14 replies to this topic

[gm_general]

I have been wondering how long can they keep up the bluff. Sure you could raise rates 1/4 point but not much more. Eventually confidence in them will trend to nil. From the work of others it seems like each central bank action provides juice to the market for an ever decreasing amount of time, that time having trended down to almost nothing now. The reaction to this has been to coordinate with other central banks on whose turn it is to "talk the market up", and they all spit out announcements now in rapid succession, to try and levitate it. Eventually it will fail and the man behind the curtain will lose his perceived power.

[relax]

Sorry O, did initially not see your post Data, thank you for the reply, I did not know, ignorance always makes one make a bigger deal out of some things, same may be true for having too much knowledge ;-)

[slupert]

http://www.federalre...51123advexp.htm

The closed door meeting of the Federal reserve on September 25, 2005 is the one ya should have paid attention to. Greenspan met with the 14 largest derivatives dealers and it was decide that no intervention was necessary and that "market forces" would be allowed to prevail. That worked well didn't it?

[pisces]

It's confusing by this action of the Fed. It wants to announce rate raise ahead of schedule? Or something else?

Probably to announce a rate rise ahead and before the stk mkt falls again, before the economic news out of Europe get worst, before the ISIS rats hit again somewhere, before the US becomes more active in Syria. If they don't raise tomorrow or in December their remaining credibility is gone. -tria

Sounds like the FED is the Wizard pf OZ or the Emperor has no Clothes - choose your poison - its all monetary theater and fraud and no substance. Why are we so stupid to believe in a "federal reserve note" with nothing backing it but what the FED says it is. Instead of "In God we trust" on the currency it should read "trust me" with a picture of Bill Clinton on the front and a picture of Monica Lewinsky on the back.

Mary AM, your commentary is very well put and right on point.

[dasein]

well - every CB seems to like the idea - and it will be hard for the FED to go against the trend -

European Central Bank (ECB) head Mario Draghi announced yesterday in a speech that the ECB may step up its stimulus efforts and that he "wouldn't hesitate" to expand quantitative easing in order to stimulate inflation and economic growth in the Eurozone. He also stated that the central bank would "... do what we must to raise inflation as quickly as possible." These comments come at the same time that the U.S. Federal Reserve Bank is strongly considering raising the federal funds rate next month in a move to curtail expansionary monetary policy in America.


Read more: Draghi Says He "Won't Hesitate" to Expand QE http://www.investope...p#ixzz3sJpHG7yM