The Fed Needs to Raise Rates Now!

EconMatters's picture

By EconMatters


ZIRP Policy & Asset Valuations


The conditions in so many asset classes are unsustainable from a price perspective once interest rates rise even under a “new normalized rate environment” and the longer rates stay at ZIRP status these unsustainable price levels continue to move in the wrong direction from a sustainability standpoint, i.e., the underlying fundamentals apart from ZIRP policy would not support said asset prices in a natural price discovery process.


Janet Yellen Always One Step Behind


Janet Yellen threw a bone to the valuation crowd with her brief discussion about certain parts of the market being overvalued, "Valuation metrics in some sectors do appear substantially stretched—particularly those for smaller firms in the social media and biotechnology industries, despite a notable downturn in equity prices for such firms early in the year". This is an obvious canned response since this question is routinely asked of the Chairperson in any question and answer session these days, “Do you see a bubble in markets?” And her previous canned response was according to our metrics of valuations….blah, blah, blah…..asset prices aren`t out of line with historical standards to paraphrase.



Social Media Bubble – Historically High Risk Reward Plays


Let me just say right here that forget talking about bubble conditions in Bio-Techs or Social Media as high valuations are pretty commonplace for these sectors in market history and investors know what they are getting into given their historic volatility and boom and bust cycles both in terms of stock prices and business sustainability. 


Treasuries Aren`t Supposed to Get Bubbly Conditions as an Asset Class


Treasuries on the other hand haven’t had a history of speculative fervor in regards to ‘Bubbly’ conditions. Investors have always considered these safe places to hide out in terms of market turmoil and uncertainty and a very conservative asset class historically. It takes quite a feat to take a conservative asset class and turn it into a bubble! 


US Treasuries have never been this mispriced and incongruent with an economy that is on pace to produce more jobs than any other time in the last 15 years, and this included the credit and housing booms with a Fed Funds Rate at 5.5%! 


And I don`t want to hear that crap about these being low level service jobs, you still need a vibrant economy to have enough people and entities that need to be served to create this many ‘service jobs’! The numbers that are being created means a whole lot of people need more goods and services produced to justify businesses hiring more workers and not just the 1% crowd. 


The Federal Reserve has gone off the rails, yeah this economy isn`t perfect far from it, but there is no way the Fed Funds Rate should be 25 basis points. Why would a bank ever lend when they can borrow at 25 basis points all the money they want, then buy some ‘safe’ Treasuries, and capture what they perceive as a risk-free arbitrage? This is the reason the GDP numbers are lagging, everything from CAP EX spending sacrificed for stock buybacks to banks chasing yield instead of creating small business loans is all part of this ridiculously out of touch ZIRP Insanity by the Federal Reserve. 

And this is where you get so much insanity that you turn a conservative asset class like Treasuries into the biggest Financial Bubble in the History of mainstream asset classes. And the Fed thinks Exit Fees on Bond Funds is going to in any way mitigate the bursting of the Bond Market Bubble? 


Deny Inflation to Justify ZIRP Religion – Reason Retail Sales Lagging Sector


Just look at the inflation numbers, another new data point came out today in the PPI for June being up another 0.4%, and the CPI next week will continue to show inflation numbers well above the Fed`s own target rate. Moreover, these inflation metrics underreport inflation due to Hedonic real world means which never show up in the data. Just a case in point is my brokerage inflation, yes the data fee packages are up massively on a year on year basis, but then there are the Hedonic inflation measures of reducing existing services, like instead of offering three DOMs of Deep Book Prices for Futures Markets, now they only offer two DOMs. 

Extrapolate this trend to all areas of market transactions to my plumber only doing part of the work, installing lines to that Kitchen Faucet is another charge apart from installing the actual faucet, i.e., previous items which were included in a price are now a la carte. Whether I am ordering a meal, getting my car repaired, or role players in the NBA getting 15 Million Dollar contracts inflation is everywhere you look in the actual real world economy. 


The point is that the Fed is basing their case on low inflation levels used to justify ZIRP policy that are severely understating inflation pressures in the real economy, and even at that the numbers are coming in well above their target levels for more than five months and counting!


Irresponsible Risk Taking in Bonds


One can make the case of what the “Normalized Fed Funds Rate” should be going forward, but given the current economic conditions it definitely should not be essentially zero right now! This is just irresponsible and reckless behavior, it is tantamount to AIG selling Credit Default Swaps to gain commissions and premiums with liabilities greater than the Insurance Firm`s overall assets. 


What the heck is the Fed doing at this point? I am sorry Janet but your ineptitude is growing by the hour, extended valuations in Social Media…..Really? What about the Freaking Bond Market… sustainable are those prices with these outsized Debt to GDP Ratios? And guess what… ZIRP Dogma in terms of incentives is the sole reason investors are buying bonds at these levels in the form of highly levered speculation plays based upon effective zero percent borrowing costs used to Buy ANYTHING with a YIELD attached to it. Literally prostitutes should not be selling sex; they should just offer up a YIELD, the Big Banks will come running! 


10-Year Duration is a Long Time


Anytime there is essentially zero percent borrowing costs, huge leverage will follow, and inappropriate and misallocation of capital will occur, and this is the current state of financial markets. And no market is more representative of this than the Bond market, and I am referring to the entire Bond market from the Periphery Euro Bonds Yields on outright bankrupt countries to the 10-Year Treasury Yield of 2.5%. 


Where is this same 10-Year Yield going to be trading 10 years from today? Who knows for certain but given historical levels, there is no rational investor in their right mind thinking this is a level that is based upon the fundamentals, and that this is a sound level to be investing in right here when evaluating the entire risk/reward profile for this duration of asset class.

Entitlements Cost Curve Negative for Longer Bond Duration Expected Value


This same 10-Year period encompasses the sharp escalation of the entitlements curve associated with the large baby boomers population hitting the books starting around 2017, what do you think DEBT to GDP will be in 2020? Yeah Janet there is a bubble, but the big and important bubble which is going to cause the next major collapse is in the Bond Market, that is the Bubble you are responsible for creating, and that is the Real Bubble you need to be worried about! 


If People start to ask you “Are You Fat?” Then You Are Fat!


You better start raising rates immediately as you are already behind the curve, and the fact that everybody is asking “Is the Fed behind the Curve” and “Does the Fed see any Bubbles” ought to concern the Federal Reserve. When the cabbie starts asking you if you are behind the curve, you are so far behind the curve it isn`t even debatable! 


Furthermore, the longer you delay raising rates the worse the situation gets, just ask yourself why are these questions even being raised? If the layperson can see it, there is a problem; and if the Fed Oracle cannot see it, this exacerbates the problem. 


Complete denial and Fed Procrastination regarding ZIRP as a Fiat Godsend and the obvious Bubble in Bond Prices only makes the Crash evermore devastating and damaging with its legacy more profound given the fact that warning signs abound everywhere for all to see except the Clueless Federal Reserve!


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RMolineaux's picture

I thought the Fed was supposed to control stock market leverage through Regulation Q.  What happened?

kurt's picture

Some very good posts by JR!

JRobby's picture

ZIRP = No rational market determined allocation of capital = artificially inflated asset values = the ELITE GET RICHER.


Ex: Stated Mortgages with 7% to 8% interest rates artificially inflated real estate values. ZIRP DOES THE SAME THING ON A MUCH LARGER SCALE


boeing747's picture

do you think those bankers who lend out money from printing press care about interest incomes? A mortgage with 4+% interest is money losing business in today's environment. But banks earned much more from 'other securities', hft, front-running, insider-trading, pumping-dumping, financial-engineering, structure-products...

Interest rate shall be raised last year and all bubbles will be gone by now.

oudinot's picture

Job creation is strong?  What planet is this guy from?  Lowest labour participation rate since the  late 70's, mostly low paying jobs, mostly part time jobs.

damicol's picture

If  you think about in precisely the same terms as you would in designing a good ponzi scheme, then the actions are logical.

The only thing that dear old Madeoff did not have was the ability to force his investors to accept ever reducing levels of return.

Only the criminally corrupt connected to lying criminally insane politicians  could  these returns on investors  and doing so involves the whole corrupt kleptocracy of the MSM the CEO's of every single  major corporation and  corrupt crony capitalist.

Then buy off the corrupt filth called the judiciary.

Now you can force your ponzi into a  lengthening and ever dwindling return whilst keeping your dumb investors calm.

Until one of them, and this is the most likely thing to happen,especially now in the EU,  one of them decides that this return is a scam and he is not playing this game anymore. negative rates make one think long and hard about who holds your cash.

Once they start to leave in sufficient numbers, and the time gets closer and closer as  other income dries up and other scams produce less and more risky returns, then capital gets removed.

Then the only possible way to keep the ponzi going is to pay out more.

But from where,  only one possible place, if they print it, it leave faster than ever as the debt rises   at an ever accelerating pace, if you try to block your investors from leaving then that will cause a panic and rush for exits, if you tax everyone more they will draw capital to replace the tax theft.

taking taxes to replace capital upheaval economy in recession and stretching statistics to  levels that even Lewis couldn't have dreamt in his most hallucinatory moments.

Nope, only one way out, one possible way only and that involves extremely violent and massive  upswings in inflation.

Either way every single fucking lying thieving corrupt crony asshole will be seen for exactly what they are  and always have been

Total utter cunts, that should be swinging








JRobby's picture

"Total utter cunts, that should be swinging"

BTW, the penalty for being Total utter cunts should be guillotine, heads piked up and down Wall Street

JRobby's picture

Madoff had his own band.

If the big band had not blown up the financial markets in 2008, Madoff would still be in business.

He is in jail, the big band is the jail, runs the jail and no big band member will ever be in jail.

Kreditanstalt's picture

There is no way this side of hell that any government will ever consider allowing the end of ZIRP.  It's the lynch-pin of the entire shebang: it allows massive government debt and spending, keeps cronies afloat, keeps the printing press working, and keeps millions of people employed at "jobs" which are really nothing more than 'misallocations of capital' ~ misallocations which would be exposed as the cheap-money-dependent shams they really are...

Raise interest rates even a touch and the whole thing goes INSOLVENT.

NEVER going to happen.

kurt's picture

By what black magic do they keep us from stopping them?

JR's picture

The Soviet Union fell, in part, for lack of a price mechanism.

Tutor2u Economics --

Government failure in a non-market economy:

The collapse of the Soviet Union in the late 1980s and early 1990s marked, for many people, the final failure of command or planned economies as a means of allocating resources among competing uses. The essence of a command economy was that the state-operated planning mechanism would decide what to produce and how to produce it and for whom to produce.

Government failure occurred when the central planners supplied products that were simply not wanted by consumers – showing a loss of allocative efficiency, since there was no price mechanism to signal changes in consumer preferences and demand. John Kay’s book “The Truth about Markets” has excellent sections on the basic fault-lines in the planning process. Another fundamental failing of the pure command economy was that there was little incentive for workers to raise productivity; few incentives to prevent poor quality control; and little innovation by firms as no profit motive existed.

"Ludwig von Mises argued in a famous 1920 article "Economic Calculation in the Socialist Commonwealth" that the pricing systems in socialist economies were necessarily deficient because if government owned or controlled the means of production, then no rational prices could be obtained for capital goods as they were merely internal transfers of goods in a socialist system and not "objects of exchange," unlike final goods. Therefore, they were unpriced and hence the system would be necessarily inefficient since the central planners would not know how to allocate the available resources efficiently.[1] This led him to declare "...that rational economic activity is impossible in a socialist commonwealth."[1] " -

"If you want more problems, economics shows that a central planner engineering a 'solution' is a great way to cause them." -- Dr. Acula, ZH

GoldIsMoney's picture

Quite funny: The fed must...

The only thing the fed realyl must is dissapear. One big Problem solved, then get rif of 90 % of the states, governments and bureaucrats and solve another big problem, then go back to money and solve even much more. But hey till then I guess it will get very very bad....

the grateful unemployed's picture

its pretty obvious the fed screwed up in 2008 when they should have raised rates. now six years out and the stock market looks pretty good, so what do you do? do you raise rates, what about mr market? he might not like it, after all it was a mistake in the first place but it had the intended result. now you cant fix anything with higher rates, but you can take away the one thing you managed to achieve? i think  you wait for the market to crash and then you raise rates and finally do the right thing

walküre's picture

Raise rates.... how? Nobody can explain to me how FED, ECB can raise the rates on all the liquidity they created and that is sloshing around in the system.

Mathematically and theoretically impossible.

Defaults, debt writedowns or writeoffs have to happen first before any normalcy can return to rates.

GDP lost 2.9% in Q1 and Q2 doesn't look any better. Pray tell, how they're even going to continue the payments at 0.01% at this point?

JR's picture

You can pay me now or you can pay me later -- Mr. Market

Benefits During Volcker's Tenure | Boundless

During his time as chairman, Paul Volcker led the Federal Reserve board and helped to end the stagflation crisis of the 1970s. The inflation rate had remained high throughout the 1970s, while the growth rate was slow and the unemployment was high. When he became chairman in 1979, inflation was high and peaked in 1981 at 13.5%. However, due to the work of Volcker and the rest of the board, the inflation rate dropped to 3.2% by 1983.

Volcker raised the federal funds target rate from 11.2% in 1979 to 20% in June of 1981. The unemployment rate became higher than 10% during this time as well. The economy was restored by 1982 as a result of the tight-money policy put in place by the Fed. Volcker chose to enact a policy of preemptive restraint during the economic upturn which increased the real interest rates. Volcker's policy also pushed the President and Congress to adopt a plan to balance the budget. Volcker's tenure as the chairman of the Federal Reserve resulted in sound monetary and fiscal integrity that achieved the goal of price stability.

May inflation: 9.9% Shadowstats

July 16, 2014 Report: Resumed Upswing in Inflation Shadowstats


walküre's picture

Volcker operated in a time when the Fed had credibility.

Good luck with that. The calls for collateral would come in so fast and furious, it would make Yellen spin on her throne.

The wall was still up and China hadn't emerged as super power.

I Write Code's picture

exsqueeze me, but is this guy saying he believes job creation is strong?

novictim's picture

Please just realize this simple fact:


If you are a Money Lender then YOU DO NOT WANT INFLATION.

Now you are armed against the enormous bullshit and ignorance found here on ZH.

OC Sure's picture




You are correct only if it is money that is being lent.

However, what bankers are issuing is counterfeit so they are stealing the entire principal of what they lend, less currency depreciation from the economy of productive work.


Ghordius's picture

that little fact is not a "stand alone", it has siblings, like


- if you are a saver, you do not want inflation and

- if you are a (small) entrepreneur, you don't want your cost calculation screwed by monetary fluctuations


on the other side, if you are heavely in debt and a homeowner, you probably think that inflation is going to help. though... eventually, you pay higher rates


wearef_ckedwithnohope's picture

I am an "END THE FED" -type guy.  That said, I found Yellen's testimony to be completely refreshing, much clearer to the layperson, forthright, and open compared to Greenspan and Bernanke.

I think she is right that almost non-existent fiscal policy has been a drag on economic recovery/growth and actually presents a headwind.  I also noted that Representative (Garrett?) got her to acknowledge that YES, the Fed will bail out systemically important Broker/Dealers (use the Discount Window, etc).  To Big To Fai and Moral Hazardl is alive and well (unfortunately)

The Most Interesting Frog in the World's picture

The 3 month is at .02%, 12 month .09%, etc. To what rate is the Fed supposed to raise the FF? The 2 year is at .48%. Raising rates now would be a calamity. 2015 at the earliest. If the economy tanks, who knows?

JR's picture

These are punishment rates; these are whips and beatings on the market. No response has been given so the men with the whips continue to strike. The stock market is not a response; it’s a gift. It’s not connected to the economy.

This is an old horse trying to pull a load. And he’s faltering. And you just stand there and whip him, expecting him with every strike to move on and he can’t.

Nowhere is this Fed interested in the state of the economy or the welfare of American citizens. It’s arrangement with the banks shows clearly that this is a deliberate run on America’s wealth and, hence, no mention of those being devastated.

I think the political realities of the situation make the most likely scenario one in which there will be some kind of real financial collapse and disorder that will require a total reconstruction of the system. It’s impossible to say how that will be done, and this may be the chance to go back to a gold standard or to a very sharply circumscribed remit for central banks.—David Stockman

“The system we have now is one in which the Fed decides, through a Politburo of planners sitting in Washington, how much liquidity is necessary, what the interest rate should be, what the unemployment rate should be, and what economic growth should be.

“There is no honest pricing left at all anywhere in the world because central banks everywhere manipulate and rig the price of all financial assets. We can’t even analyze the economy in the traditional sense anymore because so much of it depends not on market forces, but on the whims of people at the Fed.” 

lasvegaspersona's picture

The actions of the Fed make sense if you view them in the right way.

The Fed is there to fund the government and to defend the dollar.

Up until recently (2010) we ran a trade deficit with China and China took that cash and bought treasuries. Now they have 1.3 Trillion or so of them.

That was a big help. the government got to spend the funds and the dollars were not just sent out into the world economy to cause inflation.

Now things have changed. No one (except 'Belgium') is buying our debt. This means the Fed must at least buy enough government paper to fund the government. 

But it is worse than that. The dollar has soooo much debt in the system that enough new money to fund debt payment must eith be generated by the economy or just created. If it is not the debt fails. Since all money in our fiat system is just someone elses debt, it means money is lost from the system if debt fails. So debt simply cannot/will not be allowed to fail. The Fed will continue to create enough money to keep the system alive even if it means causing hyperinflation. They will spare the system even if it costs the currency it's life.

So say good bye to the dollar. The Fed will do what it can but they have known for a long time this would happen. 

In 1980 Volker raised interest rates. they simply cannot do that now. It would break the government and cause even more debt to fail.

This is the dollar's last hoorah.

JR's picture

The Fed will continue to create enough money to keep the system alive even if it means causing hyperinflation. They will spare the system even if it costs the currency it's life.

It’s never too late…to do the right thing. Not for the international bankers and their dream of world socialism, but for the people and their freedom.

The United States of America lacked only one thing in the Bankers’ Depression of the 1930s: and that was an adequate supply of money to carry on trade and commerce. But the bankers – the only source of new money and credit – deliberately refused loans to industries, stores and farms.

The result: they subsequently “took possession of hundreds of thousands of farms, homes, and business properties.”

Sound familiar?

There is a solution to America’s and the world’s -- current financial crisis. Sheldon Emry provides it in his paper: “Billions for the Bankers, Debts for the People.”

Emry explains that if Congress issued debt-free and interest-free money, “money issued in such a way would derive its value in exchange from the fact that it had come from the highest legal source in the nation and would be declared legal to pay all public and private debts.”

As America’s financial system now verges on, yes…collapse, America’s solution to her Banker Republic should be the same as Germany’s solution after the hyperinflation of the Weimar Republic.

Germany, says Emry, used debt-free and interest-free money “from 1935 and on, accounting for its startling rise from the depression to a world power in 5 years.

“Germany financed its entire government and war operation from 1935 to 1945 without gold and without debt, and it took the whole capitalist and communist world to destroy the German power over Europe and bring Europe back under the heel of the bankers.

surfsup's picture

Yes, its simply the interest aspect bearing down on its own mathematical certainty....  That several generations have been educated that interest is a normal part of a private system confuses issues further.  Take out the un earned gain of usury and the monopoliy of publication of the script by un elected committees and the matter can resolve... 

However it could be said that the fed (which not federal) is but a drill bit for the work of those who would usurp a nation... 

FredFlintstone's picture

Why would a banker want to cause hyperinflation?

novictim's picture

People who lend money NEVER want high inflation.  

Anyone who says otherwise is either payed to say that or they got their "education" from Zero Hedge.

El Vaquero's picture

Except when there is no inflation, bankers don't get paid.  Then they then have to come take your property and sell it for less than the loan used to buy it, or hold onto it and pull some bullshit, like trying to rent it out for more than people can pay.  With inflation, they get to skim off the top.  It's called seigniorage income, and it's going into government coffers and banker pockets.  Inflation benefits bankers.  Without inflation, their system collapses.  It is predicated on sustained growth.  Bankers don't want inflation, they need it.

walküre's picture

Well, well, well... the talking heads at the CBs are constantly jawboning about how low inflation is and why they can't raise rates because of it.

They may not like hyperinflation but they sure as hell want inflation or at least they say they do.

Personally, I think they're full of shit and buying gold and silver with both hands as long as the miners are willing to dig it out of the ground for their silly paper. When they have enough, they create hyperinflation and allow to default the debts away until they come out with a new monetary system that is again backed by gold, silver and what have you tangibles.

joethegorilla's picture

Because you will be selling everything you have to eat. Once you do that, the food will be gone and the things you sold will appreciate meaning you will be paying more to RENT them. This is what bankers call, "loan to own". It is a very real thing they do. The cost of food and energy go up long before the value of your home does, in fact, initally the value of your home will go down. Long after that, wages might adjust up, they might not and even if they do it could take years. Survival becomes nearly impossible between these two events because costs go up so rapidly rendering your savings and paycheck worthless. This leaves only your assets as having value which must be sold to survive. Kind of like 2008-2011 on steroids.    

JR's picture

“When the credit/debt bubble is pricked by the bankers,” Emry said, “they will foreclose on America. Then, they will own it all. There may be a ‘managed chaos’—riots and terrorism—to alarm the people with the fear of anarchy as the bankers prepare to impose a dictatorship on America as the ‘solution’ for the problems they, themselves, have created.”

He added: “Only an educated people will be able to resist the lies of the bankers’ stooges. This is why it is important for you to know the truth about how the bankers make billions for themselves and debt to the people.”

JR's picture

Central planning has never worked because of four major problems it creates:

It destroys the confidence that investors have in their ability to read the fundamentals.

It rewards inefficient business models and punishes successful models.

It encourages rampant corruption for insiders to ride on the system.

It always consistently and forever produces bubbles.

So, with the Fed now in the hands of a banking cartel that uses its power to coin money for itself, huge insurmountable problems are sweeping throughout the economy. And the economy is at the point of collapse; ZIRP the case in point.

Now, even the banker-connected financial media and the leftist-connected major media are beginning to report on the rain falling on America’s sunny day. Stories in MarketWatch are regularly suggesting equities are overpriced, that a huge correction is around the corner. Even the Financial Times begins to rain on the parade. Bloomberg just today spirits an arousing support for the dollar. And from Huffington to MSNBC, the Left begins a slow but sure turn on Hero Obama.

Why, after all the scandals and all the race-baiting and divisiveness has the Left picked this moment to turn on its standard bearer?

Veteran journalist Patrick Smith, who has written for liberal publications like The Nation and the New Yorker, said of Obama’s insufficient response to the German spy scandal in Fiscal Times: “I can think of two names for this. One is ‘outmoded arrogance.’ The other is ‘asleep at the wheel.’ Whatever the moniker, some measure of incompetence lies behind it.”

Network commentator Donny Deutsch, an avowed Democrat, said, “I’ve never seen a less-engaged look in his eyes.”  Deutsch added: “He almost seemed — I don’t want to say checked-out because that is not the right thing — but watching him, his cadence was different. He feels like he almost wants to go home at this point.”

While Chief U.S. commentator for the Financial Times, Edward Luce writes: “Mr. Obama does not appear to relish being chief executive.”

The reason the Left has now turned as it did in the late months of the Clinton presidency to fight its leader is that the nation’s economic and cultural programs are dissolving before our eyes. The programs of Jack Lew at Treasury, Eric Holder at Justice, John Podesta at Oval Office with his aggressive executive orders, even little Lois Lerner at IRS, and Israel's Benjamin Netanyahu with his daily Oval Office foreign policy directives, and NSA's full range of spy chiefs, are not only disgusting and abominable but are criminal. And the Left, following the example of its socialist mentor Joseph Stalin, is just not going to take the blame for its failed socialist, Keynesian policies. 

And now that it’s all failing, well, it simply is all Hero Obama’s fault.

And, of course, at the core of the whole rotten mess is Yellen’s Federal Reserve.


starman's picture

Come gather 'round people
Wherever you roam
And admit that the waters
Around you have grown
And accept it that soon
You'll be drenched to the bone
If your time to you
Is worth savin'
Then you better start swimmin'
Or you'll sink like a stone
For the times they are a-changin'.

Pemaquid's picture

Great article! One of these days we will get change.

Plata con Carne's picture

Major 'End the Fed' rally planned in 5 countries, 123 cities across Europe on Saturday, July 19th


OC Sure's picture

If the Fed isn't ended by September then there is the International Bankers Conference in Philadelphia on Sept 26-27:

Conference attendees include reps from these "Feds:"

Bank of Albania
Bank of Algeria
Reserve Bank of Australia
National Bank of Belgium
Central Bank of Brazil
Bank of Canada
Central Bank of Chile
People's Bank of China
Banco de la Republica
Czech National Bank
National Bank of Denmark
Bank of England
European Central Bank
Bank of Finland
Bank of France
Deutsche Bundesbank
Bank of Greece
Hong Kong Monetary Authority
Central Bank of Iceland
Reserve Bank of India
Central Bank of Ireland
Bank of Israel
Bank of Italy
Bank of Japan
Bank of Korea
Bank of Mexico
Netherlands Bank
Reserve Bank of New Zealand
Norges Bank
Central Bank of the Philippines
National Bank of Poland
Bank of Portugal
National Bank of Romania
Central Bank of Russian Federation
Saudi Arabian Monetary Agency
Monetary Authority of Singapore
Bank of Slovenia
Bank of Spain
Sveriges Riksbank
Swiss National Bank
Central Bank of Turkey
Federal Reserve Bank of Atlanta
Federal Reserve Bank of Boston
Federal Reserve Bank of Chicago
Federal Reserve Bank of Cleveland
Federal Reserve Bank of Dallas
Federal Reserve Bank of Kansas City
Federal Reserve Bank of Minneapolis
Federal Reserve Bank of New York
Federal Reserve Bank of Philadelphia
Federal Reserve Bank of Richmond
Federal Reserve Bank of San Francisco
Federal Reserve Bank of St. Louis
Federal Reserve Board
Bank for International Settlements (BIS


TrulyStupid's picture

I wouldn't bet on the attendance of the Bank of Russian Federation and their BRIC allies given their expulsion from the G8... the conference will be meaningless without their presence a  la the G7.

Bossman1967's picture

Wow this is a unbelievable article. Why is Janet not being arrested by these crooks in Washington???? If I lied to Congress they would hang me by a yardarm and I would deserve it. i am so glad I sold my business and am enjoying the last of the good times and getting prepared for the crap to hit the fan. No taxes to pay no freeloader o watch spend my hard work on pot and strippers. I gave up and after this article damn glad I did it. Now I am part of the 40 year old that will not produce bit I ask for nothing from my country but to follow the constitution.

ATM's picture

She is not being arrested because they need her to keep printing.

Look at it this way. If the Fed stops it's buying of Gvt Debt rates rise. All that debt that sits with the public - over 17T - is paying very low rates of interest. It also have a very short maturity. If rates rise, all that maturing debt needs to be rolled over and the debt service payments rise substantially.

Those payments have to be made and they cut into the power grid of the bureaucrats. If they have to pay interest they can't pay their cronies. They have less magic dust to sprinkle around. They get forced to actually prioritize spending and then we get real chaos. That's bad for those in power.

So not only will Washington not arrest her, we're going to be told how wonderful she is.

AdvancingTime's picture

The Federal Reserve has failed to take serious efforts in pushing the government to take the necessary reforms needed to move the economy forward. Policy makers aided by the media thrive at presenting simplistic answers that solve both economic and society’s problems with little or no effort required from the masses.

What started as a program to support and prop up the economy has morphed into the main driver of economic data. Between the low interest rates that has propelled investors into high risk assets in search of a positive return on their money, and money being pumped into the system, the markets have become distorted and disconnected from the economy. The idea that investors will continue to pour money into the sky high equity market is flawed. More on this subject in the article below.

Boris Alatovkrap's picture

You are mistaking in expectation of Federal Reserve (or any Central Bank). Central Bank sole function is skim profit from economy, steal wealth from wealth producer for benefit of bankster class. There is no perfunctory operation for benefit of citizenry or economy at large. This is myth propagation of well financed bankster with full cooperation of main stream media and compliant political class. There is no real objective for increase employment or control inflation other than to make pretense of such. When is in best interest of shareholder bank, maybe Federal Reserve is make action for increase of employment or control of inflation, but that is only coincidal with primary objective of enrichment of bankster and fellow crony.

... but what is Boris know!?