This page has been archived and commenting is disabled.
Minneapolis Fed's Kocherlakota: "Fed Funds Rate May Need To Rise 75 bps By End Of 2011"
Minneapolis Fed's Kocherlakota, who is not scheduled to speak today, and who in the past has exhibited both hawkish and dovish tendencies is on the wire, saying the the Fed Funds rate may need to rise 75 bps by late 2011. He is also quoted as saying that QE2 boosted inflation expectations more than he anticipated (oh look, another confirmation of Fed ineptitude but only in retrospect), and that higher short-term rates certainly possible in late 2011. In other words, the hawks in the Fed are once again getting very vocal... Just like in March of 2010, and before the market tanked, opening the door for QE2, and when all the hawks kept their mouths shut.
From MarketWatch:
Narayana Kocherlakota, in an interview with Dow Jones Newswires and The
Wall Street Journal, said that if the U.S. economy grows at about 3%
this year, as he expects, and underlying inflation ticks higher, as he
expects, then the Fed will end its $600 billion bond-buying program as
planned in June.
He expects core inflation (inflation excluding volatile food and energy
prices) will rise from about 0.8% late last year, when the Fed launched
its bond-buying to about 1.3% by year end, he said. As a result, lifting
the Fed's target for short-term interest rates by more than half a
percentage point late this year is "certainly possible." He noted that
the often-cited Taylor Rule, named for the Stanford University professor
who devised it, would in that circumstance call for a
¾-percentage-point increase in rates.
"If you consider monetary policy was appropriate at the end of
2010...and then you see core inflation go up by 50 basis points over the
course of 2011..the usual response that we know from 20 years of
thinking about monetary policy (or even more) is to raise the target
rate by even more than that increase in observed inflation," he said.
"So that means you should be raising the target rate by more than 50
basis points."
The Fed dropped its short-term interest-rate target nearly to zero in
December 2008 during the financial crisis, and promised to keep it there
for "an extended period." Trading in futures suggests markets
anticipate a Fed increase to 0.5% early in 2012.
Mr. Kocherlakota is one of the five regional Fed presidents with a vote
on monetary policy this year, along with the Washington-based Fed
governors. He is a swing voter on the Fed's policy committee, who isn't
clearly aligned either with hawkish Fed officials who tend to favor
tighter credit or dovish members who tend to favor looser credit
Two other regional Fed presidents with votes—Charles Plosser of
Philadelphia and Richard Fisher of Dallas—have expressed concerns about
inflation and suggested they would favor raising rates in the near
future.
The Minneapolis Fed president, a former academic, said he expects a
"pretty big upward movement" in core inflation—that is inflation
excluding volatile food and energy—which he considers the best predictor
of where overall inflation is.
Mr. Kocherlakota also said that the Fed's second-round of bond buying,
known as QE2 for "quantitative easing," was more potent than he
anticipated when he and other Fed officials launched it last year. It
raised near-term inflation expectations, then dangerously low in his
view, by more than he anticipated, measured by financial market
indicators.
Mr. Kocherlakota said when the Fed decides to tighten monetary policy,
he favors raising short-term interest rates over selling assets by the
Fed's portfolio, primarily because the Fed has a firmer understanding of
how interest rates affect the economy.
»
- 8662 reads
- Printer-friendly version
- Send to friend
- advertisements -
I think it was a last second attempt to beat the PMs down for the quarter. Managed to shave a few bucks off gold in seconds.
Either that or Blythe was just slamming the close per usual.
Must by Blythe because if the Fed raises rates their balance sheet goes to the dumper.
Thats why the Fed created that new line item on its balance sheet: "Pass loss onto Treasury, thoroughly fucking the taxpayers"
Yup, more misdirection, they are printing billions a day, and their first move is to raise rates? Pure, complete, bullshit.
Utter, complete bullshit. Mission accomplished, however:
03-31 15:59: On the back of those hawkish comments from Fed's Kocherlakota, seeing strength in the USD index, and T-notes spike lower
Trotting out these useless hacks shows how utterly ridiculous the situation has become. Jawboning is all they have left, and it isn't going to work.
http://jsmineset.com/2011/03/31/in-the-news-today-825/
Utter, complete, ridiculous bullshit. Mission accomplished for about 1/2 a day. This clown will be faded in a NY minute.
I seriously want to beat the crap out of your perpetual junkers........don't stop Turd!!!!!!!
+1
Off topic, please excuse me:
President of Portugal accepts the resignation of the government and dissolves parliament, schedules elections for June 5th.
The present government will remain in office with only "current management" capabilities. Earlier today, the Portuguese minister of finance declared that a government which has resigned does not have constitutional power to accept a bailout.
Furthermore, he also stated a "current management" government does not have constitutional authority to approve additional austerity measures, which means that the stated "deficit control goals" are to be broken, and nobody will be in a position to guess the final account deficit. Blame for this will be given to nobody, as it was the fault of "the process". Fantastic, for those fond of Kafka.
After the election, a new government will only take office by late June / early July, provided that no coalition is needed.
Consequence: there will be no bailout of Portugal before late summer. The question now is how in the world will the country fund its pressing financial needs between now and then.
Nobody dares to guess.
Declaration from the President here: http://www.presidencia.pt/?idc=22&idi=52597
And you can't expect the Germans to foot every bill.
Viva Nigel Farage
Yes.
Actually, if you look under the surface, what the Portuguese regime is saying is that "for formal reasons" they will not drink the kool aid.
Believe it or not, they are telling the bankers that they will not accept more austerity in order to make payments.
Therefore, in reality, Portugal is defaulting already, albeit doing it in a way that saves face.
By the time summer arrives, bankers will be more than happy to accept softer terms, just to be get their money back.
After Iceland, this is the second show of bravery from a regime. Expect the Portuguese bonds to crash even further, and the PSI index to crash, but no austerity.
Late trading in the EUR / USD is showing the initial knee-jerk reaction.
Now, what will a debilitated Merkel do?
I'll wager my FRN's on an IMF / ECB combined "we don't give a fuck what your laws are" and shove a bailout / austerity package down their throat anyway.
I hope Portugal (and Ireland) extends the middle finger to the IMF and ECB, but i'm from Missouri, so I'll believe it when i see it.
It's just too bad we can't vote him in as President...
pu-leez
They will have QE3 at $200B a month. The exact opposite of raising rates.
That's 275 days away.
By then even Volckeresque rates won't soak up liquidity and tame inflation.
275 days? Yeah, that should match with QE5...
bring on the bear...
The bear is dead (this from a guy who can't force himself to buy equities...I have a money mngmt lady do it for me and I hate her and all the bullshit but I'm not going down as an economic martyr).
Money must go somewhere - always.
Cash - not so much.
Bonds - not so much at these yields.
Commodities / ags - yup, will adjust nicely for inflation
Stocks - yup, will adjust nicely for inflation even if it is all bullshit accounting, smoke, duct tape, blah blah.
Money must go somewhere...traditional safe havens of dollar and T's are ridiculous at this time. They will bounce some as bills must be paid in dollars but the bounce will only be short cause everybody knows you don't put your "money" into dollar / T's without significant debasement.
Stocks / ags / PM's / commodities to the moon...otherwise known as hyperinflation.
this money must go somewhere argument is actually total crap, because money in the broad sense is debt, and therefore those buying stocks on margin (i.e. many if not most) will simply repay the borrowing and the "money" simply no longer exists.
You are correct if we were in a closed end monetary system...however in a fiat gone wild system more money "digital credits" can perpetually be cranked on one side to PD's (for trading, not lending) than money dying in lower loan origination, bankruptcy, loan repayment on the other. Absent Fed we have $5T in T's annually and no natural buyer...rates would skyrocket, money be yanked from all "risk assets" to safe bond returns, yada yada. Deflation. But everybody knows long as current Fed / Admin / Wall St. run this show there will be free money for those closest to the digital printer, there will not be a failed T auction. Ultimately hyperinflation.
Also forgot my beloved RE / CRE - hmmmm...not making any more but w/ peak debt, peak population coming, peak energy, likely negative taxation (mortgage interest?, $500k tax free gains?) and need for better LTV....hmmmm
This time its different. The dollar may no longer be considered safe .
Anyone got any new good short ideas? Looking to get net negative on market exposure
Take out the momos
Cmg
Nflx
Pcln
Lulu
Pure momo plays nothing more.
word, i can sympathize with contrarian momentum bets, but whats going to be the catalyst to break these stocks? For Lulu they will definitely suffer from tighter margins as commodities continue to rise, but nflx seems to be cutting costs in their business model. Valuation is insane, but i just dont see a major near term mean reverting catalyst.
Do you know of any borrowable chinese frauds? seems all of the frauds that get posted are impossible to borrow in 5 minutes after the post.
Lululemon. The tighter, the better.
http://1.bp.blogspot.com/_GSvCGKUYfxs/TPwGbh3I1TI/AAAAAAAAAEw/X9ax2ykMEy...
CRM
GM
That is until Turbotax Tim and Uhhhbama conference call Benny in and let him know the Treasury will be insolvent overnight if he increases the interest they have to pay on the debt.
That's hardly a problem -- all the interest paid by Treasury on monetized Treasuries is returned to the Treasury by the Feds after some nominal reduction...
Yeah, and all the heroin addicts in the world will stop shooting up at the same time.
Just like in March of 2010, and before the market tanked, opening the door for QE2, and when all the hawks kept their mouths shut.
So true... market performance from 1st Q.10 is practically identical too. We closed 1st Q 10 up 5.39% on the S&P, up 4.82% on the DJIA and up 5.68% on the Nazz. Groundhog Day indeed.
Oh, and we're going to reduce our dependency on foreign oil, stop global warming, and get excellent and inexpensive government healthcare this year, too. Promise!
But wait! If you vote now, we'll throw in a promise to reduce spending and decrease the Federal deficit by 2018. I'll also shut Guantanamo, get the lobbyists out of my cabinet, and roll-back the Bush tax cuts on the wealthiest 1%. Plus I promise to make you younger and better looking.
Another classic of not seeing it coming like sub-prime is well contained type classics.
Putz.
http://www.zerohedge.com/article/guest-post-bernanke-gains-clueless-back...
Am I the only one who would like to organise a protest at a FOMC meeting this year? For example, the one in September on the 21st. Let these central planners know that at least a few people are outraged at what they are doing at the Fed. Sure a protest to the voting members wouldn't do much, however it would put them 'on notice' that people have wised up to their plans. Perhaps it would start a moment to truly end the Fed and expedite their demise.
Its just that many of us complain about what they are doing and understand its detrimental consequences to the US, but there is no concrete action. Just a thought. Ridicule will be appreciated as well, but I'm serious.
Why wait until September and after Jackson Hole?
Get a twitter, FB, ZH all sorts of social media campaign going now, swelling and become relentless.
Tyler?
The fuel for your protest is already waiting. It is NOT the case that all of America is watching Dancing with the Stars. As a percentage of the population, way fewer of them are watching TV at all...because they are online.
Now some of them are surfing porn, and others are shopping for sweaters...but the Internet was/is a game changer. Do you call a broker if you want an opinion on shares of a company? Or do you ping Yahoo finance and have all the basics in about 15 minutes?
It is my opinion that the Fed is looking at its last days...because folks are no longer getting news through the Dan Rather filter...oh, and because the freakin' Republic is broke and very near collapsing...too...but...point stands.
Tyler...what is your best unique visitor count during any one week? With Twitter and Facebook and all that other shit you people do...how quickly could it be leveraged? Everything anyone needs to make it happen is at your very fingertips.
My revolution against the bankers and the politicians is already well engaged...mine being the revolution of not spending money. Yep...I think that is the best starting place to rid the world of bankers. There are more steps to it than that, but that is where my war begins. I know brother CogDis is with me...and probably quite of few of the brotherhood.
Yep...the clock is so ticking...and is about to be accelerated by a factor of ten if our brave Speaker of the House signs that ridiculous compromise bill...for $50 billion in spending cuts....LOL!
Hello giant martini...
Cdad, understood and agreed! Its just that a well-promoted and advertised to the MSM protest would shock these controlling bitchez like none other. Sometimes what is required is physically see the 'revolutionairies', if you will. I was one of those in Sept 12, 2009. His majesty BHO was promptly scheduled to fly to Minnesota that weekend. Just shows how the powers that be are frightened of people showing their discontent publicly. BTW, I too am basically debt free, with exception of residence and recent new vehicle (couldn't help it last Fall). Great idea you have though. Thanks!
Understood and agreed back at you, silver.
I hear Jackson Hole is lovely in the summer [if the Fed lasts that long]. I'm familiar with the Buffalo/Sheridan area...very nice. I'd join in that fun.
Get Tyler to mass print some ZH T-shirts, signs with "End The Fed" on them, ZH symbol on the bottom, peacefully demonstrate, PA system, speeches, facts and figures, interviews with the press. I get it. I agree. Organizing it will never be easier than now with ye old Internet at your finger tips.
In the meantime, shut down personal spending. Food, gas, rent. Lose the car payment if you can. Grow a garden. Learn to can food [you would be surprised how good canning food feels] Ferment :). Work by contract...for cash if you can. Reject Hollywood in all of its forms. Keep precious metals. Live simply and quietly. Read. Prepare.
With or without your protest rally, silver...America is about to enter a period of tremendous stress and change.
Now...if I could just quit spending on giant bottles of vodka :(
Yep, I prefer the Polish Vodka to Russian or Finnish ones. The potato base of the Polish Vodka is superb when chilled in the freezer for hours. I do prefer a great XO though; a bad habit from living in France for years and reminiscing about French girlfriends past........... You da man cdad
Watch the munis try to roll over VRBOs with no letters of credit. 75 basis point. Aoooga.
That's so nice that he "underestimated the inflationary expectations QE2" has brought about.
He has 15 minutes to get the genie back in the bottle, right Bernank?
Bernank?
"you called? Sorry I have been busy shooting and killing all these pheasants that were bothering the banks"
Only gun Bernank would ever be on the end of is the one he places in his own mouth...let's just hope he has more courage than Madoff to end it once he is exposed.
How does the Fed Funds carry any significance when the banking system is swamped in a trillion plus of excess reserves?
LOL at 75 basis points. A huge signal to anyone paying attention to the research that comes out of the Fed.
Exactly. The banks have no need to borrow from each other over night when they sit on over a trillion in excess reserves. The Fed can announce an intention to raise the Fed Funds rate target but their actual ability to move the rate is zilch.
One thing that is guaranteed out of all of this scam, is when they start to pull the TRILLIONS in fiat out of the system and begin raising rates so drastically, the fantasy ride on Wall Street is going to look like a nuclear financial bomb exploded. The S&P will be left with a huge crater to fill.
Hi, I am an irrelevant minion of the Bernank. I, unfortunately, drew the small straw in our last meeting. I was commanded to tell the press that I think we will need to raise rates, at some point, and pretend we think that we realize our actions cause inflation in stuff people actually buy all the time(spoiler alert: banks need your money more than you need affordable food/gas). We are out to convince the world that there will be massive inflation and massive deflation and use as much double-speak possible.
Signed,
Kocherlakota
P.S- The Bernank requires no food or oil because he sustains exclusively off the tears of shorts.
And the doomer sect is " Agast " ... " Dumbfounded " .... " Perplexed " at the thought of QE 3 not happening .....
The " Crow Soup " has been moved off simmer & the carrots & celery have been added, it will be ready soon, I can't wait ....
Christ, do you even know how to read? This is the EXACT SAME SHIT they said before they started QE2.
You ignore all data that doesn't conform to your dumbshit worldview.
There is a saying among those involved in the trucking industry: "It's easy to tell when a driver is lying--their lips are moving." Case. In. Fucking. Point.
Hey dumb shit .....
I have been saying no QE for 6 fucking weeks before the Fed made one peep. Because now, stupid, the economy is stronger than last year.
Don't you have some pepperoni to hide in the basement you wacko - Get that stupid tin-foil hat straight before you address your superiors ....
I can't wait to force-feed that soup down your gullet, pimp .....
If/when the stock market goes down and LT treasury rates go up QE3 will be coming out of the gate strong. Donw the stretch with Skittles flying out of its ass. (imo)
Spalding, you 4 years old?
Does your wife still give good head .... ?
Not married.
My turn: do you get paid minimum wage for this gig?
I can't wait for it all to colapse on you redneck head, motherfucker. The economy is strong; what a joke. It's been gutted over 40 years of "neoliberal globalization", your countrymen have been ripped off and here you are talking shit.
Guillotines, bitchez!
So? You are proud you bought the propaganda "before" they started spreading it (they were already spreading it months and months ago, and before the start of QE2).
lol, the guy buying KI at confiscory prices is calling the guy buying some meat a wacko?
Also, I'm pretty sure chemist and manager of a multimillion dollar research lab qualifies as the superior to a 20' truck driver, not the other way around.
At least you are just calling me a generalized "pimp" now, rather than a gold pimp. I'm really a silver pimp, bitchez.
I own two businesses and do not take orders from one single person. And I love the write-off's ...
I was purchasing the pills for my parents in AZ as I stated at the time ... Get back to work, pimp ....
Your two businesses are posting to weblogs at $.50 a post, and what? Delivering newspapers door-to-door?
http://www.standardandpoors.com/indices/sp-case-shiller-home-price-indic...
I'm still waiting for that recovery to hit housing.
Wasn't this after all a credit based housing recession?
There's been an uptick in unemployment or at the least an improvement to 'less bad' but that's a lil wishy-washy if you feel me in a world of natural disasters, nuclear meltdowns, oil barons, wars, and lies. There can be no meaningful recovery in housing until the jobs market returns to somewhat normal conditions and oh yeah the drunk credit days are over. The banks truly need the money more than you or me, but go ahead believe in your 'stronger' economy. Remember a stronger economy includes sovereign bailouts, municipal defaults, austerity, paper, guarantees, nationalization, food stamps, revolutions, oil, higher prices, and governments across the world telling the truth!
I respect a person who believes in recovery but they never have any thing to back it up. Wow, you said 6 weeks ago that QE would be over in June but who is taking notes? Pretty harsh comments from a person who pees on China but believes in China indirectly as the provider of cheap consumer goods in 'recovering' economies even though our neighbors just lost their jobs at the factory. Maybe you should get your shi% straight.
QE will end on time .... Never said it would not. This is the new normal the securitization ponzi will never be like it was in 2006. China is out sourcing tons to Africa now and the unions are starting in China now. It will take 15 years for China to balance toward a consumer driven economy. And it will be a bumpy ride ...
More nasebohren.
Can I get a date from you when the recover will flood the market with jobs and kill commodities? This summer? I understand your friends are manufacturing things, but when will they start ramping up hiring?
Hey, 75% of the people out of work held low paying jobs, many in the housing sector.
As far as my buddy, he fired 70 people when the crisis hit and he rehired 55 or so .... He was totally fucked when he was forced to still pay out all the insurance cost and someone went bankrupt and owed him $1,200,000 that will take years to get back. It's not perfect, yes higher prices have hurt him but he makes 40% on everything so as people need things done cheaper, he can cut that in half and still make 20%.
His problems are when a roller gets fucked up and he must scrap it eating $20,000 in material. But he has been doing better over the last 6-8 months and the last 3 weeks the quotes have been flooding in, his lead time is 6-8 weeks now. Another guy we know with a shop of one hundred and fifty guys just stopped quoting last week, he can't take on any more work. My buddy subs out $700,000 a month in work besides the work he does in his shop .....
He's doing some valves for some company in Canada for oil shale, he has a thousand blocks sitting in his yard for this job and he pumps forty of them out per day, but that company must replace each valve every twenty four hours because of wear and tear, this is what you call a gravy account .....
After QE2 ends and the middle east simmers down oil, and the commodity complex will get monkey hammered ..... But long term over the next 20 years commodities and farming are a great play because of China, India, Brazil ..... But the doomer trade in Gold / Silver will pop how low will she go, not sure but if you look at silver over the last 60 years I can tell you this being over $20 dollars is a bubble. It's been at $5-$10 for 90% of the time over the last 60 years .....
You are a danger to yourself. Seek help.
The argument I heard from you is the US economy will improve dramatically which will increase growth to the level where QE will not be needed because funding will come from growth.
Now I have to assume to achieve that level of growth hiring will have to increase right? Or will it be done with large number of unemployed and a radical increase in productivity. Such an increase in productivity must naturally come from new capital, is there that much new capital investment?
Since when did I claim that a lot of the laid off made big money? I agree many good jobs left town. So will those jobs come back or not? How will this new economic prosperity show itself? You seem to say manufacturing, which is fine but doesn't that mean new facilities must be built or expanded?
Also hate to say it but using anecdotal evidence is not always the best. All my friends are in IT and some are raking it in consulting. But I cannot argue that the whole economy will take off based on software development just because a few guys I know are making money consulting again. Also have you point out a lot of the consulting is using tech/software to reduce work force and cut costs.
You say what your butt buddies are doing, but never what youre doing. I think youre doing so well because you subcontract on government subsidized programs and have been doing really well since the "recovery" effort, therefore I dont blame you for putting your head in the sand to avoid hearing anything that will damage your profit. You mentioned a lot of things, except who is going to take up the Federal Reserves mantle of buying 70% of Treasuries which continues our way of life. They buy at the END of auctions, when everyone else has gone through and taken what they want. 70%. I call the first auction after they pull QE to be an epic failure, and without banks pumping thier cash from sales of Treasuries to the Reserve into thier own companies, whois going to invest to replace the lost liquidity? Thats 2 points you failed to address in your "omniscient" analysis of how youre going to continue running off of subsidies from a broke no cash flow government.
And your fiatsco's were so strong today that oil DIDN'T close at a post-2008 high and PM's continue to SUFFER from the strong dollar. Fucking retard. At least most paper-bug/paid trolls don't bother to post on days when they continue to be proved totally wrong.
Amazing he calls PM holders "doomers" when gold and silver hit new highs today.
LMAO on that timing...
Wrong. People holding PM's are doing quite well.
"Gold futures for June delivery advanced $15, or 1.1 percent, to close at $1,439.90 an ounce at 1:53 p.m. on the Comex in New York, a record settlement. This quarter, the metal climbed 1.3 percent, marking the 10th straight gain, the longest rally since at least 1975. On March 24, the commodity reached $1,448.60, the highest intraday price ever."
http://www.bloomberg.com/news/2011-03-31/gold-heads-for-longest-quarterly-winning-streak-since-1979-on-haven-demand.html
Good luck over the next 3 months, and 90% of the people on ZH do not buy gold at $1,300 and they did not buy it in 2003 sorry bro -
Within a month of putting her two-bedroom house in San Francisco on the market recently, homeowner Linda Gao had five offers, each one above her asking price of $699,000. So before accepting the most-attractive bid, she threw in an extra condition: If you want to buy my house, you have to feed the squirrels.
Two weeks later, she and the buyer hammered out a contract that included feeding the backyard wildlife, which Ms. Gao has done three times a week for the past two years. "I don't think it matters if it's a buyer's market or a seller's market," Ms. Gao says. "Anyone with a good heart would feed them." Indeed, when Susan Butler was negotiating to buy Ms. Gao's San Francisco property, she was resigned to the feeding schedule. "At that point, I said, 'Yeah, what the hell, I'll feed the squirrels,'" she said. She signed a contract in April, paying $815,000 -- or $116,000 over the asking price. Will Ms. Butler actually feed her new furry friends? "Probably not," says the college administrator. "I don't want to encourage other rodents."
"In a Booming Market, Sellers Can Be Choosers" by Amir Efrati, Wall Street Journal
You enjoy the microscopic anectdote coming from the sell side (hell, likely written by NAR for the author) but seem a little weak on seeing the big picture. Perhaps reviewing the charts of home sales over the past five years on Calculated Risk would help, perhaps looking at Fed tax rates at their lowest since...Federal taxes, perhaps realizing unsustainable spending is the only way this thing goes and only way $5T in treasurys get purchased w/out a interest rate killing shock to the system. Absent QE your "recovery" tanks...
Whatever.
Wonder how your parents home in AZ is doing?
i fear there will be so many fires burning in the united states by the end of 2011, no one will be concerned about the fed funds rate.
So what does a rate hike mean for economic growth... as we come off of a $100 Billion a month heroin fix?
Kocherlakota, isn't that like in far north eastern Russia? Risk bitchez!
Fed may raise rates before the ECB does next week, the signals are all there and they can't take the pressure of inflation any longer.
"they can't take the pressure of inflation any longer"
FED: "please don't throw me into the briar patch"
born and bred in the corruption patch. born and bred.
A pause and a whoosh, best way to bring yields back in on long end.
The third theater of operations for the USAF is the straw that breaks QE's back.
The FED has to take its foot off of the accelerator because the inflation that it is NOT causing is getting out of hand.
No gas peddle and it's RISK OFF.
Rosenberg will be on all of the MSM shows within 3 months again.
yea, definitely time to exit silver or gold positions and flip short. if the fed raises by 75 bps by the end of year, oil will have 8 handle, silver below 25$ and preety much the entire commodity complex will go lower.
Hey MC! I think we have a Food Stamper on board. Auserity is scaring the Mooching Monster!
will japan sell some toilet paper? will the ccp sell some? the toilet paper looks really about to plunge, maybe that's a headfake or something, but if it is, why would these old fools be trying to talk about rate rises, stop QE3 etc etc, as if they are really trying to convince the risk-on crowd to back off? Bottom line, the toilet paper is less than 3 months from the abyss, they are trying to avert another "Lehmanesque event"
I hope the funds rate does rise. It will reflect inflation and be a boost for the greenback, when investors start unloading treasuries. It will also put some control on the rinse wash ACB's and the carry trade mentality with the USD. It's about time. Commodities will fall under pressure as they are priced in USD.
I thought 2% inflation was the magic number.
Dances with Bullshit say behind closed doors:
"We must let the QE roam free, like the buffalo" :P
Beginning to look like the Fed can't keep its story straight -- break out the rubber hoses!