Pimco McCully, Jackson hole excellent except for the inflation nutters !

[icm63]

.."Jackson Hole is a very special place. And the Kansas City Fed’s annual symposium in Jackson Hole is a very special gathering. The Tetons are good for the soul, especially when soul searching for the answers to the critical economic questions of our time. This year, there was no table-pounding consensus as to how to right all that is wrong with the world. Humility, except perhaps for the inflation nutters, was very much on display."... HERE

McCully believes everything should be done to stop house prices falling. Ignore inflation, I guess because the greater risk is recession. (of course Pimco makes money on this bias).

So I guess he wants USA people to SPEND and BORROW, so why dont you ! What a way to get a healthy financial nation, spend and borrow ! ha

[Rantly McTirade]

Re: Pimco McCully, Jackson hole excellent except for the inflation nutters !

McCulley's thought that( and advocated)US citizens borrowing and consuming for years as some sort of benevolent act for the developing
world, never mind the harm that it does to his (allegedly) fellow Americans. He's one of many fine examples why most people, including
those in business or finance, have contempt for most of what are termed
'economists' and view them as actively harmful. He's also flacking for his
firms positions, i.e., a big boatload of agency MBS- a great reason to exclude any institutional holders of agency paper bought since , oh, June
1 from any Treasury support or government guarantee; keep 'em from
profiting on moral hazard carried on the back of taxpayers.:mad:

[GRG55]

Re: Pimco McCully, Jackson hole excellent except for the inflation nutters !

.."Jackson Hole is a very special place. And the Kansas City Fed’s annual symposium in Jackson Hole is a very special gathering. The Tetons are good for the soul, especially when soul searching for the answers to the critical economic questions of our time. This year, there was no table-pounding consensus as to how to right all that is wrong with the world. Humility, except perhaps for the inflation nutters, was very much on display."... HERE

McCully believes everything should be done to stop house prices falling. Ignore inflation, I guess because the greater risk is recession. (of course Pimco makes money on this bias).

So I guess he wants USA people to SPEND and BORROW, so why dont you ! What a way to get a healthy financial nation, spend and borrow ! ha

This would appear to sum up much of his position...

"...But it’s also the consequence of a negative real terms of trade shock, which the Fed can do nothing about in real time. I’ve been to the Fed’s headquarters in Washington and believe me, there are no oil derricks on the property. Sometimes, you just have to live with things that you don’t like because trying to fix them will give you something you like even less. It’s time for the inflation nutters to understand and accept that..."

...and, frankly, it's pretty hard to argue with him IMO. The Fed today has zero degrees of freedom in terms of realistic policy alternatives. McCully does not appear to be denying that inflation is rising.

And given continued drip feeding the financial sector, nationalizing Fannie and Freddie [soon, soon], bailouts for automakers, covering the looming FDIC deficit, the potential need to swap Treasuries for foreign holdings of securitized US credit, and the inevitable and continuing saga of Congressional stimulus programs [spitting into a hurricane?], to mention just a few of the more obvious abuses of the currency, is there any doubt there will be inflation?

[metalman]

Re: Pimco McCully, Jackson hole excellent except for the inflation nutters !

This would appear to sum up much of his position...

"...But it’s also the consequence of a negative real terms of trade shock, which the Fed can do nothing about in real time. I’ve been to the Fed’s headquarters in Washington and believe me, there are no oil derricks on the property. Sometimes, you just have to live with things that you don’t like because trying to fix them will give you something you like even less. It’s time for the inflation nutters to understand and accept that..."

...and, frankly, it's pretty hard to argue with him IMO. The Fed today has zero degrees of freedom in terms of realistic policy alternatives. McCully does not appear to be denying that inflation is rising.

And given continued drip feeding the financial sector, nationalizing Fannie and Freddie [soon, soon], bailouts for automakers, covering the looming FDIC deficit, the potential need to swap Treasuries for foreign holdings of securitized US credit, and the inevitable and continuing saga of Congressional stimulus programs [spitting into a hurricane?], to mention just a few of the more obvious abuses of the currency, is there any doubt there will be inflation?

falling demand point well taken but here's pimco's nightmare...

google images itulip argentina...





whew! that sucked. glad that's over with...

wooooops!






dilute by a factor of ten and pimco is still out of business.

question: is pimco fire econ or not?

[icm63]

Re: Pimco McCully, Jackson hole excellent except for the inflation nutters !

(to GRG55) Yes but the policy fixes (McCully likes over fighting inflation) proposed in your post will see $USD index at 62, Gold at $1600. So why would the very important buyers of USA debt like that? Those fixes (or attempts of a fix) are a play for buying moe time in the hope that time will solve all ills.

I guess PIMCO wants the chance to profit first from FRE/FNM bonds, get there money off to swiss bank accounts and watch USA implode from FIJI.

[c1ue]

Re: Pimco McCully, Jackson hole excellent except for the inflation nutters !

question: is pimco fire econ or not?

They are the definition of FIRE - the F part.

But PIMco has some benefits:

1) Bonds are senior to most everything else
2) There's always 'held to maturity'
3) If your timing is right, you can also pay the major trend shifts

So far that I have seen, they have very accurately predicted everything that has happened.

So long as they continue to do that, they can employ 1 or more of the above to make money.

[GRG55]

Re: Pimco McCully, Jackson hole excellent except for the inflation nutters !

(to GRG55) Yes but the policy fixes (McCully likes over fighting inflation) proposed in your post will see $USD index at 62, Gold at $1600. So why would the very important buyers of USA debt like that? Those fixes (or attempts of a fix) are a play for buying moe time in the hope that time will solve all ills...

No disagreement about the implications for $USD, gold, etc. But tell us then what can the Fed realistically do now to prevent those outcomes from happening?

IMO they're baked in the cake along with all the attendant inflation that we are already experiencing. All that's being debated now is how steep is the slope [e.g. how long can they stretch the time interval] to get there.

If you have some better ideas for the Fed, and the rest of the gang who gathered at Jackson Hole, I am sure they would love to hear them...after all they seem to be in a "creative" mood these days.

I guess PIMCO wants the chance to profit first from FRE/FNM bonds, get there money off to swiss bank accounts and watch USA implode from FIJI.

A thought that has likely also crossed the minds of some of the "very important buyers of USA debt" you mentioned [making PIMCO anything but unique]...

Edit added: Which would seem consistent with your post here...