Thoughts On Future Monetary Policy, As Rumors Kocherlakota Leaked Tomorrow's NFP Number Mount

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Thu, 03/31/2011 - 23:22 | 1123948 Teaser
Teaser's picture

Guess we'll know in a few hours.

Thu, 03/31/2011 - 23:24 | 1123955 Mr Lennon Hendrix
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As long as Bernanke gets the info 15 minutes ahead of time, everything will turn out fine.  Just fine.....

Fri, 04/01/2011 - 00:07 | 1124069 Michael
Michael's picture

So let me see if I get this strait;

The Federal Reserve Corporation regulates the amount of money in the system, prints up trillions of dollars, sets interest rates and gives the money at near zero percent to the people in their friends network. This causes my savings to lose purchasing value, causes inflation worldwide which in turn sparks revolutions worldwide.

I'm not in the Fed's friends network so I get shit on. Did I get that right? It can't be that simple a ponzi scheme can it?

 

Fri, 04/01/2011 - 00:25 | 1124108 traderjoe
traderjoe's picture

Yes, that's about right. Cheers...

Fri, 04/01/2011 - 01:01 | 1124162 Harlequin001
Harlequin001's picture

do the same crazy shit day after day and it soon becomes normal...

Fri, 04/01/2011 - 00:32 | 1124112 SheHunter
SheHunter's picture

Well said.  A concise, articulate summary of the fashion in which you are getting hosed by Bennie et al.

Fri, 04/01/2011 - 01:02 | 1124160 Doña K
Doña K's picture

That is correct and it also telegraphs that the money will flow into commodites. Food, oil, coal, PM's and even good art.

Those who read this blog and have some investing money, should be doing well for themselves until.....

Fri, 04/01/2011 - 01:03 | 1124164 BT310
BT310's picture

You'll get nothing and like it.

http://www.youtube.com/watch?v=5jn1p7SXM1w

Fri, 04/01/2011 - 07:24 | 1124380 scatterbrains
scatterbrains's picture

The easy answer is to assume your only worth half what you thought you were by going long 50% gold and 50% cash "free from the banker's clutches". Which ever way the teeter todder  collapses, one side will more then make up for the other's loss.

Fri, 04/01/2011 - 01:14 | 1124177 MisterAmbassador
MisterAmbassador's picture

"The central bank is an institution of the most deadly hostility existing against the Principles and form of our Constitution. I am an Enemy to all banks discounting bills or notes for anything but Coin. If the American People allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered."

-Thomas Jefferson

 

End the Fed.

Fri, 04/01/2011 - 02:41 | 1124251 CD
CD's picture

Some previous opinions/viewpoints from Mr. Kocherlakota's 'theoretical' work:

"Planner must deter individuals from saving as much as they would like.

Intuition: unregulated asset accumulation leads to tendency to save and shirk ... [...] 

 

It is optimal to deter savings - a lot!

How do we best accomplish this deterrence?"

http://www.econ.umn.edu/~nkocher/toulouse_lec1.pdf

For a full book of unmitigatedly delightful Fedspeak, check out:

 

 

The New Dynamic Public Finance

Fri, 04/01/2011 - 09:28 | 1124761 Bicycle Repairman
Bicycle Repairman's picture

Thanks for this.  Looked over the first paper.  Intuitively I always knew this was true.  But to see it in this form gives me a chill.  Over the last 100 years this citizens of this nation have been abused by "social engineers", but this is worse than I expected.

"Intuition: unregulated asset accumulation leads to tendency to save and shirk"

They're talking about retirement here, IMHO.

Here's my intuition: The ability to front run the actions of social engineers can lead to substantial asset accumulation while allowing the accumulator solid political cover.

Fri, 04/01/2011 - 06:58 | 1124370 Mentaliusanything
Mentaliusanything's picture

Mick, Mick, Mick -------- Yes we can!!!! (fuck you over anally and spit in your ass while doing it)

Normally I am the most polite person on the whole Planet, but I can see your awakening, as being one of the patsies that will pay, along with your children and great grandchildren, for this simple folly.

Can you say  


Obfuscated !!!

 

Fri, 04/01/2011 - 10:45 | 1125071 A Proud Canadian
A Proud Canadian's picture

The issue isn't that you or the rest of ZHers understand it....the issue is that 95% + of the public don't/can't.  Sigh.

Thu, 03/31/2011 - 23:51 | 1124033 G-R-U-N-T
G-R-U-N-T's picture

Cement does a pretty good job repairing leaks...

http://chronicle.augusta.com/latest-news/2011-03-31/srs-concrete-pump-he...

Thu, 03/31/2011 - 23:20 | 1123951 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The future of monitary policy:  it will be based on gold.  But, 'It is based on gold now, because all of the central banks hold gold as their main asset!' you say.  Yes, but it will be public information then...in the future.

Thu, 03/31/2011 - 23:22 | 1123952 SparkyvonBellagio
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I suggest a Ron Paul / Rick Santelli 2012 ticket.

It's the only way to be sure these A'Holes who currently pull the levers and push the buttons behind the curtain are EXPOSED as COMPLETE AND UTTER FRAUDS TO THE MASSES. I know and understand many here see this already, but it's the MASSES that need to see the proverbial light.

Cheers

Thu, 03/31/2011 - 23:28 | 1123957 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

What about wes get some poets......

....Dylan/White '12

Or we gets some dudes that could beat some ass....

....Ventura/Piper '12

Or we get a ticket that would make Ben Franklin blush....

...Durden/Singer '12

But I would probably vote for Paul.  Then again, I have not voted for awhile, and I may never again.  I am still  bitter that I voted for that idiot Gore.  What did I know back then?

...Paul/Kucinich '12

Thu, 03/31/2011 - 23:32 | 1123975 Dr. Porkchop
Dr. Porkchop's picture

The '12 lineup:

Ventura/Stallone

Schwarzenegger/Whethers

Alien/Predator

Thu, 03/31/2011 - 23:35 | 1123985 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

At least the ads will be entertaining.

Thu, 03/31/2011 - 23:49 | 1124031 Dr. Porkchop
Dr. Porkchop's picture

If only Don Lafontaine were still with us to do the spots..

 

In a world, where suicide bankers rule the streets and the congress....

 

*oops, should be Weathers, not Whethers.

Thu, 03/31/2011 - 23:34 | 1123978 tip e. canoe
tip e. canoe's picture

willie/jesse '12

Thu, 03/31/2011 - 23:45 | 1124018 EvlTheCat
EvlTheCat's picture

Willie Tyler is still alive, but I thought Jessie Owens was deceased???  Does that make, and Lester, Secretary of State?

Fri, 04/01/2011 - 00:10 | 1124065 tip e. canoe
tip e. canoe's picture

that's nelson/body, not tyler/owens

(tho golden jackass/cafe americain would be interesting as well)

Thu, 03/31/2011 - 23:38 | 1123993 tip e. canoe
tip e. canoe's picture

Dylan/White '12

...from hopium to opium...

Fri, 04/01/2011 - 00:14 | 1124084 francis_sawyer
francis_sawyer's picture

Who TF really cares what the ticket is in this "Dancing With The Stars" culture...

Might as well be...

ASTAIRE/ROGERS

BABYLONIA/GARDNER

OBAMA/PALIN

http://www.jamesmaurer.com/images/obama-palin-dancing.jpg

 

 

Fri, 04/01/2011 - 00:19 | 1124096 JustPrintMoreDuh
JustPrintMoreDuh's picture

Bend/Over '12

Fri, 04/01/2011 - 00:22 | 1124101 francis_sawyer
francis_sawyer's picture

++ & C. HOWARD FIELDS as Secretary of State

Fri, 04/01/2011 - 03:36 | 1124304 mrfr0gz
mrfr0gz's picture

there you go

Paul/Kucinich '12

buy shares in Kaopectate

+1

Fri, 04/01/2011 - 00:15 | 1124091 francis_sawyer
francis_sawyer's picture

The RISK with a PAUL/SANTELLI ticket is that they get the "JFK" treatment...

 

 

Thu, 03/31/2011 - 23:23 | 1123953 SparkyvonBellagio
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If you look at Gold/Silver/Platinum futures as of right now you know the answer already.

Thu, 03/31/2011 - 23:33 | 1123977 Mr Lennon Hendrix
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+1

Thu, 03/31/2011 - 23:36 | 1123987 gosseyn
gosseyn's picture

They're flat.  What's your answer?

Thu, 03/31/2011 - 23:44 | 1124011 Bubbles...bubbl...
Bubbles...bubbles everywhere's picture

Oil is up. I guess is all that extra demand.

Thu, 03/31/2011 - 23:27 | 1123960 Cleanclog
Cleanclog's picture

Fed's gonna buy JGBs,  Munis, PIIGS and encourage people to stop paying mortgages.  A different kind of stim while "managing"global interest rates even while lifting FF rate.  Put a dinky bottom under $ for a few secs, then return to monetization with distraction of confusions.  All of this blur and haze is intentional.  And the Bernank, ECB and other institutions are not in charge.  It is the I banks that "get it" and control it.  In my humble opinion.

Fri, 04/01/2011 - 03:33 | 1124300 mrfr0gz
mrfr0gz's picture

and thus, we have elevated ourselves to 3rd world status?

I suppose if a loaf of bread and a gallon of gas are five bucks apiece, then the dollar becomes irrelevant.

Thu, 03/31/2011 - 23:26 | 1123963 TruthInSunshine
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The NFP number is not likely to be robust tomorrow, assuming seasonal employment factors were a big catalyst for upward trending "official" (although still very weak, and atypical of what they should be at this point if we were truly in economic recovery mode) employment numbers through February, and given that layoffs at local units of government have probably increased in the last couple of months.

I can't envision that robust retail, manufacturing or construction hires are in the cake, either.

As always, with highly manipulated "official" BLS numbers, subject to massive revisions (usually downwards), anything is possible, I guess.

Thu, 03/31/2011 - 23:28 | 1123966 Milton Waddams
Milton Waddams's picture

Let's connect the dots.  On one hand you have Kocherlakota making the case for a 75 basis point increase.  On the other hand you had Bernanke rationalizing the size of QE2 as follows:

 

BERNANKE: We tried to make an assessment of -- of -- we asked the hypothetical question, if we could lower the federal funds rate, how far -- how much would we lower it?

And a powerful monetary policy action in normal times would be about a 75 basis point cut in the federal funds rate. We estimate that the impact on the whole structure of interest rates from $600 billion is roughly equivalent to a 75 basis point cut. So, on that criterion, it seemed that that was about enough to be a significant boost, but not one that was excessive.

You don't need to be a Choctaw Code Talker to figure it out.

 

 

Thu, 03/31/2011 - 23:29 | 1123971 RobotTrader
RobotTrader's picture

I can assure you that TPTB have their "men" at the controls, ready to push whatever buttons or levers are necessary to get the appropriate reaction after the McJobs number comes out.

One popular tactic is to let the bears have their day for 24 hours by letting the markets fall.

Then, the day after, they jam futures to incite an "in your face" 175 point rally in order to show us who the boss is.

At the end of the day, the market will go whichever way the Plutocrats want it to go.

And the PigMen already have the playbook in hand as we speak.

Once again, JPM, MS, GS, etc. will probably have another quarter with maybe only a couple of single losing sessions.  It will be another banner quarter of trading profits.

And the stocks like BID, JWN, COH, TIF will skyrocket even further as more trinkets are purchased for the incoming wave of high-end European and Russian escorts hitting the Hamptons beaches this spring.

Thu, 03/31/2011 - 23:59 | 1124050 JohnG
JohnG's picture

You make good points.

And....

I took the idea of high end retailers doing well ~1.5 years ago, and it has paid off.

Can I get through another bonus season?  I think yes.

And the ponzi goes on, until it doesn't.

Fri, 04/01/2011 - 00:01 | 1124055 JohnG
JohnG's picture

And, don't be dissin' the hookers.  They actually provide an honest service.

Fri, 04/01/2011 - 01:49 | 1124212 nyse
nyse's picture

"Don't call my escorts 'whores'." - Gob B.

Fri, 04/01/2011 - 02:02 | 1124221 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

"She is a Chechnian prostitute and you will address her as such!" - Master Shake (ATHF)

Fri, 04/01/2011 - 01:10 | 1124168 Doña K
Doña K's picture

My hubby said he wanted to go to the Hamptons this summer while I would be on a business trip. Now I know why.

Thanks for the tip.

Fri, 04/01/2011 - 08:17 | 1124447 The Profit Prophet
The Profit Prophet's picture

Great post....but I junked you based on historical idiocy.  Yes I agree...total  market control is theirs, and only a fool would say no to the free money being offered by Mr. Manipulated Market. And that's exactly what the Klepocrats need everyone to do....and that's exactly why I will never do it!!!

Greed will destroy this world.....only charity can save it......and that is why there is no hope.

T.E.I.N everyone!

Thu, 03/31/2011 - 23:33 | 1123976 Id fight Gandhi
Id fight Gandhi's picture

Life without fed money and Pomo? They better get some 12 step programs in order. And nets and clean up crews.

Fri, 04/01/2011 - 04:15 | 1124324 barliman
barliman's picture

 

Non-levitating bankstas would give new meaning to suicide bombers

barliman

Thu, 03/31/2011 - 23:36 | 1123988 Seasmoke
Seasmoke's picture

sounds like a Catch-22

Thu, 03/31/2011 - 23:36 | 1123989 monopoly
monopoly's picture

Do you really think this jobs report will change anything for more than a day or two. It is over. It is too late to "take back" and start over. The massive debt, the crap that many banks still have is not going away. Derivities are still out there, trillions of them and they will haunt us until they are disposed of, and that will not be pretty. Housing is not coming back for many years. At some point we will have our own Japanese disaster, but instead of it being a nuclear one it will be a monetary tsunami.

The "funding crisis is getting closer", that is when all hell will break loose.

Nothing new here, lets move on.

Thu, 03/31/2011 - 23:38 | 1123994 TWORIVER
TWORIVER's picture

off topic here. how about they put some damn booms around the fukorama plant in japan so they contain some of that beautiful slick in the water. If you can tell me why it won't work I appreciate it. I'm not ignorant, I am mad.

 

http://www.bbc.co.uk/news/special/world/japan_earthquake/feature_inc/img...

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