Many
have wondered if the Fed is ignorant to the problems their policy
prescriptions cause, or if they've just resigned to walking society down
the path to destruction knowingly. It increasingly looks like the
latter. Indeed, the Fed may very well understand that its "lower for
longer" policy is leading the economy and global markets straight into
disaster. However, as the same time, the central bank - feeling trapped
after 10 years of unprecedented stimulus which if undone would result in
a historic crash - is backed into a corner and has no choice but to
accept this growing risk, as the world's punch drunk central bankers
continue to try at all costs to keep the bloated economic "expansion"
going.
Indeed, the Fed itself acknowledges this risk, because according to
the minutes of the FOMC policymaking meeting from March 19 and March 20.
"A few participants observed that the appropriate path for policy,
insofar as it implied lower interest rates for longer periods of time, could lead to greater financial stability risks" the minutes read.
Chairman Powell himself understands very well the risks that he is taking: he has previously pointed out publicly that the last two "expansions" ended in the dot com bubble burst and then the housing bubble burst, according to Bloomberg.
But it is the Fed's willingness to continue down this path, despite
seeing the dangers, that is disturbing. It’s a classic example of
putting a Band-Aid on the problem now at the cost of the future. Holding
rates down while pursuing maximum employment and 2% inflation is a
policy that has proven to lead to disaster.
Tobias Adrian, a senior International Monetary Fund official said: "Easy financial conditions today are good news for downside risks in the short-term but they’re bad news in the medium term."
元IMF職員Tobias Adrianはこう言った:「現在の緩和的金融条件は短期的な相場下落対策には望ましいが、中期的には悪い結末を招く。」
The Fed's dilemma - obvious to everyone but them - is that the neutral rate of interest (i.e. "r star") is simply too low - something we discussed back in 2015 -
so low that, in fact, that instead of keeping the economy at an
equilibrium, it simply encourages more risky behavior by investors.
FEDはジレンマに陥っているーー彼ら以外の誰にも明らかなことだーー中立金利(r star )が低すぎるーーZeroHedgeが2015年に議論したことだがーーこれがここまで低いと経済を均衡維持するだけではなく、投資家がよりリスクを取りやすくなっている。
The neutral rate has continued to fall as a result of rising debt, an
aging population and slower productivity growth. Bloomberg has been using a term
called "FAST-star" instead of "R-star" to denote a rate level that
ensures financial stability. A setting above it stifles risk-taking
while the setting below it encourages excess. The Fed's neutral rate -
"R-star" - falls well below this suggested rate.
The dovish shift by the Fed at the end of the year last year helped
prompt a massive stock market rally, even after raising rates from 2.25%
to 2.5%. So far the S&P 500 index is up 16% in 2019. However, the
one beating the drum the most in favor of dovish policy – President
Donald Trump – continues to complain that rate increases have held back the economy. 昨年暮れのFEDのハト派姿勢転換は巨額の株式ラリーを引き起こした、たとえ金利を2.25%から2.5%に引き上げた後でもラリーとなった。2019年にはS&P500は16%も上昇した。しかしながら、ハト派政策転換を鐘太鼓でもてはやすのはーー他ならぬDonald Trump大統領だーー彼はいまでも金利引き上げが景気後退を引き起こすと愚痴を言う。
Yet some policymakers at last month's FOMC meeting believe that risks
can be offset by, drumroll, "counter-cyclical macro prudential policy
tools, combined with regulatory and supervisory measures." This is the
same tool and measures that failed to spot the last two financial crises
until both were well underway.
Additionally, there is another problem
to this thinking: even in a best case scenario, the Fed has a limited
set of tools. This was even acknowledged by Fed Vice Chairman for
Supervision Randal Quarles during a March 29 speech.
Meanwhile, Powell has said that he doesn't see a high risk of
financial instability at this point, a comment that may soon be proven
to be as accurate as Ben Bernanke's assertion that "subprime was
contained" prior to the housing crisis. Powell instead argues that the
Fed tries to keep the system safe by requiring large banks to hold
excess capital and undergo stress tests.
And at some points, Fed presidents have sounded open to the idea of
using higher interest rates to cull the markets a little bit. For
instance, New York Fed President John Williams said in October "that the
central bank’s rate increases would help reduce risk-taking in
financial markets, though he added that was not their principal
purpose."
かつてはときに応じて、FED議長によっては、市場の行き過ぎを抑制するために高金利とすると公言していた。たとえば、New York FED議長 John Williamsの10月の発言はこうだ、「中央銀行が金利を引き上げることで金融市場での過剰なリスクテイクを抑圧するだろう」、ただしそれが一義的な目的ではないということも付け加えた。
But that type of talk has faded since then.
しかしそれ以降こういう発言は消え失せた。
Jonathan Wright, a professor at Johns Hopkins University and a former
Fed economist said: "There doesn’t seem to be the same idea of having
tighter monetary policy so as to lessen the risk of asset bubbles
developing."
In April former Treasury Secretary Lawrence Summers concluded: "There
are reasons for fearing the economic consequences of very low
rates. These include a greater propensity to asset bubbles and
incentives to substantially increase leverage."
Ultimately, the Fed indeed has no choice: either it inflates away the
debt - which is where MMT will come in very handy in a few years as
helicopter money is unleashed under the guise of "QE for the people" -
or it's game over for the status quo anyway. If it means creating the
biggest asset bubble in the process, so be it.
Amazonで買物をしてContrarianJを応援しよう この長文記事をRay Dalioが発表し、ゴールドは$1400から$1420へと急騰しました。GLD保持高に変化はないのでたぶん先物ポジションが進んでいます。 Ray Dalio Warns A "New Paradigm" Is Coming: "Buy Gold, Sell Stocks" by Tyler Durden Wed, 07/17/2019 - 14:44 Authored by Ray Dalio via LinkedIn, One of my investment principles is: 私の投資原則はこういうものだ: Identify the paradigm you’re in, examine if and how it is unsustainable, and visualize how the paradigm shift will transpire when that which is unsustainable stops. 現在のパラダイムを認識し、それがどの程度持続可能かどうか判断する、そしてパラダイムシフトがどのように起きるか、そしてその着地点を思い描く。 Over my roughly 50 years of being a global macro investor, I have observed there to be relatively long of periods (about 10 years) in which the markets and market relationships operate in a certain way (which I call “paradig...
米国はよく理解してませんが、日本の場合では量的緩和で日銀が国債買い上げした資金は日銀当座預金にそのままです、市中には流れていません。でもNHKのニュース等では「ジャブジャブ」という表現をアナウンサーが使い、さらに丁寧に水道の蛇口からお金が吐き出される画像まで示してくれます。これって心理効果が大きいですよね。量的緩和とは何かを7時のニュースや新聞でこれ以上丁寧に解説するのはそう簡単ではありません。一般の人も株式をやっている人も「イメージ」で捉える以上はそう簡単にできません。多くの人は量的緩和とはなにか、を理解していないと私は想像しています。 ただし、国債を買い上げるので長期金利が低下し住宅ローン金利等が下がったのは確実な効果です。一方で長短金利差が少なくなると銀行のビジネスモデルが成り立たなくなりますが。 This Is The One Chart Every Trader Should Have "Taped To Their Screen" by Tyler Durden Sat, 01/19/2019 - 18:55 After a year of tapering, the Fed’s balance sheet finally captured the market’s attention during the last three months of 2018. 一年間のテーパリング後、FEDバランスシートがとうとう市場の注目をあびることになった、2018年の最後の3ヶ月だ。 By the start of the fourth quarter, the Fed had finished raising the caps on monthly roll-off of its balance sheet to the full $50bn per month (peaking at $30bn USTs, $20bn MBS...
Amazonで買物をしてContrarianJを応援しよう Silver Outperforming Gold 2 Adam Hamilton July 26, 2019 3232 Words Silver has blasted higher in the last couple weeks, far outperforming gold. This is certainly noteworthy, as silver has stunk up the precious-metals joint for years. This deeply-out-of-favor metal may be embarking on a sea-change sentiment shift, finally returning to amplifying gold’s upside. Silver is not only radically undervalued relative to gold, but investors are aggressively buying. Silver’s upside potential is massive. ここ2週シルバーは急騰した、ゴールドを遥かに凌ぐものだ。これは注目すべきことだ、もう何年もシルバーはひどいものだった。この極端に嫌われた金属が大きく心理を買えている、とうとうゴールド上昇を増幅するに至った。シルバーは対ゴールドで極端に過小評価されているだけでなく、投資家は積極的に買い進んでいる。シルバーの潜在上昇力は巨大なものだ。 Silver’s performance in recent years has been brutally bad, repelling all but the most fanatical contrarians. Historically silver prices have been mostly ...
日本と同じくPOMOになる公算が大きいとは思いますが、どうでしょうね。 米国大統領選挙の勝者と11月投票日前数ヶ月の株価の動向には9割以上の相関があります。はっきり言えば、公約とか主義主張には無関係です :) 。この時期株価を維持・上昇すると現職政党勝利、株価が下落すると挑戦政党勝利となります。熱心な民主党員活動家である前FED議長イエレンは頻繁に口先介入をしましたが、量的緩和再開まで踏み込めず、4年前の秋に株価が下落し、トランプ勝利となりました。株価と大統領選挙の相関をトランプは熟知しています、4年前には株価が下落するようしきりと口先介入していました。今年は11月まで株価を維持できるかどうか?どうでしょう。 Mark Your Calendar: Next Week The Fed's Liquidity Drain Begins by Tyler Durden Fri, 01/03/2020 - 14:54 What goes up, must come down, at least in theory. 上昇があれば、その後に下落が伴う、少なくとも理論上ではそうだ。 Ever since the start of October when the Fed launched QE4 - or as some still call it "Not QE" - in response to the Sept repo crisis, figuring out the market has been pretty simple: if the Fed's balance sheet goes up so does the S&P500, and vice versa. 10月にFEDがQE4を始めて以来ーー「Not QE」という人もいるがーー9月のレポ危機に対応したものだが、相場はとても単純になった:FEDがバランス...