The first thing to go will be the success of manipulations like the 12:00 PM EST “cap of last resort” – which strangely, has “morphed” closer to 11:30 AM EST in the past year or so, after a decade of showing up at the “same Bat-time, same Bat-channel.”
…as opposed to tried-and-true “2:15 AM” raids – as we’ve seen on 612 of the past 702 trading days; Precious Metal “flash crashes” in the wee hours of the night; and to the contrary, the “dead ringer” algorithm on the “Dow Jones Propaganda Average” I first wrote of four years ago – which shows up roughly three-quarters of all trading days, including eight of the last nine. Let alone, the “DLITR,” or “don’t let it turn red” algorithm – which you can see below, was used eight times yesterday alone. This, on a day in which the day’s biggest news was a downward revision of January personal spending as dramatic, and “unexpected,” as last week’s revision of January retail sales.
Which, in turn, caused the Atlanta Fed’s first quarter “GDP now” estimate to plunge all the way to +0.6% – versus the comically overstated, but still pathetically weak, 1.4% increase in the fourth quarter. This, just one week after the Atlanta Fed’s own President, Dennis Lockhardt, said an April rate hike was possible due to his “confidence in a 1Q GDP bounce”; and two weeks after the Fed not only didn’t raise rates as expected, but published a policy statement so dovish, even I was taken aback.
To that end, Lockhardt’s comments were such obviously egregious lies, I wrote an entire article about them, titled “the most transparent lie of all time” – and followed it up this weekend with “part II,” when the Atlanta Fed’s 1Q forecast plunged to “just” 1.4%. Come to think about it, the first article was not devoted solely to Lockhardt, but San Francisco Fed President John Williams as well.
“With each Fed failure to raise rates – despite unrelenting propaganda of ‘recovery’ – without fail, it has taken no more than 24 hours for propaganda of rates being raised at the next FOMC meeting to emerge. And this time was no different, with not one, but two Fed governors claiming this week that ‘rising inflation’ and ‘falling unemployment’ suggest a rate hike is possible as soon as next month. Both of whom, I might add – Dennis Lockhardt of the Atlanta Fed, and John Williams of the San Francisco Fed – voted to keep rates at 0.25% last week!
In Lockhardt’s case, his inane ramblings of being ‘confident in a 1Q GDP bounce’ – when the quarter is already over, featuring the ugliest economic data yet, sound like the words of a delirious lunatic, who will literally say anything he is told. As for Williams, who smugly predicted four rates hikes in 2016 in January, after the Fed’s first ‘rate hike’ in a decade nearly destroyed the world, there may not be a more two-faced politician on the planet, which is saying quite a lot.”
Which, mere days later has been proven true, in spades; which has got to be some kind of record for Fed futility, even amidst its long, sordid history of failure – such as this gem from “Maestro” Greenspan himself, at the 2010 Financial Crisis Inquiry Commission hearings, when asked about the Fed’s role in the 2008 crisis.
“We didn’t forecast better than anyone else…We regulated banks that got in trouble like anyone else. Could we have done better? Yes, if we could forecast better. But we can’t.”
As for Williams, only the title of yesterday’s Zero Hedge article could do him justice; i.e., “Is this Fed President an idiot? Read these two headlines and decide.” The first, from –January 4th, in the very CNBC interview when he predicted four rate hikes this year…
…and the second, yesterday; in Zero Hedge’s immortal words, “presented without comment.”
By the way, no Fed lambasting could be complete without former Dallas Fed President (as of January 1st) Richard Fisher – who just one day after Williams’ “idiotic” January 4th speech, admitted the Fed “frontloaded a tremendous market rally starting in 2009…to accomplish a wealth effect”; and is a “giant weapon with no ammunition left”; before taking his lunacy to hyperdrive two weeks ago, in espousing “we (the Fed) injected cocaine and heroin into the system (starting in 2009), and are now maintaining it with Ritalin.” By the way, yesterday’s Dallas Fed manufacturing index reading of -13.7 – it’s fifteenth straight negative monthly reading – was so bad, one respondent espoused “anyone that says we’re not in recession, is peddling fiction.”
This, my friends, is when you know the “countdown to total, irreversible Central bank failure” has begun –not just at the Fed, but everywhere. I mean, since Fisher’s “giant weapon with no ammunition left” rant, the ECB has taken interest rates to negative 0.4% and increased its QE program to €80 billion/month; the Bank of China “unexpectedly” lowered rates yet again; and the Bank of Japan took Central bank lunacy to whole new plateau – in first saying it would not take rates negative; only to do so a week later; and two days later, say it could go lower than the ECB if required. Which, if yesterday’s report of the weakest Japanese retail sales since the 2010 tsunami and 2014 sales tax hike is any indication, will come sooner rather than later. Let alone, the “massive stimulus package” – paid for by massively fabricated currency units – the “Land of the Setting Sun” is expected to unveil next month. But don’t worry, as Paul “Atlas Shrugged” Krugman told Shinzo Abe this weekend that Japan’s nearly 300% debt/GDP ratio ‘doesn’t matter.’
In other words, signs that the “end game” has arrived could not be more obvious, or plentiful – like most currencies trading near, at, or below all-time lows (and conversely, gold trading near, at, or above all-time highs); as well as record high, parabolically growing debt; the weakest global trading activity since the Depression; and of course, “infallible” Central bankers looking less so with each passing day. Regarding the latter, the “countdown to total, irreversible Central bank failure” has begun”; and when the fuse finally burns down to the powder keg – perhaps, much sooner than most can expect – the time to PROTECT oneself from the catastrophic aftermath will be long past. By the way, I simply cannot wait to hear what Whirlybird Janet says at her 12:20 PM EST speech at the New York Economic Club, as her own data says the U.S. economy is on the brink of recession.