US Federal Reserve

Back in mid-2009, we said that with the Fed and central banks nationalizing capital markets, macro and even micro data and newsflow will matter increasingly less and less, and the only thing that does matter is the Fed's weekly H.4.1 statement, showing the changes to the Fed's balance sheet. It also means that so-called "data dependency" is a farce (it is, and has always been "Dow dependency"), and that the impact of incremental newsflow will shrink with every passing week until virtually nobody pays attention (we have largely reached this state now).

Authored by Brandon Smith via Alt-Market.com,

In the aftermath of a surreal Janet Yellen press conference, in which the Fed chair admitted that Fed "no longer understands" the "mystery" that is inflation, we did our best to explain to Yellen that the reason why the Fed's search for inflation has been fruitless, is because for nearly a decade it has been looking in the wrong place: the "real economy" where the Fed's impact has been negligible, as opposed to "asset prices" where the Fed has unleashed near hyperinflation.

Sadly, we doubt the Fed will understand what the above chart means.

A few short years ago, it was considered tinfoil hat conspiracy theory to say that the goals of the Fed and their QE programs were to boost stock prices, real estate prices, and basically almost every other asset class. Then slowly, years later, the MSM and others began to realize that it was the truth. You even had the likes of former Fed Governors saying so, Richard Fischer, Thomas Hoenig, Charles Plosser, and Jeremy Stein.

Authored by 720Global's Michael Lebowitz, via RealInvestmentAdvice.com,

“There is no other agency of government which can overrule actions that we take.” 

– Alan Greenspan