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Monday, September 26, 2011
The Trouble with Tribbles
The trouble with Tribbles was there just were too many of those little parasitic suckers.
To see what Wikipedia says about Tribbles:
The Trouble with Tribbles; the full episode:
Now, ironically …it is not just Tribble-trouble …those cute pesky space spores of the Star Trek days of old …it is the number of T-notes just hanging around on the Treasuries short handle.
Now in TWIST they are set to be turning over like Aunt Jemima Pancakes at a pancake feed.
Yes, that is right, as in regard to Ben Bernanke’s monetary policy of “TWIST” …today, the Fed has much the same trouble in that there’s just too many of those little suckers just to simply transport them all off of the Starship Enterprise in heroic efforts to send them out into outer space.
WoW! Talk about Fed-speak for bending the space-time continuum!!!
Actually that would be nice enough if, that were to be the only thing these little suckers were to bend. But, I see Ben’s Twist & Shout latest Fed policy will likely result in helping to invert the yield curve.
Ghee whiz Wally! More and more these days, the more that the Fed tries to help Congress …the more it seems that its policies stand to hurt while less is being sacrificed going into 2012.
One thing for sure is that in all the Fed’s attempts to help Congress avoid pain …the pain it feared is the pain that will sorely come …especially invited in the doors of Congress without an ounce or a shred of sensible coordinated fiscal policy.
This sure seems like the makings of inevitability to me.
In spite of all the Fed’s accommodative efforts; one thing stands out like a sore thumb. The Federal Reserve Chairman, Ben Bernanke has not enjoyed very much cooperation from Congress in the form of fiscal restraint …that being also as it has been …in the wake of the Fed’s easy-money window …gone sour now.
Have you tried to get a loan lately? No wonder the public is trampling on sour grapes …not knowing who …or what to blame.
Seems like a house divided recipe whose story reads like Congress has been rowing with one oar …while the President has thrown stones and pointed fingers.
Sadly, all this has done is cause America to retrace a circle.
It certainly has kept Treasury Secretary Timothy Geithner busy stoking the fires of Congress …loading and stuffing the Congressional coffers with plenty deficit-fueled money from his endless sales of short term bills and notes.
That is why …the U.S. …like the E.U. are both in much the same shape …in an unredeemable mess.
Thus, without their cooperation …is it any wonder why the Fed chief Ben Bernanke wouldn’t squander the opportunity last week to unleash some of his harshest, most honest words in his summary FOMC meeting’s conclusion last week.
If you are still not tracking with me yet …let me spell this out.
If, in TWIST …there are so many Tribbles that they represent a market-glut, the sheer ginormity of them (in TWIST) with respect to a comparable lack of demand will surely cause short term rates to rise …and do so appreciably in a hurry.
Couple this with the growing enormity of competing (coordinated???) sovereigns’ efforts …and there may not be enough global capital capacity in the form of aggregate demand (or otherwise) to capitalize both continent’s (NEEDY TWISTED) global debt issues.
And that is the trouble with Tribbles.
P. S.: Speaking about gluts and the affects that gluts have on markets; what other Tribble-like matter may be troubling the Fed these days?
Could that be the sheer ginormity of its grand ballance sheet? Go figure!
The mere potential impact upon the price of housing such an overhang would represent if and when the Fed were to release and unwind its assets.
Brother!!! Wouldn’t that put a nice downward pressure on home prices?
Well, thank my lucky stars; because there is thankfully …still no place like home in the good ole U.S. of A.!
Now if unity leadership could get us all to agree for a change, we might enjoy our hope!