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Federal Reserve Lowers GDP, Raises Unemployment And Inflation Projections

Tyler Durden's picture




 

The Fed has just taken one small step to acknowledging reality... and Zero Hedge's keyword of 2011: stagflation. The FOMC  released its revised 2011-2013 economic forecast, which saw GDP getting slashed, while hiking its inflation and unemployment projections. Specifically, 2011 GDP was lowered from 3.2% to 2.8% even as it raised its average unemployment forecast from 8.6% to 8.8%.

Next up: the stampeding herd of Wall Street lemmings follows suit. Below is the consensus 2011 GDP forecast from Wall Street "economists." I.e., from the people who are paid millions each year to maintain the status quo.

So much for QE2.

 

 

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Wed, 06/22/2011 - 14:17 | 1392500 WALLST8MY8BALL
WALLST8MY8BALL's picture

Sell SKY

Wed, 06/22/2011 - 14:17 | 1392502 Ahmeexnal
Ahmeexnal's picture

You are now entering...the Twilight Zone.

Wed, 06/22/2011 - 14:18 | 1392520 Clay Hill
Clay Hill's picture

More like the Outer Limits.

 

"We control the horizontal."

"We control the vertical."

Wed, 06/22/2011 - 14:41 | 1392631 nope-1004
nope-1004's picture

So if inflation is "transitory", yet the projection raised.....

 

Is this an admission by Benocide that he is grossly incompetent in his position?

I think so.  After all, trusted leaders in positions of power and authority don't intentionally lie, do they?

</sarc>

Wed, 06/22/2011 - 14:52 | 1392687 Larry Darrell
Larry Darrell's picture

Actaully, he knows he can admit inflation is higher right now because........

He knows the politicians in his pocket will redefine CPI shortly, thus the number ticks back down via "banksta magic".........

And then he once again amazes the sheep as his call for "transitory" higher inflation materializes, even though the reality is shit continues to worsen for J6P.

 

 

 

Wed, 06/22/2011 - 14:52 | 1392663 carbonmutant
carbonmutant's picture

Sounds like they're saying that they're losing control...:)

Wed, 06/22/2011 - 14:58 | 1392699 cougar_w
cougar_w's picture

Now that's not true. They said they couldn't find the steering wheel and the brakes aren't working and the accelerator is stuck to the floor. They did not say they have lost control.

Such hysteria.

Wed, 06/22/2011 - 15:00 | 1392710 Rodent Freikorps
Rodent Freikorps's picture

Yeah. Until the steering wheel falls off, it's all good.

Wed, 06/22/2011 - 15:10 | 1392764 RockyRacoon
RockyRacoon's picture

I think The Three Stooges did a bit on that.

"Here, you take the wheel...."

Moe: Take the wheel.
Curly-Joe: Okay.
[Curly Joe mistakes Moe's words and takes out the steering wheel, steering wheel column and all]
Curly-Joe: I got it
Moe: Stupit, put that back in the car!
[Hits Curly Joe]
Curly-Joe: [muttering] Why can't you make up your mind?

Wed, 06/22/2011 - 15:21 | 1392792 carbonmutant
carbonmutant's picture

LOL +10

Wed, 06/22/2011 - 15:33 | 1392846 SeverinSlade
SeverinSlade's picture

Hahaha.  Got a good laugh there.

Wed, 06/22/2011 - 16:35 | 1393078 macholatte
macholatte's picture

OR...... the orderly destruction of life as we have known it is proceeding right on schedule, as planned, without any serious opposition and no organized civil disobedience. The worst thing to happen has been the end of the Oprah show and the best thing is the end of the Glenn Beck show. The world is almost perfect.

The conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in democratic society.
Edward Bernays 

 

It is the absolute right of the State to supervise the formation of public opinion.
Joseph Goebbels

 

 

Wed, 06/22/2011 - 14:30 | 1392583 EscapeKey
EscapeKey's picture

The Twilight Zone is priced in already.

Wed, 06/22/2011 - 16:26 | 1393035 Zero Govt
Zero Govt's picture

It's not Twilight Zone, it's the Pear-Shaped Zone ...all the Feds figures are going skew-whiff 'out' but Benny is still 'in' (a job)

this elite-educated moron was wrong on everything before he got the Fed job and he's been wrong on every forcast and prediction he's made since.... let's hear it for cronism in Americas Parasite Club, it's a job for life (or at least until you become obviously senile like Alan Greenspan when they have to cart you off)

Wed, 06/22/2011 - 22:55 | 1393731 sgorem
sgorem's picture

Maybe WE can just luck out, (and I really hate being crass about this :), but maybe the SOB might get broadsided by a Mexican semi driver and flattened like the pancake he is. just saying, (with fingers crossed!). The ONLY thing better would be if the "Kikener" was with him........

Wed, 06/22/2011 - 14:14 | 1392507 TruthInSunshine
TruthInSunshine's picture

Stagflation will turn out to be a very large understatement.

Oh what a tangled web The Bernank has weaved.

Wed, 06/22/2011 - 15:09 | 1392743 hedgeless_horseman
hedgeless_horseman's picture

...and unexpected at that.

Wed, 06/22/2011 - 14:19 | 1392512 DonnieD
DonnieD's picture

Take idiots revisions and multiply by 20 to get reality.

Wed, 06/22/2011 - 14:22 | 1392524 DonnieD
DonnieD's picture

So Ben spent a few trillion to make that chart have tits. Money well spent.

Wed, 06/22/2011 - 14:25 | 1392558 cougar_w
cougar_w's picture

I don't want to think about Ben having  ... tits.

Wed, 06/22/2011 - 15:24 | 1392803 ZakuKommander
ZakuKommander's picture

No woman could do as terrible a job as he has.

 

Wed, 06/22/2011 - 14:26 | 1392566 Cursive
Cursive's picture

@DonnieD

LOL. Bennie is a RoboTrader fan.

Wed, 06/22/2011 - 14:23 | 1392525 oogs66
oogs66's picture

they have been revising down at almost every meeting, when will they admit that they have no more clue than anyone and have been horribly wrong?

Wed, 06/22/2011 - 14:28 | 1392554 alien-IQ
alien-IQ's picture

when Ron Paul is elected president and Lloyd Blankfien goes to jail...in other words...(insert laugh track here)

Wed, 06/22/2011 - 14:25 | 1392538 SDRII
SDRII's picture

Bernanke to WSJ reporter: you are the policy tool

Wed, 06/22/2011 - 15:00 | 1392711 NotApplicable
NotApplicable's picture

LOL

WSJ reporter to Bernanke: no, you are!

Wed, 06/22/2011 - 14:23 | 1392540 alien-IQ
alien-IQ's picture

lower GDP + Higher inflation x Higher unemployment = Market Rally? ... sure...why the fuck not.

Wed, 06/22/2011 - 14:26 | 1392563 BCTwelve
BCTwelve's picture

actually the market is rallying on rumors of the NFL lockout ending...golds moving nicely as well

Wed, 06/22/2011 - 14:32 | 1392570 cougar_w
cougar_w's picture

lower GDP + Higher inflation x Higher unemployment = QE3+... so sure...why the fuck not.

Ben wants 3 tits now.

Wed, 06/22/2011 - 14:34 | 1392603 Silver Dreamer
Silver Dreamer's picture

Three is better than two!  The problem with tits is that they eventually sag and point down instead.  Any number of those is bad.

Wed, 06/22/2011 - 14:53 | 1392668 cougar_w
cougar_w's picture

No! These are Miracle Tits!(TM) Patents pending! No saggiez evar!

Wed, 06/22/2011 - 14:27 | 1392571 sheep92
sheep92's picture

Nominal GDP comes down very little and all the change is already baked in for this Q.  So not bad for equites.

Wed, 06/22/2011 - 14:26 | 1392541 Michael Victory
Michael Victory's picture

Up, down, up, down.

No worries for holders of phizikal Ag & Au.

Chart of Inflaiton Adjusted Gold Prices

Wed, 06/22/2011 - 14:26 | 1392543 kaiserhoff
kaiserhoff's picture

Let's see the GDP minus government parasite checks and transfer payments paid for by mortgaging the future.  Obummer's Depression.

Wed, 06/22/2011 - 14:25 | 1392555 dcb
dcb's picture

not even sure what this means (the chart that is)

Wed, 06/22/2011 - 14:27 | 1392567 Boilermaker
Boilermaker's picture

It's obviously great for commercial real estate since it's fucking soaring again today.  Hell, why not?  What the fuck does the truth have to do with anything anymore?

Ben's voice is cracking like a zit-faced teen and the market actually goes up.

Seriously, what the fuck is this shit anymore?  Who the fuck believes this trash?

Wed, 06/22/2011 - 14:37 | 1392598 richard in norway
richard in norway's picture

you sound like your blowing a gasket

Wed, 06/22/2011 - 14:44 | 1392647 Boilermaker
Boilermaker's picture

It was an just an o-ring...phew.

Wed, 06/22/2011 - 14:29 | 1392580 HowardBeale
HowardBeale's picture

Fuck fuck fuck fuck. Fuck, fuck fuck fuck, fuck? Fuck fuck. Fuck fuck fuck fuck fuck, fuck fuck fuck fuck! Fuck fuck! Fuck...fuck? Fuck fuck, fuck fuck fuck, fuck fuck.

 

Fuck.

Wed, 06/22/2011 - 14:31 | 1392590 Boilermaker
Boilermaker's picture

Intercourse!

Wed, 06/22/2011 - 14:38 | 1392601 HowardBeale
HowardBeale's picture

Intercourse? A fair representation--as I remember it.

Wed, 06/22/2011 - 14:36 | 1392593 cougar_w
cougar_w's picture

fuuuuuuuuuuuuuuuuUUUUUUUUUUUUUuuuuuuuuuuuuck is about right.

Wed, 06/22/2011 - 14:35 | 1392607 Joe Davola
Joe Davola's picture

I too enjoyed The King's Speech.

Wed, 06/22/2011 - 14:39 | 1392621 alien-IQ
alien-IQ's picture

and that is precisely why i no longer watch when this man speaks. I don't want to pull my hair out. I don't want to start slamming tequila. I do not want to be tempted to toss yet another computer monitor out my window.

it's just not worth it.

Wed, 06/22/2011 - 14:42 | 1392636 HowardBeale
HowardBeale's picture

I get hair pulling and television throwing, but what da ya have again tequila?

Wed, 06/22/2011 - 14:49 | 1392653 alien-IQ
alien-IQ's picture

anger/depression induced drinking binge with the inevitably ugly end result. Been there, done that got the blood stained t-shirt.

Wed, 06/22/2011 - 14:35 | 1392588 cougar_w
cougar_w's picture

I think that all the lying and obfuscation has finally served it's intended purpose:

Nobody Gives a Flying Fuck.

They could revise GDP to -5% tomorrow and unemp to 25%, nobody would give a fuck.

Mission accomplished! wewt! we is won!

Wed, 06/22/2011 - 14:33 | 1392597 Boilermaker
Boilermaker's picture

Exactly!  They've finally accomplished the mission of literally making everyone give a fuck less.

Congrats!  It's all an eye rolling shitfest now.

Wed, 06/22/2011 - 14:42 | 1392640 cougar_w
cougar_w's picture

And taking that thought a step further, answering the question "why would they want thinking people to not give a fuck?"

First forget the Bilderburg and Illuminati and all that tinfoil jazz. I know it's hard but stay with me for a second.

The want people to stop paying attention because some actual, very real and increasing obvious shit storm is coming over the horizon. Not a God-damn thing they can do about it except turn off as many people as they can with lies, damned lies, and their shitty shifting statistics. Dazzled with footwork, people will go about their daily routine not noticing that real (not imagine) shit has hit a real (not statistically neutered) fan.

And what else could they do? Talk to Americans? Just tell them what's on the way, and who did it to them and why, and what it means to their retirements and cost of fuel? Oh yeah that would work out really well. The same drones and sheep who elected a drunk frat boy with an MBA as President? Those Americans?

The last three years has "disaster management" written all over it. Well the wheels are about to come off, give it until late H2 but not far into 2012. Election year or not, dem wheels iz OFF my nigga bey-atches.

Wed, 06/22/2011 - 15:00 | 1392726 NotApplicable
NotApplicable's picture

Rims!

Wed, 06/22/2011 - 14:42 | 1392599 Dapper Dan
Dapper Dan's picture

Prepare the escape pods.........we already released them captain,

fuck you idiot we aren't even in them yet.

No captain, we re-leased them back to the Klingons.

Wed, 06/22/2011 - 14:38 | 1392600 JLee2027
JLee2027's picture

What a farce! Who believes this shit?

Wed, 06/22/2011 - 14:43 | 1392622 Boilermaker
Boilermaker's picture

Nobody.  But, they're going to ramp the shit out the markets anyway.  Bet on it.

This is the final grab at wealth before the collapse.  Be prepared to see seriously fucked up shit now.

Wed, 06/22/2011 - 14:47 | 1392657 cougar_w
cougar_w's picture

I'm down with this assessment.

"Seriously fucked up" is going encompass a kind of insane volatility that you have not seen even yet.

Go back and study 1987. I'm with Cashin on this; the center is not going to hold.

Wed, 06/22/2011 - 14:52 | 1392689 Boilermaker
Boilermaker's picture

Watching this incompetent shit-head fumble through this is beyond belief...un-be-fucking-lievable.

My god...what has this moron got us into?

Wed, 06/22/2011 - 15:02 | 1392731 NotApplicable
NotApplicable's picture

Ummm... absolutely nothing. He's just a mere puppet after all. To blame him is to provide cover for his masters.

Wed, 06/22/2011 - 14:37 | 1392613 the not so migh...
the not so mighty maximiza's picture

Majority of americans voted for change and got crapped on.   republicans are getting their ass ready for them to start crapping on people. 

Wed, 06/22/2011 - 14:47 | 1392645 PaperBear
PaperBear's picture

Mr Bernanke likes using the word "transitory" in relation to price inflation so I would it in relation to economic recovery.

Wed, 06/22/2011 - 15:18 | 1392795 RockyRacoon
RockyRacoon's picture

He's not wrong.   Everything is transitory.

"On a long enough time line..."

What he has not done is give us the time frame.

...because he can't.

Wed, 06/22/2011 - 14:45 | 1392651 Syrin
Syrin's picture

The US economy has already been mortally wounded.   The only question now that remains is what do the death throes entail?   Will it be Fance 1789?   Will we become Soviet Moscow circa 1982 as the push to tyranny and one world gov't continues unabated?   Do we become Little House on the Prairie over night?   Post apocolyptic world of the Road Warrior?   Weimar republic or Zimbawe?   Is it relatively mild with prolonged inflation and stagflation for the better part of a decade?

 

Where else is there to go?   New Zaealnd?   Guatemala?  The whole world has collapsed to shit over the past decade.

Wed, 06/22/2011 - 14:49 | 1392671 Rodent Freikorps
Rodent Freikorps's picture

Why move anywhere? Latin America will come to you.

Wed, 06/22/2011 - 15:13 | 1392765 alien-IQ
alien-IQ's picture

if it's gonna collapse regardless of where you are, I'll opt for being on a nice beach when it collapses.

I sure as hell do not want to be in Manhattan, Chicago, LA, London or any big city when it goes down the shitter.

besides, last I checked...nobody ever froze to death in the Bahamas.

Wed, 06/22/2011 - 18:14 | 1393332 Things that go bump
Things that go bump's picture

If it comes down to it, can they feed themselves in the Bahamas?  How is the fresh water supply?

Wed, 06/22/2011 - 23:09 | 1393756 sgorem
sgorem's picture

only problem with that is: The locals won't be out asking or begging for a "tip", you'll have some third world 357 stuck up your nose, but it'll still be on a sunny, white beach. Good luck, been there, etc........

Wed, 06/22/2011 - 14:47 | 1392660 Rodent Freikorps
Rodent Freikorps's picture

They closed down a Randall's in my part of town last year. The grocery store is now an El Rancho.

Just got back from my first visit and it was a total flashback to a few 3rd world experiences, but in a good way.

The people there aren't any better than the average American, but they have a lot less fear. Less fear of the police state, and credit scores, and lawsuits. Less total anal retention of all things.

I guess I better get fluent in Latin American Spanish.

The girls were way cute too.

Wed, 06/22/2011 - 14:55 | 1392682 cougar_w
cougar_w's picture

Seriously. No barriers.

Wed, 06/22/2011 - 15:23 | 1392774 Shell Game
Shell Game's picture

You made me remember the Brazilian sweetie I almost married. Shoulda, coulda..

Agree, they are waay more relaxed and happy with the simple stuff.  My time in Costa Rica was nice too.  Poor by our money standards, but clean, happy and generous. Rich, by other standards..

Wed, 06/22/2011 - 14:52 | 1392666 LawsofPhysics
LawsofPhysics's picture

Hey, be positive people.  The Fed is now meeting half of their mandate - higher inflation.

< sarc off >

Wed, 06/22/2011 - 14:53 | 1392693 Boilermaker
Boilermaker's picture

Is this for fucking real?  My god, this jackass has completely shit the bed.

Wed, 06/22/2011 - 15:28 | 1392820 Bay of Pigs
Bay of Pigs's picture

Now don't go getting all rose colored glasses and optimistic on us now Boilermaker.

"Stay the course, thousand points of light"...(and a little more Tullamore Dew with that cold beer). 

Wed, 06/22/2011 - 14:57 | 1392695 carbonmutant
carbonmutant's picture

 It's coming down

The objective is to avoid a crash...

Wed, 06/22/2011 - 15:00 | 1392709 cougar_w
cougar_w's picture

WhahahahaHAHAHAHAHAHA HAHAHAHAHAHA! 

Okay, serioiusly though fwaHAHAHAHA! Hahahaha!!

Hee hee.

[wipe eyes]

Wed, 06/22/2011 - 15:23 | 1392801 carbonmutant
carbonmutant's picture

 You obviously have no idea how to boil a frog... lulz

Wed, 06/22/2011 - 15:16 | 1392775 MrBoompi
MrBoompi's picture

Until they remove government spending and "banking contributions" from GDP calculations they're not worth the paper they're printed on anyway.

These "organizations" suck money from the ever-shrinking productive part of the economy.

Wed, 06/22/2011 - 15:16 | 1392776 UGrev
UGrev's picture

Because sometimes RAMMING their dick in our asses is just too sudden.. they have to sneak it in.. little by little. Then BAM!!! they go balls deep and it's too fucking late to do anything about it. Next up, foreshead smack with the money shot. We are fucked already.. might as well go all the way baby!

Wed, 06/22/2011 - 15:34 | 1392830 Rodent Freikorps
Rodent Freikorps's picture

You do have to admit when someone is cumming in your ass while donkey punching you to the head, the argument of who is dominant is pretty much moot.

Wed, 06/22/2011 - 15:52 | 1392913 UGrev
UGrev's picture

hahaaha.. well put. 

Wed, 06/22/2011 - 16:41 | 1393082 cougar_w
cougar_w's picture

Yuk. Now I feel dirty----ier.

Wed, 06/22/2011 - 23:22 | 1393768 sgorem
sgorem's picture

IS EVERYBODY DRUNK AND PISSED TONIGHT? Damn, this is my kind of crowd. Just stay pissed !!!!! Spread the anarchy to everyone, whether they want to here it OR NOT! Osambo is vacationing, AGAIN, to see who else but Nelson Mandela, Bernachey stuttered through his usual Valium interview, and of course the Prophet Blankfein has looted the America's and is ready to sink his fangs into you, your family, and dogs Jugular to get every drop of blood he can. Shit, I guess things could be worse...? 

Thu, 06/23/2011 - 05:52 | 1394061 DanieliusV
DanieliusV's picture

Ben Bernanke is a very smart man but bankers have squeezed his balls. He is economist, but not a banker.

Bankers are the one who make him lie and justify this scam. Scam that is based on bulgrary of American working class in Wall Street favor. 

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