30 replies to this topic

[Rogerdodger]

GLOBAL BANKS SEND WARNING

FED TO BUY CORPORATE DEBT?  As Fed nears rate hikes, policymakers plan for 'brave new world'

 

Mired in a world of low growth, low inflation and low interest rates, officials from the Federal Reserve, Bank of Japan and the European Central Bank said their efforts to bolster the economy through monetary policy may falter unless elected leaders stepped forward with bold measures. These would range from immigration reform in Japan to structural changes to boost productivity and growth in the U.S. and Europe.

 

"What we have seen since 2007 is half-baked and half-hearted structural reforms. That does not help supporting inflation expectations. That has helped entertain disinflationary expectations,” Coeure said.

 

In a lunch address by Princeton University economist Christopher Sims, policymakers were told that it may take a massive program, large enough even to shock taxpayers into a different, inflationary view of the future.

"Fiscal expansion can replace ineffective monetary policy at the zero lower bound," Sims said. "It requires deficits aimed at, and conditioned on, generating inflation. The deficits must be seen as financed by future inflation, not future taxes or spending cuts."

Edited by Rogerdodger, 28 August 2016 - 10:43 AM.

[tradesurfer]

Is the Fed really going to raise rates BEFORE the election?  it would seem unprecedented for such a thing to occur.

 

If they raise rates in September they could potentially swing the entire election in the opposite direction that it is going now and put mr. T in a prime position to win.

 

Not only that but they could potentially prick the bubble stock market and send it spiraling down violently right into the election.  As we all know the stock market is the monkey on every voters back.  If it is going up into and during an election the voters will be all pacified.  But if it hits their wallets big time, then they will get angry and demand change.

 

I would be SHOCKED to see Fed raise in September and try to turn tables on the election.  I guess it all depends on next weeks jobs numbers.

[clueless]

Is the Fed really going to raise rates BEFORE the election?  it would seem unprecedented for such a thing to occur.

 

If they raise rates in September they could potentially swing the entire election in the opposite direction that it is going now and put mr. T in a prime position to win.

 

Not only that but they could potentially prick the bubble stock market and send it spiraling down violently right into the election.  As we all know the stock market is the monkey on every voters back.  If it is going up into and during an election the voters will be all pacified.  But if it hits their wallets big time, then they will get angry and demand change.

 

I would be SHOCKED to see Fed raise in September and try to turn tables on the election.  I guess it all depends on next weeks jobs numbers.

 

I think Janet is proposing some massive hyperinflationary money printing scheme that would bankrupt the 99% even more. smart money is already out (look at the volume) and invested in real estate and gold. dollar would tank, stocks would missile launch. hard to imagine her doing this without a preliminary crash to allow her pals to buy in at the lows. 

[Data]

http://www.bondecono...gradualism.html

[clueless]

my favorite comment to this news at zero hedge:

The way to f**k these {bleeeep}, and the rest of the 1%, is to not spend.  Do not go to movies, do not buy food you do not need, if your rent is too high then move to another state, do not take vacations, do not use doctors unless absolutely necessary, do not buy a new car (fix the old one), do not buy a new house, don't buy new clothes, work as slowly as possible (just enough to keep your job).  In other words, bring the economy to a f**king halt, let it crash, and start over.   This was supposed to happen after Lehman, but the Fed stepped in to save the wealthy at the expense of the middle class.  We will continue to suffer if we continue to play into their hands.

[OEXCHAOS]

Who has deflationary expectations? I sure don't!

 

Mark

[cobb]

 The United States has 500 billion dollar deficits a year continuing for years and now the Fed Reserve wants addititonally  hundreds of billions a year   from Congress  in deficit spending for "rebuilding" America. Are the Central Banks just doubling down on their bets, and will buy all those additional dollars Congress appropriates?  Once Congress decides to buy into this, there will be plenty of billions going to other things than "rebuilding" America.   Perhaps SPX will actually get to 5000 before it all ends when someone stops the central banks?  I need to study more what happened in Germany and other countries that did this before.  

[SemiBizz]

Deflation depends on the beholder...

 

Are we talking about currency appreciation or diminishing prices...?  or both?

 

Bottom line is we are OVERPRODUCTIVE - and yet these geniuses down at the F'ed can't figure that out...

 

Alan Greenspan knew it, he was so far out as to suggest that we continue to manufacture excess goods and dump them in the sea or bury them if necessary... to keep the economy up.

 

So we're already overproductive and we're about to expand the man/machine interface by 5X  as the internet expands from 10B to 50B I.P. addresses, majority of them machines...over the next 5 years... through IoT (Internet of Things)

 

So could we have deflation... as fewer people work to make a living through "productive" pursuits as machines take over?  As we see personal income PLUMMET behind less employment and Personal spending dive with it?

 

Could we see an extension of the decline in discretionary spending as incomes shrink and taxes rise?

 

I'd say deflation is a very strong possibility...

 

Let's get real, we have 30 year olds still living with Mom and Dad ...

Edited by SemiBizz, 28 August 2016 - 01:24 PM.

[brucekeller]

Pretty hard to mess with the Fed when they have a literal money printing machine.  Unless they start being duplicitous about wanting to raise inflation, it's probably still a pretty silly time to be bearish. 

[clueless]

Deflation depends on the beholder...

 

Are we talking about currency appreciation or diminishing prices...?  or both?

 

Bottom line is we are OVERPRODUCTIVE - and yet these geniuses down at the F'ed can't figure that out...

 

Alan Greenspan knew it, he was so far out as to suggest that we continue to manufacture excess goods and dump them in the sea or bury them if necessary... to keep the economy up.

 

So we're already overproductive and we're about to expand the man/machine interface by 5X  as the internet expands from 10B to 50B I.P. addresses, majority of them machines...over the next 5 years... through IoT (Internet of Things)

 

So could we have deflation... as fewer people work to make a living through "productive" pursuits as machines take over?  As we see personal income PLUMMET behind less employment and Personal spending dive with it?

 

Could we see an extension of the decline in discretionary spending as incomes shrink and taxes rise?

 

I'd say deflation is a very strong possibility...

 

Let's get real, we have 30 year olds still living with Mom and Dad ...

 

So....if the Fed is hellbent on hyperinflation and what amounts to counterfeiting, and there are no jobs hence no spending to speak of, and the kids cannot possibly buy a first home, we end up with .......the banks owning all real estate, all stocks, all bonds, all formerly public utilities, all manufacturing, such as it is. so tell me how this is any different from the soviet system. looks the same to me.