I'm sorry... but it took a law to create the FED... to say the FED doesn't answer to the US President and Congress is really dumb. The FED can be removed in the same fashion if it is deemed non-productive - that also means they know they are at risk. I'm not about to suggest that is happening, but they exist because of congress and the president. As was said earlier - there is nothing in Washington that doesn't owe allegiance to some political aspect or party - even the Supreme court is pretty much now a political wing and the FED is not different.
yup - your claim that the QE has been easing is unsupported. There is nothing showing they have stopped spending $85 billion a month as they have been for months on end. Interest rates are rising in spite of the spending... go figure.
There was quite a bit of talk when Obama announced that he would not reauthorize Bernankes next term. Most of the talk had to do with how it was a surprise to Big Ben, and how he had to hear about it on TV/the NET; instead of from the Pres.
So; no it is not a rubber stamp. Though it might be more like voting for President where the people vote on the Candidates that those in power pick for them to vote on. But it is not a done deal as to which candidate wins the primary or which of the two, Republican or Democrat win the Presidency.
The fed can be removed. But the chances of it happening are nil.
Something I just thought of. QE is a bond buying program; right? Isn't that a finite resource? Or do the banks 'create" bonds from thin air for the fed to "buy" at full value?
Quote: I'm sorry... but it took a law to create the FED... to say the FED doesn't answer to the US President and Congress is really dumb. The FED can be removed in the same fashion if it is deemed non-productive - that also means they know they are at risk. I'm not about to suggest that is happening, but they exist because of congress and the president
Wow...really Doug? I'm sorry too...to break the news to you, that there's nothing federal about the federal reserve. The law that created the federal reserve system was passed without the required constitutional amendment needed to do so. And since then, the Fed cannot be removed in any fashion or under any circumstances period. The Fed never felt at risk at any time for any reason since its inception exactly 100 years ago. They came to exist through fraud,deception and bribery. Its a matter of historical FACT. I'm sorry about my earlier post mentioning Greenspan's quote, it was not on Charlie Rose but with Jim Lehrer on PBS News Hour
K38khtCrN-4
s5SfT0CM8yA
-Nothing in the world is more dangerous than sincere ignorance and conscientious stupidity- Martin Luther King
-Real knowledge is to know the extent of one's ignorance-Confucius
Quote: , that there's nothing federal about the federal reserve.
It doesn't matter its Washington, nothing happens at that level of government without other parts of the government signing off on it. Theyll always do each other favors as for the timing of things.
Literally nothing happens in washington or at the highest levels of government without politics. You dont become the fed by not playing politics just like you dont keep the job if you wont.
Theres accountability and it may not to be to the voters (though they can control it overall if enough vote the same way) but to the political party leaders, donors ect. They all want to be in the inner circle and invited to the parties and on the whose its list or have their legacies protected.
No offense miggs at all, but anyone who says something is Washington is above politics hasnt spent much time in Washington. Even youth sports are political in DC.
For the current situation its an interesting one though. Either theyll end it before the years over since thats generally enough time for voters to forget or likely wait till the mid term is over. Yes Ben could give a proverbial finger on the way out and end it during election season but heck want to cement his legacy with it. That will mean ending it when it wont have much of an impact or during a time when people will least notice.
Quote: nothing happens at that level of government without other parts of the government signing off on it
I get your "everything is politics", but when the Fed makes monetary policy, "signing off on it" is just a formality, for show of protocol. Capitol hill has no say before implementation, only the president has to look good. Have you ever heard of a Fed chairman being removed,deposed or fired? Basebal, tell me, was there accountability from P.Volker for his role in the S&L scandal or Greenspan for aiding and abetting the banks with the sub-prime debacle? And letting the investment banks play the casino with derivatives? And the Bernank will be remembered for pumping extreme amounts of digital money into the markets and who pays for all this criminogenic environment they created? And you hear directly from the horse's mouth (with a touch of arrogance) that the Fed is independent and that NO other agency can overrule its actions, do you not believe him? lol It's quite the legacy they leave for themselves,they all gave the middle finger on their way out to the American people...
Miggs, the American People have a little used right to remove anyone from office, or to tear down any institution that assumes a tyranical, or absolute, power over them.
The American People have the right, codified into the Constitution, of Rebellion. And have done so on two occasions without Criminal prosecution, because it is legal. Though they lost both times.
This really isn't the place for that debate. Rather I simply point out that in absolute terms; no one is above the People of the United States. And that the People, if they so choose, can end any Institution or Office Holders Power. Not saying they should, just saying they can.
Though you do pose an interesting point. Can the Government delegate Constitutional Authority to a Private Corporation?
BTW, for TODAY ONLY, you can buy the break out on AGQ buy at 24.45, you could do up to a dime of that to play the break out on silver.
AGQ is a leveraged ETF that works off the silver futures. Thats the small edition. However, if you prefer to stay away from leverage, SLV you could do tho its moved away from its buy point.
Just a heads up for those playing along at home.
BTW, I forgot to add this, ALWAYS MANAGE RISK when having money in the markets. Use a STOP. Max stop you would give this would be 1-2 pts. in case it goes against you
Ok, now I am going to point out why Doug is wrong in telling me that there will be no QE tapering. This is very simple and I have of plenty evidence to show why. This is also a great example to show how markets ALWAYS know FIRST and are ahead of the news.
Now Doug claims that theres no QE easing yet. But Doug is WRONG. QE tapering will happen. We know this to be true. How do we know this to be true even tho we haven't seen the Fed come out and say it and reduce purchases? Its very easy my friends, we turn to the markets for the answer. As always, the markets are right, not opinions and as a trend trader I follow these patterns and I know whats starting to move in either direction before its made the news and makes front page headlines.
Exhibit 1- gold and silver dropping. Thats the easiest of them all. These suckers tho have been dropping for a while now and they really picked up their downtrends this year. But we can drill down deeper by looking at other areas of the market.
You see, there are many stocks that are interest rate sensitive. These are areas that investors, that's is funds and institutional investors would park their money for the yield as the Fed continued with QE. These areas of the market therefore were market leaders because that's where all the money was parked. These sectors continued to climb and climb. But then, slowly but surely, distribution started to show up. By distribution I mean they were down, day after day after day after day because investors were starting to sell and move away from those sectors. These stocks stopped appearing on the week 52 high list (remember stocks on week 52 highs, or yearly highs are a sign of strength and are being bought up), and started dropping.
What sectors are those? They are the REIT and Utility sectors. These areas of the market are very interest rate sensitive and BENEFIT when rates are LOW. Investors park money in them for the high yields they get rather than staying in cash that pays nothing.
So, in May of this year, both REITs and Utes started dropping. The market was telegraphing that it already knew interest rates were going to start rising even if it was a small increase. REMEMBER, markets are ALWAYS forward looking in time. They discount in the present what will happen in the future. That's exactly whats happened with REITS and Utes. They have dropped dramatically in price as investors picked up that rates were rising.
Finally, the long bond, the 30 year note also started to get flushed in May, as investors left. That also was telling us rates would be rising. the long bond is and has been making yearly 52 lows for a while now.. remember yearly lows indicate continued selling, that is investors are leaving the long bond and not buying it anymore.
So, Doug is wrong in saying that because QE hasn't changed that means there will be no winding down. What he fails to see and understand is that markets start moving BEFORE its announced.
As a trend trader, I have been aware of rising rates for a while now. I can see it across the board in the markets. I therefore am in the right by saying, the Fed will be reducing QE in the future.
So the big lessons and takeaway is that markets forecast AHEAD of time what happens, many times by 3-6 months. Nothing is a surprise in the financial markets, by watching price action and understanding what sectors are moving up and moving down we know what to expect.
Disclaimer: While a tremendous amount of effort goes into ensuring the accuracy of the information contained in this site, Coin Community assumes no liability for errors. Copyright 2005 - 2026 Coin Community Family- all rights reserved worldwide. Use of any images or content on this website without prior written permission of Coin Community or the original lender is strictly prohibited. Contact Us | Advertise Here | Privacy Policy / Terms of Use
First Page
Previous Page
Posted 08/22/2013 4:04 pm
!!
