{"id":50585,"date":"2020-01-16T10:09:02","date_gmt":"2020-01-16T15:09:02","guid":{"rendered":"https:\/\/olduvai.ca\/?p=50585"},"modified":"2020-01-16T10:09:04","modified_gmt":"2020-01-16T15:09:04","slug":"the-fed-just-let-the-cat-out-of-the-bag-admits-being-forced-to-fuel-asset-bubble","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=50585","title":{"rendered":"The Fed &#8220;Just Let The Cat Out Of The Bag&#8221;, Admits Being Forced To Fuel Asset Bubble"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.zerohedge.com\/markets\/fed-just-let-cat-out-bag-admits-being-forced-fuel-asset-bubble\">The Fed &#8220;Just Let The Cat Out Of The Bag&#8221;, Admits Being Forced To Fuel Asset Bubble<\/a><\/h3>\n\n\n\n<p>Well the cat\u2019s out of the bag&#8230;<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/images%20%281%29_8.jpg\" alt=\"\"\/><\/figure>\n\n\n\n<p><a href=\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/images%20%281%29_8.jpg?itok=gvPc-owd\"><\/a><strong>The worst kept secret in the financial world is now not only accepted orthodoxy, but finally being discussed openly by, at least some, authorities.<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/bfmA093.jpg\" alt=\"\"\/><\/figure>\n\n\n\n<p><a href=\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/bfmA093.jpg?itok=j3ireLXq\"><\/a>Central bank policies are directly driving asset prices and the bubbles therein. It\u2019s what they do. It has been so stunningly obvious that, at this point, it\u00a0<strong>makes a mockery of things to deny it as an ongoing, and essential, part of how their strategy is implemented<\/strong>. Oddly enough, however, it\u2019s a revelation that is, apparently, coming late to many people with a lot of savings and nothing to show for it.\u00a0<strong>And it is an undeniable factor in this January\u2019s price action.<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/bfm5AAC.jpg\" alt=\"\"\/><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Alan Greenspan knew it<\/strong>&nbsp;to be the case.<\/li><li><strong>Ben Bernanke had no problem<\/strong>&nbsp;with it. His strategy required it.<\/li><li><strong>Jerome Powell,<\/strong>&nbsp;was probably initially not enamored about it but<strong>&nbsp;saw no way around it.<\/strong>&nbsp;It fell on ardent loyalists to take his insistence that it was \u201cnot QE\u201d with any seriousness. Otherwise, they would have had to&nbsp;admit&nbsp;to knowing little about financial markets.<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/2020-01-16_5-39-26.jpg\" alt=\"\"\/><\/figure>\n\n\n\n<p><a href=\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/2020-01-16_5-39-26.jpg?itok=6a_b8NhI\"><\/a><strong>In some ways it was refreshing that\u00a0<a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2020-01-15\/fed-fuels-rise-in-risk-assets-with-balance-sheet-kaplan-says?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=newsletter_axiosmarkets&amp;stream=business\">Dallas Fed President Robert Kaplan openly talked about it in an\u00a0interview<\/a>\u00a0Wednesday<\/strong>. Although he did couch it in terms that implied it was a matter of some concern to him. But, of course, he went on to say, \u201cwe\u2019ve done what what we need to do up until now.\u201d<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\u201cMy own view is it\u2019s having some effect on risk assets,\u201d Kaplan said.<\/p><p><strong>\u201cIt\u2019s a derivative of QE when we buy bills and we inject more liquidity; it affects risk assets. This is why I say growth in the balance sheet is not free. There is a cost to it.\u201d<\/strong><\/p><\/blockquote>\n\n\n\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Fed &#8220;Just Let The Cat Out Of The Bag&#8221;, Admits Being Forced To Fuel Asset Bubble Well the cat\u2019s out of the bag&#8230; The worst kept secret in the financial world is now not only accepted orthodoxy, but finally being discussed openly by, at least some, authorities. Central bank policies are directly driving asset [&hellip;]<\/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":[83,303,534,7006,3650],"class_list":["post-50585","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bloomberg","tag-fed","tag-monetary-policy","tag-richard-breslow","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/50585","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=50585"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/50585\/revisions"}],"predecessor-version":[{"id":50586,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/50585\/revisions\/50586"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=50585"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=50585"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=50585"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}