Comments on: Fed Rate Increase Looking Less Likely http://www.nakedcapitalism.com/2008/06/fed-rate-increase-looking-less-likely.html Mon, 23 Nov 2009 11:57:17 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: trotsky http://www.nakedcapitalism.com/2008/06/fed-rate-increase-looking-less-likely.html#comment-9685 trotsky Tue, 17 Jun 2008 19:23:00 +0000 http://www.nakedcapitalism.com/2008/06/fed-rate-increase-looking-less-likely/#comment-9685 it should have been clear from the outset - rescuing the members of the moribund banking cartel is clearly higher on the list of central bank priorities than their fake 'fight against inflation'. central banks exist in order to inflate - it is their very raison d'etre. to suggest that they 'fight inflation' is a contradiction of terms; what they like to do is inflate as much as possible without anyone noticing, i.e., while 'managing inflation expectations'. now that the lagged effects of decades of monetary inflation are beginning to percolate through the economy, spilling from financial assets into commodities, people are beginning to notice that inflation is a deliberate policy - thus all the 'hawkish talk' of late. the genie however seems to have left the bottle. it should have been clear from the outset – rescuing the members of the moribund banking cartel is clearly higher on the list of central bank priorities than their fake ‘fight against inflation’. central banks exist in order to inflate – it is their very raison d’etre. to suggest that they ‘fight inflation’ is a contradiction of terms; what they like to do is inflate as much as possible without anyone noticing, i.e., while ‘managing inflation expectations’. now that the lagged effects of decades of monetary inflation are beginning to percolate through the economy, spilling from financial assets into commodities, people are beginning to notice that inflation is a deliberate policy – thus all the ‘hawkish talk’ of late. the genie however seems to have left the bottle.

]]> By: Yves Smith http://www.nakedcapitalism.com/2008/06/fed-rate-increase-looking-less-likely.html#comment-9655 Yves Smith Tue, 17 Jun 2008 08:54:00 +0000 http://www.nakedcapitalism.com/2008/06/fed-rate-increase-looking-less-likely/#comment-9655 Hubert,<br/><br/>I had the same line of thought, but normally they use Greg Ip for those "from the Fed's mouth to the Journal's pages" communiques. The author here is Sudeep Reddy, so it's less clearly a plant. But you are right, otherwise it has the earmarks. Hubert,

I had the same line of thought, but normally they use Greg Ip for those “from the Fed’s mouth to the Journal’s pages” communiques. The author here is Sudeep Reddy, so it’s less clearly a plant. But you are right, otherwise it has the earmarks.

]]> By: Hubert http://www.nakedcapitalism.com/2008/06/fed-rate-increase-looking-less-likely.html#comment-9654 Hubert Tue, 17 Jun 2008 08:29:00 +0000 http://www.nakedcapitalism.com/2008/06/fed-rate-increase-looking-less-likely/#comment-9654 There is nothing in the WSJ story that tracks directly to the Fed. Lacker´s quote is slightly ambiguous as usual. The Fed´s "mood" - please! How did they find out about the Fed´s mood?<br/><br/>Alone the fact that the WSJ put this journalistic compositionon Page 1 and the fact that Eurodollars went up big yesterday afternoon indicate that something important is brewing - if it´s not planted by an underwater IB prop-desk.<br/><br/>I would asign a 75% probability that the Fed is really behind this article - paradoxically as no finger-"print" can be found.<br/><br/>Who is more familiar with the inner workings of the Fed/WSJ and may speculate about the making of this journalistic masterpiece ? There is nothing in the WSJ story that tracks directly to the Fed. Lacker´s quote is slightly ambiguous as usual. The Fed´s “mood” – please! How did they find out about the Fed´s mood?

Alone the fact that the WSJ put this journalistic compositionon Page 1 and the fact that Eurodollars went up big yesterday afternoon indicate that something important is brewing – if it´s not planted by an underwater IB prop-desk.

I would asign a 75% probability that the Fed is really behind this article – paradoxically as no finger-”print” can be found.

Who is more familiar with the inner workings of the Fed/WSJ and may speculate about the making of this journalistic masterpiece ?

]]> By: Anonymous http://www.nakedcapitalism.com/2008/06/fed-rate-increase-looking-less-likely.html#comment-9652 Anonymous Tue, 17 Jun 2008 05:42:00 +0000 http://www.nakedcapitalism.com/2008/06/fed-rate-increase-looking-less-likely/#comment-9652 I'm surprised at how naive they are. They really have no idea what civil unrest looks like. I’m surprised at how naive they are. They really have no idea what civil unrest looks like.

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