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Dudley Spooks Stocks With 'We Don't Need "Actual Inflation" To Hike' Comments
The Fed's Bill Dudley is out on the speaking-circuit today and dropped some clangers during the Q&A. Initially proclaiming that monetary policy should be independent from politics he then admitted that "The Fed can't be completely walled off from politics." Then he spooked stocks with his comment that "actual inflation is not needed for confidence on the 2% goal," or roughly translated - we'll hike no matter what the data says...
- *DUDLEY: MONETARY POLICY SHOULD BE INDEPENDENT FROM POLITICS
- *DUDLEY: FED CAN'T BE COMPLETELY WALLED OFF FROM POLITICS
- *DUDLEY: ACTUAL INFLATION NOT NEEDED FOR CONFIDENCE ON 2% GOAL
- *DUDLEY: NEGATIVE-RATE BENEFITS DIDN'T OUTWEIGH COSTS IN CRISIS
However, what likely sent stocks most lower was the promise that The Fed rate-path will be shaped partly by the market reaction... i.e. the lower stocks go the easier The Fed will be and if stocks rally, The Fed will tighten more.
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I can't take much more of this.
One thing people forget about the Fed is their enemies list is growing. They are used to the occasionally disgruntled economist who understands the rip off. They do not count. What the Fed is worried about is the growing number of businesses that rely on middle class workers to make money. The list of those getting crushed is growing and they have caught on to why.
The oil industry is furious with Fed policies and rightly so. As the sacrificial boom bust victim some of them are not taking this crap lying down.
Retailers are getting crushed.
These people are “serious” people and if they start grabbing the pitch forks shit will change real quick.
"The oil industry is furious with Fed policies and rightly so. As the sacrificial boom bust victim some of them are not taking this crap lying down."
A group of congressional representatives, representing farming districts met with Volker to complain of the damage his policy was doing to farmers. Volker told them they were not his constituents.
I wish we would already.
What's really telling in all of this are the Fed presidents (Dudley, Fisher, et al) themselves. Kinda like...Gartman.
They're mostly arrogant and clueless, haven't been right in their analysis yet because they do not understand the central problem, are lambasted each time they appear (which is far, far too often), and yet, still do it over and over.
That is very telling indeed. They are, psychologically abnormal, to put it bluntly. Obsessed with public appearances to distance themselves from decisions or philosophy within an organization that supposed to convene and consider policy as...a team.
That's abnormal.
It would be one thing if once in a great while they emerged to vent anger or frustration with a key bad call (like a coach or a player might do after a major and important contest), but, NOT over and over.
All to make tinkering statements and to expound nebulous (often clueless, inaccurate, and most unhelpful) opinions they clearly can't persuade THEIR OWN peers to agree with, thereby establishing some kind of coherent policy consistent with their those statements.
Again...occasionally, you're a politician.
Repeatedly...that's narcissistic and deeply troubled.
Were there a strong chair (Volker), this would be stopped, as it should be.
These guys need help. They don't need to engage disorders to confuse the rackets further.
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The FED is playing the game of bad cop, bad cop, bad cop, bad cop....
Dudley needs to borrow Yellen's weasel word generator.....
I wish my wife was as gullible as the stockmarket robo's are...
Send her to Harvard for a degree in economics.....
What where his Hands doing when he made that statement? Not playing with his old fella, was he?
LOL, more Fed doublespeak and lies!
Ah the smell of desparation.
Time for some serious retribution motherfuckers!
Dear FED. We don't believe you. Quit it with all this jawboning BS. You can't hike rates even 0.25 points.
EM will suffer. Industries like utilities and commodity producers will suffer.
Oh, and the US can't pay.
I call BS. Now, get back to work buying treasuries. Bitch.
Instead of calling them markets, we should be calling them FedSpeak. Or FedBS.
The perfect storm of utter, total BULLSHIT!
Trading futures on interest rates has never been easier. No rate hike while Obama is in office.
Legacy building one cunt at a time....
To think that these assholes are allowed to continue this charade on a daily basis just proves how fucked up and retarded the people who call the shots truly are.
I feel like the next few moments of my life would be better used by beating off to my avatar instead of reading THIS FUCKING BULLSHIT.
So that's what I'm gonna do.
See ya in two minutes.
(Toaster pops ) ok done...lol
sorry need a bigger pic
right click > search google for this image
Christ, just let it all burn already.
Goldman needed muppet cull! Profits were down from killing muppets last quarter.
right now the inflation expectations are like a kid with a ruler drawing a line underneath the bottoms on the chart. in yoy comparisons the drop in energy is going to fall off the chart in january which means you no longer have negative inflation in energy after january. the rest of the inflation chart is 2% or better, so they are pouring the victory punch right now, (target 2%) and the stock market is sticking in a straw too. they want the fed to get control of the message. after all low energy costs are good for the economy especially when they are permanently low. main street will see credit tightening but the investment banks will have plenty of helicopter money, we just had the 2008 redux, did the world end? are you out of margin, (heres the reverse repo money to tide you over, buybuybuy) dow 20000 next year and hillary gets a makeover, do you suppose obama had anything to do with this?
These fuckers love screwing with the "market" and everyone else aroung the globe. They sit back and jerk off watching the reactions.
Then another one of the un-fed retards pops their pin head out and blathers on a 180 degrees the other direction. Then it is his turn to jerk off.
In a nutshell they are all a bunch of jerk offs that do whatever the hell they want.
Con-gress could put a stop to their bullshit... but they won't turn on their owners!
Banksters Inc. rules.
They will not raise rates in real terms because THEY CANNOT DO SO WITHOUT CREATING A DEFLATIONARY CURRENCY COLLAPSE...WORLD WIDE.
2008 happened not just because some bozos didn't pay their mortgages. It happened because we have a currency system based on debt. Currency is a check written by the central bank, drawing on a unit of debt held by the bank.
But the debt bears an interest rate, and the currency based on it does not. Therefore the debt always exceeds the currency existing with which to repay it. ERGO, it can't be paid and never could be. Instead the face value plus unpaid interest is rolled over, again and again, with the side effect that the accumulated interest become an ever-larger part of the debt...until eventually it grows too large for the economy to service....at which point default is INEVITABLE.
Because if there isn't enough money in the world to pay a debt, the debt will not be paid.
I say again, if debt can't be repaid, it won't be repaid.
The world reached that point sometime in 2007, and realized it in 2008. And nothing (NOTHING!) has been fixed yet.
Instead, governments and Central banks have been doing QE...which is to say they've been printing money, which expands the problem, but allows the maturity date of the unservicable debt to be delayed.
At some point it will no longer be possible to delay, and then governments, central banks, and the entire banking industry based upon this debt-denominated system will be liquidated.
So.
They can't raise rates, because at near-zero rates they already have to print money to break even. And not breaking even means currency, central bank, and governmental financial collapse.
They can revalue physical assets they own upward enough to back a new currency, and then allow the bad debts to be written off.
Or they can allow a deflationary collapse.
Or they can print money to avoid the deflationary collapse until everyone loses faith in the monetary system...at which point they get an inflationary collapse.
Or, because 'theoretically' the debt gives them theoretical ownership of the majority of the world's assets, they can intentionally collapse the currency, and then demand serfdom in payment of the unpayable debts. (Good luck with that bankers, you don't have the physical force needed).
Or, they could be totally mentally unbalanced and believe that technology is a replacement for humanity rather than an extension of it...and try to exterminate the rest of us...which will eventually result in the end of humanity... Because they're wrong. A tool does not replace a human, but only extends the productivity of his labor, and can be nothing else until machines are able to live, progress, and reproduce all on their own...at which point the machines will not require the bankers in any case.
There is no exit from objective mathematical reality...
Fed never had a way out, which I've been saying for, oh, about seven years. The banksters have painted themselves into their own bond market corner.
There is no Plan B. The Fed cannot move off zero, therefore, short of a major currency crisis, it will not move.
Engaging in a ludicrously hawkish pose that no one with a brain takes seriously for even a second is necessary only in order to perpetuate the fiction that there is some sort of debate underway. I do not think there is any debate because I do not think you can unwind a pyramid scheme without causing a crash and no one in power is ready for a crash.
The banksters have no market deep enough in which to unload their book. They can rig the market but they cannot exit the market.
The Fed has, in effect, already lost control...
"ACTUAL INFLATION" vs "?????????" I guess when if you don't live in the real world and can print your pay cheque at will, it doesn't matter what inflation is.
was that bill "no equity put" dudley speaking? lulz
They're backed into a corner and have to get off of the zero boundary.The longer they stay and fail to normalise the greater the pain down the road.It is a problem for big government to stop their wars,reduce their imprisonment of people and so forth.I only hope they put interest rates up in order to stop the zero interest rate political corruption.
So just so we are clear...ZH articles have no effect on stocks?
Then fucking hike already, assholes.
@Dudly - shut the fuck up fool.
Won't see a rat ehike in my lifetime; I am sure of that. I suspect we'll see all sorts of stealth QEs to prop up stawks and house prices as moar jobs are cut and lost to Asia or other cheap labor countries. Plus, ad din the hundreds of thousands of poor people Barry is letting flood in and the future for the American citizen looks gloomy.
More bullshit from the mouth of Elmer Fudley Dudley. Hey Dudley, go fuck yourself!
The laughable part is that the core CPI as of this morning is running at 1.9%, basically at the Fed's 2% mandate. Remember, when they switched from CPI to core CPI to show lower inflation/volatility. Then, they switched to PCE which never shows inflation because inflating goods get removed. Joke.
Can someone explain to me what the hell the difference is between 'inflation' and 'actual inflation'??? These people are just throwing anything at the wall at this point, hoping something sticks.
lol,, Inflation is "natural fiat inflation". Actual inflation is Viagra (QE) inflation. Sorta like steroid inflation; which we all know,,,doesn't exist.
AM I Clear!! AM I CLEAR???, Crystal.
He obviously spooked them higher!
SPX thru 2020. Let's see how it closes. 3:30 ramp to start in 5,4,3,2....
Look at those puppies flash green.
How much further can this go on?? How fucking stupid does Folgers think we are?? I go in to buy what used to be a large can of coffee. I can no longer remember how much it use to weight. Now I find this fucking plastic tub of coffee, the new one, sitting next to the old one. The new one is one inch shorter and weights 24 oz. The old one weighs 32 oz. They are both priced the same. The old price was 8.99, the new price is 8.99. REALLY, FUCK YOU FOLGERS. FUCK YOU CENTRAL BANKS. And fuck all the bullshit government and media for your fucking bullshit lies. If you don't think the America public sees this and is on a slow boil you are as stupid, well, as stupid as you are.