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"Who controls the food supply controls the people; who controls the energy can control whole continents; who controls money can control the world" - Henry Kissinger

and yet...

"Sooner or later everyone sits down to a banquet of consequences" – Robert Louis Stevenson

Settle down children and Aunty Janet will tell you a fedtime story.

In response to an FT article by Sam Fleming on 16th August 2016, entitled ‘US inflation retreat clouds Fed rate outlook’

‘On Tuesday, the New York Fed chief Bill Dudley told Fox Business Network that markets were underpricing the odds of a second rise in official interest rates, as he suggested a move could come as soon as next month…

…Minutes from the Fed’s latest rate-setting meeting will be released on Wednesday, and these could affect market odds, as could a speech from Janet Yellen, the Fed chair, who speaks on Friday next week at the central bank’s symposium in Jackson Hole, Wyoming…

…Dennis Lockhart, the president of the Atlanta Fed, also signalled that the central bank could move rates in the coming months, saying in a speech that “if my confidence in the economy proves to be justified, I think at least one increase of the policy rate could be appropriate later this year”…

…John Williams president of the Federal Reserve Bank of San Francisco, said…“There is simply not enough room for central banks to cut interest rates in response to an economic downturn when both natural rates and inflation are very low”’

For anyone wondering what all this means, here is a summary of the Fed monthly communication cycle over the last GKHL (God knows how long):

D Day: "We're not raising rates, but...217 unintelligible paragraph length sentences later...all meetings are live" - Melon Yellen

Move 1 - "The latest figures from the Bureau of Labour Statistics (BLS) continue to improve, which gives us optimism for a gradual return to normalisation" - Melon Yellen (Note: BLS is AKA Bureau of Lies and Spin)

Move 2: "I think we should be patient" - Dullard Bullard

Move 3: "The market is under-estimating the likelihood of a rate hike" - Fudley Dudley

Move 4: "Whatever he just said" - Brainfart Lockhart

Move 5: "Rate hikes are still on the table for next month" - Fudley Dudley

Move 6: "There are concerns about instability resulting from Brexit/China/Japan/Europe/Aliens landing on the Empire State Building/a disappointing spaghetti harvest" - Melon Yellen

D Day: "We're not raising rates, but...325 unintelligible chapter length sentences later...all meetings are live" - Melon Yellen

Rinse, repeat.

P.S. For those of you who believe that the Fed will do nothing before the election, so as not to upset Hillary's chances of becoming should be thoroughly ashamed of yourselves. The Fed is above politics, your Grandma always knows best, and Hillary did not have sexual relations with those emails.

Debt based growth no longer works

US Exceptionalism? Enough already...