What are they serving on the floor of the CME?
Yesterday, Tres Knippa, a futures trader and head of a shop called Kenai Capital, told Bloomberg TV that Fed Vice Chair Janet Yellen should be withdrawing her name from consideration to helm the office.
The conversation begins with Bloomberg host Betty Liu asking what he made of Yellen’s testimony, and how he will now position his assets for the rest of the trading year.
“Well first of all, Janet Yellen should withdraw her name from consideration,” he responds, point blank.
“Or the Senate should do everything they can to block her nomination,” he continued.
That seems just unlikely as Yellen self-withdrawing — or self-deporting, something Knippa may also wish Yellen would do.
The Senators were mostly cordial to her, and even Sen. Rand Paul, who plans to bring up a vote on a Fed audit bill, says she will likely get confirmed.
So who is Knippa? Well, he runs a site called ShortJapanDebt.com. “Long term there is a significant likelihood Japan will experience a sovereign debt crisis,” it says. “As a result it is my belief there is an opportunity to trade and be net short the Japanese government bond market.”
This trade is known as the “widowmaker” trade, and basically numerous self-styled macro experts have been wheeled out stretchers thinking that just because Japan has a high debt-to-GDP ratio, it’s inevitable the bond market will crash.
We should also note Knippa at one point this spring Tweeted a link to an appearance by his “friend” Jeff Berwick, the head of DollarVigilante.com. If you’re not familiar with that site, all you need to know is that its tagline is “SURVIVING & PROSPERING DURING AND AFTER THE DOLLAR COLLAPSE,” ALL IN CAPS.
So basically, Knippa is a hard money doomer who thinks everything’s on the verge of collapse. Yellen should be proud to have him as a critic.
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