{"id":7192,"date":"2015-04-10T05:43:44","date_gmt":"2015-04-10T10:43:44","guid":{"rendered":"http:\/\/olduvai.ca\/?p=7192"},"modified":"2015-04-10T05:43:44","modified_gmt":"2015-04-10T10:43:44","slug":"keep-pushing-until-something-really-big-breaks","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=7192","title":{"rendered":"Keep Pushing Until Something Really BIG Breaks?"},"content":{"rendered":"<h3 class=\"entry-title\"><a href=\"http:\/\/wolfstreet.com\/2015\/04\/09\/fed-clueless-how-unwind-absurd-monetary-policies-other-central-banks-adding-to-it\/\" target=\"_blank\">Keep Pushing Until Something Really BIG Breaks?<\/a><\/h3>\n<p>The minutes of the FOMC\u2019s March meeting make clear just how hard it is for the Fed to even think about the\u00a0<em>possibility<\/em>\u00a0of unwinding what they\u2019ve wrought. After six-plus years of interest-rate repression, absurdity has become the established norm. Now they can\u2019t even figure out\u00a0<em>how<\/em>\u00a0to get out of it without bringing down the whole construct.<\/p>\n<p>They handed the fruits of their monetary policies to folks who bought assets with them. Assets values have skyrocketed, yields have plunged, and risks have disappeared from the calculus. You can still get run over by a car, but you can\u2019t lose money in stocks or junk bonds. That\u2019s the established norm.<\/p>\n<p>This stream of money created\u00a0<em>asset price inflation<\/em>\u00a0and funded the fracking boom, the tech bubble, and a million other things that produced a lot of supply. But demand remained lackluster because they didn\u2019t hand this moolah to the folks who\u2019d spend it on gadgets or food or gasoline, the folks who\u2019d actually create demand. The economy languished, and\u00a0<em>consumer price inflation<\/em>, though bad enough for consumers, remained mostly below the money printers\u2019 lofty goals.<\/p>\n<p>Now the Fed is trying to figure out\u00a0<em>how<\/em>\u00a0to\u00a0unscramble the omelet.\u00a0Meanwhile the ECB and other central banks are adding to it, accomplishing an absurd feat: even the crappiest sovereign bonds \u2013 except those of Greece \u2013 are soaring, and yields are plunging, many of them into the negative.<\/p>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Keep Pushing Until Something Really BIG Breaks? The minutes of the FOMC\u2019s March meeting make clear just how hard it is for the Fed to even think about the\u00a0possibility\u00a0of unwinding what they\u2019ve wrought. After six-plus years of interest-rate repression, absurdity has become the established norm. Now they can\u2019t even figure out\u00a0how\u00a0to get out of it [&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":[124,233,282,303,305,309,534,536,3731],"class_list":["post-7192","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-ecb","tag-european-central-bank","tag-fed","tag-federal-reserve","tag-fiat-currency","tag-monetary-policy","tag-money","tag-money-creation"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7192","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=7192"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7192\/revisions"}],"predecessor-version":[{"id":7193,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7192\/revisions\/7193"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7192"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7192"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7192"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}