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Participants viewed the weakness in first-quarter economic growth as likely to be largely transitory, influenced by unusually severe weather, increases in energy and other commodity prices, and lower-than-expected defense spending. As a result, they saw economic growth picking up later this year.
well, spring is here, they've smacked down commodity prices with all they've got, and it appears more military actions against whoever are in the offing...
It was probably the weather that gave Strauss-Kahn HIV too i'm guessin'. Seems to me that the weather is causin' all sorts of problems these days...
And probably the "chemtrails" over NYC.
and, they'll blame japan and high fuel prices for the weakness in Q2....which, of course, is all transitory.
someone should tell the bankers that their freedom is transitory.
life is transitory
I believe them when they say weak growth is transitory. Next there won't be growth, it will be a non-transitory collapse.
growth expected next quarter... no wait.. next quarter.. no.. wait.. next quarter..
next quarter we promise..
I was thinking the same thing. When are they going to start being pessimistic with any of their damn expectations? I guess I don't want to see what happens when that happens.... (QE zillion)
every quarter they underestimate inflation and overestimate growth but no one cares!
I remember CNBC pounding the table that "green shoots" in the economy were here (back in 2009)!
Yes, blame it on reduced defense spending! LMFAO
Makes absolutely no fucking sense. They're speaking gibberish at this point.
Defense Spending has been reduced, military spending is now on offense.
Why should I believe anything the FOMC says???
Because it is in print.
That made me laugh!
Exactly. And other poster said "every quarter they underestimate inflation and overestimate growth but no one cares!" They are ALWAYS wrong, and no one cares!
When has the Fed been right?
It is a pretty sweet job: imagine a gig where you could be constantly wrong, costing your employer trillions, and running the company into the ground, and in return you get another appointment, more authority, daily praise and heralding of your scholarly expertise and erudition, and a license to write long documents of gibberish.
This can't be good for commodities.....or the economy.
Lots of people about to be caught on the wrong side of the commodity trades this summer...guess who will make out like bandits on it though
Commodities will collapse with stocks.I have no doubt in this.
Metals will fall too, but the dying dollar with save them.
Good news - "I did it"
Bad News - "Transitory"
maybe he was an MD at an investment bank since that is their motto too
"However, inflation was expected to recede over the medium term, as food and energy prices were anticipated to decelerate"
How about those decelerating commodity prices today, Ben?
Is his definition of deceleration the same as mine? When I decelerate my truck, I go less fast, but am still going in the same direction. Sooo, food and energy are still going to rise and rise and rise, just not doubling every few months?
Stagflation is still what that sounds like to me.
is the lying transitory?
Who junked you over that? We know they lie. We all talk about it daily here. Were like a bunch of old ladies in a sewing circle with gossip.
But it's transparent lying, so that's okay, right?
ZIRP until we want to sell assets. That's the rule.
some on here have personal junkers...I call them secret admirers.. they junk one no matter what one says.
They junk you because they love you.
“Although most participants continued to see the risks to their outlooks for economic growth as being broadly balanced, a number now judged those risks to be tilted to the downside.”
Women only get restraining orders to prove how much they love you...:>D
Any hints of the form QE3 will take in the minutes? I cannot find them at first glance.
It is written in invisible ink, that will only reveal itself if you wipe your ass with it.
No matter what they say, ding dong, QE in even a semi-recognizable form, is dead.
The bell tolls for QEx.
ZIRP for as long as Bernanke can take the heat - which may only be a matter of months, at this point.
I do wish Jim Rickards would get to the task of modeling how much more in treasuries reinvestment of interest income and principal from maturing MBS and other paper would net in terms of buying power for the Fed, because I think he's well off the mark with what he casually threw out months ago.
So you're saying the FED will do absolutely nothing as everything in sight collapses and burns to the ground? That is remarkable considering what they have done so far. That means total financial and economic annihilation on that call Mr. Sunshine.
First, you are presuming a bit much by saying "as everything in sight collapses and burns to the ground," no?
That sounds EXACTLY like something that Bernanke, Paulson and Geithner all would have told Congress would happen had TARP-TALF not been passed immediately, no?
Did I say that will happen? I don't even know what you mean by that. Are you talking literally? Give me some scale.
Second, I didn't say the Fed would do "nothing."What I did say, in a manner, is that Bernanke is pretty much out of ammo, and will keep ZIRP or near ZIRP applied, until the negative feedback loop is too powerful. When will that be? I don't know, but it will happen.
If stoppage of QE equals, to quote your exact words, "total financial and economic annihilation," then the continuation of ZIRP is not going to heal that which ails us (it's a catch 22 type predicament).
Fair enough. Maybe a bit over the top on my part. I agree with you that ultimately there will be a Reckoning Day. I just assume the FED (and Congress) will kick the can down the road as far as they possibly can. To me, it means more QE, not less. Trillions more.
What the Fed is trying to prevent: http://larouchepac.com/node/11319
Physics and Mathematics WILL win in the end! :>(
a lot of people who missed out shorting in 08 and want to make money off of that or else missed out on the 09-11 runup and are jealous.
The Fed has a print button in everyone's office now, lots of swaps and other mechanisms by which they will introduce credit or currency if the system locks up. The CBs ARE the interbank lending market now. If they actually back out, their own paper will implode.
Because the money supply is debt and need be repaid, ALL dollars in existence (save a few based on gold) will be vaporized, still leaving a massive interest repayment on the former money supply which cannot be paid.
In the absence of FRNs, some other form of money or transactional currency will manifest itself. We already have seen this in the form of barter coupons and scrip in various communities. Precious FRNs *lose* their ability to serve as money. In such a situation, FRNs only have worth to stave off insolvency and takeover by bankers.
'sub-prime is well contained' type of minutes
My guess is we are close, maybe a week away, from a low in PMs for the year.
guess? great, not enough of those floating around are there?
Now the lemmings are buying before wandering off the cliff. QE3 not coming for at least a quarter. Deflating the commodity sector isn't so difficult as most will find out in the next few months.
C'mon market, let's have a symbolic sell-off pissy fit. The Bernanke did not come with your QE3 porridge today.
Yeah, I'm surprised Jim Cramer isn't banging the table screaming "They know nothing,NOTHING!!! Without QE3 hedge fund douchebags won't make their bonuses and buy another private island."
No Press Conference?
Aha! Good point. Every time he speaks on camera, it is like a B-12 shot for commodites and PM's.
So, no---no press conference.
That's it then 0.5% forever!
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