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  • Fed's Bullard: We've made substantial progress in US labor markets

    From cnbc.com

    There's been "substantial progress" in the U.S. labor market, St. Louis Fed President James Bullard said on CNBC's "Squawk Box" on Monday. But inflation is low, he added—saying, "What's the hurry" to taper the Federal Reserve's massive bond-buying program. He also said there's "room on the balance sheet" because the size, approaching $4 trillion, is not the highest among major nations relative to gross domestic product. The more hawkish Philadelphia Fed President Charles Plosser, appearing on the show Friday, argued that specific dollar limits should be put on the size of the central bank balance sheet, which is ... (full story)

  •  Guest
  • | IP XXX.X.10.147
are trying to say that taper is in the Pipeline?
Another 1 and half month data to come and 2 nfp results will be published. These will be vital releases....
" He also said there's "room on the balance sheet" because the size, approaching $4 trillion, is not the highest among major nations ...." That is the most important thing. Why is it true? Because all currencies and economies are completely intertwined and are more relative to each other than stand alone independent.
4 trillion balance sheet is OK? It's the highest but not vis a vis other nations' GDP? Substantial progress in Labour markets, so the 126K NFP print predicted for Friday is good, whilst an average of 360K unemployment claims a week is good as U6 sits at 13.6 seasonally adjusted? Wow, step down off the unicorn and put the koolaid to one side.

No taper next year, March/April date which was pencilled in just put back as $5 trn balance sheet deemed ok for a central bank, hey, wtf, like poverty, it's all relative huh? Oh the irony coming so close to many of the 50 million Americans on food stamps losing their entitlement.
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
Well, said, Spreadbetter!

These guys are like royalty. They live in an ivory tower, detached from the lives of the average person.

"We've made substantial progress is shoring up the banks reserves and dropping the participation rate!" is what he should've said! ;^D

Hard to put a good spin on a $4 trillion balance sheet, all of which went to both foreign and U.S. banks.

But if you look very, very serious, and pretend you're in firm control of the economy (even though you were responsible for every major crash since the FED was created ;^), you can put a good face on it.

Well, the rich are loving it! He, he....

As far as trading goes, the bigger they blow this bubble up, the bigger the crash will be. If they could get it up to the size of the dotcom bubble, maybe we could ride it all the way down. ;^D

People are smarter now, though, after the last two crashes. The hedge funds would be all over it, and it would drop like a rock! ;^D
The mind thinks, the heart knows...
Quoting Spreadbetter
4 trillion balance sheet is OK? It's the highest but not vis a vis other nations' GDP? Substantial progress in Labour markets, so the 126K NFP print predicted for Friday is good, whilst an average of 360K unemployment claims a week is good as U6 sits at 13.6 seasonally adjusted? Wow, step down off the unicorn and put the koolaid to one side.

No taper next year, March/April date which was pencilled in just put back as $5 trn balance sheet deemed ok for a central bank, hey, wtf, like poverty, it's all relative huh? Oh the irony coming so close...
Very well said......
I agree with jaygee.

If every major developed country wasn't also QEing like mad, it would really rock the boat. Any country that didn't participate would have a stronger currency.

They're basically all in it together. By agreement, either openly or tacitly. They and their member banks are the new masters of the universe. In control of all the major economies with no political interference.

They won't start tapering until they have to. Why should they? It's just like a tax going into the banks' pockets! Soon to be a $5 trillion tax?

And they won't have to until either inflation gets too high, or the employment and manufacturing no.s get too good not to take action. (not the real numbers, of course, but the ones they release. ;^)

A banker's dream, really! "All that money, Spongebob!" as Mr. Crabs would say! ;^D
The mind thinks, the heart knows...
Meanwhile, back at the ranch, China is quietly increasing its gold reserves at an ever increasing rate. 2,200 tons this year...mmmmmmh....

Perhaps, they're taking no chances that all the paper money flooding the world is going to drop in value. Turn it into gold. Much safer bet.

Was his name Bullard, or Bollocks? Can't remember. I'll bet he stood in front of the mirror practicing that serious look for hours at a time....;^)
The mind thinks, the heart knows...
Well I guess this is the new normal when 7% unemployment is substantial progress.

It would be nice if they ever were able to discover that they didn't make substantial progress. It was the people who made the "substantial progress" on unemployment.

It should be noted that two prominent economist gave two separate reports at the Jackson Hole meeting showing how QE (whatever) actually is slowing economic growth in the country. The longer the Feds taper the longer it will take to get out of the "new normal".

It gets even worse, couple the Feds tapering with the excessive amount of government regulation and presto we have an economy that is very sick and will remain so until the experts realize the "cure" is worse than the disease.
  •  Guest
  • | IP XX.XXX.144.86
"What's the hurry" to taper the Federal Reserve's massive bond-buying program.?"

No Hurry if you are a Senate Democrat and Obama who want the Fed to continue the Fed's "Money Printing" forever"
So they can say that the economy is doing better, when in fact it is not..
That's why they want Janet Yllen to be the next Fed chairman
Well, said, Puritan.
The mind thinks, the heart knows...
China's big play is when the RMB is fully floated/convertible, I think then we'll see some 'funky ness' with their treasury debt muhahahahaha, or whatever the Chinese equivalent is.

Quoting Ever E. Man
Meanwhile, back at the ranch, China is quietly increasing its gold reserves at an ever increasing rate. 2,200 tons this year...mmmmmmh....

Perhaps, they're taking no chances that all the paper money flooding the world is going to drop in value. Turn it into gold. Much safer bet.

Was his name Bullard, or Bollocks? Can't remember. I'll bet he stood in front of the mirror practicing that serious look for hours at a time....;^)
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
But 'they' know that using U3 as the unemployment number is a marketing and public relations number and exercise, they don't want to frighten the sheeple; U4 is 7.7, U5 is 8.6 and U6 is the real number at 13.6.

Quoting Puritan
Well I guess this is the new normal when 7% unemployment is substantial progress.

It would be nice if they ever were able to discover that they didn't make substantial progress. It was the people who made the \"substantial progress\" on unemployment.

It should be noted that two prominent economist gave two separate reports at the Jackson Hole meeting showing how QE (whatever) actually is slowing economic growth in the country. The longer the Feds taper the longer it will take to get out of the \"new normal\".

It gets even worse, couple...
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
http://theeconomiccollapseblog.com/archives/12-shocking-clues-about-what-america-will-look-like-when-the-next-great-economic-crisis-strikes
Yes, you are correct in pointing out the REAL unemployment numbers, spreadbetter. No body really spends much time discussing the labour participation rate which has been dropping. The numbers are skewed. Nonetheless, it merely underscores my observation that we don't have "substantial progress" in the labour market.

John Galt said to get out of our way and that is my thinking exactly. Until we are left alone to do the business of getting back to business it isn't going to change. All the Feds and other government intervention will just prolong the agony. It happened in the 1930's (see Greenspan and Kittleberger).

With regards to the Fed's QE, Einstein once defined insanity as doing the same thing over again and again and expect different results. Need I say more???
You look at the favelas in Rio, currently undergoing a sinister lick of paint with the World Cup and Olympics arriving, and I wonder where the USA will continue to hide its underclass as so many millions drop off the grid and out of the system for their lifetime.

The USA reached a new record high of 90.6 million adults not in the labour market last month, an increase of circa 500,000 in one month, that's an incredible stat that the MSM in the USA deliberately avoid discussing but its one of the many ticking time bombs the USA admin/govt refuse to face up to and the unfunded liabilities of that group are irrecoverable.

In January 2009, when President Barack Obama took office, there were 80,507,000 Americans not in the labor force. Thus, the number of Americans not in the labor force has increased by 10,102,000 during Obama's presidency.

The labor force participation rate, which is the percentage of the non-institutionalized population 16 years or older who either have a job or actively sought one in the last four weeks, was 63.2 percent in September. That was unchanged from August. That's a third of USA adults not being economically active. That's a huge number and one that won't get better anytime soon.


Quoting Puritan
Yes, you are correct in pointing out the REAL unemployment numbers, spreadbetter. No body really spends much time discussing the labour participation rate which has been dropping. The numbers are skewed. Nonetheless, it merely underscores my observation that we don't have \"substantial progress\" in the labour market.

John Galt said to get out of our way and that is my thinking exactly. Until we are left alone to do the business of getting back to business it isn't going to change. All the Feds and other government intervention will just prolong...
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
  •  Guest
  • | IP XX.XXX.219.206
Quoting Spreadbetter
You look at the favelas in Rio, currently undergoing a sinister lick of paint with the World Cup and Olympics arriving, and I wonder where the USA will continue to hide its underclass as so many millions drop off the grid and out of the system for their lifetime.

The USA reached a new record high of 90.6 million adults not in the labour market last month, an increase of circa 500,000 in one month, that's an incredible stat that the MSM in the USA deliberately avoid discussing but its one of the many ticking time bombs the USA admin/govt refuse...
Please attach link where you got those numbers from (would just like to look at your source)...thanks
Ticking time bombs is a good way to put it. Maybe this is why HHS has purchase over 1 bil rounds of ammunition. In my view we are beginning to reap what we have sowed. For the last hundred years or so we have been living off of the Puritan capital that was the foundation of this country. But that capital is almost drained. The Puritan values of hard work and frugality have all but disappeared. Reliance on God and one's self has been replaced by reliance on government which is rapidly running out of money. The Puritan work ethic has been replaced by the government entertainment ethos Even though I am not "old" I grew up in an America where we worked even at a fairly young age. I had my first job working for a contractor when I was fourteen, had paper routes, worked on farms all before I turned eighteen.

America was very different then, there was a moral ethos that included hard work, loyalty to God, one's family, one's church and to the nation. Almost, if not all, of these values have been long forgotten. Marx once said that work was a means to an end, that end in America is entertainment. To the Puritan's work was an end in itself.

Unless we see a major value shift America is doomed to a slow decline and like so many empires a topic for the history books, or probably more like history channel.
  •  Guest
  • | IP XX.XXX.219.206
I see 185k jobs added monthly on average over the last year.. I see a down tick in the unemployment to 7.2...both numbers which Fed uses as metrics to determine labor market conditions...Not to mention this growth (slow or not), is outpacing the competition (where else is there even growth?)

Zone?
China?

I laugh at that all those, a myriad of problems encompass those regions, none of which have come to light...

http://www.tradingeconomics.com/united-states/non-farm-payrolls

^This is my source...

Very curious to what Spread's source is, and I am not trying to start a bickering war, I want to see the source of Spread's information...
TAPERING DILEMMA
Since last couple of Months ,the markets have been focusing on one main point ---TAPERING. Have we, the traders , ever thought, even for a while , that whether the BOND BUYING , to the tune of USD 85 Bn matter that much?? And especially , keeping in view the Depth , Dynamics and Diverse economy OF USA. This country alone contributes about 25 percent of GDP, despite having a Population of around 5 percent against the world population. Having said this , whether the STIMULUS to the above said tune matter that much to move the MARKETS to the extent we are witnessing these days? It seems that we, the traders are not looking into the Real MOVERS and SHAKERS, in play. The moment we reach at correct factors , Mr Markets changes it s position . And once again we start tracing/searching the Real Movers /SHAKER. And this goes on ? Is ,nt it so? Mr MARKET is smarter than us.
ASAD
OH----------
I forgot to add .....The DXY is starting for a DOWN move . At least in short term ----this seems to be imminent .
ASAD
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  • | IP XXX.XXX.107.3
Any evidence of asset bubbles could sway the Fed to change course, he said. "Tech bubble was blindingly obvious. And the housing bubble also [was] blindingly obvious," Bullard said. "The question is how should the Fed react to those very huge bubbles? I don't see anything of that magnitude going on right now."

Glad to see the FED is on top of this one like the internet and housing bubbles that were so "blindingly obvious" and well managed as a result.
Good points concerning the NFP numbers evolution. Last year George Soros predicted US unemployment % would be lower, not necessarily because the economy would be in recovery mode, but simply due to lower participation rate where a great number of unemployed people see the end of their benefits and are erased from the system.
"To hold, you must first open your hand. Let go." - Lao Tzu
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  • Posted: Nov 4, 2013 7:18am
  • Submitted by:
     Newsstand
    Category: Low Impact Breaking News
    Comments: 23  /  Views: 22,424