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Yellen Says Negative Rates On The Table "If Outlook Worsened"
As the market now diligently calculates the suddenly surging odds of a December rate hike, here's Yellen with a preview of what will happen once the rate hike cycle is aborted...
- YELLEN SAYS IF OUTLOOK WORSENED FED MIGHT WEIGH NEGATIVE RATES
- YELLEN SAYS NEGATIVE RATES COULD HELP ENCOURAGE BANKS TO LEND
... just as it was aborted in Japan in August of 2000 when the BOJ also decided to send a signal how much stronger the economy is by hiking 25 bps, only to cut 7 months later and to proceed to monetize not only all net Japanese debt issuance a decade later, but to hold half of all equity ETFs.
The good news:
- YELLEN SAYS SHE DOESN'T SEE NEED FOR NEGATIVE RATES NOW
- YELLEN SAYS FED SEES ECONOMY ON STEADY PATH OF IMPROVEMENT
Because when have the Fed's forecasts before ever been wrong.
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Worsened......SPX close below 2000; or perhaps more of this?
http://hosted.ap.org/dynamic/stories/U/US_TARGET_STORE_CLOSINGS?SITE=AP&...
You go girl!
It's moments like these where I get a bizarre urge to yank all my clothes off, like a crazy person. Now I understand that they're not the crazies!
but the other side of her mouth - the droopy side - was just talking about raising rates a minute ago...
i guess that means when you average that out they'll stay where they are now.
Wow. The bitch cant decide to raise rates or go negative. She has no clue whats going on.
Amazing we are even talking about negative rates.
This economy... who knows what is going to happen
Layoff / Closing List: http://www.dailyjobcuts.com
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i called it weeks ago when they were talking it up on Bloomberg radio... just like any other reptile these kikes have to put out "feelers" in advance of any big move
Yellen’s rate rise comments sent the markets lower, she flips to NIRP to attempt to change the direction.
Welcome to central planning
:. We Will Have Negative Rates
Your wish is granted Janet! Long Live Jambi!
This is the only statement the fed has made that is semi believable "negative rates"..
A believable statement because negative interest on a $20 Trillion debt has such a nice ring to it....
Wake up!
We're barrowing to make payments on barrowed money!
We cant pay our debts, let alone interest on it!
How do you go from raising rates in one breath to negative rates in the next. Easy, you know you are going to raise rates and that is going to cause the economy and markets to tank. This will give you the cover to ban cash, push rates significantly negative, or the E Dollar. Never let a good crisis go to waste after all.
The markets will fall, but the destructive event, triggering a market crash, will be US defaulting on it's debt if interest rises...
There will be negative rates as a natural function of passing an unlimited debt ceiling
Most likely, purposely!
They know the debt is unplayable.
The rest of the world is waking up to this fact.
US Default is inevitable,
and no Politician nor Magician can avoid stop it!
With the FED holding half of treasuries outstanding I think they have A LOT of room for accounting gimmicks if there is some force that prompts a rate change. The "interest" we pay to ourselves is through the FED held debt notes that is deposited to the treasury. It is likely more than half of the interest paid on the total debt as post operation twist the FED should be sitting on quite a bit of the longer term debt that was issued pre ZIRP.
Didn't work because the market only trades what it sees right in front of it. 2-3 months ahead.
Oh they have a clue what is going on, they are the ring masters of the circus.
What they are lacking, completely, is.....
CREDIBILITY !!!!!
Come on man. I get sick of the Keystone Cops meme. These people know exactly what they are doing and that's paving the way for a cashless digital global currency. Call it SDR or Bancor hardly matters. They will link it to gold and maybe some basket of currencies if any are left.
You didn't get the message that gold is a pet rock?
Apparently neither did the people of India, China and the rest of Asia or most of the worlds central banks. Funny thing that. Central banks have a rather impressive collection or dare I say hoard of "Pet Rocks".
Link it to gold? What the hell for when inflating the money supply is the only thing they know how to do? But I agree, of course they KNOW what they are doing. George Carlin said it best.
I have to admit I'm SUPER curious how regular people, in particular the elderly on fixed incomes, will react to negative rates. Something has to wake up the populace to the madness. Got gold, silver? Bitcoin if you trust it.
If I notice a loss in my savings that I did not approve I will call and report the theft. Everyone should do this on an announced day.
Hmm, I could see that being an effective media stunt to bring attention to this. Someone should roll that out. #NegativeRatesAreTheft
Who will you call? The people on the other end of the line work for the banks.
I’ll call twice???
I will call as well, right after I finish withdrawing any cash I have all in nickles. All 10 cents of it.
You are?
If you were holding on by your fingernails with SS & rates at 4% to 6%, then you are dead now (selling shit (stocks) cashing out (annuities and other financial garbage) homes, boats, cars etc.)
PS: don't forget to observe the operational rules when multiple parenthesis are used. Thank you.
You forgot real estate, art, other hard assets and especially cash (stuffed in a mattress.
Cash in a mattress isn't worth shit when the cash isn't honored. Think Zimbabwe and Weimar Germany.
My official reply from AARP when i asked their view of Fedpolicy....."nothing, we do not lobby them as they are independent."
The sheeple will baaaaaah. You will never be more powerful as you are now.
I can be ok with that. Imagine a market where fed rates are forever fixed. And actually force the US gov to look at its own fiscal policy for once rather than just kick the can.
With that kind of thinking and a few graph cartoons you could get a Phd in Economics!
:-|
The patients are on the loose, and they are running the insane assylum.
That's really unfair to Insane Asylees.
She can keep babbling on all she wants and say they are going to raise rates, then go to NIRP.....fact is they won't change shit come December.
yep lets raise dem rates right before christmas. Blow up dem derivates just in tme for christmas
Let me see if I have this right. First they debase the currency through the built in mechanism of fractional reserve banking. Then they want to charge people to deposit this debased currency into their care by way of negative rates. Kind of economic double jeopardy. Fuck 'em, I'll stick the fiat under the mattress and bury the PM where nobody can find it.
They can pretend all they want, but in a debt based monetary system where debt grows exponentially NIRP in one form or another is inevitable.
Yet the headline here just this morning was all about the "hawkish" FED.
wtf...
until producers of real things can no longer deliver or everyone dumps the underlying currency, yes. This time it is global Weimar however.
Wasn't the Roman Empire perceived as global at the time?
And that my friends is the entire point of all this. To roll out the SDR with the IMF or BIS as the white knight of responsible prudent banking. Not like that nasty nationalistic FED and those naughty banks like Goldman and JPM. People will be shocked at the scapegoats for this. All sleight of hand to lend legitimacy to the new global cashless electronic currency system.
Good luck with that as it will still not provide the consumable calories required to maintain the status quo, period. That's just math and the laws of Nature and physics.
Maybe after WWIII when the population has been sufficiently culled, but that's going to take a while.
I agree that current energy forms are insufficient and that current population with growth is unsustainable. That said I'm pretty sure what I outlined is the financial part of the plan. As to any incipient genocide I cannot say. I certainly don't put it past them.
The William Dudley at the NYFED works for the BIS. He is central in these NWO and SDR plans. I think you are spot on, and their plan is to kill billions of us via war, starvation and other assorted plagues and man made viruses.
Good times!!! :/
You got it wrong doc. This is a fractional reserve system, at least nominally, the banks go belly up when the rates go negative. The only cure from here is hyper inflation, you cannot deflate your way out of debt. You have to inflate your way out.
until?
Unsustainable
I'm turning Japanese, I think I'm turning Japanese, I really think so!
Shut up, shut up, shut up, shut up and dance.
Track 5, side 1 from the 1980 LP 'Pearl Harbor and the Explosions'. Nice reference Mr. Universe!
I prefer the Skankin' Pickle version...but the reference is dead on.
What the fucking fuck, jan? Are you trying to drop or pop the USTs?
Ending to her next televised rant:
Must.... suck... all... wealth... from... goy... (thump).
Hey.. Yellen follows draghi's!!
Let's play casinos again mate! DA BOMB is coming!!
cool...
i think i'll liquidate some Silver and take out a CD with BOFA...
Equities are back at all time highs!!! Employment is back under 5%!!!!
LMFAO!!!!
What does this criminal cunt know that is contrary to EVERYTHING the MSM and government has been saying?!!?!?
Raise the FFR already!!! You can do this WITHOUT raising interest paid on bank reserves!!!
Do this you fuckers or face the fucking guillotines!!!!!!
Given market hunger for Yellen to prove she's got balls (?!), the Fed raises by a quarter point. Doesn't really mean jack shit, but everbody gets woozy at the testicular confidence and stox and $ soar.
Of course, the strong $ stresses US corporate profits, and the rationale for offshoring increases. US economy stalls, and the whole goddamned Fed-led CB crowd does its 3-ring parade for a few more years.
This whole fucking QE, NIRP, ZIRP experience is unworldly and sickening. They won't let markets correct until the correction is apochalyptic. Who the fuck ever thought people were so dumb?
Abolish the Fed and all its sycophantic imitators.
No doubt about it, these cocksuckers will go NIRP for sure, bet your last fiat paper on it!
The whole thing is a set up for it.
They will go full retard!
Jack said so... because Banksters Inc. said so!
"maybe, maybe not" "maybe, maybe not" "maybe, maybe not" "maybe, maybe not" "maybe, maybe not" "maybe, maybe not" "maybe, maybe not" "maybe, maybe not" "maybe, maybe not" "maybe, maybe not" "maybe, maybe not" "maybe, maybe not" "maybe, maybe not" "maybe, maybe not" "maybe, maybe not" "maybe, maybe not"
I'm sure I saw the puppet strings this time...
Holy crap. She actually said it. Graduating from pages of ZH to Yellen's mouth. NIRP shit's getting real.
Just record this meeting and play it at the next twenty meetings. Save a lot of time in repeating the shit every time.
The less we use their paper. The more value our labor will have. Take that stack and barter with it.
Shoulda never taken that fucking paper in the first place.
Let me go on record as saying that I'm shocked, shocked to find that gambling is going on in here.
Lend one dollar. Get one for free!
Just fuken make everyone a millionaire already
Fed target rate charts are full of shiiit!
kessler knows what he is talking about.
keep hating treasuries, that's why they will continue to do well.
In other words, all you people who work hard and are able to save a little after federal, state and local government take 40-45% of your income all told {a hair less than the rate in 'socialist' countries where you'd get free health care, cheap drugs and a month vacation, but that doesn't matter - we need to police the world, of course}...
you people are being selfish and greedy by not "investing" in a market absolutely manipulated by the people making the most from the volatility - and hey, if you think Warren Buffett's effective rate is too low, you're a fucking "socialist" who wants "redistribution of wealth" so - prepare for another stealth tax, working stiffs, in addition to the real world inflation that is raping your post-tax dollar on the other end.
the spice must flow.... funny how it's never "redistribution" when it comes disproportionately from people whose wealth is mostly from work income/wages.
Very well said!
I really don't get how the american people can still eat the shit that is spoonfed to them on a daily basis, it's so damn obvious even fucking Mr. Trump could spell it out: Yellen is not acting in the interest of the american citizen!
Inflation is already here, look at food, housing, rent, stocks, ... now with NIRP you will not only be unable to save money while getting a little interest, no you will actually have to pay for not consuming your shit all at once, more or less directly paying the people taking out cheap loans. At what point are we going to stand up to this bullshit? How is this ever NOT going to utterly fuck up our country?
Nothing gives off that recovery smell like negative rates.
Things are so great that we have to resort to NIRP! What a fucking fiasco!
We had to burn the village to save it...
What a lying Bitch! How the fuck is me paying the bank to hold my money going to encourage them to lend me more.
If you want to encourage banks to lend, stop paying them 5% and start charge them interest on the money they have on deposit with the Fed. You'll see that shit fly out as loans to filthiest of dead-beats.
"What a lying Bitch! "
Oh, the horror of it,,, A Bankster lying!
If I can borrow money at negative rates, I'll borrow as MUCH AS FUCKING POSSIBLE!!
So the market went parabolic on what? thin air as usual, as there was ZERO volume. These people are fucked up...
Janet Yellen, from February 22, 2010:
http://www.reuters.com/article/2010/02/22/usa-fed-yellen-idUSN2222725320...
Once that happens, our "future" will most likely resemble this:
http://www.businessinsider.com/sweden-cashless-society-negative-interest...
Björn Eriksson, a former head of Sweden’s national police and now head of Säkerhetsbranschen, a lobbying group for the security industry, is cynical about the banks’ motivations: “It’s in banks’ interests to reduce use of cash. They take fees for card payments, not cash payments,” he says.
ZH headline on Drudge. This will get interesting very fast.
Lol as soon as I saw the headline on drudge I thought I better copy and paste it to zerohedge in case you hadn't heard Mr. Yellen's latest announcement. I shoulda knowed
Barack Yellen says negative rates? How the narrative has changed in a few months.
YELLEN, YOU'RE A LYING FUCKING CUNT!!!
Months my ass. It changes every fucking 5 minutes.
Adjusted for inflation we have been in negetive rates for years now. The second we went below the inflation rate of 3%.
We are measuring with a variable.
In case anyone wants the inflation numbers the way they used to be measured before inflation number was hedonically adjusted out of existence here it is. http://www.shadowstats.com
In case anyone wants the inflation numbers the way they used to be measured before inflation number was hedonically adjusted out of existence here it is. http://www.shadowstats.com
Yeah, but that's invisible. The sheep don't see it. NIRP is in-your-face.
Depending on the banks, as they might decide not to charge private/small customers and take the small loss, while recouping the money via higher rates on new loans. Which would have the opposite effect the FED intended, as higher rates on loans are not going to encourage anyone to take out more loans.
NIRP is lunacy, it makes no sense except to further fuck up everything and transfer more wealth while the bottom 99% still have anything to steal from.
Inflation has been a lot higher than that for a number of years now. I've been expecting to see hyperinflation for a while, but we have a number of central banksters working together for the collapse of the dollar for a while now... But watch out, it's comin'.
its duck season,it's rabbit season
"Hey. howcome youcan makum snoballs in summer time?"
"Well, you see Janet-o, snow's too cold in winter."
"Ohhhh, sno too cold in winter..."
The Jew World Order.....welcome to being broke.
NIRP = game over
And nothing says NIRP like declining PM prices LOL.
It's seriously insane. A testament to people's ignorance and inability to connect dots. In reaction to the mere mention of NIRP by Yellen, gold should be soaring, through the roof.
The deer saw it coming but didn't move anyway. No rate hike for 9 years and now NIRP incoming, if by now you're not thinking about stacking PMs you just have no clue about money or the economy.
Fuck that sadistic bitch idiot.
Dont guess about how main street will treat your real money. Go and see for yourself.
This question is for all the experienced market vets out there: If the fed raises, do the other central banks around the world tend to follow suit and will stop cutting rates? I know these are unprecedented times but is that what typically happens?
Gotta keep the farce going until the first "black" president is out of office.
+1000 for the truth...
Standard Disclaimer: In my world, which I admit is a bit twisted and dark sometimetimes, children whose future was stolen by Bernanke, Yellen, and Obama would be lining up to swing sticks at their rotting corpses as they swayed gently in the breeze from the ropes around their necks...
Them children going to be working McD's 9-5 after legal working age is decreased to 12, it's either slave labour or the pen. The police got this, what I call treason will get you a mansion instead of a rope.
I like your world but sadly it's just a fantasy world.
Strange fruit indeed
-lol....
i think my target of 1.5% for the 10 year yield will be....
too high !!
Denmark went -0.2 in 2012. Sweden went -0.1 earlier this year. No real + or - impacts but both relatively tiny economies. However, in the US, many things to think about.
Moar bank borrowing.
Fee crazy banks (or as hep cat Obama says "cray") and guaranteed those would never disappear after rates resume upward. See, the banks aren't being compensated for risk through the Fed, so hey Mr. Consumer - YOU COMPENSATE US FOR RISK NOW.
A lot of hard assets will look pretty safe compared to excessive fees on deposits.
Nothing like a little chaos to get moar money to the banks.
MISSION ACCOMPLISHED, EH YELLEN?
I think Denmark and Sweden never made the small bank customer pay those rates on (small) deposits though, they still got 0.01% yay lets party
Us $ is going up,up and away
Remember, the velocity of a dead currency is in fact zero.
Use that stack in real trade and its value will go up so fast that the money changers will start jumping off tall buildings.
Stop playing their game.
old Yeller
How'd that turn out?
The Fed is even more devious than I thought. I can see the headline: Fed *Raises* Interest Rates by -0.50%!
In other news, most Americans cannot do math involving negative numbers or fractions...
Use that stack or lose it.
lol,,, we deserve everything we get for leaving these trashy thieves in control.
Here come the DrudgeReport folks...
She can keep babbling on all she wants and say they are going to raise rates, then go to NIRP.....fact is they won't change shit come December.
Her actions remind me of the mindset of someone with Bipolar Syndrome.
What a criminal, we already have negative rates. With everything rigged there is no way to preserve your wealth, all according to the plan to bring this country to it's knees, with no resistance.
Only gold and silver will retain as it always had for centuries.
And to a lesser extent copper and nickel. I've been saving all pennies minted 1981 and prior due to 95% copper and saving all nickels as the mint is looking to change the composition of the nickel (it could be steel). Notice the nickel is the only coin that it costs the mint more to make than it's face value, also the last coin composed of a valuable base metal.
http://www.coinnews.net/2014/12/15/us-mint-not-recommending-new-coin-com...
2 years ago I said Jumbo Jet Janet will go NIRP before she ever ends ZIRP. She has a deep fanatical belief that easy money solves every economic problem when it only makes it much worse. She'll keep printing money like there's no tomorrow and she's guaranteeing there won't be a tomorrow for young Americans.
"...there won't be a tomorrow for young Americans?" Won't be? There already ISNT.
I am thinkin it wont be easy to track real money thats being used in organic trade. Kiss MY ass Jannet.
Yellin will do exactly as told.......by you know who. No way, the WH is going to let the economy collapse, on His watch.
Obama would love to destroy the USD. Go negative rates and QP (Quantitative printing ... don't even buy the Bonds just print! Now why didn't everyone think of that? )
x snake, you've got the chain of command all wrong. The top is the BIS all the way down thru the IMF, and FED, and Banksters to the very bottom, the Congress and B.O.
I'll start yanking cash out of the bank and f'n collapse it.
I can make a 'run on' situation with the best of them. sonofabitches
Whatchya waitin for , a bank holiday?
Make cash illegal so we can have a revolution already!
b/c it's worked so well in other countries...?
The EL-ite Scythian kids of Japeth. What a pleasure these people have been through the milleniums - all the way back to Sumeria.
Never mind, gold and silver both down, time to stock up again.
BTW New Chinese panda designs are out, metric weight confirmed...
https://www.youtube.com/watch?v=Di42QtXqjHY
Stack on
Im thinking farmers should set the price on gold and silver.
Game Over or The Case For The Next QE and NIRP http://forum.prisonplanet.com/index.php?topic=292485.0
So alot of people here do not make the connection. Yellen is under pressure from the Obama administration to keep the interest rates down so Obama can look good to all of his moron followers. The thing I see people miss completely is that Obama appointed Yellen and that he has the power to hire and fire "at will" the head of the Federal Reserve. So of course he is behind this.
So 7 years of record bonuses for the criminal on Wall Street...and they still need to steal more!
Hey STUPID FEDERAL RESERVE....THE STOCK MARKET IS ALREADY AT A RECORD and it is killing the 90%
Insanity. All in the name of driving stocks higher to make up for never allowing price discovery back when it was possible.
I just finished a pretty thorough look at how USDJPY and CL-fueled algos have driven US stocks higher, with a focus on the past five weeks in particular. If you'd like to better understand the daily machinations that allow stocks to knife through overhead resistance, have a look.
http://pebblewriter.com/how-they-did-it/
The countdown on the "USD clock" to Armageddon had finally begun!...
How much longer will they be able to keep the patient alive after that watershed announcement?!!!
Like it is actually her decision...
Nancy Pelosi:
We have to have negative rates, so we can earn interest on the National debt!
Hahaha...
Cash is trash - everything you were taught about as a kid about saving is trash.
Fiat = constantly degraded and debased like a corner street hooker.
Obama just got NO debt ceiling, cant he buy the last year of his term and exit to Hawaii
Or return to his state of citizenship, Indonesia.
Maybe they finally decided today for the US to go for a big war which will need more debt. Banksters went all in.
Here are some signs of a coming recession.
1. Business loans for M&A not CAPEX.
http://www.zerohedge.com/news/2015-10-15/there-goes-final-pillar-us-recovery-loan-growth-paradox-explained
2. Factory orders continue to drop
http://www.zerohedge.com/news/2015-10-02/us-factory-orders-flash-recession-warning-drop-yoy-10th-month-row
3. Default risk spikes
http://www.zerohedge.com/news/2015-10-02/us-financials-default-risk-spikes-2-year-high
4. M&A set record
http://michaelekelley.com/2015/05/29/mergers-and-acquisitions-set-record/
5. Fed sees 2 bubbles
http://michaelekelley.com/2015/02/20/fed-warns-of-two-bubbles/
5a. Commercial Property higher than pre-2007 level.
http://nreionline.com/finance-investment/cre-prices-are-now-officially-above-pre-recession-peak
5b. Global Corporate Debt Market hits $5 trillion.
http://fn.dealogic.com/fn/DCMRank.htm
Here is how to prepare.
http://michaelekelley.com/2014/10/16/8-things-to-do-when-recession-happens/
Here is how to get your mind off this stuff.
http://michaelekelley.com/category/humor/
Good luck!
It's our patriotic duty.
I hope that if they pull NIRP there is a MASSIVE bank run. I will be withdrawing all my cash. It's what they deserve. The Fed which which was created to be lender of last resort and prevent bank runs actually causes the mother of all bank runs because they decided that to make the economy 'better' it was important to explicitly steal from the bank accounts of workers and savers. Why? To push assets like stocks, bonds and real estate up even more??? WTF are they trying to achieve?
It is stealing. It is a crime. It is a tax and we know that raising taxes and abrogating property rights are never good for the economy. It is why Obama and company are deperately trying to disarm everyone.
They should be fired and/or jailed for even discussing this. If they aren't going to respect property rights, they have no business in power in a free country.
Bring it on but of course not before the Predators have shifted their wealth in other denominations. Hard commodities unperishable yet accessible and heavily guarded across geographies and far way from the flames of anarchies from angry mobs ? Eg: Indonesia with its vast resources is ripe for a puppet government and military bases. The cherries on this pick is the vast underclass who do not give a damn as to who is the Mafia in town. Paradoxically. it will get more peaceful i.e. without the likes of ISIS when subsistence drips just a bit more from today are dispensed. (Many other such places elsewhere in which I am not competent to name as I am not in their regions. Of course, China is not blind in which the Predators have to jostle or appease).
ben to yellen..I do not understand the hate the people have for us.
yellen..I do not as well. we have the best in PR and propaganda.
ben..It is almost like the common folks do not understand without the fed.."le deluge"..
yellen..yes yes, they do not understand the good we do.
ben..keep working yellen for the glory of the empire..we feed and clothe the people, we keep them warm and safe at night..they are ungrateful worms.
both sleep well at night knowing they never did anything selfish certainly never criminal.