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Kocherlakota Goes Bull(ard) Retard, Says "QE4 Theoretically Warranted"
First it was Jim Bullard in October, after US equity markets had fallen almost 10%, dropping the only word that matters to headline scanning algos, i.e., "QE4" and suggesting that asset purchases will make a comeback if the market drop continues. And now, with stocks fractions-of-a-percent off record highs, Minneapolis Fed president Narayana Kocherlakota spouts this idiocy:
- KOCHERLAKOTA: THERE IS EVEN A THEORETICAL ARGUMENT TO BE MADE FOR MAKING ASSET PURCHASES NOW IF ECONOMY FALTERED
Stocks, rather stunningly, appear to have finally given up responding to this utter farce... and are falling.
- Kocherlakota Says Debate About Raising Rates Is Drag on Economy (NOTE: not the rate hike itself... but the DEBATE about a rate hike is a "drag")
Stocks are not loving it.
But oil is...
Artist's Impression of the new normal...
Narayana Kocherlakota says not to worry about anything pic.twitter.com/B3WexYFg72
— StockCats (@StockCats) April 7, 2015
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Somewhere we suspect Rick Santelli just had an aneurism!
UPDATE: hahahahahaha!
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Why not? It's only theoretical money, after all...
The balance sheet will be balanced, even if we have to print off more monopoly money.
cant someone just do them all in ffs?
QEternity is coming...they're just figuring out what the script is going to be and preemptively making statements like this to get people ready for the inevitable.
They will have to QE even bigger next time...probably over a Trillion or close to 2 Trillion...it will be the biggest and the worst ever, so they're just getting everyone prepped and in the mindset that it's going to have to be done...
And of course it's to "save the markets" or to "help the middle-class and create jobs, blah blah blah"....when it's all just to save the fucking scumbag banksters and not to mention their treasonous political dogs
Where's the air-sick bag so I can throw up.
what are they gonna buy with QE4? Heroin and hookers?
My mistake QE1,2,3 have already been spent on that
You can never have enough heroin and hookers.
You can never have enough GREED!
what if they printed more worthless dollars and bought gold? Or better still, what if they just counterfeited dollars (difference is they do not disclose what they are printing) and load up on gold-thats what China has down.
http://research.stlouisfed.org/fred2/series/LNU01327662
Can't wait till next month!!!
Everything is Awsome!!!
Indeed, so much for the "job creators"...
Same as it ever was...
QE4 preview http://research.stlouisfed.org/fred2/graph/?g=16OR
Where are the anti-cheesepopers, with their inncessant whining about "The Tribe" at this juncture? Kocherlakota part of the wrong tribe? Is he off the Res?
I say dowit. Less talk more action. Dowit.
i recall playing pinball machines back rather a few years ago.
if you slammed it hard, you could cheat. but you ran the risk of the machine becoming unresposive (tilting).
Years from now economic text books will show QE and ZIRP from the Federal Reserve to be the biggest financial scams in human history.
QE was engineered to provide the Fed's "primary dealer" banks with free money printed out of thin air ("MBS purchases"). The Fed then has their primary dealers to buy up stocks to keep this stock market going higher and higher no matter what. QE is designed to protect the assets of the wealthy .1% from natural deflation due to the economic depression on main street.
Don't believe me?.. Look at the correlation between the Fed's balance sheet constantly going up and DOW constantly going up over the past 6 years. Google it. They are intertwined.
0% interest rates, (ZIRP) is strait up theft from savers. It's hurting seniors who are going to get wiped out in the coming crash by moving their saving to stocks. The Fed's 0% rate policy also fuels more and more stock buybacks which also artificially inflates the stock market.
Right now we have one gigantic bubble. The stock market is the "mother of all bubbles". We all know bubbles don't last and this is going to end very badly!
not necessarily so. history is written by the victors.
Correct, in most cases, everyone else was eliminated.
So the question is, who will be victorious? The demographics of the earth are what they are.
Like your username. The numbers will win eventually. There is only so much bodging of data and manipulating you can do.
You forgot to mention that QE also keeps the United States' Department of the Debtery solvent!
All part of the plan.
The FED must make a token raising of rates in order to declare success. They will be careful to make the hike too timid to be blamed for the resultant crash.
This is all just shuffling of chairs for the reintroduction of QE.
Fundamentally, the FED has been the Bubble-Blower In Chief since Volker. Since the late 1990's they have been in a corner where their only choices are Inflate or Die. Of course they will inflate.
The rest is just theater.
The Fed is digging their own grave by meddling in free markets. When the US economy implodes it's going to be epic. Worse than the great depression.
At that point, the only way to restore investor confidence will be tax reform and a one world currency called the SDR administered by the IMF. The Fed will be disbanded.
Can they do QE4 and raise rates at the same time? That way they save some face on rates, but still add some juice.
I nvr thought I could hat a pair of lttrs in my lif, but I now hav such a disdain for th lttr that has th "Tab" ky nxt to it on th kyboard and th on that is sandwichd btwn th "W' and 'R' that I can't vn bring myslf to us thm in this commnt.
We're doomed!
Is it remotely possible that markets, knowing the K-Man's dovish stripes, will view this as, even from him, a bit panic-stricken, and will peel back in advance of tomorrow's FOMC stmt?
In other words, if the statement was dovey (as we expect), then why dispatch the K-minotaur (bull's head, Fed governor's body) 24 hrs prior? Ah, but now I'm confusing things with logic ...
The bankers and financiers still have access to all the free money (ZIRP) they want, how will giving them more free money help main street again?
Tick tock motherfuckers...
they will never raise rates, that much is obvious.
qe4 is the only option for them, and no one here should be surprised when it happens.
the ''market'' needs qe
I've got a better idea since everyone is used to hearing about QE4, just skip it and start talking QE5! That should be worth 1,000 DOW point easily. FED should hire me immediately!
Electioneering begins right after the soon-to-be summer "break", and then the engineering begins;
to show how the Dems are leading us to the Emerald City.
Minneapolis Fed president Narayana Kocherlakota spouts this idiocy:
It's not idiotic if you understand that the primary goal for central banks is coordinated devaluation.
Similarly, interest rates will not be meaningfully raised any time in the next year, and the USD will be brought back into line.
More printing is ALWAYS warranted, don't cost anything to print money. It's beautiful.
only way to justify the continued deficits & debt they wanna continue to rack-up is by taking rates negative. if they can be paid to take our debt to $100 trillion, why not?
So they are going to raise rates while prepping for QE4? Anything to keep the goyim flummoxed!
If the 1%, who were gifted a 300-1000% increase in their wealth/investments by the Fed (and taxpayer-everyone bears the burden of the new debt) in order to "save the economy" and "create jobs" will not actully re-invest and create those jobs... then fuck em, it's time for a refund or retribution motherfuckers...
Same as it ever was, tick tock...
It's working. ES up 41 points from the employment news lows and up 17 pts since the release.
Minneapolis Fed president Narayana Kocherlakota
It is his turn to spew the insanity that will become reality. This is all worked out in advance.
The future is a swirling mass of liquidity that ensures profits for the largest traders, the illusion of bank solvency and collateral for the money markets. Yield and inflation rate no longer matter.
Supply and demand of collateral will be "managed"
i'm shocked, this changes my whole outlook /sarcasm
And buy what, Fedtard? Seriously. WTF are you going to buy that you consider to be priced too low now and that will actually help the economy instead of helping only banks? Are the banks holding more bad garbage that needs to be bought? Is that what you are saying? Bank balance sheets are full of toxic garbage again? Do you even understand what QE is? It does nothing for the economy. If you want to help the economy, refinance all the mortgages you bought at the Fed Funds rate, instead of the unjust enrichment of only bailing out half the contract you are currently doing, or STFU! How can you work in finance your whole life and not understand a GD thing about economics?
Right on QV what else? Bonds hovering at negative interest, make that deep negative real interest rates with inflation..... Time to start guessing.....Helicopter drops to student loan recipients? Massive individual tax credits uhhh that would only cover those paying taxes...uh forget that. Free goods lotteries? Cars, Abram Tanks, Free Solar, let your imagination run wild. Free Satellite TV, the list is endless except for most likely Precious Metals.
We are so screwed..... and yet the sheeple sleep on.
The good cop speaks (dove) while the only bad cop (hawk) Fisher has flown the coop.
QE will never stop...until the entire system goes up in flames.
Like we all should know by now its about getting everyone in, having corporations buy back shares and then pulling the rug. That way in ten years all the corporations will be owned by the FED and last two big banks and the families that own them.
Just love how Kocherlakota says even the thought of raising rates is a drag on the economy. WTF dude, come up with a better lie. Even a moron knows he's full of shit. QE is the DRAG on the economy. Repeat after me QE is THE DRAG on the economy.
And it changes NOTHING.
DavidC
No surprise, he never wanted to stop QE3. This guy not only drank the Kool-Aid, he has been making it and passing it around. Good thing he is retiring soon.
He's going to retire alright.
The Fed will hike rates 50 bps in the June FOMC meeting.
The Fed will then announce QE4 at the July FOMC meeting.
You can draw your own conclusions. Stay frosty!
'I don't normally hike rates, but when I do...'
More QE will help with lending... http://research.stlouisfed.org/fred2/graph/?g=16OP
Like I said yesterday. This is the strongest economy ever according to Liesman, the FED, and .gov yet the mere discussion of a 0.25% sometime in the future can destroy it.
Let's check those SGE gold withdrawals at the end of April. The Mandarins better be doubling down on finding ways to buy shit around the globe with that paper stash. Time is running short.
The Fed fixed 'the problem' already and stawks are reramping.
Yepper Consuelo the old families in Taiwan too.....pretty surprising to see Taiwan is also joining the AIIB. One more indication that the U.S. is swirling in all the wrong places with how many of our loyal (cough cough) allies signing up to join. Fair trade settlement is not based on the magic printing press or its digital counterpart.
BTW not to offend but what do you call a Mexican Hooker with no legs!
70yr notes, here we come.
To quote Aaron Harrison: "F*uck that N*gger"
So the price of oil has nothing to do with supply and demand, but whatever QE dollars the Fed is throwing at the market. Oil has jumped almost $10 because of QE4 whispers. Total fucking bullshit.
TIME TO RUSH THE DOORS OF EVERY FEDERAL RESERVE BANK AND DO VERY EVIL THINGS TO EVERYONE INSIDE!!!!!
That is the only way to change this pitiful experiment.
AT this point only a full scale revolution will change things in the US.
Treasury issues debt and Fed buys it and gives interest bank to the treasury. Monetizes and zeros it out.
What a scheme.
QE4 then QE5, QE6, QE7, QE8, Q9........on and on.
QE Nth power