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Is The Fed Going To Attempt A Controlled Collapse?
Originally posted at NotQuant.com,
As most Fed watchers know, last week was interesting because Janet Yellen, speaking at IMF came out and said something quite surprising. In a nutshell, she said “It’s not the Fed’s job to pop bubbles”. While many market participants immediately took this to mean, “To the moon, Alice!” and started buying equities hand over fist, there’s another possible explanation for Mrs. Yellen’s proclamation of unwillingness: The Fed could be preparing to do exactly what it said it wouldn’t.
Here’s a quick re-cap of events: In the recently released Annual Report of the BIS: Bank for International Settlements (commonly thought of as the “central bank’s central bank”) the BIS made a rather ominous recommendation to it’s member banks: Pop this bubble now. Their specific language wasn’t quite so direct, but the message was just as clear.
The risk of normalising too late and too gradually should not be underestimated… The trade-off is now between the risk of bringing forward the downward leg of the cycle and that of suffering a bigger bust later on .
Few are ready to curb financial booms that make everyone feel illusively richer. Or to hold back on quick fixes for output slowdowns, even if such measures threaten to add fuel to unsustainable financial booms,” …
“The road ahead may be a long one. All the more reason, then, to start the journey sooner rather than later.”
As we noted last week, there are a couple of fascinating things to note about this recommendation. First, for anyone who thinks that the concept of intentionally crashing the stock market is the stuff of conspiracy theorists, that notion is now dead and buried. It’s extremely clear from the BIS’ language, that the concept of initiating a collapse is openly discussed as a policy measure. This was a direct recommendation to bring on the crash – or as they say so colorfully, to “bring forward the downward leg of the cycle”.
More kabuki?
But what else is fascinating is that just days after the BIS report was released, Janet Yellen seemed to counter the BIS in her presentation to the IMF:
“At this point, it should be clear that I think efforts to build resilience in the financial system are critical to minimizing the chance of financial instability and the potential damage from it. This focus on resilience differs from much of the public discussion, which often concerns whether some particular asset class is experiencing a ‘bubble’ and whether policymakers should attempt to pop the bubble. Because a resilient financial system can withstand unexpected developments, identification of bubbles is less critical.”
What Yellen seemed to be saying — quite possibly in direct response to the BIS’s recommendations — is that the Fed isn’t in the business of popping bubbles, nor does it see a reason to intervene in their development.
So to summarize: The BIS publicly recommended popping the bubble now… and Yellen said no.
So what’s going on?
We could take all of this at face value if we chose: The BIS playing hawk, and the Fed playing dove. And that might well be the case — as to some extent Yellen is still something of an unknown entity.
But there is one more twist to the puzzle: Yellen has openly stated that she would not be offering clear guidance to the market as her predecessor had advocated. The age of Fed-glastnost is apparently coming to an end.
So indulge us for a moment as we present another possibility:
Yellen is going to orchestrate a controlled collapse. Or, at least one which we hope is controlled.
There are political considerations to be made, however: The Fed, which has not only come under intense fire for overt market manipulation, but which is also deeply concerned with market perception, simply cannot afford to be perceived as an instrument of the market’s collapse. To be seen as the instigator of a crash could do irreparable harm to the institution.
Pop bubbles? Who us?
So just maybe the Fed fully intends on heeding the advice of the BIS, and is strategically positioning itself as a stalwart dove to shield itself from the public fallout of it’s orchestrated financial calamity. A particularly sound play from a political perspective in the event that things don’t go as smoothly as planned.
One thing is certain at this point: An intentionally orchestrated crash is the direct recommendation of the BIS, per it’s annual report. That this action exists as a potential policy measure is now confirmed.
The remaining question is: Would the Federal Reserve pursue such a policy measure openly, or behind the same curtains from which most of their historic policies were enacted.
As we re-think Mrs. Yellen’s speech to the IMF, we are less certain that the Fed is as unwilling to intervene as Mrs Yellen would have us believe. Bringing forward the next leg of the cycle, may well be on the Fed’s agenda.
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The Irrational Exuberance was a product of Alan Greenspan and his supposed "hands off" pump priming of the investment system. Yes, you cannot be "hands off" and at the same time "pump prime".
WHY and HOW did the FED juice the Stock Market and the Housing Bubble?
Why has the rate of inflation been kept so low and the unemployment rate allowed to stay so high (double or more the healthy rate of unemployment)? Who does the ZIRP and the QE and the lax regulation on financial centers int he USA serve?
Who does the elected government of the USA serve? Who does the Fed serve?
Answering those questions should help inform us about what Yellen will plan to do in the future.
It is just an example of Keynesianism at work. It is just the machinations of the "Controlled Economy"
Why aren't you cheerleading it, socialist? Are you a little double minded? Keynesianism is good...until it is not?
Tall-Tale Tommy, it is clear to everyone that your words come right out of your ass.
Why not man-up and actually challenge your own ideas? Oh, that is right. You don't have any. You just echo the other clowns here.
The bubble won't be popped until the pension funds are closer to being healthy. My contention all along that the Fed has been propping up the market to avoid having to bail out the underfunded pensions. Of course they know this game can't continue forever, but the unions and other large pensions holders were in deep shit, and to have the middle class fucked over any more than they already are would bring out the pitchforks even sooner. Won't happen before the election however, as it will be tough to blame Bush or the Republocrats.
I wonder if the big pensions will be told to sell first and avoid the stampede as everyone rushes to exit all at once.
There is no way to save much of the pensions. They are dependent on much higher returns than we have seen in a long, long, time. It's a sinking ship. What investment will bring enough profit to make up for the loss? There is nothing, nothing but speculation.
"What investment will bring enough profit to make up for the loss?"
Candy Crush.... It's recovering nicely. There.
Absoulutely
Much cheaper to use leverage to reflate the funds than to bail out
Now it's just a matter of who gets to exit first
Apparently mayor of Flint, MI never got the memo
Auntie Yellen told me September 2016
During President Jackson's times, the Bank did this in the open, which is why it incurred his wrath.
So, why not?
We only need to discover her secret time table
they're not going to do shit while a black man is the head of office.
I'd start getting ready when another white dude takes office.
Their "vision" of a global slave-force would be set back tremendously if the US collapsed under the eye of a black dude.
yo das rayciss......
of course you cannot criticize a negro or "yore rayciss"...that's why the Socialist Semite Media paved his way with lies.
that's why he is there.....next up
"your sexiss" if you criticize Hitlery
You will be late to the party. If you have not been getting ready in the present then there is absolutely no hope for you.
The Shitstorm Express is on schedule. And it is heading your way.
Controlled collapse?
Yes. It's been the plan all along.
Of course the article means the current bubblicious capital markets. But I believe that G. Edward Griffin had it right all along: they mean to dominate by way of a one-world government. America must be destroyed and RUssia must look like the good guy. Etc.
Nobody, looking at debt-based fiat money, can conclude anything other than it must fail; these guys aren't stupid. They want it to fail.
I say one more bout of deflation so the Semite scum can lap up assets at bahhhhhgan prices, then TSHTFF....got to fleece out anyone still holding some coin.
I think it is not a controlled collapse that the FED is trying to achieve.
I think that the FED has lost control and knows that they don't have control over what happens.
That is why they are striving for more resilience of the financial system.
That's exactly it
So when it collapses, Janet can say it was planned and went off as she warned it would
She's trying to create a new Fed that actually looks like they had a clue at least one time in its history
Why do some organized crime members get jailtime for manipulating markets while others get speaking engagements, book tours, and fat government pensions?
http://news.msn.com/crime-justice/former-mob-boss-son-convicted-of-finan...
Nicodemo S. Scarfo, the son of former Philadelphia Mafia leader Nicodemo D. Scarfo, was convicted of multiple counts including racketeering conspiracy, conspiracy to commit securities fraud and wire fraud.
A second lead defendant, Salvatore Pellulo, who prosecutors said ran the business takeover, was convicted of similar charges, including racketeering conspiracy and conspiracy to commit securities fraud.
The government said Scarfo and his co-defendants used threats of harm to take over the board of publicly held FirstPlus Financial Group, an Irving, Texas-based mortgage company, and then had the company buy shell companies they owned so they could take out the assets. The company is now defunct.
Prosecutors said the conspirators plundered $12 million in less than a year, buying homes, weapons, ammunition, a plane, luxury cars, jewelry and an $850,000 yacht they named "Priceless." They also alleged some of the money was used to pay organized crime debt.
I think the FED will do it but just not in an election year or in a year prior to an election year or in a year 2 years prior to an election year or in a year that is after an election year; other than that it is go time.
this election cycle may be different.. the history of politics L then R then L then R.. implies R this time, therefore, throwing obummer under the bus is not without possibility... ( not that it will make a hill O' beans difference fake L = fake R )
When a headline asks a question, the answer is "No." #LongAndStrong
Exactly, it's an election year. The Federal Reserve will try and please Obama by pumping up the economy and bubbles as large as they can.
I'm selling plaster casts of his genitalia......all three of them.
Pee Wee Yellen says - "I meant to do that!!"
the entire Fed history is a giant, never ending story of expand, expand.. BOOM.. contract.
this is entirly predictable, and on track.
Controlled collapse is an oxymoron.
No one is in 'control'.
Ahhh, no. If it collapses, it will need to do so under its own weight. You are being overly optimistic.
"Controlled collapse"?
That's like jumping off the Empire State building and thinking flapping your arms will give you a controlled fall.
The Fed is just a distraction. The real question is "Does Goldman want a controlled crash?".
And the answer is probably "No. They can make much more money from an uncontrolled crash."
It might not be the Feds job to Pop a Bubble, but it sure dam is it's job to create one.
Head Troll in Charge of Bubbles, Bitchez. The five or six year phony balony Telethon (banking crisis fund raiser) ends the only way it can, with a big fail ... and nobody goes to jail.
Our Governor of the Bank of CANADA is taking a similar position in terms of not forcing an interest rate rise when in fact the Equilibrium Economists are all calling for it.
CANADA's Prime Minister's Office PMO does not want any interference either. In brief, Yellen is simply playing it safe when it comes to plausible deniability when it comes to any possible crash or probable crash that may manifest in the future. Dancing on the head of a pin takes discretion
and that is Yellen's position IMHO. No bureaucrat wants to
invite litigation over their role or possible role in a crash. The bitch is circumspect and that is typical of most
in that level of power as they are instructed not to volunteer information by their puppet masters.
Strangely, I hear the clown economists here on ZH refer to Yellen's comment that she is a "Keynesian" as opposed to being an acolyte of Milton Friedman (the SOB who convinced us that sending jobs to China was a "good thing") as somehow being significant.
Not to worry.
Keynesian policy requires a congress that is willing to create public works projects sufficient to lower the unemployment rate to normal levels and boost economic growth. The Federal Reserve and Treasury have no such legislative spending power.
The FED can lower interest rates and buy bad bonds til the cows come home but they cannot get your bridges fixed or built or get a water reservoir constructed or create any single one of the thousands of necessary public spending projects our nation desperately needs.
So while we desperately NEED Keynesian stimulus spending (starting 6 years ago!) we are never going to see Keynesian policy until the American people get control over their democracy again.
Idjit.
Words drop from mouth like shit from ass.
Milton Friedman was a Monetarist Keynesianist.
Keynesian Economics is taught in every single Business School in America....including the Chicago School.
Controlled Economies...PLANNED ECONOMIES...are destined for failure as there is no Political Will to follow the plan but the Politicians will only do that which is expedient, in their OWN SELF INTEREST.
It is a watse of time even responding to your drivel.
Remember...As Tricky Dick "I am not a Crook" Nixon sez, "We are all Keynesianists now."
Well Uncle Milton Friedman was Dick Nixon's TOP ADVISOR ON ECONOMIC POLICY.
Why don't you fucking wake up???
You Tom are a MORON!
Milton Friedman on Keynes: "I don't and never have accepted the basic elements of his theory".
https://www.youtube.com/watch?v=N6RWWWjE2Rc&feature=kp
How do you folks here manage to stay so stupid?
The collapse is out of the Fed's hands. The illegakl alien invasion, the Isreali v Hamas conflict (Iran knows that Obama is paralyzed), and oil spiking to 110 ... will front run the Fed. And then it gets really scary as the Fe3d has no idea, like Obama , what to do.
no no no dont worry, 2014 drop the zero divide by 2 stuff
we are safe, no 7's here, 2 + 0 + 1 + 4 = aw shit, never mind
OT but you might want to take a look at this.
http://enenews.com/quake-near-indian-point-loud-boom
5.0 quake in a crystalline rock layer that extends under New York's Indian River power plant.
A slightly louder version of the "ting" you hear when you tap a fingernail to good lead crystal. Lead for the nuke plant, of course.
So, who or what tapped that crystal under Indian River?
From here, ZIRP, to COMA eternity. the anaesthetic is working perfectly like boiling the frog one degree at a time. Gettng long Time, zero hedging.
I like investing in markets that can be "controlled collapsed."
several outcomes are possible. the fed may actually achieve a soft deflationary landing (in their dreams). somehow they have to shrink the money supply, while expanding credit. if you expand the money supply while shrinking credit you have a real problem. the fed is almost there too, if every claim agoinst a dollar was made whole the money supply would be ten times what it is. basically they have to buy back those claims in order to keep inflation somewhat normal. if they can buy existing bonds, while issueing new bonds, they will succeed. if all the new bond they issue are TIPS it might work. TIPS are the fed killer, buy TIPS if you want to end the FED.
TIPS will be TINPS.
Promises are broken easily. Both Fed and Treasury know it.
Why would the Treasury's promise to protect securities from inflation be less likely to default than their other promises?
One promise is as easily broken as another.
Revelation 6:6
New International Version
Then I heard what sounded like a voice among the four living creatures, saying, "Two pounds of wheat for a day's wages, and six pounds of barley for a day's wages, and do not damage the oil and the wine!"
New Living Translation
And I heard a voice from among the four living beings say, "A loaf of wheat bread or three loaves of barley will cost a day's pay. And don't waste the olive oil and wine."
English Standard Version
And I heard what seemed to be a voice in the midst of the four living creatures, saying, “A quart of wheat for a denarius, and three quarts of barley for a denarius, and do not harm the oil and wine!”
New American Standard Bible
And I heard something like a voice in the center of the four living creatures saying, "A quart of wheat for a denarius, and three quarts of barley for a denarius; and do not damage the oil and the wine."
King James Bible
And I heard a voice in the midst of the four beasts say, A measure of wheat for a penny, and three measures of barley for a penny; and see thou hurt not the oil and the wine.
Holman Christian Standard Bible
Then I heard something like a voice among the four living creatures say, "A quart of wheat for a denarius, and three quarts of barley for a denarius--but do not harm the olive oil and the wine."
International Standard Version
I heard what sounded like a voice from among the four living creatures, saying, "One day's ration of wheat for a day's wage, or three day's ration of barley for a day's wage! But don't damage the olive oil or the wine!"
NET Bible
Then I heard something like a voice from among the four living creatures saying, "A quart of wheat will cost a day's pay and three quarts of barley will cost a day's pay. But do not damage the olive oil and the wine!"
Aramaic Bible in Plain English
And I heard a voice from among The Beasts, which said, “A two-quart measure of wheat for a denarius and three two-quart measures of barley for a denarius, and you shall not harm the wine and the oil.”
GOD'S WORD® Translation
I heard what sounded like a voice from among the four living creatures, saying, "A quart of wheat for a day's pay or three quarts of barley for a day's pay. But do not damage the olive oil and the wine."
Jubilee Bible 2000
And I heard a voice in the midst of the four animals, which said, A choenix of wheat for a denarius and three choenix of barley for a denarius; and see thou hurt not the oil and the wine.
King James 2000 Bible
And I heard a voice in the midst of the four living creatures say, A measure of wheat for a penny, and three measures of barley for a penny; and see you hurt not the oil and the wine.
American King James Version
And I heard a voice in the middle of the four beasts say, A measure of wheat for a penny, and three measures of barley for a penny; and see you hurt not the oil and the wine.
American Standard Version
And I heard as it were a voice in the midst of the four living creatures saying, A measure of wheat for a shilling, and three measures of barley for a shilling; and the oil and the wine hurt thou not.
Douay-Rheims Bible
And I heard as it were a voice in the midst of the four living creatures, saying: Two pounds of wheat for a penny, and thrice two pounds of barley for a penny, and see thou hurt not the wine and the oil.
Darby Bible Translation
And I heard as a voice in the midst of the four living creatures saying, A choenix of wheat for a denarius, and three choenixes of barley for a denarius: and do not injure the oil and the wine.
English Revised Version
And I heard as it were a voice in the midst of the four living creatures saying, A measure of wheat for a penny and three measures of barley for a penny; and the oil and the wine hurt thou not.
Webster's Bible Translation
And I heard a voice in the midst of the four living beings say, A measure of wheat for a penny, and three measures of barley for a penny; and see thou hurt not the oil and the wine.
Weymouth New Testament
And I heard what seemed to be a voice speaking in the midst of the four living creatures, and saying, "A quart of wheat for a shilling, and three quarts of barley for a shilling; but do not injure either the oil or the wine."
World English Bible
I heard a voice in the midst of the four living creatures saying, "A choenix of wheat for a denarius, and three choenix of barley for a denarius! Don't damage the oil and the wine!"
Young's Literal Translation
and I heard a voice in the midst of the four living creatures saying, 'A measure of wheat for a denary, and three measures of barley for a denary,' and 'The oil and the wine thou mayest not injure.'
Better to bare the rebuke of the wise than to hear the song of fools ..... Mickster 17-16
Well actually it is Ecclesiastes
Read a little further. X-ians will be getting their heads lopped off. Eat the food of the dead, for free.
Screw this Zero hedge thread. There is one set of dialogue when you are not logged in and another when you are. My comments are not shown to everyone. Who is it that said that the internet is not controlled?
What is shown on your screen is not necessary what other people see on their screen.
Every single post which I made on this thread is visible when I logged out and checked. They were all there.
Perhaps it is your ISP which is actively censoring...
Could be google.
its strange how a crisis really clears your head, i said at the 2008 bottom that the FED must RAISE interest rates in order to PRICE risk according to the market conditions. people smarter than me said your nuts, but i said isnt' that the FEDs job to maintain stability, ( then you must price risk accordingly, risk is undervalued) now after 7 years the FEDs bizarro reaction may finally be the right decision. now is the time to lower interest rates, and they will, to negative yields and money velocity. the FED is a one note band. how in the hell could anyone trust these people?
Collapse? Yes.
But it occurred in 1933, not 2014. That’s when the American people embraced the notion that it was a “good thing” for government to TAKE from one to GIVE to another. That was the end of private property, and, coincidentally, the main goal of the communist manifesto.
Few Americans can remember private property or lawful money (gold and silver coin), from 81 years ago. All that Americans have experienced since, were taxable qualified ownership and worthless paper notes.
But the biggest loss was the eradication of the republican form of government from each succeeding generation. (No, it’s not a “constitutional republic!”) Not one in 100,000 Americans can accurately define it, nor know of its source. (No, it’s not the U.S. constitution.) In fact, few Americans are aware that there is only one nation on earth with a republican form of government. That is tragic.
Soon, we shall awaken in the People’s Democratic Socialist Republic of America and wonder how it all happened.
We had lawful silver money, at least some, until 1964.
Meet the new boss (BIS) same as the old boss (The Fed).
Only sheeple will believe the meme that somehow the Fed will be "in control" during the coming collapse. Bankers will quickly become an endangered species as hope is lost and reality sets in.
Go watch "Rollover" for an idea of what's in store.
Well it can do it by bringing gold into the currency equation. That would help stabilise any wind down and stop it accelerating into the abyss.
The best answ. ..thus the one they will try last
Bingo! And if there are wars for oil, there should be wars for gold. Not that I advocate wars. But stolen property retrieval services should be created. What good is oil if no one can afford it. This is a planned demolition, however, and they are just dancing the 2-step for historical recording purposes. Financial institutions created a global predatory approach to just about everything that matters.
Some levity:
Senior trying to set a password:WINDOWS: Please enter your new password:
USER: “cabbage”
WINDOWS: Sorry, the password must be more than 8 characters.
USER: “boiled cabbage”
WINDOWS: Sorry, the password must contain 1 numerical character.
USER: “1 boiled cabbage”
WINDOWS: Sorry, the password cannot have blank spaces.
USER: “50bloodyboiledcabbages”
WINDOWS: Sorry, the password must contain at least one upper case character.
USER: “50BLOODYboiledcabbages”
WINDOWS: Sorry, the password cannot use more than one upper case character consecutively.
USER: “50BloodyBoiledCabbagesShovedUpYourAssIfYouDon'tGiveMeAccessNow!”
WINDOWS: Sorry, the password cannot contain punctuation.
USER: “ReallyPissedOff50BloodyBoiledCabbagesShovedUpYourAssIfYouDontGiveMeAccessNow”
WINDOWS: Sorry, that password is already in use.
"Collapse" ? Yes
"Controlled"? No
I agreed ugliness lies ahead. I love the way it is always being kicked out a year or two and never going to happen tomorrow. It is as if we can't handle what is coming at us and need more time.
For a long time I have been trying to develop a scenario for a market "super crash" and a reasonable map that would arrive at such a situation. Below is an article looking at how it could happen sooner rather than later.
http://brucewilds.blogspot.com/2013/01/flash-crash-on-steroids.html
"super crash"
Flashy.
Peter Pan"Collapse" ? Yes
"Controlled"? No
---
Collapse yes
Controlled, yes, controlled so that the elite profit from it while the rest of us suffer.
It worked so well for the Soviet Union. What's not to like?
Controlled!!! When has the FED been in control?
My question is where the money going to flow too when equities go south?
Utilities, USD, farmland, Gold, Basic food??? I see the gate quite small on a number of these.
I've been pondering the answers but lack a clear strategy.
I contend the primary reason that inflation has not raised its ugly head or become a major economic issue is because we are pouring such a large percentage of wealth into intangible products or goods. If faith drops in these intangible "promises" and money suddenly flows into tangible goods seeking a safe haven inflation will soar. Like many of those who study the economy I worry about the massive debt being accumulated by governments and the rate that central banks have expanded the money supply.
The timetable on which economic events unfold is often quite uneven and this supports the possibility of an inflation scenario. A key issue being one of timing. If the price of gas jumps to $8 a gallon overnight do you buy gas and not make your car payment or stop driving the twenty miles to work? Answer, it could be months before your car is repossessed so you buy gas.
It is important to remember that debts can go unpaid and promises be left unfilled. If this happens where does it leave us? Chaos and major disruption would result from such a scenario. As we have seen from the economic crisis of 2008 and following many other unsettling developments legal actions can continue to drag on for years. More in the article below.
http://brucewilds.blogspot.com/2014/04/inflation-seed-of-economic-chaos....
"I got a pocketful of promises"
The Feds can always force domestic debt holders to roll over their holdings but I'm not too sure that will work with foreign debt holders.
The tsunami of inflation from the rush from debt to real assets will be breathtaking to behold.
The bright side is that Wang Chung Motors might produce a better product when they buy out GM.
Why do you want to save these people?
Because he has a heart?
yes but people in other countries have it way worse...
'controlled collapse' means the fed member banks made a sh*tload of money, and now it's time to stick the bill to the dumb tax paying citzenry. Again! Another even larger wealth transfer from the poor to the rich.
99.99999999% of the citzenry do not understand how all this works. Bread and circus. It's 2 am and I can't sleep. Is it because there a private entity raping and pillaging the land? No. I need a hot plate of microwaved nachos after accidentally falling asleep on the couch after work and missed dinner.
"It is well that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." — Henry Ford
I would love deflation, suits me perfectly. But they wont allow that to happen until they hyperinflate.
Logically their has to be a crash at some time, the longer they leave it the greater its dimensions and thus less predictable its consequences.
They could go the bail-in mode, but is their enough savings out there to actually to make enough difference? Unless the bail-in to the tune of 50% or some such number guaranteed to create civil war. And what the point of bail-in if other equations dont change and they continue to rack up $1trn deficits? Bail-ins become just can kicking buy another few years and totally murdering the domestic economy. Its self defeating. Though who knows, the bankster owned politicians may rape every cent from the people for them and leave the bodies.
There is No way out - keep printing, so long as the whole world follows suit the USD retains relative worth, but that cant continue as Europe and China will have to bite the bullet soon.
Inevitable that there will be a major crash with domino effects and all sorts of unitended consequences. Major WAR is something the US wants, something they can control better - but their allies are fucking sick of the US and you can bet Germany and others will tell them to fuck off if they try that route. Already enough pissed off over US heavy hand over Ukraine, and fining banks for geo-political ends. AND you can bet China and Russia will be happy to avoid major conflict giving time for the US to collapse, let them die from their own cancer.
At the end of the day, aka Roman Empire - the US military machine will have to shrink, it will happen slowly and bankrupt the country even further...but when they have nothing left to pay defence companies, and soldiers....well its game up.
I think gold may be the next best option for a major reset that could limit damage, so long as the US can continue to lie about its holdiings.
I think before we speculate on what the Fed might do, it's good to ask what it can do.
So what exactly does this mean: "...build resilience in the financial system..."? Exactly how does the Fed define "the financial system" and "resilience"? And then what can it do to increase "resilience"?
I don't think bursting the bubble is building resilience. It seems they want to backstop the financial system, however defined, to withstand the burst. That could be as simple as buying equities or it could be diversifying away from the dollar or even doing bailins ahead of a burst. But clearly its goal isn't to collapse the market per se. Which doesn't mean its actions are not going to screw most of us big time.
The "Free Market" will be blamed. Count on it.
When Erich Canter gave his concession speech, he smiled and lied through his teeth, and still does so today never acknowledging the damage he did as hachet man to Boehner.
I figure Yellen is 10X the liar out to do as much damage and mayhem as possible, as long as it benefits her people.
Even the Ponzi creators are getting nervous, they have nowhere else to stuff the cash.
I think this may be right. The Fed cannot sustain it's policy of Atlasing the market much longer. Some type of collapse is coming. But first, SPY to 200 (any takers on that bet?)
Scoping the new subprime as watchdogs cry 'bubble'
9 July 2014, by Mike Dolan - London (Reuters)
http://www.reuters.com/article/2014/07/09/us-investment-analysis-idUSKBN0FE0F420140709
she said “It’s not the Fed’s job to pop bubbles”.
Ummm... yes, it is, at least according to former Fed chief William take-away-the-punch-bowl-just-as-the-party-gets-going Martin.
nothing is left but collapse
it peaking can yer feel it
controlled demolition events 1 shape or another.
talking of dried up old cunts.
what the fuck is this french whore talkin about
kinda kabalistic jewish init.
when did the g8 become g7 was it jan no when was russia kicked out? preprogrammed folks.
rothschild satanism scripted shit
Occult Message in Speech by Christine Lagarde of IMFhttp://www.youtube.com/watch?v=QYmViPTndxw#t=105
that was the first time i had ever sat down and made myself watch a yellen speech. and i'll be damned if she doesn't sound exactly like you stereotypical elitist academic bitch. i had to turn the channel after about 10 minutes of forcing myself to listen to all the statist keynesian blather pouring forth from her crooked (literally) lips
Who makes Kevlar? Is that stock rallying?
I have a different read on Yellen's statement:
"...I think efforts to build resilience in the financial system are critical..."
Q: How does the Fed build resilience in the financial system?
A: By taking away the punch bowl.
Rate hike and market crash coming.
Soon to be followed by QE4.
Why don't we just give whatever money is left to the Rothchilds and the other Fed Untouchable families and tell them all to stick all of the USD & EURO currency up there collective asses. We should all start buying and selling in yuan or reminibi or bitcoin or whatever the fuck. the sooner the better.
Seeing as the Fed attempted QE and failed, it would be a fairly safe assumption that the Fed attempting a "controlled" collapse is going to fail, too. At least the attempt at control part.
No, we just inflate them! Not my job to clean up the mess!
The taper is a fraud. All they are doing is buying less in visible ways, and buying more in invisible ways (through other central banks and other intermediaries). The fed is nothing but pure manipulation, both financial and psychological.