FOMC Statement, Redline And Wordcloud Comparison

Tyler Durden's picture

Nothing surprising in the statement.

One notable observation is that for the first time since the Japanese events, the Fed is finally recognized the impact of the Japan-induced contraction. Odd that all the morons who said Japan would be a boost to GDP growth now applaud the Fed's appreciation of reality.

The slower pace of the recovery reflects in part factors that are likely to be temporary, including the damping effect of higher food and energy prices on consumer purchasing power and spending as well as supply chain disruptions associated with the tragic events in Japan. 

Complete statement wordcloud for the really lazy ones:

June 22 FOMC word cloud:

And April 27 FOMC word cloud:

Full FOMC April to June redline comparison.

FOMC Redline

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ReallySparky's picture

Same stuff, different day.

Herd Redirection Committee's picture

Yep, its been like a slow-motion train wreck since the bailouts and QE started.  We went off the tracks, but we haven't quite hit the ground, never mind slid to a grinding halt.  The train is the US dollar, and the tracks, of course, are where we are headed.

Check out the latest from the Capital Research Institute "0% Interest Rates - Who Benefits?":


The other day I was discussing money with someone, and I mentioned that as long as interest rates are at 0% the fundamentals remain the same: expect rising asset, food, and commodity prices, a continually devaluing currency, high unemployment, and basically, speculation will continue to be rewarded over savings and investment.

I said that gold as an investment doesn’t make sense.  It just sits there.  It is not income-producing.  It is not a growing business, it is a shiny metal.  But it IS a store of value.  Its value relative to a hypothetical basket of goods will remain constant.  You can still buy a goat in Central Asia for one dinar, 1/8 of an ounce of gold, the same price (I have heard) as 200 years ago.  The tough part for people to grasp is why the dollar price of gold is steadily increasing.  Doesn’t that make it a bubble?  No, it doesn’t make it a bubble, it means the currency in which gold is priced is being devalued."

ElvisDog's picture

speculation will continue to be rewarded over savings and investment

I sure hope so. With wages stagnant, prices increasing, and risk-free returns on bonds basically zero, speculation is all we got.

NotApplicable's picture

But that still fuels the world of malinvestment, so you lose anyway as it makes all of the other areas you point out even worse.

The solution? Black markets, FTW!

TruthInSunshine's picture

Poor RoboMomoTrader; even aspiring sell-siders are complaining about Whole Foods aspirational pricing.

This won't end well for the ramped, risk-on bubble The Bernank has parlayed onto the bagholders.


Shit's getting real, yo.

YouTube - Whole Foods Parking Lot
ebworthen's picture

lol - nice video - what will all those Californicators do when the SHTF?

3-4 day supply of food if the trucks and trains stop rolling.

I can't wait to watch the highlights on T.V.

dcb's picture

real bs day, on the open we should have gone lower before breaking higher for the day, instead of going higher early. also hourly macd really going against the indexes. it's rather clear the buy order is in, because one week ago the open would have been a massive sell after an up day like yesterday. we have had the bottom folks, but I admit my charts say up until friday or monday at least. makes sense cause the put call ration need to be set so the big boys don't loose money and just make the fees.

camaro68ss's picture

dont worry, the bernake will make it all better

Cognitive Dissonance's picture

OK peons, the show is over. Nothing to see here.

Now let's all get back up on our hamster wheels and run as if the fiat monster is right behind us.......because it is.

chartcruzer's picture

this monster[s218820698]&disp=P

and this one too.[s218718281]&disp=P

and finally, the ultimate FED insult.[s235939273]&disp=P

 I am truly surprised by the response of the American people since the housing bubble popped (aka, the financial crisis).

Since the 'pop':

1) The FEd has crushed Interest rates destroying the safe incomes of savers and destroying incentives to save.

2) Not a single entity in the mortgage finance industry has been punished (even after layering on fraudclosure).

3) The value of the dollar has been taken to the wood shed - Inflation for food/energy has exploded (forget the fraudulent BLS data).

4) Planet Washington has loaded up on new debt (and continues to load up) such that default (in historic terms) is virtually assured.

5) There has been only a ripple of economic recovery (at the cost of $5T).  Real estate still falling.  Unemployment sky high. Poverty growing,,,,,,

Yet, after 3+ years, no one in the popular press is declaring that our economic system is broken.  The nightly news (even PBS) is the same fluff.  ZH is the only sanity.

When is the main stream going to declare that our economic canary died?  They (the FED) seem to now be dispensing hopium for a another recovery this fall..   They've got to be kidding.

How am I going to look my kids in the eye as Planet Washington melted down on my watch?  I/we older folks are handing them an economic pile of Sh****t.

Zedge Hero's picture

That why I started my own news network, because they all blow except for maybe Democracy Now! The rest is crap.

SeverinSlade's picture

Easy.  Mainstream media is owned by the same elites that own the Federal Reserve and all the other central banks.  Mainstream media should, instead, be called "Mainstream Propaganda."

Dick Darlington's picture

Usual FED "see no evil, hear no evil" bs. All the bad things are always transitory and "growth" will pick up in the coming quarters.

nope-1004's picture

That's what the Fed wants you to believe. 

101 years and counting's picture

of course QE3 is coming, but its not coming as soon as everyone wants to believe.

i'm with ZH on this one.  no QE3 while S&P at 1300 and oil over $90.


Caviar Emptor's picture

There they go again: Fed blames anyone and everything but it's own flawed policies for a poor outcome.

In other news: 

The world's millionaires continued to recover in 2010 from the recent financial meltdown, with their population and assets climbing back past the 2007 pre-crisis peak.

In 2010 the number of high-net-worth individuals in the world -- those with at least $1 million in investable assets excluding primary residences -- grew 8.3% to 10.9 million, and their wealth rose 9.7% to $42.7 trillion, according to the 15th annual World Wealth Report, compiled by Bank of America Corp.'s (BAC) Merrill Lynch Global Wealth Management and Capgemini Financial Services.

-Dow Jones News Service

Herd Redirection Committee's picture

Exactly.  The policies create winners and losers, the Fed just wants you to think they are trying to help the 'losers' of their policies, when in fact, they were designed to create the winners (the mega-wealthy) and losers (the rest of us who can't borrow at 0% interest rates and benefit from insider trading).

Check out the latest from the Capital Research Institute "0% Interest Rates - Who Benefits?":

"Now, if we see that we are on this road to currency destruction, then why is nothing done about it?  The solution is to raise interest rates, not to 1 or 2%, but to atleast 6%, the CRI’s rough estimate for inflation over the last 3 years.  Although the rationale can not be fully covered right here, right now, it is a human one.   The richest, most powerful people on the planet are also among the most highly leveraged.  Raising interest rates would significantly weaken the dollar value of their assets, as well as increase the ‘operating costs’ (interest on their debt) of their speculative activity.   To take it a step further, our analysis indicates that the crucial consideration may in fact be not the wealth of those at the very top of the pyramid, but the wealth of those immediately beneath them, the bureaucracy of the oligarchy, as it were.  The hands and feet of the ruling class, the ones who administer, supervise, and direct day-to-day operations at the world’s largest financial firms, energy companies, media firms, think tanks, military industrial complex, intelligence agencies and so on.  Their overlords promised them vast riches, and basically guaranteed them investment success by lending them money and telling them how to spend it (in a more honest time this was referred to as insider trading and was even considered a crime).  The overlords promised more than they could deliver  (that is, after all, what they are good at, and what keeps them in power) and now find themselves between a rock and a hard place.

The decision to sacrifice the US dollar was made, rather than financially ruining the ruling class’ bureaucracy.  Sorry America, and sorry savers!"

SmoothCoolSmoke's picture

Well played Ben.  You somehow got Gross to keep the QE3 hope alive via you could say jack at 12:30.

johngaltfla's picture

Everyone will be watching after 2 because we all, deep down in the dark recesses of our heart, enjoy the potential for a NASCAR like wipeout.

A Man without Qualities's picture

I'm waiting to see if Silver does it's usual moonshot when Bernanke opens his mouth.    

equity_momo's picture

Id just like a definition of "transitory" and "temporary" because my time on this planet is both those things and so is Bernankes tenure as Fed Chairman. Its such an arbitary term. What a cop out. We arent going to double dip , we are going to frickin body slam into an empty swimming pool. Doesnt matter if its the deep or shallow end , theres no water - the body gets messed up.

King_of_simpletons's picture

This is not a recession. It is a depression. We are being pumped with positive and ambiguous hope-filled messages to keep us from revolting like the Mid-East or Europe.

NotApplicable's picture

The definition you need is for the word 'sophist.' Then you'll know there is no such thing as a solid definition for any word they utter, EVER.

Well, there is one definition. It is the one that emerges in the mind of the listener as the speaker's context leads to certain implications. A good sophist never lies, but mixes words in such a way that the truth is all but impossible to separate from the lies. Also, any decent, deceitful statement is always defensible via the tool of plausible deniability, where they simply blame the listener for misinterpreting what they really meant denying all of the implications they've created.

Jim in MN's picture

Praise be to Nero’s Neptune
The Titanic sails at dawn
And everybody’s shouting
“Which Side Are You On?”
And Ezra Pound and T. S. Eliot
Fighting in the captain’s tower
While calypso singers laugh at them
And fishermen hold flowers
Between the windows of the sea
Where lovely mermaids flow
And nobody has to think too much
About Desolation Row

--Bob Dylan, 'Desolation Row', 1965

StychoKiller's picture

Day after day, day after day,
We stuck, nor breath nor motion;
As idle as a painted ship
Upon a painted ocean.

Water, water, every where,
And all the boards did shrink;
Water, water, every where,
Nor any drop to drink.

The very deep did rot: O Christ!
That ever this should be!
Yea, slimy things did crawl with legs
Upon the slimy sea.

"Rime of the Ancient Mariner"

alexwest's picture

The slower pace of the recovery reflects in part factors that are likely to be temporary, including the damping effect of higher food and energy prices on consumer purchasing power and spending

am I stupid or it seems that from GDP' standpoint
it doesnt matter what consumers spent their money on?
higher priced foods/gas or cheaper ipads and dildos..

GDP is money-based metric, not quantity one as far as I understand

anybody here to clarify?


swissaustrian's picture

Committee is the biggest word in the cloud - welcome to the socialistic states of America!

NotApplicable's picture

And of course, (like Greenspin) he has to keep referring to the committee, because as we all know, he has just one vote to counter the other 12, and that way, no one person can be blamed, even if they are the chair.

In other words, it is just another collective that allows those who comprise it to escape personal responsibility.

Upswaller's picture

"Socialistic" implies a degree of socialism, or a tendency toward it.

How about Socialist States of America?

lolmao500's picture

About Japan...

The Monju prototype fast-breeder reactor — a long-troubled national project — has been in a precarious state of shutdown since a 3.3-ton device crashed into the reactor’s inner vessel, cutting off access to the plutonium and uranium fuel rods at its core.

But critics warn that the recovery process is fraught with dangers because the plant uses large quantities of liquid sodium, a highly flammable substance, to cool the nuclear fuel.

The plant, a $12 billion project, has a history of safety lapses. It was shuttered for 14 years after a devastating fire in 1995, one of Japan’s most serious nuclear accidents before this year’s crisis at the Fukushima Daiichi Nuclear Power Station. Prefecture and city officials found that the operator had tampered with video images of the fire to hide the scale of the disaster. A top manager at the plant recently committed suicide, on the day that Japan’s atomic energy agency announced that efforts to recover the device would cost almost $21.9 million. And, like several other reactors, Monju lies on an active fault.

Even if the device can be removed, restarting the reactor will be risky, given its safety record and its use of highly toxic plutonium as fuel, said Hideyuki Ban, co-director of the Citizens’ Nuclear Information Center, a watchdog group, and a member of an advisory government committee on Japan’s long-term nuclear energy policy. The plant is 60 miles from Kyoto, a city of 1.5 million people, and the fast-breeder design of the reactor makes it more prone to Chernobyl-type runaway reactions in the case of a severe accident, critics say.

“Let’s say they make this fix, which is very complicated,” Mr. Ban said. “The rest of the reactor remains highly dangerous. And an accident at Monju would have catastrophic consequences beyond what we are seeing at Fukushima.”

slewie the pi-rat's picture

...because the plant uses large quantities of liquid sodium, a highly flammable substance,...

this came very close to unhinging my jaw!  didn't this stuff ignite on contact w/ air in chem class?  so, after a few minutes, i found this (Paste):

On December 8, 1995, a prototype fast breeder reactor, Monju, located in Tsuruga City, 350km west of Tokyo, was operating at 40% power. The Power Reactor and Nuclear Fuel Development Corp (PNC), a government controlled organization, operated this reactor. At 19:47 high temperature liquid sodium coolant at one of the three secondary heat exchangers started leaking through a broken thermometer sheath (designed by IH Company, OD: 10mm, ID: 4mm, Length: 150mm) on the piping and it ignited on contact with air. was a simple fire caused by the leakage of chemically reactive but non-radioactive sodium coolant. But due to the delay in shutting down of the reactor, 640kg of the sodium leaked in 3 hours and caused some unexpected damage by the fire and chemical reactions to the surrounding structure. (End Paste fr here: OEC - Fire by Sodium Coolant Leak at Prototype Fast Breeder reactor, Monju

StychoKiller's picture

Sodium and water (vapor) do NOT mix

NotApplicable's picture

Well, ain't this fuckin' awesome.

Is it so hard to design a fuel transfer crane that can't fall onto a reactor when a clutch breaks? Why didn't they make the shaft/chain/gear/whatever drive weaker than the stops on the crane rails?

Lemme guess, the probability of clutch failure is zero.

At this point I'm ready to start bitch-slapping anyone who tries to tell me that government isn't synonymous with the mafia. The only difference is cheaper suits.

YesWeKahn's picture

Do you notice that "inflation" is up.

VogonPoet's picture

"temporary, ... higher food and energy prices"

At first i was like 8/, then I LOL'd!

plocequ1's picture

Well, There it is. Rally on.

Seasmoke's picture

i thought NO two clouds were ever alike

Bartanist's picture

Ok, so is it me or did that statement say even less than usual.

So, why are those people still employed?

No actions, just: "oh heck, let's just wait and see what happens because nothing we do seems to help" ... even though we are supposedly in a recovery.


TruthInSunshine's picture

The redline between the past and present statement is an excellent resource, Zero Hedge!

slewie the pi-rat's picture

resource for chuckles.  i was lmao when i got done!

Cassandra Syndrome's picture

QE3 will slowly emerge like QE2 did, the statement in March 2010, when QE1 ended didn't announce in fanfair that QE2 was emerging on April 1st.

If they don't do QE3, the system crashes. If they do QE3, inflation heads towards 50%. Hobson's choice, but as Cantillon illustrated nearly 300 years ago the sudden expansion in money supply benefits only the initial recipients. So the sociopaths will gladly bathe in the freshly printed greenbacks while the peasants starve.

The only thing to stop this madness is one of the many wildcards to collapse the ponzi scheme on them by causing enough panic for mass withdrawals and liquidating "assets".



Zing's picture

We could see some major tankage at 2:15.  Up or down, it's still exciting.

Mortimer's picture

the silver chart looks like a lie detector test.  hmm?

Shell Game's picture

The COMMITTEE has your back peons. The COMMITTEE is doing everything it can, it is complicated and requires the COMMITTEE's full attention. The COMMITTEE believes the details are unimportant to you, above your head and only understood by the COMMITTEE.  The COMMITTEE appreciates your obedience.


Herd Redirection Committee's picture

LOL, exactly.  When you are in line at the grocery store hint to people about the higher prices, and say something about "Anecdotally, I heard that only the first recipients of the newly printed fiat benefit, and the rest of us suffer!"

I always act surprised when the cashiers tell me they 'still accept cash', or alternatively I offer to pay with 'computer points' (numbers that only exist on a computer screen).