• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

Is The Fed's Uberdove Turning Hawkish?

Tyler Durden's picture




 

In 1996 it was Alan Greenspan with his "irrational exuberance" call, is Janet Yellen sending the same message, as she warns...

  • *YELLEN SEES SIGNS "SOME PARTIES ARE REACHING FOR YIELD"
  • *YELLEN SAYS LOW INTEREST RATES MAY PROMPT "TOO MUCH LEVERAGE"

Did the Fed's most dovish member, and likely next chairperson just suggest that, while 'lower for longer' rates will continue, that stocks and high-yield credit look a little more than frothy.

 

Live Stream of Yellen's comments (and ongoing IMF conference)

 

And this is just months after Fed board member Jeremy Stein who launched the first hawkish warning on the visibility of asset bubble, especially in corporate credit - Overheating Corporate Credit Markets.

 

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Tue, 04/16/2013 - 15:15 | 3457572 Yen Cross
Yen Cross's picture

 'Chicken Wings' Yellen>

Tue, 04/16/2013 - 15:18 | 3457585 insanelysane
insanelysane's picture

It is getting more difficult to trot out the "Nobody could have seen this coming" excuse.

Tue, 04/16/2013 - 15:21 | 3457592 knukles
knukles's picture

No shit, Janet.
Don't forget they'll take away your ladies room key if you bitch, too much

 

This is your next Leader, BTW, or so money has it...
Be a done deal if she was a transgender minority female...

Tue, 04/16/2013 - 15:32 | 3457618 Divided States ...
Divided States of America's picture

One fuckin bomb threat and Fed J-bitch Yellen comes out of her fuckin hole and says that the Fed will stand-by to make sure markets are fuckin stable and act normally??? When was going up every fuckin day NORMAL to begin with?

Tue, 04/16/2013 - 15:23 | 3457620 McMolotov
McMolotov's picture

If Old Yellen is the next leader, she'll likely preside over The Great Collapse, which means she'll probably meet the same fate as that other canine.

Tue, 04/16/2013 - 15:29 | 3457647 Yen Cross
Yen Cross's picture

   Screaming and Yellen, moar QE!

Tue, 04/16/2013 - 16:17 | 3457933 outamyeffinway
outamyeffinway's picture

In other news: Janet Yellen just announced she is NOT interested in The Bernank's job come 2014.

Tue, 04/16/2013 - 18:33 | 3458394 AldousHuxley
AldousHuxley's picture

1)the game is....use current fed chief to bubble of all assets to get wealth back into markets.

2)when the last ponzi dumb foreign saudi prince money is all-in, alert banks to take money out and go short ,then crash the system.

3)current fed chief resigns, and president brings in the next guy as "change"

4)next guy/gal says unemployment is too high, print!

5)back to step #1

 

Communist Chinese do the same thing. so it is not the person...but the way this game works.

If you time it right and follow the Fed, you will be a wealthy men.

 

Tue, 04/16/2013 - 17:00 | 3458124 Stoploss
Stoploss's picture

Surely Janet knows the Europeans and Brits run the FED. (they are the ones who installed the financial terror organization.)

I know, she forgot to read what went down in 1910 - 1912.

Tue, 04/16/2013 - 15:22 | 3457607 slaughterer
slaughterer's picture

Yellen, the gold killer.  

Tue, 04/16/2013 - 15:44 | 3457731 oddjob
oddjob's picture

'tis shebrew doublespeak

Tue, 04/16/2013 - 15:30 | 3457646 nasdaq99
nasdaq99's picture

She should be forced to put her retirement into SPG then.

Tue, 04/16/2013 - 18:35 | 3458407 AldousHuxley
AldousHuxley's picture

retirement is for peons who work for a living to save up for a day he/she could no longer work.

 

elites don't retire. they have fun jobs playing GOD where they want to work till their death.

 

Have you ever heard of pope, politician, board member, fed chairmen wanting to retire????

Wed, 04/17/2013 - 09:50 | 3460516 old naughty
old naughty's picture

Things are changing...One Pope did!

Tue, 04/16/2013 - 15:40 | 3457700 azzhatter
azzhatter's picture

Fuck you Bernanke

Tue, 04/16/2013 - 15:15 | 3457576 Herodotus
Herodotus's picture

She should get back on the boat what brought her here.

Tue, 04/16/2013 - 15:19 | 3457577 88888
88888's picture

Janet Yellen looks like a troll. I guess thats what we need at the top of the fed.

Tue, 04/16/2013 - 15:22 | 3457598 Boston
Boston's picture

That does it.

Equities and high yield are being set up for a CRASH, just like in 2008.

Remember, gold/silver, oil, and copper all started plummeting 3-6 months BEFORE the fall of 2008, when all hell broke loose.

Tick tock.......

PS. I'm lowering my downside target for gold from 1200-1250 to 1100, because when the shit hits the fan, gold will get sucked in. USD will soar. US ten-year will go sub 1%.

Tue, 04/16/2013 - 15:34 | 3457661 NoDebt
NoDebt's picture

There you go.  Now you're catching on.

Just don't count on fast reflexes to save you when it's time to bolt.  It'll happen over a weekend.  Out every Friday afternoon at 3:59 (after the ramp, before the close).

Tue, 04/16/2013 - 15:45 | 3457729 HD
HD's picture

Indeed. I closed out my Fannie and Freddie trades 20 minutes before close the day they wiped everyone out.  One of the best trades I ever made and it was dumb luck.

Tue, 04/16/2013 - 15:44 | 3457736 fonzannoon
fonzannoon's picture

The low on gold is around $1500/oz and the low on Silver is around $29. Throw these spot prices out the window. These dealers have made it clear they won't part with them for less.

Tue, 04/16/2013 - 16:21 | 3457947 kito
Tue, 04/16/2013 - 15:54 | 3457789 dow2000
dow2000's picture

and that's when you short the US ten year and go to sleep

Tue, 04/16/2013 - 15:20 | 3457603 ekm
ekm's picture

I strongly suspect that Obama and Boehner were extremely close to ordering Bernanke to stop QE in the march meeting.

 

I strongly suspect this upcoming meeting in May we'll say bye-bye to QE.

The economy is in contraction due to it and I don't think either Obama or Boehner can risk any longer continuation of QEs, politically.

Tue, 04/16/2013 - 15:32 | 3457656 BeepBeepImAJeep
BeepBeepImAJeep's picture

I really want to believe the hierarchy works like that.

Tue, 04/16/2013 - 15:37 | 3457673 ekm
ekm's picture

It has always been like that, always.

But the MSM propaganda of the idiotic Fed independence, has made everybody numb.

 

Fed does what Congress tells them to do, PERIOD.

Fed advises and executes, Fed does NOT make final decisions.

Truth is that congersmen are clueless and agree mostly with what the Fed ADVISES. But when the shit hits the fan, congress immediately blames the Fed, as it happened in 2008.

Tue, 04/16/2013 - 15:41 | 3457710 insanelysane
insanelysane's picture

It is also becoming more difficult to tell Japan to stop "manipulating" the yen while we're printing to infinity.

Tue, 04/16/2013 - 15:42 | 3457719 ekm
ekm's picture

Japan is a USA military protectorat.

Japan does nothing, absolutely nothing, before consulting with USA.

Tue, 04/16/2013 - 18:39 | 3458429 AldousHuxley
AldousHuxley's picture

US is empire foremost, economic giant second. US CONTROLS trade, and let others exchange goods for a living.

Just like a mob, doesn't actually operate businesses.

So is WWII loser Germany (US boots there).

Tue, 04/16/2013 - 17:38 | 3458254 alangreedspank
alangreedspank's picture

True. As Nixon's Fed chairman once said, if we don't do what the president says, we'll lose our independence!

The Fed is hyper politicial. BUT, I don't know if they'll really back pedal on this one. I think the most clueless congressman knows what happens once you pull the QE rug from under the economy: a much due recession.

 

Tue, 04/16/2013 - 15:37 | 3457676 dick cheneys ghost
dick cheneys ghost's picture

click your heels together 3 times and say "there is no place like wall st, there is no place like wall st there is no place.............

Tue, 04/16/2013 - 15:34 | 3457666 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

They can't stop QE unless someone steps in to pick up the slack for buying Treasuries. Just say no and be responsible with your spending is not an option for the Federal Government. The only way it works is if Japan turns printers and full on retard speed which it looks like they will do, they have to stop ZIRP on Treasuries if Japan is to pick up the slack. There has to be some return on investment or else it won't fly. They can't stop monetizing the debt, the politicians will go nuts but they can play 3 card monty and have Japan do it for them instead. The banks and MBS securities are another issue.

Tue, 04/16/2013 - 15:40 | 3457686 ekm
ekm's picture

There are only two options left: 


1) Allow the economy to get worse and worse. We are currently contracting


2) Let a couple of primary dealers collapse along with commodity prices and allow the economy to grow.

There has been this propaganda day in and day out since 2009, that the Fed made the economy grow with the QE.

The truth is that the economy grew because George Bush released the oil from SPR and forbid margin trading of crude oil. Crude collapse to NORMAL pricing, $50/barrel.

Obama comes to power, re-allows crude oil margin trading, re-allows commodity financialization by primary dealers by use of QE money, hence economy died again.

QE = Death of real economy = Survival of few major banks.
Halting QE = Resurrection of the real economy = Death of few major banks

I am expecting stopage of QE during next Fed meeting by White House and Congress orders, who constitutionally are the bosses of the Fed.
This can no longer continue. Some banks have to die, period.

Tue, 04/16/2013 - 15:49 | 3457758 fonzannoon
fonzannoon's picture

They will allow the economy to get worse while telling us it's getting better. This is where you underestimate the power of TV

Tue, 04/16/2013 - 16:06 | 3457875 ekm
ekm's picture

It's gone too, too, too far

Tue, 04/16/2013 - 16:08 | 3457888 fonzannoon
fonzannoon's picture

correct on it's way to tooooooooooooooooooooooooooooooooooooooooooooooooooooo far. Then a 2% dip.

Tue, 04/16/2013 - 16:09 | 3457899 ekm
ekm's picture

LOL

Tue, 04/16/2013 - 16:01 | 3457847 earnyermoney
earnyermoney's picture

Stopping QE means Barry and Congress have to make tough choices. Not gonna happen.

Tue, 04/16/2013 - 16:04 | 3457857 ekm
ekm's picture

I don't think there is any 3rd option left

Tue, 04/16/2013 - 16:04 | 3457870 dick cheneys ghost
dick cheneys ghost's picture

WW3

Tue, 04/16/2013 - 16:05 | 3457878 ekm
ekm's picture

naah

right now, USA is unmatchable, love it or hate it

Tue, 04/16/2013 - 16:01 | 3457851 HD
HD's picture

ekm I can not see that happening - but how I would love for you to be right...

Tue, 04/16/2013 - 16:00 | 3457836 vote_libertaria...
vote_libertarian_party's picture

You think it's contracting now, wait until the 10 year yield is >20% after the Fed stops buying.

Tue, 04/16/2013 - 16:04 | 3457867 ekm
ekm's picture

There will be money distruction due to shadow banking liabilities exploding, derivatives.

It will create fake demand for dollars, because all shadow gambling is done in dollars

Tue, 04/16/2013 - 16:21 | 3457951 outamyeffinway
outamyeffinway's picture

And the dollar goes ballistic and KILLS the export economy. Right.

 

Oboehner can't afford to NOT QE politically.

Tue, 04/16/2013 - 16:24 | 3457972 ekm
ekm's picture

Which exports?

What is USA exporting?

Tue, 04/16/2013 - 15:22 | 3457617 slaughterer
slaughterer's picture

Say bye/bye to QE, then say hello/hello to USA sov debt default.  

Tue, 04/16/2013 - 15:24 | 3457625 fonzannoon
fonzannoon's picture

this was too easy. the gold killer.

Tue, 04/16/2013 - 15:36 | 3457674 SmallerGovNow2
SmallerGovNow2's picture

just took a nose dive erasing all gains on the day...

Tue, 04/16/2013 - 15:27 | 3457632 chistletoe
chistletoe's picture

they took away my gold

 

they took away my silver

 

now they are coming for my pressure cooker

 

whats a poor prepper to do?

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