It's been a long time, kids! But, EB's back and he has a new gig: television. While we don't watch it (personally), we don't hesitate to make it. Here's what's went down over the last two days...
Day 1: We sat down with Niall Ferguson and asked him about the hyperinflationary potential (1:56) of our current monetary situation. Here's what he had to say. Hint: excess reserves don't matter :-<
At 14:42, we interviewed floor trader Ben Willis about the diminishing role of the sapien-trader-entity. We get into HFT, the Flash Crash and Knight Capital. Judge for yourself if Reg NMS (LMNOP?) destroyed our markets.
Day 2: Chris Martenson weighs in on the FOMC meeting and current market conditions. "[I]f [our present markets don't] look, smell and taste like a liquidity crisis a la 2008, I don't know what does." Indeed, Chris. There's also an interview with Adam Lebor about secret banker meetings in Basel.
Finally, at 18:52, the lovely Justine Underhill...
...digs into our 2009 paper, "A Grand Unified Theory of Market Manipulation" and explains the mystical "POMO Effect" -- yes, the means by which the Fed has magically levitated the S&P 500 to 15k+ (three times a charm, Ben). Unfortunately, she "tin-foils" our 2009 claim that:
"Once long term yields reach a critical Level (which we cannot know and would be difficult to estimate [and we have still not reached, obviously]), the [Federal Reserve] becomes locked in a money printing cycle that will ultimately become hyperinflationary and result in the [Federal Reserve] having to buy every US Bond, Note and Bill in order to prevent the economic Armageddon that comes with a panicked exodus from the US debt and currency."
We stand by it, Justine.