This page has been archived and commenting is disabled.

January FOMC Minutes: Unanimous Vote, No Opposition To Fed's Relentless Hewlett Packard Policy (Full Redline Comparison)

Tyler Durden's picture





 

Some of the observations in this snoozer: observations on the lack of unemployment improvement, on the less than sufficient household spending, but most notably, the Fed notes the increase in commodity prices, yet still believes longer-term inflation expectations are stable. Notable is the deletion of the $75 billion per month deletion of the monetization run-rate, no reason is given for the change in the runrate purchases. And with Hoenig gone, every voting Fed president is now a docile little lamb. Lastly, there is no discussion anywhere of the Fed's only (third) mandate: that of getting the Russell 2000 to 36,000 in one massive flash smash (see IBM yesterday).

Release Date: January 26, 2011

For immediate release

Information received since the Federal Open Market Committee met in December confirms that the economic recovery is continuing, though at a rate that has been insufficient to bring about a significant improvement in labor market conditions. Growth in household spending picked up late last year, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit. Business spending on equipment and software is rising, while investment in nonresidential structures is still weak. Employers remain reluctant to add to payrolls. The housing sector continues to be depressed. Although commodity prices have risen, longer-term inflation expectations have remained stable, and measures of underlying inflation have been trending downward.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. Currently, the unemployment rate is elevated, and measures of underlying inflation are somewhat low, relative to levels that the Committee judges to be consistent, over the longer run, with its dual mandate. Although the Committee anticipates a gradual return to higher levels of resource utilization in a context of price stability, progress toward its objectives has been disappointingly slow.

To promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to continue expanding its holdings of securities as announced in November. In particular, the Committee is maintaining its existing policy of reinvesting principal payments from its securities holdings and intends to purchase $600 billion of longer-term Treasury securities by the end of the second quarter of 2011. The Committee will regularly review the pace of its securities purchases and the overall size of the asset-purchase program in light of incoming information and will adjust the program as needed to best foster maximum employment and price stability.

The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels for the federal funds rate for an extended period.

The Committee will continue to monitor the economic outlook and financial developments and will employ its policy tools as necessary to support the economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Charles L. Evans; Richard W. Fisher; Narayana Kocherlakota; Charles I. Plosser; Sarah Bloom Raskin; Daniel K. Tarullo; Kevin M. Warsh; and Janet L. Yellen.

Below is a complete redline comparison between the January and December Statements (pdf):

 

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 01/26/2011 - 15:19 | Link to Comment LoneStarHog
LoneStarHog's picture

The FED keeps stroking expecting an orgasm, too stupid to realize that they are IMPOTENT!

Wed, 01/26/2011 - 15:33 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

Fed officials were united in deciding to continue buying government bonds to boost the recovery, even as they acknowledged that the U.S. economy looks in better shape.

-Today's WSJ

"Contradictions do not exist. Whenever you think that you are facing a contradiction, check your premises. You will find that one of them is wrong."

     -Francisco d'Anconia 

Wed, 01/26/2011 - 15:51 | Link to Comment earnyermoney
earnyermoney's picture

There's no contradiction because buying treasuries is improving the economy. Obama said so last night, "The stock market has come roaring back..."

Wed, 01/26/2011 - 16:25 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

"The stock market has come roaring back..."

But at what cost? 

Wed, 01/26/2011 - 15:38 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Stop it, you are making my gold hard.

Wed, 01/26/2011 - 15:20 | Link to Comment entendance
entendance's picture

Unless you Americans take to the streets, this saga will go on.

 

Wed, 01/26/2011 - 15:22 | Link to Comment LoneStarHog
LoneStarHog's picture

Tonight is out, because American Idol AND Live to Dance are airing.  Americans will be too focused on choosing which to watch, since they are on at the same time.

Wed, 01/26/2011 - 15:26 | Link to Comment Mike2756
Mike2756's picture

lol, maybe that is the key, have a media blackout, shutdown all iphones! egads, the horror!

Wed, 01/26/2011 - 15:38 | Link to Comment crosey
crosey's picture

Wow....the SOTU hoopla last night, American Idle, and Dance Fever tonight....only one way to go....UP!

Bring out the eight ball and let's get this party started.

Wed, 01/26/2011 - 15:28 | Link to Comment hambone
hambone's picture

I'm expecting one of you "foreigners" to get the party started here for us...perhaps due to ongoing US military and financial support of dictators and despots in N. Africa, Middle East, Arabia, or one of the "stan's"?

Wed, 01/26/2011 - 16:15 | Link to Comment Pure Evil
Pure Evil's picture

You can take to the streets all you want, won't do any good.

Look what happened to all the illegal, ahem, undocumented, tax paying, hard working aliens back in 2005.

Took to the streets demanding that they be legitimized for all the welfare they were receiving. Next day, nada happened. Illegal in 2005 and still illegal in 2011.

There's two surefire ways to stop the insufferable saga, but, if I happen to mention either one I'm sure to be labled a terrorist and guaranteed a visit from the ugly cunt that runs DHS.

Wed, 01/26/2011 - 15:20 | Link to Comment HarryWanger
HarryWanger's picture

"Nobody voted against the insanity" simply because it's not insane. It's obvious we need to continue the current programs to maintain a sustainable economy. We're getting there but not yet.

Wed, 01/26/2011 - 15:22 | Link to Comment NOTW777
NOTW777's picture

where are we "getting?" closer to hell

Wed, 01/26/2011 - 15:22 | Link to Comment Id fight Gandhi
Id fight Gandhi's picture

Extend pretend. Fed gets to buy the stock market more. Because somehow they think that equals the economy.

Dow 12000 and unemployment is what? Housing is what? Debt is what? Cost of everything is what?

Junk away.

Wed, 01/26/2011 - 15:30 | Link to Comment HarryWanger
HarryWanger's picture

You will see a very nice unexpected surprise in employment numbers for January, especially the headline unemployment rate. Read an excellent article over the weekend that detailed, based on factual numbers, why we will see a much improved headline rate this month - in the upper 8 to 9% range. 

Wed, 01/26/2011 - 15:34 | Link to Comment HoofHearted
HoofHearted's picture

Um...is that headline going to be 8-9% because more people are falling off the rolls of the first 26 weeks and going into some secondary type of transfer payment?

Wed, 01/26/2011 - 15:34 | Link to Comment sodbuster
sodbuster's picture

What flavor of kool-aid do you prefer?

Wed, 01/26/2011 - 15:38 | Link to Comment alien-IQ
alien-IQ's picture

he's obviously partial to that special Jonestown blend.

Wed, 01/26/2011 - 15:43 | Link to Comment HarryWanger
HarryWanger's picture


"Unemployment, as measured by Gallup without seasonal adjustment, remained at 9.6% in mid-January, the same as at the end of December. This marks a one-percentage-point improvement from 10.6% in mid-January 2010.

This suggests a sharp drop in the seasonally adjusted unemployment rate in January (although the timing and methods are different between the two surveys).

In January 2010, the BLS reported the unemployment rate as 10.6% (NSA) and the headline was 9.7% (SA). Gallup also reported the NSA rate at 10.6% for the mid-January 2010.

If the Gallup poll is even close, then the headline seasonally adjusted BLS number might be well below the 9.4% reported last month."

Wed, 01/26/2011 - 15:40 | Link to Comment hedgeless_horseman
Wed, 01/26/2011 - 16:13 | Link to Comment pazmaker
pazmaker's picture

Yes   Lowes is adding 10,000 part time jobs!!!!!   Great!!!

 

Just what we need ...more part time low paying jobs!

Wed, 01/26/2011 - 15:54 | Link to Comment Id fight Gandhi
Id fight Gandhi's picture

Read an excellent article? I had no idea! Ladies and gentlemen the expert has arrived. Glove clap.

U3 is a bullshit number. U6 is better measure. Also the labor participation rate.

We need 125k jobs created on the bullshit jobs report every month just to pace population growth. Anything less is job loss.

Wed, 01/26/2011 - 16:17 | Link to Comment pazmaker
pazmaker's picture

delete post

Wed, 01/26/2011 - 17:22 | Link to Comment JP McManus
JP McManus's picture

...based on factual numbers...

 

Do you normally read articles based on fictitious numbers?  Imaginary numbers?  Are you trying to determine the square root of negative numbers and use them in your analysis again?

Wed, 01/26/2011 - 15:24 | Link to Comment DB Cooper
DB Cooper's picture

Let's face it they've done a shitty job before, during and after the crisis.  Their mandates are stable prices and maximum employment and we have whipsawing prices and only maximum employment in TBTF banks.

Wed, 01/26/2011 - 15:24 | Link to Comment NOTW777
NOTW777's picture

we are getting closer to more food riots and innocent people suffering from the fraud and corrupt leadership

Wed, 01/26/2011 - 15:25 | Link to Comment Confused
Confused's picture

I junked you. Not simply because I disagree. But because its been proven this path leads to ruin. 

Wed, 01/26/2011 - 16:42 | Link to Comment Confused
Confused's picture

I enjoy the drive by junk. At least own up to it. 

Wed, 01/26/2011 - 15:34 | Link to Comment alien-IQ
alien-IQ's picture

Harry it is actually the definition of insanity to do the same thing over and over and expect different results. The money printing/QE plan has done nothing to help the overall economy or unemployment which in a country where 70% of the GDP is based consumption does not lead to recovery because a 17% unemployment rate will not consume anything other than essentials such as food and fuel whos prices are rising due to the money printing/QE policies...so please... sell crazy elsewhere, we're all stocked up.

you fucking fascist.

Wed, 01/26/2011 - 15:27 | Link to Comment DavidC
DavidC's picture

I'm sorry Harry, but what sustainable economy? Printing money like there's no tomorrow? The Fed buying almost any asset it can get away with? the Fed buying in only-just-released Treasuries? The Fed CHANGING its rules so that any losses on ITS Treasury bond holdings become the liability of the Treasury? Unemployment stuck around 9 1/2 per cent. Come on.

Rosie had a very good piece a few days back on why this is bear market rally and not a bull market (compare now with 15 years ago, for example).

DavidC

Wed, 01/26/2011 - 15:28 | Link to Comment faustian bargain
faustian bargain's picture

It's obvious we need to end the current programs, which are inherently unsustainable. We're getting nowhere. The mounting debt and persistent unemployment is pretty clear evidence that continuing on the same path is indeed insane.

Talk about not seeing the forest for the trees.

Wed, 01/26/2011 - 15:33 | Link to Comment HarryWanger
HarryWanger's picture

Please see my post about employment above.

Look, these measures take time. You can't turn the economy on a dime, it's a much slower process. I wrote on this forum in the summer that the economy was turning very, very slowly. Improving but a long slog. There is no evidence to contradict that right now so the measures are still warranted.

Wed, 01/26/2011 - 15:42 | Link to Comment Dr. Porkchop
Dr. Porkchop's picture

You can't turn the economy on a dime?

Oh, I don't know, the economy did a pretty little 180 degree fucking jig on a dime in 2008.

Wed, 01/26/2011 - 15:49 | Link to Comment DonnieD
DonnieD's picture

So what's your "time" frame? We're adding 1.5 trillion a year waiting for your printing/spending induced economic orgy to take place.

Wed, 01/26/2011 - 16:02 | Link to Comment faustian bargain
faustian bargain's picture

No evidence??? I guess if you keep focused on the stock market, sure.

Your post on employment is silly. The Shadowstats rate is still at about 23%. U-6 is at about 17%. Little dips in the numbers do not a recovery make.

http://www.shadowstats.com/alternate_data/unemployment-charts

Wed, 01/26/2011 - 15:28 | Link to Comment Robot Traders Mom
Robot Traders Mom's picture

You are a fucking dipshit Wanger. All you talk about is your fictional home decor store that has never done better and how great the economy is. Now you are admitting the FED is pumping it. Fuck you and your gay store. Troll.

Wed, 01/26/2011 - 15:54 | Link to Comment alien-IQ
alien-IQ's picture

you've got me laughing so hard it hurts. brilliant.

Wed, 01/26/2011 - 15:59 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Harry sells Mexican and Chinese made urinal cakes.

His latest attempts to boost sales is a line of flourescent, glow-bright urinal cakes, for the developing world, when the rest room is dark due to electricity brown/black outs, and you need a point of reference to aim.

Wed, 01/26/2011 - 16:18 | Link to Comment DonnieD
DonnieD's picture

He's either straight out of One Flew Over the Cuckoo's Nest or he's employed by the Fed to troll the internet and convince people that the Fed is not financially raping them and their children. Tough gig. I hope he is paid well.

Wed, 01/26/2011 - 15:34 | Link to Comment Rogerwilco
Rogerwilco's picture

We're getting there but not yet.

Whadda ya mean "we", paleface?

Here's a happy tune you can play on your way to "there":

http://www.youtube.com/watch?v=jffsG0VR4Gw

Wed, 01/26/2011 - 15:42 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

You say we are in a recovery all the time, but when we question the FOMC mintutes, all of a sudden you say we are not there yet.  You and Obama holding hands right now or what?

Wed, 01/26/2011 - 21:47 | Link to Comment Phaethon
Phaethon's picture

I logged in just so I could junk this.

Thu, 01/27/2011 - 07:19 | Link to Comment oh_bama
oh_bama's picture

fully agree with you. People are way overly scared right here. They don't really understand what "risk" is.

 

We certainly need to continue QEs.

We are certainly getting there

More Americans retired early than any other time in history!

More Americans are in graduate school and getting ADVANCED degrees than any other time in history!

Recession has been over LONG AGO.

Unemployement is GETTING LOWER and LOWER

INFLATION is NOT EXIST (prices in food FLUCTUATE ALL THE TIME!!)

 

Hehe..

Tomorrow is another POMO day!! Wahahahhahahha~~~

Wed, 01/26/2011 - 15:20 | Link to Comment Id fight Gandhi
Id fight Gandhi's picture

Blow me. I'm shocked.

Wed, 01/26/2011 - 15:21 | Link to Comment 101 years and c...
101 years and counting's picture

"Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. "

0-2.

 

 

Wed, 01/26/2011 - 15:21 | Link to Comment DavidC
DavidC's picture

"...will employ its policy tools as necessary to support the economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate".

One thing's for sure, they don't understand the exponential function. Unless it's for hitting the zero key on their 'non-printing' press.

DavidC

Wed, 01/26/2011 - 15:22 | Link to Comment Ludwig Van
Ludwig Van's picture

 

miss Hoenig

 

Wed, 01/26/2011 - 15:34 | Link to Comment I Am The Unknow...
I Am The Unknown Comic's picture

yes I do, and I'm glad they let him live!

Wed, 01/26/2011 - 15:35 | Link to Comment TruthInSunshine
TruthInSunshine's picture

"As one makes their bed, so they must lie in it."

 

01-26 14:19: FOMC says although commodity prices have risen, longer term inflation expectations stable, underlying inflation trending down

Hopium & Unicorns! Inflation is "trending down," according to the FOMC and Herr Bernank!

If this is "inflation trending down," God help all if they ever acknowledge inflation - that is, if the FOMC and Federal Reserve haven't been burned to the ground, by angry mobs, by then.

Wed, 01/26/2011 - 15:22 | Link to Comment Prof Gulliver
Prof Gulliver's picture

In other words, more free money from Uncle Ben. QE forever. There is no risk. Infinite Bennie Bux will backstop until infinity.

Wed, 01/26/2011 - 15:24 | Link to Comment HarryWanger
HarryWanger's picture

No, it's not "QE forever". This is the program they announced in November and are simply following through with it. What did you expect that they would suddenly say they would end the program? There was no cause for them to do so.

Wed, 01/26/2011 - 15:30 | Link to Comment DavidC
DavidC's picture

Certainly less cause for them to do so if the economy is recovering. Except it's not.

Here in the UK yesterday, for example, expected GDP growth + 0.5%, actual -0.5%. yes, I know it's not the US, but then there's less obfuscation of the data in the UK.
DavidC

Wed, 01/26/2011 - 16:07 | Link to Comment Id fight Gandhi
Id fight Gandhi's picture

And the uk and eurozone rally today. Makes sense Huh? One more negative quarter and they have a recession. Should be another rally right?

Wed, 01/26/2011 - 15:31 | Link to Comment faustian bargain
faustian bargain's picture

Except for the fact that the currency is unsound and getting less and less stable, not to mention the fact that the economy still has a lot of contracting left to do, to deflate the massive FIRE bubble created by the Fed.

Wed, 01/26/2011 - 15:39 | Link to Comment earnyermoney
earnyermoney's picture

The clock's ticking on the current program. Now that BB, Turbo Tax Timmy, Obama, the MSM and you equate ecomonic recovery and rising stock indicies, it's obvious to me that hints of additional QE measures will appear in the WSJ toward the beginning of the 2nd quarter.

Wed, 01/26/2011 - 15:25 | Link to Comment raya123
raya123's picture

Until the QE creates enough inflation to damage profit margins, causing the recipients of the free money to invest in places other than general equities.  Will happen soon enough.

Wed, 01/26/2011 - 15:23 | Link to Comment HarryWanger
HarryWanger's picture

And consistent with every FOMC announcement, you'll see a quick pull back then buyers come flocking in again to run much higher into the close. 

Wed, 01/26/2011 - 15:32 | Link to Comment Commander Cody
Commander Cody's picture

Inciting less these days?  Fish not biting the hook?  Don't Fight the Fed!  Party on!  Wash, rinse and repeat - until the flow stops?  BTFD.

Wed, 01/26/2011 - 15:33 | Link to Comment DavidC
DavidC's picture

Yes, but which buyers? Not retail, that's for sure.

The market goes up on very light volume, selling comes in and the volumes go up. Insider seller to buyer ratios up through the roof, as described by Tyler (DIV/0!). Funny ramps at the end of the day. Flash dashes in stocks such as IBM. Etc, etc.

DavidC

Wed, 01/26/2011 - 15:53 | Link to Comment Prof Gulliver
Prof Gulliver's picture

Yes, the retail schlubs have missed the entire gigantous rally. They will get in about Dow 13.75K. Then it's time to get out.

Wed, 01/26/2011 - 15:25 | Link to Comment Burnbright
Burnbright's picture

I really do not understand why people keep thinking that the FED will ever stop printing money. It is the only thing the FED knows how to do, it is the only thing the FED can do, and it is the only thing that Congress wants them to do. 

You have to particularly dimwitted if you think that the FED will ever increase interest rates or force the US government into fiscal responsibility. The FED is a political tool for Congress as much as it is a vehicle for wealth confiscation from the poor to the elite. The US government needs inflation to collect more tax revenue. 

 

Wed, 01/26/2011 - 15:26 | Link to Comment Confused
Confused's picture

Wait, you mean Congress isn't a tool of the FED?

 

 

Thu, 01/27/2011 - 00:09 | Link to Comment Burnbright
Burnbright's picture

Does art imitate life or life imitate art? Who knows.

Wed, 01/26/2011 - 15:28 | Link to Comment TruthInSunshine
TruthInSunshine's picture

"The State of our Union is strong. Now please go and buy some useless shit made overseas. Thank you. God Bless you. And may God Bless Amerika."

Wed, 01/26/2011 - 15:34 | Link to Comment DavidC
DavidC's picture

Which is why it will, ultimately, fail.

DavidC

Wed, 01/26/2011 - 15:27 | Link to Comment bob_dabolina
bob_dabolina's picture

LOL! Look at the grains!

And sugar...look at that one.

Recovery bitches.

Wed, 01/26/2011 - 15:37 | Link to Comment gloomboomdoom
gloomboomdoom's picture

FOMC

Nothing But Hatred and Distrust for the Entire Human Race

"He's got the whole world...in his hands...Ben's got the whole-wide world in his hands"

End Timez...bitchez.

http://www.youtube.com/watch?v=BwVap8x64As

Wed, 01/26/2011 - 15:28 | Link to Comment mynhair
mynhair's picture

Stampede outta long bonds.

Wed, 01/26/2011 - 16:36 | Link to Comment satansanus
satansanus's picture

and into the arms of the invisible elephant, who immediately stops the yield run and sells them back when confidence meets shaky the clown!

Oh the circus is fun to visit but a nightmare to work there

Wed, 01/26/2011 - 15:28 | Link to Comment Misean
Misean's picture

Without the help of "the greater fool" it is becoming difficult to keep the ponzi growing. We must find ways to bring in the greater fools. We will continue splashing liquidity about until the greater fools bite.

Wed, 01/26/2011 - 15:29 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Wow! Crazy. Maximum employment and price stability. Talk about Double Speak...

So strange that the knowledge of the illegitimacy of the FED and it's collection agencies...not a peep from the MSM. Talk about a story waiting to be told, backed up by years of research by nutters...

ORI

http://aadivaahan.wordpress.com/2010/11/12/wisdom-for-warriors-3/

Wed, 01/26/2011 - 15:32 | Link to Comment alter ego
alter ego's picture

The "Fed" can't stop this madness and they won't.

We are right now in a race to hell.

From here the next step is a full blown confrontation against other nations. USA is not going to increase rates and China is not going to de-peg the Yuan, meanwhile inflation is riding to the 4 corners of the world like the one of 4 Horsemen in the Apocalypse.

However reality is just around the corner and you will see the pressure mounting against US Treasury Bonds. Just look to the Yields.

Interesting times my friends!

Interesting times indeed!

 

 

 

 

Wed, 01/26/2011 - 15:36 | Link to Comment gloomboomdoom
gloomboomdoom's picture

What is the trigger? The market has already priced in 1-2 trillion dollars of deficits and more QE.

Even Marc Faber is bullish on US treasuries.

Peter Schiff was wrong 2008-2011

The dollar is here to stay. Gold is dropping (I even bought at 1400k)

Wed, 01/26/2011 - 15:49 | Link to Comment alter ego
alter ego's picture

The trigger will be more subtle and no Market related.

Marc Faber is bullish in US Treasuries, because he can't be bullish in anything else expect commodities (food related) and energy.

What he is indicating subtly is that China is in a worst position than USA and this is why he changed his tone, however look to his opinion on Obama.

Wars like WWI and WWII started for things like this, even though standard history books don't say that.

The inflationary pressures around the world are just starting to mount, you will see in the coming weeks if crypto-revolutions like Tunisia and Egypt, are just exemptions or are just to become the rule.

Countries like China will rather start a war for resources before accept the protest from its citizens,  

Rampant Inflation is a highly toxic cocktail in this countries.

 

Wed, 01/26/2011 - 16:18 | Link to Comment bankrupt JPM bu...
bankrupt JPM buy silver's picture

@gloom

I'm assuming your entire post is sarcasm, and I will rule out the possibliby of you being semi to fully retarded.

Wed, 01/26/2011 - 16:29 | Link to Comment gloomboomdoom
gloomboomdoom's picture

Whatever floats your raft there...

Wed, 01/26/2011 - 15:37 | Link to Comment rubearish10
rubearish10's picture

Agreed but "right around the corner"? How wide is the turn? We could agonize in darkness for years given the power of the FED and the Global Bankstablishment.

Wed, 01/26/2011 - 15:48 | Link to Comment HarryWanger
HarryWanger's picture

I posted back in fall that the "right around the corner" is about 2 -3 decades away. Of course, the economy could (and probably will) be self-sustaining by that time so it may have no consequence whatsoever.

Wed, 01/26/2011 - 15:55 | Link to Comment gloomboomdoom
gloomboomdoom's picture

I agree with Harry...

WE can and will grow out of this, I actually listened to the SOTU and all the commetaries from both sides.

Both Republicans and Democrats are not going to cut anything. The reason I mention this is because I predicted the collapse of the GOP due to the Zionist(Compassion Conservative)/Libertarian (Pauls) divide. (the Trend is already there for a 3rd party)... It's coming.

Gerald Celente predicted years ago a 3rd party (Progressive Libertarian) by 2012... It think he will get that one correct just as he predicted Ross Perot in the 1990s.

Japan is at 200% debt-GDP. We have plenty of time to go.

The market can quit anytime it wants... but it won't. Not until the dollar quits working.

Wed, 01/26/2011 - 16:01 | Link to Comment alter ego
alter ego's picture

Every time in history Cassandras have been facing scepticism from the people around when bad news are brought up.

This sscepticism is not going to end and you won't see the truth if you don't want to.

My point is that everything can be debatable, even reality is subject to this.

When the time comes and glass and dreams are shattered there will be people that says.

Nobody saw this coming!

 

Wed, 01/26/2011 - 16:41 | Link to Comment razorthin
razorthin's picture

and you still didn't see this coming, because it hasn't.  but you wouldn't know that, because you don't even know what you ate this morning.

Wed, 01/26/2011 - 16:27 | Link to Comment rubearish10
rubearish10's picture

I gather your method to substantiate 2-3 decades is the recent blown bubble which began in the 80's? Good guess and probably true until it occurs sooner or later than that. Please counter if you have any further meaningful data. Kinda stupid hey?

Wed, 01/26/2011 - 20:49 | Link to Comment gloomboomdoom
gloomboomdoom's picture

Commodity Charts look Bearish to me

Wed, 01/26/2011 - 15:33 | Link to Comment Sudden Debt
Sudden Debt's picture

FED MEETS HEIDELBERG!!

Wed, 01/26/2011 - 15:35 | Link to Comment Deathtöngue
Deathtöngue's picture

The part about measures of underlying inflation continuing to trend downward really cracked me up. I don't even need to read Denninger to have the phrase "margin collapse" pop into my head the second I read that.

Wed, 01/26/2011 - 15:37 | Link to Comment Cdad
Cdad's picture

Nothing but sellers since about 3 minutes after the statement...all sectors seemingly.

EUR/USD is preparing to decide the whole shootin' match.  It looks like things are leaning towards the USD stud man [in a brawl between a drunk man and a drunk hooker] having his way with every living thing...as counter intuitive as that would be on anther day that Ben Bernanke decided he does not give a rip about anything but bankers.

Hooray!  Another day up the Banana Republic Tree.

[oh, and Cramer just said, "Who needs bonds."  Mark it.  He just f'n said that.  And this guy was a fund manager.]

Wed, 01/26/2011 - 16:40 | Link to Comment satansanus
satansanus's picture

the hooker allways get broken teeth laminates

Wed, 01/26/2011 - 15:41 | Link to Comment BlackSea
BlackSea's picture

75B run-rate deleted because the nuclear option will go into effect in 3 weeks with the  stoppage of the other program. $200B more...

Wed, 01/26/2011 - 15:49 | Link to Comment topcallingtroll
topcallingtroll's picture

I understand the feds thinking to some degree. They believe a lot of this commodity price rise is speculative and or a one off event as the dollar stabilizes at a new equilibrium. While i would like to think ben enjoys fucking over the chinese and forcing them to repeg or face riots that is not the feds primary intention but it is a very.satisfying side effect. If the recent.rise in commodities indicates speculation of future inflation or a one off dollar fx re adjustment then they must ignore it and watch the core. The core is more stable over time and less subject to.speculative.volatility. they could not care less if gold.goes to 3000 as long as core inflation is relatively.subdued. we have a huge output gap no matter.how you measure it. They will not stop until core inflation makes.them uncomfortable. All other stuff is considered rightly or wrongly either a one off event.as our dollar readjusts or just speculative expectations until it starts substantially moving the core. They also know that inflation is easier to stop than deflation. I can scare the crap out of you and make you stop spending. It is very hard to scare the crap out of you enough to force you to consume.

Wed, 01/26/2011 - 17:32 | Link to Comment hambone
hambone's picture

TCT - you just don't get it - we have stagflation in EU, US, JApan...but the Fed exports inflation to the third world.  Third world is now paying us back with even more stagflation.  Imbalances that are creating stagflation (rising prices of needed things, flat wages, flat to lowering price of assets owned, high US unemployment / slack) will not allow inflation (Fed measured...home and wage appreciation...not counting things needed) to take root in US but will be very bad in low wage countries...even could allow for US hyperinflationary event.

Wed, 01/26/2011 - 18:20 | Link to Comment skipjack
skipjack's picture

Yeah, because eating and driving to work every day is "one-off"...

What the theBenBernank forgets is that 80% of the US population lives paycheck-to-paycheck.  There is no slack in their budgets, and they cant print up peonbux to spend.  Same with municipalities and states; short of issuing IOUs, they have to balance their budgets just like households.  Guess what - the bad news is that income in all those categories is not increasing.

 

Take more out of the average Joe's paycheck for food and gas and he'll spend less elsewhere.  As in, max out credit cards and default.  Default on their underwater homes.  Remove the pitiful amount they have in 401ks and IRAs and use it for everyday necessities like food and gas and utilities.  If theBenBernank doesn't start paying attention to 80% of the country and stop the inflationary games and allow Grandma some return greater than 1% on her savings, then those 80% will be sticking it to the banks.

 

We saw this in 2008, and it's worse now.  More debt, higher prices in everything.  You think 2008 was a shitstorm ?  Buckle up folks, 2011 will be far, far worse unless they stop sticking it to Main Street.

 

Wed, 01/26/2011 - 15:54 | Link to Comment DJIA36000
DJIA36000's picture

Translation from the Fed: We're not letting this market drop more than 1% until May.  At that point, the federal reserver will re-evaluate whether it will let the market experience a pull-back.

Wed, 01/26/2011 - 15:56 | Link to Comment Robslob
Robslob's picture

Either way they win...either buy cheap crap from China or pay lots more for food and gas...

America meet Lose vs. Lose

Wed, 01/26/2011 - 16:04 | Link to Comment TruthInSunshine
TruthInSunshine's picture

But the rent will get cheaper, according to The Bernank, and 120" 3d HDTV Plasmas/LCDs will soon be $199 at Best Buy, so it's a win-win!

Wed, 01/26/2011 - 16:16 | Link to Comment Id fight Gandhi
Id fight Gandhi's picture

Sure those big screen tv boxes make excellent cardboard housing, so live rent free right? Just warm up with the glow of the amazing Chinese tv. Invest in an extra long extension cord.

Wed, 01/26/2011 - 20:12 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

1080s? Sweet. I need a good screen, for the Revolution Shall Be Televised. 

Wed, 01/26/2011 - 15:57 | Link to Comment Racer
Racer's picture

What happened to all those green shoots that should be huge plants by now?

Wed, 01/26/2011 - 16:01 | Link to Comment Robslob
Robslob's picture

Those plants have morphed into California Debtwood trees...a truly beautiful site....

Wed, 01/26/2011 - 16:03 | Link to Comment razorthin
razorthin's picture

hope you bought the PM dip

Wed, 01/26/2011 - 16:21 | Link to Comment Rogerwilco
Rogerwilco's picture

Like a good little bag holder? Keep that tail wagging, maybe there's a tasty Milkbone in your future.

Wed, 01/26/2011 - 16:38 | Link to Comment razorthin
razorthin's picture

over and out, DB.  i follow the charts and trade.  i don't fall in love.

Wed, 01/26/2011 - 16:10 | Link to Comment OMG
OMG's picture

QUOTE

DEAR JOURNALISTS OF THE WORLD,

You were intrigued by us when we took on the financial sector by attacking Visa, Mastercard, and Paypal as part of Operation Payback. Many of you became enamoured with us during Operation Tunisia and applauded our efforts. Some of you are now paying close attention to Operation Algeria. We know that we have gained support from even a few of you. Those few are hoping against hope that our unconventional methods will continue to have an effect on people, perhaps even the world. Those few admire us, if for no other reason than the fact that, in a world full of apathy, a world filled with people who don't even bother to read the information you painstakingly present, we are trying to do something. This intrigues you. At the very least, it inspires you to keep an eye on us, hoping we continue to take newsworthy actions.

You know that, whether you are risking your own safety - perhaps even your own life - to share the truth, or whether you are beholden to your dictators or your advertisers, unable to write anything they do not approve, we, Anonymous, are on your side and are fighting for you and your freedoms. You, the journalists, reporters, and bloggers. You, the newspapers, television networks and websites who hunt down and disseminate information. We are fighting for you.

Some of you have recorded milestones of our efforts. Some of you have reported upon them, and some of you have even participated in our fight. You are the press, and you have our gratitude.

We need your help now. From North Africa to Gaza, people are rising up and risking their lives to demand nothing more than basic rights, an end to the corruption, and a fair chance to progress in life. What the Western world is unaware of, and the Western media largely ignores, is the fact that the people protesting and the people dying in the Arab world are just like them. They have the same desire for basic freedoms, similar ambitions for themselves and for their family and friends, the same inherent intelligence and, the same keen sense of injustice as their counterparts in the West when oppressed.

Here is where we need your help. We ask you, the journalists, to bring to the rest of the world the humanity of these revolutions. What we are witnessing are not extremist acts that are committed by misled, ignorant people. Indeed, they are committed by intelligent, but desperate people - people willing to sacrifice themselves in order to inspire their fellow citizens to rally against their oppressors. The world needs human news. The world needs to know who it is that needs their support, and not just the number of casualties or the politics involved.

What we ask is simple. There are people protesting in Algeria, Egypt, Yemen, Albania, Libya, and many other countries at this very moment. Tell us who they are and what it is they want for their country and their people, for now and in the future. So many voices are raised in protest right now and all the world can hear is the noise. Tell us what the people are saying.

Some of you will ignore this message. It announces no new operations, as we are still focusing our efforts on Operation Algeria. This message issues no threats, as you are the press and are always safe from us. If you heed our request, however, it could make all the difference in the world, as it made a difference for the Tunisians to know that they were speaking and the world was hearing their message. Help us do this for Algeria, Egypt, and other countries where the people are imploring to be heard.

Signed,

Anonymous.

We are Anonymous.
We do not forgive the denial of basic human rights.
We do not forget those who assist the oppressed.
To the Tyrannical governments of the world... Expect us. UNQUOTE

Wed, 01/26/2011 - 20:11 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

Dig it. 

Wed, 01/26/2011 - 16:17 | Link to Comment trav7777
trav7777's picture

well, Gold just caught a bid...where is RoboTrader with the pretty kitco charts for us?

Wed, 01/26/2011 - 16:28 | Link to Comment gloomboomdoom
gloomboomdoom's picture

He got caught. Chicks w/Dicks

Banana Republics...

Wed, 01/26/2011 - 16:18 | Link to Comment AldoHux_IV
AldoHux_IV's picture

Overthrow the federal reserve?

 

Count me in, let me know when and where.

Wed, 01/26/2011 - 16:52 | Link to Comment tony bonn
tony bonn's picture

"...on the less than sufficient household spending..."

spend you fucking little consumer slime

spend till you become my debt slave

spend till you have mortgaged every last drop of your progeny's inheritance

spend till the vampire squid owns your soul

spend spend spend you little consumer shit....

Wed, 01/26/2011 - 18:09 | Link to Comment sudzee
sudzee's picture

Interesting but futile:

http://www.cnbc.com/id/41280740

Wed, 01/26/2011 - 20:09 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

This notion of dissenters in the FOMC has always been a head fake.  I don't know why they bother to pretend to vote. The substance of the statement is no doubt cleared verbally with the elite corps before it hits the wire anyway. 

Anymore, count me solidly in the End the Fed camp. I might even become a Tea Partier if they got serious about that as a goal. Rand Paul sounds interesting with the Audit the Fed stuff, or are he and his dad just an amiable distraction that amuses the higher ups to no end?  On the other hand, killing the Fed would require a fight to the death, and will never be permitted without some level of violence, which would be monetary in nature rather than involving weaponry or fisticuffs. More death threat type stuff to cow the masses - see what happens when you fuck with us kind of stuff.   

Wed, 01/26/2011 - 23:13 | Link to Comment ak_khanna
ak_khanna's picture

The politician­­s around the world are nothing more than auction items which can be sold to the highest bidder. They will do whatever they can for the lobbyist paying them the maximum amount of money or votes, be it the unions, the banksters, the richest corporatio­­ns or individual­­s. They are in the power seat to extract maximum advantage for themselves in the small time frame they occupy the seat of power.

The rest of the population is least of their concerns. The only activity they do is pacify the majority of the population using false statistics and promises of a better future so that they do not lynch them and their masters while they are robbing the taxpayers.

http://www.marketoracle.co.uk/Article24581.html

Do NOT follow this link or you will be banned from the site!