FOMC Minutes: Fed Is Now Openly Targetting A (Much) Lower Dollar

Tyler Durden's picture

Despite what some lying FOMC sack of fecal matter said on TV recently, it turns out the Fed was not only fully aware QE2 would crush the dollar, but welcomed it.

"Several participants argued that the stimulus provided by additional securities purchases would help protect against further disinflation and the small probability that the U.S. economy could fall into persistent deflation—an outcome that they thought would be very costly. Some participants, however, anticipated that additional purchases of longer-term securities would have only a limited effect on the pace of the recovery; they judged that the economy’s slow growth largely reflected the effects of factors that were not likely to respond to additional monetary policy stimulus and thought that additional action would be warranted only if the outlook worsened and the odds of deflation increased materially. Some participants noted concerns that additional expansion of the Federal Reserve’s balance sheet could put unwanted downward pressure on the dollar’s value in foreign exchange markets. Several participants saw a risk that a further increase in the size of the Federal Reserve’s asset portfolio, with an accompanying increase in the supply of excess reserves and in the monetary base, could cause an undesirably large increase in inflation."

And this:

"Participants also differed in their assessments of the likely benefits and costs associated with a program of purchasing additional longer-term securities in an effort to provide additional monetary stimulus, though most saw the benefits as exceeding the  costs in current circumstances. Most participants judged that a program of purchasing additional longer-term securities would put downward pressure on longer-term interest rates and boost asset prices; some observed that it could also lead to a reduction in the foreign exchange value of the dollar. Most expected these changes in financial conditions to help promote a  somewhat stronger recovery in output and employment while also helping return inflation, over time, to levels consistent with the Committee’s mandate."

We hope the middle class enjoys its daily KY stretching exercises by its Marriner Eccles feudal overlords.

Elsewhere the despots lowered their 2011 GDP target from a range of 2.9 to 4.5 to 2.5 to 4.0 (and 2010 to 2.3 to 2.5). Bill Gross knew this in September. To wit: "Our understanding is that the Fed is about to downgrade their forecast from 3% down to 2%." Can we please get in on whatever expert network PIMCO uses? We promise to expense it to US taxpayers as well.

Full minutes: 

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ReeferMac's picture

Bullion, Bitchez!

Dr. Engali's picture

Lead...... wrapped in a full metal jacket.

unwashedmass's picture


sort of a jonathan swift way of taking care of things, Ben's talking. He's going to take the dollar down, and literally wipe out all the old and infirm on fixed incomes....and those stupid enough to save with CDs and Treasuries.....

quite a plan....of course, how we manage to teach the next generation that it is safe to save anything in the line of sight of the overlords is completely beyond me.

Anyway, how soon do we think that they are going to try to herd all the 401(K) money into the burrning boats of the Treasury?

Horatio Beanblower's picture

Don't forget to use a little bit of copper too.

Dr. Engali's picture

Yeah and the sulfur,charcoal,and potassium nitrate. All good investments.

VodkaInKrakow's picture

RDX (dangerous, I know), C4, and a 9-volt battery connected to a cell-phone? Phone home to heaven? Funny how Chemistry class in 9th grade (taught by an actual Professor - loved the guy - best teacher) taught us the process for the production of Dynamite.

SheepDog-One's picture

500 round cases of .308's, fast as I can order em for $160 each!

Sudden Debt's picture

I like your thinking.

12 month ago, I've would have said you're a looney but now I'm starting to think you kind of make sence.

Today I've got from a very good source that:

1. the silver markets in Europe are also exploding

2. The euro is going for a full blown implosion to.

I'm hoarding as much as I can for the moment. Almost all my cash is in silver now and soon I'm even thinking about going cash on my stocks to to go in silver even more.

But the one thing that is illegal and what I actually want is some firepower.

I did get a sweet deal on a AK from a guy in transport that does the eastern routes but my wife will kick me out when I buy something like that :)

trav7777's picture

with that much silver, you can get a couple of fresher wives

pazmaker's picture

Without a firearm, how are you going toprotect all that silver?

Shameful's picture

That's a tough one.  If you need it and don' have it then totally screwed.  If you use it and the cops find it then it's jail time.  It's the problem with making guns illegal, only criminals get to have them.

Though if you do get something like that, just don't tell's what my dad did for a lot of his purchases and it's legal here :)

eatthebanksters's picture

If you need to fire your gun to protect yourself, the last thing you should be worried about is the cops.   BTW, did you know that any cop who loses his/her house to foreclosure is never employable in law enforcement again ( I was told this by a California foreclosure attorney)?  Ya think they're going to be evicting people in the future? 

Shameful's picture


They are the enforcement arm of the system after all, so I have to vote yes.  Out to make sure there is revenue coming in and people keep paying their fees.  Sure there is some BS about solving crime but that is getting phased out so they can focus on what's important, hustling people for cash.

Ahmeexnal's picture

Why not rocks and bricks? They'll be as useful as your primitive bullets. When TSHTF, *they* will use directed energy to neutralize any threat. And Google will find your gold anywhere on this planet. You are all already mapped for serfdom.

snowball777's picture

Did I give you $0.65 at the BART station today?

Shameful's picture

Thats a good price. I've found Wolf in that ballpark, but not in stock last time I looked.  Link?

squexx's picture

Yes, but is it bullish for tungsten?!?

cougar_w's picture

There they are, talking openly about their man-dates again. I'm okay with acceptance and all that, but in this case I really think you should just stay in the closet, guys. Seriously.

Dr. Engali's picture

I wish they would stick to talking about their man-dates and stay away from the print button.

cougar_w's picture

Maybe they need a date, then. A lot of the time, technology is just there to fill the void in your life where love use to be.

Dr. Engali's picture

What are you suggesting? You seem to spend a lot of time here . :)

cougar_w's picture

Because --- IT'S FUNNY!

I bet Carlin had days like this, too.

snowball777's picture

The guy is named Brian Sack...if that's not a weak porn name, what is?

RobotTrader's picture

Hard to believe that the market is going to crash unless some of these clothing retailers start showing some weakness.

Dr. Engali's picture

I just junked you because all the cool kids are doing it.

Cognitive Dissonance's picture

I just junked you and Robo because you are doing it. Let's get an exponential thingy going here.

Dr. Engali's picture

Let's see...if I junk you and you junk robo...and robo junks me..... and so on,we could really fuck up the servers.

cougar_w's picture

Hey I'm gonna get all TSA on you and touch yer junk.

Dr. Engali's picture

Just so I'm are gonna touch my junk and then tell the TSA right?


MachoMan's picture

I'm securitizing all your junks, calling in nasa to run the numbers, paying off ratings agencies, and selling them to easy money that will eventually be backstopped by the united states government...  and making a killing doing it.

Cognitive Dissonance's picture


It figures the God Damn lawyer among us would make a killing on this. :>)

cougar_w's picture

But you junked him right? That's what matters here.

Hey, did you know you can even junk your own comments? That's for the emo crowd.

Dr. Engali's picture

I'll buy a hundred kajillion please.

fuu's picture

You do that while I set up the Junk Default Swaps. You can pick the Junk to put in each package and we can sell to HarryWanger.

Cognitive Dissonance's picture

Does that mean I should go long HarryWanger?

Dr. Engali's picture

I think you could go  long HarryWanger for a short period. Over the long haul the best play would be to short HarryWanger.

Djirk's picture

I am going to junk you more than J LO has in the trunk

Sudden Debt's picture

I junked you to Robo, but only because Dr. Engali did it first.

Like my dad used to say: "When everybody is kicking somebody that is on the ground, it's fun to join the group".


Cognitive Dissonance's picture

Plus it's good for morale. Pig pile on the toaster pastry endlessly waving his arms.

Dr. Engali's picture

I thought he was a rabid Mr. Potato head.

akak's picture

Leo Kolonasskiss, RobotTraitor and jdrose1984: automatic "flag as junk"s from me.

the grateful unemployed's picture

this was a $47 stock in 2006, and was recently at $15, down about 20% since the Feb hi (you might pull your head out of your 15min charts long enough to look around)  but as long as the ratio of the gold stocks to the equity indexes is positive, we won't crash. when the gold market leads the way, look out.

and no junk, not worth it