Will The Fed Pick A Winning Combination?

 

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  • #23918

    NPC Fire at S. Kanns warehouse, Washington, DC 1908 It’s highly amusing to read all the ‘expert’ theories on a Federal Reserve hike or no hike tomorro
    [See the full post at: Will The Fed Pick A Winning Combination?]

    #23922
    Dr. Diablo
    Participant

    You could double or triple blind it by suggesting that, now that the Fed (who is the insider banks) has sold the planet on debt unprecedented in galactic history (by those banks, which are the Fed, which are the banks) then the best thing to do now is “fail”. –Accidentally or on purpose, don’t care, doesn’t matter. That is to say, to cause a Deflationary accident, sparked by the Fed, who are the banks, that make the repayment of those loans occur in even “thicker”, more valuable dollars/currency, transferring even more power to you and your friends, and as in Greece or Syria, killing millions.

    Because the opposite is, the banks lent all that money and they voluntarily lose on those loans, and the little people and emerging nations win, limiting U.S./Fed/Bank power? When the Fed is on record as being owned by the banks, then why do we have this illusion the Fed is a quasi-government institution, a “regulator”, or some sort of control or bulwark on the bank/financial powers? Why would we think they would do what is good for the U.S. or its people? If the 5 mafia families got together and created an organization, would you think they would regulate themselves out of profits? No. Naturally they would regulate themselves into internal order the better to have a monopoly over business in their territory and extract more vigorish. They are the same entity, legally, per their own ownership. Take the mask off and stop talking to the illusion or your thinking will be clouded.

    Seen this way, they will do what it best for their power and profits. In their world, there is NO reference to ‘the economy”, “the United States”, “employment,” “GDP strength,” the welfare of the world via the reserve currency, or anything else. Why should there be? Their only reference is them. That may make it simpler to guess what they will do next.
    1) Protect the illusion.
    2) …
    3) Profit!

    #23924
    seychelles
    Participant

    Mish: A quarter-point hike will not cause anything. The causes are already baked in the cake. https://globaleconomicanalysis.blogspot.com/2015/09/ben-bernanke-vs-john-hussman-beauty-of.html#q3JH3c4DrufuqXD4.99

    “..it will in the end always decide to do what’s best for Wall Street banks. And these banks could well make a huge killing off a rate hike.They can profit from trouble and volatility in emerging markets as well as domestic markets, provided they’re well-positioned.”
    Now you’re thinking like a central banker. Prechter has always maintained that the upcoming debacle will be curtains for central banking, at least in any time frame that we could care about. The Fed should show a little chutzpah ascending the gallows.

    #23927
    rapier
    Participant

    The rule for anyone who has a hand in policy or in finance now is, and has been increasingly for 30 years, that in every possible short term lower rates are better. The increasing part is obvious now in that it’s impossible to find anyone mainstream who thinks it is a good idea.

    That said how is the Fed going to raise rates? Words, or do they have a magic wand.

    It’s best to read this to get a handle on the mechanisms involved. Words or magic wands won’t do it.

    New York Times Describes New Fed BaBIRP Policy In Its Fed Interest Rate Explainer

    #23928
    Ken Barrows
    Participant

    “Investors” don’t care about Fed “credibility.” They do care about the Fed put, though. If the Fed can raise but convince those who matter that the put is there… voila!

    #23929
    sculptor
    Participant

    Well, I just “sold the news” and went short. we’ll see friday at option expiry if that was the right zig. Its just that everyone got so optimistic…a sure tell that the let down is around the corner.

    bottom line is this its: the fed is not making a bonifide financial decision, its a propaganda announcement. the effect on markets is psycho-illusionary, and because its not a real market, the effect will be orchestrated.

    #23943
    bluebird
    Participant

    So Friday morning the markets are down. The Fed did not hike rates and the Fed is losing credibility. This is good for Wall Street banks?

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