{"id":47328,"date":"2019-07-19T11:33:04","date_gmt":"2019-07-19T16:33:04","guid":{"rendered":"https:\/\/olduvai.ca\/?p=47328"},"modified":"2019-07-19T11:33:06","modified_gmt":"2019-07-19T16:33:06","slug":"the-most-dangerous-game","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=47328","title":{"rendered":"The Most Dangerous Game"},"content":{"rendered":"\n

The Most Dangerous Game<\/a><\/h3>\n\n\n\n
\"\"<\/a><\/figure><\/div>\n\n\n\n

How can I not talk about the Fed? How can I not talk about the daily jawboning? It is all around us. Every. Single. Day.<\/p>\n\n\n\n

And it keeps working.<\/p>\n\n\n\n

I feel like I\u2019m being reduced to a loon conspiracy theorist documenting the very reality of it.  But I\u2019m not. From my perch I\u2019m doing a public service doing it, because the background motivation for why it is being done reveals a deeper and disturbing truth: They are scared, they are worried and they are desperate to keep the balls in the air.<\/p>\n\n\n\n

In my view it\u2019s disingenuous to not acknowledge the real impact central banks have on markets and assess the risk implications.<\/p>\n\n\n\n

Yesterday the Fed went full circus. It was stunning to watch and I suspect they made a couple of mistakes by revealing things they shouldn\u2019t have.<\/p>\n\n\n\n

Not a surprise Bullard wants to see cuts, but it was Clarida and Williams who dropped the bombs. Wait for bad data? Nah, just cut preemptively. A full abandonment of the \u2018data dependency\u2019 charade. To \u2018influence markets\u2019. Stated straight up for all to see. They are no longer even pretending.<\/p>\n\n\n\n

And a stunning admission from Williams: \u201cWhen you only have so much stimulus at your disposal, it pays to act quickly to lower rates at the first sign of economic distress.\u201d<\/p>\n\n\n\n

It pays to act when you have limited ammunition. A clear acknowledgement of what I\u2019ve been outlining: The Fed, by not being being able to normalize in this cycle, is scrapping at the bottom.<\/p>\n\n\n\n

So they want to intervene before things turn bad and hope this will prevent a recession. How? By blowing the asset bubble even higher.<\/p>\n\n\n\n

And it worked again yesterday. Stocks flew higher, especially in after hours.<\/p>\n\n\n\n

 \u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

The Most Dangerous Game How can I not talk about the Fed? How can I not talk about the daily jawboning? It is all around us. Every. Single. Day. And it keeps working. I feel like I\u2019m being reduced to a loon conspiracy theorist documenting the very reality of it.  But I\u2019m not. From my […]<\/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":[303,7542,23808],"class_list":["post-47328","post","type-post","status-publish","format-standard","hentry","category-economics","tag-fed","tag-northman-trader","tag-sven-henrich"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/47328","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=47328"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/47328\/revisions"}],"predecessor-version":[{"id":47329,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/47328\/revisions\/47329"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=47328"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=47328"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=47328"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}