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This Is What Yellen Said About Negative Rates Coming To The US
As reported earlier, the biggest stunner bar none in today's FOMC announcement, was the emergence of a negative interest rate dot in the Fed's projections. It was unclear who drew that (perhaps Kocherlakota, perhaps not)...
... but the author is ultimately irrelevant: what is very relevant is the "inception" of NIRP in the heads of the FOMC members, which came at a time just when everyone was supposedly gearing up to boost rates by a meager 25 bps, further raising questions if the US economy is already in recession (spoiler alert: yes).
Of course, this should come as no surprise to our readers: just in January we wrote "Get Ready For Negative Interest Rates In The US", but for the Fed to admit this possibility just when it was widely expected to at least signal a rebound in the economy with the tiniest of rate hikes, or at worst a hawkish statement, was truly a shock.
So besides a red dot on the dot plot, what else do we have to go on? Not much, though luckily one reporter did ask Yellen what the NIRP dot signaled. This is what she said:
Let me be clear that negative interest rates was not something that we considered very seriously at all today. It was not one of our main policy options
The proverbial "we did not seriously consider it today" fluff. Remember when the SNB promised the Euro-Franc peg was safe and sound "today", and the very next day it crushed countless FX traders who were long the EURCHF? Kinda like that.
And yet...
I don’t expect that we’re going to be in a path of providing additional accommodation. But if the outlook were to change in a way that most of my colleagues and I do not expect, and we found ourselves with a weak economy that needed additional stimulus, we would look at all of our available tools. And that would be something that we would evaluate in that kind of context.
And there you have it: not if but when the inevitable inventory accumulation spills over and results in the next recession, we now know the simple choice that is facing the Fed: QE 4 (or 10 if the Fed goes "Windows") or NIRP.
As for hiking rates, well we leave it to Ben Bernanke who said it best earlier this year: "No Rate Normalization During My Lifetime"
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She can't make cookies cuz she gets really nervous any time she comes near an oven.
But she can knit one hell of a sweater.
Can she do interviews ?
How is printing money to buy treasuries and stocks while keeping "ZIRP" not NIRP?
It was stunning the same way a captive bolt pistol is before the slaughter.
Let me be clear that negative interest rates was not something that we considered very seriously at all today... Janet Yellen
Let me be clear, there is no Fed equity market put... William C. Dudley
Yeah, the operative word being TODAY.
To paraphrase Bill Clinton, it depends on what the definition of "today" is.
Righty O.
Everything is Awesome...TODAY
I will tell my. Bank teller I want my money in coins
Does anyone know if Janet Yellen ever suffered a stroke? She really talks like someone with some sort of mental 'deficiency'. "So....huh....I would...I would....." WTF
that look is a moral deficiency that comes from having sold her soul
Yellen knows she is a felon.
The only thing that keeps the totem pole standing is everyone staring at it.
Is it just me or is Yellen gaining weight and getting frumpier?
Yes, and it's a shame. She used to be so smokin' hot.
Just think if Mr. Yellen and Carly Fiorina had a baby... /shudder
"This one goes up to 11."
And NIRP would accomplish nothing more than pushing more money into speculative assets, equities and commodities.
I would love to ask Mr Yellin what happens when investors accept the fact that QE and ZIRP have done dothing but destroy the purchasing power of consumers and that no investment class can be pushed any higher. Goldman themselves are predicting $20 a barrell oil. There can be no escape from the deflationary correction coming. It seems everyone but the FED realizes this. Paying a negative interest is far preferable to principal destruction as EVERYTHING is priced lower!
not surprising ....TIPS yields have been negative for 4 years, plus or minus
https://www.stlouisfed.org/publications/regional-economist/january-2013/how-low-can-you-go-negative-interest-rates-and-investors-flight-to-safety
NIRP soon, bitchez!
All the money in the banks belongs to them! Let that be clear! Your money is not safe in a bank. They will steal it by hook or crook!
And this comes from a democrate with plenty of derivatives exposure.
+1. It's coming. Writing has been on the wall for quite some time.
Central Planning fails again as is the norm. And yet it's amazing how Bernie Sander's supporters claim that Socialism shouldn't be a dirty word and that we have a history of Democratic Socialism in the U.S.
Of course we have Democratic Socialism in the U.S. and look at what it's doing. It's killing us!
People are idiots.
Speak for yourself, at least you're good at that.
No you don't. It is statism that is driven by the corporations. They own the government and its resources.
It is Socialism. The government holds control but the corporations have the power through bribery and corruption. And the problem with government control is no one can compete with government measures. Socialism, democracy, republicanism, fascism, these are all just words. In the end it is the balance between individual liberty and centralized power. And in history whenever power begins to centralize it marks the fall of nations. It always fails.
"It is Socialism. The government holds control but the corporations have the power through bribery and corruption."
Son, you need to go and re-read the definition of socialism...
What the fucking hell has happened to education in this country?
Corporate Socialism, Corporate Subsidies, Corporate Tax Waivers instead of Tax Reform, Corporate Bailouts, TRAP/TARP Bailouts, Bankruptcy Protection for Corporate leaders Who Loot the Corporate Wealth, False Financial Ratings instead of Reforming Financial Ratings to account for High Overhead and Adminstrative Costs (Tricking Investors and Leaving Investors wondering where the Revenue Disappeared to.
Investors are getting hurt all over the USA from Corporate Socialism type protections or Gaming of the System.
- Fascism
- Statism
- American Style Welfare Programs type Socialism
- Social Security & Medicare type systems that could be fixed and medical costs, malpractice costs that could be controlled
- American Style Federal Contracts, Direct Support of Big Corporations and Insiders including in the MIC
There is a lot of ground to cover.
Bernie Sanders believes in European social democracy, not democratic socialism. In a democratic-socialist society the means of production would be owned and directed by workers at enterprises which would in turn compete in a free market. Taxation would be minimal and government functions would be distributed; most of the welfare spending we have now would be unnecessary because far less wealth would go to the 0.01% who refuse to work, and more would go to working people. The monetary system would not be run by private banks but would instead be created by the state.
Socialism shouldn't be a dirty word, as Bernie's ideas are not socialism other than in name. He wants to redistribute income, a failed proposal that (1) does nothing to deprive the rich of their ill-gotten wealth, and (2) reduces incentive of all sections of society to contribute.
Do you know where those skittles have been?
And after that alarming epitaph of "epitaph(s)"?...
American docile sheep will graze blissfully in the valley below oblivious to what their shepherds are doing in order to keep them stupid and complacent... until of course it's time for dividing the herd and sending them to there eventual "last" pen/sector before supper!
Make sure that we don't have anymore confusing and disturbing images coming out of Europe or the Middle East tonight that are occuring because of a government that is desperate to keep it's reserve currency status and "initiatives" intact!
It's Thursday evening you see and I've got some football to watch on T.V.
From the chart above the year 2015 there are only 4 dots below the .25 line. The rest were above so why were rates held at near zero? So who the hell made the decision today since the FED didn't. Was it GS all along as we thought?
For how many years are we all hwre saying the same thing since we have been here in 2009....understand that...many of us have infants at the time now entering school....THE FEDS WILL NEVER RAISE RATES...they cannot afford the outpayments to a 10 year above 3%...not happening..
They have done what they wanted to and squashed precious metal prices...we have a fully centrally planned and fixed stock market based on paper manipulation...it's not gonna ever happen..when it does it will be a baby ass .25% rate increase and then it will be another 2 years of nothing...when the market collapses we will revert right back to ZIRP...
It ends when the dollar is dethroned or when Silver and Gold are so completely physically owned by Russia & China that they cannot even nudge win all the paper manipulation the price...
This ends in riots and death and chaos and global war eventually...could be next year and could be 10 years from now but it will end...8 years of ZIRP and QE...yeah...this will end will considering it took all this an additional debt just to get prices back to slighlty above Lehman levels..
Why do you think we had that little 1000 point sell off? Onward and upwards to new fictional highs...
Good to see you again John. Miss your well reasoned posts around here.
Well said. I share the same sentiments including fictional market direction. The math has run it's course and we are squarely in a phase of suspension of consequences at all costs, particularly because it is geopolitical in nature... the sort of stuff that breaks nations. Overshoot is a bitch and she will come for her pound of flesh at some point sooner rather than later.
Yellen is Jellin! Negative rates in 2016! They won't stop until there is nothing left to rape, pillage & plunder! We're in the third act of a hellava play! Que the war drums!
A gvt big enough to give you everything you want, is strong enough to take everything you have. T.J.
i think what she said is true, there is no NIRP policy, there may be some other policy which has the intended result such as a bond tax at auction. the government may simply stop selling bonds at a discount.
In other words what Jack is saying is...Fucking A we'll go negitive in a heartbeat. Just as soon as I get the word.
It's coming soon to a theater near you!
The theater is dead, long live the theater!!
We are going Greece. Blankfein is going to do it to us and he's going to do it real slow.
Hah ! Greece is the template.
@.." But if the outlook were to change in a way that most of my colleagues and I do not expect, and we found ourselves with a weak economy that needed additional stimulus, we would look at all of our available tools. And that would be something that we would evaluate in that kind of context." j.y
.
this is why i despise the federal reserve and
encourage all those who want to see it eliminated.
first, they systematically destroy the value of the
currency, federal reserve note, which is not federal,
there are no reserves of value and it probably isn't
even a note anymore; then they tell you that outright
stealing your money is stimulus for the economy,
stealing is stimulation. then, people shake their heads
and go along with the evil plot. the only thing stimulated
by nirp would be hft algos and they don't feel anything
anyway, as far as anyone can tell, including the federal reserve
currency gods.
.
have we all taken crazy pills?
War
https://www.youtube.com/watch?v=_d8C4AIFgUg
And now a word from Congress ( crickets chirping )
They are all rehearsing for the 'o noes we've run out of money-again' show on September 30
Hows about you and I go in the back room and do a couple lines?
Just a dummy in "Flyover" country, but buying precious metals.....LEAD
Lead will be quite useful after the Iranians, Chinese, or North Koreans nuke us.
I saw that on "Propaganda Today" too. I'm afraid there's a much higher probability that our own government would do it first given that they've already done it once before.
BTW- what's the opposite of a "Truther"?
Why not just bring in hundreds of thousands of terrorists form all over the world and then the government can have a big shoot out, go door to door, police state horeshit and wipe most of us out in the process?
There is already such an excess of reserves in the system that the Fed has no idea how to affect an interest rate hike. They have been making this up as they go. The whole thing is for show.
I'd ke to think I'm prepped for whatever may come my way when this shit-show finally comes crashing down, but you just never know given how quickly lawlessness, rioting, and war might break out and spread. That said, I have just one wish in all this. I may go down in flames as a mob of FSAers moves through to take my shit, but I just ask please God that I might live long enoughto see some hero - or heroes - drag smug assholes like Krugman, Summers, Blankfein, and Dimon from their homes or whatever bunker they've retreated to and cut their heads smooth off their bodies on prime-time television. That would at least make accepting my own demise a bit easier.
I just ask please God that I might live long enoughto see some hero...
Perhaps you should change your name to Simeon, this request was evidently asked by another in times past: "And behold, there was a man in Jerusalem whose name was Simeon, and this man was just and devout, waiting for the Consolation of Israel, and the Holy Spirit was upon him. And it had been revealed to him by the Holy Spirit that he would not see death before he had seen the Lord’s Christ. So he came by the Spirit into the temple. And when the parents brought in the Child Jesus, to do for Him according to the custom of the law, he took Him up in his arms and blessed God and said: “Lord, now You are letting Your servant depart in peace, according to Your word; for my eyes have seen Your salvation which You have prepared before the face of all peoples,a light to bring revelation to the Gentiles, and the glory of Your people Israel.”
"And Joseph and His mother marveled at those things which were spoken of Him. Then Simeon blessed them, and said to Mary His mother, “Behold, this Child is destined for the fall and rising of many in Israel, and for a sign which will be spoken against..." Luke 2:25-34.
jmobservation
I am happy our crack team of economists running the world can make such nice dot pictures. They look like a nice forest of little trees...
speaking of tools the fed might employ,
how about the tonto used in seppuku.
as leaders they should lead by example
rather than financially gut the populations in the
presence of the wolves of washington and
wall street.
it is just plain daylight evil, man.
We are already in real negative rate with .25% fed rate and say 1.5% inflation according to their estimation, so the the real rate is .25-1.5=-1.25%.
To speak of a "real rate" is misleading; the money supply, created based on debt, must necessarily go up exponentially in order to keep ahead of the interest payments. The results of this can be best seen in our stock and property markets, fueled by ths cheap money to high hell.
What is wrong with the Fed?
QE was working until 2011 when the Fed did not have the guts to cut it off.
We could have had a different monetary policy and a different result.
http://michaelekelley.com/2015/03/27/the-kelley-monetary-policy-rule/
Part of the problem is the failed Fed inflation target.
http://michaelekelley.com/2015/02/11/fed-inflation-target-is-abnormal/
Here is how to respond.
http://michaelekelley.com/2014/10/16/8-things-to-do-when-recession-happens/
ZIRP -> NIRP -> BURP
ZIRP -> NIRP -> BURP -> DUMP!!!
Forgot slurp.
What we have here is a failure to communicate. What Old Yeller neglects to mention is that while they at the FED have run out of tools in the FED toolbox it is increasingly evident that that means the FED mechanics [Old Yeller herself] are INCOMPETENT to be tinkering with a centrally planned economy that has proven to be about as effecient as a bag of hammers. Furthermore, given that Old Yeller does not know what to do, and is incapable of bringing about any sort of resolution to a festering problem of NO GROWTH, it seems reasonable to assert that the only logical conclusion is to fire the FED entirely, and do away with Central Bankers because they are only parasites & pond scum if we are to pragmatically assess their worth to us over successive terms of dictatorship & neoliberal largesse!
Two tools in the box; ZIRP and QE. Now they added one more: NIRP, because the first two are broken.
When all you have is a hammer, every problem looks like a nail.
Look out!!!! Hammer time.
Yellen's 'tool box' full of goodies to screw Main St.
NIRP is theft. They just give you back less than what you deposit in the bank. It's means she's open to discussing stealing from you.
BINGO !
The consumers won't borrown money from us and spend it. They must be saving it.
Spend, you sheep! Why aren't you spending? Damnit, shop 'til you drop!!!
I know! Let's tell them we will steal their savings if they don't borrow money and spend it.
The flogging will continue until morale improves.
Ironically, the end of interest on debt-backed currency would end the method of control that the private bankers (and their central banking cronies) use to control us. It is the interest charges that grow exponentially, requiring us to take on more loans to pay back the previous interest in an exponential fashion, ad infinitum. With a negative interest rate however, there is debt-free money left over at the end, in a limited amount.
This is infinitely better than a system that must perpetually grow exponentially, stealing more and more of the product of labor in order to stay afloat.
Of course, I don't see the private banks allowing the negative rates to trickle down to households. More likely they will be restricted to "safe" corporations, government, etc. in order to create infinite claims on the existing wealth in the economy (money). They will then use this money to further cement their control over the real economy while the people continue with the same positive interest rates that they had before.
So the stock market throws a thousand point hissy fit, and Mama Yellen gives in so all the yelling doesn't upset the other shoppers. But for some reason, it doesn't help. The kid won't stop.
What she has yet to realize -- although her deer in the headlights look may belie it -- but dawn is coming for sure, as in tomorrow and next week, that what she and her predecessors have managed to accomplish is a crash of the dollar and equities in concert.
Not only is this result counterintuitve, it's one of the great accomplishments of all the great idiots of all history. Alfred E. Neuman times 10 to the googleplex.
Some people might say that equities should have continued their crash in 2009 and that the dollar never should have survived QE.
All I can tell you, J Stanley, is "Keep your eye upon the donut, and not upon the hole."
Next to "What, me worry?", that was Alfred E Neumann's favorite thing to say.
We got 7 glorious years, full of beer and sex, when we should have been eating out of dumpsters and marauding.
Seth Rogen Unveils New Christmas Movie — ‘Will Open on Thanksgiving, Made by Jews’ (VIDEO)
http://www.algemeiner.com/2015/07/28/seth-rogen-unveils-new-christmas-mo...
Jews Boast of Owning Hollywood—But Slam Gentiles Who Say the Same
http://newobserveronline.com/jews-boast-of-owning-hollywood-but-slam-gen...
Seth Rogen, Christians United For Israel Slam Ann Coulter Over Her Tweet Referring to ‘F—ing Jews’
http://www.theblaze.com/stories/2015/09/17/seth-rogen-christians-united-...
Seth Rogen, Judd Apatow, etc. have surrounded themselves disproportionately with Jews for years - now Rogen, who would cry and shit his pants if a mere goy made a movie making fun of Purim or Passover or some other fucked up revenge fantasy Jewish "holiday" - has got a "christmas" movie starring 2 Jews and no doubt as Jeiwsh-run as anything he or Judd Apatow ever do.
Fuck you Seth Rogen.
p.s. What if she had left out "fucking"?
what if she had said "Israel firsters"?
Have you seen this person https://www.google.com/imgres?imgurl=http://creatureshop.com/wp-content/... wanted for fraud,counterfeiting,racketeering, and aiding and abetting criminal behavior and creating an overall environment of mayhem, oh and impoverishment of the elderly.do not feed! Do not alert proper authorities because there are none.
Not a bad shot there of ol' Yellen!
"No one would welcome a counterfeiter to town, yet this same authority is blindly given to our central bank without any serious oversight by the Congress.
"When the government can replicate the monetary unit at will without regard to cost, whether it's paper currency or a computer entry, it's morally identical to the counterfeiter who illegally prints currency.
"Both ways, it's fraud." - Ron Paul, Paper Money and Tryanny, Sept. 5, 2003
What Janet Yellen's stressed out anxiety-ridden look translates into to:
NIRP + multiplier effect = YOUR END!
Any question(s)?
Oh rest assured they'll take us down with them and thus will be our ends as well.
you can say that
Heck, they're going to land on top of us.
One thing is for sure, Trump or any of the other of the dogs in that race, is going to be in way, way, way over his/her head from Day One.
Well, actually it is going to be over his/her head long before (s)he takes office. And, BOb is in over his head ...
"I don’t expect that we’re going to be in a path of providing additional accommodation. But if the outlook were to change in a way that most of my colleagues and I do not expect, and we found ourselves with a weak economy that needed additional stimulus, we would look at all of our available tools. And that would be something that we would evaluate in that kind of context" Cankles.
Exactly how does one learn to talk and answer questions like that? Is that why we are in so much trouble? Because our scholors are the biggest bullshitters on the planet? It's funny how someone can answer something that could be answered with 1 or 2 words and instead create an entire paragraph. And on top of that, not really tell you a fucking thing. And then everyone praises them for being smart.
"I do not expect" = bank on it.
What we are hearing is "weasel words." That means, the speaker does not want to outright lie; (s)he simply does not want you to hear the truth.
By now the truth is overwhelming; even the PPT was unable to keep the Dow in the black today, and that was with no rate hike.
Keep that popcorn handy, kiddies. More fun times immediately ahead.
Exactly how does one learn to talk and answer questions like that? Is that why we are in so much trouble? Because our scholors are the biggest bullshitters on the planet?
rs
Simple.
Because "We The Sheeple" allow it unabated without hesitation, limits or restriction because we've been told they know best!
And we don't even care anymore whether they do or don't!!!
I could agree to NIRP for 24 hours predicated on the allowance of David Stockman to punch Yellen in the face.
What the fuck would she know what to expect after how many fucking quarters of accommodation?. Absolute fucking liars. They will print to recovery or complete destruction. There are no other options, the battle lines are drawn, the only question now is how long before it gets really bad.
It isn't really bad now? What do you know that you are not sharing?
I guess it could be worse; I could be short gold.
I'm starting to see the beginnings of a 'six pack'.
This prolly doesn't help anyone upset with Yellen's statement. But it means a lot to me.
You got the DVDs for "Hip-Hop Abs" from the TV Commercial?
Hey I heard there is a smart pill now in different versions that they can prescribe if you have depression or sleep apnea.
It is like over a $1 a pill and comes from India, it helps to focus on workouts and projects for like 18 hours. They say you can take it for a week, then go off for a week to prevent tolerance from building up
Man, would be great to use that during the winter to workout and study the Central Bank.
I'm thinking of stepping back from the screen for a couple of weeks, I cannot actually tell for sure that this is sarcasm or not.
My bad, was joking about the DVDs, but then added something about the pills that is kind of interesting.
So the part about the pills was not joking?
Yeah, the pills are available on the internet.
Modalert, modifil, and some others I guess.
As I was saying...... "Modalert is a generic labeled version of another drug known as Modafinil (Provigil). It is sold primarily from online pharmacies based out of India and manufactured by ..."
I tried to order some but it seemed the better generics could not be shipped to the US. That was sometime in 2014. Perhaps things are different now. If you have got them in the mail, could you please include the web site. :o)
I'm sure people will buy your Modalert, there are plenty of misguided gullible fearful jealous and greedy people around who would be stupid enough to completely destroy themselves. Please don't bother posting the website here. Hang your head in shame.
I tried to say that I looked for this class of drugs last year at some reputable Indian website and and when I tried to order them the site told me they weren't available.
Teethvillage made it sound like they would be in the mail the next day to anyone who ordered them.
Unless I were a prescribing physician with experience with this class of drugs, I would hesitate to tell others whether or not to take them.
I wonder, Tooth, if you aren't referring to Nuvigil and its sister drug, Provigil. My doctor gave me a sample pack of six and it seemed to work.
The problem is that it isn't a $1 a pill (surprise, surprise). The patent holder is the Israeli pharma, Teva, and if they permit Indan companies the right to make a generic version, apparently they can't sell them in the US.
The price here for 30, depending on the milligramage, was something like $180 to $300.
It's worth more than Viagra, unless you're walking around sticking your unit in every open orifice you come across.
Some of the well-to-do traders here can probably afford both. Then the Nuvigil will give them more waking hours to go poking around.
Ben Shalom Bernanke[1] (/b?r?næ?ki/ b?r-NANG-kee;[2] born December 13, 1953) is an American economist at the Brookings Institution
Brookings traces its history back to 1916 and has contributed to the creation of the United Nations, the Marshall Plan, and the Congressional Budget Office, as well as influenced policies of deregulation, broad-based tax reform, welfare reform, and foreign aid.[48]
I'm thinking Ben Bernanke has a lot to answer to the people for in the shitty way he and his TBTF Buddies, Hank Paulson, and Timothy Geithner handled the 2008 Global Financial Crisis.
Brookings has a lot to answer to the people for as well when you look at the long term trend in the US Federal Govt, Foreign Policy, War, Shitty US Education, Shitty US Politics, Shitty US Press & Media.
- The Rules are the Rules till the guy in power says they are to be changed
- Why the hell can't Savers get an Interest Rate for money they Lent to the Banks in Checking and Savings Accounts, banks are debtor to me
Up is down and Janet Yellen is full of Moral Hazard.
- Possession used to be 9/10s of the Law, now we have confiscation of currency throughout the USA by the Police, this loss of Common Law... Now leads to NIRP
- You didn't earn that money, you don't own that (Common Law has been replaced by DHS, TSA, FEMA, Federalization of the US State & Local Government, Police State Rules, Feudalism, Rule by the Elites, Plutocracy)
- Hey if Property law and Common Law have been changed, tell us what law has replaced it
- If the US Constitution has been set aside in a Legal Action, if Congress no longer has War Powers, Legislative Powers, and Budget Powers, ... then tell us what replaced the US Constitution
- If there is a Law Authorizing a Huge Federal Government, Marriage of Federal Govt to the Biggest Corporation for Superpower Status, and for a Huge Superpower Military... then tell us what is law is and where it is to be found
Because I don't think there is a Legal Action to "Set Aside" our Property Law, Common Law, or Constitution.
What has replaced common law, property law and the constitution?
Admirality law.
Yeah have heard this for a long time.
Seems like an old kind of law, but the Roman Terms used in the USA are very old too. The Bicameral Government seems to stretch back possibly to Sumeria, 6,000 years ago. Common law comes from England.
I should take a new look at Admiralty Law. If power and Authority come down from the State or a ships captain, then it seems to have huge advantage in controlling everyone and everything. There is a link to Pennsylvania they say so maybe I can start there.
hoo boy!
And the beat goes on... La dee de dah dah
Gawd, where have heard that song, oh yeah, now I remember, the last FOMC meeting.
Who could have possibly predicted this ?, well everyone that doesn't watch FOX or ZNN. The longer this farce goes on the more Impossible it will become to change, and it's Impossible rught now !! without a major crash.
A pox be upon Netanyellen-hoo, and the whole of Kidedom!
This is just a courtesy delay due to Xi's State visit. Depends on what deal(s) are struck over the port and cigars.
If Xi cancels his trip at the last minute because of the unbelievably stoopid words that came out of the white house, then, when Obama does put sanctions on, it will look like he did because he was stood up.
What would happen if China puts tariffs on their exports (i.e. Christmas merchandise to Walmart)?
'Stupid words' from the W-H notwithstanding will not cancel Xi's State visit. The only thing that would do that is if the Fed raised rates. Why? Because China's economy domestically and overseas investments would crater and the domestic market is a mare's nest of 'private' sector beholding to state investments. There is little private investment in China (at a significant level) that is not funded or controlled by the State. Internal chaos. You have no understanding of the Chinese economy, its structure and interlocking nexus. The so-called 'shift' to the consumption economy is not taking place. All retail sectors are negative except for a small increase in jewelry (lol gold).
This 'Walmart' theme is risible. As an aside, I have never been to a 'Walmart' but from comments here I suspect it is a cultural experience.
Let's see what happens after the 'Visit'.
You are probably right about Xi's visit not being canceled; he's probably going on to the UN after.
Whether he kowtows to the Negro or beards him in his own den remains to be seen, although you and I will not hear about it.
If China's economy craters if the Fed raises rate, what happens to ours beside QE4?
Perhaps the Chinese were waiting for the Western economies to fuck things up the way they are now before the "shift?" ZH is fond of telling us about all those huge empty cities waiting for the first wave of peasants to be invited to join the Middle Kingdom's middle class.
I go to WalMart once month to buy insulin. The kind that cost $240 a vial at RiteAid, but with a $45 co-pay, is $25 at Walmart.
This thread is now page four so I suspect you will not read this.
I read so many disparaging comments about the customers at Walmart. I am so glad that it is not just trinkets and so on. I suspect that is where people who have little dosh, or are savvy shoppers go. Good for you that your medical necessities are cheaper there. Good for you and the store bringing an affordable price.
The shift to a 'consumer' driven economy is not taking place as directed. Chinese people do not trust locally produced items (though surprisingly, even those are not that available from trusted sources - all export). Hence the parallel trading fracas in HK. Can an American even conceive that buying baby formula that is safely manufactured need to cross a border? I know this is an apocryphal example but it is an exemplar of so many others.
China has released a dissident prior to the State visit and the Obama Administration has 'captured' a so-called 'corrupt official' of the PRC to be returned (even without any extradition treaty). These are the preliminaries.
Deals will be struck. I suspect first a human rights confab (nobody on either side cares) to soften up more important issues over the South China Seas (the US has lots of pressure from Southeast Asian nations who are mightily pissed-off. Next will be the cyber warfare issue and a number of other issues that are too sensitive to list here.
Let us wait and see.
Sacrificial Mutton.
ChairSatan Yellen should simply ask what Gartman would do; then do the opposite. Economy fixed, problem solved.
www.traderzoo.mobi
Yellen, what DSR (debt service ratio) tools are you using? Let's hope it's not your vibrator sex toy.
Metholodogy and data for DSR calculation - Bank for International ...
Cool deal getting a loan on a sports car, perfect time homies!
Negative interest rates are the only untried palliative.
Drive the long bond to zero and all others to negative.
When the few savers, who are left, are getting -2% in the money market accounts, they will be compelled to do something else.
Like Stocks?
Like gold?
Like cash - if cash withdrawals are still allowed?
Picture of Mr. Yellen =
< Oommpa Loompa from Willy Wonka's Chocolate Factory
> A "little person" on Dorothy's Yellow Brick Road to Oz
Picture of Mr. Yellen =
< Oommpa Loompa from Willy Wonka's Chocolate Factory
> A "little person" on Dorothy's Yellow Brick Road to Oz
Sorry about the inadvertent double-post. The NSA server in Utah must be on the glitch when archiving our comments and GPS coordinates. HI GUYS!!! I'M READY FOR HILLARY!
Translation:
Next Crash = Negative Rates + Bailouts + Arresting protestors to criminal bailouts + Soldiers on the Street + Bail-Ins + Terrorists Winning + Obama on Vacation + China Invading California.
Yes, but let's be clear the Chinese invasion will be permitted, authorized, funded, partly planned by US Bankers.
"Available Tools"
I have a couple of tools we the people could use in such case - rope and guillotine.
The problem we have is these tools at the fed.
that is way too kind; how about a vegetable peeler; slow and easy. Crucifixion, the Roman way would do quite nicely on the front lawn of the Obama Mansion.
Can someone please link in the Kate Davidson question to Yellen here, please?
Fuck yeah! Love your avatar. Can't find a link to the Kate ?? Sorry.
Janet Yellen has a pin up of John Law in her bedroom....
Who I am shocked, shocked I tell you. Saw that one coming months ago. All hype and no substance. With who knows, last count 18T in debt they can't afford the increase hitting the descretionary budget. No way, no how which is why they stopped even counting the debt. Criminals and Crooks are ruling this country.
She said Fed policymakers also want to see if further improvement in the labor market "will bolster our confidence that inflation will move back" to the Fed's annual 2% target over the medium term..
ROFLMAO - clueless.....
A little zero hedging to fix this well maybe not strikeout isn't allowed which ruins the whole thing as well as the virus scripts which are trying to run here.
I don’t fully expect that we’re going to be in a path of providing additional accommodation. But if the outlook were to change continue in a way that most of my colleagues and I do not expect, and we found ourselves with a weak economy that needed additional stimulus, we would look at all of our available tools. And that would be something that we would have already discussed today evaluate in that kind of context."
Tim Cook is really hoping ApplePay will be successful as QR smart tags and NFC phone transactions.
Apple Watch PARODY - The Amazing Apple Logo Watch!! - YouTube
why be a victim of NIRP when you can buy gold?
the only way we'll get out of this mess is if the gov/fed (the clowns who created it) butt out
There's a 100% chance the fed does negative rates. Now that they know they can get away with this scam, next step is outright stealing to get more wealth.
What do you think QE, ZIRP, REPOS, Reverse REPOS, CDO's and all the shadow banking is about? Theft
October should be eventful.
Wait, yogi, you're the second person here who mentioned "outright theft," in negaitve interest rates terms (h/t to D. Gartman).
What makes you think the Fed hasn't been stealing from everybody for decades already and they're running out of stiffs?
Next up, screwing government employee pensions. Can't wait for that show.
The new Yellen slogan: "Whatever it takes to take!"
Someone said earlier: "Congrats Janet Yellen.. I lost all faith in you and free markets."
Free markets haven't existed since the Federal Reserve was formed in 1913. A free market does not allow the manipulation of interest rates and the money supply. The Laisse Faire tenets of a true free market have been co-opted by the coercive policies of crony capitalism as practiced by the Keynesians in control of the world economies. Their day in the sun, however, is coming to an end.
"No Rate Normalization During My Lifetime"
The above statement is the only credible comment ever made by Bernanke.
Mr Yellen just provided the evidence.
in other words...we have no idea what we are doing, where we are going or whats going to happen
CONDOMS, How would that be for a new name for the P.P.T (Plunge Protection Team)? _JOHNLGALT
"Similar to the situation with income, the rising wealth share of the top 3 percent of families is mirrored by the declining share of wealth held by the bottom 90 percent." (2010-2013 the effect of QE & ZIRP)
---------------------
Yellen stated that this was not true today - see chart on page ten.
http://www.federalreserve.gov/pubs/bulletin/2014/pdf/scf14.pdf (PDF from 2010-2013 & that gap continues.
Credit as money is already under drain pressure. Charging negative rates on banker credit is a double tax. First it was taxed at hypothecation with fees and interest on the loan. Then it gets taxed again (negative rates) once it is stored as savings.
Labor does not have assets that grow in value in stock market. All they have is their labor energy stored as money, and this type of money is banker credit. So, labor and those on the lower rung of ladder, are going to take it in the rear.
There is a lot of money sitting on the sidelines, most liekly the are trying to shake that loose. However, money sitting on sidelines was won by finance in predatory games.
If you are going to tax somebody, then just target the damn tax instead of screwing over laboring producers.
Yes, the collective IQ of the U.S. is very low.
If the money supply consisted of a different kind of money (floating), then demurrage argument can be made.
I store the proceeds of my labour through the hole in the bottom of my canoe.
Is that thing human?
No. It's not human. Let me know if you ever find out what it is though...
already have neg (real) rates. as per usual
need to get rid of physical cash and go all digital to take it to zio nirvana
who predicted frbny would buy mbs in last drama....paying outrageous prices to the sellers (nyc banks)? HOLIDAY bonus pool got real fluffy on that
the money junkies have plenty of tricks left in their bag - neg rates just one of em
It's been hilarious...listening to the talking heads predicting the Fed's interest rate increase coming this fall, and last spring, and last winter, and last fall, and last summer, etc, etc etc...
Negative interest rates ...hmmm, I bet CNBC never saw that one coming.
Does this mean the NYFRB will impose a haircut on bank deposits?????????
That would be, in fact, the only way to initiate NIRP in a valid and meaningful way.
If so there will be a bank holiday soon.
To realize the FRBNY has only been around for 100+- years and they have printed 14 trillion dollars on to their balance sheet. Cleaver bunch.
The problem with a haircut on bank deposits is that 90% of people are living payday to payday without a dime left over and would go into default on at least some of their obligations. Oh, wait... the banksters don't give a damn about the 90%. What was I thinking? Silly me.
They would have to exempt the 1st $50,000.
When asked about the ability to never exit ZIRP, Yellen responded: It's not in my central forecast but it's possible.
Wow.
Just wow.
I write about this a good bit at crackerjack finance.
We're just one false flag from world government and one bank created economic crash fron a world bank and click currency.
I think Fed was worried that a rate increase would have triggered another wave of devaluation overseas