Posts Tagged ‘Philipp Hildebrand’

Notes From Underground: The Roar From Yellen Quieted the Bloviators

February 11, 2014

The talking heads of financial visual media tried to create a circus around the new Fed Chair Yellen’s first official Congressional testimony. Yellen proved a worthy animal trainer and backed critics and supporters to their corners as she delivered very measured and COGENT responses to her inquisitors. The media was hoping for “red meat” but the Fed chair served up a vegetarian casserole full of nutritional value but nothing for the perpetrators of pabulum to sensationalize. It seems as though Yellen watched tape of Mario Draghi for she knew which Congressional posers needed long, drawn out answers so as devour their allowed five minutes of time. Well done Madam Chairman. This testimony of the Fed Chair, as mandated by Congress, has become about as relevant as the G-7 photo-op. If Congress has questions, put them in writing and establish a record of correspondence and thus a trail of responsibility to satisfy the dual mandate. It was reported that the House Republicans on the Finance Committee was to going to have a second hearing post Yellen’s testimony  in which four invited guests would provide a rebuttal of the policy put forth by Yellen.


Notes From Underground: It’s Now Showtime for the G-20 and Its Diminutive Sidekick, the G-7

February 11, 2013

This week brings the Moscow circus to the world stage. The world’s major economies meet in Moscow as the Russians are presently in the leadership position of the G-20’s rotating presidency. It used to be the G-7 nations that crafted an economic blueprint for the World Bank and IMF to somewhat adhere, but as much of the global economic growth is now in the BRICS and the other emerging economies, the world’s former colonial powers have had to make room for the rising economic nations. Most of the time the G-7 and G-20 meetings have been photo-ops for world leaders, but every once in a great while something constructive actually makes its way into global policy. The immediate global consensus after the Lehman debacle helped stem the global credit markets from total collapse. This G-20 meeting will not be one of the constructive outcomes as the G-20 members are nowhere near any type of consensus.


Notes From Underground: U.S. Treasuries, A Fixed Market That Is Badly Broken

January 10, 2012

One of the most important elements to the purpose of the financial markets is to be an indicator of flawed policy. If money is too loose, the BOND VIGILANTES will assure policy makers that it is time to tighten by pressuring BOND YIELDS higher. As Bill Clinton’s attack dogJames Carville so elegantly stated: “I want to be reincarnated as the bond market because it intimidates everyone.” The huge FED QE PROGRAM has temporarily castrated the BOND market as FED INTERVENTION means that the BOND VIGILANTES lack the fortitude to signal the markets. Even the EUROPEANS have momentarily silenced the market by the huge liquidity pump via the LTRO program with another LTRO coming at the end of February.


Notes From Underground: From Russia WITHOUT Love–Mikhail Khodorkovsky

December 27, 2010

A few stories from Russia today. First, the Russian Judicial System rendered a totalitarian decision as the oligarch Khodorkovsky was again found guilty of some type of misappropriation of funds when he controlled YUKOS, the Russian energy giant. This is another black eye for the RULE OF LAW in Russia as the verdict appeared to be predetermined with the heavy influence of Prime Minister Putin. I don’t doubt for a moment the tragic shortage of justice in Russia, but the question is: Do the markets truly care, or as I continually remind, is MONEY FASCIST? Global investors will set aside criticism of a nation’s societal and legal injustices if the investment returns are high enough and the government is stable.