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Did The Fed's Magic Just Run Out?
Jackson Hole - that magical place where the world's greatest monetary central planners gather once a year to yarn long into the night about how they are printing money, crushing the middle-class, monetizing debt, and ramping asset prices; all in the name of economic progress and saving the world from the c-word... "counterfactual" that is. The last few years, Jackson Hole has also been a guaranteed Buy-The-Rumor and Buy-The-News moment for the smartest traders in the world... except this time something just changed.
- 2014 AUG 22 Yellen, Draghi, & Kuroda Let-Down - 1992.4 to 1988.4, -4
- 2013 AUG 22-23 No Bernanke Speech, Yellen Dovishness - 1642.8 to 1663.50, +21
- 2012 AUG 31-SEP 1 Bernanke QE3 Case - 1399 to 1413, +14
- 2011 AUG 26-27 Bernanke Moar - 1159 to 1210, +51
- 2010 AUG 27 Bernanke QE2 unveiled - 1047 to 1064, +17
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Did the Fed's magic just run out?
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gold, bitchez.
Substitute the world 'lies' for magic and the story makes much more sense.
I'm certain their is plenty of magic dust, it's just the confidence is beginning to wane.
Relax Tyler. It's only a flesh wound.
Hmmm. Looks pretty red, though.
wait til monday, spooze has all weekend to melt up on no volume because WW3 didn't actually start this weekend.
Wait, What predicts SPX will make a a 29th record this year before tuesday. no justification, just because.
Magic is the art of illusion; deception. You should reflect on all the stories of witchcraft and sorcery you ever heard, as having been filtered through the pre-literate mind.
Sorcery is the art of deception. And what do we do with witches?
It's a delusion, an illusion brought on by deception. One of my favorite chapters in the Scriptures is 2 Thes 2. Here God is telling the people if it is Fantasyland they wish to live in, then He will grant their hearts desire.
Below excerpt from:
http://www.theatlantic.com/doc/200905/goldberg-economy
THE WAY I SEE IT, it’s all a con game,” Cody Lundin was saying. “What I mean is that Wall Street has always been an illusion. Now it’s an illusion that’s crumbling. Wall Street is like someone who’s having heart trouble. It’s in constant need of resuscitation, but after a while, it just doesn’t work anymore. People think that Bernard Madoff was unique, that he was an illusion, but he’s just an extension of the same illusion, the same con game. This is one of the reasons I don’t like to have any debt. When you have debt, you become part of this illusion, and sometimes you get trapped by it.”
2 Thes 2:1 Now we beseech you, brethren, by the coming of our Lord Jesus Christ, and by our gathering together unto Him,
2 That ye be not soon shaken in mind, or be troubled, neither by spirit, nor by word, nor by letter as from us, as that the day of Christ is at hand.
3 Let no man deceive you by any means: for that day shall not come, except there come a falling away first, and that man of sin be revealed, the son of perdition;
4 Who opposeth and exalteth himself above all that is called God, or that is worshipped; so that he as God sitteth in the temple of God, shewing himself that he is God.
5 Remember ye not, that, when I was yet with you, I told you these things?
6 And now ye know what withholdeth that he might be revealed in his time.
7 For the mystery of iniquity doth already work: only he who now letteth will let, until he be taken out of the way.
8 And then shall that wicked be revealed, whom the Lord shall consume with the spirit of His mouth, and shall destroy with the brightness of His coming:
9 Even him, whose coming is after the working of Satan with all power and signs and lying wonders,
10 And with all deceivableness of unrighteousness in them that perish; because they received not the love of the truth, that they might be saved.
11 And for this cause God shall send them strong delusion, that they should believe a lie:
12 That they all might be damned who believed not the truth, but had pleasure in unrighteousness.
13 But we are bound to give thanks always to God for you, brethren beloved of the Lord, because God hath from the beginning chosen you to salvation through sanctification of the Spirit and belief of the truth:
14 Whereunto He called you by our gospel, to the obtaining of the glory of our Lord Jesus Christ.
15 Therefore, brethren, stand fast, and hold the traditions which ye have been taught, whether by word, or our epistle.
16 Now our Lord Jesus Christ Himself, and God, even our Father, which hath loved us, and hath given us everlasting consolation and good hope through grace,
17 Comfort your hearts, and stablish you in every good word and work
The Wizard,
You wrote: "It's a delusion, an illusion..."
Then, you wrote" "...my favorite chapters in the Scriptures is 2 Thes 2."
Can you see the conundrum I am facing here?
Can’t tell which one is what!
Whiskey Mystics and Men
Does this work: Delusion = Illusion + Deception. The illusion exists because of deception. I'll have to reword that sentence.
The 'idea' of a 'Savior' is an illusion. "You must go through 'Me' in order to get to the 'Father' is my favorite Jesus 'quote'. In layman's terms, 'You must understand the nature of your 'self' before the right foundation can be laid to understand 'God'.....
True, we do have to understand the nature of "self", which is corrupt by nature. That is exactly why we need a Savior, to save us from ourself. However, many believe hu-mans are not corrupt by nature. That would pose a problem with my logic.
what a vile, ugly, loathsome "religion" you must believe in, in order to say that the self is corrupt by nature.
i hope you overcome your brainwashing.
"Here God is telling the people if it is Fantasyland they wish to live in, then He will grant their hearts desire."
Speaking of delusions...
Fed Fucks jacking off at Jackson Hole.
Who gives a shit what these assholes say or do?
Poof its gone
+1 for Kaiser Soze reference.
If the Fed's magic runs out, run for the exits!
So Jack,
No more endless growth and effective technique of social control.
Your avatar doesn't help.
lameo
No. The Fed is the Market.
No, the mkt is the Fed.
In Toto
Magic? I like that David Copperfield fella.
Personally, Penn and Teller are better. They like don't like gun control or PETA.
Nor any version of 9/11 events other than the official government sanctioned version. Fucking tools.
the Fed relies more on the black satanic variety...
Awwwwwwwww what happened
they run out of their endless supply of BS
Yeah, sure. Next you will tell me that they ran out of fiat money. Pidgeon woman allways carries a knapsack of both.
Some background on the liquidation of the middle class: http://www.thenewamerican.com/reviews/books/item/17630-book-review-inter...
Free trade agreements are NWO bricks..
Can you hear Ross Perot's giant sucking sound
NOW
its a temporary glitch - eeeevery thing is fine.....
eerie how these two markets volume are converging..
What would a Crypto currency collapse look like?
http://kolinevans.wordpress.com/2014/08/22/what-would-a-crypto-currency-...
dig
the crypto coin thing is best viewed with a long term outlook.
Anything can be used as a store of value including your great great granny's old hutch. Anything thing can be used as a medium of exchange....including the hutch ..'I'll trade you a hutch for some tires.'
In the monetary system coming there will be many media of exchange, the most used will be the currencies of large trading countries. There will be one best store of value. It will be the one thing the world has always used as a store of value. It will have intrinsic value and will not have counter party risk. It will be the one thing central banks either already have or are acquiring now. It won't be made of paper. I think I know what it is and it is not a crypto currency....though I'd have no problem using those for exchange....I certainly won't be stuffing my safe with them.
Gold...'get you some'...Ari
You forgot the k in magick
Like Magic Johnson, it's ultimately a medical condition
heh heh heh.... hole.
Just wait until the fed runs, period.
Maybe, but they still have plenty of ink
Monday!... Monday!... Bah Dah... Bah Dah Dah Dah...
The "extended period" spell was not used.
The "easing dove" was made to disappear.
The furry "taper rabbit" was not put back in the black top hat.
The "ZIRP Lady" was sawn in half and did not come back on stage.
Did Mrs. Debtfire just kill that wascally wabbit...?
The magic runs out when enough people wise up to how the trick is done.
There is a loooooong way to go by that metric. Most people cannot even figure out how to play the game, much less win at it.
Hardly anyone of the educated people I know even know what the Fed does, or should be doing.
Based on poll results, 40% of the people won't wise up until the EBT cards stop working, and honestly, that will just result in the first few of the 40% figuring it out, it's going to take the neighbors dying of starvation in the street before we get to an 80% awareness level in this country. We'll never see anything much higher than that.
QE is ending, rates are rising, and the stock market will go down. The Fed didn't even try any magic this time, and whatever magical powers they seemed to have possessed in the past were certaily enhanced by the willing suspension of disbelief on the part of the traders. Now that the charmed circle has been broken by Yellen, the dancers are starting to weary of the ball. The days events do not appear to me to contain any mystery.
"QE is ending, rates are rising," - Bullshit, show me the fucking balance sheet motherfucker and wake me when rates get back to their historical avergaes.
. . . and show me who's behind the Belgian buyer of UST paper.
Check the old documents. "Belgium" is as fictional as Iraq. There haven't been any Belgians since Romans.killed.them.all. Its a way of life...
Right, the proof is in the offered rate.
Until that rises on the UST column, don't jack me off with hopeful statements.
GooseShtepping Moron,
Their logic goes something like this:
a) Deflate the market and consumer prices
b) Investor run for safety: US Treasuries [keep dollar King perception]
c) Hidden QE: Protect the Global Reserve Currency
You ever drive a dune buggy? On the beach sand?
You can go for miles until you try to turn around. When you cut the turn, you bog down and get stuck in the sand.
how many years can investors/traders buy the line "the economy is improving, but" we just need to give big banks a few more trillion dollars
obamas entire presidency has been marked by nonstop, cheery, positive and upbeat stories about the "improving" econ omy
The Kenyan Keynesian's presidency is also marked by:
**Permacampaigning
**Teleprompted speeches
**Endless golf
**Endless delays in implementing 'affordable care act' ('we were just kidding...')
**Dozens and dozens of executive orders
Is it almost over? Are we there yet??! That's right, it doesn't matter.
The Fed has an infinite supply of rabbits to pull out of their hat and lots of pixie dust to sprinkle over top of everything.
I used to think the markets were too big for them to really control in the conspiracy theory sense. Now I know I was dead wrong, I have the wrecked shell of a prudently invested 401k to show for it. They will not trend the market down until they are net short and ready to scarf up on some cheap assets.
No other options left.
Either financial wipeout of insolvent bank lobby oligarchs or assassinated executives lying on streets
Mr. Yellen.... Tear down this market!
Don't water the garden gnome. We have a water shortage.
The fed never had magic...only smoke & mirrors, and of course a gulible sheeple!
aka PINKO COMMIE FASCISTS---many lurking here on ZH as "Americans"....
Alfred,
The average wage slave walking down the street knows multiples more about honey boo-boo than the Fed. 9 out of 10 people, maybe more like 97 out of 100 could not even tell you in plain words what the Fed was or what function it performed. Dual Mandate? Wazzat? Stimulus? Whazzat some kinda free car loan or somthin?
What actual commentary from Ferguson got out negates your premise. Try again, and this time, don't present a construct that frames a bunch of people you don't know as the cause of all your personal troubles. Practice this and the truth will soon be revealed.
All they do is control more-and-more of less-and-less . This is what the Hausdorff-index means . The system collapses eventually from complexification (as per Tainter)
Or , the off-book economy tootles off to do it's own thing . (Jared Diamond Collapse)
See http://andreswhy.blogspot.com/2013/02/hierarchical-reserves-ii.html
"Ta-da! You see? There's nothing in there!"
"Gaaaaasssssppppp"
magic still working
SPY up big this week. Jackson Hole has not lost it's charm.
"If we put a littlle old gray haired lady in as the head of the Fed and this thing blows up with bad timing and max defaults, they are less likely to bury her up to her neck at low tide and they'll go slow enough for us to get outa Dodge."
where can i get the "what recovery?" t-shirt?
should be a best seller by now... better than the V for Vendeta mask.
Delusional academics and bureaucrats still think that you can direct global markets as you did before as a real economic power with manageable debts.
Many Global traders can observe Fed waning influence and while they fear the priniting presses that can upturn their positions, they are into high liquidity spaces with risk on hats.
Fed & ECB want to keep the banksters alive from an implosion of their derivatives and the Creditor Nations (Bankers) want to have their fees for this game. (There is no shortage of short term and long term spaces to play in the World just the risk/return trade-off). US still provides the best liquid trading space and Fed has to maintain it for the new rollers.
All spins from manipulated data (eg growth, inflation) from whichevever/wherever HOLE to raise interest rate or stay ZIRP are just porns for the muppets.
SPX with a 90 points viagra move up in the last 5 - 10 days. I would suggest that the J-hole ramp was just anticipated this time.
That's the thing about magic... it never runs out. That's the thing about ponzis... they can't be tapered.
Yup. When the magician reaches into the hat and there's no white rabbit to pull out, the show is over.
I sure hope so.
Paul Krugman's solution would be to print a lot more money. That way everyone is a millionaire.
Much of the economic landscape is beginning to look like something out of "Alice And The Looking Glass" A bizarre and unrecognizable land, a land that is distorted and papered over by ream after ream of paper. This paper has been rolling off the printing presses of central banks all across the world in an attempt to mask reality.
Peter Schiff says, printing money is to the economy what taking drugs is to a drug addict. In the short term it makes the economy feel good, but in the long run it is much worse off. What was once the "long run" or "distant future" may be getting much closer. More on what happens when the momentum ends in the article below.
http://brucewilds.blogspot.com/2013/01/what-happens-after-momentum-ends_...