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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Ahmeexnal's picture

You are now entering...the Twilight Zone.

Clay Hill's picture

More like the Outer Limits.


"We control the horizontal."

"We control the vertical."

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?


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.




carbonmutant's picture

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

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.

Rodent Freikorps's picture

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

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?

SeverinSlade's picture

Hahaha.  Got a good laugh there.

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



EscapeKey's picture

The Twilight Zone is priced in already.

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)

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........

TruthInSunshine's picture

Stagflation will turn out to be a very large understatement.

Oh what a tangled web The Bernank has weaved.

DonnieD's picture

Take idiots revisions and multiply by 20 to get reality.

DonnieD's picture

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

cougar_w's picture

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

ZakuKommander's picture

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


Cursive's picture


LOL. Bennie is a RoboTrader fan.

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?

alien-IQ's picture

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

SDRII's picture

Bernanke to WSJ reporter: you are the policy tool

NotApplicable's picture


WSJ reporter to Bernanke: no, you are!

alien-IQ's picture

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

BCTwelve's picture

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

cougar_w's picture

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

Ben wants 3 tits now.

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.

cougar_w's picture

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

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.

Michael Victory's picture

Up, down, up, down.

No worries for holders of phizikal Ag & Au.

Chart of Inflaiton Adjusted Gold Prices

kaiserhoff's picture

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

dcb's picture

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

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?

richard in norway's picture

you sound like your blowing a gasket

Boilermaker's picture

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

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.



HowardBeale's picture

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

cougar_w's picture

fuuuuuuuuuuuuuuuuUUUUUUUUUUUUUuuuuuuuuuuuuck is about right.

Joe Davola's picture

I too enjoyed The King's Speech.

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.

HowardBeale's picture

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

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.

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!

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.

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.