This Wasn't Supposed To Happen

Tyler Durden's picture

Two words - "policy" and "error"

Gold up 3%, Long bonds up 2%, Stocks down 5% since the Fed hiked rates: This was not supposed to happen!

 

And money markets are not buying what The Fed is selling.

 

What rate hike? The market is starting to whisper about an imminent rate cut.

What does it say about The Fed when one month after they confidently hike rates (for whatever reason they concocted), the market implies a rate cut is more likely to come next.

And this is what The Fed offers:

  • FED'S LACKER: CASE FOR HIGHER INTEREST RATES OUGHT TO BE CLEAR

Actually, not so clear at all, considering the US is now in an industrial recession, although as we joked last night:

And then there was this:

  • FED'S LACKER: DON'T ANTICIPATE NEGATIVE INTEREST RATES IN U.S. IN '16

At this point we would show a chart demonstrating the "accuracy" of Fed predictions but by now that would be redundant.

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Maplehood's picture

Small caps set to open BELOW the August flash crash lows.  Ruh-roh

http://www.goldsqueeze.com/home/small-caps-breaking-down-set-to-re-test-...

 

Cognitive Dissonance's picture

"Could you bale a little faster please?" - Yellen

Bale Out

NoPension's picture

" we're gonna need a bigger boat"

mayhem_korner's picture

 

 

My probability-of-hike puts just cashed.

It's as good a thing to bet on as any, I guess.  (Red, Shawshank)

StackShinyStuff's picture

Ramping into the open I see...

WayBehind's picture

Economy tanking? It's the NRA & 2nd Amendment fault ... 

redpill's picture

*sniff* where are Ben and Timmy to comfort us in these dark times with their uncomfortable facial expressions?

Thought Processor's picture

 

 

Whoooooosh.........

 

 

And.................    it's gone!

 

 

Shocker's picture

We tried the rate hike for a few weeks and its not working.. No biggie, time to go back to 0

Job Situation: http://www.dailyjobcuts.com

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Tom Servo's picture

The rate hike was just for show, the effective funds rate still went below the "floor", so the "hike" was meaningless.  I will wager at the end of q1, the "floor" will be breached again...

 

Until they drain some of the liquidity, it's just jawboning...

 

froze25's picture

U must understand the power elite need a strong dollar to amplify their assets purchases of things that are denominated in non-dollars. For example if a Rich guy wants to buy up land in India he wants the Rupee as depressed as possible and the dollar as strong as possible. The dollar will strengthen to allow for a greater fleecing. They don't care about the markets now. The smart money has left them. Retail investors are all that is left holding the bag. Liquidity will be drained. This is the year of the Dollar.

Tall Tom's picture

You have hit the nail on the head.

 

After the announcement the Interest Rates declined.

 

The Federal Reserve HAS NO CONTROL thus HAS NO CREDIBILITY.

 

The Economic Ship of State is without leadership, rudderless, in a tempest, and heading toward the rocks.

 

And you are on board. You had best have your life jacket on and be prepared to abandon ship.

 

This is not going to turn out well for most of us.

Hephaestus's picture

One day they will ramp us right into this too.

https://youtu.be/HyULTU9smVQ

Maybe they already did and nobody noticed......

 

Casey Jones's picture

"We're gonna need someone who can not bail the water back IN!"

tarsubil's picture

I'm tooting my own horn here. I said, they have to raise rates so that they can lower them again. Yes, I said it as a joke but Yellen essentially said the exact same thing after the rate hike when pressed on there not being a clear reason to raise them now.

In conclusion, the world is apparently one big joke.

MopWater's picture

The US is "late" to the race to the currency bottom...though let's be honest, they could plummet the bitch if they needed too, and it looks like it'll be neg rates soon...a .5% rate cut may do the trick.

Alex Kintner's picture

The US Flag is a nice touch. But you are gonna need a bigger boat.

Cognitive Dissonance's picture

lol

The primary reason I selected that image was the flag.....and the pretty wood boat....and the desperate men who have suddenly found themselves in way over their heads.

overmedicatedundersexed's picture

cog, if you wanted to be accurate, you would have a picture of a guy dumping water into the boat..just sayin.

Ghordius's picture

good one, but I prefer the image of two guys dumping water in and one dumping water out. the three guys are one FED official, one congressman and one senator

meanwhile, in the other article Bill Gross writes: "Some politicians like Paul Ryan who argue for balanced fiscal budgets are intelligent sounding but relatively clueless"

that's a Bill Gross that used to make lots of money on water flowing, period

Rabbi Chaim Cohen's picture

Many of them know what needs to happen, but none of it will never happen They just know that none of it will could ever be sold to the entitlement driven hoi polloi, or the politicians who need their votes to keep their ill-gotten power and wealth.

Coolidge cut the US Federal government by 45% and stopped the post WWI depression in it's tracks, but never gets any credit from history. FDR spent into oblivion and tried every cockamamie voodoo currency and economic trick in the book and had to take us back into world war to pull out of the depression he presided over for 12 years. But he is hailed as the greatest president in US history.

Government is the nexus of our problem and government grows, period.

Ignorance helps government to grow more quickly and ignorance is at an all time high.

Dragon HAwk's picture

phhhht... there within sight of land. and don't even have their life jackets on...

FrankieGoesToHollywood's picture

That and the capitain seems to have no idea what is going on.

Arnold's picture

Almost an unlimited amount of liquidity, though.

glenlloyd's picture

you're gonna need a better bilge pump

RiverRoad's picture

The Fed rate hike was designed to crash the China market first; then blame it all on them as we bring our rate back down.

Occident Mortal's picture

The money markets will get what they're given and like it.

TeamDepends's picture

Walk it back, Mr. Yellen. Hey, why don't you go with that "possble stroke" slurfest. That was sweet!

pods's picture

She's gonna be talking like Cartman at the Special Olympics before they put her out to pasture.

pods

ymom11's picture

Business cycle is created by the fed.

Slowdrip's picture

Cramer, CNBC, right now, PRICELESS!!

khnum's picture

Last few days has not been panic selling but more of a buyers strike so its time to trot out the usual circus clowns to try and bring in some suckers,

codecode's picture

I accidentally caught the first part of his show the other night.. What's with all of his sound effects? Who is he talking to? Idiots?

And the English subtitles at the bottom of the screen.. must admit, I couldn't understand most of what he was saying..

Seriously, what keeps this show on the air? I had to change the channel after only a few minutes of him...

yellensNIRPles's picture

"Who is he talking to? Idiots?"

A: Yes

"Seriously, what keeps this show on the air?"

A: See above.

TeamDepends's picture

People love clowns. Until, that is, they grab a butcher knife and yell, "I'm Jabby The Fucking Clown!!!".

THE SOLUTION IS DEBT FREE MONEY CREATION's picture
THE SOLUTION IS DEBT FREE MONEY CREATION (not verified) TeamDepends Jan 7, 2016 9:59 AM

Nearly pissed myself :)

MsCreant's picture

ROTFL. Gacy The Fucking Clown might work better for the Fed.

The best Sun's picture

Nice one teamdepends.

People won't get angry, they will get stabby!

The best Sun's picture

If I smile any more it will start to hurt.
I'm just going to get some cash from my safe so I can be at abc gold in Sydney at 9am tomorrow for 5 more Au kangaroos.
Who is a conspiracy theorist now motherfuckers?

Mark Mywords's picture
Mark Mywords (not verified) The best Sun Jan 7, 2016 9:11 AM

When the largest portion of the shit spews outward from the fan blades, gold won't be accepted - it will be confiscated.

History tells us that.

The best Sun's picture

Oh my Boat! She sank!

My 357 magnum is still here though.

Look at how shiny the muzzle is!

Vlad the Inhaler's picture

Not only do they confiscate it, they make trading it punishable in the extreme.

herkomilchen's picture

True.  It will become like drugs.  Punishable in the extreme, but nevertheless active in the black market when and where the benefits outweight the risks of using it.

Tejano's picture

 

1933: Executive Order 6102

2016:Liberty and St Gauden double eagles, eagles and half eagles widely available - LCS, eBay, Apmex, pawn shop.....

 

What's up with that?

 

 

TheFutureReset's picture

"Punishable in the extreme, but nevertheless active in the black market when and where the benefits outweight the risks of using it."

And where there is no easier alternative that fulfills all the same functions in trade.

Notably bitcoin is more subtle to use in trade and the only alternative for international trade and money transfer in a world of hostile confiscation. It can be freely secured in any amount, and at a much higher level of security. Bitcoin will outperform gold by 10x in that scenario. 

viahj's picture

LOL, there's not enough gold or silver in the hands of the serfs for them to be concerned about.  they will focus on offshore transfers of all investments.

chubbar's picture

Bullshit for a number of reasons

1). Gold isn't linked to the dollar (frn), therefore MUCH less authority/reason to confiscate. What reason would they use? It went up too far in price? 

2). The US would be an international pariah. What would this look like internationally if the US outlawed gold (again) and the rest of the world embraced it? How about if the rest of the world actually remonetized it and the US was trying to confiscate it? 

3). Who in their right mind would ever follow a gold confiscation dictate? Everyone has seen how corrupt this system and it's administrators are. The folks with gold know this, which is one reason they bought it. What asshat would risk his life, for the fuckers who crashed the system by looting it, by following orders to confiscate gold?

IMO.