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It's Bullard's Turn To Pour Cold Water On Stock Ramp, Says December Taper Possible, Considers Negative Rates As Well
First it was Carl Icahn, then Larry Fink, and now it is Fed "bellwether" Bullard who take the ECB's NIRP and doubles down with a "Taper"... and NIRP
- BULLARD SAYS THINGS ARE LOOKING BETTER
- BULLARD SAYS JOBS PICTURE LOOKING BETTER
- BULLARD SAYS QUESTION IS WHETHER JOBS PICKUP SUSTAINABLE
- BULLARD SAYS A STRONG JOBS REPORT FOR NOVEMBER WOULD INCREASE PROSPECT TO TAPER IN BOND BUYING IN DECEMBER
Yeah, everyone is falling for that one again. Sure. For now however, EURUSD is buying it, and is down 100 pips on the combined action of the NIRP rumor and the possibilty of a December Taper.
But the punchline in the aftermath of the ECB rumor on just this is that the Fed just doubled down on the ECB's ownc currency war gambit:
- BULLARD WOULD LIKE STUDY OF NEGATIVE RATE FOR EXCESS RESERVES
In other words, it will soon cost everyone to keep money with the bank. As for NIRP on reserves: will banks consider lending out reserves if they have to pay a whopping 25 bps on amounts when they can use the same reserves as deposit-based collateral to buy ES and generate 20% annual returns via the S&P? Why no. They would not.
Finally, we would like to clarify that we were only joking when last night we tweeted that ...
Issuance of new $100 bill delayed as Fed decided to add "use by" expiration date on each one
— zerohedge (@zerohedge) October 5, 2010
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Those Fed fellas sound like a bunch of schizos.
Fanta-taper BS all over again is that time of the month....
I told you. Wasn't even 24 hours. Typical MO of these clowns. And Bernanke talks about credibility. What a complete joke! And they smash gold to distract and cover asses of their buddies... a criminalf fraud of a joke!
You'd think they could get their story straight tho....
There is NO RECOVERY = There will be NO TAPER
"BULLARD WOULD LIKE STUDY OF NEGATIVE RATE FOR EXCESS RESERVES"
http://research.stlouisfed.org/fred2/data/EXCRESNS_Max_630_378.png Excess Reserve Chart
So Bullard wants to study the effects of negative rates for excess reserves. He must want to drain the swamp of $1.8 Trillion, forcing the banks to lend. This would lead to a lowering, again, of credit standards which would in turn create more bubbles in various asset classes. Is he crazy???
Oh wait...the Fed needs newer and newer bubbles just to keep the economy from imploding.
Never mind....
:-)
AlaricBalth says: "Oh wait! The Fed needs newer and newer bubbles just to keep the economy from imploding"
BINGO!!!
The US bubble economy has become so desperate that it now needs negative interest rates to maintain the bubbles.
How pathetic!
Bubbles are the only thing keeping your markets afloat
Xibalba says: "Bubbles are the only thing keeping your markets afloat "
Correct! The desperate US bubble economy has now had 5+years of ZIRP and 5+years of QE ... and STILL, AFTER ALL THIS, the central bankers want to introduce NEGATIVE RATES.
Pure desperation for a complete bubble-economy.
In a sea of debt, having real liquid assets is an act of treason.
NIRP will expose the game to the sheeple. Offer 0.01% yeild with 6% inflation and people think their savings are OK. Offer -0.01% with 2% inflation and people see their "savings" slowly disappearing.
This will be the start of the dollar collapse, once people see the direct loss of savings through NIRP there will be a move towards real assets to protect value and away from the dollar.
The FED will describe this as a win because the people are spending and prices for housing and everything goes up. Just like Germany circa 1918/19
negative reserve rate = PMs through the sky.
Two things would happen, Gold wouild shoot straight up. Every ATM machine in the US would drain out within hours with runs on the banks.
There can never be a taper. Banks would go POP. Ain't gonna happen.
Kinda sucks when the only policy tool left in that hidden toolkit is press releases. The FED is a JOKE!!!!!!!
These statements are to keep the 10yr from shooting higher. But time and economic conditions are against the FED.
La la la la la... You think the big banks don't know that?
Which is all the moar reason why they'll dump all their equities in a flash crash at the first sign of trouble!
BULLTARD:
You cannot taper EVER because of this.
http://research.stlouisfed.org/fred2/series/M2V
Do ya read any of yalls own shit??
At this point, central bankers have no clue what they're doing. If they're discussing "negative interest rates," then they have become more desperate than at any time in history ... and they are truly out of bullets.
Saying they have no clue absolves them of ther EVIL. The banksters and the people who control them know EXACTLY what they are doing.
From Chaos, Order.
And by Chaos I mean hyperinflationary depression, riots, WWIII for us peasants.
Interesting times.
I hope we have justice one day.
SMG says: "Saying they have no clue absolves them of ther EVIL."
Well, they have "no clue" how to meaningfully improve the real economy other than to blow more bubbles and enrich the top 0.1%.
Absolutely correct. Evans and Bernanke implied yesterday that QEternity would be the ongoing paradigm. Now Bullard comes in and takes the punchbowl away. All perfectly choreographed to confuse even the most jaded Fed watcher.
It's all about disrupting speculative front-running the best they can while frothing up margins for some easy pickins.
Alaric - no confusion at all.
This morning, at my usual sitdown, there was no taper.
Bloody shorts, though.
All *I* need to know...
that's because there's STILL a bunch of full on r.e.t.a.r.d.s still trying to BuyTheFuckingDip, so the Fed does what it does best and lets the "market" ramp and fade, ramp and fade. A ponzi needs churn otherwise it whithers and dies
+1
Schizo is right. When I read the article I imagined quoting bart chilton who quoted billy joel who once said " you may be right, I may be crazy, but it just may be a lunatic you're looking for."
LOL!
Jobs pickup? Right, because it is totally obvious from the employment participation rate. Its effects can cleary be seen in industrial production and cpi.
What data is he looking at?
The FED is just a bunch of script readers now.
Fake hegelian dialectics.
To me there is only this question: a) Which black swan will end b) when this endless rigmarole.
Will somebody please shoot these assholes? How many bit coins do you need?
I never understood why serial killers concentrated on hookers and homosexuals...so many better targets, like bankers.
even serial killers have standards when it comes to being around scum
The " Bull " in Bullard says it all.
More QE in December it is!
I think you meant to say..
"MOOOOAAAARRRRR QE in December it is!
They needed cover for a continued smash of the gold price, the cunts that they are.
He should change his last name to Bullshit. Because that's exactly what he's full of. Ever notice how they use the regional presidents of the FR to obfuscate and misdirect from the real truth?
YEAH!!
MONKEY SAYS but MONKEY ALSO DO?!
I predict in 2014....there will be multiple taper action during the day AND multiple reverse taper during the day
Day traders dream/ nightmare
Kind of like the Goatse guy's dream/nightmare.
If you like your taper you can't keep your taper!
I missed gold at $275/oz years ago. So, whatever it takes...please Lord....
What does Bullard say about this? As of the latest data released on November 8, 2013, the total is 47.7 million, which is more than the entire populations of many large nations.
http://www.trivisonno.com/food-stamps-charts
'Things are looking better'....depends on what the definition of 'things' is.
This should be good for some nice stock manipulation right before the holdiays.
It is all about how to best set the politically correct stage for the new Fed ChairQueenBee, Boris Yelstin. The only thing that will make them taper is the need to cover her ass for PC reasons.
The Fed can Taper when Treasury issuance goes down and it can either sell into a liquidity starved market or not buy the new paper. Everything the Fed and Treasury do is about maintaining federal debt liquidity.
All new F.R.N.'s will have a 1 week 'spend by' expiration date before they poof into a pile of dust.
@SheepDog-One:
you may be closer to it than you think...If any of you have been listening to Jim Willie (The Golden Jackass), his last few long interviews have stated that from what he has been told when this all finally collapses there will be 2 US dollar systems. To ensure that those holding our dollar and bonds outside of the U.S. don't get smashed and lose everthing, they will keep the value of those dollars at a 1:1 rate. However, all dollars inside the U.S. will be locked down...you won't be able to get anything out and you won't be able to get anything in. And our dollars will be devalued by around 50% to start with.
He says at the same time the BRICS and other countries who will be dumping the dollar and switching systems will all flip the "switch" at the same time to the new gold trade standard. Americans will be left in the dust (as you put it above) if they haven't converted a large portion of their fiat into hard assets and food supplies, etc. before this reset occurs.
The framework and infrastructure for the new global trade system based on some gold and a basket of currencies outside of the dollar (think no more petro-dollar hegemony) is rapidly being built and bilteral trade agreements between countries even our so-called "allies" to trade their currencies and gold for oil are also rapidly being contractualized.
Once they get their new "swift" type system in place for trade that excludes the U.S. dollar, or at least marginalizes it to non-world reserve status, they will turn the system on and the great monetary reset will begin.
Whether that's really how it will be, who knows...but we all know the dollar is going to be crushed (by design) and replaced with something else...some other kind of system...and folks...if you think the new system won't be a catastrophe in a major way to our way of life in America then you're smokin' somthing mighty powerful.
That's why this massive homeland police state is being built up around us...to control us when the bank runs and food riots start, etc. It's gonna get ugly folks...very ugly...
Domestic ownership of T notes/bonds (ex-Fed) has remained pretty constant from '00 @ $2.5 T while public Treasury debt has exploded by $9 T ...all of this increase has been shouldered by QE and "foreign" purchasers.
Why would US holders be in a rush to flip T's to Fed while foreigners are happy to have over $5 T in medium / long term US debt (while jawboning about a collapsing dollar)???
What Willie proposes above could make sense...
Here's the last Jim Willie interview with Greg Hunter of USAWatchDog.com posted on www.SilverDoctors.com from the 15th. The title of the link says it all, but Jim really gets into all the gruesome details of what he has been told is going to happen with the dollar in his interview below with Greg Hunter:
Jim Willie: The Financial System is Imploding, 50% Overnight Dollar Devaluation Coming!http://www.silverdoctors.com/jim-willie-the-financial-system-is-imploding-50-overnight-dollar-devaluation-coming/
Youtube link with Greg Hunter:
https://www.youtube.com/embed/IPQRWrSdGF0
Sounds plausible.
When will it happen?
My guess is Dec 23 this year, the centennial year of the Fed- Merry Christmas bitchez!
Negative rates is when the shooting starts.
is he saying all that because his name is "BULLard"? Or more like he's totally full of BULLShit!???
Negative rates may be good since it will encourage us to pull our deposits out of the bank and put them under the mattress, where they will be protected from a bail-in.
I think Draghi and Bullard should go into a ring and fix it like men do .... no knives alowed
So, now banks want to adopt a model whereby they make you pay them to hold your money? Yeah, that should be good for business. - NOT.
LOP..NEVER underestimate the stupidity of the sheep.
They will spin it as...
"For 3% per year, your money can be safely stored in the vault of -insert yout favorite TBTF- and insured by the good faith and credit of the US Government"." They will roll out kegstanding depositors and pictures of hot teller chicks going down on fat middle-aged dudes at the counter. To sweeten the deal after 5 years of "good deposit history" they will throw in a spiderman towel.
And they will come.
riggggggggghhhhhttttt...."foreigners" now own 50% (up from 30% in '08)+ of all Treasury debt over 1yr...the Fed owns 22% (up from 4% in '08)...if Fed actually tapered, wonder if "foreign" holders of Treasuries would stick around to take the losses...or might they taper their $5 T in notes/bonds before the Fed could taper it's $2T??? How stupid are do they suppose we are (don't answer, rhetorical ?)
Even if deficits come down...somebody has to roll over the $12 T in public debt...and @ what rate would they do this if they know the Fed intends on reducing it's role in the T market and rates would be rising (ensuring losses for buyers of T's???)
Domestic ownership of T notes/bonds (ex-Fed) has remained pretty constant from '00 @ $2.5 T while public Treasury debt has exploded by $9 T ...all of this increase has been shouldered by QE and "foreign" purchasers
EVERYTHING IS BETTER!!!!!!!!!!!!!!!!!!!111111111111111111
And gold is down on this.... facepalm....
http://i39.tinypic.com/35i172a.png
The US needs to taper before the Fed purchases dwarf the deficit otherwise the Fed will struggle to find the liquidty for their POMO.
Also, interest rates will not rise until the deficit is closed or substantially narrowed, as the US cannot afford to finance a large deficit at higher rates.
People need to acknowledge that the deficit has been shrinking. Govt spending is down and tax revenue is rising.*
*past is no indication of the future, but things have been improving in recent times.
It's suspicious how they want the intraday sell-off so they can get enough sellers to buy from.
Sellers beware...
These people are nothing but ANIMALS..out of control double speaking ANIMALS and they will say and do whatever they wish and stuff their pockets with the destroyed futures of the middle class. They are going to be regurtitating the same things in 2014/15 and 2019...I pray the entire ponzi collapses while they are Jamming increased QE down our throats and we have -0.25% ONLY then will they no longer be able to print and the zombies might finally put 2+2 together.
I'm going to Taper. No I'm not. Shhhh! Quiet Sybil, they'll hear us talking and think we're crazy!
Anyone know the capacity of a cattle car? How many do we need to order?
Is he saying that pedophiles are going to to voluntarily abstain because it is the right thing to do?
Moron is he. They are bankers.
Bankers won't stop until they are locked up.
No good lying M'Fer.
Just more hype and lies
You have to give the system credit.
With fucktards like this it is a miracle it has lasted this long.
I really hope it does not last much longer. Right now they are trying to get to 2020
Someone should tell BULLARD that he is not boss of the federal reserve.