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The Weekly Peak: The Fed's Liquidity Rally
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Breaking analysis from Squak Box Joe...
Good job numbers, equities rally.
Bad job numbers, more fed action, equities rally.
http://www.cnbc.com/id/15840232?video=1610280589&play=1
Here's "additional accommodation"
Slave Quarters
http://i.pbase.com/g6/83/748783/2/81834745.dOAjSqkf.jpg
Dow futures go from -95 to -3 in like 5 min after the bad jobs report. *shakes head in disbelief...
At about 8:30 somebody dumped a bunch of dollars into the system. Rarely see a fx movement like that. Didn't hear a helicopter?
Good numbers market goes up,bad numbers market goes up -the Fed prints another trillion or three,so the market never goes down and can only go up.It's the American way,capitalism and free markets.
So endeth todays CNBC lesson from the gospel of St Benjamin,go in peace and make money.
Exactly!
You made an excellent Point.
The market never goes down because the Fed is heavily invested in the market. This is where the trick is to our continuing dollar hedgemony. The Fed buys its own notes to keep the dollar from ever going down too low, The Fed also uses a lot of money to keep the markets looking good. I can't imagine what the numbers are but its something ridiculous.
If I were to guess, I'd say China has stopped investing in the U.S. a long time ago, and the dollar holdings it had were traded for tangibles like gold & silver. They might even be in on the game.
Here's something I would like to challenge each and every Zerohedge member to do. Research who owns the IMF (World Bank). How does the IMF play a part in the overall economic scheme of things?
Once you realize why the IMF exists and consider the implications, ask yourself this. What is the use in owning gold if every country in the world may one day decide to not accept it/make it illegal to personally own.
If the IMF makes a move, you can bet your money that they are doing so in the best interest of them and because of future precedents that will be set.
Your suggestion for research into the IMF is a worthy undertaking. A casual observation would be that it is a creation of the BIS with access to funds guaranteed by the US taxpayers. Ownership, assumed to be headed by the Rothchilds, would be extremely difficult to verify. Shucks, Eustace Mullins and Ed Griffin have accused various parties of private ownership of the Federal Reserve Board of Governors but verification seems to be lacking. Do you have any information ?
Who was the foreign party that several years ago was mentioned in the news that they were going to audit the Federal Reserve ?
In the meantime would the mathematical analysis of the Federal Reserve Ponzi operation titled RIP-OFF BY THE FEDERAL RESERVE posted at
http://www.conspiracyarchive.com/Blog/?p=3908 or
http://tickerforum.org/akcs-www?singlepost=2060699 or
http://forum.webofdebt.com/viewtopic.php?f=8&t=242
contribute to your intellectual curiosity ?
It seems more money goes into commodities than equities. The FED is inflating prices for sure - the wrong ones.
So this is as good as it gets for the economy. This is the pinacle, the net result of all that stimulus an QE. This is October 2010. What isn't FUBAR?
There is no point in stimulus or QE2, teh engine is well and truly flooded, it aint going to fire till they drain all that fuel. And nobody can give you a tow (Europe, Japan) their engines are flooded also. Got to drain all that debt from the carby before engines will fire up.
One gets the feeling that the worst is yet to come, we are just marking time in quicksand.
Cash and PMs are just about it for the medium term. I wont do stocks apart from gold.
How long before Australia suffers from a strong AUD and increasing rates?
The problem I see with QE2 is that commodity prices continue to soar. Gold, silver, platinum, etc. go up - but really that doesn't affect all that many people. But when OIL goes back over $100 a barrel and gas goes to over $4 a gallon large numbers of people will be screaming as that affects almost everyone. I think oil prices are a limiting factor for the Fed and their currency devaluation games and they know it. If oil goes north of $100 what could the Fed do then?
Yes, but they are also pumping up Corn, Wheat, Oats, Sugar, Coffee, Pork Bellies, etc.
This does affect the average person in the cost of food. Also, when they push the Commodities up they are pushing the Dollar down which affects your purchasing power. So, in effect with a Depreciation in the Dollar by 20% and Food prices up 20% it is like a 40% hidden tax.
Grocery prices are going up quite a bit more than the official CPI. Spent over a week cleaning out the fridge and freezer ahead of a two week vacation. When I got back and went grocery shopping, was looking at the prices of things that I bought regularly, going WTH? Seriously, butter is up over 25%. It's not a game changer for us (yet, anyway), but for folks who put a lot more of their income (percentage wise) towards food, they are likely having to substitute, trade down, or make hard choices. This trend will only continue if the USD stays on its downward trajectory.
Somebody has to pay for all the bank losses that the FED backstopped. It must be you.
Hey, according to the "non-partisan" CBO TARP only cost 50 billion! This good news will surely improve unemployment and cause gold to drop to 200!
Muchas gracias for the pdf format! I'm not a scribd fan.
The Fed is in their game big time. QE = controlled inflation = devaluation of the dollar. The Fed is on track to slowly inflate the debt overhang away......at least as much as possible or as much as they can get away with. As the dollar devalues/drops against other currencies, that should help our export sector.
This is why equities will rise with QE.....everything will inflate, not just commodoties. Well almost everything.
The big question is when or even whether wages will move up in lockstep. If they don't then citizens will retrench further (with frugality) and demand will drop further.
I really don't know how the Fed expects the average person to cope with the planned inflation/dollar devaluation.
Do you ever feel like we're all little fish swimming in a shark tank?
A little fish yells,"Hurry, swim over here. It's safer." Then another says, "No, hurry and swim up this way." Then some wise fish says, "No, swim up and then down, just stay ahead of the shark." Some brave fish yell, "Screw you shark!", right before they get munched. Others say, "Hurry, get over here by the shark's tail. Then he can't eat you."
Bottom line is this: The shark is bigger, faster, and has row upon row of nasty sharp teeth (Geitner, Summers, Paulson, Bernanke, Goldman, Morgan Chase et. al).
The question is this: Will the shark will eat us all eventually?
Or will he save a few to reproduce so as to continue feeding in perpetuity?