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Fed, As Expected, Says Nothing New - Full Redline Comparison With September Statement
As we noted earlier, the Fed tweaked the language a little on the latest economic data but chnaged nothing on their plans for our 'great recovery':
- *FED SAYS HOUSING SECTOR SHOWS SOME FURTHER SIGNS OF IMPROVEMENT
- *FED SAYS U.S. HOUSEHOLD SPENDING ADVANCED `A BIT MORE QUICKLY'
- *FED REPEATS `EXCEPTIONALLY LOW' RATES AT LEAST THROUGH MID-2015
- *FED REPEATS IT WILL CONTINUE OPERATION TWIST THROUGH YEAR-END
- *FED TO KEEP BUYING $40B A MONTH OF MORTGAGE-BACKED SECURITIES
- *FED REITERATES `SIGNIFICANT DOWNSIDE RISKS' TO ECONOMY
Full statement link
Pre: 10Y 1.775, ES 1410.5, Gold 1701, EUR 1.2964
Below is the redline comparison with the last statement:
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Isn't buying mbs just bailing out banks?
Did any thinking person really believe they would say much different. Really?
(If so, I have a bridge to sell ... in the middle of some prime swamp land)
Can the sell-off continue now?
"Fed" rhymes with "red".
Coincidence?
yes, coincidence.
Rot(h) doesn't rhyme with Bund
...wait for it, wait for it, then BTFD!
Genius, isn't it?
We are paying these tools to rob us.
"...ECB President Mario Draghi has defended his bond-buying plan to ease the eurozone's debt crisis, telling German lawmakers that bond purchases won’t fuel inflation, jeopardize the bank’s independence or put taxpayer money at risk..."
http://www.telegraph.co.uk/finance/debt-crisis-live/9629680/Debt-crisis-as-it-happened-October-24-2012.html
Print, Super Mario, print.....
Mario: "It's all good."
Every time I see the dollar sign, I get excited, then when I see the 'g' I'm disappointed. I really wish you would make your avatar a different color or something.
really juicing the numbers these days going into the election
metals getting pounded down
EURUSD stablized at 1.30 right where they want it (as I've said for months)
stocks being propped up justs above MDA's
Gov stats heavily tweaked.
only thing screwing them slightly is reduced earnings just coming out
Yes but the sheeple don't understand that and even if they did the President would have to go along because he knows that we are one statement from the Fed away from total collapse.
Fed buys MBS.
Banks buy UST's with proceeds.
Rinse, repeat, day after day, month after month.
It is that easy to run a ponzi!
"I'll suck yours if you suck mine."
"... and then we'll both fuck the sheep! Let's roll!"
Should have had a question mark instead.
To answer your question. Yes, it was that easy to run the ponzi until now. Going forward however, the gig is up because everyone has found out just how they are staying afloat. Money is worthless and less and it won't buy anything of real value much longer. The trust is gone across the board and wheels are coming off. We're a few years into this now and the rest of the population in America and the rest of the global population have caught on.
This is THEIR LAST LEG.
dam i was all aquivver for nothin
and in related truthines... they're coming to take me away, hehe, haha, hoho...
Some people got all pissed about that song, but someone always does.
Need moar... this is not enuff anymore. We are paying for it anyhow. Give us mooaarr!
And just like that the selling pressure on Gold and Silver is lifted.
Not for long. I think another smackdown is coming soon.
Sorry... had to junk ya for posting while daydreaming.
FED STATEMENT:
"the pimpin wont stop, dont stop...
FUCK YOU BERNANKE..............
We all know they can't raise rates.
mitt romney says ben is a disaster for the country.....he says he will yank him and bring in the new paul volcker..i believe him....because he said so...........
If Mitt gets elected Bill Dudley will be his printer of choice.
apparently nintendo has come out with a new gadget that allows everyone to print money........this does not bode well for the job security of romneys candidate.....and in fact, this may be the real reason bernanke is stepping down..................
http://nerdreactor.com/wp-content/uploads/2012/02/3DS-It-Prints-Money-e1...
Bain's Staples will get the contract.
OK in that case the cheque is in my mouth and I won't come in your mailbox
<urge to kill rising>
Sure, Mitt wants to do that. He and his buddies are holding all the paper and they want to "earn" more on the debt notes. We are expected to work harder, longer, take it up the ass a few more times and satisfy them and their desire to "earn" more.
Fuck Mitt Romney and fuck the sheep that are stupid to believe money grows on trees and the party lasts forever.
Fed out of bulletts. Fuck You Bernanke.
DHS, IRS, DOT and all other agencies aren't
and that's that..
unlimited qe for as far as the eye can see definitely means gold should be down slighty. yup. WTF?
You're thinking logically again fonz....that's bad for your sanity in this environment. Infinite fiat means more fiat for the banks to suppress the price of gold. Eventually people will want to take delivery...that's when physical will break the paper grasp.
i should be thankful i have been given more time but wow it can really drive a guy insane...
insane?!?!?!? did somebody say INSANE!!!!!! HAHAHAHAH HOOOOOO HAHAHAHAH HOOOOOOOO WEEEEEEEEE!!!!!!.....shhhh.....i hear ben talking to me...............he is telling me something..............shhhhh............i hear him in my head............................he is saying......................NOOOOO!!!!.....STOP!!!...................NOT THAT!!!!!!!!!..................
Yep I was right....kito was the first to go.
;)
Yes, kito, you are absolutely Mother? Huh? Yes mother! Ok. Yes, I hear you. uh,,, you are right!
(eyes looking up and to the right)
fonz, i have told you time and time again, that unlimited qe wont make up for the deflationary tsunami coming........see this article:
http://theautomaticearth.com/Finance/us-hyperinflation-is-a-myth.html
and i plan to watch that flick, "surviving prosperity". i will let you know how it goes.......................
btw, have you thought about an avatar????????..... that paperbag thing doesnt cut it anymore.....we could hold a contest here on zh, and people submit url links of their favorite photo...you pick the one with the most up arrows........
I have always said I put a lot of stake in that deflationary argument. I do see massive inflation happening when the dollar gets upended by Asia/Russia etc. I think what is going on right now is a big mindfck. I want Romney to get in at this point so we can all finally see that it's the same crap. But they will make up some garbage and call it extenuating circumstances or whatever and it will go on and on. Like I said, sadly I fall into the camp that just sees this going on and on unless someone pulls the plug on the dollar overnight.
I will work on an Avatar. Will try to drum up some thoughts.
Avatars are over-rated!
Beatings will continue until morale improves.
Thank you Sir! May I please Mother? WHAT? Leave me alone mother. Uhm, where was I?
(gaze is sort of cranky and smiley like Jack Nicholson in 'One Flew Over the Cuckoo's Nest)
To paraphrase Gollum: "Bernanke, we hates it to pieces"
Kaminsky said easy money ended on TV. I guess we will see who is really in charge. Kaminsky or the Fed. My money is on the ankle biter Kaminsky being wrong again.
bullish or bearish?
bullish as they are going to pump the market until someone stops the ponzi and that ain't going to happen; not even with mittens although he may slow it down a bit.
that's like the last in a long line of compression shockwaves off the core slowing the final collapse of a giant star into a black hole...not long at all
Parsing the Fed tea leaves for signs from the dead......fiat.
Time. To. Ramp.
crooked assholes. period.
... --- ...
.... . .-.. .--.
... --- ...
-. --- - / -. --- .--
.. .----. -- / -... ..- ... -.--
'Treasury securities'....BWAAA HA HA HA HAAA!!
Any comments about Bears still shitting in the woods?
Fed to American Savers: we drink your milkshake.
BTW, is Mandy a tart or what? More make up than a bordello whore.
http://www.financialsense.com/contributors/antony-mueller/quantitative-easing-folly-or-method
What is central banking good for?
What, so we must ask, is central banking good for when it is not even able to guarantee a stable price level?
Why keep a quasi-dictatorial creature within the government body that operates largely outside of public control? Why hold on to an institution that more often than not has failed to provide full employment and price level stability? By these criteria the Fed has indeed been a failure. What then, we must ask is the true mission of central banking as one cannot calibrate accurately the effects of monetary policy on the real economy and price level? The answer is provided by the historical origin of central banking. As Rothbard and other authors such as more recently Lawrence White have shown, central banking grew out from the cooperation between the state and the big players of the banking sector. The deal that was struck said that the big banks will finance government and that the government won’t let the big banks go bankrupt. For that purpose a lender of the last resort was installed in the form of a central bank which would obtain the privilege by the government to produce unlimited amounts of fiduciary money.
Historically the scope of discretion was restricted by the gold standard at first, yet over time the various constraints have been removed step by step beginning with World War I. With the so-called Smithsonian agreement of 1971 the last anchor for the US dollar fell. At the day when President Nixon fully abandoned what was still left of the gold standard, the starting gun was fired for the escalation of the financial sector to grow into its current gargantuan proportions. In tandem with the expansion of the financial sector, government grew its public debt into its current colossal dimensions.
While central banks are effective as lender of the last resort and thereby to safeguard the big players of the financial system from going bankrupt, they are not only incapable of promoting economic growth, employment and price level stability, they are in fact the major perpetrators of the business cycle. Always under pressure to set the interest rate as low as possible, central banks provoke artificial booms which inevitably must result in a bust. The big players in the financial market can profit on the way up without fear about the downturn as they can rely on the central bank to bail them out.
In an academic paper Bernanke (2001) and his co-author argued explicitly that central bankers should not try to prick asset bubbles but stand ready to bail out banks and financial institutions when the bubble bursts. In his speech as a Governor of the US central bank on “Monetary Policy and the Stock Market”, Bernanke declared in 2003: “The ultimate objective of monetary policymakers is to promote the health of the U.S. economy by pursuing our mandated goals of price stability and maximum sustainable output and employment. However … monetary policy actions have their most direct and immediate effects on the broader financial markets, including the stock market, government and corporate bond markets, mortgage markets, markets for consumer credit, foreign exchange markets, and many others.” The message was well understood. The big players in the financial market could rest assured that their central bank would bail them out when a new episode of the lending spree began - the housing bubble. Operating as bailout machinery for the financial system, the US central bank has thoroughly infected the monetary system with moral hazard.
Thank you for the redlined documents.
Mean while in the UK it was reported orders for manufactured goods in September fell 10%, exports fell 17%. August M4 money supply lending -6.5%. More QE in November another £50bn.
We are so f***d.
Viagra Ben...every drug wears off and has side effects.
..fuk u
For Ben perfect time to reject third term. If economy continues to tank it will be his successors problem and fault. If economy improves in next year or two(doubtful), he can claim credit as top economics professor from Princeton, Harvard or Univ. of Tel Aviv. To remain as Fed Head is a no win situation since he has run out of effective options to also counter impact of fiscal cliff spending cuts and austerity measures sure to follow early next year. Shalom, Ben, you really did not enjoy the spotlight and were meant to be a Hairbrain Economist
And expect his successor to be the Yom Kippur goat chosen to be the neutered scapegoat to help deflect and cover up the true ownership of the international banking families who own and control the Federal Reserve’s central banking operation.
From the Reuters report: The Fed's policy-setting panel made no change in its plan to purchase $40 billion in mortgage-backed debt per month to push interest rates lower and spur a stronger recovery.
Why oh why do a bunch of PhD economists keep believing that low interest rates will spur recovery and reduce employment, when it is not happening? It is not working. It maybe made the recession 'not so bad' - who knows?, and it allows our disfunctional gubernmint to keep spending a lot more than it is taking in, but it ain't doing shit for unemployment, much less 'growing the economy'.
But they keep doing it. The classic definition of insanity comes to mind.
Or maybe they keep doing it to help the TBTF financial institutions, and the unemployed nobodies have nothing to do with it.
Nawwwww - that's being cynical, right?
Without the TBTF financial institutions there are no longer any other sectors or industries that have not already been sacrificed in the name of Global Economics and Competition (essentially for cheaper labor). So are you now arguing for not protecting at any cost the last remaining vestage of capitalism which is the financial sector? That is unAmerican, counter to the principles of freedom and American enteprenurial spirit of competition and greed. Are we cynical? Nawwwww
http://www.safehaven.com/article/27424/inexorable-money-supply-growth
In the U.S., the anemic pace of growth pervades throughout the economy. Initial jobless claims surged 46k last week, erasing the entire drop in the week prior. In addition, ninety three S&P 500 companies reporting earnings so far for the third quarter have shown that profits are down 0.5%. The sad facts are that GDP and earnings growth in America is just about flat. Therefore, the Fed has already placed interest rates at zero percent for the last four years and has caused M2 money supply to be up 7% YOY.
The strategy of governments and central banks is clear; lower interest rates and pump money into the system in order to re-inflate asset prices and releverage the economy. Although they have been very successful at debasing their currencies, they have missed a very key point. That is, an increase in money supply growth and inflation does not equate to an improving economy. And when taken to the extreme levels we see today, it instead leads to a protracted period of persistently weakening economic growth.
Money supply growth should never eclipse labor force + productivity growth. When inflation rises faster than GDP, malinvestments are created and asset bubbles form. That is especially true today as we see a tremendously-dangerous bubble being created in all the bond markets of the developed world. But what is also true is that government debt that is being systematically monetized by central banks is slowly destroying any confidence left in fiat currencies. As more and more credibility is lost in paper money, GDP growth will continue to decrease in real terms.
As long as governments continue to produce massive annual deficits that are purchased by their central banks, the global economy will continue to stagnate and inflation will increase. What is also true is that equity markets tend to rise over time in nominal terms because excess money creation lowers the value of currencies and raises stock prices. However, the increase in equity values seldom keeps pace with the rate of inflation. To accomplish the goal of achieving a real rate of return on investments after taxes and inflation are considered, history proves that can only be supplied by owning hard assets.