Dishonesty and Candor in Monetary Policy

In the July 26, 2013 edition of the Bank Credit Analyst,  editor Jim Grant notes that when Ben Bernanke was beginning the second round of “quantitative easing,”  he described it in February 2011 Congressional testimony as equivalent to an interest rate cut. In recent Congressional testimony explaining what might be (or might not be)   a forthcoming “taper” in “quantitative easing,” he suggested that it would not be equivalent to a rate hike.

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If I Were ‘Dictator,’ QE Would End Now, Fed’s Lacker Says

Every politburo has got at least one trouble maker. The Federal Open Markets Committee is no different, Jeff Lacker serves this roll to a limited extent.

In the attached interview Mr. Lacker says a number of interesting things, among them that economic expansion after 2007 is in his opinion a break with an historical trend line (which will continue).

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Addiction: Bank of Japan to pump $1.4 trillion into economy in unprecedented stimulus

Just one more hit. That will make everything better. Just…one…more…hit……….

Not only is the Bank of Japan going to buy huge amounts of government bonds, but it’s also going to buy stocks, ETFs, and real estate investment trusts.

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“This thing known as the “market” died some four years ago.”

ZH reports on Bank of America’s admission that “today’s stock market has lost some of its ability to reflect underlying economic trends.”

Well, no kidding. Even is saying officially that the markets are rigged and we investors had better just get used to it.

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