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Fed To Main Street: Screw You - Wall Street Matters More

Tyler Durden's picture




 

Via Mark St.Cyr,

In a world where the Fed articulates its reasoning for any policy decisions as “data dependent,” one has to now ask – exactly whose data? For if one originally assumed “data dependent” meant U.S. data – one would now be incontrovertibly proven wrong.

The parlor game projections as to whether or not the Fed would, or, would not raise rates by many of the so-called “smart crowd” on Wall Street was often hysterical. And the word hysterical could be used twice in the same sentence. Once, as to describe the sheer hysterical begging by those whose salary is based (as well as bonuses) solely on whether or not the Fed. give-ith or the Fed. take-ith away their “punch-bowl.” And second; for the sheer comedic value in that begging. I guess when you’re charging 2 and 20 – you gotta do, what’cha gotta do. And If you’re not begging clients against redemptions – might as well beg the Fed. for it.

There were quite a few discrepancies made manifest in the Fed’s decision not to begin the process of monetary normalization with its standing pat of not lifting interest rates off the zero bound by 25 measly basis points. Even if it was seen as being only a symbolic start in effect.

One of those discrepancies is this: What happened to all that “great” data we’re forced to ascribe to when we turn to most financial media outlets? Apparently the “data” the Fed. watches is not the same which we’re told. For if unemployment is statistically within range of what is considered full employment (e.g., 5.1 per the latest report) how can the economy be so shaky as to delay one of the most anticipated hikes in years?

One can add to that list another data point which seems apparent of no consequence for consideration: Not only has there been a tripling from the “generational low” coined by many on Wall Street (i.e., the low of 2008). Rather, that tripling has resulted in the markets being well above their previous life time highs that occurred immediately before the crisis. And yet, even with a 1000 point panic induced sell off which it all but erased in a week, they still not only hover well above those previous heights, they remain within the proximity of their “never before seen in the history of the market” highs!

One would think the Eccles building would have its own banner hanging proclaiming “Mission Accomplished.” Yet, we’re to infer by the latest policy act those data points must be irrelevant. For they chose inaction – as action.

Remember when just a mere few months ago Wall Street’s next in rotation fund managers, economists, chief investment officers, et al nearly stampeded over one another in bullish form as to get to a microphone, keyboard, or camera and profess “Earnings are beating expectations! 60% or _________(fill in your own and be bold!) are beating as compared to missing. The economy has turned a corner. No fear of a rate hike should be expressed. As a matter of fact – a hike would be even more bullish so buy, buy, buy!”

It seems that didn’t last long for it’s now been turned about so quickly it would make a merry-go-round blush. i.e., “Oh my heavens! A rate hike in this poor climate would be disastrous! Please, please, please!! Someone do something! My bonus! My house in the Hampton’s!! My cocktail party invites!!! Oh the humanity!!!!

Then there’s the 800 pound panda bear in the room: China.

It seems with all its fantastic (i.e., made up) data points coming out of the politburo, is “data” made for slinging right down the Fed’s alley. In other words; goalseeked data fueled by the utilization of the Fed’s QE programs that are now falling apart since its ending has created a free fall in their stock markets. It seems this is just the “emergency” the Ph.D’s ordered as to brush aside any relevant data States side, and keep the free money spigot open indefinitely.

Not only this; one can’t help being left slack-jawed witnessing that the Fed has just publicly inserted itself into geopolitics via its monetary policy as de facto first responder/savior of all economies. Even if it puts U.S. savers, retirees, along with its economy in the back seat. I wonder how the Bank of International Settlements feels about this latest move? But I digress.

Some may be thinking “Well it’s not like they didn’t do similar during the 2008 crisis. So what’s the big deal?” The big deal is exactly that: crisis. As in whose? Theirs? Ours? Everyone’s? For there are many a crises right here still not being addressed. Let it not be lost on anyone: Ms. Yellen in her press conference said she was “impressed” with the strength of the U.S. economy. However, it was the newest data from “international developments” that now seems to be more compelling to the Fed. than any lingering crises that are still churning within our own economy based on their maniacal grip to a zero bound rate policy. Crises such as:

If you’re a person trying to live off what amounts to a meager savings here in the U.S. – you’re having a crisis.

 

If you’re someone relying on a private pension to remain solvent, as the manager of one searches in futility to find lower risk yield – you’re in a crisis.

 

If you’re working, running, or own a business that’s in direct competition with a company being kept alive via “free money” policies attainable only by them – you’re in crisis.

 

If you’re an entrepreneur and are seeking needed banking services such as loans or other business products – you’re in crisis.

 

And if you have any sizable working capital within a bank structure? You just found out you’re in pre-crisis mode. Why?

 

Because; for the first time ever the Fed. publicly stated (via their Dots chart) negative, repeat, neg-a-tive interest rates are being openly considered as a viable tactic of monetary policy. i.e., The banks will legally bleed your account like a parasitic leach and will be looked upon as giving you the privilege for them to do it.

However, all this data seems to be falling on deaf ears. Yet miraculously when Wall Street speaks – the Fed not only listens – they deliver! And now with “international developments” interjected as a new data consideration – it’s a free money ride made to order.

Sure, China’s stock market is currently experiencing major turbulence. All one needs to do is look at a price chart. Yet, China continues to report that GDP growth is somewhere around 7% give or take. Is that “data” suspect in the eyes of the Fed? And if so – why so? Is deciphering China’s imperial stated GDP data now an additional “mandate” that’s up to the Fed. as to calculate and react accordingly? Wall Street thinks so. And demanding that so too does the Fed.

Surely a stock market bubble that’s popped within an economy growing at 7% is precarious. However: why does China need the intervention of the Federal Reserve as to not begin its own nation’s monetary policy towards normalization? For if China is growing at a rate far above our own – aren’t they in a better position to handle their own issues? Wall Street has been telling us for years “China is the economy that will lead us out of this economic malaise.” What happened to all that “great” data? All gone in mere months?

And there lies the open question. Exactly what “data” is the Fed watching which they’re clearly not revealing? Maybe that “data” are their phones and in-boxes being hammered from Wall Street demands as to act by not acting? For what little credibility in transparency and foreknowledge they’ve professed to be executing has now not only been shattered – it’s been out-rightly laughed out of the markets. Unless: that laughter is now coming from none other than those that now know “data” means “what they say it is – or else!”

Yes, Wall Street did put on quite the horse and pony show in stunningly quick order as to demand a stay the course action of no rate increases. However, if one wants to be cynical (if not down right conspiratorial) all one needs to contemplate are the following “data” point theories.

Imagine pulling the plug on the HFT imaginary liquidity machines at precisely the right time, and for about the right coinciding duration (Oh let’s say 10% or so should be enough) and you can scare the Fed. to stand pat when needed. Or, you can increase the duration (Oh let’s say 20% or so) and you’ll probably have an even better shot at triggering another round of QE. It’s a manipulators dream come true when viewed from this light. Is this a “data” point that now needs to be considered?

Or better yet imagine another to help coincide with their new “international developments” data concerns.

Let’s imagine right before the Fed dares to show any backbone or display any credible signs of actually beginning the process as to normalize interest rates. You (let’s pretend) may be in charge of an economy that will suffer at the hands of such a process. You then just out-of-the-blue send war ships right off the U.S. coast. Then, follow it up by sending ground troops, heavy arms, and rattle sabers in a menacing fashion right where the U.S. will declare your actions as hostile or provocative. e.g, Syria.

Chances are that too has a good chance of interjecting global concerns into Fed decisions. After all – all one needs for empirical evidence as to whether or not such a thing is plausible or probable is to look at what took place a mere 24 hours after the Fed’s decision on Friday.

In an about-face only rivaled by the Fed’s – Russia and the U.S. conveniently embraced diplomatic talks in Syria. (For more clarity on this reference here’s an article I penned “Could An Interest Rate Hike Be The Last Straw Before War?”)

As for China? Well I would imagine it didn’t hurt that the Fed stood pat, for it could have put far more pressure on the dinner conversations as China’s leader visits Washington next week. After all, with what the Fed. decision resulted in as well as how it was explained. The only logical conclusion one can come away with is these seem to be the only “data” points that either mattered or were taken as important considerations.

For all the rest like savers, retirees or the overall U.S. economy? It seems they’re expendable. For as far as those previously outlined crises here in the U.S., not only are they not going away, they may in fact be exacerbated. It seems many on Friday took a look at what the Fed proclaimed as “data” and decided we’re in a whole lot more trouble than the Fed understands – or can deal with.

*  *   *

Still not convinced?

 

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Sun, 09/20/2015 - 12:09 | 6571422 JustObserving
JustObserving's picture
Fed To Main Street: Screw You

That is nothing new.  That has been the official policy for a few decades.

A troika of the military, Wall Street and spooks run the land of the free.

Who cares about Main Street except pandering politicians before elections?

Who rules America? 

The secret collaboration of the military, the intelligence and national security agencies, and gigantic corporations in the systematic and illegal surveillance of the American people reveals the true wielders of power in the United States. Telecommunications giants such as AT&T, Verizon and Sprint, and Internet companies such as Google, Microsoft, Facebook and Twitter, provide the military and the FBI and CIA with access to data on hundreds of millions of people that these state agencies have no legal right to possess.

Congress and both of the major political parties serve as rubber stamps for the confluence of the military, the intelligence apparatus and Wall Street that really runs the country. The so-called “Fourth Estate”—the mass media—functions shamelessly as an arm of this ruling troika.

https://www.wsws.org/en/articles/2013/06/10/pers-j10.html

The Fed Won: America's 0.1% Are Now Wealthier Than The Bottom 90%

http://www.zerohedge.com/news/2014-11-11/fed-won-americas-01-are-now-wea...

Sun, 09/20/2015 - 12:35 | 6571498 Usurious
Usurious's picture

USURY redistributes wealth from the bottom to the top......

Sun, 09/20/2015 - 12:56 | 6571551 BoNeSxxx
BoNeSxxx's picture

' I wonder how the Bank of International Settlements feels about this latest move?'

I am pretty sure they are aboard... The tail does not wag the dog

Sun, 09/20/2015 - 12:11 | 6571439 Atomizer
Sun, 09/20/2015 - 12:13 | 6571441 45North1
45North1's picture

The FED doesn't even have a conflict of interest, that would require a soul and a sense of ethics.  It looks after its Banker owners while paying lip service to Main Street to instill numbness.

This too will pass.

Rope and Chains......

 

Sun, 09/20/2015 - 12:14 | 6571443 SamEyeAm
SamEyeAm's picture

 

 

 

 

Zerohedge! How to beat a dead fucking horse deader.

 

 

 

Sun, 09/20/2015 - 12:55 | 6571546 Dr. Engali
Dr. Engali's picture

Yet you chose to click and comment anyway. Thanks for your contribution.

Sun, 09/20/2015 - 18:23 | 6572473 bentaxle
bentaxle's picture

You're a woman.

Sun, 09/20/2015 - 12:17 | 6571449 I Write Code
I Write Code's picture

Mark, me laddy, but don't you know that ZIRP is all for the man in the main street, free money for banksters means more jobs for gardeners and chauffeurs like you and me, and propping up Wall Street is a boost to our animal spirits.

Sun, 09/20/2015 - 16:36 | 6572188 o r c k
o r c k's picture

Trickle down, pickle up.

Sun, 09/20/2015 - 12:18 | 6571453 847328_3527
847328_3527's picture

Joe the Plumber will need lots more lube.

Sun, 09/20/2015 - 13:21 | 6571455 Dr. Engali
Dr. Engali's picture

Like the rest of us the fed knows all the data is complete bullshit. The fed knows it's in a box and they're doing all they can to hold on to the status quo. The outcome however is unavoidable. It's only a matter of when.

Sun, 09/20/2015 - 12:20 | 6571456 Spitzer
Spitzer's picture

OT

Irwin Schiff has been diagnosed with lung cancer. He has a year or so left on his sentance. The doctor says he has a year to live. I wonder if he will get the goodwill treatment that the lockerbie bomber..

Sun, 09/20/2015 - 12:21 | 6571460 Hope Copy
Hope Copy's picture

It is all ABOUT SELLING DEBT!

Sun, 09/20/2015 - 12:35 | 6571500 bid the soldier...
bid the soldiers shoot's picture

 

BANKSTER LIFESTYLES MATTER

Sun, 09/20/2015 - 12:36 | 6571502 MASTER OF UNIVERSE
MASTER OF UNIVERSE's picture

Bottom line is that once a junkie, always a junkie. Monetary heroin makes the world go round & round until the heroin runs dry. When the heroin runs dry, the junkies switch over to methadone maintenance, and cheap red wine, plus chocolate bars, and cigarettes!

 

Can you envision Lloyd Blankfein lying in the gutter barfing up cheap red wine, and chocolate bars, while he panhandles for enough fiat to buy some smokes, and another bottle of cheap red wine?

Sun, 09/20/2015 - 12:36 | 6571503 numbers
numbers's picture

This guy is fucking clueless. Anybody who thinks higher rates will help main street is delusional. I'm sure that higher rates will help the Fed meet its 2% inflation target. Right. I think there was a Fed Chairman who proved what higher rates do to inflation and economic activity. Yes, I believe his name was Paul Volcker.

As for the 5.1% UE rate. Anybody who believes that is the real UE is clueless and has never even heard of the LFPR. We have an LFPR that was last seen in the 1970s but we are supposed to believe clowns like St. Cyr when he says the UE is really 5.1%

Yup, higher rates will have the average consumer stampeding through bank doors to borrow money to buy homes, cars, appliances, everythng they couldn't afford to buy with rates at zero. Yeah, right.

Sun, 09/20/2015 - 13:45 | 6571694 RaceToTheBottom
RaceToTheBottom's picture

Agree with your point about unemployment.

But I could not quite get your point about the benefits of having stupid people running into showrooms and buying cars and also houses they have absolutely no chance of affording in a non manipulated interest rate environment...

Maybe expand on that so I can understand?

Sun, 09/20/2015 - 14:37 | 6571864 chisler
chisler's picture

I believe his comment was TIC.

Sun, 09/20/2015 - 15:38 | 6572035 RaceToTheBottom
RaceToTheBottom's picture

I hate tics, they get underneath my skin and never leave....

Sun, 09/20/2015 - 12:39 | 6571507 VWAndy
VWAndy's picture

Expect more of the same. The world has apperently been run this way for a very long time. Whoever is running this show is doing so from above the governments in the pecking order.

 The multi generational continuity is very impressive. They have their shit together.

Sun, 09/20/2015 - 12:42 | 6571513 anticultist
anticultist's picture

 

long essay putting together many themes I have been preaching for years, sort of communist slave post mortem.

 

100% planned genocide. Create the problem to bring their solution. >>>> The part they forgot, they will not be able to keep a paid house if they didnt store many years of property tax, in gold. That is investing, it is now to purchase the right to exist in satanism.

<<<<

Zero interest rates equals deflation. It basically means that no money borrowed can produce a productive result. No lawful enterprise can compete with satanism, district alphabet revolving door racketeering, obamacare and slave payroll tax.  While printing QE multiplied food and rent costs, doubled the pig harvest with a parallel deflation. Satanomics is depopulation. The reason is, all debt printed extracts the interest, the interest was never printed with the debt. It came out of historical stored white trash labor and ran its course, depleted. The primary irs mechanism is forcing white trash labor to consume 401k taxed, when their jobs are sent to china. This is the veil of cultural marxist pig wars, like adding "male" to civil war unconstitutional statute 14th amendment, to plan the tax and terror devide and conqure cia slave harvest, feminism. Could the interest just be printed, yes but they did the opposite, 2009 consumer finance reform act, increased consumer interest. Funny. Dont worry the centrally planned communist economy is decided for you, you can now have low interest auto loan and non-dischargeable student loan white slave debt. Nanny state genocided works good like that. But if you have paid cars you can collateralize them for low interest loans. Try to find something productive to earn a return on capital with that collateral? Printing the interest is equivalent in application to closing irs.  The interest can only be created by labor, only labor creates money not financialization ponzie.  Financialization ponzie only redistributes money out of labor to the district satanist revolving door, satanomics is the opposite of life. Life is creation, obamacide is death. You then have to create a 1 in 100 white labor nemisis diversiion to redistribute all years of all generations of white trash wealth to the revolving door district corporation .0001% overlords. Except instead they rapidly increased the demands on the welfare state to give irs plenty of business, study the history of obama's co-conspirators cloward-pivon, columbia univesity. Cloward-Pivon. Again they did the opposite of constitutional LAW, taxed the means of production. Production is not service economy, service economy malinvestment waste consumes production and will not exist without a large wealthy class, who is largely harvested. Wealthy is well over 400k a year because that is 200k after tax and that is 40k purchasing power basis 1980 dollar value. Try running payroll taxed obamacare employees off $40k a year, pigs to the slaughter. They should have learned counting. If the stocks crash to Oct 9 I will move some from bond funds to stocks, and if they crash  through Jan I will some from money markets to stock funds. The reason stocks can surge one last time in 2017 is the failure of bonds, that is all, it is still the same depopulation. Anyway investing is tangibles, the means of production, the means of continuing ones own future income. Like that could be paying for a house, to have a domicile from which to get to work, to rest in between. Investing could be an extended service policy to make sure the car gets you to work. To work to death. That is now investing in the age of satanism. Yeah if catching a stock surge in 2017 with levereaged etf helps pay the house, their may still be a game, its still speculation. Life is production, creation, work. Opposite of financial ponzie slave harvest. The part they forgot, they will not be able to keep a paid house if they didnt store many years of property tax, in gold. That is investing, it is now to purchase the right to exist in satanism.

 

 

Sun, 09/20/2015 - 20:04 | 6572759 CapnJackDaniel
CapnJackDaniel's picture

Which brings us to another point folks: "Know your dosages." 

Sun, 09/20/2015 - 12:50 | 6571515 tarabel
tarabel's picture

 

 

The Fed has gone full John Roberts with this latest shenanigan, cramming its own credibility into the wood chipper in order to serve the vested interests of forces other than its own alleged constituents.

The problem with this is that fiat currencies rest ultimately upon the consent of the currency user to accept it as a symbol of value. Increasing numbers of otherwise inattentive individuals are being given reasons to reconsider their absolute fealty to the Fed through its public admissions of haplessness in a time of crisis and its overt willingness to sacrifice the people in whose name they supposedly exercise their responsibilities.

This incident has done a tremendous amount of reputational damage to the Fed and I suspect that this factor is just now dawning on them post-meeting. Look for a surge in some nice, glowing articles on how great the Fed is.

Sun, 09/20/2015 - 13:15 | 6571603 GooseShtepping Moron
GooseShtepping Moron's picture

I agree completely with this comment. The just-elapsed meeting was the Fed's last chance to prevent itself from careening into irrelevance. They either had to raise rates now or admit that QE/ZIRP was never anything more than a parade float, and they chose the latter.

It's time to simply tune out and ignore the Fed. No more walking on eggshells wondering what the next FOMC meeting will bring. Ordinary folks have waited long enough; now they'll just have to get on with their lives without help from the establishment. It's not worth paying attention to anymore.

Sun, 09/20/2015 - 12:42 | 6571516 besnook
besnook's picture

it has always been about saving the banks at the expense of the people. the people are the real lenders of last resort only the money is usually taken and not to be paid back.

austerity economics is a great euphemism for depression.

Sun, 09/20/2015 - 12:52 | 6571535 rrrr
rrrr's picture

These bankers are not stupid. They are extremely greedy, very clever, and don't care about anyone but themselves.

Sun, 09/20/2015 - 12:56 | 6571547 polo007
polo007's picture

http://news.goldseek.com/GoldSeek/1442494200.php

Try making up for a past mistake and make another? That’s playing from behind, if you will, and it’s not out of the question if you know the Fed’s history:

1. Not a single post-war recession has been predicted by the Fed a year in advance, according to former U.S. Treasury Secretary Lawrence Summers; and

2. Neither of the last three recessions were recognized until they were already under way.

Incompetent or ulterior motives for policy?

Regardless, here we are with expectations ramped up for a rate hike, as the rest of the world is easing.

What’s notable for investors is that since the 2008 crash, we have not been able to achieve new market highs without central bank stimulus. Full stop.

But it’s only a quarter point…

According to a study released by McKinsey Global Institute in February of this year, global debt has increased by $57 trillion USD since 2008. With such an enormous amount liquidity in the system (M1 money supply near lifetime highs) financial markets are increasingly becoming nothing more than a currency game; and the currency game is a relative one. I print, you print, they print, but who’s printing more and where is capital flowing in and out of? Within this context, a quarter-point rate hike would be much more than simply symbolic.

As we have seen since late 2012, the rise in the U.S. dollar has had major implications on global markets, whether it be currencies, commodities or interest rates. A rate hike would equate to further USD strength and will accelerate the deflationary spiral we have witnessed over the past few years. Raising rates into a slowdown could also place the U.S. firmly on a path to recession in 2016.

Conversely, no rate increase does not meet the expectations set by the Fed and will re-inflate commodities in the immediate term. Arguably, it pulls forward the possibility of QE4 as well.

So it seems the Fed finds itself in a self-imposed conundrum here: make a policy error and raise into a slowdown, don’t raise and openly recognize growth is slowing. Which brings me back to my previous point: since 2008, no new market highs have been achieved without central bank stimulus.

As always, government remains the No. 1 risk to financial markets, and I will change my views as the facts change.

“The Federal Reserve is not currently forecasting a recession.” – Ben Bernanke (January 2008)

Sun, 09/20/2015 - 14:26 | 6571837 moneybots
moneybots's picture

"As we have seen since late 2012, the rise in the U.S. dollar has had major implications on global markets, whether it be currencies, commodities or interest rates. A rate hike would equate to further USD strength and will accelerate the deflationary spiral we have witnessed over the past few years. Raising rates into a slowdown could also place the U.S. firmly on a path to recession in 2016."

 

Spirals accelerate.  It is what they do.  Upward pressure or downward pressure builds.  It then forces the immovable object out of its way.  The FED is trying to fight gravity. 

Sun, 09/20/2015 - 13:01 | 6571564 logicalman
logicalman's picture

Chinas claimed 7% per year leads to doubling in 10 years - Someone's going to have to start buying a lot more crap they don't need to keep that going!

 

 

 

Sun, 09/20/2015 - 13:16 | 6571606 Archive_file
Archive_file's picture

Most people seem shocked that the Fed couldn't raise rates a paltry .25%. Could it be that rather than a weak economy forcing their hand, it's the amount of money they printed that is the problem? .25% spread over trillions is quite a bit.

Sun, 09/20/2015 - 13:35 | 6571656 RaceToTheBottom
RaceToTheBottom's picture

It is people have realised that:

 

  • The economy is the FED.  There is no economy without the FED.
  • The line that was given before of the FED assisting the economy has been just that, A line without truth.

Yes .25% over Trillions is a lot, and having spent trillions and getting nothing for it makes people pretty pissed, especially when they realize that interest rates can never rise or if they do, everything falls apart.

People might just realize that either way, they are fucked.  And the people the FED works for and helped are not.

Sun, 09/20/2015 - 14:17 | 6571747 Archive_file
Archive_file's picture

I live in my van in San Francisco and deliver food on my scooter (literally). I love to follow the market and will enjoy a nice helping of schadenfreude when the Chinese market opens tonight and the American one tomorrow. It just goes from bad to worse. What really scares me is going into the dark offices to deliver food at the TransAmerica building with banks of glowing computer screens manned by 22 year old Ivy League graduates who can't even shave.

Sun, 09/20/2015 - 14:11 | 6571610 Dre4dwolf
Dre4dwolf's picture

probably less than 100,000 people benefit from wall - street in any meaningful way.

Sun, 09/20/2015 - 13:26 | 6571635 Chuck Knoblauch
Chuck Knoblauch's picture

Pray in the blood of The Christ to humble every Board member before the feet of His Son.

The power of prayer is power.

Sun, 09/20/2015 - 13:29 | 6571643 RaceToTheBottom
RaceToTheBottom's picture

The FED is killing price discovery, and therefore killing the american dream.

Price discovery and its deployment vehicle, a real marketplace and the laws that govern it have always been why America is great.  And the FED has killed it.  

Even if Inflation is hidden or put off for a few years, the special sauce has been removed,

Sun, 09/20/2015 - 13:31 | 6571648 Lumberjack
Lumberjack's picture

Meet the (soon to be) next Chaiman of the Boston Federal Reserve. 

 

http://www.bostonmagazine.com/news/article/2015/05/21/john-fish-olympics/

 

This guy has screwed over a ton of contractors in the Boston region and has made his fortune on Big Corporate Welfare.

 

https://www.bostonfed.org/about/governance/directors.htm

Sun, 09/20/2015 - 13:49 | 6571706 earleflorida
earleflorida's picture

and go on?

 whatever?

china sells moar worthless US paper to shore-up yaun?

china turns on the printer, and goes 'bernank'?

ASEAN countries are split on civil-wars created by USSA 'beggar-thy-neighbor' carry-trade raping?

if wages havn't gone no where in thy 'la-la-land-of-the-free'... wtf, do you think they've done for the 'let's give capitalism a- go'? ASEAN style assfucked peasants?

ASEAN will jump the shark into the 'panda's arm's', with a devalued yuan making it easier to transition without a FX fucking with their exported 'three-penny-opera' taking the 'vig'?

china just keeps on printing til yuan is perhaps 8-9 to tha dalla and says good-bye sdr?

you're america's problem child now...?

 

Sun, 09/20/2015 - 16:43 | 6572204 o r c k
o r c k's picture

Stop insulting Florida.

Sun, 09/20/2015 - 14:14 | 6571793 moneybots
moneybots's picture
"Fed To Main Street: Screw You - Wall Street Matters More"

 

Goldman Sachs is a bank and the FED is owned by banks, so banks are all that matters to the FED.  All the rest is for show.

Sun, 09/20/2015 - 14:43 | 6571879 Chuck Knoblauch
Chuck Knoblauch's picture
It’s Official: The Typical Male US Worker Earned Less in 2014 than in 1973

 

http://govtslaves.info/its-official-the-typical-male-us-worker-earned-le...

Sun, 09/20/2015 - 16:06 | 6572111 Rigger
Rigger's picture

Yeah, but did the guy in 1973 get to buy an iphone?

Sun, 09/20/2015 - 15:18 | 6571981 polo007
polo007's picture

http://www.bloomberg.com/news/articles/2015-09-20/fed-officials-still-se...

Fed Officials Still See 2015 Liftoff Despite September Delay

By Jeanna Smialek and Sarah McGregor

September 20, 2015 — 1:23 PM EDT

- Williams: September FOMC policy decision was a `close call'

- Jobless rate expected to keep falling, inflation to rebound

Federal Reserve officials argued that an interest-rate increase is still warranted this year, laying out the case for liftoff in remarks over the weekend that counter bets by traders that the central bank will stay on hold until 2016.

Three policy makers separately explained their rationale for enacting a rate increase at one of the Fed’s two remaining meetings of 2015, citing declines in unemployment and other gains in the U.S. economy that should outweigh headwinds from slower growth abroad and turbulent financial markets.

San Francisco Fed President John Williams, a policy centrist who has worked closely with Chair Janet Yellen, said Sunday that “in my mind, it was a close call” to delay a rate rise at last week’s Federal Open Market Committee meeting.

Williams’ comments on Fox News Channel’s “Sunday Morning Futures with Maria Bartiromo” echoed remarks he made the day before, and chimed with the reasoning of St. Louis Fed President James Bullard and Richmond Fed President Jeffrey Lacker. Both weighed in on Saturday over the FOMC’s vote to leave rates near zero.

Mixed Messages

The central bank’s decision, and the way its deliberations were framed by Yellen in a post-meeting press conference, were interpreted by many Fed watchers as a sign that the central bank might not raise rates this year. In holding rates steady, the Fed noted international uncertainties and subdued inflation.

Traders say it’s more likely than not that the Fed will postpone liftoff until 2016, based on the current pricing of federal funds futures contracts.

Investors will hear directly from Yellen again on Sept. 24 when she delivers a speech in Amherst, Massachusetts.

Williams said on Saturday in Armonk, New York, that “I view the next appropriate step as gradually raising interest rates, most likely starting sometime later this year.”

He is in the majority. Quarterly Fed forecasts, which were updated for last week’s FOMC, showed that 13 of 17 policy makers still expect rates to increase in 2015. The projections, displayed in a so-called dot plot, don’t identify the forecasts of individual policy makers and Yellen declined last week to say which dot belonged to her.

The committee gathers next on October 27-28 and December 15-16. Its benchmark interest rate has been kept near zero since 2008 to spur hiring and investment amid the worst recession since the Great Depression. The Fed last raised rates in 2006.

2016 Liftoff

While Williams voted last week to leave rates near zero, Bullard, who doesn’t vote on policy until next year, argued for an increase at the meeting, he said Saturday during a speech in Nashville, Tennessee.

Holding rates steady yet again seems to have “created rather than reduced global macroeconomic uncertainty,” he said.

The FOMC’s goals have “essentially been met, but the committee’s policy settings remain stuck in emergency mode,” Bullard said.

The Fed’s twin objectives for its monetary policy are to achieve maximum employment and stable inflation, which it targets at 2 percent. The unemployment rate dipped to 5.1 percent in August. The Fed’s preferred gauge of price pressures rose 0.3 percent in the 12 months through July and has been under two percent for more than three years.

Williams said he expects the U.S. to reach full employment by the end of this year or early in 2016.

Upward Pressure

“Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term,” the committee said in its post-meeting statement.

Even with a small interest-rate increase, policy will remain highly accommodative and continue to place upward pressure on inflation, Bullard said Saturday. Williams said that while a strong dollar and the fall in oil prices over the past year have tamped down price pressures, those factors “should prove transitory.” He expects that inflation will move toward 2 percent in the next two years.

Lacker, an anti-inflation hawk, dissented in favor of higher interest rates on Thursday. He said Saturday that the Fed’s failure to tighten had raised the risk of “adverse outcomes.”

“An increase in our interest rate target is needed, given current economic conditions and the medium-term outlook,” Lacker said in a statement posted on his regional bank’s website. Lacker was the sole dissenter to the Fed’s decision.

‘Close Call’

Both Williams and Bullard said October is a possibility for an rate increase, even though there will be a relatively limited amount of new economic data -- including one jobs report and one Consumer Price Index reading -- between now and then.

“There is not a lot of data,” Bullard told reporters. “On the other hand, it was a close call at this meeting.” The Fed is “ready to go” in October if conditions warrant, he said.

Although traders are leaning against a Fed move for now, if markets don’t properly anticipate a rate increase when it arrives, “that doesn’t bother me,” Williams told reporters.

He said in his Fox News interview on Sunday that the Fed could stage a press briefing after its meeting next month if it decided to act. Yellen, who has said a rate decision is possible at any meeting, is not scheduled to hold a press conference until the December FOMC.

Sun, 09/20/2015 - 15:29 | 6572012 Last of the Mid...
Last of the Middle Class's picture

Main street has been tapped out for years now. Rate increase doesn't mean shit to them, couldn't buy anything anyway. Waaay too may people on public dole, government jobs, free ishit. The telling is oil. The commodity EVERY one has to have. You want to stimulate the economy stay out of controlling commodities Mr. Fed. 

Sun, 09/20/2015 - 17:16 | 6572150 earleflorida
earleflorida's picture

the saudi's wanted control of 'all' petro in the 80's. their only compeditor were those damn soviets.

1979 was the year of 'inflamed islam' throughout the ME. Iran Revolution, Iraq/Iran war [~ 10 yrs] supported covertly by the US And UK,... with sunni/shiite actually fighting for the life of 'Islam`s' procreation since the Ottoman Empire's 'Sultan of the Calphate' was relegated to histories trash-bin by Ataturk.

Turkey was now but a parcel of the whole [as syria will be if assad falls?] with the prized Levant a parcel  of US petro-hegemony [?], that had been hijacked [divide and conquer/ secularism] long ago by the French/ British [later years involving American's] via 'Capitulations'.

Note, that the saudi's didn't want soviet competition, but they also knew that america was after the satillite states awash in oil/gas that the sovit empire would lose after their dissovlment in dec/1991. the fact that the USA could now bypass the arabs and the entire ME for their energy was becoming a reality.

think about pak's atomic bomb 1998 and a nuclear war with india in 1999 and how the saudi's made sure the ussa dreams would falter.

and as for '911'? we'll, with mossad and saudi's intel [arab's`cia] teaming up it was a two-fer! just as the ussa was hoping for? always looking the other way so as to get to 'minimum-damage'  control?!? this would finally destroy the ME with USSA trained jihadist bringing the stone-age [minus that nasty 'modernization paradox?] back in vogue by arab wahhabi's, yet, ironically loved by the wealthy sheikhs who spend their wealth in london, paris and new york, etel.. think OBL's original thesis? the everyday muslim is fed-up with the hypocracy and the religous police. Mecca and Medina have been turned into a 'Sodom and Gomorrah' as has 'Vatican City'!!!

now, back to the Russian's having their GDP growth via energy revenues being cut in half by the Saudi's? Saudi's King visits USSA for what? Saudi's King to visit Russia for what? with China's Xi talkiing to Obama about what? Question:[?] When does King Salmon visit Xi in china to talk about what? hmmm...

Turkey gets all their energy from Russia and Iran, and if Erdogan isn't careful the military will pull an old-fashion military Ataturk' coup! Or else there will be a civl-war. Period!!! 

Note2: with both Iran and those testy, fair-weather borderline psychopaths`Saudi's ,.. both willing gladly to accept 'the-winning-side', China's yuan currency as payment witout the 'Carry-Trade' cutting out the middle-man! just whatever can the USSA do about it?  accept to start a Nuclear War???

honestly,... it ain't out of the question anymoar!

http://en.wikipedia.org/wiki/1980s_oil_glut#Impact

http://en.wikipedia.org/wiki/Capitulations_of_the_Ottoman_Empire#Abolition

http://en.wikipedia.org/wiki/Richard_Barlow   

Sun, 09/20/2015 - 15:45 | 6572048 zanzen
zanzen's picture

Any one who doesn't realize that the American political and economic elite are no longer Americans just isn't paying attention. They are "wealthycans" and the butt boys of "wealthycans. Their allegiance is to an international class of predators who wish control all people and all wealth. This is self evident by their actions and their distain for "populist" and "chauvinist" Americans who wish to look out for the interests of everyday American citizens. Their new hero is the "internationalist" Catholic Pope who wants America over run with 3rd world immigrants.

Sun, 09/20/2015 - 17:22 | 6572320 polo007
polo007's picture

http://www.reuters.com/article/2015/09/19/us-usa-fed-idUSKCN0RJ0VH20150919

A divided Fed pits world's woes against domestic growth

NASHVILLE, Tenn | By Howard Schneider and Jonathan Spicer

Federal Reserve policymakers appeared deeply divided on Saturday over how seriously problems in the world economy will effect the U.S., a fracture that may be difficult for Fed Chair Janet Yellen to mend as she guides the central bank's debate over whether to hike interest rates.

Though last week's decision to again delay an interest rate increase was near-unanimous, drawing only one dissent, St. Louis Fed President James Bullard called the session "pressure-packed" as members debated whether global uncertainty or the continued strength of the U.S. economy deserved more attention.

In the end the committee felt that tepid global demand, a possible weakening of inflation measures, and recent market volatility warranted waiting to see how that might impact the U.S.

Bullard, who does not have a vote this year on the Fed's main policy-setting committee, said he would have joined Richmond Fed President Jeffrey Lacker's dissent, and worried the central bank had paid too much attention to recent financial market gyrations.

Markets sold off sharply this summer over concerns about a slowdown in China and weak world growth, leaving Fed officials to vet whether that reflected a short-term correction or more fundamental problems on the horizon.

"Financial markets tend to wax and wane, sometimes suddenly. Monetary policy needs to be more stable," said Bullard, who in prepared remarks here to the Community Bankers Association of Illinois said he did not think the Fed "provided a satisfactory answer" to why rates should stay near zero.

The economy is near full employment, and inflation will almost certainly rise, Bullard said, leaving the Fed's near seven-year stay at near zero rates out of line with the broad economic picture.

In a statement Lacker said he felt the current low rates "are unlikely to be appropriate for an economy with persistently strong consumption growth and tightening labor markets."

However at least for now the Fed set aside such concerns out of deference to a different worry: that a weak global economy may pull down the U.S. Specifically Fed officials, including Yellen, said a dip in measures of inflation expectations was worrisome if it proves to reflect eroding confidence in the recovery.

The expectations of businesses and consumers about inflation is thought to play an important role in the actual pace of price increases, as well as in decisions about savings, investment and consumption that are central to economic growth.

San Francisco Fed President John Williams in remarks on Saturday laid out the case for caution, and suggested he and others now want more proof before a rate hike. Williams said he still expects rates will rise this year as the "disinflationary" impact of low oil prices and other outside influences fades, and the U.S. economy continues to expand.

Still, "getting some more clarity around what is really happening in the global economy, how is that affecting the U.S. economy, and also seeing continued progress in the U.S. economy -- these are all things I'm watching," Williams told reporters when asked about a possible rate rise in October.

Williams, who is among the regional bank presidents who does vote on interest rates this year, declined to specify whether he sees October or December as the appropriate time to go.

The Fed next meets in October and again in December.

Thirteen of 17 Fed members last week said they still expect to hike rates this year.

Sun, 09/20/2015 - 19:27 | 6572653 o r c k
o r c k's picture

The US has "persistently strong consumption"  and we are nearing full employment. They're "allowed" to say this without any blow-back from our dedicated, Constitutionally mandated media?  Yeppur..

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