Posts Tagged ‘Federal Reserve’

Notes From Underground: Dear Senate Republicans & Banking Committee, STFU

November 13, 2013

Ladies and Gentlemen of the Senate: Just put forward the candidacy of Janet Yellen by acclimation because it is a done deal. It cannot be stopped and so any posturing for the voters back home and any potential donors is a waste of time and energy. Also, don’t provide the idiot talking heads with any “red meat” to keep their empty heads talking. This afternoon’s release of Yellen’s testimony proves that Vice Chairwoman Yellen is a very intuitive politician. HERE IS THE MOST ASTUTE POLITICAL PIECE OF THE STATEMENT (in my opinion):

(more…)

Notes From Underground: Jackson Hole is Running On Empty (September 3 REISSUE)

May 14, 2013

Notes From Underground will resume Thursday night. I wanted to issue an old piece from the day after the Jackson Hole Symposium of August 2012. It refreshes where were then and looking at the world now. Yes, we’ve reissued this piece before, but once you reread, you’ll see it’s still wildly relevant.

I also want to remind my readers: Bernard Connolly will be on with Rick Santelli this Thursday morning on the Santelli Exchange. It takes place between 10-10:30AM CST. Enjoy (and click on link below to read the post)

 

Notes From Underground: Jackson Hole is Running on Empty

Notes From Underground: U.S. to be the Top Energy Producer (Then Fiscal Compromise is a No Brainer)

November 12, 2012

The Financial Times headline played up the report from the International Energy Agency (IEA) that by 2017 the U.S. will become the world’s largest energy producer. The use of fracking and other newly developed technologies has enabled the exploitation of previously uneconomic carbon deposits. In 1974 I sat in an economic geography class in which the professor claimed that the U.S. was full on shale oil and gas and its development was merely a matter of price. Being a know-it-all about the Club of Rome studies on the limits of growth, I entered into a lively debate with the prof about why he was wrong and the effects of the energy crisis was going to lead to the demise of Kapitalism. If I could remember his name I would send an appropriate apology.

(more…)

Notes From Underground: BIDEN GOES TO CHINA–“YOUR MONEY IS SAFE WITH US”

August 17, 2011

(and I Thought Madoff Was In Jail)

It seems that Vice President Biden used some of his miles to head to China for his summer vacation. The Chinese have been vocal critics of the U.S. and its profligate ways. As the largest foreign holder of U.S. Treasury debt, the Chinese have more than a passing concern in the outcome of U.S. economic and fiscal policy. The Chinese are not the single largest holder of U.S. debt as that award goes to the FEDERAL RESERVE. The Obama administration sent BIDEN to reassure the Chinese that the U.S. still maintains a FICO score more than 720.

(more…)

Notes From Underground: The Greek Parliament Shows Its Confidence … Will the Markets Do the Same?

June 21, 2011

In a widely predicted outcome, the Greek Parliament voted 155-144 to sustain the government of George Papandreou and allow for next week’s vote on the new austerity budget–and the release of another round of bailout funds. The global equity markets and the EURO sustained a second day of rally as investors were willing buyers of risk in the HOPE of a respite from the turmoil of European sovereign debt. Tomorrow’s Financial Times has an article about Greek citizens cashing in their EUROS for GOLD.

(more…)

Notes From Underground: Budget Battle 2012/Presidential Election Year

April 13, 2011

Today’s headline in the Financial Times, “U.S. LACKS CREDIBILITY ON DEBT-SAY IMF.” I rarely agree with the IMF but on this issue as the readers of NOTES are aware, I can find common ground with the economists at the world’s commentator on global economics. It is easy to say the U.S. lacks credibility when the world is observing the budgetary circus that has visited Washington, D.C. for the past two weeks. The CREDIBILITY issue is not solely with the president and the legislature but also with the FEDERAL RESERVE. If the FED errs in its aggressive monetary easing it will be a horrendous blow to the U.S. and the global financial system. The FED has so much at stake because it has more than $2 trillion of DEBT INSTRUMENTS on its balance sheet and if the U.S. is deemed to be an unworthy borrower just what will the value of those assets be on the market.

(more…)

Notes From Underground: The Irish “AYES” lead to “NOES” for FIANNA FAIL

March 1, 2011

The elections in Ireland went as expected but not as some hoped. A coalition will have to be formed as the FINE GAEL failed to win an outright majority. It appears as if FINE GAEL will have to coalesce with the Labor Party. What remains to be determined will be the effort to renegotiate the borrowing rates previously established with the European Fianancial Stability Facility (EFSF). Fianna Fail was so badly trounced from its economic policies and its bending to the desires of the large European Banks.

(more…)

Notes From Underground: When Spanish Bonds are smiling, Bernanke visits Frankfurt in search of clues

November 18, 2010

The Spanish government sold $2.5 billion (€3.65) 10-YEAR NOTES at auction and Dr.Pangloss said it went well, as the average yield was 4.615 percent. Finance Minister Elena Salgado said she saw “absolutely no reason” to compare Spain’s situation with that of Ireland or Portugal. Well Madam Finance Minister, all is not well as you have 20 percent unemployment and an exploding deficit as tax revenues implode and expenditures increase. Spanish DEBT is yielding 210 basis points more than Germany. The Spanish economy is struggling and German growth is buoyant, and yet, Spain is paying more for long-term financing, there is definitely a problem. The Irish situation remained in limbo as EUROPEAN demands are being met with resistance by the politicians of the Emerald Isle. Deputy  Prime Minister Mary Coughlan said the Irish corporate tax rate was “non-negotiable.”

(more…)