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Bernanke Leaks, Spoils the Punch
Bernanke Leaks, Spills the Punch
Jon Hilsenrath, at the WSJ, must have had a phone call with Ben Bernanke on Saturday. Accordingly, Jon put an article out just in time to influence the market on Monday morning. The headline says it all:
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No doubt, Bernanke is watching the price of crude and the tape is telling him his inflation forecast is no good. The leak this evening is just Ben’s way of hinting to the market that he understands where we are on inflation, and he is not going to stir the pot anymore than he has.
The WSJ article indicates that the Fed is on hold for at least three months, till June. Moreover, Bernanke can’t do anything big on the monetary front within five months before a national election. Therefore, the next legitimate time for another LSAP/QE is in December of 2012.
Bernanke’s leak to Hilsenrath is not really new news. I have been saying that Ben is "done" for some time. This confirms it.
I don’t expect this development to significantly move markets. I see it as being mildly dollar supportive (other bigger factors are at play). It should put a floor under bond yields, but I don’t see this as a reason to sell bonds. It might very well take some froth out of the stock markets. I don’t see it affecting the price of crude one way or the other (again, bigger factors will drive crude).
Ben and Jon aren’t taking away the punch bowl just yet. We have a very long road ahead of ZIRP, and already bloated Fed balance sheets. I think the Fed is keeping the punch bowl full, but not putting any alcohol in it. Bernanke’s new punch might quench your thirst, but it won't get you high.
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Said it before, I'll say it again. I’m disgusted that Bernanke uses Hilsenrath and the WSJ as his go-to place to leak monetary policy. Bernanke made a big deal about improving transparency at the Fed recently. He just blew any credibility that he might have gained. Nothing has changed. Ben B. is a leaker.
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barry is on the way to reelection, and that should support the status quo. every primary mitt wins is one more notch in obamas holster. bernanke should be happy he accomplished his mission (reverse that if you will) of providing the incumbent a base (of faux economic news) to run upon. today he made the usual conciliatory speech to AIPAC, which the MSM did not call a LOBBY. hmm. anyway BB is a bit player. and so is obama.
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If the central banks ever stop buying, or actually begin to reduce their totally bloated, abnormal, freakishly large balance sheets, all of these speculators are going to sell their bonds in a heartbeat.
That's what happened in Greece.
Here's the heart of the matter. The Fed is a patsy. It is a pathetic dependent of the big Wall Street banks, traders and hedge funds. Everything (it does) is designed to keep this rickety structure from unwinding.
Re the ChairSatan. His misbegotten policies have ruined my life in my retirement years. May he RIH. We need some sane people in the FR .
RIH = Rest in Heaven, right?
(Just kidding...)
Why do we need a fed?
This is 1937 de ja vu. I have wondered if Bernanke has changed his understanding of Fed policies during the Great Depression. When you walk in their moccassins, you can finally understand. Will Bernanke choose hyperinflation?
Bernanke is a cog in a Zionist death-machine. He "chooses" nothing. Cannot raise interest rates, and it no longer matters whether he prints a lot or a little. Caught in a zillion dollar debt trap with hyperinflation - soon to be sparked by ZOGwar in the Middle East - now inevitable.
Yes, you can see that things are getting a bit shaky. To use an old, tired cliche', it's a house of cards and the wind is threatening to pick up. It could be within month(s), or a few years, but it is terminal.
I will choose to interpret this as the Fed panicking that they have been pedal-to-the-metal for too long. This is the beginning of the Fed's panic.
Ringgg Ringgg
J.H. - "Hello Bernank's beotch...I mean, Wall Street Journal."
Dark Voice - "Blue Horseshoe's bladder is full...I repeat, bladder full"
click.
Hahahaha, the Fed paniking, good one. Last time I checked they not only had everyone bamboozled and hanging on everyone of their words like they were Jesus come back, but have everyone eating out of their hands, The whole world including you and me are still grubbing for those FRN's, are we not. They have and are buying everyone and everything they want including the strongest military force in the world. Oh yea, they just love people thinking that they are sooooo scared. Ha!
Agree.
I think it may be sinking in that the world does not work the way their models say it does.
What Bernanke says and what he does are two different things. He is continuing easy monetary policy. Call it QE, call it whatever; through FX swaps to the ECB, through ZIRP, through OT2 he is continuing QE. Call it what you want.
Sure, we have headline reading algos. Sure, we have headline reading traders. Yet when it comes down to it, the fiat spigot is fully open, and is more than leaking. The world is awash in fiat, and currently it is drowning in a sea of fiat; worthless fucking fiat.
When a dog pisses on a fire hydrant, he's not being a vagrant - he's just being a dog. Thus, Bernanke pissing in the punch bowl shouldn't surprise anyone.