Last week, the Fed’s “luck” may well have run out. I say luck with quotes; as when you’re the one holding the gun – or PRINTING PRESS, in this case; and the government supports any action you take – legal or illegal, overt or covert – the odds of “success” are dramatically higher. Not to mention, when you still own the world’s “reserve currency”…
However, your “odds” decline dramatically when the PRINTING PRESSES reach the point of “DIMINISHING RETURNS”; as the U.S. (and global) economy did long ago…
…particularly when your track record is so ABYSMAL, you become a worldwide laughing stock…
TPTB have been using this “loaded deck” for so long, they’ve brainwashed themselves into believing their own lies; that is, that through historic doses of MONEY PRINTING, MARKET MANIPULATION, and PROPAGANDA, they could control economies – and citizens’ perception of such – indefinitely…
Does the PPT (Plunge Protection Team) Control the Market?
However, following recent success in suppressing gold and interest rates whilst propelling the “DOW JONES PROPAGANDA AVERAGE” to a record (nominal) high, they committed their most brazen act of hubris to date. In attempting to “prove” to the (already distrustful) masses that its “UNPRECEDENTED” monetary policy was “working,” the FOMC inserted language in its policy statement about considering a tapering of QE; and thus, suggesting the economy was in fact “recovering”…
Taper Tipoff? Bernanke hints Easing End is Nearing
Unfortunately, the REAL WORLD doesn’t see the “recovery” that BOGUS government data (at least some of it) purports; as the only place a “NEW EMPLOYMENT PARADIGM” exists is in the BLS’ seasonally-adjusting, birth/death adding, labor participation ignoring, part-time/minimum wage world; as reported the first Friday of each month…
Jack Welch makes Good Points about Cooked-Job-Number Claim
And thus, when the FOMC moronically suggested the possibility of “tapering,” the ENTIRE WORLD panicked; realizing the only reason stock and bond markets have risen so dramatically is Federal Reserve QE and PPT stock buying. One day soon – perhaps very soon – it will become painfully apparent that QE can NEVER end…
Peter Schiff and the Untapering “Waiting for Godot” Era
In the meantime, the shock of realizing Treasuries’ “buyer of last resort” could be departing was too much for the WORLD’S MOST OVERVALUED MARKET; not to mention, the countless global markets tied to it…
A day after Bernanke, fear grips the market
…per David Schectman’s prescient comments…
Think about what happened today. On the mere “possibility” that the Fed will slowly withdraw the punch bowl all of the major global markets tanked. It is very clear – if the Fed cuts back on QE, the markets crater. That’s what today’s market action says, and in no uncertain terms. That’s why Jim Sinclair says “QE to Infinity.
I can only imagine the look on Bennie’s face Friday afternoon when the all-important 10-year bond yield surged to 2.50% – from 2.17% Wednesday morning – representing the bond market’s worst two day performance in history. This MORON truly thought markets would embrace his economic “bullishness”; although he tried as hard as possible to “mask” it via ambiguous “Fedspeak”…
10Y Treasuries hit 2.50% – Highest since Debt Ceiling Crisis
In other words, he catastrophically underestimated the markets’ core assumptions; causing Treasury yields to rocket to their highest levels since the 2011 debt ceiling crisis…
…FOREVER killing any shred of credibility the Fed may have still had…
Bernanke Kills Fed Credibility and the Confidence Fairy in One Shot
Bennie and friends may be idiots, but they’re not idiots; and thus, realize rising rates will KILL OFF any possibility of economic recovery – not to mention, individual, municipal, and sovereign SOLVENCY…
Bond market nerves threaten to end Europe’s calm
…and thus, within minutes of the 10-year breaching 2.5%, they unleashed their most PATHETIC, COWARDLY “operative” to date; enlisting their Wall Street Journal “mouthpiece” to suggest the tapering comments were “misread” by markets…
Sadly, Jon Hilsenrath’s 15 minutes of fame was already long over; and thus, less than an hour after the initial knee jerk response, Treasury bonds closed at two year lows…
Hilsenrelevant Still? Fed Mouthpiece unleashed to Save the Day Again
As I stated LOUD AND CLEAR in my Thursday morning podcasts, the Fed MUST recant on its “tapering” hints ASAP; as the ENTIRE WORLD just gave such language a ringing “vote of no confidence”…
Markets plunge in fear of end to US money-printing
However, it may already be too late to put that “genie” back in the bottle; as by now, the ENTIRE WORLD realizes the only reason stock and bond markets have levitated at historically “bubblicious” valuations is government stimulus. In other words, billions are starting to understand HYPERINFLATION is the only possible result of a MONEY PRINTING Ponzi Scheme that MUST grow larger to survive…
Research shows ALL Paper Money Systems Failed
In my view, last week’s FOMC cataclysm marks the beginning of what could be a very rapid end to the government’s CONTROL over financial markets and citizen perception. The “Hilsenrath desperation” was a “CLEAR AND PRESENT SIGNAL” of what’s to come; and shortly, the Fed may become as relevant as the soon-to-implode COMEX PAPER PM market.