Here Is How The World's Biggest Bond Funds (And Others, Just Not You) Get Advance Notice Of What The Fed Is About To Do

Tyler Durden's picture

Reuters has just released a stunning special report detailing how the Fed leaks all important, non-public, and ever so material, information to private parties. From the report:

On August 19, just nine days after the U.S. central bank surprised financial markets by deciding to buy more bonds to support a flagging economy, former Fed governor Larry Meyer sent a note to clients of his consulting firm with a breakdown of the policy-setting meeting.

The minutes from that same gathering of the powerful Federal Open Market Committee, or FOMC, are made available to the public -- but only after a three-week lag. So Meyer's clients were provided with a glimpse into what the Fed was thinking well ahead of other investors.

His note cited the views of "most members" and "many members" as he detailed increasingly sharp divisions among the officials who determine the nation's monetary policy.

The inside scoop, which explained how rising mortgage prepayments had prompted renewed central bank action, was simply too detailed to have come from anywhere but the Fed.

A respected economist, Meyer charges clients around $75,000 for his product, which includes a popular forecasting service. He frequently shares his research with reporters, though he kept this note out of the public eye. Reuters obtained a copy from a market source. Meyer declined to comment for this story, as did the Federal Reserve.

By necessity, the Fed spends a considerable amount of time talking to investment managers, bank economists and market strategists. Doing so helps it gather intelligence about the market and the economy that is invaluable in informing the bank's decisions on borrowing costs and lending programs.

But a Reuters investigation has found that the information flow sometimes goes both ways as Fed officials let their guard down with former colleagues and other close private sector contacts.

Frankly, we stopped right there, very much disgusted that we have been proven correct yet again when we asked rhetorically if "Bill Gross just confirmed on live TV that he has an "advance look" at non-public fed data?". Now we know how it is that Bill Gross knew all too well that the Fed would lower its GDP expectations to 2% three weeks ahead of the minutes release. It also explains why PIMCO is ever so precise in going on margin in purchasing either bonds or MBS.

Fuck it.

This is beyond disgusting, but that is to what this bullshit country has devolved: leaking the most important decisions made on "behalf of the middle class" so that a few multi-billionaires can make a few extra soon to be worthless dollars.

We will indicate if and when Pimco goes on margin next when the Total Return Fund posts its holding distribution next in mid October, telegraphing what the Fed has told it about the November FOMC meeting, but frankly at this point it is irrelevant. It is now obvious that the Fed realizes all too well that all is lost and just feeding its wealthy clients (that's right, these people are the Fed's CLIENTS) the last remaining scraps before it pulls the hyperinflation switch.

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Azannoth's picture

Where is the Congressional investigation ? or am I being naive

LostWages's picture

They left town just in time.  Getting re-elected is more important than the country's problems don'tcha know.

themosmitsos's picture

Tyler, sooo, how do you really feel about this?

LeBalance's picture

Surface of Uranus and Yes.

HEHEHE's picture

Who do you think his clients are?

Cognitive Dissonance's picture

First qualification to be his client. Can afford to pay $75,000.

Last qualification to be his client. Can afford to pay $75,000 and willing to keep mouth shut.

Clearly someone in the second category leaks like Greenspan's bladder (so I hear).

unwashedmass's picture

anyone who is surprised by this is brain dead. our government & markets are now thoroughly corrupted.

buy silver. and hold on cause we're going







B9K9's picture

I think that it comes as a surprise to many, even those who are well versed in the failings of man-made institutions, that our government is at the center of an organized criminal syndicate.

It is now not a question of if, but of when; the whole thing is coming down. Frankly, the insiders are probably amazed that it has lasted this long. Credit control of essential mass media and expert manipulation of key psychological triggers.

The bigger question that remains is much the same as posed to the dog who finally catches the car: ok, so now what are supposed to do?

Cognitive Dissonance's picture

I think that it comes as a surprise to many, even those who are well versed in the failings of man-made institutions, that our government is at the center of an organized criminal syndicate.

Our social and political programming runs very very deep. Most of us have no idea how ingrained it is into our very fabric, this indoctrination which starts with our parents proudly teaching us what they were programed to believe. It then progresses through the 12 primary grades and out into society. For those among us who need or want extra lessons, there's always college and grad school, where we directly pay for our programming. And all of this is reinforced through our mass media and "free" press.

For myself, the realization came when my son turned 12 and I suddenly realized that I had crippled him for life simply by being a "good" father. I had taught him to be a good and industrious slave. That was the straw that broke this camels back. No longer did I wish to inflict my conditioning upon anyone else. This was where I vowed to wake up and never turn back.

We must all get to the point where we become willing, no desperate, to erase everything we think we know before we can begin to learn the things we need to know. The pain we feel during this process is not the learning but the un-learning. It's never easy to tear apart of very belief system.

Shameful's picture

Then there is the isolation that has to be pushed through.  On my journey I quickly realized friends and family would either not make it or not yet ready to make it.  So I had to keep my views largely to myself, or just be seen as crazy (With family I picked the crazy route).  Thinking as an individual has a certain amount of solitude built into it.  To me that was the hardest part, knowing that most would see me as mad if I told them the way I was seeing the world, even if they agreed with all the facts leading to my conclusions.

xenophobe51's picture

My brother and I know the feeling. We went through this whole "Chicken Little" phase where we tried our damnedest to get our friends and family to see and understand what is happening—and what's about to happen—to little avail. We've met with enough ridicule to realize that it's best if we just keep our traps shut and continue buying shiny, inedible metal (bitchez!). It's discouraging seeing everyone standing on the tracks, wondering why the ground is shaking, and unwilling to turn around and see the freight train coming up behind them. When we go to the bar, we've got nobody to talk to about this stuff but eachother.

Cognitive Dissonance's picture

Ignorance is bliss, thus the vast majority remain willingly and blissfully ignorant.

knukles's picture

Welcome to the fellowship.
There however comes a great deal of serenity after a period of time, born of comfort with one's own self, character that was unknown theretofore.  Importantly attached is a knowledge that one alone, is not powerful enough to change the world and as such, a degree of humility and peace that after some time becomes attractive to others.  It is at that point others shall begin seeking one's opinion and therein, the valued exchange of opinion and views begin in earnest. 
Do not fight the isolation.  Embrace it as a powerful learning experience, for ultimately we intuitively understand and are able to explain that which used to baffle us.

Cognitive Dissonance's picture

You have wonderfully explained the concept of "knowing", something that is extremely attractive to the lost and frightened. By fully, completely and without reservation accepting our isolation and rejection, we become infinitely stronger, thus setting up within what can only be called a "strange attractor", what others may call Karma or "presence".

Once we have passed several times through the heat of the flames of rejection and isolation, each time followed by a soaking in our own tears of frustration, will we be hardened by this tempering process. Only then will others seek us out for this inner wisdom. In our present condition, all we appear to the disenfranchised is walking talking bad news.

We must give up all thoughts of control. Only then will we be able to gain inner peace, thus removing once and for all the need or desire for control. This new inner strength will become self evident to all that pass. This is real power, the kind that comes from within, from our own willingness to suffer and grow. It can never be taken, borrowed or loaned. It can only be shared and freely given. 

i-dog's picture

"Welcome to the fellowship ....... Do not fight the isolation.  Embrace it "

+ heaps. Beautifully expressed.

aerojet's picture

Ha!  That's why I'm NOT teaching my kids to believe in these fairly tales!  I am a proud non-voter, and I will encourage my children to be ever skeptical of all systems.  I will also teach them that government is another form of RELIGION.

i-dog's picture

Ha! I think Obama junked you.

mudduck's picture

"It's not what you don't know that gets you into trouble, it's what you know for sure that aint true." Mark Twain. Might have even heard that quoted here recently in another post.

Cognitive Dissonance's picture

Might have even heard that quoted here recently in another post.

You might be referring to me. I used that quote at the very beginning of a two part article I posted here starting 08/31/2010

Ropingdown's picture

For stylistic reasons I prefer Will Rogers' language, "It ain't what ya don't know that usually gets ya, but what ya know that just ain't so."

1100-TACTICAL-12's picture

Great point CD, I do not believe I am programmed anymore, but once was well on my way. Until my parents divorced in my early teens & I was forced to see the world for what it truly is. Maybe you could together a quiz or something.....

Cognitive Dissonance's picture

Our programming and indoctrination goes well beyond "just" our beliefs about the economic and social systems.

For example, we "believe" there are diseases that make us sick, rather than understanding that we make ourselves sick. Or at least we make ourselves extremely vulnerable to sickness. And on and on and on.

trav7777's picture

This is just some bunk-ass shit here tho.

There are diseases which will make you sick even if you were previously in good health.  Reality trumps belief

Cognitive Dissonance's picture

Wow, nice to see you have been triggered to respond in such an angry way. I said.

For example, we "believe" there are diseases that make us sick, rather than understanding that we make ourselves sick. Or at least we make ourselves extremely vulnerable to sickness. And on and on and on.

Where do I say there is no disease or that disease won't make you sick because I don't see it? And please define "good health". Do you exclude mental health? Do our brains and our mental attitude, our state of consciousness as some would call it, have something to do with our health and our ability to remain healthy?

So you're saying someone who's severely depressed has the same ability to ward off illness as someone who is not depressed? Or that some people don't, and can't possibly, make themselves ill for a variety of reasons?

Rusty Shorts's picture

Good point, "diseases", ever wonder how man lived for a 100,000 years before the first "immunization shots".

cranky-old-geezer's picture

Medical/pharma industry psyops.  Promote lies, dumb people down, keep them in fear.   Just like government psyops. 

To find truth you have to go outside medical/pharma industry.

snowball777's picture

Generally in pain and for a much shorter lifespan.

breezer1's picture

you mean an ' international , not all that organized , criminal syndicate ?

ATG's picture


cranky-old-geezer's picture

... and vote more crooks in to replace them.

i-dog's picture

Good luck with that. How well has it worked for you in the last 100 elections?

Marla And Me's picture

This is what you have to look forward to ladies and gents:

When austerity trickles down to the cops, all hell breaks loose.  There is no solution without pain.  Will we rip the band-aid off or just slowly pull it and all the hair off... Prepare accordingly.


JR's picture

You're right, B9K9. This is more than a leak story, more than a breach of trust.  The Fed is simply an elaborate getaway car… a vehicle designed by a mob to be used to steal trillions from Americans.  How many times must it be repeated: the Fed uses control of the money supply to manipulate markets and reports, constantly pushing and pulling all U.S. financial policy to override legitimate supply and demand.

The Fed is owned by a few private bankers: it dominates the entire U.S. government (not the other way around), it operates in total secrecy and its owners and their friends, through their private Fed operations, have become the most obscenely wealthy people on the planet.  And one of the gang slips out with a few secrets.  Please, let’s keep our eye on the ball—the hijacking of America and the world.

Pedro's picture

Can't these be prosecuted for "Insider Trading" assuming somebody has the "cajones" to do it.  We have all known this crap has been going on.  No congressional investigation wil happen because it is not a republican or democrat at fault (they are both in on it-money takes precedence over party affiliation).   They go after each other, but, when the opportunity to protect the citizens presents itself, these weasels "weasel out".


Shameful's picture

It's not about cajones, they are united in criminality.  A person does not get to that level without breaking some laws.  That person goes to prosecute and the system eats them alive with their misdeeds.  I'm no fan of Spitzer but he was sniffing around the wrong tree and got nailed for it.  They simply won't let an honest man into a place where he could do damage.

My favorite example, Barney Frank.  Underage brothel being run out of his home.  The media starts and he comes out and threatens to pull down the system with him, Samson style.  They back off and it's business as usual.

Pedro's picture

I agree.  They are criminals covering their collective asses.  BTW, did all of this start with the Bill Gross slip the other day?

Slipmeanother's picture

Why is everyone so surprised. The problem is the understanding of what government is and how it occured then everything becomes clear. When man the hunter gatherer became a farmer he created fixed property and a surplus wealth flow from his activities. This attaracted predators to kill and steal his property and wealth. Eventually the predators worked out that its better to keep the man alive and just fleece him for as much as he can bear and by offering him protection. The predators then became government---the rest is just various permutations of the same old story line.

Dr. No's picture

Derived down to first principles.  Salute.

Cognitive Dissonance's picture

I suspect if someone were to conduct an in depth study of what has been said in the past by the likes of Gross and company, they would find there were little clues, call them slips of the tongue, that were all over the place and time. We're just beginning to notice and consciously look for them.

It's sort of like buying a new blue car. Suddenly you see that model and color everywhere.

Desenstematic's picture

Look at us...Jesus, all squabbling around, talking about how this or that is illegal, and that "those people" are criminals.  Like a crying kid in a school yard...are we this weak??  It's time to stop feeling so isolated, so alone in our sweet "knowledge" about whats really going on, and get something done.  Everyone is just trying to get ahead of everyone else..with their stupid ..silver...everything - all of us sitting alone with our lump of "wealth", cautiously looking out the window at whoever may come to take it. I am sick and disgusted with this lifestyle.

molecool's picture

Spot on - it's time to see those fuckers burn. Have you guys watched international news lately? Half of Europe was on the streets demonstrating against having to hold the bag for the bankster bailouts. To no avail of course - the elite owns the politicians and nothing but Europe in flames will change their resolve to milk the working class for its last breadcrum.

Cognitive Dissonance's picture

Sounds great. So tell me how you're going to round up 10,000 or 100,000 or 1,000,000 to start the party? I agree we must revolt. I've been advocating it for over a year in my articles and in dozens and dozens of my posts. We must push back. Are you going to do it alone or will you have help?

How are you going to get the ball rolling?

hamurobby's picture

Austerity would, thats probably why our gov chose qe instead.

knukles's picture


Mr. Gross' Dr. Freud speaking merely confirmed suspicions.
Or conspiracy theories as the Power Elite, their enablers, beneficiaries and propagandists would have derided. 

hamurobby's picture

I agree.  They are criminals covering their collective asses.  BTW, did all of this start with the Bill Gross slip the other day?


Im surprised we don't have a press release from Pimpco derailing these allegations...