Wednesday, August 24, 2016

The Federal Reserve Admits
Another $4 Trillion In QE 
Will Be Needed To Offset 
An "Economic Shock"?
"In the simulations. QE and forward guidance take 10yr yields down 225-300 bps depending on the starting point for fed funds and whether you do $2 trillion or $4 trillion for QE. But that is not going to work very well if by design fed funds and 10yr yields can’t go below zero. And if expected rates are already low then forward guidance does not have much room, Fed officials will have to keep a straight face while saying they we will keep rates at zero … forever. What makes it work is that QE and committing to low rates for longer gets the long rate down quickly and this compensates for the inability to take short rates down as far as you would want .. When the Fed is starting from 3% fed funds, the combo can almost entirely offset the zero constraint, but only if the full $4 trillion QE is brought to bear. Starting from 2%, QE of $2 trillion is not enough to get long rates down far or fast enough to offset the shock."
- Citi head of G10 FX, Steven Englander
LINK HERE to the Fed Paper
LINK HERE to the commentary

2 comments:

Anonymous said...

Raging Bull-shit
"If You Can't Dazzle Them With Brilliance, Baffle Them With Bull." WC Fields

Revealed: ECB Secretly Hands Cash to Select Corporations
1

23/08/2016 by Don Quijones

The ECB’s new role as “debt-buyer of first resort” raises a whole litany of concerns. Perhaps worst of all, it grants the ECB an almost god-like grip over Europe’s financial markets: According to The Journal, Citigroup figured “that bonds eligible for ECB purchases have already outperformed ineligible bonds by roughly 30% since the bond-buying program was announced in March.”

https://ragingbullshit.com/

Anonymous said...

New revelations show a nation for sale under Hillary #Clinton




The Democratic Party often warns us that mixing big money and politics will corrupt democracy. They must have nominated Hillary Clinton to prove it.

The Clinton Foundation was ostensibly set up to solve the world’s most pressing problems. Though it’s done some fine work, its most fruitful program has been leveraging Clinton’s position in the State Department to enrich her family, friends and cronies.

It’s against federal law for charities to act in the interests of private business or individuals. Yet the Clinton Foundation secured high-paying gigs for its namesakes and helped for-profit corporations with family ties set up lucrative deals.

As it turns out, that’s probably the least corrupt part of the story.

It is becoming clear the foundation was a center of influence peddling. Rock stars. Soccer players. Conglomerates. Crown princes. All of them paid in. All of them expected access to the US government.

Want a seat on a government intelligence advisory board even though you have no relevant experience? The Clinton Foundation may be able to help.

Recently released emails prove the charity’s officials had sought access to State Department personnel while Hillary was in charge. Folks like the prince of Bahrain, who donated $32 million to the foundation, needed to get in touch.

An Associated Press investigation finds that more than half the private citizens who met or spoke with Clinton while she was secretary of state also happened to donate to her foundation. What are the odds?
Modal Trigger
The New York Post’s front cover for Aug. 24, 2016

It’s implausible that a majority of the 154 citizens — people who’d kicked in at least $156 million to her charity — would also happen to catch Clinton’s ear as she toiled away at State. It’s also worth remembering this list doesn’t even include officials from the 16 governments — many of them autocrats — who threw the foundation another $170 million.

Recently, the foundation announced it would ban donations from corporations and foreign countries if Hillary is elected president. The question is: If it’s a conflict of interest when Hillary will be president, why wasn’t it a problem when she was secretary of state?

Let’s also not forget that during Clinton’s tenure at State, she failed to disclose that regimes across the world were giving her charity hundreds of millions. Because she needed to hide this, she ended up sending 110 emails containing classified information — eight of which had “top secret” information, according to the FBI.

These days, Hillary brazenly goes on Jimmy Kimmel to clown around about her “boring” emails.

Well, if they’re so irrelevant, why was she hiding them from the Justice Department? If it’s no big deal, why did it take four years and a lawsuit against the State Department to gain access to her planning schedules? Why did she lie to the American people? Erase tens of thousands of emails? Set up a private server in the first place?

Hillary claims running the State Department gave her the experience and temperament necessary to be president. But if anything, it reminds us of the Clintons’ propensity for scandal and dishonesty. And if Clinton wins this year, she’ll become the most ethically compromised president in contemporary times. Perhaps ever.















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