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The World Has Gone Mad - Fed's Lacker Edition
During a Q&A this evening, Richmond Fed's Jeffrey Lacker unleashed a stream of what can only be described as total idiocy:
- *LACKER: INDICATORS POINT TO NEED TO RAISE RATES THIS YEAR (US macro data is the worst since Lehman?)
- *LACKER: I'M UNDETERRED BY RECENT WEAKNESS IN DATA, "CAN'T GO ON FOREVER" (Hope is a strategy?)
- *LACKER: DON'T EXPECT UNUSUAL MARKET VOLATILITY AROUND RATE RISE (because the Taper Tantrum went well?)
These are the people that the world trusts to centrally plan the world? The people that are there to 'save' investors at the merest downtick in stocks? They seriously have no clue whatsoever!!
You decide...
*LACKER: INDICATORS POINT TO NEED TO RAISE RATES THIS YEAR (US macro data is the worst since Lehman?)
*LACKER: I'M UNDETERRED BY RECENT WEAKNESS IN DATA, "CAN'T GO ON FOREVER" (Hope is a strategy?)..
Because last time all it took to stop the bleeding was $4 trillion in Fed balance sheet expansion.
*LACKER: DON'T EXPECT UNUSUAL MARKET VOLATILITY AROUND RATE RISE (because the Taper Tantrum went well?)
And everything looks so calm now across the asset-classes...
So part from all that - We are sure Mr.Lacker knows what he is doing...
* * *
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you can't fix stupid, not even with duct tape
They should first do that "unwind" thing they were talking about half a decade or so ago since everything is AOK now...
They ARE unwinding. They've begun a 30 year process of holding all those securities to maturity. Coupled with buying all the replacement securities through Citadel and other central banks.
Never go full-tard. Ever.
if a rampaging mob of plutocidal plebs dont geddem first
Why haven't we burned down the Eccles Building yet?
I imagine for the same reason we haven't burnt out Chicago's AIPAC offices yet.
I tried already. I swung by one night at three in the morning, whipped out my matches and try as I might that bloody sandstone or granite or whatever the outside of the building is made of, just wouldn't take.
Mind you, I did leave a little charring when the flame of my match touched the wall. That'll show'em I thought smuggly.
Just lean up against the building a take a piss on it. Have the same effect and you get to lighten a load....
Not enough nazi kooks in any single location?
If it's too loose, duct tape it... If it's stuck, WD-40 it...
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com
Thirst Mutilators comment is appropriate here..
"If it's too loose, duct tape it... If it's stuck, WD-40 it..."
The Fed is comprised of many different people with many different opinons on how this is all supposed to work. My guess is that they all want to get back to "normal" with respect to interest rates; however, those that aren't keen on QE probably feel more urgent about the move back.
That said, Fed Chair Yellen likely will make some type of move in June (earlier is better) because the longer they wait, the less likely the economy will oblige.
And all that said, it doesn't really matter in the near term. If they do raise rates, it will be minimal and it won't have any impact one way or another. That is of course what they are trying to orchestrate. No great stock market crash and then stablize for the next hike.
But the economy is weak and slowing for a variety of causes. So by the end of 2015, we'll be in full blown recession barring some major stimulus.
Your post would be very logical and reasonable were this country not a hebrewtocracy with tens of millions of blind sheeple allowing their freedoms to be curtailed and their wealth siphoned away.
The fed wont raise rates, the rest of the world is going beyond negative , they are practically throwing money in the streets (just in the already rich neighborhoods lol) , the corrupt and entitled are practically getting paid to borrow.
So what makes the U.S. special?
Rates will go beyond zero, they will go beyond negative.
Rates will go plaid.
Dammit! I was hoping they would go paisley.
im just waiting for rates to go so negative that i can use the interest to pay the instalments
whats unsustainable about that?
I think they want "normal" more than anything. But keep in mind, 'raising rates' will likely only be a 1/4 % and maybe one more 1/4%. The economy won't support anything more.
But the Fed thinks this wil allow them "off the hook" by the population; that is people will think they were able to normalize after QE. It's all showmanship at this stage to prevent loss of their presitge and possibly the Fed itself.
Hahaha, there will be a third world war before interest rates go up.
A third world war is mandatory now to get the Fed off the hook and get the perpetrators of 9/11 a distraction big enough to take the heat off for another decade or two. That's all they need, a decade or two, then they'll be dead anyway.
The Fed is going to raise rates but it's going to be in order to protect the $.
That may end up being the most correct answer.
Horseshit! ~ [Unless, of course 'horseshit' is the correct answer]...
the fed might raise rates when the right hands hold
the notes. (when they own them all/near all/advantageously)
no/...?
so qe forever and out of thin air
swaps are the monetary fix, sounds like
a plan.
.
is that an empty cup of cool-aide
there on the floor?
.
Secret Space Program - Peter Levenda Full Documentary
https://www.youtube.com/watch?v=U8-AaB7yiBY
.
if this is a tyler post my ass is a banjo.
The world is now completely focused on the central banks . . . not GDP, not debt, not earnings, not employment, not anything linked to fundamentals. Hell, why would we, it doesn't matter. The ball is squarely in their court. Keep feeding us bullshit and anything to drive the stock markets higher, the stock market, the stock market, the stock market . . . nothing else matters, we have clearly lost our way.
.
of course Lacker is right...
but with all those US liberal neocon shit-for-brains drunk on Qe and Zirp
who is going to listen ?
WR;)
.
Let's do it! 10% for a 5 year treasury out of the gate. Let's test this "recovery" within the Depression.
Oh, yeah, I forgot, the Federal government will collapse because it does not have enough revenue to cover all of the interest on its debt at 10%.
Time to get the shitstorm rolling. I have real money and real lead to protect real money so I am ready to go thru the wormhole into the next dimension.
"liberal-NeoCON"? an oxymoron, moron
Louzy Lacker Lacks Luster.
which one is Lacker -- the horse or the retard? I'm guessing the retard.
Insanely Ignorant American Masses
http://www.hermes-press.com/insane_masses.htm
"But by far the worst feature of this 'double ignorance' is that, on the one hand, it stands in the way of its own cure, and on the other, if unchecked, it is constantly aggravating itself. For if we look at things with a distorted view, these things will present themselves to us in a distorted manner too; and thus, instead of reaping from our experiences new impressions which might help us in restoring a healthy spirit within ourselves, we shall only add nourishment to the ulcer within our mind. And on the other side, if we should try to cure our ignorance, we see that for so doing it is required that we look away from ourselves and from our habitual ways of thinking, which seems to us tantamount to a flat repudiation of our very selves and consequently impossible."
Hermann Gauss, Plato's Conception of Philosophy, 1974
do i have this correctly,
rates are near zero when the
authority wants to fuck the creditor
and raised when the authority wants
to transfer the wealth to its ally's?
.
So we have Lacker and Blinder spouting their nonsense....where is Dumber?
He's a morally bankrup coward. But he's a morally bankrupt coward with a jet.
The only remaining question is "what is the penalty these people pay for their criminal activity against the Constitution" ? Everything else is subjective.
They had better draft a law prohibiting selling stocks, bonds, real estate, etc. before hiking rates.
Whispering sweet nothings will not be enough for much longer.
Tick tock, tick tock
I'd expect all mortgage and other debt contracts to all become variable rate by default.
"Yes, you get -.005% interest on your initial mortgage, which means WE pay you."
For a couple of months, then up it goes.
Why does anyone not talk about the failure of Neo-Keynesianism?
Does that mean that it does work?
World is headed to the point where, on a long enough timeline, all Zero Hedge article links will contain a picture of Simple Jack.