Why is the establishment telling the truth about Federal Reserve, government failures?

All of a sudden, central bankers, media pundits and government institutions are telling the truth about how much the Federal Reserve has failed and pretty much denouncing the economic policies of Keynesianism welcomed by governments. Why is this happening out of nowhere? It’s remarkably stunning.

With market volatility, rising debt levels and a lackluster economic recovery, it seems as if a lot of elitists have admitted their failures. Is it as simple as all that? Not necessarily. As we have come to expect, the establishment always has something up its sleeve.

So just what has the establishment conceded to anyway? Well, it seems 2015 has been the year of honesty and correcting the mendacity. Or at least that’s what appears on the surface. Just to get an understanding of what we’re talking about, let’s take a look at some of the honest statements governments, media and central banks have made:

Stephen D. Williamson, vice president of the St. Louis Fed, admits quantitative easing didn’t boost the U.S. economy: “There is no work, to my knowledge, that establishes a link from QE to the ultimate goals of the Fed—inflation and real economic activity.”

Former Dallas Federal Reserve President on QE’s heroin abilities: “It does demonstrate that people are hooked on the heroin of quantitative easing.”

Former U.S. Treasury Secretary Larry Summers on QE in Europe: “It is a mistake to suppose that Q.E. is a panacea in Europe, or that it will be sufficient.”

William D. Cohan, American business writer, wrote a little bit of Austrian business cycle in the New York Times: “Like any commodity, the price of borrowing money — interest rates — should be determined by supply and demand, not by manipulation by a market behemoth. Essentially, the clever Q.E. program caused a widespread mispricing of risk, deluding investors into underestimating the risk of various financial assets they were buying.

“The only way to return the assessment of risk to something resembling normalcy is to stop the manipulation.”

Bank for International Settlements purported the world is accumulating too much debt from central banks: “Risk-taking in financial markets has gone on for too long. And the illusion that markets will remain liquid under stress has been too pervasive. The likelihood of turbulence will increase further if current extraordinary conditions are spun out. The more one stretches an elastic band, the more violently it snaps back.”

Goldman Sachs informed us that the world is drowning in debt: “The demographics in most major economies – including the [United States], in Europe and Japan —  are a major issue —  and present us with the question of how we are going to pay down the huge debt burden,” Wilson was quoted as saying, according to the London Telegraph. “With life expectancy increasing rapidly, we no longer have the young, working populations required to sustain a debt-driven economic model in the same way as we’ve managed to do in the past.”

Fed Chair Janet Yellen hints at market bubble: “overall measures of equity valuations are on the high side.”

Now, this is just a brief list of all of the admissions, concessions and economic lessons that the establishment is providing us with. There’s a lot more! Too bad it’s too late for their corrections. With $18 trillion in national debt, $120 trillion in unfunded liabilities and expenditures and an unstable stock market, these comments should have been made a very long time ago.

But why all of a sudden are they saying these things? It’s unknown right now. Perhaps they know that things aren’t going well and want to claim in a few years that they never believed QE would work and the government debt would be a huge issue for future generations. That’s how they work.

A great example of this is Janet Yellen. All of her supporters claimed she predicted the crisis, but the evidence suggests otherwise. In fact, she didn’t expect any type of economic collapse.