Old Faithful Is In Yellowstone, Not the Grand Tetons
Moderator Note (Andy): This was originally written by Yra Harris on 8/27/2012 on his blog.
For the record, the Jackson Hole meeting actually takes place in the lodge at Grand Teton National Park. Again, the Ben Bernanke of QE fame WILL NOT OFFER UP ANOTHER ROUND OF QE AT THE JACKSON HOLE SYMPOSIUM. To do so would let the scallywags that OCCUPY WASHINGTON TO FINISH ANOTHER YEAR IN OFFICE WITH A GOLD MEDAL FOR IRRESPONSIBILITY. Chairman Bernanke, the WALL STREET MACHINE is hoping that you provide another dose of LIQUIDITY. Do not perform as OLD FAITHFUL and deliver. Force the hand of ELECTED OFFICIALS to actually make a serious attempt to deal with their constitutionally prescribed responsibility, FISCAL POLICY.
If Bernanke does not DELIVER THE LIQUIDITY DOSE, the EQUITY MARKET WILL SELL OFF AS WILL ALL PERCEIVED RISK ASSETS. THE PRECIOUS METALS WILL BE SOLD AS LAST WEEK’S RALLY WILL HAVE ITS SUPPORT LEVELS TESTED. MORE IMPORTANTLY FOR THE MARKETS WILL BE THE CLOSES FOR REMEMBER THAT BERNANKE IS THE FIRST SPEAKER ON FRIDAY MORNING AND HE WILL BE FOLLOWED BY MICHAEL WOODFORD TWO HOURS LATER. ALSO, MARIO DRAGHI WILL SPEAK SATURDAY AND HIS POLICY SPEECH ON THE GLOBAL PERSPECTIVE MAY BE MORE ABOUT ECB FIREPOWER THEN ANYTHING THE FED’S OLD FAITHFUL DELIVERS. AGAIN, THE CLOSES ON FRIDAY GOING INTO A LONG LABOR DAY WEEKEND WILL BE MUCH MORE IMPORTANT THAN THE INITIAL REACTION TO CHAIRMAN BERNANKE’S QE OR NOT QE for Professor Woodford’s “ACCOMMODATION AT THE ZERO BOUND” may provide the outlook for all major CENTRAL BANKS IN A BALANCE SHEET RECESSION.
LONDON was closed today and the markets were very quiet with little activity. Interest rates showed little movement and EQUITIES closed unchanged. I will take a minute to take the editors of Bloomberg to task for a piece they published last Thursday: “TIME FOR GERMANY’S REVERED BUNDESBANK TO PUT UP OR SHUT UP.” This editorial is devoid of any sense of political economy and is only echoing the thoughts of the EUROPEAN ELITE WHO ARE SO VESTED IN THE PRESENT POLITICAL AND ECONOMIC SYSTEM. The editors claim that the ECB has no choice but to bail out the entire European economy and the Bundesbank is only one vote and NO MORE.The editorial maintains that:
- Germany doesn’t have a veto
- Jens Weidmann is to represent Europe and not Germany, even though he is the President of the Bundesbank,”Weidmann must make clear that he is more concerned about Europe then Germany. That goes with the job. And, if need be, the rest of the council must be willing to overrule him.”
The Bloomberg team fails to mention that it is the GERMAN TAXPAYERS footing the bill and yet they have never been directly asked about their desire for being the PAYMASTER OF EUROPE. Otmar Issing threw down the gauntlet when he raised the issue “OF NO TAXATION WITHOUT REPRESENTATION.” There is so much to criticize the Bloomberg editorial board for but as usual a naïve view of the political economy of the EU is number one. If the Germans are forced into a situation where they will be transferring their wealth to support the profligate, the German politicians will push the “POLITICAL NUCLEAR OPTION” and call a referendum. The ramblings of a cloistered media elite have no basis in reality. Sycophants are the best of LENIN’S USEFUL IDIOTS.
