Bernanke: We Can Always Print Or We Can Always Talk About Stopping To Print, But We Are Scared Anyway.
Maybe We Can Stop One Day?
"Few more pieces of the Puzzle are getting into their place now. Currency wars will claim the US Dollar Reserve Status as its first collateral damage."
Economic reality has never been so desperately far away from the central planning wish list.
Sci-Fi Movie Script: "Federal Reserve - Keeping The Strong US Dollar Policy From 1913 - Established To Serve and Protect" GS, JPM, BAK, C, HBC
FOMC Minutes: This Is What It Sounds Like When Doves Cry, And When Others Start To See An Asset Bubble
"It appears (as we noted here) that the size of the balance sheet, difficulty of the exit, frothiness of markets, and not-totally-dismal labor headlines have even the doves a little more hawkish about the possibility of an exit at some point - though obviously the minutes are clear that the 'flow' can increase (as well as decrease) based on the data.
- FOMC MINUTES: MANY SAID MORE PROGRESS NEEDED BEFORE SLOWING QE
- FED'S BROAD PRINCIPLES ON EXIT `STILL VALID,' FOMC MINUTES SHOW
- SOME ON FOMC WILLING TO SLOW ASSET PURCHASES AS EARLY AS JUNE
- SOME SAID "CONDITIONS IN CERTAIN FINANCIAL MARKETS WERE BECOMING TOO BUOYANT"
Two things seem clear: 1) the Fed is explicitly forcing the market to hope for bad data to maintain gains as the gap between market and reality is now too large for a soft-landing; and 2) the Fed has explicitly admitted that it is the 'flow' not the 'stock' that matters - as we have been vociferous about for years. But what is worst, is that now that some at the FOMC are openly seeing asset bubbles, Bernanke is facing a mutiny on his hands!
The exit seems closer than many expected...
Pre: ES 1666.5, 10Y 2.01%, Gold $1363.50, DXY 84.28
The key section from the Minutes:"