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The Fed Is Out Of Options, "QE Is All It Can Do Here" Art Cashin Predicts

Tyler Durden's picture




 

Weakness in commodities "is not transitory," Art Cashin tells CNBC, if you look at things like copper, "this is really a deflationary push... where things can get a little out of control." The Fed says they must get off zero interest rates because,, as Cashin notes, "they can't do anything else." However, as the venerable floorman who has seen it all explains, "they're in a kind of silly loop where they did QE expecting a reaction... didn't get it.. and then they did QE again because it didn't live up to their expectations... but I think they have no other options, if things get negative on the economy, QE is all they can do."

Which is exactly what we said a month ago...

Even the CNBC anchors realize the folly of Fed ways now, noting "but aren't they just pushing on a string?" Indeed they are and as Scotiabank's Guy Haselmann noted earlier, it will cost us...

Fed policy today and over the past several years may prove to be counter-productive in the long-run.

 

Sustainable growth is best served by an interest rate where capital is deployed efficiently.  The long-run consequences of policy during the past few years could easily mean lower long-run potential growth and inflation.  Today’s consumption and market speculation was paid for with huge amounts of accumulated debt. 

 

Tomorrow’s revenues will have to be steered toward servicing that debt.  Future revenue will also have to replenish the deficient levels of R&D and infrastructure investment of the past few years.

Cashin explains The Fed's bind...

 

h/t Lesley M

 

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Tue, 08/11/2015 - 17:32 | 6415724 johngaltfla
johngaltfla's picture

Hilarious! Yellen has to increase rates in September or she looks like she's LaGarde's bitch! I hope she jacks it 0.25 in Sept, 0.25 in December and every 3xBearish owner gets to buy all the whores they want for Christmas and New Years!

Tue, 08/11/2015 - 17:34 | 6415733 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

For the record all these satanic clowns are stealing Peter Schiffs theroy....

Tue, 08/11/2015 - 17:37 | 6415747 nope-1004
nope-1004's picture

"The FED has multiple tools at its disposal ready to employ should market conditions dictate their use."

- Bernocchio, some 6 years ago.

Perpetual lying POS.

 

Tue, 08/11/2015 - 17:38 | 6415758 EscapeKey
EscapeKey's picture

he also said they wouldn't monetize the deficit, until a press release on the fed website said that they would do that exactly "for a limited time".

 

Tue, 08/11/2015 - 17:42 | 6415774 OrangeJews
OrangeJews's picture

To war we go!

 

Those damn Chineese and their fake economy!  Huh?  OHHHH!

Tue, 08/11/2015 - 17:45 | 6415783 CheapBastard
CheapBastard's picture

Well, at least the Barry/Saudi plan to hurt Russia by extremely low oil prices is really starting to hit Putin where it hurts:

 

National Oilwell Varco to close another Texas facility

 

http://www.bizjournals.com/houston/news/2015/08/10/national-oilwell-varc...

 

 

Winning!

Tue, 08/11/2015 - 17:50 | 6415817 knukles
knukles's picture

Janet:  Just charge it!

Tue, 08/11/2015 - 17:52 | 6415820 negative rates
negative rates's picture

ART, how many queens does it take to screw in a lightblub?

Tue, 08/11/2015 - 18:12 | 6415875 ZerOhead
ZerOhead's picture

"The FED has multiple tools at its disposal ready to employ should market conditions dictate their use."

Ben wasn't lying... two of those tools happened to be Janet and Stanley.

End the Fed and stop the currency molesters that own the Fed from ever creating money out of thin air again.

Tue, 08/11/2015 - 18:29 | 6415957 kaiserhoff
kaiserhoff's picture

The Fed is not out of options:

They should admit that Soviet Central Planning has failed, let the markets set interest rates, and beg for mercy at their treason trials..., in that order.

Tue, 08/11/2015 - 19:02 | 6416055 Soul Glow
Soul Glow's picture

The Fed raises, China collapses, US equities collapse, the Fed blames China, cuts rates again to NIRP.

Wed, 08/12/2015 - 01:11 | 6417219 mliu_01
mliu_01's picture

Stupid Americans cant tell the difference between deflation and economy collapse.

For christ sake. People can't afford to buy junks does not mean it's deflation. Deflation means you can afford more junks with your money.

Wed, 08/12/2015 - 04:11 | 6417376 Four chan
Four chan's picture

jewish string pushing spectacle.

Wed, 08/12/2015 - 04:39 | 6417395 Haus-Targaryen
Haus-Targaryen's picture

She is gorgeous! 

Wed, 08/12/2015 - 06:40 | 6417474 Obama LaForge
Obama LaForge's picture

And deflation, which is all the Fed ends up doing in the end with QE.

Tue, 08/11/2015 - 19:02 | 6416058 sun tzu
sun tzu's picture

You left out the part where they place their necks on the guillotine

Tue, 08/11/2015 - 18:10 | 6415895 NoDebt
NoDebt's picture

Always nice to see that Art can still climb out of the bottle long enough to make a CNBC interview.

"All they can do is QE."

Well, given that the Fed is in the business of printing money, it's sort of self-evident that they will print money in the face of any problem.  I mean, their alternative being what, exactly?

If you only have a hammer everything starts to look like a nail.

Tue, 08/11/2015 - 18:26 | 6415939 ZerOhead
ZerOhead's picture

"I mean, their alternative being what, exactly?"


Like not printing at first causing the dollar to soar and markets to crash... then when the screaming starts create a hyperinflationary tsunami of hundreds of trillions so their friends can now buy everything worth owning and pay the debt back with those new worthless $USDs?

Like that alternative? My good friend they have far too much integrity to do that...

Tue, 08/11/2015 - 19:38 | 6416149 knukles
knukles's picture

Ouch!

Tue, 08/11/2015 - 18:28 | 6415956 Bilderberg Member
Bilderberg Member's picture

A fed governor walks in to a bar with a pile of dog manure in his hand, He says to the bartender "Look what I almost stepped in."

Tue, 08/11/2015 - 19:24 | 6415990 remain calm
remain calm's picture

He should of just realized the shoes were toast and just of thrown them away with the shit. Now he has to eat the shit, and that is going to be very difficult to swollow.

Tue, 08/11/2015 - 20:58 | 6416450 Ass Burger
Ass Burger's picture

Should of but didn't of

Tue, 08/11/2015 - 18:29 | 6415959 new game
new game's picture

yup

Tue, 08/11/2015 - 18:56 | 6416037 johngaltfla
johngaltfla's picture

No Doubt, just oh snap on that comment. Fucking hilarious.

Wed, 08/12/2015 - 06:11 | 6417448 negative rates
negative rates's picture

When all you have is a nail, all you NEED, is a hammer. and a brain to know how to use it.

Wed, 08/12/2015 - 09:00 | 6417839 KnightTakesKing
KnightTakesKing's picture

When all you have are nails, all you need is a nail gun.

Tue, 08/11/2015 - 17:53 | 6415827 weburke
weburke's picture

is there a debt god I am missing?

regularly wiping out debt is the future.

create, spend, erase. repeat. of course with a smaller population.

Tue, 08/11/2015 - 18:31 | 6415966 ZerOhead
ZerOhead's picture

Reducing the population must require raising taxes on the survivors or the Gods of Debt will be taking a hit in their standard of living...

Tue, 08/11/2015 - 19:00 | 6416052 JC-BI
JC-BI's picture

HAHAHAHA

Tue, 08/11/2015 - 18:06 | 6415870 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

EVERY DOLLAR PRINTED OUT OF THIN AIR ONLY SPURS .08 CENTS IN ECONOMIC GROWTH. HISTORIAL AVERAGE WAS 5.00 FOR EVERY DOLLAR PRINTED. DEBT SATRUATION IS HERE. QE WON'T WORK. IT'S OVER.

Tue, 08/11/2015 - 18:20 | 6415932 back to basics
back to basics's picture

I'd up vote you if it weren't for the use of caps

Tue, 08/11/2015 - 18:22 | 6415944 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

Sometimes a stat is so strong that it needs caps, normally I don't do that

Tue, 08/11/2015 - 20:56 | 6416440 Row Well Number 41
Row Well Number 41's picture

Try bold next time, it's more effective, and isn't internet for screaming at people.

#41

Wed, 08/12/2015 - 07:38 | 6417571 fockewulf190
fockewulf190's picture

I think the big problem this country has is being CAP correct. I’ve been challenged by so many people and I don’t, frankly, have time for total CAP correctness. And to be honest with you, this country doesn’t have time, either.

; )

Tue, 08/11/2015 - 22:00 | 6416711 daveO
daveO's picture

Plus, it's easier to read. Who makes these rules? Government bureaucrat? Is there a screaming tax? Balance the budget, CHARGE A SCREAMING TAX!

Wed, 08/12/2015 - 09:05 | 6417850 KnightTakesKing
KnightTakesKing's picture

We wouldn't have a debt problem if Congress would tax the Internet with a CAPS LOCK TAX!

Tue, 08/11/2015 - 19:11 | 6416081 greenskeeper carl
greenskeeper carl's picture

i upvoted both of you because you are both right...

Tue, 08/11/2015 - 17:40 | 6415769 FrankieGoesToHo...
FrankieGoesToHollywood's picture

multiple tools = several printing presses to mitigate disaster recovery efforts or throughput needs. 

- From the FrankiGoesToHollywood FED dictionary.

Tue, 08/11/2015 - 18:17 | 6415921 Babaloo
Babaloo's picture

In Bernanke's defense, they DO have mutlple tools.  QE, fed funds rate, repo, margin rate, etc.

 

It's just not clear that any of them work.

Tue, 08/11/2015 - 18:57 | 6416044 johngaltfla
johngaltfla's picture

You left out cocaine and whores regarding mulitple tools.

You get a Wall Street virgin fucked up and he or she will use their cell phones to put in buy orders for whatever the fuck you want.

Tue, 08/11/2015 - 18:18 | 6415925 formadesika3
formadesika3's picture

Robert Reich:

 

Here’s a picture of one of the most important buildings in Washington, D.C. [Eccles Building]

Although its not on any tour. Its called the Federal Reserve

And here’s a picture of the most important economic official in government

Her name is Janet Yellen [Janet Yellen]

And she chairs the Federal Reserve Boards Open Market Committee

Ever hear of this committee?

You should know its members — here they are [Board members]

they have a big say in whether you have a job

and what happens to your pay

thats because they essentially decide how high interest rates

are going to be

 

Here’s The Way it Works:

the lower the rate, the easier it is to borrow

the easier it is to borrow, the more active the economy becomes

that’s because when interest rates are low

we’re paying less to the banks and more for the things we need

which increases demand and that in turn increases demand for labor

which leads to more jobs

lots of jobs and employers have to pay higher wages and offer better

working conditions to attract the workers they need

and this is good for everyone 

especially those at the bottom end of  the wage ladder

in late 1990s when the economy was moving at a fast clip

unemployment got down to 4%

and even people at the bottom got a raise

on the other hand, when the Fed raises rates

borrowing becomes harder and more costly.

we’re spending more on our debts and less on the things we need

so fewer jobs are created and there’s little to no pressure to raise wages

now if this were the whole story the Fed would obviously keep interest rates

at or near zero where they’ve been since the Great Recession

but the Fed is also supposed to prevent inflation — 

price increases that get out of control

when to much demand chases to few products

that’s what the Fed weighs —

whether to push for more jobs and higher wages or

whether to prevent inflation — 

regardless of the cost to working families.

this committee is going to be making that decision pretty soon

and some members are worried about inflation

so their pushing to raise rates

BUT THIS WOULD BE A BIG MISTAKE FOR 3 BIG REASONS [drawing furiously]

First, unemployment remains high when you consider the millions of Americans

who are still working part-time whode rather be working full-time

and the millions of others who have stopped looking for work altogether 

because they haven’t found any for years 

these people aren’t even counted as unemployed [still drawing furiously]

the percent of working age Americans who have jobs

is just about the lowest its been in 35 years

if the Fed raises rates now all this would get worse

Second, wages are still stuck in the mud [continues to draw furiously]

median household income is still 6% below what it was before the Great Recession

if the Fed raises rates theres no chance for most people of getting a wage increase

these trends hurt people of color and women the most

in 2013 the unemployment rate for blacks was 11.3%, 

more than double white unemployment [furiously…]

and of course women continue to make less than men for doing the same work

when the economy is booming and employers are looking to hire more workers

its harder for them to discriminate against black people and women [drawing, drawing, drawing]

so those racial and gender gaps have a chance to shrink but if the Fed raises rates

its allowing these disparities to get worse

Third, theres no sign of inflation anywhere! overall prices are tame

and where there not, as with airlines and internet services

its because companies don’t have enough competition [man, he can draw!]

and can raise prices without fear that consumers will go elsewhere

not because demand is getting out of control

besides, inflation isn’t like a genie that gets out of a bottle

if and when inflation breaks out it can be contained by raising interest rates then

some members of the Fed’s open market committee nonetheless

worry that wages will soon show signs of increasing

and they see this as an early warning of an inflation. BUT THEY ARE WRONG! [drawing furiously]

wage increases are good! 

Stagnation has been a central problem of the economy for years

as long as markets are competitive, wage increases don’t automatically lead to price increases

add these up and its a no-brainer the Fed should keep interest rates low

the Fed’s Open Market Committee must make jobs and wages its priority.

and understand both are still feeble

more jobs and better wages are more important 

than theoretical worries about accelerating inflation [finishes drawing furiously]

 

you can do something about this

click on the link to sign the petition so the Fed hears from everyday people like you!

 

 

http://robertreich.org/post/126022724565

 

Tue, 08/11/2015 - 18:35 | 6415982 booboo
booboo's picture

Fuck Robert Reich,  he talks out of both sides of his mouth and he belongs in a circus along with Krugman,

Tue, 08/11/2015 - 19:16 | 6416095 greenskeeper carl
greenskeeper carl's picture

I saw that video, it contains so much factually incorrect information it boggles the mind. I sometimes peruse salon, (I know, I know) for entertainment, and they had that video posted. I thought I would laugh, but I didn't. I got pissed. I used to post there occasionally when the desire to argue with idiots overwhelmed me, but now my posts show up to where only I can see them, so it looks like they are there, but when i open a tor window and go to the site, my posts are never there. They censor anyone who doesn't agree with the party line. The idiots who populate that site seemed to love it though. Yes, fuck robert reich, and the rest of the fed cheerleaders. I wanted to scream that the fucking fed screwing around with our money since 1913 is a HUGE part of why we are in this situation in the first place. It saddens me to think there will never be a day of reckoning for the fed's promoters like him and krugman for the pain they have helped unleash upon the former middle class of the US

Tue, 08/11/2015 - 19:23 | 6416114 Terminus C
Terminus C's picture

Fuck him with a rusty double bladed axe for saying there is no inflation.  Tell him to go to a grocery store and tell me there is no inflation.

No inflation... fuck off.

Tue, 08/11/2015 - 22:46 | 6416863 sonoftx
sonoftx's picture

Amen!! Brotha' TC.

Wed, 08/12/2015 - 04:14 | 6417380 buzzkillb
buzzkillb's picture

Forget that, why is the local supermarket low on fresh meat and produce for the last few weeks? Specifically onions, steak and ground beef. I go nearly everyday just to look around. Plenty of soda, chips and cookies.

Tue, 08/11/2015 - 19:39 | 6416154 knukles
knukles's picture

Anyone but me notice that they're both height impaired?

Tue, 08/11/2015 - 21:06 | 6416480 Make_Mine_A_Double
Make_Mine_A_Double's picture

They are known colloquially as The Red Dwarfes

Wed, 08/12/2015 - 06:51 | 6417487 Obama LaForge
Obama LaForge's picture

He's right about one thing: It didn't create inflation, aside from asset inflation. It created MASSIVE DEFLATION, which they will have to compensate for by helicopter money everywhere. -> inflation

Wed, 08/12/2015 - 14:36 | 6419288 TeethVillage88s
TeethVillage88s's picture

Again the Federal Reserve is a Private Banking Corporation with stock holders which is not responsible for US Jobs, US Trade Policy, or US Wages and Compensation.

I am surprised at Reich here, but looks like he just wanted to teach somethings about the FED.

US Congress and the US President have power regarding Jobs.

You can argue that the US President has taken over Legislative Functions of Congress. But today that is where the power is.

Passing around this False Meme that the FED has responsibility for US Jobs and Wages is Propaganda to take the heat off of US CON-gress.

Tue, 08/11/2015 - 19:45 | 6416178 ersatz007
ersatz007's picture

Bernocchio .... rhymes with Pinocchio.

Wed, 08/12/2015 - 00:01 | 6417092 tenpanhandle
tenpanhandle's picture

is that yer "light bulb" moment?

Tue, 08/11/2015 - 17:39 | 6415763 EscapeKey
EscapeKey's picture

schiff might very well be right on some things, but fuck, does he sound like a broken record

 

Tue, 08/11/2015 - 17:44 | 6415789 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

And Yellen, the CNBC satanic beast worshipers, the FED press releases, and the mocking bird msm don't?? Surely you jest.

Tue, 08/11/2015 - 17:54 | 6415828 TheSecondLaw
TheSecondLaw's picture

What's he supposed to do?  Start talking bullshit just to keep you entertained?

Tue, 08/11/2015 - 17:59 | 6415847 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

EscapeKey has some major normalcy bias and just refuses to accept the facts, as grim as they are. Peter IS a broken record but it's the RIGHT broken record, unlike the bullshit the others spew like the eCONonmy is good, there is no inflation, unemployment is low and the FED has everythign under control.  That's an evil broken record. Put on Peter's, you will win in the end if you do that. 

Tue, 08/11/2015 - 18:31 | 6415965 EscapeKey
EscapeKey's picture

that's a pretty daft post. all i said was that he sounds like a broken record - which he does. he's continuously banged the same drums since 2008, and you know what - so far, with questionable success. who knows, perhaps he'll be proven right in the end, it's certainly possible given the state of the global economy.

but how that corresponds with me "having some major normalcy bias and just refuses to accept the facts" i will never know. in fact, i bet you don't either.

Tue, 08/11/2015 - 18:42 | 6415999 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

Actually he's been talking about Gold since 1999 or so....you know when it was 230.00

Tue, 08/11/2015 - 18:57 | 6416042 EscapeKey
EscapeKey's picture

and actually, he's been wrong on that account on a number of occasions as well

 

Thursday, 25 Oct 2012 | 2:26 PM ET

Runaway public spending combined with excessively loose monetary policy by the Federal Reserve and other global central banks will push gold to $5,000 per ounce within the next two years, noted investor Peter Schiff said Thursday.

http://www.cnbc.com/id/49550053

Wed, 08/12/2015 - 00:38 | 6417161 FIAT CON
FIAT CON's picture

It is very hard to time events, especially when TPTB are for ever doing dirty things in the dark to try to change the games outcome or postpone the outcome.

Does anyone here think that gold will go sustantially down long term as the shit storm progresses? 

Wed, 08/12/2015 - 00:49 | 6417181 Pareto
Pareto's picture

+1 and nope.  but here's the thing.  if gold goes to $50/oz, it means that my 1 oz will buy a pack of smokes, two boxes of beer, a tank of fuel and a bag of groceries for two weeks.  and if gold goes to $5,000, it means my 1 oz will buy a pack of smokes, two boxes of beer, a tank of fuel and a bag of groceries for two weeks.  I could not care less about direction.  I care only about purchasing power.

Tue, 08/11/2015 - 18:55 | 6416029 Pareto
Pareto's picture

you repeating yourself 3 times, doesn't make what you say any more correct. 

Tue, 08/11/2015 - 17:57 | 6415840 Mini-Me
Mini-Me's picture

And he was a broken record about housing in 2004, 2005, 2006...  Same for stocks during the NASDAQ mania.  

His thinking is sound, but you can't expect people to time it just right.  

The point is to recognize how the economy is being mismanaged and position yourself properly to protect your wealth.

Tue, 08/11/2015 - 18:34 | 6415979 EscapeKey
EscapeKey's picture

did i mention anything about the final outcome? no.

all i said was that he sounds like a broken record, with which you agreed.

Tue, 08/11/2015 - 18:45 | 6416007 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

Yea, you said he was right on only "some things". What some things would those be? He has never set a date or tried timing the events...

Tue, 08/11/2015 - 18:44 | 6416004 Pareto
Pareto's picture

I wrote this a few days ago Escape.  Seems like its appropriate here as well.

 

I hate the "it was almost ten years ago he was warning about the CBO numbers" type answers, or, "Schiff's been saying this for years", or, "if you would have listened to Schiff you would have lost so much money" (which is bunk in and of itself because you can't lose what you never bought to begin with).....  And ya know why?  Its because these are non-substantive criticisms (also after the fact), because, if you aint sold out of this yet, then you don't own it, you haven't capitalized on it yet.  A great trader once told me that "anybody can buy a stock, but, lets see them sell it."  My second argument, on the so-called doomsdayer timing is simply this: the "call" has to start somewhere - sometime.  Schiff was but 2 years off as I recall.  How perfect does the timing have to be before its credible?  Two weeks?  The day before? Does the duration of the timing make the call less correct?

Seriously, does it make any sense to criticize the logic just because the event has yet to materialize?  I think the converse actually answers the arm chair critics better, and that is, "would you buy this market now?"  If you say "no I would not buy this market now", then doesn't that enforce the idea that a correction is due, or that there is doubt about the credibility of the longevity or tenure of the market itself?  If the doomsdayers are wrong, then why not long the market all day long?  You are either with the bulls, or you're with the bears (unless you're an options trader he he).

And besides, if the doomsdayer actually knew the precise timing, then wouldn't everybody?  Thats the point!!

Most of us here, see the market for what it is - and that is that none of it is free and unfettered price discovery.  There is all sorts of manipulation, data manipulation, HFT, Financial statement shinnanigans, an so on.  And for those of us who have been around a while know that even its intraday price action, is nothing like what it used to be 25 years ago.  And how often have we heard that "charts and indicators no longer matter" - thats about the only truth that is real.  Fibinocci(s) are based on things and actions occurring in their natural state - a scientific predictor that can hardly be thought to be accurate under a manipulated, coordinated, or, interfered environment.

So lets cut some slack to the Stockman's and the Schiff's and the Paul's and the Hussman's and the whoevers of the world - those guys that, for whatever reason, have a sick shitty feeling in their gut that's telling them that the numbers don't square with the policy - that actions taken are producing opposite macro results - that policies are creating perverse incentives that lead to apparent conclusions - and that as a result, financial trouble looms - all else equal.  Frankly, I'm grateful for at least just being made aware of it.  What I do, or don't do is another matter.

Wed, 08/12/2015 - 04:29 | 6417388 buzzkillb
buzzkillb's picture

A lot of the bears that ended up being right seemed to be about 1-2 years off. So that's what I expect the next go around. 1-2 years from now the bears/doomsayers may be right. In my business I don't see it yet, but its obvious this can't keep going on. I am a huge bear as I do see all the craziness, but now i just keep it mostly to myself and read read read to make my own conclusion. Feels similar to '05-'06. Even some bears who post here and have youtube videos are starting to get called out for being doomsayers on their videos. I doubt the bears are wrong, just ahead of their time. People want instant graitifcation on when the whole thing falls apart. Not going to happen.

One reason I have stayed out of this stock market is the random glitches and HFT.

Tue, 08/11/2015 - 17:34 | 6415737 BullyBearish
BullyBearish's picture

They want to devalue the dollar...let me count the ways...

Tue, 08/11/2015 - 17:34 | 6415738 J Jason Djfmam
J Jason Djfmam's picture

But they have a whole box of tools, plus helicopters!

Wed, 08/12/2015 - 02:18 | 6417307 Clowns to the l...
Clowns to the left_ jokers to the right's picture

Yellen doesn't have a copter, she has a broom.

Tue, 08/11/2015 - 17:41 | 6415776 dimwitted economist
dimwitted economist's picture

No Rate Increase AND Print up More $ You Fuckers!!!!!

Tue, 08/11/2015 - 20:46 | 6416408 BandGap
BandGap's picture

It's all just a silly little loop! Oh, I see!

This is like a roller coaster ride - 45 minutes in line, 5 minutes of cranking 'er up and 25 seconds of sheer terror.

Enjoy the ride, people!

Wed, 08/12/2015 - 10:55 | 6418314 mtl4
mtl4's picture

No, what is hilarious is that people won't be able to figure out why the 3X bear ETFs are losing money even while interest rates are rising.

Tue, 08/11/2015 - 17:35 | 6415735 Fukushima Fricassee
Fukushima Fricassee's picture

Bet ya can't QE just one, silly fuckers. Stop shorting Gold and buying APPL with my kids money you bastards.

Tue, 08/11/2015 - 17:37 | 6415751 EscapeKey
EscapeKey's picture

QE4 will definitely be the last round, just as Greek bailout #2 was definitely the last Greek bailout.

Tue, 08/11/2015 - 17:40 | 6415767 RaceToTheBottom
RaceToTheBottom's picture

QEn

n will definitely be the last one.

Tue, 08/11/2015 - 18:46 | 6416009 stocktivity
stocktivity's picture

It's your Grandkids money now who aren't even born yet!

Wed, 08/12/2015 - 12:55 | 6418810 Shaznardickleze...
Shaznardickleze the Doon's picture

monetary inflation causes genetic lineage deflation. Less suckers are born every minute the fed Quantitatively Eases aka fucks our future, for those who work for a living.
Those who don't are looking to have their family trees pruned. It's one thing to get a financial haircut, its another to be federally labeled a useful idiot useless eater

Tue, 08/11/2015 - 17:36 | 6415744 RaceToTheBottom
RaceToTheBottom's picture

QE to infinity and beyond.

Tue, 08/11/2015 - 17:37 | 6415748 semperfi
semperfi's picture

QE or die

Tue, 08/11/2015 - 18:18 | 6415926 messymerry
messymerry's picture

You can't fool me.  It's QEs all the way down...

;-D

Tue, 08/11/2015 - 18:42 | 6415997 ZerOhead
ZerOhead's picture

Nope.

They will stop when the time comes to finally bring it all down. They might even "unwind" their holdings to help make it crash faster.

Then they will really print.

Wed, 08/12/2015 - 09:41 | 6417979 conscious being
conscious being's picture

Good points ZeroHead. Now the destination is clear. The twists and turns on the way are not. The Banster boys will make gains on every prearrainged zig and zag. As you say, the end game is title to real assets as currencies disintegrate.

But not all is good for them. They have some high overhead. It must cost an awful lot of money to buy Congress year after year for example.

Tue, 08/11/2015 - 17:37 | 6415749 the not so migh...
the not so mighty maximiza's picture

They are stealth qe,ing now...what a clown show

Tue, 08/11/2015 - 17:40 | 6415768 gatorengineer
gatorengineer's picture

they dont have to .... they have sucessfully jawboned the rates down....

The biggest lie of the past 5 years here on the hedge was that the Flow of QE mattered.  You are seeing now that it was the magnitude of QE that mattered.

 

Tue, 08/11/2015 - 17:37 | 6415754 kaiserhoff
kaiserhoff's picture

When all you have is a hammer...

Tue, 08/11/2015 - 19:15 | 6416091 MartyFlesh
MartyFlesh's picture

When all you have is a Nail Gun...

Wed, 08/12/2015 - 05:59 | 6417438 Renfield
Renfield's picture

...every problem looks like a bankster?

Tue, 08/11/2015 - 17:37 | 6415755 gatorengineer
gatorengineer's picture

I think he is dead nuts wrong....  I think the best palliative care for this country is a Strong Dollar policy.  let them take it up 0.5% in September, drive the Euro to parity, lets get to 8 to 1 on the RMB again, and simulatneously allow repatriation of foreign reserves at say a 10 percent rate.  Let the rest of the world kill itself selling us cheap shit and taking our printed fiat in payment.  The myth that we sell abroad is ridiculous, drive the trade balance down.... get some 30 dollar a barrel oil going, and party like its 1999 till the end, while the rest of the world eats itself alive....  Go out as the Fugly Americans that we are. 

Tue, 08/11/2015 - 17:39 | 6415765 kliguy38
kliguy38's picture

make no mistake........the dollar will achieve its proper level eventually........and no one in Amerika is going to like the journey there or the ultimate destination........

Tue, 08/11/2015 - 18:01 | 6415856 kaiserhoff
kaiserhoff's picture

Just so.  A strong currency sets the pace for all trading partners,

  and complicates Soviet Central Planning.

 

Tue, 08/11/2015 - 18:08 | 6415881 lunaticfringe
lunaticfringe's picture

I like the cut of your jib, Gator

Tue, 08/11/2015 - 18:22 | 6415941 Babaloo
Babaloo's picture

Hiking the short rate to 1/2% won't necessarily do what you suggest.  With a weak economy, long rates would probably decline with an increase in the FF rate as the credit markets anticipate a recession,  Long rates decline, yield curve inverts and dollar doesn't strengthen as the the economy weakens.

Tue, 08/11/2015 - 20:24 | 6416332 california chrome
california chrome's picture
pal·li·a·tive /?pal???div/

noun

adjective

  • 1. (of a treatment or medicine) relieving pain or alleviating a problem without dealing with the underlying cause "short-term, palliative measures had been taken" synonyms: soothing, alleviating, sedative, calmative, for the terminally ill
Tue, 08/11/2015 - 17:37 | 6415756 FrankieGoesToHo...
FrankieGoesToHollywood's picture

Lets see, "The FEDs only option is to print money".  That is true.  But to be fair, thats the only option they ever had. 

That is a nice option to have BTW.

Wed, 08/12/2015 - 13:01 | 6418836 Shaznardickleze...
Shaznardickleze the Doon's picture

It prints money but creates debt. What you're saying is it's a nice option to create debt? It would be useful if the FED chair shit golden eggs. The only thing Golden Girl Janet Yellen shits is verbal diarrhea.

Tue, 08/11/2015 - 17:39 | 6415762 ElixirMixer
ElixirMixer's picture

There will not be a new QE. There will be something more destructive.

Tue, 08/11/2015 - 18:14 | 6415908 Savyindallas
Savyindallas's picture

Bail-ins? 

Tue, 08/11/2015 - 18:27 | 6415953 ElixirMixer
ElixirMixer's picture

Unfortunately the Fed only gives away that knowledge to their friends and family. 

Tue, 08/11/2015 - 18:27 | 6415954 ElixirMixer
ElixirMixer's picture

Unfortunately the Fed only gives away that knowledge to their friends and family. 

Tue, 08/11/2015 - 18:30 | 6415962 Savyindallas
Savyindallas's picture

Family- the Tribe? Also their goy associates like the Rockefeller's? 

Tue, 08/11/2015 - 17:39 | 6415766 InsanityIsWinning
InsanityIsWinning's picture

Exactly Art . . . they are neck deep in a liquidity trap of their own making and more QE will be the "no clothes Emperor" moment.  When the next QE is introduced Gold and the gold mining index should catch a serious bid.   

Tue, 08/11/2015 - 17:40 | 6415770 Mr. Bones
Mr. Bones's picture

Guys, guys, guys

What if

Guys seriously, what if they aren't as smart as they think they are?  What if they're exactly as smart as we think they are?

Tue, 08/11/2015 - 18:10 | 6415890 lunaticfringe
lunaticfringe's picture

"We have seen the enemy, they are exactly who we thought they were."

Tue, 08/11/2015 - 18:50 | 6416019 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

"They are who we thought they were." - Dennis Green

 

https://www.youtube.com/watch?v=aYKIcnj1MJY

Tue, 08/11/2015 - 17:40 | 6415772 Bunga Bunga
Bunga Bunga's picture

Before that we see $10 oil.

Tue, 08/11/2015 - 18:25 | 6415949 messymerry
messymerry's picture

Even at todays depressed prices for silver, oil is about $5.00 a barrel in pre 1965 Franklin half dollars. 

Take that and chew on it...

;-D

Tue, 08/11/2015 - 18:55 | 6416035 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

Are you saying that due to easy credit and debt that housing, auto and education loans and other "assets" are over valued and will revert to thier mean???

Wed, 08/12/2015 - 11:54 | 6418574 marathonman
marathonman's picture

'So you're saying there's a chance!'

 https://www.youtube.com/watch?v=KX5jNnDMfxA

Tue, 08/11/2015 - 17:41 | 6415773 gdiamond22
gdiamond22's picture

It's outrageous to think that the fed is going to be on some 'rate normalization' path - whatever the fuck that means. We are talking about 25bps here - if the economy was in this great state of robust growth (it's not) we'd be at 2-2.50% right now. Not debating on 25bps.

And how much 'crediibility' will the Fed have (which is at zero right now) if it hikes only to cut and push QE4? This has to be the final dance for centrally planned markets and it'll be ugly.

Tue, 08/11/2015 - 18:00 | 6415848 Perseus son of Zeus
Perseus son of Zeus's picture

"hikes only to cut and push QE4"

+1 but I think QE will come disguised as something else.

Tue, 08/11/2015 - 18:12 | 6415900 Row Well Number 41
Row Well Number 41's picture

The FED has backed themselves into a cave with one exit, and it's guarded by the derivitives monster from HELL.

#41

Tue, 08/11/2015 - 19:34 | 6416138 jerry_theking_lawler
jerry_theking_lawler's picture

Ah ha. You are finally onto it. The .fed can not do anything. They have been backing into the corner for 8+ years now. Now they are there and there is no way out.

This. Will. End. Badly.   Rest assured.

If you don't have physical assets, ie, Cash, Land, Property, PMs, means of production...then are soon going to be SOL.  Better late than never though.

Tue, 08/11/2015 - 17:43 | 6415780 lordbyroniv
lordbyroniv's picture

Only solution I see is to Nuke a major city, fake an Alien Invasion or throw an Asteroid into the Atlantic that wipes out a chunk of the population.

Tue, 08/11/2015 - 18:02 | 6415857 The Devil
The Devil's picture

Are you attending my dinner party with Paul Krugman?

Tue, 08/11/2015 - 18:05 | 6415865 Chupacabra-322
Chupacabra-322's picture

"When all else fails, they take you to war"
-Gerald Celente

Wed, 08/12/2015 - 00:00 | 6417088 AntiSanta
AntiSanta's picture

As long as Wall Street and Washington D.C. don't manage to evacuate before the massive wave hits, then this approach would probably work.

Tue, 08/11/2015 - 17:43 | 6415782 RaceToTheBottom
RaceToTheBottom's picture

How much QE does one normally apply when one has a 25% unemployment rate?

Tue, 08/11/2015 - 18:11 | 6415898 lunaticfringe
lunaticfringe's picture

A fuckton.

Tue, 08/11/2015 - 17:44 | 6415787 buzzsaw99
buzzsaw99's picture

cashin has heard the sound of inevitability

Tue, 08/11/2015 - 17:45 | 6415792 RaceToTheBottom
RaceToTheBottom's picture

"Will Belgium please report to the QE window."

"Belgium, to the QE window".

Tue, 08/11/2015 - 17:47 | 6415797 saveUSsavers
saveUSsavers's picture

CASHIN SHOULD CASHOUT already! Move the F on.

Tue, 08/11/2015 - 17:47 | 6415799 g speed
g speed's picture

everyone that needs to roll over debt is talking ---"the FED has to Qe it just has to I mean what else can it do??? I mean"   just wishful thinking-----well the FED will fuck you and not even give you a kiss--- -

what will happen to all those bets those guys talking their book made when the FED fucks them by not being Santaclaus forever---all those guys that got paid to play--- If you think Yellen is your grandma think again--she is your worst divorce nightmare-- just saying--

Tue, 08/11/2015 - 17:48 | 6415802 Savyindallas
Savyindallas's picture

Fed is out of options? Right. The rich keep geting richer from the Fed's policy by placing trillions in debt to be paid off by the next generation so the rich vampires can profit NOW. The party is now ending  -but wait  -it can continue for a while longer (at least for the rich)  -by more QE.

Cashin is a piece of shit for saying the Fed has no other options. He is obviously profiting from the Fed-induced looting of America. I hope when the hungry, angry mobs start stringing these bastards up -that there is a nice tall tree for cashin.  

 

Wed, 08/12/2015 - 09:51 | 6418032 conscious being
conscious being's picture

Savy, this is not about what they should do. This is about they will do.

Tue, 08/11/2015 - 17:50 | 6415813 CheapBastard
CheapBastard's picture
Columbia House files for bankruptcy

 

http://money.cnn.com/2015/08/10/news/columbia-house-bankruptcy/index.html

 

It's probably the most bankruptcy-filled rekoveries I ever seen.

Tue, 08/11/2015 - 17:52 | 6415819 DOGGONE
DOGGONE's picture

AND THEY ARE LIVING THE BIG LIE:
http://www.showrealhist.com/recDJIAtoRD.html

Tue, 08/11/2015 - 18:07 | 6415835 swass
swass's picture

Art is a good guy and I respect him.  I don't think the Fed politically can do any more QE.  It's completely apparent it failed.  They've also been talking up the economy as getting better for a long time, so for it to all the sudden require more QE seems like something only Geithner could explain.  That said, the Fed has always followed the 90day/13wk and it seems to me that couldn't get any lower and has started to rise.  So the likelihood of them raising the rates, to me, is high.  They had also been focused on shifting their paper into longer maturities.

Tue, 08/11/2015 - 18:14 | 6415909 Vlad the Inhaler
Vlad the Inhaler's picture

It's apparent to maybe 5% of the population that it failed.  The other 95% say:  QE, is that the name of Kardashian's new puppy?  The 1% say: what do you mean QE failed?  Politically they could do QE forever, ala Japan.

Tue, 08/11/2015 - 18:28 | 6415955 swass
swass's picture

If that were true, why did they sit back and allow the dollar to appreciate over the last several years?  They have sat on ZIRP for so long because the short end of the yield curve has been sitting at zero.  Once that raises, they will raise.  Facts are facts.   China has already shown that wreckless central bank interventions can't fix an imploding bubble.

Tue, 08/11/2015 - 20:59 | 6416455 lucyvp
lucyvp's picture

Are they in collusion with other banks?  First Japan gets to devalue, now it's europes turn.  Maybe then china, and then our turn to devalue our currency again.

Also ...  

constant maturity of 1 year t-bills is now at .36%.  Although not nose bleed high, it is at a 5 year high.  I have noticed bank interest rates starting to creep up.  Now who is the tail and who is the dog???

 

Wed, 08/12/2015 - 00:15 | 6417125 swass
swass's picture

I think we have to assume they are always colluding with each other, or at least with other banks friendly to us. To your point, it does seem like the tail is wagging the dog with interest rates versus funds rate.

Wed, 08/12/2015 - 09:53 | 6418046 conscious being
conscious being's picture

Nonsequitur much?

Tue, 08/11/2015 - 18:30 | 6415963 ffed
ffed's picture

lol fed will have no choice but moar QE. Until it all go's BOOM.

Tue, 08/11/2015 - 18:38 | 6415980 swass
swass's picture

Once can never rule out the possibility they do more QE, but what you just stated is they do it until it goes boom.  Why not continue to do it while it's going boom, as it would prevent it from imploding?  After all, that's exactly what we're talking about here.  Because it doesn't work.  Yesterdays parlour trick.  They blew their wad and now Yellen is left holding a limp biscuit. 

Tue, 08/11/2015 - 17:56 | 6415837 all-priced-in
all-priced-in's picture

Good thing NFL preseason starts Thursday August 13 - that should keep them busy until February 7, 2016 (Super Bowl "L") .

 

 

 

 

/s/

Tue, 08/11/2015 - 18:16 | 6415904 Hitlery_4_Dictator
Hitlery_4_Dictator's picture

LOL even thier precious big government worshipping NFL sideshow won't keep them busy when this blows....

 

Sidenote...I love going to Sportclips for haircuts and then telling everyone loudly how I hate sports...it's a good time while the slaves are watching espn on the 24 tv's there. Usually the girl cutting my hair agrees and we both bash sports, much to the cegrin of the dumb sport loving slaves there, try it, you won't be disappointed. 

Tue, 08/11/2015 - 17:57 | 6415841 ah-ooog-ah
ah-ooog-ah's picture

ruh-roh!

Tue, 08/11/2015 - 17:58 | 6415844 Mini-Me
Mini-Me's picture

They keep pulling demand from the future.  Eventually the future arrives.  

Tue, 08/11/2015 - 18:00 | 6415849 Chippewa Partners
Chippewa Partners's picture

Banker Enrichment.

To infinity and beyond.................  

Tue, 08/11/2015 - 18:03 | 6415859 richiebaby
richiebaby's picture

Yellen is a pimp. She never could have outfought the markets. But I didn't know until this day that it was Art Cashin all along

Wed, 08/12/2015 - 06:05 | 6417441 Renfield
Renfield's picture

Today I settled all Fed business, so don't tell me you're innocent, Greenspan.

Tue, 08/11/2015 - 18:05 | 6415866 coast
coast's picture

But the mainstream media and the gubbermint makes china look like terrorists when they do the same thing....They are just jealous because China is doing it better than they can...Now the feds will copy china and put you in jail for selling...lol fucking lol...

Tue, 08/11/2015 - 18:08 | 6415882 Seasmoke
Seasmoke's picture

Fire up those helicopters Mr. Yellen. Times up.

Tue, 08/11/2015 - 18:10 | 6415896 BurningBetty
BurningBetty's picture

Isn't this the whole point? The entire EU project that HAS to prevail at all costs, disregarding that the system is inflicting misery on millions of people. They own every Central Bank on the planet and by running the interest rates to 0 and into negatives, printing money as they see fit, they are effectively destroying the value of all the currencies. This will continue till the entire system crumbles as the people of all nations watch in dismay at what is happening(the sheep). With every currency destroyed and every nation indebted beyond imagination they will get their one world government and one world currency. The End! 

Tue, 08/11/2015 - 18:12 | 6415897 Grandad Grumps
Grandad Grumps's picture

No, they can do a lot more:

1. Get rid of the controls and manipulation of the system and let the market take over.
2. Repeal Gramm-Leach-Bliley and the commodity future modernization act of 2000
3. Return the rule of law and start prosecuting financial criminals
4. Let the banks die and then rebuild them
5. Remove the corporate veil that protects officers and directors from prosecution for the illegal acts of their company
6. Stop inflation. End the Fed.
7. Make Congress accountable for their constitutional responsibilities and eliminate legalized congressional corruption.
8. Stop terrorizing the world

We are under a false paradigm created by the banks and sold to us as "the norm". But, it is not the norm in a free and fair economic environment. It is the norm in their corrupt environment ... and there are many elitist beneficiaries living parasitically off of the rest of us.

Tue, 08/11/2015 - 18:33 | 6415976 Kickaha
Kickaha's picture

Not that it makes much difference in the current political environment, but there is no "corporate veil" protecting the human beings committing criminal acts while employed by some megacorp.  Commiting crimes while employed does not get you a free pass under the law.  There is no "I was just being a good corporate stooge" defense.  Now, if you are politically connected, that is something entirely different in a crony capitalism system.

Wed, 08/12/2015 - 01:00 | 6417197 FIAT CON
FIAT CON's picture

wasn't the bill passed that stated "corporations are people" does'nt this take the responsability away from the exec's and blame the corporation?

 

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