“The FOMC is firmly committed to fulfilling its statutory mandate from the Congress of promoting maximum employment, stable prices, and moderate long-term interest rates. The Committee seeks to explain its monetary policy decisions to the public as clearly as possible.
Such clarity facilitates well-informed decision making by households and businesses, reduces economic and financial uncertainty, increases the effectiveness of monetary policy, and enhances transparency and accountability, which are essential in a democratic society.”
THE REALITY
This blog entry really isn’t being negative.
Or even really unfair.
After all, the Fed has been blowing up the US economy, and taking the world to the brink of economic and political disaster, about every eight years since 2000.
They put the banking system and the financial elite first, and the devil take the hindmost.
Their policy errors will be a new chapter in the backward predicting textbooks of the dismal science. And I would probably enjoy this if I were reading about it in the more distant future.
What were they thinking?
And they appear to be about right on schedule for their next Doofenshmirtz Moment.
US Treasury Warns Stock Market Is Approaching ‘Two Sigma Threshold’ and Quicksilver Markets
They are not evil. Or even dangerously incompetent and frightened. They are equal measures servile, bureaucratic, arrogant, and banal.
And they are caught in a credibility trap.
Jesse
Administrator
Author
March 18, 2015 1:16 pm
[img?w=585&h=376[/img]
Anonymous
March 18, 2015 2:18 pm
No country in their right mind would buy Bama bucks( Us Treasuries)So if they can not push it down their throats they will push MYRA down ours.Assuming it will all go down like Obamabcare and no one will read it before its passed or executive order,prepare to be screwed-Just buy gold don’t use banks
Administrator
Author
March 18, 2015 2:40 pm
Yellen announced her decision. BUY STOCKS!!!!!
[img[/img]
Anonymous
March 18, 2015 10:30 pm
QE is like trying to cure addiction by spiking the punch bowl and then not taking it away…
Administrator
Author
March 19, 2015 8:08 am
2015-03-18 15:07 by Karl Denninger
What You Learned Today
There was one lesson today from the FOMC decision.
The Fed downgraded their economic forecast. The market, in response, shot up 50 handles on the S&P and four hundred DOW points from where it was before the announcement.
What this tells you is, quite simply, this:
ALL of the market’s upward move is a consequence of uneconomic decisions made by firms.
It is not due to growth.
It is not due to organic profits.
It is not due to an improving economy.
It IS due to borrowing to buy back stock and other leveraging games, all of which are Ponzi schemes.
And this will end exactly as it did in 2000 and 2008, Larry Kudlow’s chortling notwithstanding.
overthecliff
March 19, 2015 9:18 am
They are riding a tiger and don’t know how to get off. My prediction is that thy will print until the electricity turns off.
THE MISSION
“The FOMC is firmly committed to fulfilling its statutory mandate from the Congress of promoting maximum employment, stable prices, and moderate long-term interest rates. The Committee seeks to explain its monetary policy decisions to the public as clearly as possible.
Such clarity facilitates well-informed decision making by households and businesses, reduces economic and financial uncertainty, increases the effectiveness of monetary policy, and enhances transparency and accountability, which are essential in a democratic society.”
THE REALITY
This blog entry really isn’t being negative.
Or even really unfair.
After all, the Fed has been blowing up the US economy, and taking the world to the brink of economic and political disaster, about every eight years since 2000.
They put the banking system and the financial elite first, and the devil take the hindmost.
Their policy errors will be a new chapter in the backward predicting textbooks of the dismal science. And I would probably enjoy this if I were reading about it in the more distant future.
What were they thinking?
And they appear to be about right on schedule for their next Doofenshmirtz Moment.
US Treasury Warns Stock Market Is Approaching ‘Two Sigma Threshold’ and Quicksilver Markets
They are not evil. Or even dangerously incompetent and frightened. They are equal measures servile, bureaucratic, arrogant, and banal.
And they are caught in a credibility trap.
Jesse
[img
?w=585&h=376[/img]
No country in their right mind would buy Bama bucks( Us Treasuries)So if they can not push it down their throats they will push MYRA down ours.Assuming it will all go down like Obamabcare and no one will read it before its passed or executive order,prepare to be screwed-Just buy gold don’t use banks
Yellen announced her decision. BUY STOCKS!!!!!
[img
[/img]
QE is like trying to cure addiction by spiking the punch bowl and then not taking it away…
2015-03-18 15:07 by Karl Denninger
What You Learned Today
There was one lesson today from the FOMC decision.
The Fed downgraded their economic forecast. The market, in response, shot up 50 handles on the S&P and four hundred DOW points from where it was before the announcement.
What this tells you is, quite simply, this:
ALL of the market’s upward move is a consequence of uneconomic decisions made by firms.
It is not due to growth.
It is not due to organic profits.
It is not due to an improving economy.
It IS due to borrowing to buy back stock and other leveraging games, all of which are Ponzi schemes.
And this will end exactly as it did in 2000 and 2008, Larry Kudlow’s chortling notwithstanding.
They are riding a tiger and don’t know how to get off. My prediction is that thy will print until the electricity turns off.