You’ve got that right JB. I would love to see the real numbers of how many unjustified shootings have been done by NRA members?
Although this article exposes the Fed’s position on being short volatility, and must attempt to unwind it, it does show the simplistic thinking of the Fed’s models. The money never went into circulation as the models implied.
Powell, it appears, understands this. Theory and reality are two separate entities.
“First, the question, why stop at $4 trillion? The market in most cases will cheer us for doing more. It will never be enough for the market. Our models will always tell us that we are helping the economy, and I will probably always feel that those benefits are overestimated. And we will be able to tell ourselves that market function is not impaired and that inflation expectations are under control. What is to stop us, other than much faster economic growth, which it is probably not in our power to produce?”
To put it in layman’s terms, all the QE never went into establishing an economic resurgence. It’s not possible.
The QE went to banks to bail them out, and any excess was directed into buying back Treasury Bond issuance and, of course, with the help of the Fed shorting volatility, creating a false prosperity in equities. (Financial institutions purchase stocks with the Fed’s blessing and obtain cheap volatility as a hedge. No different than when the Fed’s PPT buys S&P futures, allowing institutions to short them and buy stocks to arbitrage the action….allowing the equity markets to rise).
It’s a closed loop! The money never found its way into the economy. It stayed within the inner circle of the financial establishment. Onto bank balance sheets, into government bonds, and equities. The public was hoodwinked.
That’s why the overt appearance of inflation never showed itself. But even so, when you look at 10oz cans of coffee in the supermarket (down from 16oz), or 12 oz. boxes of pasta (down from 16oz.) we get a revelation. Hell, even the huge Coffee rolls at Dunkin Donuts years ago, are now no larger than a regular jelly donut.
The deception goes beyond packaging sizes.
Marie Callender’s pies are now shown as having 9 slices, so the calories and fats are lower than the old 8 slices per pie.
Ever try to cut a pie into 9 slices?
Yes Virginia, inflation is here, but nothing like what you’ll see coming down the road should the Fed ever let the banking system release the QE into the economy!
The public is being taken for a ride every which way they turn.
CIGA Wolfgang Rech
Fed Chair Powell’s Admission: “The Fed Has A Short Volatility Position”
January 6, 2018
For years, market watchers and Fed skeptics had warned that the record low volatility “blanket” that has fallen like a pall over the comatose market was the result of Fed actions, both direct or indirect. And while they mostly spoke metaphorically (although back in 2012 we observed a distinct shift in the VIX futs when the current head of the Fed’s trading desk, Simon Potter, replaced Brian Sack), we now have explicit confirmation that the Fed’s “short vol” position appears to be rather literal.
This is what the next Fed Chair, Jerome Powell – who is scheduled to replace Janet Yellen next month – said during the October 23-24, 2012 FOMC meeting – just one month after the Fed announced QE3, as today’s just released 2012 FOMC transcripts revealed:
I have concerns about more purchases. As others have pointed out, the dealer community is now assuming close to a $4 trillion balance sheet and purchases through the first quarter of 2014. I admit that is a much stronger reaction than I anticipated, and I am uncomfortable with it for a couple of reasons.
Saying “hello” as a greeting to someone is now politically incorrect! And possibly a crime?
“While the first daughter and now-White House adviser did not take part in the June 2016 meeting, she exchanged greetings with the Russian attorney and a lobbyist who attended the meeting as they stepped off an elevator, a person familiar with the exchange.
So it seems politeness is now treason?”
CIGA Wolfgang Rech
Mueller Now Probing Ivanka’s “Greetings Exchange” With Russian Lawyer
January 6, 2018
It’s not been a great few days for Jivanka. Following news that Jared Kushner’s company is being investigated by the SEC, The LA Times reports that special counsel Robert Mueller is now investigating Ivanka Trump’s ‘interactions’ with a Russian lawyer and lobbyist.
Mueller’s team is looking into any interactions the attorney, Natalia Veselnitskaya, and lobbyist, Rinat Akhmetshin, had with President Trump’s family members and inner circle, the Times reported.
See what happens when you forget to turn on the parental controls on your computer? Hopefully the doggy police do not see this because you might be missing a few pooches if they do!