The Fed lost control

[brutus2]

Central bankers are not sure what to believe anymore.
-------------------------------------------------------------

Central bankers and economic policy makers convened in Washington
for the annual meeting of IMF, IIF, and World Bank.

Three main themes:
1) what are the long term implications of negative interest rates
2) how disruptive is the new technology (crypto currencies, mobile payments..)
3) what does actually greening of the financial system mean in practice ?
It it about the effects of the climate change on the financial system.....and it
was the biggest subject

https://www.zerohedge.com/economics/...elieve-anymore

1) end of what is left of the free market economy

2) potentially very disruptive to those wanting monopolistic fiat power.

3) diminishing of the US petro dollar and potentially the end of US $ as reserve currency

[everything1]

1. Bonds that still beat inflation, stock prices go insane, only way left to beat inflation?, tangibles/RE go up in price.
2. Peer to Peer money transfer?, government confused, but omg the whole world is in on it.
3. Solar, wind, hydro, carbon cleaners, EV's, etc.

[oak333]

Monetarist era is over.
------------------------

Central banks were the first to recognize it and asked the governments
to manage business cycles by fiscal policy (tax + spending)

https://www.project-syndicate.org/co...letsky-2019-10

[oak333]

Interest rates are a combination of two factors: 1) inflation 2) risk

While inflation looks under control for now, risk is high in financial markets.
Higher risk asks for higher interest rates. So the markets are pushing for
higher interest rates. The yield of 10 year treasury bond is around 1.4 %.
Go to a bank and ask for a 10 year loan at 1.4 %....you will be laughed at.

But the FED, ECB, and other central banks are downright scared to increase
the interest rates. Why ? Stock markets will crash. The amount of money to
service the debt will increase hugely. The world debt is , by some estimates,
around 255 trillion $. Just perform a simple calculation how much more money
is necessary to service the debt if interest rates go up by 1 %.
Simply 255 trillion X 1 % = 2.55 trillion . That is per year ! Add 2.55 $ trillion to
the debt service already being paid. Per year.

These are ideas taken from:
Martin Armstrong
Manipulating the World Economy

[silverone]

Interest rates are a combination of two factors: 1) inflation 2) risk

While inflation looks under control for now, risk is high in financial markets.
Higher risk asks for higher interest rates. So the markets are pushing for
higher interest rates. The yield of 10 year treasury bond is around 1.4 %.
Go to a bank and ask for a 10 year loan at 1.4 %....you will be laughed at.

But the FED, ECB, and other central banks are downright scared to increase
the interest rates. Why ? Stock markets will crash. The amount of money to
service the debt will increase hugely. The world debt is , by some estimates,
around 255 trillion $. Just perform a simple calculation how much more money
is necessary to service the debt if interest rates go up by 1 %.
Simply 255 trillion X 1 % = 2.55 trillion . That is per year ! Add 2.55 $ trillion to
the debt service already being paid. Per year.

These are ideas taken from:
Martin Armstrong
Manipulating the World Economy

Right.
But, other than that..
We here in the u.s.A are Ejoying
the Best Economy in the History of the World... so..
And I can still go shop Walmart and the DollarTree!

[DBCooper]

Is there any actionable information here? Or are we just having a fun glum and doom moment, running around like chickens with our heads cut off?

[RandomMan06]

Doom and gloom

1) No one knows.. Asset inflation, rich get richer, poor get poorer, until there are riots in the streets OR sudden inflation creates a crash.
2) No one cares, for now.
3) It means you pay to fly green. Just like people payed to avoid going to hell back in the days. Someone is getting rich, and it's not you.

[oak333]

The Fed bails out the repo market second time in one week.

https://www.zerohedge.com/markets/ny...cond-time-week

[silverone]

Is there any actionable information here? Or are we just having a fun glum and doom moment, running around like chickens with our heads cut off?

Sorry but it's Just TOO Good to pass up...

[oak333]

This is an interesting interview with Frank Giustra:

https://www.zerohedge.com/geopolitic...ould-mean-gold

A few points:
----Fed is out of ammo but that would not stop them. They will call it
helicopter money or MMT (Modern Monetary Theory). It was QE
(Quantitative Easing) because it was sounding more elegant than
printing money

----It all started with Alan Greenspan. He ushered in the era of
pleasing the markets with easy money. He was the first to bail out
the markets at every crisis. Ben Bernanke set the stage for what
we are in now. All what they did was to encourage debt and speculation.

Central Banks have been buying gold for quite a while, fearing weaponization
of the US $. Wall Street ignores gold....but look at what they do, not at
what they say.

This phase of gold bull market (started 2019) is the THIRD AND FINAL WAVE
of the gold bull market which started in 2001. This phase is going to be a TSUNAMI.