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What Hath The Fed Wrought?

Tyler Durden's picture




 

"Absent the performance on FOMC days, the stock market has gone nowhere in 17 years. If you're a believer in capitalism and free markets, you sit back and think about that statistic for a moment and ask yourself - 'have I really made any money without The Fed?'"

 

Since gold peaked in 2011, there have been 37 Fed meetings (and minutes released 33 times) and 8 congressional testimonies. Removing the 164 days covered by these events (15% of the 1092 trading days since Sept 5 2011's gold peak), reduced gold's drop by almost half to just 25%.

 

As Santiago Capital's Brent Johnson warns "never underestimate the power of The Fed" but in the long-run this is unsustainable as while The Fed has consistently forecast, promised, guaranteed that economic green shoots are showing up, they have been horribly wrong... and with December's meeting looming, their credibility is running on fumes.

We have transitioned from free markets to centrally-planned and financially-engineered markets as the PhDs attempt to control the greatest monetary experiment ever undertaken. But they are almost out of runway... and they know it as mainstream market participants belief in their omniscience is rapidly fading.

Watch the full presentation below as Santiago Capital's Brent Johnson transitions from the manipulated markets to the loss of trust and faith that is coming - "god help us all" he ominously concludes as he notes it is not important where gold trades now but where the precvious metal will trade when you do need it...

 

Source: Santiago Capital

 

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Sun, 11/15/2015 - 20:29 | 6797670 zorba THE GREEK
zorba THE GREEK's picture

Where is Volker when you need him. He got things straightened out in the 70's

It took 18% interest rates, but it got us back on track for 30+ years of prosperity.

Now we are headed for decades of calamity and despair

Sun, 11/15/2015 - 20:30 | 6797686 zorba THE GREEK
zorba THE GREEK's picture

No pain, no gain.

Sun, 11/15/2015 - 21:38 | 6797943 RaceToTheBottom
RaceToTheBottom's picture

Greenspam knows what the FED has caused.  Because he was at the front of it.  Now he is trying to rewrite history and talk up the Austrian ways....

Sun, 11/15/2015 - 20:29 | 6797676 Truther
Truther's picture

Doubel dip, triple dip, who give a fuck. Let it crash already. I am really getting notious by these Fucking Fed Mouthpiece Airheads.

Sun, 11/15/2015 - 20:36 | 6797711 PeeramidIdeologies
PeeramidIdeologies's picture

Your gonna benefit from the crash are you?

Sun, 11/15/2015 - 20:39 | 6797723 Truther
Truther's picture

Sure thing PI. Got my hoard, but do you have yours?

Sun, 11/15/2015 - 20:47 | 6797754 FreeShitter
FreeShitter's picture

I wanna test this .308 out.

Sun, 11/15/2015 - 21:12 | 6797849 PeeramidIdeologies
PeeramidIdeologies's picture

The idea of sound money continues to provide me value, no matter the price. On a personal note I have witnessed the difference between saving in a bank, and saving with PMs. There is no comparison.

Sun, 11/15/2015 - 20:45 | 6797748 nmewn
nmewn's picture

Financial engineering, social engineering, emotional/mind manipulation.

Surely another law can be passed to go unenforced, another speech can be written & given to assuage the population, giving them new "hope"? ;-)

Sun, 11/15/2015 - 21:01 | 6797811 fudge
fudge's picture

Maybe it's time to change the Emma Lazarus plaque on the Staute Of liberty to read ..

Abandon Hope All Ye Who Enter Here

:D ;)

Sun, 11/15/2015 - 21:19 | 6797882 PeeramidIdeologies
PeeramidIdeologies's picture

The hopeful and the hopeless fall into the same category not?

Counting on hope leaves one in the arms those who do not ~ Me

Sun, 11/15/2015 - 20:49 | 6797763 bamawatson
bamawatson's picture

er, uh, i uh precviously bought some "precvious metal"

Sun, 11/15/2015 - 20:54 | 6797785 Demdere
Sun, 11/15/2015 - 21:15 | 6797854 J J Pettigrew
J J Pettigrew's picture

So curious...that those never...ever...involved in the real world, the world of supply and demand, are in control guided by theories from decades ago before the reality of today's economies became established.

Japan's economy falls....and Krugman and others encourage us to do the same policies...

What better than for us to see that what Japan has done...as they began it all about 8 years prior to us.

 

Yet the Lemmings plunge to the edge...right Ben? Janet?

Sun, 11/15/2015 - 21:17 | 6797871 Yen Cross
Yen Cross's picture

    The farce, that calls itself leadership, is akin to a 3 year old walking up the steps of the " Great Pyramid".

 Where's the "European Commision" and cash for Juncker? AWAL as usual.

 Cyprus, Greece, and half of Spain are fed-up with the European experiment. The British are contemplating leaving the E.U.,  Italy is bankrupt, and their bonds are anything but sovereign.

 The Baltic states that joined the EU are the only ones smart enough to put up fences. They've been invaded and seen so many family lines erased from history, that they get a clue.

Sun, 11/15/2015 - 21:24 | 6797895 PeeramidIdeologies
PeeramidIdeologies's picture

And yet the media feints surprise. European boundaries have always been negotiable.

Hence the interest and secptism of many

Mon, 11/16/2015 - 01:42 | 6798535 Aussie Battler
Aussie Battler's picture

I know a lot of ppl were expecting a false flag to trigger the war the US so clearly wants.

Alas. The Elite/Federal Reserve is close to losing the game, so maybe they will just angrily sweep the pieces off the table (war).

Mon, 11/16/2015 - 04:48 | 6798738 factgasm
factgasm's picture

Feddy Krueger.

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