That’s what the Federal Reserve thinks of you folks not living on Wall Street.
Great Facilitator of big government Federal Reserve is finally having to admit that, after six years of printing trillions of dollars and giving essentially free to the too big to fail or trust banks on Wall Street, their Quantitative Easing and Zero Interest Rate Policy program has failed to stimulate the economy and put people back to work (it did do fantastic job, however, of making the rich much richer). So, like all personalities or entities in Washington, D.C., they are looking for someone else to blame Not surprisingly, that someone else is you. Those that live in the rarefied air of the Fed have little to no respect for people who are not rich and they have a couple of messages for you:
Stop hoarding your money!
The St. Louis Federal Reserve had this explanation for why the economy sucks for everyone other than the One Percenters:
So why did the monetary base increase not cause a proportionate increase in either the general price level or GDP?
The answer lies in the private sector’s dramatic increase in their willingness to hoard money instead of spend it. Such an unprecedented increase in money demand has slowed down the velocity of money. _ (Source)
Hoarding? Seriously? Some of you on Main Street are doing well to stay even these last six years. Most of you, however, are seeing your standards of living declining. What money could you possibly be hoarding? I guess the Fed’s thing is that if they are going to lie about who’s to blame, it may as well be a big lie.
Janet Yellen: America’s Marie Antoinette
Marie Antoinette, when informed that the French had no bread to eat, supposedly responded : “let them eat cake.” Janet Yellen, Chair of the Federal Reserve, also has a message for the teeming masses:
Speech–Chair Janet L. Yellen
The Importance of Asset Building for Low and Middle Income Households
At the Corporation for Enterprise Development’s 2014 Assets Learning Conference, Washington, D.C. (via prerecorded video) _ (Source)
In other words, what she said was : “Let them get rich.” Why didn’t you think of that? If six years ago you had sold everything you owned and lived like paupers, you could have invested most of your income on Wall Street and you would all now be rich. But, instead you apparently hoard all of your money. There’s probably a good reason she gave her message by prerecorded video.
I suggest you all send a reply message to the Fed. Please stand up and face in the direction of Washington, raise your right hand with the back of your facing away from you, and, at the count of three, fold all of your fingers except the middle one. 1 … 2 ….
Well, that’s what I’m thinking. What are your thoughts?
8 thoughts on “The economy isn’t growing because you’re hoarding money. Also, if you had any brains you’d get rich.”
I long for the days when cashing in a couple of soda bottle empties could get you a hot dog and an orange drink. Today that’ll cost you five bucks . And even so we still mange to hoard our monopoly money. With our advanced money managing skills maybe we the unchosen should run the evonomy.
Yes sir! Two cent bottles and nicle bottles. Spent a lot of mornings on my bike looking for bottles along the side of the streets and, when I had enough, I’d cash them in and by myself a treat. Those were days, Peter!
If only we serfs were more grateful to our lords and masters.
Our lords and masters could care less if we are grateful or not.
Not to worry. The rate we are going we will all be Hunter/Gatherers. Nice post Jim.
And there will be hunters hunting the gatherers. Keep your powder dry, my friend.
So, needing to use more of my money to pay bills as everything gets more expensive is now hoarding?! The fact is people have less disposable income, we are not hoarding anything. I should just get rich? Why didn’t I think of that?
Heads they win. Tails you lose. That;s what America is becoming or maybe already is.