Monetary Policy

Tyler Durden's picture

Norway's Giant Sovereign Wealth Fund Goes Full Tinfoil Fringe Blog





You know the world has gone mad when one of the world's largest pension funds, mired in its need for the maintenance of the status quo, begins to sound like 'digital dickweeds in their parents' basements'. Norway's massive $890 billion wealth fund has stepped out of the shadows to slam global central bankers for affecting "pricing in today’s market to such an extent that monetary policy itself has been a risk you have to watch;" and market structure, criticizing the proliferation of dark pools, "there’s a rent extraction from all these intermediaries... we’re in favor of trying to reduce the number of block-crossing venues," Schanke said, "one would probably be perfect."

 
Tyler Durden's picture

3 Things: Kass, Rosie and Short





The reality is, like dominoes, that once one of these issues becomes a problem, the rest become a problem as well. Central Banks have had the ability to deal with one-off events up to this point by directing monetary policy tools to bail out Greece, boost stock prices to boost confidence or suppress interest rates to support growth. However, it is the contagion of issues that renders such tools ineffective in staving off the tide of the next financial crisis. One thing is for sure, this time is "different than the last" in terms of the catalyst that sparks the next great mean reverting event, but the outcome will be the same as it always has been.

 
Tyler Durden's picture

Futures Unexpectedly Red Despite Disappointing Economic Data From Around The Globe





Today is shaping up to be a rerun of yesterday where another frenzied Asian session that has seen both the Shanghai Composite and the Nikkei close higher yet again (following the weakest Chinese HSBC mfg PMI in one year which in an upside down world means more easing and thus higher stocks) has for now led to lower US equity futures with the driver, at least in the early session, being a statement by the BOJ's Kuroda that there’s a "possibility" the Bank of Japan’s 2% inflation target will be delayed and may occur in April 2016.

 
Tyler Durden's picture

"Above The Law" Fed Ignores Congressional Deadline On FOMC Minutes Leak Probe





In a stunning shun to Congressional lawmakers, WSJ reports that The Fed has failed to comply with a request that the bank-owned entity identify the individuals who leaked The FOMC Minutes to Medley Global Advisors a day before the official release in October 2012. Rep. Jeb Hensarling sent a letter to Fed Chairwoman Janet Yellen on April 15 asking the Fed to name them by 5 p.m. EDT April 22. The deadline passed without any response by the Fed...

 
Tyler Durden's picture

The Humility Of Rates And The Arrogance Of Equities





In 2014, all but a few argued that the path of interest rates was certainly higher. Despite a steady decline beginning on January 1st of 2014 and continuing today, everyone still insists strenuously that interest rates simply have to go up. What if all the arguments about growth in the US economy and much anticipated rate hikes by the Federal Reserve hinged upon a decision-making premise that is flawed? What if instead of the standard and variety of factors informing the consensus perspective about the direction of interest rates it is actually interest rates themselves that are sending signals that should inform our perspective about all other things?

 
GoldCore's picture

Currency Wars Back as Russia Buys One Million Ounces of Gold in March





Russian gold reserves, at nearly 40 million ounces, are now fifth largest in the world. Like China, Russia is likely to underreport its gold reserve accumulation. 

 
Tyler Durden's picture

Stop The Presses: Nobel-Prize Winning Economist Slams QE





"An alternate, more sophisticated approach to explaining why QE may not work to stimulate aggregate consumption is, perhaps, because the demographic mix of the U.S. (and most parts of the developed world) has shifted toward older people. Unlike 30 or 40 years ago, the enormous baby boomer generation, and even retirees, are much wealthier (including human capital) than in the past, and they are wealthier than current generations earlier in their life cycle.  So the wealth effect does not lead to an increase in consumption and, potentially, has the opposite outcome."

- Robert Merton

 
Tyler Durden's picture

China Cuts Reserve Ratio Most Since 2008 In Scramble To Preserve Equity Bubble, Boost Economy





As we observed yesterday when we showed that if comparing the collapse in China's housing market with that of the US following their respective peaks then China is already a recession, we added that "as shown in the chart below [China] has recently engaged in several easing steps, with many more to come according to the sell-side consensus." Sure enough, just a few hours later, the PBOC announced its second Reserve Requirement Ratio (RRR) for all banks since February 4, when China had its first industry-wide RRR cut since May 2012. The move will be effective Monday, April 20.

 
Tyler Durden's picture

What Bernanke's New Employer Had To Say About Him Just 2 Years Ago





Having previously explained the 175,846,629,768 reasons why former Fed Chair Ben Bernanke would join Citadel - the most-levered hedge fund in the world and alleged conduit of fed put protection; we thought it intriguing to note what billionaire Citadel Ken Griffin had to say about Bernanke and his policies just 2 years ago...

 
Tyler Durden's picture

China Sees Largest Capital Outflow In Three Years Amid Currency Conundrum





"The last time China suffered such pace of capital outflows was during 2012 when $165bn of capital left during the last three quarters of that year. And before then it was during the Lehman crisis," JPM notes, in yet another sign that Beijing is stuck between a rock and a hard place as it battles to maintain the dollar peg in the face of slumping economic growth.

 
Marc To Market's picture

Dollar Bulls Bend, but Don't Break





After trending sharply higher in recent months, the US dollar has entered a consolidative range against most of the major currencies.

 
Tyler Durden's picture

One Last Look At The Real Economy Before It Implodes - Part 5





The endgame has indeed arrived. At the very least, the international elites seem to think success is within their grasp, for they now openly expose their own criminality. But they do so in a way that attempts to divert blame or to rationalize their actions as being for the "greater good." All signs and evidence point to what the IMF calls the "great global economic reset.”" The plans for this reset do not include U.S. prosperity or a thriving dollar.

 
Tyler Durden's picture

Is This How The Bank Of Japan "Signals" It Is About To Boost QE?





As we have noted previously, The Bank of Japan (BoJ) is one of a handful of central banks that trade on global stock markets. The finance ministry holds a 55% stake of the Jasdaq-traded security, which as one analyst noted "seems like an odd investment." However, it appears BoJ shares serve a different purpose - to signal an imminent easing to the market. As Bloomberg reports, BoJ stock has surged almost 30% in the last few days on very heavy volume... the previous 4 times we saw spikes in price and volume, Japanese authorities eased significantly in the following days.

 
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