14Aug 2013

Never Mind the Bullards!

⋅ 4 Comments

Bullard Needs to See More Data

“The Fed needs to see more data on macroeconomic performance for the second half of 2013 before making a judgment” Federal Reserve Bank of St. Louis President James Bullard’s pretty vacant explanation about the pace of its $85 billion-per-month program of bond buying.

After talking taper for months it should now be clear what we have been saying here for months- the Fed has no exit strategy. See the Smaulgld.com string of articles tagged Fed exit strategy. The Fed likes to talk taper but print paper and they don’t know how to stop.

The delicious irony in all this latest back peddling from tapering is the rationale given: “we need to see more data”! The Fed has five years of data that decisively shows they have been printing money with no discernible positive impact on the economy despite the incessant wishful thinking and Keynesian cheerleading.

The Fed is stuck and they know it. Federal Reserve Chairman Ben Bernanke himself admitted that the economy is weak and would “tank” if interest rates went higher. Rates have been heading higher, not because of an improving economy but because of all this taper talk. Imagine how high rates will rise if they actually stop buying treasuries.

Without the Fed’s purchases of US Treasuries, demand would dry up driving the price of the bonds down and the yields soaring while also dragging down the stock and real estate markets-precisely the markets the Fed intended to inflate.
Buy Gold and Silver
Further Reading:
There’s just not enough inflation.

Fed loses Credibility if it doesn’t hit its inflation target
 (but somehow has credibiity if it keeps bluffing about tapering)

Get Free Updates From Smaulgld.com

Subscribe to Smaulgld.com and get the free “In Case You Missed It” weekly email as well as updates and analysis on gold, silver, real estate and the economy.

Also get the free report “Twelve Key Differences Between Gold and Silver” when you subscribe.









Please visit the Smaulgld Store for a larger selection of recommended books, music, movies and other items.

Or you can support Smaulgld.com by making all your Amazon purchases through the search widget below and by ordering your gold and silver by clicking on the JM bullion ads on the site:

Buy Gold and Silver

DISCLOSURE: Smaulgld provides the content on this site free of charge. If you purchase items though the links on this site, Smaulgld LLC. will be paid a commission. The prices charged are the same as they would be if you were to visit the sites directly. Please do your own research regarding the suitability of making purchases from the merchants featured on this site.

The content provided here is for informational purposes only. Making investment decisions based on information published by Smaulgld (SG), or any Internet site, is not a good idea. Accordingly, users agree to hold SG, its owner and affiliates, harmless for all information presented on the site. SG presents no warranties. SG is not responsible for any loss of data, financial loss, interruption in services, claims of libel, damages or loss from the use or inability to access SG, any linked content, or the reliance on any information on the site.

The information contained herein does not constitute investment advice and may be subject to correction, completion and amendment without notice. SG assumes no duty to make any such corrections or updates. As with all investments, there are associated risks and you could lose money investing. Prior to making any investment, a prospective investor should consult with its own investment, accounting, legal and tax advisers to evaluate independently the risks, consequences and suitability of that investment. SG disclaims any and all liability relating to any investor reliance on the accuracy of the information contained herein or relating to any omissions or errors and as such disclaims any and all losses that may result.

Posted in: Economics ⋅ Tagged: , , , , , , , , ,

Post Navigation