Super-insider, and former Plunge Protection Team member, Pippa Malmgren is out with a report on the recent Jackson Hole conference arranged by the Kansas City Fed.
Her take:
The Federal Reserve doesn't trust the markets to set prices---She is, of course, mostly referring to interest rates here.
Tapering is not about draining money from the system, but about spiking the punch bowl at a slower pace.----Though actual money supply growth, as I report in the EPJ Daily Alert, is slowing very rapidly.
She is warning about accelerating price inflation, especially in Third World countries.
Below is her full report.
(ht Levan Shanidze)
It really amazes me that Pippa can talk about the Fed's lack of faith in markets/free market pricing, admitting that essentially it's QE forever, managed based on their definition of "inflation"...and yet remain bullish on the American economy.
ReplyDeleteIt's also interesting to me that her assessment is partially based on the increased risk faced by corps overseas by this purposeful destabilization in 3rd world countries.
It's like she ignore the fundamentals here in the process....heavy tax burdens, regulations(Obamacare!), municipal defaults, etc.
I can tell you that I've been hearing now of this "return" of manufacturing here for some time...and being in an industry that sees said activity on all levels I'm doubtful of that claim.