{"id":15190,"date":"2015-12-12T08:48:14","date_gmt":"2015-12-12T13:48:14","guid":{"rendered":"http:\/\/olduvai.ca\/?p=15190"},"modified":"2015-12-12T08:48:58","modified_gmt":"2015-12-12T13:48:58","slug":"december-16-2015-when-the-end-of-the-bubble-begins","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=15190","title":{"rendered":"December 16, 2015\u2014\u2013When The End Of The Bubble Begins"},"content":{"rendered":"
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December 16, 2015\u2014\u2013When The End Of The Bubble Begins<\/a><\/h3>\n<\/header>\n
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They are going to\u00a0layer their post-meeting\u00a0statement with a steaming pile of\u00a0if, ands\u00a0& buts. It will exude an abundance of caution and a dearth of clarity.<\/p>\n

Having judged that a 25 bps pinprick is warranted, the FOMC will then plant\u00a0itself\u00a0firmly in front of the\u00a0great flickering\u00a0dashboard in the Eccles Building. There it will\u00a0repose to\u00a0a\u00a0regimen of \u201cwatchful\u00a0waiting\u201d, scouring the entrails of the \u201cincoming data\u201d to divine its next move.<\/p>\n

Perhaps the waiting won\u2019t be so watchful as all that, however. What is actually coming down the pike is something that may put the reader, at least those who have already\u00a0been invited to join AARP, more in mind of\u00a0that once a year hour-long special\u00a0broadcast by Saturday morning TV back\u00a0in the days of yesteryear; it explained how the Lone Ranger got his mask.<\/p>\n

Memory fails, but either 12 or 19 Texas Rangers rode high in the saddle\u00a0into a box canyon, confident they knew what was around the bend. Soon there was a lot of gunfire and then there was\u00a0just one, and that was only because Tonto\u2019s pony needed to stop for a drink.<\/p>\n

Yellen and her posse better\u00a0pray for a monetary Tonto because they are riding headlong into\u00a0an ambush in the canyons of Wall Street. To wit, they cannot possibly raise money market interest rates\u2014-even by 75 bps\u2014-without massively draining liquidity from the casino.<\/p>\n

Don\u2019t they know what happened to the $3.5 trillion of central bank credit they have\u00a0digitally printed since September 2008? Do they really think that fully $2.8 trillion of it just\u00a0recycled right back to the New York Fed as excess bank reserves?<\/p>\n

That is, no harm, no foul and no inflation?\u00a0The monetary equivalent of a\u00a0tree falling in an empty forest?<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

December 16, 2015\u2014\u2013When The End Of The Bubble Begins They are going to\u00a0layer their post-meeting\u00a0statement with a steaming pile of\u00a0if, ands\u00a0& buts. It will exude an abundance of caution and a dearth of clarity. Having judged that a 25 bps pinprick is warranted, the FOMC will then plant\u00a0itself\u00a0firmly in front of the\u00a0great flickering\u00a0dashboard in the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[10586,1799,5979,2120,11006,303,8364,305,4512,451],"class_list":["post-15190","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bubble-finance","tag-bubbles","tag-contracorner","tag-david-stockman","tag-december-16","tag-fed","tag-federal-open-market-committee","tag-federal-reserve","tag-fomc","tag-janet-yellen"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15190","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15190"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15190\/revisions"}],"predecessor-version":[{"id":15192,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15190\/revisions\/15192"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15190"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15190"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15190"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}