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"We Should Have Known Something Was Wrong"
Remember when stuff such as the following was written exclusively on "conspiracy" tin-foil blogs by deranged lunatics who could not appreciate the brilliance of the neo-Keynesian system and central-planning by academics, in all its glory? Good times.
Here is Bank of America's Athanasios Vamvakidis channeling Tyler Durden circa 2009
The real cost of QE
QE was not a free lunch after all
If only it was that easy to print our way out of a global crisis. Eight years after the crisis, we are still debating about whether the recovery has gained enough of a momentum to allow exit from crisis-driven policies and start hiking rates from zero. The world economy has actually lost momentum this year (Chart 1), deflation risks have increased (Chart 2), and EM indicators and overall market volatility have reached crisis levels (see Chart 3). All this is despite unprecedented expansion of central bank balance sheets (Chart 4). Things may have been worse otherwise, but in hindsight we believe relying too much on unconventional monetary policies was not a free lunch after all.
We should have known something was wrong
The Fed “taper tantrum” could have been the first warning that QE had gone too far. The Fed’s announcement in June 2013 that they would consider tapering QE, contingent upon continued positive data, triggered a sharp market sell-off, particularly in EM. The aggressive search for yield, which intensified after the Fed announced QE3—or QE infinity as markets called it—came to a sudden stop. QE was not for infinity after all. The Fed tried to reassure markets that QE tapering was still policy easing and that its end would not imply rate hikes immediately, but the markets apparently thought otherwise. A key takeaway was not that QE had already gone too far, but that announcing its tapering may have been a mistake. The Fed waited until December to start tapering, although the market had already priced its beginning in September.
The second warning sign may have been the across-the-board EM sell-off that started in mid-2014, as QE tapering was coming to an end and the market started pricing Fed tightening, a sell-off that intensified substantially this year. EM FX tends to underperform when the Fed tightens and the USD strengthens, but by early 2015 the EM FX index had reached a level below that during the global financial crisis (Chart 3). China’s devaluation made things worse in August, but the EM sell-off started much earlier. Risk assets more broadly have reached oversold levels. The market has been anxious about Fed hikes, despite pricing a very slow tightening and expecting interest rates to remain historically very low for years to come.
The point when things started going wrong
The Fed and other major central banks were the first to act when the global crisis started, and we believe their actions helped avoid another great depression. Political disagreement and brinkmanship led to a messy fiscal policy in the US and a neverending Eurozone crisis. The Fed and the ECB, successfully, came to the rescue a number of times in recent years. In Japan, the BoJ has delivered the strongest arrow from the three arrows in Abenomics, with mixed progress in the arrow on structural reforms and no progress in the arrow on fiscal sustainability. However, monetary easing is not the solution to every problem and risk in an economy – and we believe that using it when other polices may have been better used has its own costs.
At some point during Fed QE, the markets started reacting positively to bad news. In our view, this is when things started going wrong. Bad news became good news for asset prices, as markets expected more QE by the Fed. Asset prices were increasingly deviating from fundamentals, as the markets were trading the Fed instead of the economic reality. This was clearly not sustainable.
We believe QE1 by the Fed (Nov 2008) was a necessity. Without it, the world economy was heading to a new global depression. The Fed, led by the world’s expert on the great depression, did what needed to be done. The ECB took the opposite approach, avoiding QE and even hiking rates in the midst of the global crisis and again in the midst of the Eurozone crisis. The crisis got worse, the Eurozone economy still had the largest output gap in the Q10 group, and deflation forced the ECB to finally start QE this year. We are more skeptical about QE2 (mid 2011). The world had avoided a second great depression by that point. The justification was to address deflation risks and support the recovery during deleveraging. It was not clear cut—US inflation was above 2% and core inflation only slightly below—but one could see the Fed’s point taking into account the risks and empirical evidence that recoveries from balance sheet recessions are very slow. QE2 was not trying to address depression risks, but to avoid a Japan scenario. As such, we think QE2 was needed, albeit less so than QE1.
However, we are less sure about QE3. We believe this round was intended to support asset prices, with the idea that high asset prices would lead to a stronger recovery. Instead, Wall Street was increasingly deviating from Main Street, inflating asset prices. Equity prices started pointing towards a strong recovery, while bond prices were flagging a Japan scenario for the next decade. Both could not be right, and both turned out to be wrong. The recent sell-off suggests to us that the Fed underestimated the risks from strong EM inflows because of QE.
While we will of course never know what would have been had other policies been pursued, we believe that excessive reliance on unconventional monetary policies in recent years has had side effects. The recent market turmoil has shown that macroprudential measures have limited ability to deal with such side effects. Indeed, despite continued central bank balance sheet expansion (Chart 4) and further easing by most G10 central banks from already historically low policy rates (Chart 5), monetary conditions have tightened in most G10 economies (Chart 6) and global liquidity conditions have worsened this year (Chart 7). No macro-prudential measures could prevent this from happening, in our view.
We wouldn’t necessarily look at QE as the root of these issues. Less QE might have been necessary if US fiscal policy wasn’t so fractious, Europe had been faster to respond to the crisis, global policy coordination was stronger, and governments worldwide had grasped the “opportunity” of the crisis to implement structural reforms and progress in trade agreements. As the IMF has warned, we believe the world put too much burden on monetary policy. We have started seeing the consequences this year.
The above has lessons for both the Eurozone and Japan looking forward:
- ECB QE has led to historically low periphery yields, which are not pricing sovereign risks—just think where Greek yields are going to be if the ECB starts buying GGBs. When at some point in the (likely distant) future the ECB stops QE, the adjustment in the periphery yields is unlikely to be smooth, particularly if the countries in the region have not taken advantage of the ECB easing to implement reforms. These concerns would not justify stopping ECB QE early, but we believe they do point to consequences when central bank policies force markets to ignore risks for too long and governments are not addressing these risks in the meantime—recent reform progress in Italy is encouraging from this point of view.
- Japan could face challenges if delivery of the non-monetary “arrows” in Abenomics remains so weak. In our opinion, Japan needs structural reforms to grow and a credible long-term fiscal consolidation plan to ensure debt sustainability. We believe aggressive BoJ QE is currently kicking the can down the road, but these problems could eventually come back to haunt Japan.
Now what?
The story of the year so far may be that of a negative feedback loop leading to a bad equilibrium. First, risk assets sold-off expecting the Fed to tighten. Then, the sell-off went too far and started affecting the real economy, including in the US. Now, the Fed is not tightening as a result. However, postponing Fed tightening does not necessarily increase the demand for risk assets. We are oversimplifying, and there are certainly many other things going on, but it helps make the point.
This appears to be a new regime, in which bad news is bad news, as we wrote a year ago and reiterated recently. Fed QE does not appear to be coming to the rescue anymore. The Fed staying on hold can support risk assets in the short term, but is not as strong as QE. This is an environment with high market volatility, as the so-called central bank put is less powerful without Fed QE. ECB and BOJ QE apparently cannot do the trick. Bad news is supposed to be bad news and this should be a healthier market than before, but the adjustment back to normal has not been, and in our view is not going to be, easy.
Risk-on recommendations are only tactical. If the US data improves in the months ahead, the Fed will likely tighten and risk assets could sell-off again. If the US data remains weak, or weaken even further, we would expect risk aversion to increase, as the threshold for QE4 by the Fed appears high—and more QE may not be as effective anymore.
* * *
And that, dear Janet Yellen, is how you trapped yourself in reflexivity from which there is no way out. Now if only someone could have possibly foreseen all of this years ago...
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Just reset the whole fucking carnival already. So it sucks for a decade. Maybe all this monetary fantasy will be replaced by some fiscal sanity. Fuck.
don't forget.......tick tock boom
"A key takeaway was not that QE had already gone too far, but that announcing its tapering may have been a mistake. "
These morons remain deeply out of touch with reality. I don't think they possess the cortical connections to see reality - that critical period is over. They just can't step out of their fantasy world and join the rest of us in the real world.
I'd feel better if they were morons in a fantasy world; however, in my mind's eye, I see them high fiving, and congratulating each other.
Dimon and Blankfein are now billionaires, gorged on middle class blood, sweat and tears. Now with an asset deflation, they can deploy
their gravy train fiat to scoop up fire sale assets on the verge of default. Front running the oscillations of inflation/deflation waves can
be very lucrative when you are in "click". The .001 % own the Fed., and the Fed. has been very good to them. If we have a major
down turn then they will simply add to their wealth. If we suddenly sprout green shoots, then they'll pluck them. Just because we don't
get the result we would prefer, doesn't mean the Fed. failed; it simply means they have another agenda.
All this money printing and things still haven't turned around.
Layoff List: http://www.dailyjobcuts.com
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Wait... are you saying that everything is NOT awesome?
Short LEGO and Warner Bros.!
Not to worry, the PPT has this... Now warm up those presses and to hell with the balance sheet...
Mr. Yellens is still on every ones hit list, as well as all the other surviving FED chairmen's.
After that last show of instability why is senior citizen Yellen still running around loose outside a nursing home? Why is anyone still listening to her babbling like a crazy old lady? She is a direct threat to our finances. She should have been committed weeks ago but instead they give her more power.Typical.
The damage from the money printing will continue for decades. It has destroyed our Republic, it transferred power to the psychopaths, and will end up in war and suffering for all.
QE worked fabulously. If you don't comprehend this then you don't comprehend the real reasons for QE. Oh, you thought the "good" articulated reasons were real?
"Everyone man has two reasons for doing a thing: The good reason (lie) and the real reason (occulted truth)"
~JP Morgan
They even tell us exactly how they will manipulate us, but we still can't "figure" it out. No wonder we are Muppets who don't even know who's hand is up our...
QE stands for quantitatively easing oligarch losses. They did this by offloading their debts onto society - by the trillions. They did this by siphoning off trillion in cash for themselves, while leaving trillions more in debt to society.
Payable with interest back to the oligarch controlled bankrupt corporate fronts that were bailed out.
For those that can't read for comprehension, it is like you giving me a kidney a transplant to save my life and then I send you the bill for the surgery and demand your heart as well (the brain isn't worth the effort - it doesn't function).
QE boosted the stock market and real estate so that the oligarchs and their close nit buddies can bail out at probably 100-200% of the value of what they could have otherwise done.
In addition, they saturated society with even more debt to go with their less cash such that when the asset stripping commences in earnest, there is more for them to steal.
If you think that the Banksters are going to hyperinflate and bailout debtors, then you 1. Don't know what TBTF&Jail means, 2. You don't comprehend basic Econ 101 psychopathic self-interest, and 3, You need to chomp that red pill because the Matrix is still concealing reality from you.
Keynesian Monetary policy (executed by the Rothschilds, Warburgs, Lazards etc...) simply exaggerates Austrian economic laws making everything much more volatile. The Fed finally figured out that they were toiling around. Audit and then END THE FED!
QE worked fabulously.
Yes it did.
"The Party seeks power entirely for its own sake. We are not interested in the good of others; we are interested solely in power. Not wealth or luxury or long life or happiness: only power, pure power. What pure power means you will understand presently. We are different from all the oligarchies of the past, in that we know what we are doing. All the others, even those who resembled ourselves, were cowards and hypocrites. The German Nazis and the Russian Communists came very close to us in their methods, but they never had the courage to recognize their own motives. They pretended, perhaps they even believed, that they had seized power unwillingly and for a limited time, and that just round the corner there lay a paradise where human beings would be free and equal. We are not like that. We know that no one ever seizes power with the intention of relinquishing it. Power is not a means; it is an end. One does not establish a dictatorship in order to safeguard a revolution; one makes the revolution in order to establish the dictatorship. The object of persecution is persecution. The object of torture is torture. The object of power is power."
-- Orwell 1984
QE 4 started oct 1
WHO will the greedy lying socialist jews blame this time?
FEAR NOT! IT'S REALLY A THING!
https://www.youtube.com/watch?v=YbYWhdLO43Q&feature=youtu.be
Most "socialist Jews" have no clue as to how the debt-money system operates. In fact, they will ultimately be victims of this system as well.
The Big Bad = The Debt-Money Monopolists.
BTW, this includes European Royalty and Rockefellers, among others.
Blair was dead within in a year of publishing that book. Me think the insiders didn't like his revelation of their method being exposed by an insider - and publishing under a pseudonym didn't help.
Sure, there is a story about how he died of natural causes, but Dr. Mary's death narrative was obviously faked - so faking death narratives is trivial.
Dr. Mary's Monkey
https://www.youtube.com/watch?v=GZ5-liXcXLI
Groundbreaking Interview With Lee Harvey Oswald's Girlfriend Judyth Vary Baker
https://www.youtube.com/watch?v=_gv2uj10CO0
Dr. Mary's Crime Scene Photos - with opt out
http://doctormarysmonkey.com/Crime_Scene_Photos/Content_Warning.htm
It is impossible for a fire to have burned her arm bones completely away, therefore, the claim she was burned in her apartment is 100% probably false.
It is that simple.
So Appl is a strong buy? Kidding. I think you are on the money. This is calculated by people that have influence. No reasonable student of economics (Keynsian included) could support this policy for this long. Moving more to cash on every uptick.
Nice rant. I find your point of view interesting. TY.
agreed, all risk, good rant. But" There will be hyperinflation because the politicians will realise the oligarchs have thrown them under the bus and weimar style printing will be the politicians alternative.
Squid, and this is KEY, the politicians are vetted, financed, and promoted by the Debt-Money Monopolists.
They are NOT indepedent endities. They are chosen because they will DO WHAT THEY ARE TOLD.
They actually have no effective power should they go against the Debt-Money Monopolist agenda.
They oligarchs have dirt on them and can destroy them publicly. Even if they didn't have dirt on them, they could make it up and the Muppets would believe them.
Politicians the world over are merely quislings of the Debt-Money Monopolists.
The oligarchs prefer to buy their complioance with insider trading and insider deals, but they will blow their heads off in broad daylight with "magic bullets" if need be.
Note that they could've killed Kennedy (or his brother, or his son, no Kennedy will ever be President to have access to the CIA files) in less public ways. Maybe a cancer virus or a car accident.
But they didn't. Why? I believe to send a message to others that they are vulnerable if they go along with the Debt-Money Monopolist program.
"Money Power Seeks to Create a World System of Financial Control in Private Hands Able to Dominate Every Nation on Earth
The powers of financial capitalism had [a] far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world's central banks which were themselves private corporations.
Each central bank, in the hands of men like Montagu Norman of the Bank of England, Benjamin Strong of the New York Federal Reserve Bank, Charles Rist of the Bank of France, and Hjalmar Schacht of the Reichsbank, sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world."
~Carroll Quigley, Tragedy and Hope, CFR Historian and Bill Clinton mentor (handler?)
Read Chapter 19 of Tragedy and Hiope
https://archive.org/stream/TragedyAndHope/TH_djvu.txt
World government, banks using debt-free money for themselves but not for society, pretending to care about ordinary people, central bank head lackies, world oligarch control over economies, bought and paid politicians... it is all thee in that one chapter.
And he's an insider. He doesn't reveal it all, but what he does reveal is astounding IF one is willing to COMPREHEND it.
"Politicians the world over are merely quislings of the Debt-Money Monopolists."
My question is to what degree are scientific academies merely quislings due to funding by politicians? Specifically, climate scientists. Any thoughts?
Asset prices were increasingly deviating from fundamentals, as the markets were trading the Fed instead of the economic reality.
but Bernanke told me they were one and the same waaaaahhh
"We are oversimplifying, and there are certainly many other things going on, but it helps make the point."
Oh please do by all means, the problem with MMT it is a complicated bullshit fairy tale with too many knobs and levers, wheels and buttons. turn this, tweak that, spin this one before that one and at the same time you have to lie through your teeth and make up phoney stats.
You used to hear this shit all the time in 09, "a nation with the reserve currancy cannot go bankrupt" No technically they can't but they will definitly lose that status in short fucking order with that frame of mind. Modern banking is a confidence game and guess what bub, nobody but you believes you can print your stupid ass out of a ditch
Puuuulease, "5.1% unemployment", "wealth effect" "transitory" and college educated people would be the ONLY stupid mother fuckers that would buy into such horse shit. Fuck, the common blue collar stiff beating a fender all day could tell you more about street economy that the whole of Fraud Street.
Yep, pretty much FED Up.
Exactly.....they are grinning from ear to ear; funny thing is - nobody gets away with anything in the end, they just don't know it yet but their payback is of the eternal type and damn scary.
Even if you are wrong, we all die just the same.
Logic sucks for atheists.
I see Janet and Ben down arrowed you
And that makes them criminals in a class unto themselves: the death penalty would be too lenient. Really!
What is the next step?
Do you mean which comes first, the mushroom clouds or the rewind to 19th century society due to economic collapse?
Takeaway intelligent means, and make it 16th Century.
A 75 year long crisis where everything spirals down to levels 10 timmes lower what people think the bottom looks like right now.
And after that, if the strucutures are still there, a chance to rebuild.
We won't see the bottom in our life times.
And don't believe prepping is a sollution :) that's a pipe dream for idiots.
Get mobile assets that you can take with you when shit get's real and be willing to move to the other side of the globe where life continues.
Society will hang on another 10 to 15 years before it starts to look really weird.
Rule 1: Live now. And make it a goal to keep living. Survival isn't a life style. that's for idiots who still believe in a quick recovery.
Rule 2: always move where the living is good and don't hang on to pipe dreams of the past.
Only the idiots believed Titanic would never sink and sure there where those who thought they could build a life raft for themselves.
none survived. Only those who got away in time when all the rest tought they where premature and chicken.
"Society will hang on another 10 to 15 years before it starts to look really weird."
What, it doesn't look weird NOW?
Food, shelter and water. THAT is where you want to be.
Everywhere will be affected, at some point, to a varying degree, and for varying amounts of time.
Mention of the Titanic is very apropos!
Exactly - they are completely delusional.
It was a mistake when they bailed out the banks/corporations/insurers.
We are 7 years past crossing the Rubicon forever; that's when I was done.
Know the truth, trade the lie.....since 2008....my motto
Just to be clear - it was not a mistake to bail out banks, it was a plan to bail out banks.
When you call it a mistake, you are giving them benefit of doubt. As in all the ill effects were unintentional. and we all know, thats a lie.
Finally, remember what Bush Jr said few years after Iraq war - it was a mistake!
They are lower fucking life forms. Who else would seek employment in an entity with the monopoly priviledge to initiate force within a specific geographic area?
When your only tool is a hammer, every problem looks like a nail.
The Fed has no other fancy tools other than bail out banks through QE and lower rates. Well, we've done both and nothing is working.
Up next is default, but it will be called "restructuring" or something stupid to further numb the masses.
Boy, all those banks heaping up the derivatives into the quadrillion zone over the last few years sure doesn´t make the situation any easier. It should make a bigger boom though.
Not if the Fed buys them. Problem "solved."
For years I've been suggesting that the Fed will be the black hole to swallow up all the debt. In the end the debt has to disappear; since it would still be on the Fed's books it would mean that the Fed itself would have to essentially declare itself bankrupt. TPTB get their reset (they'll still be holding assets/weapons [in control of military]), the slate gets cleaned- while those with negative balances may cheer to see their negative balances go away, their starting balances will be ZERO, so, yes, the games begin again AND the "chosen ones" will once again have a huge/insurmountable head-start.
War, then a new currency (or a new definition of existing currency...moving of goalposts). Not like it hasn't been done before. Continentals, Greenbacks, Demonetization of Silver, Bretton Woods, Nixon-'71.
On a long enough timeline, the value of all fiat falls to ZERO
You're thinking too narrowly. The Fed has endless fancy tools. Because the fundamental tool beneath them all is a printing press. You ain’t seen nothing yet with respect to how the creative the Fed can get. Remember, it is currently authorized to buy any assets it wants. And imagine what more it could do if acting in partnership with Treasury officials and politicians all operating under the mantle of “an emergency.”
To continue the path would mean that they'd be purchasing ever-more-worthless crap (shitty assets and businesses that are certain to go bust). If one notices one will see that somewhere along the line STUFF has to actually be made in order for it to be bought up. If folks are broke and resources are too expensive to obtain (because people are broke!) then the stool loses its legs.
Oh you got me sir
https://www.youtube.com/watch?v=-Q4kwu6MOQM
Careful what you wish for, the next crisis by design is meant to be so bad that the world accept world government.
+1
Like Russia and China are going to hand over the keys to Ming the Merciless. Not without SS-18s and DF-41s flying around first.
West = Chaos
East = Order
...
World War might just be part of the plan to fully implement their Beast System.
People can mock the Bible all they want - and, like Jesus parables, it isn't meant to be easy to understand.
But when it gives two choices... worshiping money or worthiping God, it identifies the seat of all evil that will control what is worshiped...
MONEY.
The Money Power is above the object of most people's worship.
You worship what you OBEY!
Now go to work producing death, lies, pesticide edibles, etc... for the Debt-Money Monopoly ghouls...
Ming? Meh...Princess Aura was hawt.
World .gov. New money. Depopulation.
So many options for evil, so little time.
+1
Here we go again...
Sorry, but it's NOT going to happen. There's WAY too many interests out there for allowing any such.
Don't confuse "possibility" with "probability." That folks would look to "standardize" things is, well, pretty standard. That "looking to" is a high probability. Executing it, however, is a low probability.
When a large percentage of the world's population is wired into the matrix THEN the probability can be tweaked up. Right now the majority not only do NOT have Internet access but they don't even have ELECTRICITY!
Religious folks like to press this fear of NWO in order to keep their sheep in line. And of course, every religion wants to, itself, BE the NWO. Everyone wants to rule the world...
ALL SYSTEMS FAIL. BIG systems FAIL HUGELY. Even IF the improbable were to occur it would not last long.
Internationalism...no border enforcement is part of it
massive exodus / immigration
central banks holding hands across the globe
and the Fed saying that a softening China is why they cant raise rates....are all connected.
Next meltdown will lead to more fading of borders...more internationalism
fundamental transformation from the mixed race mixed religion father abandoned nobel peace prize winner with no past
Yeah, right...
The Germans and the Greeks can't see eye to eye and we're to believe that the entire world, which includes Germany and Greece, is going to magically come under a united spell?
Entropy rules, it WINS. Suggesting that some NWO is going to trump entropy is ludicrous. Two words: Human, Hubris.
I would do her, but I was hot for Barbera Bush.
I am so horny.
E*
"Now if only someone could have possibly foreseen all of this years ago..."
The Austrian Econmists, like Hayek, foresaw "all this" almost 100 years ago.
The author of this post is a mentally retarded amoeba.
Even THEY were operating with blinders on.
It's a finite world. Perpetual growth on a finite planet, regardless of what "economic system" that is premised on such, is NOT possible. To believe otherwise IS, to borrow a word from you, RETARDED.
"Go forth and multiply." Anyone see the ("origin" of the) problem? (as soon as you inject the concept of "interest" into the economic equation, unbacked by actual PHYSICAL things [all finite], you are essentially refuting the very notion of finiteness).
A few are having a hell of a party.
They are not ready to call it a night.
Author lost me when he said QE1 was a necessity...I don't have to read anything more.
That's the problem, there are still people out there who think that QE1 was a good idea. Since when is picking winners and losers a good idea?
The whole premise of the 'QE necessity' is that the fallout of a complete market rout is a bad thing. I claim it's not, those people who were exposed would have suffered badly, but at least it would have been because of the consequences of the bad decisions and not because of some capricious FED.
We're never going to get anywhere at all with a recovery if we don't get the FED out of the way.
Janet = Hilary in Usefulness and Sedition.
- Fe-mail (or Fee-male like blackmail) excites Janet, she waits for special messages each day
- Girls who are tomboys grow up to have more lovers whether they are straight or gay, a study has found.
- For it seems the genes that make women more masculine may also make them more promiscuous, researchers say.
The author will be fired by next tues afetr bac counsults with their atty's.
All "will be just fine" is crooked casino land in no time.
These fucking, lying bastards can suck my ass.
Did author read this http://www.zerohedge.com/news/2013-05-01/desperately-seeking-112-trillio...
Security of the Western Banks depends on Safe USD, Safe US Treasuries, and safe purchases of US Treasuries by all of our banks to maintain high levels of good collateral reserves... while QE undercuts this process.
Phuck the Fed peeples!
I'm sorry if that came across too strong.
Don't apologize. It undermines your argument.
The financial equivilent of navel gazing. Yes, QE and Tarp were wealth transfers to the top of the pyramid from everybody else as intended. Everything else is just an attempt to put lipstick on the QE pig.
Janet Yellen's real PhD degree was in Rodeo Clowns.
Ah, choice. She has the perfect hair for that.
Looks like a filthy Hobbitses to me. Tricksey, and false.
comment deleted
This time is different...Yeah right.
Hey Janet. I am not one of them. But it greatly concerns me what they are thinking. And hey, Janet... i'm thinking maybe you and your compadres around the world should start thinking about what they are thinking, 'cause they are increasingly thinking about what happens when
all the lights go out.
yellen isn't trapped. no, not at all. facebook really is worth $250B on a fundamental basis. /s
Facebook is some serious slavery to digital ponzi deception and mind control...so that valuation is probably not that far off...
Next up:
Facebook Reserve
Look at me! I'm printing empty neurons outta thin cyberspace!!
FB market cap = 1.45% of usa gdp
that's right FB is worth 1.5% of the entire ANNUAL eCONoME. HAHAHAHAHAHA!!!
Facebook might be one of the last things of "value" for the Fed to purchase! At some point the shelves will be bare, at which point printing will become pretty much meaningless...
This scapegoating crap from leaders of companies has got to STOP!
The CEO of any small to midsize company implements policy and is in charge of corporate structure.
J.P. Morgan the asshole he was, would have sent 90+% of these multilevel marketing, soul~less [CEOon paper]assclowns to the mines long ago. Bitchez [ I'm giving kudos to small and midsized companies]
* really? I have to paint it RED and paste it on a barn for you?
The fact that, Large Banks and Multinational Corporations scapegoat their underlings as sacrificial lambs, and the entire entity is so inter~twined in politics and the legislative sytem that judicial review never gets discussed beyond some puppet commitee.
Glass/Steagall/Graham/Blieley changed everything. JP Morgoon to the Squid could "bet" with client money. Never before could they....
Jumping the shark commenced there....at least ONE of the Tipping Points...
Don't get me started Jim. The Clinton debacle " Glass/Steagall". ugh
Shark Jumping started with monetary horseshit, even before the Untied States, or even the New Testament
Shark Jumping started in the Atlas Mountains.
I'm smelling "baby barf" right now. I'm drinking frozen bottled water.
Atlas Mountains - Wikipedia, the free encyclopedia
Atlas (mythology) - Wikipedia, the free encyclopedia
I love treasure hunting.
BS
It was a change, sure, but it wasn't even remotely on the level that Nixon taking the USD off the gold standard was. Let's be honest here, the US was, at that time; bankrupt. Since then we've been trying to paper the bankruptcy over, the papering requiring ever-increasingly obscure and deceptive tricks (such as tossing out Glass-Steagal).
It's been a succession of events/tricks because the very premise was never possible, our notion of being able to perpetual GDP nationally (humph, globally!) was ALWAYS going to fail. No, what you mention is but a pot-hole in the road-to-hell that we've been traveling for quite some time.
Something has been wrong for a very long time ...
I have a hard time believing that all the PhD economists who claimed godhood based on their superior intellect are now claiming that their PhDs are useless and they are really stupid twits.
Hayak stated clearly that it was well known in the early 1800s that Keynsian-type economics/QE/printing fiat did not work. How could all of the self-important Princeton PhD economists not know at least as much as Hayek?
We have to assume they knew and did it anyway, just like they did in the 1920s and then 1930s. How could it be otherwise and any claims now about their own stupidity is just a ruse.
Re-hashing their apparent evil plan seems redundant at this time because it is becoming increasingly obvious.
Neo Liberal: Starting with Clinton, continued with Bush....
And oh just because. Get your knickers in a knot? knot: https://www.youtube.com/watch?v=DwbzxemJZIc
Another one! https://www.youtube.com/watch?v=s4BCUWopQQ4
And I'm calling the Canadian election - minority gov with liberals at around 33 percent.
Your point? Collectivism is founded in the idea that might makes right.
Your window on history is a bit limited...
"Go forth and multiply" (perpetual growth on a finite planet isn't possible- to blame modern "economists," who are no more than operating on the instructions that we are to achieve endless multiplication, as the source of our ills is lacking in the research department [despite all the great video "references" you provide]).
Central banking seems, above all else, to be insurance set up by those who are already involved in the risky business of fractional reserve banking. The big difference in this specific case is the cost of insuring the risk is not borne by the bankers themselves, but is shouldered by taxpayers and the credit of the U.S. Government, allowing the bankers to pretty much do what they please, even extending their exposure far beyond any level of prudence, and paying no personal penalty as long as there is a shortage of nailguns!
I really do not think it works exactly like that. I think that it is more like:
There is a power controlling this planet and that power has a variety of sychophantic organizations administering the planet for it, using tried and true means (religeon, banking, government, propaganda and of course force). A lot of people are seduced by the power and want a free ride for doing its bidding. So, the force attracts those who fit the right profile (greedy, power seeking, not critical thinking, corrupt or corruptable ... follows orders well). Of course those who fit into the system do not think of themselves as the weak link in the chain of a corrupt power, but they are. They think of themselves as "elite"... and the mutual admiration society of the people reinforce this "elitist" thinking. They dress up in costume, perform rituals and gather in great circle jerks. (I would bet the power mocks their ridiculousness behind their backs)
The power is all invested in the system and those inside try to maximize their take while at the same time disempowering those who are not part of the group. Taxes are not for paying back debt created by the insiders, but are instead used to hold people down "Only the little people pay taxes", Leona Helmsly.
This is not to say that those within the system are not at risk. Once they take the oath they are owned, period. The power is not forgiving to those who have profited from being under the umbrella and then turn on it. They have submitted their life (and likely soul) to the whims of the power. They likely live in constant fear. Many have died for simple betrayals of the secrets.
Its all part of the big plan. Everyone knows that the world cant keep going full blast 24/7/365. If so, the planet would be nothing but a molten polluted ball of smog and mud with 12 billion people eating each other.
I'm kinda looking forward to seeing it slow down. Would like to see less cars on the road, fewer, "Dont drink the water" signs and not worry about getting nuked by some power plant pumping out radiation to keep all the advertisments glowing on time square 24/7/365.
Hell! Lets go for deep 1000 year depression. Maybe the next generations will be smart enough not to shit in their own bed.
The tribe's money system requires infinite growth in a world of very finite resources... Something's gotta give.
Soylent Green is people.
Hey, Captain obvious, it's okay if you take the helmet off.
FRACTIONAL RESERVE LENDING HAS FAILED MISERABLY.
The world is not without excess resources, and the very system that stagnated growth in other areas has left vast reserves.
It's not about expensive energy. It's about the hoarding of several well connected cartels.
Under the perview of everyman, this is extenuating a system of unequal rewards and power structure that awards preeminence to those who sacrifice to the system. QE, money printing, accounting misstatements, all about keeping perogatives, power, prestige. Fending off instant bankruptcy and dimunition. Under any REAL durable scrutiny, all nations would be under foreclosure. Whether declared or incipient, the system is at an unsustainable endpoint. Therefore. EXTENUATION AT ALL COSTS. Strip out the unserviceable debt load of every nation, make disappear all the forward-consumed material yet unpayed for (which can never be payed for), and what would your local world look like? THAT is ILLUSION!
All a silly game of pretending toward wealth and power differentials, while one is plummeting from a great height. What lies below, though?
Lotta super-clever people with a huge portfolio and bragging rights in Ninevah (place of fish) too. Sennacherib had a wide sway. But, In fulfillment of prophecy, God made "an utter end of the place". It became a "desolation". Too Bad, that.
Very large activities at hand, way above all's pay-grade. Unfortunately the astonishment of those self-satisfied in their ways, upon seeing the sudden shuddering halt, never makes it to the holy or history books. For some reason?
Your comments are always appreciated, Alexandre!
May the Holy Spirit continue strong in you!
I want to know why we haven't conquered gravity?
If volcanoes can hurl blobs of molten lava 3-5 miles, I want variable pitch gravity devices.
I want to defy[prove] the laws of physics. Planes don't need wings.
Yes, it would be worth it, but only if we had freedom.
I likely won't say that I'll be happy to see it crumble, but you're right, crumble it will (as it has to). I doubt that we'll learn anything out of this: just look at all the comments that are firing energy at the wrong targets- it's always "someone else's" fault, which means we just cannot accept that it's a fundamental issue that lies within eacy of us rather than what some "ideology" or "group" is "causing" or has "caused."
Or even better, implemented the Wanta Plan in 2006, and probably would have avoided 2008 all together ..
http://wantarevelations.com/2014/01/wanta-plan-macro-financial-economic-...
Even better, allowed Wanta to arrest Marc Rich (aka Hans Brand) in '93. The High Speed Rail (Maglev) would have been on schedule in '95. I seriously doubt either Waco, OKC, first WTC bombing, and dare say 9/11 would have ever occurred .. [1]
https://youtu.be/6eH4vQvpZVE
We could dream we have a time machine to go back and fix a few things ..
In a sense, we do ..
https://app.box.com/s/hfgvcqg7gqh7i27at6sv53ywu87lwarp
-------
[1] Play the Tropico 3 demo. A simulation based on a banana republic in the 60s, under threat of Soviet occupation and western corporate terrorism. A sound economy is practically immune to terrorists and terrorism. See Roger Sherman and A Caveat Against Injustice.
We're going to receive a lot of negative votes from the credit facility banker discount window parasites.
Yellen Says Fed Won't Rule Out Broker Support in Banking Crisis ...
It is impossible to normalize interest rates crushed by the FED through QE and ZIRP without also reversing ALL the results of the easy cheap computer-created money policy, ie reversing the multi-trillion carry trade, deleveraging the record-high leverage throughout the financial markets, etc.
There would be a huge sell-off in the financial markets, which will ripple through economies. A major global recession would be inevitable - depth and length would depend upon government actions, and based upon their performance we should expect the worst.
QE and ZIRP are monetary black holes - you can go in, but you cannot get out - same as for entitlement programs.
"Bad news is supposed to be bad news and this should be a healthier market than before, but the adjustment back to normal has not been, and in our view is not going to be, easy."
When the lies and fear and cowardice and more lies get all rolled-up into one sentence.
Great job, Athanasios Vamvakidis.
Ah, there is the pathetic and dangerous sycophancy...
Let the malinvestments flush out.
this article is really stupid. they feel there is a point where QE has gone too far. ANT FUCKING QE IS TOO FAR... the central bank fiat scam is too far....? where do these idiots come from? lots od people think fiat is ok as long as it is not over done or they get a piece or something...?!
Oh, you mean all those lost jobs at the Paris convention? Hold your transgender horses there pony. You missed the haystack 20 minutes back.
09Oct/Mark Carney: Breaking the tragedy of the horizon - climate change and financial stability
Discover Where Corporations are Getting Taxpayer Assistance Across the United StatesSUBSIDY TRACKER 3.0 is the first national search engine for economic development subsidies and other forms of government financial assistance to business.
http://www.goodjobsfirst.org/subsidy-tracker
I feel sick
I dunno, this makes me feel all warm and fuzzy. I am disconnected from the "market" I suppose.
All this bashing Keynes is absurd. Keynes was talking about stimulating the real economy when required, not the banker community, and certainly not buying billions of junk company bonds which noone else will buy, which is what we have witnessed. Keynesianism is what is needed now, not crony capitalism.
Keynes advocated paying one group of people to bury money in the ground, and then paying another group of people to dig it back up again.
Is that the "real economy"?
Keynes didn't say boo about the MAD system - Money-As-Debt - so he doesn't get a free pass.
"Keynesianism" is not even an economic system. It's nothing more than intellectual cover for tired Fabian state-mongering. It is no different than the old Egyptian high priests who claimed to read the sacred texts to determine what the gods wanted.
You "Don't-blame-Keynes"-ers are even worse than the "It's-all-Bush's-fault"-ers.
The crony capitalist argument. Consumer spending is 70% of the economic driver. Not banker spending. Not doling out mega billions to the haves. No consumer spending, no factories, no commerce.
Show me some consumer spending> The only cronyisms coming from Capital Hill are the restructuring of Congress.
Where's those soft votes? We'le see over next few weeks.
The Dems are scared shitless, because they know a wave of conservatism is about to sweep across all three houses of government.
BONER needs to go! He's like the Bill Gross of PIMCO, before he was ejected.
We need a stock phrase for filler text for double posts.
The FED pressed the "save" button, and all I got was a lousy double down?
I clicked the downvote button so many times it stuck.
This site is nearly unusable for the ads on it. It just freezes up the whole computer. Work and here. Not good.
Get NoScript:
https://noscript.net/getit
or AdBlock
Adblock Edge + NoScript + Ghostery is a death blow against the useless Web 3.0 "adstravaganza."
Nailed it. Well done.
The correct phrase is "shoulda knowed".
"she's a man, baby." ..m.m.
.
Lyin' Cheatin' Blues - Steve Ferguson - Mama U-Seapa
https://www.youtube.com/watch?v=rbOTtwbLlNQ
.
yea, you should have known and you should
know the extent and power of fiat money
enforced by threats and acts of destruction
and murder. there is a history of it, man.
The structural reforms have to come from Congress it's obvious that monetary stimulus alone can't do it.The gong show in Congress is amazing,not much can be accomplished in that kindergarten environment with ultra right wing tea party members at the Speakers throat.Election coming as well so I would say if they don't raise by year end it'll be never.Recssion is border line or here so she's a tuff call.But,then again we know the looney tunes in the Fed live in la-la land.
It's Looney Toons Brother. Looney Toons.
I saw it years ago, and so did Dr. Raghuram Rajan, but Lawrence Summers thought better. The President of Harvard killed America by turning the other cheek to the only move that could have ameliorated the present fallout, and future fallout.
Harvard sucks & blows.
So does Yale, Columbia, Brown, Princeton, Dartmouth, Cornell and Pennsylvania.
Janet Yellen is the patsy.
Unless the Club actually admit, it's just a Ponzi Scheme.... nothing will change, because you can't taper a ponzi scheme. The biggest problem they have right now is, the whole world knows they are just a pack of morons that have absolutely no Idea what they are doing, or how to put it right Well there is one way but there not going to like it, because it means getting rid of the Club FED. And that would be cancelling a Credit Card, you'd have to repay the 19 Trillion first.
Interesting times are just around the corner.
bang on post 10pts
Was it Max Keiser that said 'you can't taper a Ponzi scheme.'?
I don't know if he started it, but he does say quite often. It's so true.
You have to keep increasing growth with more to pay off the increasing number of players. And that spells QE to infinity squared (Jim Willie), each QE HAS to be bigger than previous QE.
If they don't QE, the Banks go Bankrupt, if they raise rates the Banks go Bankrupt and the US Treasury will also go Bankrupt. If they do, do QE the whole country will eventually go Bankrupt. The only difference, the timeline.
"we believe that excessive reliance on unconventional monetary policies in recent years has had side effects. ". No way!
The debt & credit canard...
Tyler fucking Durden.
Your wonderful website is becoming almost impossible to use on ipad, I have ipad air 2 top of the range and the ads are nerfing it. Forty, forty ad trackers for gods sake.
TWO keywords for you, plus a numerical value
Keynes[Asian directive] Marshall[European directive] 1945.
BTW, how's the job market treating you, friends, and other family members?
not going there Tyler.
https://adblockbrowser.org/
Adblock Edge + NoScript / Firefox
It also works on iOS. Arhhh.\\\\\\
How many times has someone written, "We should have stopped after QE1," or "The first QE kept us out of a depression"?
Bullshit. Conjuring up currency out of nothing and using it to buy assets is not a cure, it's a cancer. QE = counterfeiting. Counterfeiting is a crime, no matter who does it. Committing a criminal act only once is still a crime and there are still victims. And since the dollar is the reserve currency, the victims are the billions of people who aren't banking executives or the politically-connected.
As painful as recessions and depressions might be, they are not the problem. The problem is the artificial boom that makes each correction necessary. The solution is to ditch central banking and fractional reserve banking. All legal tender laws need to be abolished forthwith.
The USG should be forced to re-establish gold and silver as money and otherwise completely remove itself from picking winners and losers in the marketplace.
Of course, none of this will happen until a currency crisis throws the world into turmoil. It's coming soon enough.
If you're the real Mini Me, I'll eat a fresh buffalo patty.
Based on your command of equity and asset based markets, I'm probably going to lose this bet.
You seem to have a problem discerning the difference between currency and credit.
Mattresses are financed at zero down, 0% interest for 50 months to pay around these parts.
Fuck the Free lunch crowd. They should all be starved to death. Them and the deep state scumbags. All them lazy sick sellouts too.
SUNS A' BITCHES!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Duh! Is there any more to say?
But there's always strings .......and more strings....