Here It Comes: New York Fed President Says "If Economy Weakens Further, Would Consider Negative Rates"
Remember when the Fed's dots - less than a month ago - suggested there would be 4 rate hikes in 2016? Ah, the memories. Well, you can not only forget that (now that the market is estimating the next rate hike will come in October if ever), but it appears that the Fed will follow Kocherlakota's advice after all and not only cut rates (the possibility of a January rate cut now is 10%), but will pass go, and collect negative rates:
- DUDLEY: IF ECONOMY WEAKENED, WOULD CONSIDER NEGATIVE RATES
After today's atrocious, recessionary data, one can be certain that the Fed is furiously considering negative rates.
While the comment came from the Dudley Q&A, his full speech can be found here.
And just to add confusion, here is a spurious Bloomberg headline which will hardly aid matters:
- YELLEN SAID IN 2010 JAPAN-STYLE DEFLATION `WORST-CASE SCENARIO'
So both NIRP and more QE, just as anyone who is not a tenured economist or drama major predicted.
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It. Won't. Work.
First NIRP then the elimination of the printed dollar, i.e.-cash
Everyone pays the NIRP penalty (tax) when their is no cash
Do it you weak fucks. If it doesn't work after 7 years, we must need more of it to make it work mOAR. /s
Fed needs to be kicked in the nuts for a wake up call that their policies don't work. Keep rates lower longer and you'll get massive inflation over what you already are seeing, and it's out there, then you will have a revolt by the people and you will bring even more pressure on the fed. worthless egotistical idiots they are.
It really is silly, all this code... Wouldn't it be nice if, just once, they came out and said: "We don't want the market to go down any more. It makes us look totally incompetent. If the S&P 500 goes below 1856, we're going to prop it up with every tool at our disposal, including reversing that ill-advised rate hike and manipilating the currency, bond and futures markets. We will do our best to punish anyone who shorts here."
so that would be negative rates for the masses...and what? +1% on excess reserves? which btw, citi today admitted most of its 'profits' in 2016 will come from excess reserve interest. the banks will certainly have all the cash to buy (or lend to their friends) all the collapsed assets come 2017.
It makes us look totally incompetent.
that is because THEY ARE incompetent....
should be nominated for the noble prize in chemistry....
converting the economy into shit
Yellen continues her rate hike QE until she has every investment dollar or currency in the world. she corners the global currency float by offering 1/2 point positive rate return. the dollar goes to infinity. then we hand it all over to the IMF which issues new SDR according to OUR plan. but know this there is no NIRP, there is NIR but its not their policy.
This BS hasn't worked for 7 years unless you are long the stock market. Everyone one of us are seeing our insurance premiums explode higher and a large part of it comes from the fact that 7 years of ZIRP has decimated the bond portfolios of many insurance companies. They used this cash flow to remain competitve and now it's gone due to their portfolio yielding low single digits. Think about what negative rates will do!
These financial terrorists are only concerned about the stock market. Every American is being bled by the banks, higher food costs, higher health insurance costs, and these idiots want to make it worse!
amen
It is time to supplement and improve upon the term 'presstitute'. May I humbly offer the term 'goy whisperer' as the latest round in our verbal arsenal?
Straighten me out here...doesn't having zero as an interest rate screw up the computer-math?
I seem to remember hearing somewhere that having zero as a multiplier (or whatever..) gives results as 'errors', because the system can't handle it.
But they said that about Y2K too, and that was nothing.
I don't understand it, personally. What difference would it make? The number is the same, just with a negative in front, right?
All right...there's got to be some effect of suddenly introducing a negative value to the system, which has never seen such a thing before. And which was certainly not envisioned by those who set the system up...What am I missing here?
As every regular ZH reader knows, I've been predicting QE4ever in 2016H1 if not 2016Q1 for months. Of course QE4ever will not help the real economy... obviously.
The only thing that would help... somewhat... is to print $250,000 debt-free fiat dollars for everyone on the planet, and give that as a gift to each individual on the planet, tax free.
Yes, that would royally screw everyone with currency savings in USD (because the dollar would drop 30% to 60%), but at least the endless debtors could pay off most of their debt. Then, of course, debt for anything except expanding successful businesses must be ended, so the same debt saturation pattern doesn't repeat.
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Of course, I don't suggest any of the above... the above is what someone who is smart but believes in fictions would do. The real solution is to exterminate all human predators, which means everyone in "government" and "central banks" and "large financial corporations"... for a start. And, of course, dissolve those fictions.
YES follow the money, and ask "Who benefits?"
Deep state making a killing on heroin and vice trades for hundreds of years.
Own quite a bit of the land in the world plus modes of production.
Maybe they don't need 90% of us.
Perhaps they are going to move toward a fully totalitarian state and negative interest rates are just the beginning.
The ACA has the precursors of complete death panels written into the law.
A doctor can now legally take away your 2nd ammendment, your children your life.
The lawyers will draft up the paperwork.
You will be enslaved and your children sold on the open market to paedophiles.
That is their plan. These "people" are monsters.
I highly recommend ZHrs read or watch youtube videos summarizing David McGowan's "Programmed to Kill" and more "Programmed to Kill" and perhaps "The Franklin Coverup".
It apparently started with Operation Phoenix, hell William Colby ran PSYOPS in Vietnam and then became CIA director.
These mass murderers came home.
In the USA we did not have "serial killers" before this time
ITS BEYOND TIME TO WAKE THE PHUCK UP PEOPLE
They didn't think Obama's legacy would face too much harm after what he said about our strong economy. Gotta make room for the next best liar.
They could trick everyone into thinking that deflation is good.
Not to worry
More importantly, the Fed, at this moment, is concocting all the data they will release in 9 months which will proclaim the recession over and begin the bull march to Dow 20,000.
Cashin will let you how much further down it's going to go before you can load up on calls.
oops /s
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How can we have rising commodity prices, for years, CPI, which is deliberately hidden by the bogus inflation rate calculations, but have no velocity of money, if there actually is inflation?
Above my pay grade.
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V-V
It's time to put a Gun to the proverbial Head of the Federal Reserve and put it out of our misery.
It's time to put a Gun to the proverbial Head of the Federal Reserve and put it out of our misery.
Take your FIAT Paper Currencies and buy Precious Metals. Simple really....