As FOMC meets to discuss what everybody knows… The Fed is likely to signal a March interest rate hike and that further policy tightening is coming “The Fed is likely…” Everybody knows it, because the market knows it. And the market knows it because the wise guys at CME know it. So the media broadcast it back to us in a feedback loop. Below is … Continue reading “The Fed is likely…”
A subscriber asked my thoughts on this article at Zero Hedge. The Fed Has Monetized All Treasury Issuance In 2020 From the article… “We are ruined if we do not overrule the principles that the more we owe, the more prosperous we shall be” – Thomas Jefferson There is no more subversive entity in the US, more destructive, more inflammatory yet out of the spotlight … Continue reading Blame the Evil Empire
16% seems high to me because I don’t think the Fed would want to prick the bubble they’ve re-blown so soon. Especially since the 2 year yield is still on the floor. Long-term yields bounced, but they’ve pulled back lately. If the bond market were demanding action, maybe. But I don’t see it. 16.4% of da boyz on da CME seez it doe. At most, … Continue reading 16% of CME Traders Say +.25%
Dow futures rise as China pledges to stimulate coronavirus-hit businesses China is again taking economic action as the market awaits the Fed Minutes this afternoon. The market has been mostly trending upward but has also been attuned to developments related to coronavirus and the potential for slowing global economic growth due to disruptions to trade and travel caused by COVID-1, the infectious disease that originated … Continue reading COVID-19, the Exogenous Event That Became an Economic Event
“There is nothing wrong with your television set [market signaling]. Do not attempt to adjust the picture [ratios, indicators, free market inputs]. We are controlling transmission [of the signals you receive]. If we wish to make it louder [more bullish], we will bring up the volume [bond market manipulation]. If we wish to make it [the economy] softer, we will tune it to a whisper … Continue reading “Yield Curve Control”?
Since NFTRH 543 was also known as the ‘What if… Inflation?’ report, I was attuned to the subject; and on cue here comes Keith Weiner with a knockout punch. Keynes Was a Vicious Bastard, Report He goes off on the evil (and I do mean evil) genius, John Maynard Keynes before moving on to his usual gold and silver supply/demand fundamental report. He gave us the … Continue reading Monetary Metals on Keynes, Inflation and Evil Itself
Anthony Sanders has one of his short and entertaining posts (the Fed is a 97 lb. weakling, you know) about the Everything Bubble (@Biiwii)… Mother Of All Bubbles (MOAB) And Endless Monetary Stimulus When you see a chart like this you (well I, anyway) have trouble with all that conventional analysis out there about the stock market like P/E ratios, P/S ratios and forward expectations due … Continue reading Barometers to the Everything Bubble
See this Bloomberg article for a look at the ingredients in a policy stew that looks like it was scraped off the floor of Worst Cooks in America. Click the headline for the article. Federal Reserve policy makers seem to be working at cross purposes. In laying out plans to ease some constraints imposed on banks after the financial crisis, the Fed is moving to … Continue reading A Fiscal/Monetary Mole Stew
I’ve been thinking about the current Fed Funds rate hike cycle, which is logically gaining forward momentum now that the Fed can stand down from its 8-year, ultra-lenient monetary policy cycle. That is because the Obama administration’s goals required a compliant Federal Reserve to continually re-liquefy the economy as its fiscal policies drained it. With the coming of Trump mania and its very different fiscal … Continue reading Fed Rate Hikes, Fiscal vs. Monetary Policy and Why Again the Case for Gold?
Okay, this is beyond what even I thought possible when noting in NFTRH 406 (ref. this post: A Treasure Trove of Nuggets From the MSM)… “Yes yes, I know the Fed does not see enough inflation yet. And that is just the point. They told us last week that there is not enough inflation and damned if they are not going to keep trying to … Continue reading Jawbones on Parade!
The BoE, in battling the fallout from Brexit (a decelerating economy), has dropped rates to .25%. Bond markets cheer, with US yields dropping (bonds up) and global bonds rising. From Investing.com… There is talk of QE, lower bounds and supposed policy limitations. But what it is is just one mole in the global game of Whack-a-Mole, popping its head up. Here in the US, we … Continue reading QE; the Beat Goes On
BoJ stands pat, surprising substance addicted markets and JPY/USD slams higher. This after we have noted the trend change in USD/JPY since early in the year. Other currencies vs. USD are following this road map as a USD-centric ‘inflation trade’ continues to look viable considering that the Fed rolled over again yesterday.* * They re-jiggered a few words in the statement and the media parsed … Continue reading Kur Uh Oh Dahh
Mohamed El-Erian gives a good review of the recent history of Central Bankers’ descent down the rabbit hole of unconventional monetary policies. A calm, rational man well worth a listen for gaining, maintaining and/or updating perspective. One thing I think the narrative omits, as with most mainstream financial intellectuals, is that the series of rolling crises that our Central Banking heroes are battling was created … Continue reading El-Erian on Central Bank Ammo
Draghi Expands ECB Stimulus With More QE and Lower Rates Listen to these guys call the play by play (article link and videos)… The average sports fan pays ridiculous prices for parking, beer, coke and 4 hot dogs for his family to be entertained by multi-millionaires playing games. The average stock market casino patron is also entertained by multi-millionaires playing games. They are calling this … Continue reading Attn. Sports Fans & Casino Patrons: ECB Play-by-Play
