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April FOMC Statement, Hoenig Still Sole Voice Of Reason At The Den Of Thieves
Information received since the Federal Open Market Committee met in
March suggests that economic activity has continued to strengthen and
that the labor market is beginning to improve. Growth in household
spending has picked up recently but remains constrained by high
unemployment, modest income growth, lower housing wealth, and tight
credit. Business spending on equipment and software has risen
significantly; however, investment in nonresidential structures is
declining and employers remain reluctant to add to payrolls. Housing
starts have edged up but remain at a depressed level. While bank
lending continues to contract, financial market conditions remain
supportive of economic growth. Although the pace of economic recovery
is likely to be moderate for a time, the Committee anticipates a
gradual return to higher levels of resource utilization in a context of
price stability.
With substantial resource slack continuing to restrain
cost pressures and longer-term inflation expectations stable, inflation
is likely to be subdued for some time.
The Committee will maintain the target range for
the federal funds rate at 0 to 1/4 percent and continues to anticipate
that economic conditions, including low rates of resource utilization,
subdued inflation trends, and stable inflation expectations, are likely
to warrant exceptionally low levels of the federal funds rate for an
extended period. The Committee will continue to monitor the economic
outlook and financial developments and will employ its policy tools as
necessary to promote economic recovery and price stability.
In light of improved functioning of financial
markets, the Federal Reserve has closed all but one of the special
liquidity facilities that it created to support markets during the
crisis. The only remaining such program, the Term Asset-Backed
Securities Loan Facility, is scheduled to close on June 30 for loans
backed by new-issue commercial mortgage-backed securities; it closed on
March 31 for loans backed by all other types of collateral.
Voting for the FOMC monetary policy action were:
Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; James
Bullard; Elizabeth A. Duke; Donald L. Kohn; Sandra Pianalto; Eric S.
Rosengren; Daniel K. Tarullo; and Kevin M. Warsh. Voting against the
policy action was Thomas M. Hoenig, who believed that continuing to
express the expectation of exceptionally low levels of the federal
funds rate for an extended period was no longer warranted because it
could lead to a build-up of future imbalances and increase risks to
longer run macroeconomic and financial stability, while limiting the
Committee’s flexibility to begin raising rates modestly.
Compare Hoenig Dissent from month ago:
Voting against the policy action was
Thomas M. Hoenig, who believed that continuing to express the
expectation of exceptionally low levels of the federal funds rate for
an extended period was no longer warranted because it could lead to the
buildup of financial imbalances and increase risks to longer-run
macroeconomic and financial stability.
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"Die Die My Doelarr!":
http://www.youtube.com/watch?v=4GIisWJJG28
Not even a mention of sovereign risk contagion, fiscal restraint in US?
Before responding to the virtually ubiquitous ZH poster "HarryWanger", please be aware of just whom and what you are dealing with in this person:
http://www.minyanville.com/businessmarkets/articles/AAPL-apple-gm-psycho...
His real name is James Kostorhyz, and he is here posing as a troll in dishonesty and in disregard for the fundamental purposes of this forum. He is NOT posting here in good faith, but is purposely antagonizing those with independent, anti-establishment views and opinions for his own selfish and cynical purposes, as part of a study on "the psychology of permabears".
He believes that anyone who opposes the current widespread fraud, corruption and rampant lies within our societies and governments are "utopian" and unrealistic, pollyannish dreamers.
And for those ZeroHedgers who are advocates of sound money backed by gold, this bankster shill is already out there with one of the most disingenuous, dishonest pieces of pro-establishment propaganda on the topic, expounding on how such financial integrity is "impossible", and merely "the rants of an ideological fringe":
http://finance.yahoo.com/news/The-Gold-Standard-Solid-as-minyanville-285...
Please do NOT respond to this reprehensible troll, here or anywhere else on ZeroHedge. He is NOT here in good faith, and should be shunned!
Higher we go. As I said yesterday, by the time the Fed announces, Claims come in and GDP is announced, Greece will be quickly forgotten going into the weekend.
It's heartwarming to see you root on hyperinflation Johnny Bravo.
Obviously, Harry is just cheering for the fantasy stock market. He clearly has no clue regarding the end results of what is being done. The first thing I mentioned back in September of last year, is hyper-inflation was going to be the worst enemy that is coming to a town near you.
How the FED claims continually inflation is subdued is beyond me. I went to the Food Lion and 1lb of hamburger is now $4.39 and that was the cheapest greasy stuff. WTF???? Just one example of many price increases being crept into the public while no one is watching.
That's because they use "core" inflation as their primary definition. That other less important shit that you buy, like energy and food is left out of their wizard mathematics.
Yeah, but when you exclude food, gas, electricity, health care and schooling costs there is no inflation at all!
The government should just start only considering imports from China for their inflation statistics. Seems like that is what they are already doing.
They have hedonic inflator metrics. For example, when beef becomes too expensive, people will switch to Spam. This means "deflation" because Spam is so cheap. And when that becomes too costly, they switch to dog food, thus inflation is never a problem, just a hedonic adjustment.
People who choose to starve to death instead of eat because they cannot afford food are the best of all possible worlds for the CPI.
Don't forget dirt cookies.
No need for a produce section either. Plenty of bird seed and grass down at the park.
Obviously, Harry reads the economic indicators and reports. Obviously, Harry reads the earnings releases. Obviously, Harry understands that the situation in Greece and EU is sensationalized by fear mongering on this site.
As I said yesterday, we're following exactly along the lines of the run up from July being mirrored in the run up from February lows. We've had our 3%+ pull back and now we can begin the next leg up.
Obviously Harry hasn't figured out that nominal gains in a depreciated currency won't help him.
Again, I always have to pound this point home. Nominal gains in a depreciated currency are a hell of a lot better than NO gains in a depreciated currency.
Smart people don't let their wealth get depreciated. Which asset class is Harry ignoring? The only one that doesn't get inflated away.
Actually I have a rather large position in precious metals via Evergreen funds.
Do you mean the evergreen that was bought by wells fargo?
Paper gold, paper money. It all burns.
Copper Bitches!
=)
copper, duh. Its in every house and i heard a lot of chinamans have it stored in their backyard. Its everywhere. People saying now its gonna be a precious metal.LOL . Gonna have to rip the wiring out of the walls after i yank the garage.
Yea copper..dumshits! Its been a joy typing this. Giggles wide open.
If it makes you feel any better, in about a year from now you'll be able to go to Youtube and watch all these brilliant fed apologists go on and on about how inflation is nothing to worry about. You can then scream at you PC and say "I told you so!". Of course you'll then have to pawn said PC to buy groceries as dollars will have been reduced to their more appropriate role of bathroom tissue.
That is also because we are using food(corn) to make fuel(ethanol) instead of using it for feed.
If you buy hamburgers you better watch what the food companies (Monsatano, Tyson, IBP) are doing to you in this NPR Food Inc video -
makes the financial companies look like angels..(may need to look for a better link)
http://video.pbs.org/video/1472879887/#
Saw it. Came in mid-stream and it was one of those put down the remote moments. Stayed glued to the end.
Harry Wanger, portrait of a blue pill eater.
Harry, I am sure all the money you have been making the past weeks easily drowns out all the negative comments you receive. Tip-of-the-hat to you.
Harry has yet to find the "sell" button, and thinks Arizona Ice Tea comes from Arizona.
"inflation is likely to be subdued for some time."
I would be more inclined to believe this if they measured and interpreted indicators like CPI accurately.
He who makes the rules determines the rules and their interpretation.
I was talking with someone today about lies and lying. At some point, what's another lie matter to the big picture? When the truth is more damaging than another lie, the truth is what's dangerous to the here and now and even those who say they desire truth will root for the lie. There are examples everywhere you look.
Those who have participated with and have accepted the lie are most susceptible to additional lies. It almost works like blackmail. Once you lie or accept and then act upon a lie, you can be exposed as not truthful. Thus you can be corrupted and you become a human lie purveyor and repeater, like a spambot. It is in your best interest to lie with the others.
I talk to clients everyday who say they understand they are being lied to but they accept it as being better than the truth being widely accepted and the system collapsing. The truth causes collapse now, the lie extends it to another day. Thus the lie is good and truth is bad. This is why they will stand around and do nothing while being ripped off of every last valuable thing they have.
The most damaging lie we accept is the one about our welfare being dependent upon the thieves in the same way a battered wife is convinced she can't survive without and away from her abusive husband and he will kill her anyway if she leaves. In her mind, the devil she knows is better than the false reality he has constructed in her mind of what it would be like without him. Americans are all battered spouses.
Psychological warfare 101.
Couldn't you just have paraphrased Goebbels' famous quote about the truth being the enemy of the State and spared us the novel? lol
I kinda liked the novel, actually.
LOL :>)
Trav7777,
I've been asked this question before, why am I so verbose. One obvious reason is that I'm self centered and I like to think I'm saying something unique. And I love to write.
But I also write for another reason. Thinking back to various moments of clarity during my life, after the moment and while reflecting, I always found that I wasn't hearing/seeing/reading something "new" that had caused the epiphany.
The difference was that the explanation or presentation was always different than how I had perceived the issue/subject before. So not only was I ready to awaken but the message "felt' different and it was the final straw that broke the camels back of resistance I carried to the idea or concept.
So my desire to help, along with large helpings of ego, compels me to write with the hope that someone else will experience that moment of clarity because I approached the issue differently than others.
lol
I am hardly one to be critical about writing novels around here.
Sometimes, though, brevity is the soul of wit!
Well said. Create the trigger for even one persons epiphany and you have more than justified everything you might say.
.....even though many of us have already been epiphanized to death. I love that word and felt compelled to use it again....:>)
Did it occur to you that when someone tells you they understand they are being lied to, they are lying? They don't want to appear stupid. I don't think the average citizen can tell the truth from the lie, which means the lie IS the truth to them.
The masses suffer from unadulterated, naive ignorance - coupled with apathy, and they vote those values, hence the perpetual crop of congresstards we have, who in turn feed everyone as much excrement as they have an appetite to eat.
As for the CPI and other measures, the aforementioned people are too lazy or disinterested to find out what it all really means. I don't see the problem as them being lied to so much as them not being interested in discovering if it is true or not. The onus is on the citizen to flush out lies and their liars, and to not believe everything we read or hear. Sadly, we don't place a high value on investigative and thinking skills in our society. At one time we valued it. But as soon as TPTB realized our education system could be contorted into an advocacy platform instead of an education platform, the first thing they did away with was epistemology. People need to be educated on how to think, not what to think.
Next time someone tells you "yeah, I know that's true, BUT..." ask them to explain why it's true or not true. Once you require them to be specific, you may find their objection dissipates.
"Next time someone tells you "yeah, I know that's true, BUT..." ask them to explain why it's true or not true. Once you require them to be specific, you may find their objection dissipates."
Boy, I just don't know how I could have been so stupid as to not realize that people would lie to me. Thanks for setting me straight. It looks like you have things all figured out. I look forward to your future posts for more enlightened observations.
Thank you.
That is one group of people. Then, there are the wilfully ignorant. They know that what they know is likely untrue. We in law call this constructive knowledge. Meaning that they should know and to not know is negligent.
But anyhow, yes, there are tons of people who are frickin stupid and do not want to seek out the truth even if they could grasp it.
But there are a lot of those who shrug and just play along with the system. In Athens, the people gave face value to copper coins despite their worth being far less than face. It was a group acquiescence to fantasy.
We have that too. So long as enough of us play pretend, there are no acute consequences. Soon as someone breaks for the door, the stampede begins. Herd dynamics are interesting. Even in the face of clear and present danger, a herd may just stay put because everybody else is.
There is no such thing as truth anymore, there's only opinion. And if one guy on TV says it is so, then it is "debatable" even if that guy says something provably false to anyone with a cursory exposure to science or engineering.
double-clicked the Save lol
yesterday, to make a point someone tore to shreds a one dollar bill. A lady sitting nearby was shocked, then angry. Explaining it was simply paper scrip was no consolation to her. Her entire body almost convulsed with shock and sudden rage. This lady had some awareness of todays crisis.
Men on the other hand, having no way to prove their manhood via laboring are losing a measure of selfworth, self esteem. Now theres a bubble!
Popcorn and waiting for hitler 2.0
If it is just paper scrip, why not tear up a stack of benjamins? ;)
Or send it to me, and I'll buy some gold with it!
Popcorn and waiting for hitler 2.0
aka AntiChrist 3.0. Napolean, Hitler, and the new guy. Supposedly he's 55 yo right now. Heard a Youtuber say this guy better get busy. I think he's BEEN busy.
Also, there's one major difference between new guy and his predecessors. They didn't know they were AntiChrists. He does.
Include in your list of lies one of the biggest and most dangerous: The last 100 years of vertical growth reflect inventions in technology and finances.
The truth is more likely that 100 years of exponential growth was carried forward on free energy from coal and then oil, and the wealth enjoyed today was transferred from the future.
If I'm right then the party is definitely over, and no Keynesian twaddle or Austrian School hoo-haw is going to matter for fuck-all. Pull the free energy plug and this bitch grinds to a halt right now. The biggest Ponzi scheme was thinking we could build an infinite empire of leisure on a finite resource, forever.
Punk'd by the Second Law of Thermodynamics. This is the price paid for allowing Liberal Arts graduates and business school infants to run the show.
B
I
N
G
fucking O
Been sayin that same thing for a few years now. We rode an energy supply wave which has now inflected. Technology needs energy too, everything does. It is the thing that causeth to become.
Uranium, bitches!
Take all the known reserves of Uranium, put it in a pile, and it would be enough to power the world for about 30 years. That's assuming you can extract it all, which you can't. And as for that trace uranium ore bullshit. Sell that to the tourists. It would take far more energy to get at those trace deposits than you would get in return. Vast net negative.
Fusion, bitches!
..or it's back to ox, mule and plow.
Thats the scary part. Our backup plan only has a 30 year life. Fusion is nowhere in sight.
Won't be long before we will be burning coal, natural gas ,old socks and underwear like crazy
If we burned all the known reserves of coal and oil to create a sustainable economy over the next 30 years, including actual renewable (solar-driven) energy (and no I don't mean solar PV panels for fucks sake) we could maybe pull this thing out of its dive and offer our children a future worth living.
But we won't, and so we can't.
We are taking the future with us to the grave.
Sucks to come after us, is all I can say.
Yes, I have prepared my kids to live the farm life...
Backup plan? LOL
There IS no backup plan.
Remember, we're in a GROWTH economy. We not only must replace lost oil BTUs but also supplement them with additional BTUs to support the requirement of growth economics.
Think about this: the wars, the bailouts, the stimulus. "We" could have spent all that on solar panels and windmills...PBMRs and whatever else.
OR...the government could have put subsidy dollars intended to bring next-generation solar tech to reality now, instead of for $1MM a panel on the Mars Rover. The gov't is fine to let "the marketplace" decide on critical shit like this, but eager beaver to go fight wars and blow shit up.
WTF is all this Iraq tech going to do?!?! It's POLICE STATE technology. It has no fuckin future; it's not productive. Diamond semiconductors, nanotech, all kinds of things that could be pushed down the road instead of fucking BANKS.
We needed to spend our inflation dollars on, you know, something that would generate a RETURN ON INVESTMENT, instead of just bullshit to paper over the banks. Fuck, the economists have killed us all...
You are absolutely right.
Backup plan, WTF was I thinking? LOL!
That post should be framed.
Lying is indeed the ultimate gateway drug. And I have seen what you describe in the second PP more times in my life than I care to mention. It occurs in every social group, every family, every major corporation.
When not telling the truth is in the interest of keeping your your job, you lie.
When not telling the truth is in the interest of propping up the economy, the economists lie.
When not telling the truth is in the interest of maintaining advertisers, the media lies.
When not telling the truth is in the interest of maintaining a government, the politicians lie.
The truth is a dynamite that no one will touch.
Very nice comment. Bravo!!
Great post!
I guess once EVERYONE knows it's all a big lie, THEN this entire economic artiface will finally come crashing down.
Instant dollar weakness. Like a fucking heroin addict.
Blow, blow, blow them bubbles.....
Fed, forever blowing bubbles and this one they want to be the biggest ever
I guess kneepads it is... Yuck.
Glad I sold those $117 SPY puts yesterday at the lows...
nice call. this market is a sight to behold...i wonder what will stop this run away freight train...fed tightening at the end of the year?
Goin' long brass, lead and copper.
Do something useful with it before it becomes a barter item
In the end it of our story it was not a great war for no army could defeat it but the hyperinflation produced by reckless central bankers that took down that mighty nation known as The United States...
"reckless" isn't an appropriate adjective anymore. Corrupt is more representative of these people.
They know that this extended period of low interest rates hasn't done much to improve the job market. This policy's greatest affect has been on bank profit margins, yet they still use the unemployment rate as false excuse to keep rates low.
Also, they use their claim of subdued inflation to maintain their zirp policy when it is blatantly obvious that asset prices are being inflated as a result of their monetary policy (gold, oil, stocks, etc).
They shouldn't be allowed to claim ignorance, when they've already been caught in a big lie.
In the UK, if you have any savings you are losing money big time because of the inflation rate and pathetic interest.
Interest on credit cards has actually gone up a lot
The UK is a dying old man refusing to be thrown onto the plague cart. "I'm not dead." Not fooling anyone.
If the economy was doing that well they should normalise interest rates, but no, they can't do that, or the banksters wouldn't be able to make such big bonuses
Part-1: Everything is perfect. Yay!!
Part-2: We cannot increase rates because things are bad!
WTF???
+1.
You're not supposed to read these things for comprehension. It's back to the re-education center for you, Sparky.
LOL
The fool thinks he's actually supposed to use his brain to think, to apply logic and critical thinking skills to problems. Silly rabbit, you're a consumer, not a citizen. Get with the program or just plain get. If you ain't consuming, you ain't worth feeding.
It's an easy mistake to make. It took me years of saying "WTF is that supposed to mean" before I realized that I wasn't suffering from the right kind of brain damage to fully appreciate what they were saying.
These days of course it helps to read their twaddle while stoned, or inebriated. Then yeah, they make more sense.
Hoenig prefers death now to all this waiting around
Hoenig is positioning himself to be the heir apparent. When Bernanke becomes the laughing stock of the U.S. because he is faced to raise rates during the middle of a market tumble he will be resigning.
B-squared has built his life work on his Helicopter Theory. We have to realize and accept that he is never going to stop. Not ever. Not until he is dead, fired, or, the country lies in a pile of ruins, smoking. He will throw every man, woman and child in the country under a bus before admitting that he could be wrong.
There is a psychological term for this that is used to describe chronic gamblers. It's called the "Death Wish." And Bernie has it. Bad.
Yippeee. No more middle class! Way to go Bennie.
Fed says
You WILL invest in this bubble stock market, because there is no where else for you to put your money
ZIRP4EVA
Hmm ... but that won't fit on a California license plate.
How about "ZIP4EVA" and it's frankly more accurate anyway.
We got zip. 4 eva.
it works as a bumper sticker and/or t-shirt
Better a tattoo.
Hurts twice.
When we inevitably revisit the lows of 2009, I can't wait to see the Wanger Anger. Should be epic.
Wanger may then be on a hanger.
Well, based upon his behavior over at The Daily Reckoning, he's usually hiding in his troll cave when ever the market takes a tumble, then he's back out collecting tolls to cross his troll bridge when ever the market heads back up.
I'll have to go back to The Daily Reckoning to see if he's still stalking Bill Bonner and making snide comments everytime BB posts an article.
Same behavior when the troll was on MW.
Never has a sell point, either.
Just another genius in a bear market rally.
Since I am rather new here, I am curious to ask some of the more veteran ZH'ers: Do blatantly obvious trolls ever get banned here? If not, my experience is that that is a VERY dangerous policy for any online forum, as I have in my limited online existence already seen several forums utterly overrun and destroyed by egregious and relentless trolls.
The problem does not seem too extreme here, yet, but if it is a totally open free-for-all here, I predict it will not be long before it becomes so. Mark my words.
I prefer to abuse Harry as a wanker. But, that's not the purpose of my post. Actually, Harry's riding the Fed-induced gravy train and probably enjoying the hell out of it. It is true until it isn't: Don't fight the Fed. Got your trailing stops in? Need more mojo? What's in your wallet? Go for it, Harry. Just be careful. Let the trashing proceed.
I guess they are not worried about $4.00 gas prices heading our way soon...I mean if they are going to re-flate, then that will have to be a consequence, no?
That's not such a problem because they actually need less demand because supply is declining.
Prices were going to go up anyhow.
It appears that everyone has missed the most important statement in the release.
"In light of improved functioning of financial markets, the Federal Reserve has closed all but one of the special liquidity facilities that it created to support markets during the crisis. The only remaining such program, the Term Asset-Backed Securities Loan Facility, is scheduled to close on June 30 for loans backed by new-issue commercial mortgage-backed securities; it closed on March 31 for loans backed by all other types of collateral."
The money printing (QE) has ended, except perhaps for a small tail for new-issue commercial real estate loans.
I ask, can this stock market really keep rising without continued money printing?
Do you honestly believe that the UST auctions are going off with record BTCs because there really is that amount of capital willing to "lend" to a sovereign with NPV entitlements of $100T?
The Fed closed the facilities, sure...look at their balance sheet. It's because they BOUGHT all the gd'd securities that were lent against.
Yep. That about decribes it. Stealth QE.
Sure, Ben... just keep that foot on the accelerator as you head over that cliff. I'm sure there's a landing somewhere on the other side.
Yup..It is all good in the hood until Bond Vigilantes start demanding higher yield. Markets look forward right? Well time to start looking toward higher rates.
"Do you honestly believe that the UST auctions are going off with record BTCs because there really is that amount of capital willing to "lend" to a sovereign with NPV entitlements of $100T?"
I am open to the suggestion that the Fed is lying about its printing. But continued money printing is going to show up in the monetary base, possibly reserves, and M-1. Right now those aggregates have started falling (while MZM, a much larger aggregate is in a catastrophic decline).
It would be remarkably reckless for the Fed to enter into some off balance sheet scheme to hide the increasing money supply. Not saying it's impossible, but with prosecutions and the threat of criminal charges now leveled at the NY Fed. it would be - how shall I say it? - remarkaby uncautious.
I prefer data to opinions.
The data indicates that the Fed is making a huge mistake if it's goal is to keep the popular stock averages elevated.
If MZM is plummeting, isn't that just a reflection of the fact that banks aren't lending (government assistance/bailout money) into circulation, or that people are winding down their bank accounts either to get by in this economy, or to consume like crazy?
The well-connected don't fear prosecution, and don't look at crime the same way us mere mortals do. The fact they even call it "white collar" crime gives it a sort-of martha's vineyard innocence to it.
I'm open to data too...but I'm also very good at deductive analysis.
I *cannot* find a source of sufficient real capital to lend to the USG. Just can't. It's because it isn't out there and even if it were, who in their fking right mind would lend to the USG at <4% interest on a medium-duration note? That's INSANE.
Our deficits are exploding, never even MIND the entitlements tidal wave that is now rushing up the beach.
We are inarguably bankrupt. Our receipts are under our expenditures by around 50%. We face an impending situation where interest expenses will be our largest budget item, yet there is actually trillions in free capital out there that people are willing to "invest" in the USTs?
I find that so absurdly improbable as to be of negligible real probability. Therefore, the only alternative must be stealth QE of some kind.
Thats what they say. How do you know that is what they've done?
If there isn't an audit, they could easily be handing out tens of billions everyday day for the banks to trade with. Maybe even buying more worthless MBS....and most likely, buying all the Treasuries.
Yeah, but until assets are marked-to-reality the member banks can just keep raising cash at will and have us foot the bill.
From what I can tell, they just keep finding new and creative ways to create liquidity while beaming with pride that they were able to wrap up the predecessor.
It's like they keep wrapping the same turd in a different gift box every 6 months or so.
But raising from who? Not the American unemployed and not any other nation which is having their own problems. Bottom line is with creation of cash out of thin air all banks can do is pass digital numbers between one another..Nobody is borrowing and in the back of everyones mind they are saying..hmmm..shouldnt those homes have come back up in value yet?
They cannot and they will not because there are no jobs and eventually those losses need to be taken and another round of dilution is around the corner as financial reform can only hinder bank earnings.
Query: Aren't they just basically borrowing at 0% and trading in whatever yields higher? Banks aren't in the loan business anymore.
STOP BLOWING UP FUCKING BUBBLES!!!!!!!!!
We're traders and we do this for a living. Why we would want to stop the Fed from blowing bubbles is beyond me. This is my bread and butter.
Oh I get it. Most of the people here don't actually trade and just are interested in a "sound economy" and a "sound currency".
Keep on dreaming.
To some extent, I agree with you - I have tried convincing sheeple on the follies of hoping for a retirements thru 401ks but they dont quite get it. On the flipside I almost dont even want to blame GS for gaming the markets if investors want to get gamed even after the pretend crisis of 2009. However, this forum is also geared towards understanding where markets are really headed. The answer to that is pretty horrible god.
Your bread is probably Rye Bread and is partially rotted & is fermenting. (Lysergic acid diethylamide) Your butter is definitely rancid. Right now, your "trip" is good, but unpredictably soon, your "trip" is going to become a nightmare for you. (Hieronymus Bosch)
Actually, probably going to be a nightmare for most people.
And I wish that was just a Pipe Dream.
All Ben want to do is have text books written about him and that is all. Let this be the Kenyesians final lesson that spinning plates can only go on for long enough.
Oh Ben will have textbooks written about him alright. But not in the way he thinks.
These FOMC statements are not very useful. They are trying to prognosticate 180 days out when events are moving on a 7 day framing. Something bad happening to the EU over the weekend could blow the bottom out of this creaking tub and sink the entire show in 24 hours of machine-driven high-speed unwind from Hell.
They'd have to turn off the border routers to kill the Internet just to halt trading and speculation.
Of course, that might be sorta fun to watch.
But my point is that this exercise in rate predictions and monetary policy tweeks is Kabuki theater at the Special Olympics; double retarded.
+ 1000!! "Kabuki theater at the Special Olympics; double retarded."
If you read the writings of Bernanke and other similar types, you would understand that these published statements are not really forecasts, they are intended to influence your 'expectations' (specifically regarding inflation). Ben believes that this represents a free lunch in that by continually 'suprising' the debt markets they will keep rates lower than otherwise (i.e., because the market will collectively believe what is essentially insane, that due to their actions inflation will never appear). Hoenig seems to have tired of this some months ago and may actually wish to survive some version of tarring and feathering when the free lunch turns a bit more costly.
It's all "Perception Management", baby!
Welcome to the Soviet Union, comrade! Now here is your copy of PRAVDA. Enjoy!
Meanwhile Brown in the UK gets himself in quite the soup.
four fucking dollars. I remember as it cruised past 2.00GBP a gallon in the UK, I was 20, and that was 25 years ago, its about $10 in the UK now.
4 dollars lmao, kiss goodbye to that.
My understanding (from no direct experience) is that a large part of the $10 paid is taxes to support infrastructure and plentiful low cost mass transit. So when you grow tired of $10 you'll have choices to keep your life of track.
Here in the US, any $$ we pay for fuel goes mostly into the pockets of the oligarchs, who invest in nothing tangible. When our fuel hits even $4 our people are no longer driving. They are walking. Struggling. Starving. Fucked like a duck.
And most live 20 miles from anywhere, including food and work and sometimes schools (I'm not kidding).
$4 hurts hella. $6 is a nightmare. And the distant suburbs become death traps at $10.
4 buck a gallon for gas put folks here in the states in a world of hurt. That was prior to our present financial crisis. The energy shit hits the fan in less than 2 years...