Ben Bernanke

Ben Bernanke

Welcome To Wonderland

Silver out performs gold as both rise with Treasury bonds, which are in turn rising with stocks, as Junk bonds hit new recovery highs while USD remains firm as inflation expectations are out of the picture. This is highly atypical, maybe even unprecedented. As we watch the macro burp up all kinds of paradoxes and inconsistencies, we can’t help thinking back to the day that the ‘Hero’ announced Operation Twist...

S&P 500 To Open At All Time Highs After Japan Soars, Yen Plunges On JPY10 Trillion Stimulus

S&P 500 futures are set to open at new all time highs, with global stocks rallying as the yen weakened and the Nikkei soared on speculation Japan is about to unveil the first instance of "helicopter money"-lite, as well as due to a continuation of better-than-expected U.S. jobs data. Further speculation that Italy's (and Europe's) insolvent banks will be bailed out has further boosted sentiment.

Alan "Bubbles" Greenspan Returns To Gold

The former Fed chairman says he believes another debt crisis is inevitable. He believes it will lead to high levels of inflation. His solution? Gold: “Now if we went back on the gold standard and we adhered to the actual structure of the gold standard as it exists let’s say, prior to 1913, we’d be fine. Remember that the period 1870 to 1913 was one of the most aggressive periods economically that we’ve had in the U.S., and that was a golden period of the gold standard.

 

When Narratives Go Bad

There’s a … tiredness … to the status quo Narratives, a Marie Antoinette-ish world weariness that sighs and pouts about those darn peasants all the way to the guillotine.

Brexit Proved It's All A Central Bank Funded Mirage

Why can’t the markets proceed any higher than when QE ended in Oct/Nov of 2014? You know, if this is truly: a fundamentally based bull market that is. Or, is it that – its fundamentally full of bull? I believe it’s a big-ole-pile of the latter, and little to none of the former. Put a different way: Explain why does it take more central banker intervention, or the promise thereof, to stop these falls? If it were all “fundamentally” based on market principles, again, why is there a need or call for even more monetary interventionism? (i.e., negative interest rates, “helicopter” styled moves, etc., etc.)

August 15th - The Date Which Will Live In Monetary Infamy

August 15, 2016 will mark the 45th anniversary of President Nixon’s decision to close the gold window. U.S. citizens and the government are now beholden to the consequences of years of accumulated debt and weak productivity growth that have occurred since that day. Now, seven years after the end of the financial crisis and recession, these consequences are in plain sight. The Fed finds themselves crippled under an imprudent zero interest rate policy and unable to raise interest rates due to fear of stoking another crisis.

The End Game Of Bubble Finance - Political Revolt

During Friday’s bloodbath we heard a CNBC anchor lady assuring her (scant) remaining audience that Brexit wasn’t a big sweat. That’s because it is purportedly a political crisis, not a financial one. Here’s a news flash. That’s all about to change. The era of Bubble Finance was enabled by a political abdication nearly 50 years ago. But as Donald Trump rightly observed in the wake of Brexit, the voters are about to take back their governments, meaning that the financial elites of the world are in for a rude awakening.

The Fed's 3rd Mandate & The Value Of Cash

Jan 2008: Bernanke "The Federal Reserve is not currently forecasting a recession." Jun 2008: Bernanke "The risk that the economy has entered a substantial downturn appears to have diminished." Jun 2016: Yellen "chances of recession this year are 'quite low'... The U.S. economy is doing well. My expectation is that the U.S. economy will continue to grow." Channelling Bernanke?

This Is What Yellen Told Congress When Asked If The Fed Is Boosting The Stock Market

ROYCE: So Madame Chair, is having a stable and rising stock market a third pillar or the Federal Reserve's monetary policy if I go back to what I originally heard Ben Bernanke articulate?
YELLEN: It is not a third pillar of monetary policy. We do not target the level of stock prices. That is not an appropriate thing for us to do.

A Common Central Bank Tool: Fearmongering

Central bankers should not be treated as wise oracles whose guidance is desperately needed. Instead, we should throw off the tyranny of the PhD’s and embrace the decentralization of power that is desperately needed to allow civilization to thrive. Brexit would be a great way to start.

There Is An Alternative To Yellen's Keynesian Bubble - Stockman Rages "Abolish The Fed"

The approximate hour Janet Yellen spent wandering in circles and spewing double talk during her presser yesterday was time well spent. When the painful ordeal of her semi-coherent babbling was finally over, she had essentially proved that the Fed is attempting an impossible task. And better still, that the FOMC should be abolished. The alternative is real simple. It’s called price discovery on the free market; it’s the essence of capitalism.