Thursday, June 16, 2016

Generation Madoff Is Self-Imploding

Global Central Banks are holding their very last round of ammo back for possible Brexit next Thursday, because as it turns out, they were assuming it wouldn't happen...

“This is an event that is possible, and the probability increased in the last few days, but the base scenario that we have does not include the Brexit...turbulences could arise, and we intend to stabilize the market in case such a situation arises.”

Parsing today's economic gibberish is an exercise in debasing oneself to the level of drooling idiot. Nevertheless, I heard one alchemist on Bloomberg this morning saying that the Bank of Japan is on the verge of making a "policy error". In other words, 25 years of failed economic policy and money printing to cover up a declining economy was not the policy error, it's the incremental wafer thin mint that causes the "error". Because we all know that there's a right way to print money and a wrong way, and you have to get it just right.

The Nikkei is in 1986:
"I'm sensing a policy error is at hand..."

Then there's this just in:

"The collateral damage and unintended consequences of this prolonged experiment with very low interest rates [and] very big balance sheets are starting to have a meaningful [negative] effect on the economy," 

As I said just yesterday, of course it's the exact other way around - The LACK OF economy drives low interest rates, but these Ponzi Schemers don't want to admit that financialization IS the problem, because that would mean THEY are the fucking problem.

And lastly, in the extremely competitive competition for biggest idiot, the dumbest thing I heard yesterday, was at the very end of Janet Yellen's press speech, she literally said this:

"Maintaining our sizable holdings of longer term securities should help maintain accommodative financial conditions and should reduce the risk that we might have to lower the federal funds rate to zero in the event of a future large adverse shock"

"We need to keep our last .37% of powder dry, in case recessions have not been fully eliminated by seven years of non-stop bullshit"