A Colossal Failure Of Presidential Leadership

You probably already know we are not a big fan of President Trump here at GMM, not because we are Democrats or Republicans, liberal or conservative, but it is our vehement disgust over his incompetence.  Of course, the COVID pandemic is not his fault but he is fully responsible for the country’s abject and relative failure to contain and control it.

The data speak in the following charts.  What is stunning about the latest upsurge is that it excludes the crisis in New York city that dominated the numbers in the first wave.  There. Is. No Excuse!

Face Masks As A Political Symbol

Nothing so absurdly sums up more the President’s incompetence and gross negligence, which has caused tens of thousands of undue deaths and protraction of the health and economic crisis, than his mixed messaging and politicizing something so simple as wearing a face mask.  Maybe not so mixed.

Mr. Bender: You’ve commented on Biden’s mask a few times, and a couple of reporters who wear masks. Do you view that as a protest of you? Do you feel like people wear masks to show their disapproval of you?

Mr. Trump: It could be, yeah. It could be. But it could also be they feel better about it. I mean, I’m okay with it. Look, I’m okay with it. But the mask is a double-edged sword and I see it. People come in, they’re talking through the mask for hours. They probably don’t clean them after, you know, they get a little cocky, right? Then they take the mask, they put their finger on the mask, and they take them off, and then they start touching their eyes and touching their nose and their mouth. And then they don’t know how they caught it.  — WSJ Transcript Of President Trump’s Interview, June 18th

Un-freaking-believable!  The President of the United States, folks.

 

Covid_1_June29

Covid_2_June29

The above data are normalized and take into account population size so no bullshit that the U.S. has a larger population or is testing more (look at death curve).

Heavy Political Cost

The American people are onto the President’s bungling of the crisis.  A president that shows strong and decisive bipartisan leadership during a crisis usually skyrockets in popularity.  I read somewhere, but couldn’t document it, that President Clinton was kind of disappointed he was never able to exhibit his true leadership skills because the country was never tested with a major crisis under his watch.

President Trump’s dithering, politicizing almost all aspects of the crisis, and flip-flopping are now extracting a huge political toll not only on his prospects for re-election but the Republican hold on the Senate.

Politics_June29

Iowa Senate Seat Now In-Play

This was a real shocker as we clicked it on today.  Senator Joni Ernst was favored with an almost 70 percent probability to retain her Senate seat a little more than one month ago. Today, the market is pricing it at 50 percent probability.

The Democrats could be looking at a filibuster-proof Senate majority,  holding close to 60 Senate seats on January 1, 2021.  Stunning.

Politics_2_June29

 

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Biggest Losers In Social Media Ad Boycott

Great chart from Statista on which companies are at risk of getting hammered by social media ad boycotts.  GMM’s Coach C has been all over us about this one, and early,  selling and flagging the companies that will be hurt.

 

FB_Boycott

NYT_Boycott

boycott of advertisers on social media is gaining momentum, and Facebook is the primary target. Marketers are expressing unease with how it handles misinformation and hate speech, including its permissive approach to problematic posts by President Trump.

Who’s doing what. The boycotts have followed a call by the advocacy group Stop Hate for Profit, which is keeping a running list of participating companies. Over the weekend, Starbucks and Diageo said they would pause advertising on all social media platforms. They’re among the biggest spenders on Facebook ads: Starbucks spent $95 million and Diageo $23 spent million on the platform last year. Other companies have boycotted Facebook specifically, including Honda America, Levi Strauss and Patagonia.

Who’s next? Procter & Gamble, the world’s largest advertiser, said it wouldn’t rule out a pause on Facebook ads. (Its big rival, Unilever, is stopping ads on Facebook, Instagram and Twitter through the end of the year.) Big ad agencies generally take their orders from clients, but they also have leeway to steer spending to certain platforms over others. – NY Times, Dealbook

NYT_Boycott_2

More commentary by Statista,

Starbucks became the latest company to hit the pause button on social media advertising on Sunday, joining an ever-growing list of major brands that pulled their ads from social networks, and Facebook in particular, in an attempt to push for stronger action against hate speech on the part of social media companies.

“We will pause advertising on all social media platforms while we continue discussions internally, with our media partners and with civil rights organizations in the effort to stop the spread of hate speech,” Starbucks wrote in its official announcement of its decision, which puts the coffee chain alongside companies such as Coca-Cola, Unilever, Verizon, Patagonia and Levi’s, to name just a few. As opposed to the other companies mentioned above, Starbucks hasn’t officially joined the “Stop Hate for Profit” initiative, which singles out Facebook for its inaction against hate speech especially during the recent protests for racial justice in America.

While several companies have paused social media advertising altogether, Facebook is currently taking the brunt of the boycott, as it is seen as the epitome of what is wrong with social media these days. As our chart shows, the company’s ad revenue amounted to nearly $70 billion last year, dwarfing the ad sales of its social media competitors. – Statista

 

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COTD: Five Shades Of Recovery

COTD – Chart of the Day

Five Shades of Recovery

Source:  FiveThirtyEight

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QOTD: Religious Bad Men

QOTD:  Quote of the Day

Trump_at_Church

“Of all bad men, religious bad men are the worst.” – C.S. Lewis

C.S. Lewis, the Oxford/Cambridge professor during World War II is a cult hero with white American evangelicals,  some of Trump’s strongest supporters.  He would be appalled at their behavior,  especially their anti-intellectualism and anti-science bias.

Myself, along with my 6 and 3-year old daughters, were in one of my best friend’s wedding at St. John’s Church the Sunday after September 11th, which led to this post,  My 9/11 Story — The Day History Changed. 

 

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Market Begins To Internalize Reality

Summary

  • The financial media is beginning assign blame to the recent stock market weakness to the spike in COVID cases and the potential for a November Democratic sweep of the White House and both chambers of Congress
  • Nothing new to GMM as we have been on this early and stood alone
  • The stock market’s valuation is at a historical extreme
  • The stars are aligned for a nasty and protracted bear market. Timing is anyone’s guess
  • The Fed has created an asset scarcity induced stock market bubble, similar to the Beanie Baby bubble of the late 1990s

In graduate school,  Rudy Dornbush, Jacob Frankel, and Michael Mussa, all giants in the field of macro and international economics,  gave a seminar to our economics department.  I was invited to dinner with them along with the department’s international economics professors.  The one take-away from that dinner was a comment seared into my mind by Jacob Frankel, who went on to become the Governor of the Bank of Israel  and now serves as Chairman of JPMorgan Chase International.

Why Markets Do What They Do

Over dinner, he laughingly mocked the financial media for their propensity to assign specific reasons for why the market did what it did on a daily basis.  He quoted two diametrically opposed and contradictory headlines, one from the NY Times and the other from the LA Times, which explained why the market was down that day.   That comment has stuck with me throughout my career — nobody knows what really causes the stock market to do what it does on a daily basis.  The best, and the safest explanation I have heard on a down day, for example, is  “there were more sellers and buyers,” which doesn’t even suffice.  The comment should be qualified, “there were more sellers than buyers at yesterday’s closing prices.”

In a free market that clears — which are rapidly moving toward extinction with the Fed’s backstopping of almost everything — the number of buyers always equate to the number of  sellers.   It is prices that adjust to allow the market to match-up sales with buys to move to equilbrium.   It is increasingly obvious the Fed can’t allow markets to operate freely as the economic consequences of allowing prices to move to their equilibrium and fair value are not politically palatable or maybe not even be possible without blowing up the global economy.

Conversation With Coach Carol

Before proceeding, a sidenote on last night’s (Tuesday)  conversation with GMM’s crack stock-picker Coach Carol, who has a much longer-term view and a much better track record than yours truly.  She was much less sanguine on the market than I can remember and has been trimming her positions, concerned about the end of the quarter positioning and profit-taking by institutional investors.   Our ears perked up.

Unfortunately, she has been sidelined, bravely battling a relapse of ovarian cancer, and has not been able to post as much. But she did remind us,

there will continue to be individual companies that will continue to grow and thrive regardless of market conditions. Not everything collapsed during the mass shutdowns of Covid-19, indeed some companies thrived and shot to new ATHs. One needs to be far more disciplined and selective in choosing which stocks are appropriate to hold in a bear market. Also consider your tolerance for risk, because markets will be more volatile in a bear market.“

I also had a little health scare last week and have been unable to update her recent sales, which I will try to get to over the weekend posting the trade tickets with a timestamp.

Reason Du Jour For Today’s Sell-Off 

Nevertheless, the financial media attributed today’s sell-off to two major factors:

  1. The novel coronavirus infections setting a single-day national record.  Even though COVID related  deaths have lagged the new cases, experts believe its only a matter of time before they catch up, 


    Deaths always lag considerably behind cases,” Anthony S. Fauci, the nation’s top infectious-disease specialist, told Congress at a hearing Tuesday. In the weeks to come, he and others said, the death toll is likely to rise commensurately.  – Washington Post

    Covid_Relative_Case_Jun24

    Hat Tip:  @Sundae_Gurl

    Covid_Death_Jun24

  2. The increasing potential and rising crest of a Blue Wave in the November elections, where the Democrats take control of the White House, the Senate, and the House.

    “This to me is a Biden move,” Jim Cramer said Wednesday as the market sold off. “When I see across the board selling today, that’s Biden … he sounds like another president that you get that is not favorable to capital. If that’s the case, I want to have a little cash.”  – CNBC

    CNBC_2_Jun24
    See the article here.

    Times Poll_Jun24
    PredictIT_Jun24
    CNBC_Jun24

    See the article here.

Nothing New Here 

Readers of the GMM should not find any of the above either novel or surprising as we have been all over both, early and alone.

We are growing increasingly bearish on America’s prospect to arrest the spread of COVID-19 due to growing restlessness over the shelter-in-place rules leading to quarantine fatigue, weak political leadership, and lack of uniform measures to mitigate the spread across, and within, all fifty states. — America’s Bearish Day At The Beach, GMM, April 25th

If the November election is legit, a big if, it will be a freaking blow-out.

We have our money where our analysis is, betting on a Blue Senate, and if we are right, we are looking at a 439.11 percent compounded annual return (CAAG) by election day.  Beat that in the stonk market, folks. —  Prepare For The Senate To Flip, April 13th

Market In Denial 

Corporate taxes are going higher and so are capital gains taxes.

Biden is already on record saying he wants the capital gains tax —  15-20 percent on most assets — to correspond to ordinary income tax brackets (currently 10%, 12%, 22%, 24%, 32%, 35% or 37%).  And don’t expect the income tax brackets to remain at current levels either.

The tax changes, especially on long-term capital gains, will go along way in making the U.S. tax system appear “fairer” and will eliminate the nonsense, such as following,

Mitt Romney made $13.7 million last year and paid $1.94 million in federal income taxes, giving him an effective tax rate of 14.1%, his campaign said Friday.

His effective tax rate was up slightly from the 13.9% rate he paid in 2010. — CNN Money

The market seems to think it’s business as usual and not one peep about this from the FinMedia geniuses and the potential for massive tax selling as the general election approaches.

You know our mantra, folks, always best to panic sell before everyone else does. — GMM, June 18th

Mocking Of The Whales And Extreme Valuation

We have written in several posts that when the idjit trading newbies begin to mock Warren Buffett is is time to beware,

Cue the “Buffett is an idjit” Tweets.  Then run like hell.  — GMM,  June 9th

But this one really takes the cake,

https://twitter.com/DavidSchawel/status/1275536899227234305?s=20

Howard Marks, a liquidationist?  You’ve got to be shitting me.

My money is on and with Buffett, Marks, and Grantham.  Anyday, anytime, all the time.

Valuations

The macro gang at GMM has been out of the market for several months and won’t even think about a long-term position until the market valuation becomes much more attractive, which is a long way down.   We defer to our stock-picker, Coach Carol,  to scout out individual stocks with special stories where money can be made even in a bear market.

Our favorite valuation metric illustrates the stock market is currently at an extreme valuation level.  We concede the metric should be helped by a record GDP growth print in Q3 and that record low-interest rates and unprecedented Federal Reserve market intervention be considered to normalize the number.  But still, come on, Mr. Market, stop deluding yourself.

Market_Cap_June24

Upshot

The stars are aligned, the moon is in the seventh house and Jupiter is aligned with Mars for a nasty and protracted bear market.  The political winds are blowing against capital, the robustness of the economic recovery is growing increasingly uncertain, and globalization, the main driver of the secular bull market is in retreat.  The timing is anyone’s guess, however.

Fed Induced Asset Scarcity

The Fed, with its massive quantitative easing,  removing trillions of dollars of assets from the markets, has created a scarcity induced Beanie Baby-like stock market bubble,

Beanie_Baby_2_June24

Beanie_Baby_June24

..the little bean-filled sacks were more than a toy: they were an investment vehicle. Fueled by a rabid collectors’ market, Ty Inc. had just exceeded $1B in annual sales. Certain “retired” characters were going for as much as $13k on the resale market — 3,000x their original price.

his [ Ty Warner] biggest stroke of genius came in 1995, when he surmised that if he “retired” certain Beanie Babies after a short period of time, it would create an illusion of scarcity (in reality, Ty was pumping out millions of them in overseas factories).

After being retired, Beanie Babies that sold for $5 would go for $15-20 — and on the internet, some sold for as much as $13k.

One night in 1999, Ty announced the retirement of several Beanie Babies… and nothing happened. No market swell. No value increase. Nothing.

It was the beginning of the end. Collectors panicked and took to eBay to sell off huge swaths of the toys, flooding the market with a massive surplus of Beanie Babies. Their value, which was contingent on the illusion of scarcity, plummeted.

In a desperate bid to save a sinking ship, Ty announced that all Beanie Babies would go out of production at the end of 1999. It didn’t work. — The Hustle

Yes, we get it, Apple’s stock is not a beanie baby.  We used the analogy to make a point.  Spare us the emails, please.

As always, we reserve the right to be wrong.

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Could Mounting Crises Sink Brazil’s Bolsonaro?

Even with a political career full of controversy and condemnation, Jair Bolsonaro built a new coalition of voters and won the Brazilian presidential election in a landslide. Now, he’ll need every bit of fervent support he’s gained as a cascade of political crises and one of the world’s worst coronavirus outbreaks threaten to sink his presidency.

#Brazil#Politics#BloombergProfiles ——-
Like this video? Subscribe to Bloomberg on YouTube:
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Enough Of This Racist Nonsense!

We are reposting a piece we wrote two-years ago.

Ironically, when we were back on the east coast in August 2018, we told one of our friends Trump’s racist dog whistles and blatant racism would lead to riots in the American streets.  Well,  here we are.

The results of last night’s primaries led the Drudge Report to proclaim,

A genenational time bomb going off’

We also find it interesting Mike Huckabee — a so-called “Christian” minister —  took down his racist tweet and we had to go out and find it and paste it back into the post.    Nothing Christ-like about his post, by the way.

Originally Posted on 

We try to remain nonpartisan at the Global Macro Monitor,  have no problem taking shots at both parties, and, personally, are comfortable splitting tickets on an election ballot.  However, this tweet from Mike Huckabee strikes a deep nerve in us that really, really pisses us off.

My Late Brother

Today is the birthday of my late brother who was murdered by an undocumented immigrant.  As his killer stabbed him in the chest, he declared, “all Anglos need to be exterminated.”

 

Jun24_Greg

 

My brother left a two and five-year daughter.  It was an incredibly tragic experience that I wish on no family.

If any family has a right or reason to be angry at the immigration situation, it it ours.

However,  the Mexican national that killed my brother did so, not because he was Mexican or an immigrant, but because he was a murderous psychopath.  Just as the school shooters that are terrorizing and killing our nation’s children do so, not because they are white, and predominantly middle class, but because they are mentally ill.

Not all white students are shooters but a very infinitesimally small fraction are.  Should we therefore keep all white students out of high school because they fit the profile of a shooter?   That is the same asinine logic driving current immigration policy,  if one exists at all.

Stoking Fear and Exploiting Tragedy 

Shame on the president and his aides for exploiting the families of those who have suffered the tragedy of losing a loved one in such a situation.   Stoking fear, racism,  and bitterness to divide us is not going to bring any of our family members back nor will it do anything to solve the problem or prevent further tragedies.  On the contrary, it will only instigate more violence.

We need to focus on fixing the problem by first thinking hard and deciding what we want as a nation, not retreating to our default positions of what economists call corner solutions, that is completely open or completely closed borders.

What About Our Ancestors?

Under current law, most, if not all, our ancestors who immigrated to this great country would be deemed illegal and, before last week, would have had their children separated from them.   The generous immigration policies of a younger America is what made this nation great.   In a graying society immigration is essential to economic growth and cultural dynamism.

Yes, we should enforce the law but what law?

Such an important question needs to be debated in a forum where there is mutual trust and respect.   We can start by stopping and condemning the racist tweets like the one below.

https://twitter.com/GovMikeHuckabee/status/1010497564435730434

 

[The orginal tweet was removed but we found a copy]

huck

And this guy calls himself a Christian, much less a minister of the Gospel?   Governor Huckabee’s tweet is pure evil —  racist, intended to instill fear and to divide us.  Not to mention the tweet bears false witness against the minority leader, his sister in Christ, who graduated from Trinity College in Washington, D.C…

I fear for my brother, Governor Huckabee,  on Judgement Day,

Then he will say to those on his left, ‘Depart from me, you who are cursed, into the eternal fire prepared for the devil and his angels.  For I was hungry and you gave me nothing to eat, I was thirsty and you gave me nothing to drink, I was a stranger and you did not invite me in, I needed clothes and you did not clothe me, I was sick and in prison and you did not look after me.’

They also will answer, ‘Lord, when did we see you hungry or thirsty or a stranger or needing clothes or sick or in prison, and did not help you?’

He will reply, ‘Truly I tell you, whatever you did not do for one of the least of these, you did not do for me.’   Then they will go away to eternal punishment, but the righteous to eternal life.  Gospel Of Matthew, Chapter 25 

Best Policy In Our View

Finally,  we favor a relatively tolerant immigration policy because some of the greatest Americans we know are first-generation immigrants and generate a multiple of benefits to our society and economy, much more than they take from it.   It also is true at the macro level as reflected in a recent study by the NY Times,

The study found that between 2005 and 2014, refugees “contributed an estimated $269.1 billion in revenues to all levels of government” through the payment of federal, state, and local taxes — which far outweighed their cost to the country. “Overall, this report estimated that the net fiscal impact of refugees was positive over the 10-year period, at $63 billion.” When the study was completed in July, however, it was never publicly released, and the Trump administration dismissed the findings. – Vox, Sep. 2017

Why would the administration spike such a report?

By the way,  some of our friends were granted amnesty by the darling of conservatives, President Ronald Wilson Reagan.

We Need More Risk Taking Labor

Finally,  we have written about the labor shortages the country faces, especially in construction, which are driving up the price of homes putting, say,  a starter home out of reach of most young Americans.

Why wouldn’t we want more of these workers, who are willing to risk their lives to come to this country  to make a better life for their families.  You know, just as the pilgrims did?   Is not that the kind of work ethic that will Make America Great Again?   Just askin’.

We are better than this,  America.  Let’s work together to do a good immigration deal.  One that secures the borders,  maximizes our country’s interest, is respectful to all,  and is fair and just.  Amen.

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The Best Of America

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John Bolton Confirms What GMM Suspected All Along

Bolton

Xi is playing that guy like a Stradivarius fiddle. – GMM, Oct 2019

John Bolton’s new book is now in the hands of journalists and the deets are beginning to leak out.  We state categorically GMM is not a big fan of Mr. Bolton or his neocon cabal.  He just seems like a guy that has never met a country he doesn’t want to bomb.

We were also very upset Bolton refused to testify during the impeachment trial, choosing, what we perceived, money over country by not offering up to the Senate jurors what he has just unloaded on the POTUS in his new book.

In hindsight, however, it probably wouldn’t have changed any votes, and the timing and release of the book now almost seals the fate of the President and his Senate Republican enablers’ for defeat in November.

 

Election odds

 

That’s a good thing for the country, the world, and the economy.

Let’s hope the Democrats do not misread their coming mandate but instead use it as an opportunity to implement the difficult economic and political structural reforms, which have long been needed.   It’s time for some real leadership led by a government filled with policy wonks, experts, and the best that science can offer.

Strong Economy 

All of the Dems’ objectives and goals will be neutered unless they create an economic environment where small businesses can thrive and a strong, competitive, and dynamic private sector drives the economy.

We won’t get into much detail here but let’s start with getting big money out of politics, where rent-seeking corporations, labor unions, and all the above lobby the pols in order to change the rules of the game in their favor.   K Street in Washington needs to be leveled.

Then onto to tax reform and dealing with the country’s wealth and income distribution problems.  Education, training, and providing opportunities trump income redistribution though some of that will be needed.

We also do worry there is no turning back as pols have discovered the “free money” of the digital printing press to monetize every one of their pet projects.  If I wanted to live in a high inflation economy,  I’d move to Argentina.

High inflation disproportionately hurts the poor more than any other income group.

Market In Denial 

Corporate taxes are going higher and so are capital gains taxes.

Biden is already on record saying he wants the capital gains tax —  15-20 percent on most assets — to correspond to ordinary income tax brackets (currently 10%, 12%, 22%, 24%, 32%, 35% or 37%).  And don’t expect the income tax brackets to remain at current levels either.

The tax changes, especially on long-term capital gains, will go along way in making the U.S. tax system appear “fairer” and will eliminate the nonsense, such as following,

Mitt Romney made $13.7 million last year and paid $1.94 million in federal income taxes, giving him an effective tax rate of 14.1%, his campaign said Friday.

His effective tax rate was up slightly from the 13.9% rate he paid in 2010. — CNN Money

The market seems to think it’s business as usual and not one peep about this from the FinMedia geniuses and the potential for massive tax selling as the general election approaches.

You know our mantra, folks, always best to panic sell before everyone else does.

Social Issues

The time has come for the country to deal with its racism problem and the legacy of America’s original sin of slavery.

The American Street is demanding it and must be dealt with in the context,

 No peace without justice, no justice without forgiveness.

How it all plays out is anyone’s guess but we are thankful it finally appears the country is taking it serious, thanks, mostly,  to the younger generation, by the way.  We saw a lot of young white voters in the recent nationwide protests.  We are certain they were not members of Antifa either.

We also believe we’re witnessing in the American Street, before our very eyes in lightspeed fashion, the torch being passed to a new generation of a more racially diverse and colorblind America.   That’s a good thing.

John Bolton’s Revelations Confirm GMM 

.

The following are some excerpts to remind our readers that the revelations that are now coming out in Bolton’s book were said on this site first without insider information based purely on our political analysis.

 

GMM_June18

Some more,

Curb Your Enthusiasm 

George W. doesn’t have a Nobel Peace Prize that we know of.

We also hope it is not an all or nothing negotiation with Trump and Kim. – GMM, Aug 2018

Get over it,  China is not going away and they are not going to change the structure of their economy just because the self-proclaimed “world’s greatest negotiator” demands it. Xi is playing that guy like a Stradivarius fiddle. – GMM, Oct 2019

If the Trump team makes concessions to China, it could raise doubts they went easy in order to get some oppo for his campaign, for example.   That weakens the American negotiating position and lessens the chance of a deal…

We have no doubt the arms of the People’s Liberation Army (PLA) intelligence agency,  including the MSS, have the sophistication and technology to cook up, say, a deep fake video of Hunter Biden even bribing Jesus and generating a viral sensation on social media. – GMM, Oct 2019

Upshot

Here’s to hoping the prediction market is right and the country can limp through the next six months.

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The United Socialist States of America (USSA)

You’d think the Fed governors would have the sense the political problem they are creating for themselves.  Pumping up the stock market — supporting corporate bonds will do that —  while Main Street suffers is a recipe for sweeping changes to come to the Federal Reserve Act.

The Federal Reserve Act has undergone many amendments after its implementation. 

In 1933, by way of the Banking Act of 1933, the Federal Reserve Act was amended to create the Federal Open Market Committee (FOMC), which consists of the seven members of the Board of Governors of the Federal Reserve System and five representatives from the Federal Reserve Banks. The FOMC is required to meet at least four times a year (in practice, the FOMC usually meets eight times) and has the power to direct all open-market operations of the Federal Reserve banks.

12 USC § 225a

On November 16, 1977, the Federal Reserve Act was amended to require the Board and the FOMC “to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.” The Chairman was also required to appear before Congress at semi-annual hearings to report on the conduct of monetary policy, on economic development, and on the prospects for the future. The Federal Reserve Act has been amended by some 200 subsequent laws of Congress. It continues to be one of the principal banking laws of the United States.  — Wikipedia

We have no doubt a People’s Quantitative Easing (QE) is coming.  We had a small taste of it during the COVID crisis response   That is a direct credit by the Federal Reserve into individual checking accounts.

Not that we oppose it in political spirit but the economics will be a disaster over the long-term.  We can think of much better ways to deal with America’s income and wealth distribution problem but we are already down that rabbit hole and there is no way back.  Do you really think the pols are going to give up what they percieve as “free money?”

The United States is on the fast track to a Japanese style zombie economy, where the Nikkei 225 is still 45 percent below its December 1989 high, even after massive fiscal stimulus and quantitative easing, which includes direct equity purchases by the central bank.  Japan is also a net saver and the U.S. is not.

John Authors of Bloomberg pretty much nails it on today’s Fed announcement,

Meanwhile, the case for intervention is slim, as Brian Chappatta explained forcefully for Bloomberg Opinion. There was no way the Fed needed to do this…..In the short run, it grows ever harder not to buy stocks. In the long run, this will look like a mistake. – Boomberg

Prepare For A Massive Blue Tsumami

PredictIt

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