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Mr. "QE4" Tells Hilsenrath He Now Wants To "Get Going" With Rate Hikes Soon

Tyler Durden's picture




 

Having saved the world markets from a 10% correction fate worse than death (or recession) in October with 'hints' of reigniting QE4, The Fed's Jim Bullard is back to his jawboning best. Blaming The ECB's looming unconventional policy move for the global bond market rally (as opposed to collapsing growth and disinflation), Bullard proclaims the domestic US economy is doing well with tailwinds from low rates and oil prices (just don't tell the 7,000 Baker Hughes workers this morning) and tells WSJ's Jon Hilsenrath that he wants to “get going” with rate increases warning that the funds rate is 400bps below normal.

Via The Wall Street Journal,

Mr. Bullard said U.S. long-term rates are being pulled down by global factors, and not new threats to the domestic economy. He wants to “get going” with rate increases. Below are excerpts of the interview with Mr. Bullard:

 

WSJ: This drop in 10-year Treasury bond yields, how are you thinking about what’s driving that and what signal it’s sending?

 

MR. BULLARD: There has been a global bond rally over the last year and I think most of that is due to the specter of ECB quantitative easing. At the beginning of 2014 people were expecting the euro area to have a relatively good year. It was supposed to be the year of recovery and growth. When we got to midyear it was not so much and the inflation numbers in particular continued to decline and that just got worse. So the probability of the ECB going to unconventional monetary policy started to get higher and higher. I think that has been the primary driver of the global bond rally and that has pulled U.S. rates down with it.

 

WSJ: Does it tell you anything about the U.S. economy and in particular the outlook for U.S. inflation?

 

Mr. BULLARD: No I don’t really think so because I think it is being driven by the specter of ECB quantitative easing. I don’t think it is really a signal of U.S. economic strength. The U.S. data has been quite good. We’ve got consumer sentiment at an 11 year high, growth probably 4%-plus over the last three quarters, jobs growth best since 1999 in 2014, unemployment at 5.6% and falling, a lot of good numbers on the U.S. economy. Plus oil is down 50%. That is a positive for the U.S. economy. Plus you’ve got the global bond rally driving U.S. interest rates down. So there are a lot of good things going on in the U.S. economy, plus we’ve got these tailwinds from the oil situation and from the longer-term interest rate situation. I think all of those are very bullish for the U.S.

 

...

 

WSJ: Do any of these developments in 10-year yields, or breakevens or headline inflation give you any pause about raising rates this year?

 

MR. BULLARD: I still think we should get off zero (interest rates). The kinds of things we’re observing now, it is not the constellation of data that would be consistent with a zero policy rate. I think it is important to get started and to start normalizing policy. Even once we start to normalize, interest rates would still be extremely low. We’re talking about levels of 50 basis points or 75 basis points. That is still extremely low and that would still be putting upward pressure on inflation even if we did that. So I’d like to get going. I don’t think we can any longer rationalize a zero interest rate policy.

 

What I would be willing to do is adjust the frequency of rate hikes and adjust the pace of the normalization process in reaction to data, so that if inflation indeed does not behave the way we think it will, we can pause in that process and reassess at that point.  I’d like to make the pace of tightening be more data dependent than it would have been in 2004 to 2006.

 

...

 

MR. BULLARD:  It is important to acknowledge the improvements in the real economy that have occurred. We really had a pretty good year in 2014. We have had a dramatic fall in unemployment, good jobs gains, pretty good economic growth. The thing about the funds rate is it is 400 basis points below normal. We’ve really got an emergency setting for the policy rate right now and we don’t have an emergency constellation of data anymore.

So roughly translated: instead of buy stocks because QE4 is coming... Bullard is sell bonds because we're gonna raise rates any minute you greater fools... and when we do that is awesome for stocks, so greatly rotate...

 

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Tue, 01/20/2015 - 14:44 | 5684724 Jahbulon
Jahbulon's picture

This guy is as corrupt as Monday is long........

Tue, 01/20/2015 - 14:48 | 5684744 Arius
Arius's picture

probably the guy is not good enough to carry it out live on CNBS ... hence WSJ with written answers... whatever

Tue, 01/20/2015 - 14:50 | 5684757 InjectTheVenom
InjectTheVenom's picture

sorry way OT , but does anyone know how to get rid of all these pop-up ads all over my screen ?   Do i need to use a different browser for ZH and/or a particular anti-spyware program or something ?    Thanx in advance for advice on this !

Tue, 01/20/2015 - 14:51 | 5684781 FL_Conservative
FL_Conservative's picture

Man speak with fork tongue.....

Tue, 01/20/2015 - 15:01 | 5684828 Charles Wilson
Charles Wilson's picture

Having replaced a Market with a Semi-Corrupt Market with a "Fair Value" Market with a "AwwwFuggit Market", we now find a person who knows...Just KNOWS... what the Interest Rate should be.

"Oh, and uhhh...by the way, you would be better off if you had to pay $5.12 for that gallon of milk you just paid $4.27 for..."

 

Great, just great.  "'N Greta...Would you mind getting our guests, Mr. Bernanke and Mr. Yellen, some more of those yummy crackers with the holes in them?...'N some more wine...'N...will the steaks be ready soon?  I'm hungry..."

Tue, 01/20/2015 - 15:05 | 5684849 SWRichmond
SWRichmond's picture

jawbone of an ass....it's the only tool they have left.

Tue, 01/20/2015 - 15:09 | 5684866 Uchtdorf
Uchtdorf's picture

You know Lehi? Cool. Well, the subject of this article needs a good beating by one of those a la Samson of old.

 

Judges 15:

14 And when he came unto Lehi, the Philistines shouted against him: and the Spirit of the Lord came mightily upon him, and the cords that were upon his arms became as flax that was burnt with fire, and his bands loosed from off his hands.

 15 And he found a new jawbone of an ass, and put forth his hand, and took it, and slew a thousand men therewith.

 16 And Samson said, With the jawbone of an ass, heaps upon heaps, with the jaw of an ass have I slain a thousand men.

 17 And it came to pass, when he had made an end of speaking, that he cast away the jawbone out of his hand, and called that place Ramath-lehi.

Tue, 01/20/2015 - 15:13 | 5684881 Headbanger
Headbanger's picture

YEAH, BECAUSE CHINA IS ABOUT TO DROP THE US DOLLAH LIKE A HOT EGG ROLL IF THE FERAL RESERVE DEVALUES IT ANY FURTHER

SEE: SNB DUMPED EURO.

YOU MOOKS!

Tue, 01/20/2015 - 15:13 | 5684892 Overfed
Overfed's picture

I dare those muffuggers to raise rates. To 1980s levels. I double dog dare 'em. Go on! Do it! Raise them rates sky high!

Tue, 01/20/2015 - 15:24 | 5684952 Pool Shark
Pool Shark's picture

 

 

Raise rates???!!!

 

HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAA!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

Tue, 01/20/2015 - 15:32 | 5684993 linniepar
linniepar's picture

Only 400 pips? You mean, this is why gramps is bagging groceries?

Tue, 01/20/2015 - 16:41 | 5685296 eclectic syncretist
eclectic syncretist's picture

Perhaps they will raise rates to try and counteract the effects of the dollar losing reserve status. 

They want to stem the tide.

Tue, 01/20/2015 - 15:57 | 5685094 popeye
popeye's picture

The point that no-one seems to notice is that all financial markets are rigged all the time. How can a CB know the natural interest rate for an economy, particularly given it will change with time. They can guess, but thats all it is.

 

Yet we all, in every country, let our CBs set interest rates (short term at least).

 

Having said that, I don't see a problem with raising US rates. Do you really believe ZERO is appropriate as a floor for setting risk premia and capital investment criteria? You actually have NEGATIVE real rates, and to me thats plain stupid.

 

The important question no-one is asking is "HOW should rates be set in the economy?", not "how much?".

Tue, 01/20/2015 - 15:12 | 5684879 Bennie Noakes
Bennie Noakes's picture

Baffle them with bullshit. Or should that be "Bullardshit"?

Tue, 01/20/2015 - 17:25 | 5685474 daveO
daveO's picture

Translation is;

Banks have been successfully bailed out with substantial reserves (free money). Now is the time to raise their profits via interest rate normalization. Just think what they will earn if the the FED pays them more on all those reserves (currently .25%), too.   

Tue, 01/20/2015 - 15:00 | 5684831 smlbizman
smlbizman's picture

firefox... adblock

Tue, 01/20/2015 - 14:59 | 5684814 bluskyes
bluskyes's picture

Adblock Edge for Firefox

Tue, 01/20/2015 - 15:02 | 5684836 Romney Wordsworth
Romney Wordsworth's picture

works like a charm. Ghostery for dessert

Tue, 01/20/2015 - 16:03 | 5685129 Greenspazm
Greenspazm's picture

This may not work on some mobile phones and tablets especially when they are being used on mobile data rather than wifi.
Many adblockers on mobile devices just route you through a proxy, thus giving the proxy provider a complete record of your internet connections.

Tue, 01/20/2015 - 15:44 | 5685043 popeye
popeye's picture

Bluhell Firewall add-on for Firefox.

Used to wonder why users kept complaining about pop-up adds here.

Tue, 01/20/2015 - 17:10 | 5685407 graymnzrc
graymnzrc's picture

Check out Comodo Dragon. it seems to play well with ZH.

Tue, 01/20/2015 - 14:52 | 5684771 1stepcloser
1stepcloser's picture

so no liesman ball licking 

Tue, 01/20/2015 - 16:14 | 5685183 Stoploss
Stoploss's picture

http://research.stlouisfed.org/fred2/series/GFDEGDQ188S

Bulltard!!!

Hiow the fuck you gonna service this here debt???

Tue, 01/20/2015 - 17:31 | 5685489 daveO
daveO's picture

That's easy. Another budget showdown, a la 2011, where BHO threatens to cut off Grandma's pension. Then, Boehner goes on a crying jag. All followed by massive tax increases. Maybe, some 50 yr bonds thrown in to distract everybody. 

Tue, 01/20/2015 - 14:46 | 5684745 EscapeKey
EscapeKey's picture

Nah, he's just a PR manager.

Tue, 01/20/2015 - 14:52 | 5684747 nope-1004
nope-1004's picture

LIAR

Bad acting and I love the good cop bad cop routine.  "The ECB wha wha...."  It's a concerted global effort among CB's to manipulate the entire financial landscape, so stop lying Bullard you asshat.  Raise rates already you lying POS.  Stop embarrassing yourself - makes you look like the incompetent fool you are.

Tue, 01/20/2015 - 15:13 | 5684884 Alea Iactaest
Alea Iactaest's picture

 

So a couple of questions:

1. Is lower S&P earnings guidance a sign of strong growth?

2. Has the NAR blessed a rate increase? A rate hike may, possibly, put pressure on the housing market.

3. Who will get the blame when the US (inevitably) goes into recession after a couple of 25bp raises?

As an aside, I really like using consumer sentiment data instead of actual retail purchasing data. Let's ignore the disasterous retail results over the just-completed holiday season and keep focusing on future green shoots. Forward looking, and all that.

Tue, 01/20/2015 - 16:07 | 5685158 gatorengineer
gatorengineer's picture

goes into a recession, hahahahahahahhaha..... This is a full blown depression.....  Raise it a percent in total, and you will have Mad Max.....

Tue, 01/20/2015 - 18:46 | 5685752 Mentaliusanything
Mentaliusanything's picture

That's got to be Satire by Bullard,

Commodities off 40% but Gold in anything other than USD on a rip.

Oil crashed to below $50 a barrel leaving an itchy spot on the head

endless money printing to the stage where a bag of leaves is worth more than a bag of Yen

ZIRP to NIRP in a burp

any fucking hard asset overbid to the Moon (Alice)

Housing Bubble unaffordable on three incomes despite the rates. 

The Horses and Sheep being dragged to the water but won't drink the Kool aid contaminated swill

Auto loans to 84 month terms and nothing to pay till 2016 

Bullard.... I got a Tip for you

Green shoots are a figment of your wild Central banker imagination Old Son

You and your Banker buddies Blew the Bubble, Painted yourself into a corner, Made money worthless so even the workers are poor, drained the wealth of the only people who can save your ass.... the SAVERS. Piled Debt upon Debt upon Debt and Monetorized its repayment.

Now you realise, too Late and you pray for Normality, the way it was in the good old days Prior to Nixon when SOUND MONEY kept you liquid and your spending sane. You pray for the days when Housing was NOT and investment. You talk of "Trickle down" but the smell of the Urine is now all pervasive, even in the Central Bankers fine Suit.

Go on I dare you Raise rates and reap the whirlwind you created

Dumbass!!

Tue, 01/20/2015 - 14:48 | 5684755 Magnix
Magnix's picture

Today is Tuesday!

Tue, 01/20/2015 - 15:41 | 5685023 HyeM
HyeM's picture

i agree with you 1000%, but watch this worthless shit-bag get a super high paying job as soon as he leave the fed (and stops fucking with the US Middle class). meanwhile, regular folks (like you and me) end up with the short end of the stick; paying for his greedy plans; while making a fraction of what this garbage will make as soon as he leaves the fed.

Tue, 01/20/2015 - 14:44 | 5684727 Bastiat
Bastiat's picture

Wake me up when these assholes stop talking and do something.

Tue, 01/20/2015 - 15:59 | 5685099 Bay of Pigs
Bay of Pigs's picture

Yeah, where the fuck is that FED HAWK Dick Fisher?

Tue, 01/20/2015 - 14:46 | 5684735 El Vaquero
El Vaquero's picture

Raise the rates.  Do it you cocksuckers.  I triple dog dare you!

Tue, 01/20/2015 - 14:48 | 5684756 Callz d Ballz
Callz d Ballz's picture

no earasies!

Tue, 01/20/2015 - 14:52 | 5684774 JoeySandwiches
JoeySandwiches's picture

Maybe these fed asshole just realized the game is over and are trying to get out of dodge, and as far away from the guillotines as they can.

Tue, 01/20/2015 - 14:54 | 5684794 El Vaquero
El Vaquero's picture

It's also possible that raising rates with somewhere around $2.5 trillion in excess bank reserves parked at the fed, such a move would be meaningless until those excess reserves were gone, i.e. the Fed has lost control.  Or it could whip the money velocity into overdrive as those excess reserves come flooding out.  Finance has been pushed to the point of instability, and well past the point of behaving like one would expect it to.

Tue, 01/20/2015 - 15:10 | 5684874 Wait What
Wait What's picture

that would help explain the behavior of PMs over the past few weeks

Tue, 01/20/2015 - 18:10 | 5685510 daveO
daveO's picture

.

Tue, 01/20/2015 - 17:47 | 5685545 daveO
daveO's picture

Banks are collecting .25% from the FED on these. $6.25B per year. If they collected 5% per year, they could be making $125B per year. At the very least, they have to raise deposit rates to compete with/head off gold buying. 

Tue, 01/20/2015 - 15:01 | 5684780 Romney Wordsworth
Romney Wordsworth's picture

Only reason it hasn't happened already is because Goldman, [or Larry Silverstein or some Stanley Fischer anointed designee], hasn't levered up short yet.

 

I guess CRIMENIBUS is still waiting 4 the ink to dry. Either that or they're waiting for a fucking blood moon or something, [you know, so they can 'MANIPULATE' prophecy & shit].

 

 

Tue, 01/20/2015 - 14:47 | 5684740 Kaiser Sousa
Kaiser Sousa's picture

"how can you tell when a MoneyChanger is lying...?

 

 

DEATH TO THE MONEYCHANGERS.

Tue, 01/20/2015 - 14:48 | 5684749 El Vaquero
El Vaquero's picture

You check his pulse.  If he's got one, he's lying. 

Tue, 01/20/2015 - 14:49 | 5684764 GoldenGeezer
GoldenGeezer's picture

May they all breakout in assholes and shit themselves to death.

Tue, 01/20/2015 - 15:59 | 5685101 quasimodo
quasimodo's picture

Actually, if he doesn't have one he is lying.......down that is. Get it?

 

Get it?

 

(que rotten fruits thrown at bad joke teller on stage)

 

Tue, 01/20/2015 - 14:46 | 5684741 NoWayJose
NoWayJose's picture

This is Bull-ard Sh*t!

Tue, 01/20/2015 - 14:51 | 5684758 MrPalladium
MrPalladium's picture

So it takes a "sit down" with Hilsenrath to get this Bullard guy back on the page.

My, that is encouraging!!!

So tell me! Who actually runs this country??!!

Tue, 01/20/2015 - 14:57 | 5684768 ebworthen
ebworthen's picture

Good.  Do a 1% hike. 

Surely this booming recovery can handle a 1% normalization of rates.

(FYI - the average FED funds rate since 1955 is 5.11%, currently 0.09%).

http://www.federalreserve.gov/releases/H15/data.htm

Tue, 01/20/2015 - 14:50 | 5684769 Bill of Rights
Bill of Rights's picture

This is what Ill be doing during the SOTU address...

 

http://genevac.com/Assets/Envi_Paintdry.gif

Tue, 01/20/2015 - 14:52 | 5684772 XRAYD
XRAYD's picture

None of these Fed guys could run a McDonald's franchise successfully!  But they sure think they can run the US economy  ... to help their pals (and future employers). They all "luvin' it"!

 

Tue, 01/20/2015 - 14:50 | 5684773 Yen Cross
Yen Cross's picture

     Can someone remind me how these doves become "voting members" of the Fed?

  Paging James R. Claper?

Tue, 01/20/2015 - 14:52 | 5684778 miker
miker's picture

Oh they'll squeak in a 25 bp rate hike in March just to say they had good intentions.  Before the shit hits the fan and they have to revert back to QE.

Tue, 01/20/2015 - 14:54 | 5684779 Yen Cross
Yen Cross's picture

dup/

Tue, 01/20/2015 - 14:53 | 5684787 Billy Shears
Billy Shears's picture

What's the frequency Kenneth?

Tue, 01/20/2015 - 14:56 | 5684797 Greater Fool
Greater Fool's picture

Must restore "normal" IR levels quickly so the Fed has something to do when the onging economic crisis blunt gets passed to the US-of-A.

Tue, 01/20/2015 - 14:57 | 5684809 q99x2
q99x2's picture

I agree the drop in gasoline prices is like giving lots of money to the poor and although they don't have much to spend colletively they will spur some spending. Some stores will do a little better. Maybe I'll take an extra vacation this year.

Tue, 01/20/2015 - 14:58 | 5684817 WTFUD
WTFUD's picture

Bull(SHIT)ard

Tue, 01/20/2015 - 15:00 | 5684819 maneco
maneco's picture

Bullard is irrelevant as he is a non-voting member in 2015.

Tue, 01/20/2015 - 15:00 | 5684824 SheepDog-One
SheepDog-One's picture

LOL, these clowns aren't sure how to save their sorry hides at this point!

Tue, 01/20/2015 - 15:03 | 5684840 Thisisbullishright
Thisisbullishright's picture

The entire god damn "market" is now pretty much controlled by "jawboning" and bullshit!

Tue, 01/20/2015 - 15:02 | 5684841 Amish Hacker
Amish Hacker's picture

"Normalizing economic policy" has such a sensible ring to it, like "stimulating the economy," but it's really just a fantasy about returning to our Walt Disney past. Not going to happen. The new normal is central bank control of all markets, crony capitalism, dishonest statistics, corrupt politicians, the impoverishment of the middle class, and 100 million uncounted unemployed. Interest rates cannot be raised with the current levels of debt. There is simply no going back to those happy days when you could save some of your income for retirement and live off 6% bonds and CDs.

Tue, 01/20/2015 - 18:52 | 5685768 NihilistZero
NihilistZero's picture

There is simply no going back to those happy days when you could save some of your income for retirement and live off 6% bonds and CDs.

True but if the "50 basis points or 75 basis points" is in play by summer Housing Bust 2.0 will get interesting.

Saving for retirement in fiat terms is for suckers anyway.  I'm more concerned with the asset bubble being pricked so I can move into RE and other hard assets.  I'd rather retire with a duplex I own outright for cashflow than a CD subject (more so than the property) to the inflationary whims of the FED.  Having a confortable retirement completely devoid of risk (as the CD, Social Security, etc allow) is anathema to capitalisim anyway.  IMHO.

Tue, 01/20/2015 - 15:03 | 5684843 Bell's 2 hearted
Bell's 2 hearted's picture

"So there are a lot of good things going on in the U.S. economy, plus we’ve got these tailwinds from the oil situation and from the longer-term interest rate situation. I think all of those are very bullish for the U.S."

Wow ... just wow

 

uh, jim ... just don't read any Q4 and Q1 earnings report ... so you can remain in your delusions

Tue, 01/20/2015 - 15:08 | 5684852 homonohumanus
homonohumanus's picture

It is bullish.

The middle east falls more and more into chaos, Russia still holds but struggles, China fails to take side.

US/UK/Israel is winning. Imo US is to 'betray' EU or some EU countries to 'balance things out' but that is it.

 

Now wealth distribution is another matter.

Tue, 01/20/2015 - 15:09 | 5684873 Bell's 2 hearted
Bell's 2 hearted's picture

hardly

 

capex in the energy sector about the only true bright spot in the "recovery" ... that is all going away

 

USD strength will put a major squeeze on S&P firms ... both in exports and fx treatment of overseas earnings

 

Hello, LAYOFFS

Tue, 01/20/2015 - 15:07 | 5684846 MonetaryApostate
MonetaryApostate's picture

YOU CANNOT TAPER A PONZI SCHEME!!! - Max Keiser

 

That means they must print money into oblivion or the whole shebang goes down with the ponzi scheme!!

And everyone knows that a credit based economy doesn't work if nobody is spending!

Tue, 01/20/2015 - 15:06 | 5684858 Wait What
Wait What's picture

Fuck you, Bulltard!

Tue, 01/20/2015 - 15:06 | 5684859 Bell's 2 hearted
Bell's 2 hearted's picture

King Dollar going "godzilla thru tokyo" ... again

 

DXY > 93

 

almost +700 pips since FOMC worried about dollar strength back in the fall (before deciding that usd strength no big worry)

Tue, 01/20/2015 - 15:13 | 5684880 walküre
walküre's picture

I'm reading several "serious" German news sites to try and understand how this QE is supposed to work and what the benefits could be.

Not ONE news site is able to deliver a clear and precise argument FOR the ECB's potential path of QE, not ONE!

Furthermore, it makes absolutely NO SENSE when the ECB announces QE but says the liabilities for the sovereign debt remain with each sovereign nation. NEITHER GREECE, ITALY, SPAIN OR PORTUGAL HAVE FUNDS TO BUY THEIR OWN DEBT and what exactly would the role of the ECB be here in this scenario???

Then it is suggested that QE would allow banks to buy stocks which in turn could potentially allow corporations to raise funds as long as they can demonstrate that the new liqudity would be profitable.

The LEFT does not know what the RIGHT is doing.

Europe is being completely BAMBOOZELED by the Italian shyster and ex Goldmanite Draghi.

WHY THE FUCK IS NOBODY PUTTING AN END TO THIS BULLSHIT!!!!?????

Tue, 01/20/2015 - 15:19 | 5684922 Clowns on Acid
Clowns on Acid's picture

walkure - were you operating under the assumption that they WANTED you to understand it? Oh my goodnes son... shoulda asked me. I could have told you that the desparation of these feckin lyin' and thievin' feckin clowns is so deep and thick .... that they are speaking in tongues.

But don't worry , just 'cause you (or anyone else) doesn't understand, that doesn;t mean that the ECB / Drahi is not looking out for your best interest. Oh yessir... the thinking how best to advance the people's interest is what keeps Draghi up at night. 

Tue, 01/20/2015 - 15:26 | 5684957 walküre
walküre's picture

I know what you're getting at but you're talking to a German. We don't operate this way. If something doesn't make sense than we typically stop doing it. There's no point to this program, there's no point to the ECB. It becomes more and more obvious and even Merkel is having a tough time "selling" this turd to us Germans.

Just waiting for a guy like Josef Strauss to bang his fist on the table and say, "Enough is enough!"

Tue, 01/20/2015 - 15:31 | 5684987 lesterbegood
lesterbegood's picture

Perhaps that guy is you?

Tue, 01/20/2015 - 15:33 | 5684995 Arius
Arius's picture

talking to a German ... hmmm

remind me again for how long have you been around?  the guys you dealing with have been around quite a bit longer ... yeah i know all the propaganda about hard work and all BS ... skip it ...

Tue, 01/20/2015 - 16:13 | 5685172 Clowns on Acid
Clowns on Acid's picture

Understood .. similarly why in the US they are talking interest rate "hike"....   .25% ... just so people do not shout "Enough is enough" ! You see if they ca convince people that a recovery is on its way, they will buy more time.

But you are right "Enough is enough" ! Lets all bang the desk and take these sociopaths down.

Tue, 01/20/2015 - 16:15 | 5685181 gatorengineer
gatorengineer's picture

What is there not to understand..... Print money to keep the peripheral countries afloat.  Let the German taxpayers ulitmately take the risk, that is what is actually happening

What is nominally happening is that the EU is going to loan money to each Central bank, to buy its own bonds, The ECB will make each central bank triple swear they will pay it back.  Whats not to understand.  Its that clear and that obvious.  I am sure a sub 1% spanish 10 year will do wonders for spain right?

Tue, 01/20/2015 - 20:50 | 5686186 walküre
walküre's picture

You had me at "print money"

In US terms this would mean the FED prints money to give loans to the Bank of Texas (if that existed) and the Bank of Texas could buy the bonds of the State of Texas.

Why not throw money straight from helicopters and let the chips literally fall where they may? Why does Joe Blow have to work so fucking hard for his money that is becoming worth less and less and the bankers get juiced with fresh liquidity from thin air as they please?

Surely, if I can ask these questions and can figure out just how absurd this whole money printing QE business really is, many Europeans can as well.

The Aristocrats tried this before and it ended with Guillotine time.

Tue, 01/20/2015 - 21:37 | 5686388 mkkby
mkkby's picture

Who cares if you are a german.  You don't understand that the banks rule the world today.  Merkel will cave to what they want, which ultimately will be euro printing.  If not her, the next politician will be paid off. 

Get ready to bend over because at some point the weak nation soverign debt will be bailed out, and germany will be forced to pay for most of it.

Tue, 01/20/2015 - 15:52 | 5684985 Bennie Noakes
Bennie Noakes's picture

Probably the ECB will make loans to the national CB's allowing them to buy their own debt.

So any country wanting to leave the euro would have to repay the loans from the ECB.

"One ring to rule them all."

Tue, 01/20/2015 - 16:16 | 5685185 gatorengineer
gatorengineer's picture

And when, not if they cant?

Tue, 01/20/2015 - 16:17 | 5685190 walküre
walküre's picture

How does the ECB make loans? Therein lies he problem. ECB comes out declaring a 2 trillion Euro QE program with money from where and what? Sure, we all know its from thin air but once that has been declared, they might as well fast forward to the jubilee, reform and reset.

Tue, 01/20/2015 - 18:23 | 5685674 Bennie Noakes
Bennie Noakes's picture

The ECB can create money the same way the Fed or the BoJ does: by typing some numbers into a keyboard. But if they loan it to the national CB's, how can they pull it out of the system if that ever becomes necessary?

The Fed bought a bunch of bonds. If it ever needs to pull money out of the system it can simply sell the bonds. But will Euro-QE include an exit plan? I suppose they could raise the interest rate on the loans made to the CBs. But what if the bonds go down in value? Then the CBs could not recoup all the money they borrowed by selling the debt. So they might have problems repaying the ECB.

I'm afraid that the ECB's QE plan will be complicated and full of potential pitfalls.

Tue, 01/20/2015 - 20:44 | 5686163 walküre
walküre's picture

ECB is neither the FED nor BOJ

ECB itself is not even sure about the mandate it has.

Complicated? Yes it is. Like a thief trying to explain why he stole from orphans, widows and the poor.

If ECB had the same bullets that FED had, it would have fired those long ago.

ECB is at the end of their rope.

 

Tue, 01/20/2015 - 15:14 | 5684896 Clowns on Acid
Clowns on Acid's picture

As I recently posted in another article - these feckin Clowns are setting investors up for a real acid trip.

They are going to raise interest rates .25 % and verbalize more .25% step ups ... y'know..."data dependent"... these outright, lyin' and feckin thievin' pyschotic sociopaths !

They know that they cannot fool the sheeple with NIRP (negative interest rates) much longer. There will be blood (The Swiss CB showed that). So.... these pyschotic malcontent mutharuckers are going to raise interest rates to hide the fact that they will continue with QE. They will announce how well the economy is doing, therefore "don't worry" about rising interest rates... economy will push Stawks higher ... yields may rise a bit but will stay in lie because of Fed purchases..

The Fed and their cabal of Cheesepopes are now trying to feed you acid. Raise interest rates (we are back to "normal" right ?) while continuing QE money printing... very quietly. It's a bedtime Cinderella story.

Borrow more money, consume, watch more Lame Stream Media, pay your higher taxes, pretend that their is no black violence, pretend muslims are not a vioent religion, ...keep it going and don't look down. It's Putin's Russia's fault. Seth Rogan is so smart and funny.    

Tue, 01/20/2015 - 16:05 | 5685139 JRobby
JRobby's picture

I found acid to be an enlightening experience.

What these fools spew used to be obfuscation but now is outright lying.

Tue, 01/20/2015 - 15:14 | 5684898 pragmatic hobo
pragmatic hobo's picture

fuck-tard

Tue, 01/20/2015 - 15:15 | 5684899 madcows
madcows's picture

this guy can't get out of his own way.

Tue, 01/20/2015 - 15:16 | 5684905 TeethVillage88s
TeethVillage88s's picture

Found the next bubble besides cheap credit, money for Politicians... next bubble is Bank owned life insurance on who ever they want. You die, they get paid.

- DATA FIRMS SNOOPING ON OBAMACARE USERS...
- Collecting details on age, income, ZIP code, whether you smoke or pregnant...

Tue, 01/20/2015 - 15:23 | 5684940 JRobby
JRobby's picture

How about a smoking, drinking, heroin & crack addicted, possibly pregnant, unemployed person in 47265?

Tue, 01/20/2015 - 15:18 | 5684909 JRobby
JRobby's picture

They want some asset inflation and they are being up front about it.

This guy is an ass clown puppet like the rest of the FED people that talk to the press, "congress", etc. etc.

Tue, 01/20/2015 - 15:24 | 5684948 yogibear
yogibear's picture

He's been drinking some of that St Louis moonshine.

We must be getting near the end game if this much BS/disinformation is going on.

Tue, 01/20/2015 - 15:21 | 5684927 yogibear
yogibear's picture

Wow, the Federal Reserve is insane.

Does Bulltard think he is receiving messages from John Maynard Keynes?  

First he talks about QE4, then he says rate hike.

You have other Fed officials telling other economist that all this QE was uncharted territory and they don't know what's going to result.

How do you like having a Central Bank running your economy that is full of crap and crazy?

 

Tue, 01/20/2015 - 15:20 | 5684928 nosoeawe
nosoeawe's picture

if Hilsenrath's pie hole is open, he's either sucking schlong or lying

when this pile of shit checks out, i'm gonna have one hell of a rager to celebrate the blessed and heaven sent occassion

pissing and shitting on graves however is reserved for the special bowl cut, carp faced, white haired garden gnome yellen

 

 

Tue, 01/20/2015 - 15:23 | 5684947 JRobby
JRobby's picture

He sucks schlong (cock) and lies about it

Tue, 01/20/2015 - 15:27 | 5684960 Frank N. Beans
Frank N. Beans's picture

let's see what the half-life of bullard's comments are on today's market.  I know it's getting shorter and shorter. 

Tue, 01/20/2015 - 16:17 | 5685191 gatorengineer
gatorengineer's picture

Well that daq is eating it up.... so we must be in full blown bizzaro world.

Tue, 01/20/2015 - 15:26 | 5684963 yogibear
yogibear's picture

Bulltard has become the joker. No sure is any of the rest of the Fed is any better.

Reason enough to lose faith in the US dollar.

These people are turning the US financial system into a banana republic.

Tue, 01/20/2015 - 15:27 | 5684968 Mike Honcho
Mike Honcho's picture

"At the beginning of 2014 people were expecting the euro area to have a relatively good year. It was supposed to be the year of recovery and growth."

Who is UMich's euro counterpart?

Tue, 01/20/2015 - 16:04 | 5685088 JRobby
JRobby's picture

The circumference of Jean-Claude Juncker's asshole. About the same circumference as this thing:

King Dong Dildo - Adam & Eve's Biggest Ever!

 

Means zero to negative growth.

 

Tue, 01/20/2015 - 15:30 | 5684980 Banker Buster
Banker Buster's picture

Would not doubt it if they raised rates right next to the same time the ECB starts their QE.  

Just like Japan stepped up added more QE when the fed "officially" stopped QE.

 

By the way, I saw a few minutes of CNBC for the first time in a long time this morning.  That show looks like I'm watching a fuking NFL game with the graphics to rotate out charts and the backgrounds.  Definitely designed to impress the sheep mind.  And did they move locations from the arm pit to down on the street's of Manhattan?

Tue, 01/20/2015 - 15:41 | 5685028 devo
devo's picture

This asshole changes his Brontosaurus brain every other day.

Tue, 01/20/2015 - 15:49 | 5685055 khakuda
khakuda's picture

The daily value of the stock market is his only input.  Easy work if you can get it.

Tue, 01/20/2015 - 15:54 | 5685077 rum_runner
rum_runner's picture

Oh, I double dare you to hike interest rates back to even 3%.  Your "contellation of data" will supernova and then go dark.

Tue, 01/20/2015 - 16:00 | 5685110 JRobby
JRobby's picture

3% can not be seen again until after the currency crisis / write down / revaluation is completed.

Tue, 01/20/2015 - 16:14 | 5685174 mendigo
mendigo's picture

The implication seems to be that rising funds rate a negative for treasuries and positive for stocks? Not knowing much about it I would think rising rate is positive for cash and negative other assets. Please explain.

Tue, 01/20/2015 - 16:14 | 5685179 basho
basho's picture

just do it pinhead.

do the walk.

Tue, 01/20/2015 - 16:29 | 5685234 nakki
nakki's picture

This guy is so full of shit in two month he'll be talking about QE 4 and that raising rates would be insane. Yes by all means let's raise rates back to 5% on the short end and 7-8% on the long end. No problem for the economy or US debt. Like I've said before if we get FED funds rates to 1% that will be the top. 

Tue, 01/20/2015 - 16:30 | 5685242 QQQBall
QQQBall's picture

How can consumer sentiment be at an 11-year high. 2006-2007 was going pretty good with momo and stawk market?

Tue, 01/20/2015 - 16:54 | 5685351 graveheart
graveheart's picture

You know, one of these days they'll have us so disenchanted they'll throw the massive rate increase switch overnight and crash the whole thing. (once they are properly positioned of course, whatever that is)

Tue, 01/20/2015 - 18:30 | 5685699 Bastiat
Bastiat's picture

Perhaps a whiff of the stink of desperation: make the USD look credible as the world is moving away from it.

Tue, 01/20/2015 - 19:15 | 5685844 aldousd
aldousd's picture

The way I am taking it, by reading this article, is the ZH stance is "There is a Bad Thing Happening because these Idiots want to Raise Rates, disaster coming!"  Which is basically the opposite of what we have been reading for years on ZH about "There is a Bad Thing Happening because these Idiots want to persue an expansionist ZIRP 4Eva, disaster coming!"  So which is it?

Tue, 01/20/2015 - 19:26 | 5685853 tok1
tok1's picture

they need higher rates, negative rates will lead to bankrupcies in so many sectors. 1) Pension funds ect..

2)  for banks  negative bond rates will mean bonds  they need to hold for colateral, will soon show a loss, same for brokers that hold client funds ect.

3) the low rates as with oil dont lead to increased spending it leads to increased production (no cost of capital) which leads to over supply and deflation, ie the low rates and the impact on supply are the deflating factor and oil drop just woke every one up.

Tue, 01/20/2015 - 19:52 | 5685989 magne13
magne13's picture

When is this deuche bag going to learn, that you can only trick people into selling bonds so often, the losers at the FED are never going to tighten and the only thing they can do is try to trick people into selling bonds, because everything else is worthless. Once again the FED and every other central bank is fucked and the only way out now is to print. Good luck ECB your fate is sealed. No stopping gold now it will be up $100 on thursday. Someone has been a constant buyer of 30yr paper for a month...

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