Month: September 2014

Three weeks ago, in “A Quick Reminder Of The Only Thing That Matters, In One Chart” we did just that, showing the ever greater amount of global liquidity injected by the central banks, thanks to which they have so far successfully masked the accelerating economic collapse of the world, as shown by cratering “benign” inflation expectations to levels not seen since Lehman: hardly a confirmation of economic stability and growth:

… we and quoted none other than JPM that “the current episode of excess liquidity, which began in May 2012, appears to have been the most extreme ever in terms of its magnitude and the ECB actions have the potential to make it even more extreme.”

We left it off with the “one chart that should put everything in perspective, and explain why the world has reached a plateau of permanent addiction to monetary liquidity injections, and why nothing else matters.”

 

So, with everyone fearing imminent Fed tightening, what does this chart look like in the coming years? For the answer of what the “only chart that matters” projected until 2016 looks like, we go to Barclays, where we find that absolutely nothing is about to change to the slope of the infinitely fungible, globally interconnected, liquidity excess.  In fact, as Barclays puts it best, “central bank balance sheet growth will be broadly unchanged in the next 12-15 months.” So much about all those fears of a global rate hike cycle…

In fact, the only difference is that if and when the Fed’s QE ends and the US balance sheets declines modestly as a % of GDP, both Europe and Japan will take its place at the forefront of the global monetary firehose.

Of course, the assumption here is that once the Fed ends QE in 1 month, and concerns that a US rate hike is imminent, the market won’t crash and thus force the Fed to promptly return to what it does best, CTRL-P. In fact, the €64K question is whether the hand off from the Fed to the ECB and BOJ will be smooth enough to avoid a stock market crash between now and the end of 2016. Everything else is semantics.

via Zero Hedge http://ift.tt/1t8FA36 Tyler Durden

Three weeks ago, in “A Quick Reminder Of The Only Thing That Matters, In One Chart” we did just that, showing the ever greater amount of global liquidity injected by the central banks, thanks to which they have so far successfully masked the accelerating economic collapse of the world, as shown by cratering “benign” inflation expectations to levels not seen since Lehman: hardly a confirmation of economic stability and growth:

… we and quoted none other than JPM that “the current episode of excess liquidity, which began in May 2012, appears to have been the most extreme ever in terms of its magnitude and the ECB actions have the potential to make it even more extreme.”

We left it off with the “one chart that should put everything in perspective, and explain why the world has reached a plateau of permanent addiction to monetary liquidity injections, and why nothing else matters.”

 

So, with everyone fearing imminent Fed tightening, what does this chart look like in the coming years? For the answer of what the “only chart that matters” projected until 2016 looks like, we go to Barclays, where we find that absolutely nothing is about to change to the slope of the infinitely fungible, globally interconnected, liquidity excess.  In fact, as Barclays puts it best, “central bank balance sheet growth will be broadly unchanged in the next 12-15 months.” So much about all those fears of a global rate hike cycle…

In fact, the only difference is that if and when the Fed’s QE ends and the US balance sheets declines modestly as a % of GDP, both Europe and Japan will take its place at the forefront of the global monetary firehose.

Of course, the assumption here is that once the Fed ends QE in 1 month, and concerns that a US rate hike is imminent, the market won’t crash and thus force the Fed to promptly return to what it does best, CTRL-P. In fact, the €64K question is whether the hand off from the Fed to the ECB and BOJ will be smooth enough to avoid a stock market crash between now and the end of 2016. Everything else is semantics.

via Zero Hedge http://ift.tt/1t8FA36 Tyler Durden

We have yet to read Owen Jones’ “The Establishment… And how they get away with it“, although Russell Brand’s take of the author has certainly piqued our interest: ”Owen Jones may have the face of a baby and the voice of George Formby but he is our generation’s Orwell and we must cherish him.” We do know, however, that the young author and Guardian columnist is one of those who are not afraid to think critically while accepting there is far more than meets the eye, and certainly than the controlled media would like revealed. To wit, from the book’s official blurb:

Behind our democracy lurks a powerful but unaccountable network of people who wield massive power and reap huge profits in the process. In exposing this shadowy and complex system that dominates our lives, Owen Jones sets out on a journey into the heart of our Establishment, from the lobbies of Westminster to the newsrooms, boardrooms and trading rooms of Fleet Street and the City. Exposing the revolving doors that link these worlds, and the vested interests that bind them together, Jones shows how, in claiming to work on our behalf, the people at the top are doing precisely the opposite. In fact, they represent the biggest threat to our democracy today – and it is time they were challenged.

The following infographic from the book, showing “how the media controls Britain” reveals the schism between popular British sentiment about key social issues courtesy of media influences and reality, indicating that the “establishment” is more than happy to sow discord within the working/middle classes using its traditional “objective” distribution channels, while it remains aloof, collecting the rent its record capital provides.

 

And while the middle class around the world fights for scraps, and has seen its real wages over the past three decades largely unchanged, the “establishment”, wrapped in a comfortable cocoon spun by the captured media, benefits:

via Zero Hedge http://ift.tt/1rvtvsj Tyler Durden

We have yet to read Owen Jones’ “The Establishment… And how they get away with it“, although Russell Brand’s take of the author has certainly piqued our interest: ”Owen Jones may have the face of a baby and the voice of George Formby but he is our generation’s Orwell and we must cherish him.” We do know, however, that the young author and Guardian columnist is one of those who are not afraid to think critically while accepting there is far more than meets the eye, and certainly than the controlled media would like revealed. To wit, from the book’s official blurb:

Behind our democracy lurks a powerful but unaccountable network of people who wield massive power and reap huge profits in the process. In exposing this shadowy and complex system that dominates our lives, Owen Jones sets out on a journey into the heart of our Establishment, from the lobbies of Westminster to the newsrooms, boardrooms and trading rooms of Fleet Street and the City. Exposing the revolving doors that link these worlds, and the vested interests that bind them together, Jones shows how, in claiming to work on our behalf, the people at the top are doing precisely the opposite. In fact, they represent the biggest threat to our democracy today – and it is time they were challenged.

The following infographic from the book, showing “how the media controls Britain” reveals the schism between popular British sentiment about key social issues courtesy of media influences and reality, indicating that the “establishment” is more than happy to sow discord within the working/middle classes using its traditional “objective” distribution channels, while it remains aloof, collecting the rent its record capital provides.

 

And while the middle class around the world fights for scraps, and has seen its real wages over the past three decades largely unchanged, the “establishment”, wrapped in a comfortable cocoon spun by the captured media, benefits:

via Zero Hedge http://ift.tt/1rvtvsj Tyler Durden

For several days we had heard a persistent rumor, that one of the most famous members of the New York Fed’s Markets Group, also known as the Plunge Protection Team, Kevin Henry was moving to the HFT capital of the world, Chicago. We refused to believe it because, let’s face it, when the trading desk on the 9th floor of Liberty 33 needs to get its hands dirty in stocks, it simply delegates said task using just a little more than arms length negotiation, with the world’s most levered HFT hedge fund: Ken Griffin’s Citadel. Why change the status quo.

And then, it turned out to be true because as the Chicago Fed announced just a few short days ago:

The Markets Group at the Federal Reserve Bank of New York manages the size and composition of the Federal Reserve System’s balance sheet consistent with the directives and the authorization of the Federal Open Market Committee (FOMC), supports debt issuance and debt management on behalf of the U.S. Treasury, provides foreign exchange services to the U.S. Treasury and provides account services to foreign central banks, international agencies and U.S. government agencies.

 

Markets Group is establishing a presence at the Federal Reserve Bank of Chicago and has openings for both experienced professionals and recent graduates.

So instead of interacting with the HFT momentum ignition algos using the microwave line of sight towers from NY all the way to Chicago, the NY Fed has decided it needs to be present on location in the windy city to buy up every ES contract and reverse the selling momentum when the day of reckoning finally hits.

But what does that mean for Citadel? Well, considering Ken Griffin has more pressing issues on his mind, we can understand why Bill Dudley is suddenly concerned the NY Fed’s orders may get less than optimal “best practice” execution, and thus the need to finally get the Fed’s hands wet. After all, by now everyone knows the Fed is directly and indirectly manipulating and intervening in markets on a daily basis, so why not.

As to just what specific skills the NY Fed is seeking as it builds out its HFT practice on the ground in Chicago, here are the two indicated positions with which the expansion is set to start:

Markets Group – Policy & Markets Analysis Associate – Cross Market Monitoring

 

Primary Location: IL-Chicago
Full-time / Part-time:  Full-time
Employee Status:  Regular
Overtime Status:  Exempt
Job Type:  Recent Graduate
Travel:  Yes, 5 % of the Time
Shift:  Day Job
Job Sensitivity Not Evaluated

Job Title: Policy & Markets Analysis Associate – Cross Market Monitoring
Group:  Markets Group
Location: Chicago, IL
Start Date: Summer 2015
 
The Markets Group at the Federal Reserve Bank of New York consists of multiple business areas that fulfill a range of responsibilities, from planning and executing open market operations, monitoring and analyzing financial market developments, to managing foreign customer accounts.

 

Through its analytical and operational areas, the Markets Group:

• Manages the size and composition of the Federal Reserve System’s balance sheet consistent with the directives and the authorization of the Federal Open Market Committee (FOMC);
• Monitors and analyzes financial market developments for key stakeholders and policymakers within the Federal Reserve System;
• Monitors and analyzes developments related to financial stability;
• Supports debt issuance and debt management on behalf of the U.S. Treasury;
• Provides foreign exchange services to the U.S. Treasury; and
• Provides account services to foreign central banks, international agencies, and U.S. government agencies.

RESPONSIBILITIES:

• Monitors, analyzes and reports to policy makers on global financial market developments:
  • Tracks intra-day and longer-term global asset price movements;
  • Interfaces with market participants to obtain context for asset price movements;
  • Analyzes findings and identifies themes relevant to the monetary policy process;
  • Prepares detailed written analysis and presents oral briefings on market developments to officials in the Federal Reserve, the Treasury, and other institutions;
  • Relates developments in financial markets to issues pertaining to financial stability; and
  • Assumes responsibility over time as a Markets Group specialist for a specific aspect of financial markets.
• Plans and executes transactions in foreign exchange or fixed income markets on behalf of the U.S. monetary authorities, foreign central banks, and other customers
• Participates in projects within the Markets Group related to increasing the effectiveness and efficiency of transactional business areas
• Performs related duties as required

REQUIREMENTS:

• Master’s degree in Business Administration, Economics, or Public Policy and a minimum of one year relevant work experience in an analytical capacity related to global financial markets
• We will consider recent graduates/current students and those with up to 5 years of relevant work experience
• Demonstrated analytical skills, including knowledge of financial instruments and financial market structure, macroeconomic theory and monetary policy
• Proven ability to provide concise, articulate and insightful economic analysis in written and verbal form.
• Ability to analyze complex market issues, make sound decisions and respond under pressure
• Ability to work productively in a high-performance team atmosphere and as an independent analyst
• Must adhere to area specific financial disclosure requirements

… and a European-focused plunge protector:

Policy & Market Associate – Chicago-237531

 

Primary Location: IL-Chicago
Full-time / Part-time: Full-time
Employee Status: Regular
Overtime Status: Exempt
Job Type: Experienced
Travel: Yes, 10 % of the Time
Shift Day: Job

 

The Markets Group at the Federal Reserve Bank of New York is responsible for the implementation of monetary and foreign exchange policy, providing payments and custody services to foreign central banks, and auctioning and issuing Treasury debt as the fiscal agent for the U.S. Treasury.  As part of these duties, the Market Operations Monitoring and Analysis Function (MOMA) within the Markets Group executes transactions in the open market and conducts detailed analysis of financial market developments in support of the monetary policy decision-making process.

 

The International Market (IM) Directorate within MOMA is responsible for providing in-depth analysis of global financial mar
ket developments and international policy matters that contributes directly to the broader analytical work conducted by the Markets Group specifically and the Federal Reserve System more broadly. The Directorate also has many operational responsibilities, including executing U.S. foreign exchange policy and foreign exchange customer transactions, managing the U.S. foreign exchange reserves, and managing foreign exchange swap lines with foreign central banks.

 

The IM Directorate is currently seeking a Policy and Markets Associate to produce high quality analysis on global policy and financial market developments that contributes directly to the broader analytical work conducted by the Markets Group specifically and Federal Reserve System more broadly.  This position will focus specifically on the euro area, but may include some coverage for other regions.  Applicants should be familiar with matters relating to international economic policy frameworks and global financial markets analysis, and should be able to develop and convey their views in a concise manner, both verbally and in writing, to senior policy makers throughout the Federal Reserve System and U.S. Treasury.  The candidate will also be expected to participate in the myriad of operations under the Directorate’s purview.

 

Responsibilities

• Prepare analysis of global financial market developments with a focus on the euro area.
• Convey and develop views to senior policy makers on such topics through daily and/or weekly written and/or oral briefings.
• Collaborate with other Groups within the Federal Reserve Bank as well as other Federal Reserve Banks within the system as well as the U.S. Treasury in related areas.
• Collaborate with other central banks on relevant policy initiatives, information exchange on financial markets, domestic policy developments and reserve management.
• Remain current on relevant economic and finance literature and financial markets and developments pertaining to monetary and foreign exchange policy frameworks and approaches.
• Develop contacts within the global financial community, including with investment banks, central banks and other policy institutions such as the U.S. Treasury and IMF.
• Learn and conduct the broad range of the Directorate’s operations, including related to foreign reserves management, foreign exchange transaction and foreign exchange swaps.

Requirements

• Post-graduate degree in economics, finance or a related field.
• Minimum of 3 years’ experience analyzing financial market developments and/or international policy issues.
• Strong written and oral communication skills that will enable the candidate to convey their views to senior policy makers in a clear, concise and consistent manner.
• Strong interpersonal skills to interact and collaborate effectively with peers, subordinates, senior management and external parties.
• Operational experience not required, but candidate should have strong attention to detail.
• Ability to represent effectively the business area and the Bank, as appropriate, on issues related to global financial markets.

Finally, and we assume this was done in very good humor, the Fed is also hiring a Risk Management Specialist.

#Hiring– Risk Management Specialist – C: http://t.co/68I1jRIgjR.

— Federal Reserve Jobs (@FedReserveJobs) September 26, 2014

About time?

via Zero Hedge http://ift.tt/YwnYGs Tyler Durden