I have written about the Federal Reserve report that says that the Fed essentially cannot allow interest rates to go up in my monthly newsletter. It's what I called the Mishkin report, because it was put together by one of Ben Bernanke's best friends. Today someone else wrote about it.
CNBC talks recovery and keeps making predictions and guesses on when QE stimulus will be paired back - and keep's pushing out its time period. Steve Liesman - and the letters LIES is key in his name - keeps saying that the Fed is watching the data.
Yellen will be your new "queen" as Ludlow put it in the above video of monetary policy. She will bring us new adventures in easy money monetary policy.
Yesterday's Fed decision to not reduce its quantitative easing(QE) money printing operation was both shocking and historic. It is very important for you to understand why they made their decision. We will look back on yesterday a few years from now as a historic event in the financial history of the United States.
Today Ben Bernanke and the FOMC will release a policy statement at 2PM and announce their command and control edict on the economy. After they do so CNBC will praise them and Steve Liesman will explain to you how Ben Bernanke is a genius.
Tomorrow marks the day of the widely anticipated FOMC meeting in which Ben Bernanke will announce a reduction in his quantitative easing money printing operation. CNBC has been talking about it all month and Bernanke is using it as a way to exit his Fed Chairmanship on a high note - by reducing QE he will be able to argue that his policies had a positive effect and more importantly if enough debt crisis hits later claim that he was not simply a mad money printer.
Larry Summers is withdrawing from the race to be the next Federal Reserve Chairman. He served as a wonderful worker bee for Wall Street banks throughout his career - he helped deregulate the banks and paved the way for their giant bubble profits in the late 1990's and 2000's that wrecked the economy in the crash of 2008.
What if the Fed pairs back QE? This has been the big worry of people the past few months and the constant talk on CNBC since May. When the stock market pulled back a bit in June people associated that pullback with the discussion that the Fed might pair back its QE bond buying program.
Finally Bernanke came out and told you what I have been saying is reality despite what the Wall Street press has been saying. The Fed is not on a tightening mode. In fact it may just as likely INCREASE QE as decrease it. He didn't say what he would do, claiming that the Fed will react to what the data is, but the admission that the Fed may actually increase QE in the future is a big admission.
Yesterday after the close Bernanke gave a speech and completely backtracked on all of the comments he made last month about reducing his QE money printing program.
As a result gold prices are up big and S&P 500 futures are up 17 points. It's nice to see the market up, but wow this is a huge Bernanke flip flop - and it is one you could pretty much see coming.
Bernanke is being told to STOP his zero interest rate money printing operations, because it is dangerously distorting the economy and he is ignoring these warnings. He will not stop his policies until they end in disaster.
A wonderful speech about corruption in the United States: from Washington DC and Wall Street, including the entire financial/banking system.
CNBC has a crazy article today saying that Central Bankers around the world are thinking of buying stocks. Not now, but maybe in five years.
The Fed is NEVER going to end its QE bond buying program. It simply can't. You see the Federal government's budget deficit is so big now that there are not enough people in the world to buy enough bonds every month to finance it so the Fed is stepping in with QE to bridge the gap.
The Fed is boxed in. It must print money in order to finance the federal government's budget deficit. Since 2009 half the US government debt has been bought by the Federal Reserve. It's never going to stop QE.
The Fed has promised to print money now every month for the next few years to try to stimulate the economy. I really don't know how more debt and inflation will force companies to hire more people, especially in view of the fact that we have been doing this now for three years already and can't see any impact. It's not just me that's skeptical. Last week a Fed governor came out and basically admitted that the Fed doesn't know what it is doing and is now just hoping its action will mean something.
"The truth, however, is that nobody on the committee, nor on our staffs at the Board of Governors and the 12 Banks, really knows what is holding back the economy. Nobody really knows what will work to get the economy back on course. And nobody—in fact, no central bank anywhere on the planet—has the experience of successfully navigating a return home from the place in which we now find ourselves. No central bank—not, at least, the Federal Reserve—has ever been on this cruise before."
I just did this podcast with Dave Skarica of addictedtoprofits.net.
In this interview we talked about the Fed's new program for unlimited money printing and what it means for the stock market. We talk about the 9/1 up volume today and last week and what it means. Of course gold and Europe too!
All they talked about yesterday on CNBC was predictions for another Fed money debt printing operation today. Many people expect the Fed to announce that it will print money and buy bonds when it meets today. I don't know if they will or not. According to Reuters 65% of economists expect the Fed to make the plunge into bond buying today.
They say the Fed will do it because of the poor unemployment report of last month.
Last week several CNBC talking heads practically swore that the Fed will announce a massive quantitative easing money pump today when it releases its 2:15 PM FOMC statement.
Now people aren't so sure.
CNBC itself has this to say in its morning market update:
"Fed Chairman Ben Bernanke is likely to do little more than keep the door open to more easing when the Fed winds up its meeting Wednesday afternoon."
Hey did you know it is still earnings season? LOL!!! CNBC isn't talking that much about earnings reports and hyping them up anymore, because they are now focused on central bank action. I bet you haven't thought that much about earnings either, because now everyone is obsessed with tomorrow's 2:15 PM Federal Reserve announcement and wondering if Ben Bernanke is going to announce a new $500 billion dollar quantitative easing money printing bond buying operation.
Ron Insana said he would on CNBC. Steve Liesman loves the idea. So I guess that makes it true.
Yesterday the Federal Reserve issued an FOMC announcement and stated that it did not intend to make any changes in interest rate policy right now. In the statement they upgraded their economic forecast for this year saying that they now expect the economy to grow between 2.4% and 2.9%, which is better than the estimate they gave back in January for growth in the 2.2% and 2.7%.
Even if the economy were to grow at 2.9% though that wouldn't be enough to spur a huge improvement in the unemployment rate or make people really feel better.
This Wednesday (29 February), Federal Reserve Chairman Ben Bernanke is scheduled to deliver his semi-annual monetary policy report to the House Financial Services Committee. Last month, the central bank said that it would likely keep U.S. benchmark interest rates near zero until at least late 2014.