The Federal Reserve’s overnight rates do funny things which disturbs Bernanke who wants a fake money regime that reflects little to no inflation, supposedly. Like, get real, dude! Anyway, time to view the news through my little prism where I keep in mind the new FOREX accumulation game run by first, Japan, and now, most anyone running a huge trade surplus with the US. The Federal Reserve has all sorts of models for things but they neglect to look at harsh reality and see that the old assumptions are cruelly out of whack with the New World Order which is run not by us but by CHINA. And Russia.
From the Denninger Market Ticker:
As usual, I went off to the Fed to see what was up. Here is a screenshot which I altered to show where the 15% deal was and also, in yellow, the times when the ‘bids’ were over the Fed’s fake rate they set. Um, notice that this is nearly always, by the way, bid up beyond the Fed’s line in the sand.