Secretsofthefed.com, Examiner.com, Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.