Saturday, November 21, 2015

The Fed Calls An Emergency Closed Door Meeting Monday

The announcement of an expedited and closed meeting on Monday after Bullard says investors should prepare for an Era of Uncertainty. has raised a few eyebrows of concern. Did the Fed call this emergency meeting to change interest rates? Higher or lower for domestic or international interests? Pressure from European and emerging market central banks and IMF to postpone liftoff to protect failing institutions and debt has not disappeared*.

* The rumor mill claims that Germany's biggest bank, Deutsche Bank (DB), is facing bankruptcy since March when it failed the U.S. regulatory stress test. The resignation of its Co-CEOs in June and the announcement of massive layoffs in September has only fueled these rumors. The collapse of Deutsche Bank, likely a Lehman Brothers moment for Europe's cornerstone economy, would shatter confidence in the Euro. The Fed's decision to postpone 'liftoff' was rumored to be partially motivated by Deutsche Bank's growing insolvency; the Fed has no interest in becoming the scapegoat for it's failure. Germany, the economic leader of the euro zone and home of Deutsche Bank, Volkswagen and BMW, is clearly facing social, political, and economic changes ahead. These changes will likely smash confidence and send capital fleeing to the US.

Headline: Advanced Notice of a Meeting under Expedited Procedures

It is anticipated that the closed meeting of the Board of Governors of the Federal Reserve System at 11:30 AM on Monday, November 23, 2015, will be held under expedited procedures, as set forth in section 26lb.7 of the Board's Rules Regarding Public Observation of Meetings, at the Board's offices at 20th Street and C Streets, N.W., Washington, D.C. The following items of official Board business are tentatively scheduled to be considered at that meeting.



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