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The Fed's A "Joke," Saxobank CIO Prefers Gold Amid Increased Uncertainty
"A joke" and "far from impressive", both descriptions give you a sense of the frustration being felt by Saxo Bank's Chief Economist Steen Jakobsen who analyses the decision not to raise rates in this brief clip. The Fed "missed opportunity to raise rates for first time since 2006" according to Steen who has been consistently arguing against what he calls the Fed's "pretend-and-extend" culture. Volatility and uncertainty will remain high and there's now little chance of a rate rise this year suggests Steen (expecting a big rally in gold), given that EM economies and China are unlikely to emerge from the doldrums in the near-term.
The last minute gets dark...
"...as always with The Fed is clearly shying away from taking any hard decisions, from actually taking any accountability ort responsibility for resetting the clock on this extremely easy monetary policy... they are just as likely to cut as to hike."
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Still stackin'
hairball
Raising rates wasn't the crash plan cause it's not permanent and bad enough. The FED could just simply lower again and Voila! Problem solved.
That won't do.
So, instead we get the WORST CASE SCENARIO, which is "The FED did all it could and has no bullets left, the wad is shot and it didn't work."
RELEASE THE KRAKKEN!!
The Fed truly is a joke (just not the funny kind). The Fed is simply fighting natural changes in the core population (15-64yr/olds)...all with the it can perpetually put US and global growth on steroids instead of accepting lowe rates of sustainable economic activity and growth.
The linked article makes it plain, rate hikes and cuts, periods of high and low federal deficits, are entirely correlated with periods of high and low core population growth. And even with continued lax immigration policies, the next decade is the historically lowest core population growth period since before WWII...and likewise for most advanced and many developing nations.
The Fed's policies to goose the good times during huge population increases and leave nothing for the inevitable slow growth periods we now face was the work of incompetents or very competent thieves.
There is nothing complicated or mysterious about it (nefarious is the word I'd choose)...
http://seekingalpha.com/article/3522366-demographics-the-real-opponent-the-fed-has-been-fighting-for-decades
The Fed never not need raise rates ever again.
Simply, stop introducing new currencey into the existing pool of currency.
No "official" rise.
No "official" lowering.
Just GTFO. Leave!
Go do productive work... or get shish kebabed.
The FED has a plan, it's not a good plan, but it's a plan. The problem is they use models that only look good on paper and doesn't meet the smell test as far as the real world goes. To change they would have to go back to the old fashioned way of watching money flow in the economy which is messy and slow. We are going to be modeled to death.....
Oh, they shot their load, they are just putting it back in for a few more pumps before it goes limp.
My cat is stackin' hairballs hairball. Can you hair me?
Okay, can you hair me now?
Stack-em and rack-em!
Saxobank is a joke.
Sometimes Tyler features the CEO, Lars Christensen. He says some decent things, but at the end of the day, he goes to work in his nice suit and the charade goes on another day. Hypocrites and cowards, all of 'em.
Silver & Bitcoins
The new Bitruble= may be government approved, now thats interesting
http://sputniknews.com/business/20150916/1027067553.html
Looks like the Russkies beat em to the punch yet again.
Still not my prefered alternative method but that is obvious.
But but but........bitcoin?
Margin hikes in 3... 2...
Big rally in gold? Manipulation.
An equally big rally in silver manipulation.
The fed won't allow a rally and whatever said, they're still full in control.
A drop is even way more possible now as it would be logic for a rally to materialise so... logic... not today or tomorrow.
A TBTF bank complains about the fact that the Fed saved their arses by preventing the immediate bankruptcy of all zombie infested criminal Western TBTF banks and put it all on the public tab, then fucked the economy to make the banks even happier with free cash by the ship load.
So kinda hard to please. Just imagine how the public feels Saxobank
I don't think you've got a whole lot to whine about but thanks for the mutual Kabuki anyway.
I would bet we see negative interest rates before we see a rise.
Downgrade the Fed.
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.
CIO = Chief Information Officer, no? Maybe I'm betraying my tech bias....
Investment
Thanks!
What? nobody believed Bernanke when he said no normalization in his lifetime?
The next joke has hit Chicago. Boohoo
Chicago Adds Ridiculous 9% “Cloud Tax” on Netflix and Other Streaming Services
But it just gets better, sign up today!
Shitflix
Seems WS just wants volatility, in the stock prices and in the PM prices.
If gold does rally, they will use it to regroup and to beat the shit out of it again.
We need to get to the point that the WS suits are crapping their pants and also jumping. That will be the bottom for PMs and a new system can come out of the crap we have now...
Paper gold and silver cannot rally.
The rally will be in premiums for physical delivery.
Supply chain problem or real scarcity is a much debated subject.
COMEX feels that they can deliver in fiat rather than physical,
Many GLD (and ETF in general) peeps rode it down and only huge institutional can take physical delivery, because of the number of times the same holdings have been sold.
WS makes money up and down on volatility, at least some of them do.
Commodities, not so much.
So would this big bank by chance be moving physical gold into their vaults or are they buying a paper promise like Stanley D?
How long has this guy been in the closet?
Since they instituted Common Core Math.
This Dad Wrote Out a Common Core Math Check to the School and It’s Brilliant
Wasn't Saxo bearish on gold just a week or two ago?
So much gold,so little time! on my wish list.... http://www.ebay.com/itm/111709521029?_trksid=p2055119.m1438.l2649&ssPage...
Aand,just like clockwork,the tradaditional sunday evening gold slam. not going to work,fu%^ers,you are on the radar now!
We still have physical. Get over the penny pinching and "your gold is a buck more that the other guy" because when this ship goes and brings about true price discovery in gold. Only those actually holding the metal will have anything. Buy a gram or buy a kilo that's up to you.
www.teamramgold.com/about-us
lol @ confirmation bias
in the u.s. negative intrest rates have essentially been passed down to the consumer already. currently i get paid more in cash back to spend borrowed currency at gas stations and department stores than i do to deposit earned income in a 5 year cd. and 1% yield on anything liquid is considered exceptional. the branch manager of my bank tells me this as if im supposed to get excited about a 1% yield. is this a little taste of what is to come? what planet are we on will someone please tell me.
in the u.s. negative interest rates have essentially been passed down to the consumer already. currently i get paid more in cash back to spend borrowed currency at gas stations and department stores than i do to deposit earned income in a 5 year cd. and 1% yield on anything liquid is considered exceptional. the branch manager of my bank tells me this as if im supposed to get excited about a 1% yield. is this a little taste of what is to come? what planet are we on will someone please tell me.
in the u.s. negative interest rates have essentially been passed down to the consumer already. currently i get paid more in cash back to spend borrowed currency at gas stations and department stores than i do to deposit earned income in a 5 year cd. and 1% yield on anything liquid is considered exceptional. the branch manager of my bank tells me this as if im supposed to get excited about a 1% yield. is this a little taste of what is to come? what planet are we on will someone please tell me.
Where in the Fed's enabling legislation does it say that the Fed must protect market participants from their own foolishness?
Among those pressuring the Fed to maintain ultra-low rates are hedge fund managers, derivative issuers, emerging market borrowers in dollars, and a variety of carry traders. The Fed has no obligation to protect them from their own bad decisions to the detriment of its established responsibilities for price stability in the US and full employment in the US. It can be predicted that the current oversupply of commodities on world markets will subside, at which point the Fed will be facing a real inflationary threat the likes of which are rarely seen. How will the Fed react with all those excess reserves sloshing around the banking system? The notion of hitting an inflationary target of 2 percent is a recent invention of academics that appears nowhere in law or regulation.
Well; the Chinese are slowing down because the consumer driven US & Japan are driven down; so what can go up? Quit feeding these beasts and they will disappear. People have the power of "shunning", just too stupid to realize it much less organize and destroy these people who destroy them by just refusing to have anything to do with them and anyone who works for them.
It is amazing how many of the financial cognoscenti form opinions on Central Bank Policy with the unstated assumption that a stable monetary policy underwrites debt-based fiat money.
There is no such policy because there cannot be.
Each created unit of currency (central bank liability) has an equal and opposite unit of face-value-debt. BUT the debt bears interest, while the currency does not.
Get it?
There is never enough money to pay both the debt and the interest. Not enough money anywhere. NEVER. Because that is the design of the currency system.
Instead new debts must be taken on that are equal to the size of the old debt plus accumulated interest. That new debt will then underwrite the creation of an amount of currency equal to its face-value...and the game begins again.
THIS MEANS THAT A FAILURE TO EXPAND DEBT WILL CAUSE THE CURRENCY SYSTEM TO COLLAPSE.
THIS MEANS THAT THE VERY DESIGN OF THE CURRENCY SYSTEM IS GEARED TOWARDS CONTINUOUS MONETARY AND PRICE INFLATION.
(Stick that in your mandate, Fed.)
THIS MEANS THAT THE DESIGN OF THE SYSTEM EXPLICITLY AND INTENTIONALLY PUNISHES SAVINGS, AND SUBSIDIZES BORROWING.
THIS MEANS THAT THE DESIGN OF THE SYSTEM EXPLICITLY AND INTENTIONALLY DELIVERS GREATER WEALTH TO FINANCIAL BUSINESSES, AND CENTRAL BANK CRONIES THAN IT DOES TO ANYONE ELSE...INCLUDING ANY AND ALL 'PRODUCTIVE' LABOR.
AND FINALLY THIS MEANS THAT THE PORTION OF EACH DEBT ROLL-OVER THAT IS ACCUMULATED INTEREST CONTINUALLY INCREASES, WHILE THE PORTION THAT IS 'PRINCIPAL' (representing real physical things) IS EVER DECREASING. AND WHEN THERE IS TOO LITTLE PRINCIPAL (real stuff) TO SERVICE THAT ACCUMULATED DEBT (theoretical) EITHER REAL INTEREST RATES MUST COME DOWN OR THE CURRENCY SYSTEM COLLAPSES...BECAUSE (going back to the original point) THERE IS NEVER ENOUGH MONEY TO PAY OFF BOTH THE DEBTS AND THE INTEREST, BUT THE INTEREST GETS PAID FIRST (meaning that any default in a unit of debt wipes out the currency needed to service other debts in a chain reaction).
The currency system is itself a pyramid scheme.
Get it?
Think about this. The Fed is doing what it must do to preserve the currency system.
The amazing thing isn't that those who set up this currency system thought it could work....I very much doubt that. The evidence suggests it was merely a scheme to get unearned wealth.
The amazing thing is that it could fool so many for so long.
It is really simple.
For one person to get 'SOMETHING-FOR-NOTHING', another person must get 'NOTHING-FOR-SOMETHING'.
Productivity is the right thing for humans to do if they want to live.
When people are punished for doing the right things, they will do the wrong things instead.
All the unpleasant things in the economic world (material poverty) spring from too much human willingness to LARCENY from a desire for 'SOMETHING-FOR-NOTHING'.
You can't have something for nothing.