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One Trader Says Central Banks Need To Just Shut Up
On Monday, in “Central Banks Now In 'Dangerous Situation': 'You've Thrown The Kitchen Sink At It, What's Next?'", we said the following about the global fiat confidence game:
Here's the real danger: the degree to which unconventional monetary policy is effective is in no small part dependent on perception. That is, the fiat regime is in large part a giant confidence game. If that confidence starts to evaporate in the minds of very "serious" people, this will all come to an end, and that's not simply the latest rant from a "fringe blog", that's just the way confidence games work. Ironically, the best thing developed market central bankers could do right now is simply stop the madness and allow capital markets to crash and reset. There may still be some hope of preserving the notion of central bank omnipotence here if everyone suddenly comes to their senses, steps back from the money printing, and lets creative destruction purge the system. That would allow the world's foremost monetary authorities to start from scratch and perhaps reclaim some credibility on the way to rebuilding things.
Well, we aren’t the only ones with serious questions about just how long this charade can hold up and indeed, when traders start questioning the central planner narrative, it’s proof positive that said narrative has been lost.
On that note we bring you the following from Bloomberg’s Richard Breslow, the man who, you're reminded, is also concerned about whether Janet Yellen has the proper training to serve as the market's "head trader":
There has been no shortage of debates on whether central banks have lost their credibility. Early versions of this debate came to a more favorable central bank outcome because at the height of quantitative easing the market came to the realization that fighting those flows was a mug’s game. It felt like it was working because investors were not only going with the flow, but trying to front-run it. The central banks didn’t mind. The best fill wasn’t their objective.
- But now the tide is turning. We still have a zero interest rate world and policy effectiveness is being questioned as rate rises are as elusive as ever. The fixed income market continues to fade central bank rhetoric and correctly forecast central bank action
- Last May, futures forecast a rate rise about a year out. The force of Fed guidance, despite the China meltdown, made analysts move to a September liffoff. Futures never really bought that and are back to pricing ’’see you no time soon.’’ The market continually being right and the bankers wrong does not further the Fed’s much stated goal of ensuring financial stability
- Since U.S. payrolls, two comments from a Fed president struck me. One, referring to September’s no rate rise, “It looks like that was a pretty good decision.” This seemed in bad taste and counter to everything they had been suggesting. So much for Rational Expectation Theory. The other was, “I don’t think the markets have veto power over what we’re going to be doing.” Probably true, but neither the Fed nor the market have acted that way
- Central bank credibility is priceless and they desperately need to reclaim the intellectual high ground. The continuous public back-and-forth through speeches and attempts at expectation management just aren’t working
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End the motherf*cking Fed. 2016.
Shut up? Like asking a whore to close her legs.
The oozing sore on the inner thighs
"Central bank credibility is priceless and they desperately need to reclaim the intellectual high ground. The continuous public back-and-forth through speeches and attempts at expectation management just aren’t working"
No. Central Banks just need to get shoveled and burried below ground. They should never have existed to begin with.
whores are more honest
What's next? Simple, End the Fed and execute the fucking perps!
Retribution time motherfuckers!!!!
Nothing changes otherwise.
Look out the window. I think the people still need about 10 years of repression and suffering to react in a way that changes anything. Sadly by the time average joe starts rioting the perps won't be around anymore or were already absolved of their sins by their cronies who followed in their footsteps.
If you think there is any form of justice in this world you are utterly mistaken. If you can, start enjoying things around you while they still last, stop worrying about putting things right. Nothing will stop them until they die and realize they have wasted their lives ruining other human beings, but it will be too little too late. Sharing a cup of tea with a kind human being might give you more enjoyment in a single moment, than those excuses of jokes of caricatures of sick disgusting apes ever felt in all their 'rich' lives.
Indeed. My tribe and I live a very full life, but that which cannot be sustained, won't be, period.
Chance always favors the prepared an I do know some VC guys with private islands, so the idea that the perps will be hard to find is bullshit.
in my humble opinion ...
central banks need to just BE SHUT DOWN
The Fed spends 80% of its meeting time on their "message." These charlatan witchdoctors are intent on influencing the masses to quiet the hordes of angry mobs (to their own benefit of course).
Nothing will change until there is real change.
...and even then nothing will change
The Fed. is there to calm the sheep and to set the HFT algorithms in motion to make profits for the banks. Isn't that their dual mandate?
Bullshit is the working plan for the economy, so pile it high and deep......
credibility????????
most of these 'traders,' not to mention the kids on CNBC were in fucking high school the last time the FR increased FFR.
we are *way* into the death spiral. there is no return to normal, ever. only collapse and reset.
delay delay until then. and continue the liquidation of the USA.
Central bank credibility is priceless
WTF?
How do you put a price on something that does not exist?
If the slave "banks" of the world were to lose all credibility, the people of the world would be free.
Central banks need to be transparent and concise.
Instead of parading their various stooges in the financial news everyday, blabbing about micro economic bullshitisms, and making themselves look like retarded turd flinging Baboons at the zoo, they need to let the markets price themselves and quit trying to rewrite the laws of economics.
+1, not gonna happen tho, especially this week LOL
With each ratchet, another last man standing is eliminated, bidder volume is reduced, scale control is increased, market pumped with inflation, main street deflated…Communism is all about pacification, until the food runs out.
You are just starting out. It’s always math. You need a job, so it’s going to be somewhere near a city, maximizing income to rent, while you acquire skills. A farmer is going to rent you a house on a piece of property he has acquired to cover the taxes, his communist liabilities. Trump, maximizing rent to income, is going to charge you the mortgage plus what he has found to be sustainable communist profit. Are you going to Des Moines or NY? Why is Trump, or any of the others running for President?
Trillions in Fed Easy Money just made the rich even richer, the working classes poorer and the lazy poor more comfortable. Exactly as planned and predicted. Central bankers will keep rigging markets to boost their own asset values until WW3 breaks out and the American working classes will have to pay the price of our financial criminal ruling elites once again.
I love it when they pretend the 'wealth effect' was some sort of happy serendipity. No. It was your 'masters' plan all along. And many of us called you out on it, and tried to alert the sheeple, but the desire, the "I want to believe they are NOT plotting against me" was too strong. The brainwashing too deep.
We have been conditioned to think of the government and the Fed as some sort of benevolent grandparent (hence Janet's selection as Fed head and grandma image). A Big Brother, if you will.
I would just be happy if Mr. Yellen didn't belch into the microphone during their next speech.
It was a cough to cover the noise that came from the south end.
the diapers were leaking "fuel"....
Its a popular delusion. Thinking that the FED fucked it all up by accident.
A hundred years of screwing over savers is kinda hard to ignore? Unless of course your paycheck is riding on it.
"The continuous public back-and-forth through speeches and attempts at expectation management just aren’t working"
They cried wolf till they couldnt cry wolf any more, then the wolf came. Its a fable.
The job of the central bankers, the people that sit on the boards, is to LIE to the public about their intentions, because the job of the institution, the bank, is to steal money from the laymen and hand it to the private for profit banks.
So the central bankers are doing their job and don't expect them to do otherwise.
END THE FED
What do we want? Our billions back!
https://thatguybloke.wordpress.com
All the CBs have left is words. They can never shut up at this stage or they will be hung in the public square.
ECB will be bailing out Greece again soon. QE 4 is a lock. It is just a question of when. When Ray Dalio says "we" need it... you know that the Fed listens.
How about a little truth so that people can make informed decisions instead of decisions managed by bullsh*t propaganda?
Although I do not believe honesty and fairness is written into the Fed charter, it gets tiring to see all Fed decisions and policy made for the covetous benefit of its owner banks.
When did Central Bank policy change to only be concerned with the stock market index and trading bankster bonuses?
"When did Central Bank policy change to only be concerned with the stock market index and trading bankster bonuses?"
Never. As President Bush said immediately after 9/11, go out and shop.
"It felt like it was working because investors were not only going with the flow, but trying to front-run it. The central banks didn’t mind."
That's the problem. It felt like it was working. Every boom, every bubble, feels like it is working, until it busts- then the truth comes out.
Fear The Talking Fed.