Previewing The Global Monetary Firehose Through 2013

Tyler Durden's picture

Earlier today, Fed "bad cop" Dick Fisher appeared on TV and warned Wall Street to resume doing fundamental analysis on its investments as incremental easing is now over, and expectations of shotgun monetary heroin should be henceforth curbed. While we sympathize with the views of the holder of precious metal ETFs, we can't help but be skeptical that if and when global growth returns to its negative glideslope trendline, the only option, as always, will be more real dilution, resulting in more nominal asset price gains. Furthermore, in the aftermath of Fisher's warning, Wall Street sat down and redid its analysis. What it found was that no matter what happens, the Fed, and its central banking peers, will always ease. Case in point is the just released update from Morgan Stanley on what it believes the monetary firehose will look like in the next 2 years. One word: whoooosh.

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Hallpass2012's picture

dang, I though the next round of QE by the Fed was going to be called QE HD (heavy duty)... so how long until the Fed gets even more "creative" & expands the menu of assets it buys? 

slaughterer's picture

"Operation Torque"  (look, MS has named it already): just how many Russell 2000 points will "sterilized MBS purchases" buy?  My read: not enough. 

Spirit Of Truth's picture

Better ramp up the monetary printing presses. Increasing signs of a political struggle underway in Beijing, China:

HD's picture

"I though the next round of QE by the Fed was going to be called QE HD"

  Ah, hell no.  "HD" is synonymous with truth, justice and needlessly sarcastic comments. Of course, if Ben did use "HD" I'm sure it would just be transitory.

Hallpass2012's picture

& what kind of assets are these going to be?

ATM's picture

Not APPL. Groupon, Facebook and Netflix!

vote_libertarian_party's picture

I see GS is opening a fund for distressed real estate.  Gee, and you..YES YOU...can invest in it.


Wow, I feel like an insider getting the good stuff.


buy buy buy

DormRoom's picture

If the Fed eases, USDJPY goes to 75, and Japan implodes, or BOJ intervenes.  And let's not forget how incendiary easing would be for oil speculation.

francis_sawyer's picture

Jeopardy "BEFORE & AFTER" category response...


bank guy in Brussels's picture

Profound ... Zen-like ... the sound of one comment pending

i-dog's picture


"One word: whoooosh."

LOL. Thank you, Tyler. A laugh a day keeps depression at bay. :-)

Dr. Engali's picture

I watched that Fisher interview thinking the whole time...."how can you be making this commentary when you know we have a 1.3 trillion dollar deficit to fund?" Everybody knows you have to print. There is nobody left to buy up that debt.

kito's picture

morgan stanley can never be trusted.....more pump and dump analysis....keep pushing the mega millions stock market higher until they can dump the losing ticket onto the retail sector...............they know full well easing will not occur this year................

Alea Iactaest's picture

I was thinking the same thing... Look kids, more QE! Put your money in the market, you can't lose. We all know that more QE means SPX 1600! Remember, you gotta play to win!


What? No QE this year? My bad.

DeadFred's picture

But...but they gave the program a name so they must know all about it right? Kind of like when doctors diagnose someone with ADHD or autism it makes you think they understand what's going on when they are pretty much as clueless as you. If Morgan (don't trust anyone with this name) Stanley knows about the new QE they won't be telling the world the truth about it, 100% guaranteed.

slewie the pi-rat's picture

just a slightly bigger hose, really

once you get to zirp or zer0guage, we have double-0, and then the long-awaited negative interest rates, baybee!

at -3%, im getting a $ mil

DeadFred's picture

Someone do the calculations on how negative the rates have to be for Treasury to fund the whole government on the profits they make by selling bonds. Boggles the mind that people even think this is real and if it is real what it means about the system.

SillySalesmanQuestion's picture

If the federal gubbermint would have an IPO of their own porn company to supply Wall Steet, the deficit would be erased...problem solved. GS could underwrite the IPO.

cowdiddly's picture

I just want my gubermint block of free cheese.

Olympia's picture

The over-profits of the shark loans in the USA not only did not turn their dollars into inflationary money, but also they were multiplied and exported abroad in the form of “investments”. The illegally “increased" dollars of the internal USA economy become tons of “investments” abroad. FED printed cheap money and loansharking multiplied this money in an unnatural way within the American economy boarders and they discarded them abroad so that they did not threaten USA. USA became the first state in the world with artificial “breathing” ...the first state that burdened the international economy with its “breathing” ... and this is where everything started ...this is where the current shabbiness started, Loan sharks that are international today and “hide” behind the vague term of “Markets” are in fact the old loan sharks of the American market. They by controlling the USA monetary system “pumped in air” constantly in order to make profit from the USA “breathing”.




1eyedman's picture

exactly.   with only a hammer all problems are nails.   look out for the enforcement of the law of diminishing returns.  

inflation is the achilles heel.   

consumers still buying gasoline! amazing!  few realize gasoline is quite inelastic.   spending more on gas will require less spending on other items, or increased borrowing.   there has been an increase in borrowing/consumer debt.   to what end? if rates tick up and supporting said debt is more expensive it could unravel quickly.  job growth is non-existent;  the cessation of job declines is what we have seen.  

rates can be controlled....but is inflation demand-pull or simply financial?  the latter.  

at some point at p/e of 17 will look expensive....visualize cockroaches and a flipped light switch...

EZYJET PILOT's picture

The next QE will be called Operation MOTS, as in More of the same.