The Fed Must Feed The Beast
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Dorothea Lange Drought-stricken farmer and family near Muskogee, OK Aug 1939 With the US mid-term elections just 3 weeks away, of course there won’t b
[See the full post at: The Fed Must Feed The Beast]repost from previous topic…
@ Diogenes Shrugged
This is a great link to see which posts have an updated comment section. There is no need to check each thread because this link shows the date and the poster.Useful indeed, bluebird, it’s right up there in the banner menu. With platforms, and the specific themes developed for them, you get all kinds of things you wouldn’t choose, but are stuck with anyway.
The Feds tools are money and credit so they think they can solve all problems buy using those tools. It’s the old, well not so old, Law of Instrument. “I suppose it is tempting, if the only tool you have is a hammer, to treat everything as if it were a nail.”
https://en.wikipedia.org/wiki/Law_of_the_instrument
It hardly needs saying but Fed Heads are economists and two generations of them have been taught that ‘monetary policy’ can fix most ills. Even if they didn’t quite believe it in 1978 the congress told them they could and ordered them make a perfect economy with the Humphrey Hawkins Full Employment Act.
https://en.wikipedia.org/wiki/Humphrey%E2%80%93Hawkins_Full_Employment_Act
The source of the so called dual mandate. Why everyone forgets a stable dollar and balanced trade and budgets escapes me. Well mandates, dual or quintuple, do not mean the results will be delivered for as we know monetary policy cannot deliver all that economic goodness. However economists when told they were gods of the economy soon grew to love the idea and why not. Greenspan and Bernake grabed the reins and became demigods. What’s not to like, if your an economist?
bluebird: Thank you for that. I’ve perused this website at length and found some of it to be cumbersome and of limited utility. That includes the roster referenced by your link. What I’m accustomed to is much more user friendly: something more resembling the daily comments here, or the conversations at ZeroHedge. I will point out that you felt it necessary to post your message twice. That shouldn’t be necessary. I’m probably not the only one coming here who feels this way, but then again, maybe I am. Anyway, I’m over it now, and will continue to belly-ache about other things.
The Trivium4TW: Thank you for your long rejoinders a day or two ago. I’m still trying to find time to wade through them. In the mean time, I thought the following video did an excellent job of explaining the etiology of present day bankster-ism and fascist politicial-ism. (If everybody else these days can make up words, why not me too.)
The FED feeding the Beast only serves to limit the damage on the very shortest of horizons.
The boat may have tipped to an immense and highly leveraged short positions via Futures, Options, Derivatives – any and all attempts to further tips these boats merely serves to discredit these efforts.
Not that they will not doing something, anything absurd… they most certainly will make every effort, but it will be of an even shorter duration.
They are very quickly losing credibility with Marker participants and given Fischer appears to owning the bullhorn while Yellen pretends to be carefully analyzing the “Data”… the entire charade will be unmasked further by Q3 EPS which will be beyond dreadful, the stronger DX will be but a fraction of the real structural issues.
At this point all that is left is massive infrastructure programs for us and dollars to dimes or dollars to quin/quad multiples….
We shall see.
“I used to think that if there was reincarnation, I wanted to come back as the president or the pope or as a .400 baseball hitter. But now I would like to come back as the bond market. You can intimidate everybody.” James Carville
“Even the Fed” P. l’n’l
Is the Fed bigger than all the world’s market players? Or is it swimming necked? Stay tuned.
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