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Goldman's Take On Jackson Hole: "We Think Further Easing Is Likely By Early 2012"
Goldman, which unlike in 2010, did not get its request for a few hundred billion in free money, at least for now, shares its response to Jackson Hole.
From Goldman Sachs
BOTTOM LINE: Bernanke offers little guidance on near-term policy outlook, but extension of September meeting makes easing at this meeting a bit more likely than before. We continue to think that further easing via manipulation of the Fed’s balance sheet —either through expansion or restructuring of the average duration of holdings—is likely by early 2012.
MAIN POINTS:
1. In light of the market attention preceding it, Fed Chairman Bernanke’s Jackson Hole speech was clearly anticlimactic. He decided not to explicitly discuss the prospect for asset purchases, or indeed outline easing options at all. While the speech does not change our overall view that additional monetary easing is more likely than not, it adds uncertainty about the near-term course of communication and the timing of easing steps. On the margin, it also raises the importance of the FOMC minutes released on Tuesday, and of the September FOMC meeting.
2. Bernanke’s remarks contained a short passage on the prospect for additional monetary stimulus. He reiterated that the committee “has a range of tools”, and that it discussed the costs and benefits of those options at the August FOMC meeting. He added that the September FOMC meeting has been expanded to two days to allow a fuller discussion of easing options as well as “other pertinent issues, including of course economic and financial developments”. Interestingly, past experience suggests that the probability of easing is higher at two-day FOMC meetings, all else equal.
3. Policy matters turned up in a few other places in the speech. First, Bernanke said that “Good, proactive housing policies could help” speed a recovery—potentially a signal the Fed favors administration proposals around managing GSE foreclosure inventories and/or a blanket refinancing program (see yesterday’s US Daily for details). Second, he said that the Fed “fosters macroeconomic and financial stability in its role as a financial regulator, a monitor of overall financial stability, and a liquidity provider of last resort.” This is a typical boilerplate sentence, in our view, but does remind that the Fed is attentive to financial stability concerns.
4. Bernanke was guarded on the near-term outlook for growth. While he said that the FOMC still expected growth to accelerate in the second half as temporary shocks wane, he also noted that it is “difficult to judge by how much these developments [European stress, S&P downgrade, debt ceiling discussions] have affected economic activity thus far, but there seems little doubt that they have hurt household and business confidence and that they pose ongoing risks to growth”.
5. Finally, consistent with the rest of the content at the conference, the speech contained a discussion of long-term growth issues. Our main takeaways were that he was optimistic about the long-run outlook for the US economy overall, he argued that the financial crisis did not damage longer-term growth prospects “if—and I stress if—our country takes the necessary steps to secure that outcome”, and he emphasized that fiscal sustainability must be addressed.
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More Hopium
eff this crap no one called it (that I am aware of) so we have another 3 weeks of BS speculation
the only thing I took from all this is that the Bernak punted to O and his post labor day speech (and the NYT has already told us what that will be about free accomodation for life)
Does this market rally make any sense to anybody?
This is pretty wild.
This rally is fluff — like the euphoria a heroin addict might feel from the initial decision to quit. Market will tank as we go cold turkey. We're still in a demand shock. Bernanke knows it. Wen Jiabao won't let him print.
In the end we all know that Bernanke will not stand and watch as markets, asset prices and confidence tanks. And we all know that no amount of quantitative easing can get America out of the troubles she is in. Those troubles are non-monetary — they are systemic and infrastructural: military overspending, political corruption, public indebtedness, withering infrastructure, oil dependence, deindustrialisation, the withered remains of multiple bubbles, bailout culture, the derivatives-industrial complex, food and fuel inflation and so forth. The real question is when will America tire of the slings and arrows of fortune? When will America take arms against her sea of troubles? And how long will she last on this mortal coil? To die? To sleep? For in that sleep of death what dreams may come…
http://azizonomics.com/2011/08/25/to-qe-or-not-to-qe/
"Wen Jiabao won't let him print."
i thought he was dead .... wasnt he a member of the gang of four or six .... not sure how many....
So we're now can-kicking (to September) the can-kicking?
You pretty much listed all the forces leading us to the Apocalypse . Soylent Green maybe the next Gubmint solution. I'm saving your comment for future reference.
as you said, which rally, the rally in gold or the rally in overvalued claims on a false economy drowning in debt, deception and declining world resource?
spiral_eyes:
"This rally is fluff — like the euphoria a heroin addict might feel from the initial decision to quit. Market will tank as we go cold turkey. We're still in a demand shock. Bernanke knows it. Wen Jiabao won't let him print."
Why? Can Wen Jiabao prevent Fed from printing more money? I have not heard anybody say that Federal Reserve can not continue to print at the same rate as now for 1 or 2 years. The dollar is still the largest reserve currency. The question is what happens in, let´s say, 10 years. As other economies, like China, India Brazil grow, and it becomes more likely that other currencies will become reserve currencies, the more likely it is that the US can not continue to print at the same rate without causing hyperinflation. The question is when Federal Reserve no longer can not print at a similar rate as now and if the US economy at that point still will need it. Can anybody tell for sure when the Federal Reserve can not print money on approximately the same scale as now without causing hyperinflation?
Another important question is to which extent money that already has been printed may contribute to hyperinflation. To me, it seems as if some people say that accumulated printing is almost the same as printing rate over a shorter period of time as regards hyper inflation. Well, if that is true, current printing should not have caused much inflation, should it?
I think there is no doubt that printing money is risky. But so far I have not seen any analyst say which time frame we are talking about. Perhaps they are keeping this information to themselves.
If you can put yourself into a bull frame of mind, it does. QE manipulates down the price of cash and up the price of assets. Bernanke just suggested he could unleash QE3 already at the next FOMC meeting. Extending it two days for a "fuller discussion" of the "range of policy tools" can be interpreted a lot of ways. The guys driving this rally are reading it as: Ben wants QE, and he's going to do his best to get as many of the Fed presidents behind at as he can by bringing in some scary staff presentations and talking their ears off.
Don't get me wrong, I think QE just fattens up the bulls for slaughter later. But bulls love that sugary stuff, so they're rallying today.
http://how-to-trade-armageddon.com/
Rally doesn't make any sense to me, nor to German investors, whose DAX is still down a clean 50% of the last 2 year rise, down 1% today, with no German government agency painting the tape like we have today here.
For anyone into Technical Analysis and particularly Tom Demark's Sequential indicator, this signal did predict the recent violent selloff:
http://www.healthywealthywiseproject.com/Home/wealthy-blog/yesdemarksetu...
Demark indicators show you when to buy into weakness and sell into strength. The total absence of ambiguity with regard to market timing makes the Sequential stand out.
Nothing in this world "makes sense" any more. Well, actually, it makes sense in the context of the world being controlled by a greedy sociopathic criminal syndicate, but that would just be a wacky conspiracy theory. We all know that wacky conspiracy theories are just wacky and that the world is controlled by honest, humble, free market enthusiasts who hope that rising prosperity for the upper class will lead to the end of poverty and hunger and oppression everywhere.
Nasdaq up 2%?! The markets have been rallying all week in anticipation of qe3, instead, Ben kicked them in the face. What to do? Buy!
INSANITY
How tactful the Squid did not decide to high five it in our face: "We got QE3!"
Broke 1172: bear pain meter going up rapidly. Ben and Brian really know how to improve market confidence...
Duh. Obama needs it for Election 2012.
Obama needs what, Hopium?
lolmao500, @11:39
BINGO,Ding,ding,ding, you win the Prize.
I am truly amazed at times, that the audacity of these mongols, thinking we are such morons believing we do not get their games.
QE3 = Mass Home Refinancing
Imagine the GSE's taking every mortgage they hold and refinancing so that:
The amount of disposable income this would create in a single stroke is astronomical. The government can do this, since the mortgages have been taken onto the GSE's balance sheets as assets, and the former "securitizations" are now obligations of the GSE's themselves. Fannie and Freddie would bleed money at even more eye-popping rates than they are now, but since they're under the control of Treasury this could in theory be done by the WH unilaterally without requiring Congress to weigh in.
This would in effect nationalize a huge percentage of housing-market-related losses while giving back all duration-related gains in the values of the notes. The pricetag on this would certainly be in the trillions, but what the hell, they're going to have to have another talk about the debt ceiling soon anyway, right?
I too think that this is exactly what is written on the other side of the mirror. The idea will be sold to the masses as "mortgage relief", or something like that, and will be yet another back-door bailout of the banks----and, this time, a bailout of the re-insurers, mind you, as well.
The difference (hundreds of billions, perhaps more) will be "absorbed" by Treasury, as you note, and the total operation will have an enormous price tag, especially since the deal will be annouced in advance, with a special note to BoA and a likely some kind of "deal" to allow for the sales of the quantumly juxtaposed BoA mysteromortgages, thus ensuring that the "stimulus and home-owner relief plan," or whatever it will be called, will be adequately frontloaded with the still-toxic "assets" on the troubled banks' sheets.
The WH insistence on the dual-phase debt-ceiling increase seems to have had this in mind all the while: there's no way this operation can be executed under the current "phase-1" increase, but instead can occur with the unilateral, WH-controled "phase-2" initiation. Also as you said, there will be no differientation in credit-quality, and the losses will absolutely be nationalized. Meanwhile as well, those people who are underwater but current will continue underwater but current, until they lose their jobs or fill their credit lines.
So, this is what I think Obama will announce in his hyped Septemeber massive theft-plan---I mean, his hyped September stimulus plan. I'll be sure to act surprised. I hope I'm wrong, and I might very well be: they could very likely come up with something much worse, we know.
Poltically this idea is dead on arrival
It's too big to work, I agree. And actually if it was unilateral by the GSE's the banks would hate it unless they could somehow gerrymander the valuation process to assign artifically high values during the inevitable "discovery."
Still, if you're going to do stimulus to boost the economy, this is the sort of scale you need. And I think representatives will find it hard to take a principled stand against a measure that puts hundreds of dollars a month in their property-owning constituents' hands. Wanna bail out Main Street instead of Wall Street? This is the kind of effort--and scale--required.
It will be a pure Political Stimilus...pure politics...Union payoffs...minority payoffs..poor payoffs....typical...
I could not agree more:
We should really extend the average duration of holidays :)
not holdings..
I can haz bonuz pleez?
Either that, or they're giving more false info -- while preparing to short the hell out of the market.
Whole country now running exclusively on Hopium fumes.
'Yea, things suck right now, and our policies are total fail...but just wait till 2012! Thats when the Snap-On toolman comes back around, with another vast assortment of hammers!'
Yipee, party on USSA.
I thought the SNAP-on truck delivered plastic cards to 30% of Alabama? Oh wait....that's JPMorgue.
Harrumph!
www.youtube.com/watch?v=uTmfwklFM-M
I think I speak for everyone when I say I am fucking tired of this rigged casino. That's TWO times in one month that the market hoped Bernanke would announce QE3 and TWO times that he didn't. I guess disappointment is bullish for stocks?
'Battered housewife syndrome' markets. Sure he beats me and lies all the time and never does anything nice for me, but I know he loves me....really he does....
That QE3 was not announced indicates that the economy is doing MUCH better than anyone realized. How could it be otherwise? Nah, just kidding.
Except every single economic indicator that they have shows that the economy is once again running into a brick wall. Why the hell do we even report economic statistics?
They will keep on printing and buying Treasuries, as they have for the last 10 years. They just won't talk about it.
Bingo. Except that more and more people understand what they do since 2008.
The "Emperor has NO clothes" moment has happened. Fiat is essentially not backed by anything but an unsustainable "growth" ponzi.
I am certain the Fed's real balance sheet is far far larger than anyone suspects with special lending arrangements to the Treasury.
...sounds like penile enlargement surgery: further easing via manipulation, through expansion or restructuring
priceridu,@ 11:42,
Your forgot THE PUMP.
LOL...and average duration of holdings
Yeah right! Goldman is wrong once again as they are no longer the administration darlings and in the know. They are now on the outside looking in.....
The GDP came in at one of the lowest levels on record when inflation is considered. The clowns are running stocks higher. Does anyone understand anything that is happening? I see Europe with no growth, Asia with internal growth, latin America gone, Middle east gone and US a joke, ...where does the growth come from to boost stock values??
Tail wags the dog. #wealtheffect.
they're just taking it back up via HFT and hunting all the stops along the way with a massive put/call bullish bubble tail wind into BB's Sept qe4 announcements which should rocket us back up around 1400ish
Hallucinogenics.
“if—and I stress if—our country takes the necessary steps to secure that outcome”,
Translated: We're pooched.
Disappointment the new 'baked-in', LMAO.
"Punt!"
In my opinion, it is highly probable that the Fed and GS, et.al. will not be around in 2012, except maybe in a jail cell awaiting trial...here's to hopium!
Here are the updates I posted this morning to my bear trading blog: http://how-to-trade-armageddon.com/
UPDATE: The speech has turned out to be more upbeat for bulls than I expected. Without really acknowledging the severity of the economic downturn underway since late July, Bernanke strongly suggested that he is pushing for some kind of additional policy action at the FOMC’s September meeting. The key paragraph from his speech is here:
“In addition to refining our forward guidance, the Federal Reserve has a range of tools that could be used to provide additional monetary stimulus. We discussed the relative merits and costs of such tools at our August meeting. We will continue to consider those and other pertinent issues, including of course economic and financial developments, at our meeting in September, which has been scheduled for two days (the 20th and the 21st) instead of one to allow a fuller discussion.”
As I expected, Bernanke is keeping his cards very close to his chest about what policy he is pushing for. He essentially acknowledges that there is strong disagreement within the FOMC about policy and implies that he wants to at least give the FOMC a chance to reach a greater consensus than it did in August, when three FOMC members dissented and spoke out against Bernanke’s move to extend the timeline of zero interest rates. Ben left markets guessing what exactly he is pushing for and whether he might be willing to compromise on less for the sake of consensus. But above all, with the paragraph above, Bernanke has fed bulls hopes that QE is coming.
As a result, my market call has not really been validated … yet. My puts are currently trading with a wide spread of 32 to 36 cents, compared to the 30 cents where I bought the last of them, due mainly to events in Europe. The downward revision of Q2 GDP to 1% also mattered. But the Michigan consumer confidence number, which dropped to a definitively recessionary level, was brushed off as an “as expected”.
If you took profits in the first minutes after Ben’s speech, when markets sold off (and the bids for my puts peaked at 44 cents) before the paragraph I cited got noticed, you should have done pretty well. I’m holding on, as I expect the Greece crisis in Europe to deteriorate, and I expect the economic data that will come out in early September, starting with the PMIs, to be downright awful.
AND ONE MORE AFTERTHOUGHT: Ben’s speech also raised the importance of the minutes of the August 9 FOMC meeting, due out August 30. Given what Ben said about additional stimulus measures having been discussed, markets will be looking very closely at the minutes to see whether QE – in Fed lingo, “Large Scale Asset Purchases” – was specifically discussed. A specific mention of QE in the minutes would further feed bulls’ hopes of it coming soon. But even a lack of any such specific mention wouldn’t rule out that QE was discussed.
Are you enjoying your hopeium? Trying to spread good cheer? Good luck!
No, completely the opposite, I'm a bear trader, being honest and admitting that my bearish call on this speech did not work out for me today. Some bears with better short-term timing could have profited by taking profits in the early minutes after Ben's speech. I stood by my puts for the longer haul, and right at this moment, I'm regretting it, as I could have sold them and be buying them back now.
I also posted 'no QE announcement' but I am not an equities trader or a paper trader except in oil.
It seems that no amount of bad or neutral news can stop equities from rising... Which leads me to believe that these mkts are very manipulated... possibly in more ways than we now know.
You made the right call and lost anyway, thats tough but happens to all of us from time to time... good luck in future.
hey, snide!
right now, i'd put it @ 85% that he's a plant. if he wants to be a respected zeroH, he needs to lose a little weight here (his advertizing spam on zH) before we start engaging his "thoughts" and wasting our time w/ another banksterbot or "knowledgable" MSM propagandist
shit, man, even slewie's been saying no QE III here for weeks now!
he's a quisling (quiz sling?), snide
peace
How high was the short interest this week relative to previous events of such "magnitude"?
Much of the upside in 2009 and 2010 was due to short squeezes similar to that today.
whatever the fuk you think you are, elsewhere, you have been posting for two days here, and all you do on zH iis troll, asswipe.
if you want to boogie on these board, please stop the eternally self-referencing adveriZing to...your pathetic "really smart bear trader" self
wake up and smell the coffe, dude. we've been nice about it, so far
you are already on record when you began to post here, yesterday, that you are here b/c your "new website" is up
you are spamming the best fuking site on the planet, you shitforbrained mononic doucebag, and you really need to stop, NOW
TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL TROLL
i wonder who junked slewie?
possibly the fuktard who is ON THE RECORD HERE that the ONLY reason he is on zH is to advertize his "new website" ~~~just go look at his first posts here, yesterday
he needs to get off the spamming 0'the zeroHeadz; then i'll read what he says HERE, and i wld invite you to do so, also, then; but not now
we've only been thru this about 150X together, here, so don't get "hooked" by his "bear trader (just like you, sucker) tripe, and start wishing him "good luck" for pete's sake, or they'll send in a squad of "friends" to back up the fuking asswipe, you idiots! jeeeeeeez!
if you ever saw Pulp Fiction and wondered whatever happened to the Gimp
guess what?
anyway lots of people promote their stuff here though frequency can be an issue, the democracy of ZH will determine its value
What I find interesting is that from what I can tell no one predicted that he would punt
That's way better :
JP Morgan is Foreclosing on the US Treasuryhttp://www.nakedcapitalism.com/2011/08/jp-morgan-is-foreclosing-on-the-u...
Meanwhile, Russia Central Bank announcement... Gold backed loans...
"MOSCOW, Aug 26 (Reuters) - Russia's central bank will offer gold-backed loans for up to 90 days at an interest rate of 7 percent, it said in a statement on Friday, expanding its lending facilities for dealing with any future liquidity crunch in the banking system."
http://mobile.reuters.com/article/idUSL5E7JQ0Q020110826?irpc=6
"We Think Further Easing Is Likely By Early 2012"
TRANSLATION:
"We are nowhere near finished fucking the few remaining middle class people in America. We will not stop until there are none left"
See, this is why we need AI already. These HFT algos don't fucking get that QE3 will not come until the market slides off a cliff.
These days it appears that no amount of bad news is bearish for stocks. And any pathetic excuse for "positive news" results in a 300 point rally in the DOW.
How fucking backwards is this logic?
GDP prints at 1.0. Market reaction: "Well at least it wasn't NEGATIVE! BUY BUY BUY!"
Being that NFP will almost surely be an epic failure next week let's see how much hopium it takes to totally ignore it. Watch, a -200K NFP prints and the market reacts with "At least it wasn't -300K! BUY BUY BUY!"
"How fucking backwards is this logic?
GDP prints at 1.0. Market reaction: "Well at least it wasn't NEGATIVE! BUY BUY BUY!"
...and, Ben said nothing to buoy equities... but they are up... How much would they be up if he said 'happy days, QE 3 beginning last week'? How many real traders are left in equities?
Not to mention, Snidley, very possible KATRINA II or maybe even worse, arriving this weekend. I just shorted TQQQ with Naz up over 2%.
TPTB have a total vested interest in keeping the current system in place. No way will the Fed let it collapse. They have all the power and all the money, and they are going to keep it that way. All they need is the faith of the sheeple, and the ponzi continues. It could go on for another forty years. Bernanke is clearly not overly concerned. That was literally the worst speech I've ever heard out of the Fed . . . so bad that the market (headline and speech reading bots) had absolutely no idea what to do with it.
As Adam Sandler said, "Kill me, kill me PLEASE!"
And this is what the policymakers do, they turn a volatile market and weakening economy into complete boredom so that we turn away--so that we lose interest--and so they can keep doing what they do.
Riiiiiiight.
The Federal Reserve has such an incredibly successful track record. Even The Bernank did a great job forecasting from 2004 through 2007, and then prescribing efficient, effective and balanced monetary policy. /sarc/
Their main tool, interest rate easing, is already exhausted.
Good luck to the Fed Heads.
Bernanke might be stupid but he's not stupid (wink, wink). And the Fed does have an incredible track record of staying in existence.
Nobody wants to see those fuckers strung up more than I do, but it seems a long, long way off.
Unless you have a different story, which I'd love to hear.
You said "no way does the Fed let it collapse."
Without responding to all the other points you raise, I'm of the opinion that there's no way they can stop it from collapsing, and that process, in fact, has already begun.
What a joke. How few people understand that fiscal sustainability = deflationary default = impossible.
Yep, next week will be -700k jobs. It'll be epic.
"Things aren't that bad, although they will be a little tough, disappointing even. One good way to prepare for and deal with that disappointment is an exercise I recommend for the Amerikun Peepull. It will releive the stress of disappointment and prepare you for future growth about to come. Here are the steps:
1. Drop your trousers to allow maximu muscle stretch
2. Place mouthguard in mouth
3. Bend over at the waist
4. Firmly grasp your ankles
5. Breathe through nose and squeal like porky pig
6. We'll then assist you in completing the exercise, trust us
-Bennie Bernanankeeee"
More news to rally on:
U.S. Banks Seek Relief on Swelling Deposits"U.S. regulators have asked some banks to take more deposits from large investors even if it’s unprofitable, and lenders in return are seeking relief on insurance premiums and leverage ratios, according to six people with knowledge of the talks."
http://www.bloomberg.com/news/2011-08-26/u-s-banks-said-to-seek-relief-f...
Well basically Goldman embarassed themselves once again as they were totally wrong on QE3. Another fail. Why people listen to what they say is beyond me.
Yes, the committee does indeed have a range of tools.
Boooyaahhh!!!
http://www.marketwatch.com/story/lenny-dykstra-now-charged-with-indecent...
Move along people nothing to see here.
This proves one thing. Bernanke is irrelivant. He was important to the markets, until he all of the sudden is not. And that started today.
As I like to say, fundamentals mean nothing, until one day they mean everything.
Move along people. Keep buying the physical and move right along.
Golden Slacks
BOTTOM LINE:
"whatever it takes to get Barama re-erected in 2012."
Why? Why can't they just buy somebody else? What is so important about BO?
the paper is moved
disinformation, squared
by criminally insane banksters, no less!
eat shit, lay eggs and die young
Very clever Bernanke - you don't print, but you leave the door open for printing.
...well that should see 2011 out with a nice 'uncertainty' as the gamblers gamble on whether printing will come in 2012 or not.
My only confusion comes because I would have expected the markets to fall on this uncertain news - but they're going up.
lets see how they react when the Greek bailout fails.
Translation:
The easing will continue until the morale improves.
If the morale does not improve, there will be more easing.
Any questions?
We are dead by then.. on a long enough timeline...
Counter-trend bounce boys and girls. I firmly believe that this is not a bull market but a correction in a bear market. A counter trend bounce if you will.
Once this is exhausted we shall see a resumption of selling.
What really astounds me is the Eur/USD cross. There is no way that the Euro should have spiked like that. I believe the first reaction downward was the right reaction but then (perhaps china) got in the way and started fucking with the currency. Europe is in deeper trouble at the present time than the United States yet it posts a monster rally off the lows of the day .... however, it is in a downward channel (now trading at the upper end) and it does continue to make lower highs and lower lows in this channel. Could break either way depending on what Trichet says tomorrow.
Don't try to make any sense out of a rigged game ... just play the numbers.
Watch out Monday if the markets fail to hold this rally. THAT will be ugly. Then again...what do I know? We are all guessing at this point in time.
http://thefundamentalview.blogspot.com/
"hey, anything cld happen! trust me! but keep playing, 0'course, b/c i'm a TROLL spamming zH with MY blog here, too!"
no, troll, we are not all doing what you are! not in you wildest puppet fantasies, shithead!
please be advised
Nice to see you took your stupid pill today you turd. Try to say something intelligent ... you will be taken more seriously. Now run along back to your xbox and wait for the end of world in your shelter made of silver rounds.
I don't think the Euro is in deeper trouble. The EU problem is directly tied to the big U.S. bank's dealings with the sovereigns like Greece, Ireland, etc. Derivatives and hiding or misrepresenting debt stems from the U.S. 2 of 3 big ratings agencies are U.S. based.
As Jim Rogers likes to point out the U.S. is the biggest debtor nation in the history of the world.
The U.S. is also in 2 major wars and bombs other countries when it chooses (leaving out the "war of drugs").
The U.S. has, by Shadowstats accounts of historical unemployment calculations, 23% unemployment.
45 million people on food stamps.
States are in debt.
The trouble with being "kinda smart", like the Roth-$childs and Co, is that you're really not that much smarter that the people you are robbing. You get away with bad behavior for a while.....then, eventually, you draw enough attention to yourselves that even the people with a bit less intellegence place you in the crosshairs.
Even the smartest human must stay hydrated, fed, and has to get some sleep. The ability to cook up seemingly brilliant schemes won't save you from your fate. History is filled with examples. Survival, it's the great equalizer.
Hell is patiently waiting for you.
Where is Richard Koo?
Chairman Ben S. Bernanke At the Federal Reserve Bank of Kansas City Economic Symposium, Jackson Hole, Wyoming To put things in perspective, please, first read the Bloomberg articles below:
Bloomberg: Wall Street Aristocracy Got $1.2 Trillion in Secret Loans.
The Fed's Secret Liquidity Lifelines
Anybody is for the strong dollar from the FED and who's "tool box is empty"? http://sufiy.blogspot.com/2011/08/chairman-ben-s-bernanke-at-federal.htm...
"People who understand the limits of monetary policy also understand that the economy has what it takes to grow," Kelly said.
...as inferred capital control in the accounting positive feedback loop becomes increasingly transparent, stated capital controls increase, to "guarantee" returns/feed the "performance" eye, increasing control on fewer and fewer participants.
Expecting anything else is insanity.
"People get worked up about their favorite coffee chain upping prices but many seem oblivious to the trillions of dollars given to the banking sector."
http://www.doctorhousingbubble.com/prop-13-california-housing-lottery-ne...
it's like playing poker with these guys .. the fed
i think they showed their hand when after s&p downgraded treasuries, they told the banks no need to adjust risk weightings
how can they promise to keep rates low for 2 more years without additional QE
bernanke said if he had to, he could drop money out of helicopters. he is so determined that easy money would have cured the great depression, i don't see how he changes his mind on that.
now he said the fed was disappointed by the results of the first qe's .. does he say um .. qe doesn't work? i doubt it, if anything he'd think it wasn't enough. i'm preparing for shock and awe.
they're gonna need 2 days in september to decide all the things they are going to do. i doubt they take 2 days to decide to do nothing.
personally i think they've already begun QE3 but they just don't want to be so open about it and try to make the public think things are getting better all on it's own.
instead of monitizing the debt, they'll probably just monetize the deficit and hope nobody notices
I'm going to delve into the issue of Jackson Hole via an unlikely angle, if I may. I see much confusion on this website about the current American financial program.
It is a rather rudimentary supposition that Bernanke has thwarted the best possible guidance of Western financial personalities, and has chosen to his personal satisfaction an outcome of hyperinflation. Yes, hyperinflation will inevitably result, but it will not be a prolonged Zimbabwe-like episode – and the more curious fact remains – it was unavoidable. To remove the ambiguity from this statement, it is expedient to frame the state of Western aggregates as issues of security policy parallel to a monitor addressing domestic conditions.
Bernanke, contrary to popular belief, has very little control over Federal Reserve policy; and when one understands the political coercion taking place to ensure against deviation from certain guidelines, this notion becomes more plausible. There is an involved explanation that disposes of this seemingly fallacious statement, but it requires years of both military and foreign security training to grasp.
To shorten the explanation, the following are constraints:
To elucidate a number of notions that may be foreign to those who haven’t had the opportunity to entertain these facts, I’ll digress at this point to provide for the thesis that Western policy shortfalls are meant to engender a thrust towards consolidation.
Hyperinflation is an unavoidable consequence of ensuring the identity of Western ideals given the prevalent socialist structures and the external economics imbalances at hand. The West cannot survive for any meaningful period of time as a set of socialist states colluding to promote democracy, first without ensuring its own sustenance. It must accelerate this cycle to purge imbalances and reduce barriers to consolidation – that it may reposition itself globally for continuity. This is understood by the security services and military, and thus democracy (socialism in disguise) is being systemically dismantled to ensure continuity. One must understand that the welfare state inevitably collapses upon itself either way due to carrying costs, and it cannot be reformed politically in the process for the reason that doing so would constitute an attack on the public veneer of democracy. The public cannot help themselves, for they do not have the expertise to hedge against global strategic threats.
In light of this, understand that the gold price suppression is not carried out against the citizenry, but has served as a critical strategic hallmark of this consolidation programme. As evidence, examine the decline in global central bank holdings into 2005. Many of the Western central banks have already been consolidated under a central, though admittedly non-public repository. The issuance of a gold linked SDR under this collective consolidation will provide the West with leverage against an otherwise overpowering, and inevitably oppressive Asian reserve unit that is in its pilot phase. To maintain global standing, it is essential to at least maintain a proportional share of control over the reserve currency.
Following a significant revaluation in the price of both monetary metals, gold in quantity will be made available to supplant Western Central Bank supplies in order to anchor currencies once again. The purpose of current currency games is to allow the continued physical acquisition of gold by the United States for its reserve purposes.