Jon Hilsenrath's 589 Word Instanalysis Of The Fed Minutes

Tyler Durden's picture


It took the WSJ's Jon Hilsenrath, who one more time is modestly relevant in a world in which QE is implied until infinity or until the Fed loses all control of the money creation process, 12 whopping minutes to release a 589-word article analyzing the FOMC minutes. At least we know one of the people who had the embargoed version hours ago. We are confident he did not leak their content to anyone. Hilsenrath's prepared take: "A new fault line has opened up at the often-divided Federal Reserve: When to halt the bond-buying programs that are adding $85 billion a month of Treasury and mortgage securities to the central bank's assets. Minutes of the Fed's Dec. 11-12 policy meeting showed that officials were divided about when to halt the programs, with a few wanting to continue them until year-end, several others wanting to end the programs well before then and some wanting to halt them right away. While exposing the rift, the minutes left little clear indication which course the central bank would choose. In its official policy statement, it has been saying since September that it would continue the bond-buying programs until the job market substantially improves...  It is a hugely consequential decision for the Fed and likely the next big challenge for Ben Bernanke in what could be his final year at the helm of the central bank, where he has been chairman since 2006."

The rest is just as expected and can be read here, all of which is hollow rhetoric to telegraph a "responsible Fed."

All we can say is "good luck Fed unwinding this":

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Thu, 01/03/2013 - 15:27 | 3119630 Michaelwiseguy
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I feel like the so called elite of the world are my cattle animals, and they're there for my entertainment enjoyment. It's funny they never get any rest these days because they have to be constantly jumping through hoops to try to keep their monetary system from crumbling. They also have the most hilarious demonic characters in their fold for me to make fun of. If I didn't have them, I'd have to find different avenues of enjoyment to entertain me.

Thu, 01/03/2013 - 15:29 | 3119642 BC6
BC6's picture

Free Jon Corzine!!!

Thu, 01/03/2013 - 15:38 | 3119687 Landotfree
Landotfree's picture

Nothing is going to be unwind.  The Fed's job is to help sustain the system as long as possible (max potential upside) before the ultimate conclusion of the equation (max potential downside) takes place.   Once max potential has been hit, nothing the Fed can do than to sit and watch with everyone else.   The Fed's job is convince the sheeple that the helicopters are coming to save them.  

The system is barely generating new credit at this time, even after the mother of bailouts. 

Thu, 01/03/2013 - 16:04 | 3119795 economics9698
economics9698's picture

The Fed is leveraged 52-1 with low interest junk.  WTF do you ZH financial brainers think the MF’s will do. 

Thu, 01/03/2013 - 16:19 | 3119833 lemonobrien
lemonobrien's picture


Thu, 01/03/2013 - 17:13 | 3120016 trav777
trav777's picture

I would have to pose a question to the "hawks," um, wtf exactly is your solution to this basic MATH staring you assholes in the face?

I cannot fathom their even considering ending the programs when to do so would collapse the ENTIRE credit market immediately.  Seriously.  It'd be like that day that Reserve buck-broke except over with even quicker.

There isn't any money market anymore except for CB lending.  If they end these programs, the USG goes tits-up immediately and the entire monetary credit edollar complex seizes up completely.  They'd have to reverse course within an HOUR.  The major MM run in 08 was going to take us apart in about a day.  You better have paper cash if they try it.

Thu, 01/03/2013 - 17:59 | 3120155 Poor Grogman
Poor Grogman's picture

Smoke and mirrors for the sheeple to talk about.

Check out the BOE on it's "inflation target" if you want a really good laugh.

The whole charade actually IS the new normal...

Thu, 01/03/2013 - 16:16 | 3119825 John Bigboote
John Bigboote's picture

Why wouldn't they centrally plan the "minutes" like everything else? On a scale of difficulty this is a pretty easy one, and look at the impact on "perception". Gold tanking.

Thu, 01/03/2013 - 20:21 | 3120528 caconhma
caconhma's picture

People, you are really stupid fools.

Until now, the FED has done everything to destroy the US economy and welfare of American people. The FED promoted & rewarded fraud, dishonesty, inefficiency, perversion, welfare, and parasitism.

The FED was lying about almost everything and, now, you are ready to believe in their co-called “Dec. 2012 minutes?” WOW, you are imbeciles!

The FED just cannot stop printing fiat money. The US and EU economies will collapse in a matter of weeks after the printing stops. There will not be any money to pay all these various government employees and law-enforcement officers leading to economic collapse and anarchy. The USA is not a totalitarian country yet. It is not ready for an economic and social chaos.

Thu, 01/03/2013 - 15:52 | 3119749 azzhatter
azzhatter's picture


Thu, 01/03/2013 - 15:30 | 3119646 IvyMike
IvyMike's picture

Do you have a problem with a privation bank run for the profit of its privation owners?

Yep, privation and private mean the same thing, if you study your Latin etymology.

Private - privation - privilege - privity - privy
University of Hull

Isn't privation enterprise grand?

Thu, 01/03/2013 - 15:36 | 3119682 Joe Davola
Joe Davola's picture

So a bank is essentially an outhouse, them Latinos were quite prescient.

Thu, 01/03/2013 - 15:41 | 3119701 IvyMike
IvyMike's picture

Privation enterprise, it's the shi...defecationem!

Thu, 01/03/2013 - 15:47 | 3119727 LeisureSmith
LeisureSmith's picture

IvyMike. You're such a upshot knothole.

Thu, 01/03/2013 - 15:51 | 3119745 IvyMike
IvyMike's picture

Your wit has got you invited to my Castle Bravo for a friendly drink.

Thu, 01/03/2013 - 16:02 | 3119785 LeisureSmith
LeisureSmith's picture

To get Fall-Out drunk no doubt. And get into fistfights with angry Japanese fishermen.

Thu, 01/03/2013 - 16:07 | 3119805 economics9698
economics9698's picture

Mike are you a Greenbacker?

Thu, 01/03/2013 - 16:15 | 3119823 Joe Davola
Joe Davola's picture

My father was on Enewetak during the preparations for your namesake.

Thu, 01/03/2013 - 20:41 | 3120590 IvyMike
IvyMike's picture

That would have been quite the show.

Thu, 01/03/2013 - 15:39 | 3119694 GMadScientist
GMadScientist's picture

Easy there, Pvt.

Thu, 01/03/2013 - 15:44 | 3119708 sunaJ
sunaJ's picture

And when privation is in decay, retrograde, corrupted or whatever you want to call it, you get deprivation, or depravity (they are the same thing), which is what we have now.

Thu, 01/03/2013 - 16:01 | 3119779 IvyMike
IvyMike's picture

Privation and deprivation are identical. The prefix de- means 'thoroughly', 'completely.'

Thu, 01/03/2013 - 17:00 | 3119974 AlaricBalth
AlaricBalth's picture

Meaning reversal, undoing or removing.

Thu, 01/03/2013 - 19:18 | 3120368 IvyMike
IvyMike's picture


For deprivation:

The words based on deprive (with the prefix de-, 'thoroughly', 'completely') are recorded further back in English than 'privation', which had the same meaning (and is closer to Latin pr?v?re)...

Deprivation - Private - privation - privilege - privity - privy
University of Hull

Sorry, can't weasel out of it, dude.

Deprivation = privation.

By your own reference too, which you conveniently skipped.


2. Intensifying.

Thu, 01/03/2013 - 16:18 | 3119822 AgAu_man
AgAu_man's picture

Mkey, there is no such word as "PRIVATION". but ther is a word called "PRIVATIZATION".  :-)


Also, "PRIVATE" refers to status, whereas "PRIVATIZATION" refers to a process.  Subtle (too subtle?) but important distinctions.


Thu, 01/03/2013 - 16:37 | 3119888 AlaricBalth
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A state in which things essential for human well-being such as food and warmth are scarce or lacking.
The loss or absence of a quality normally present.

Thu, 01/03/2013 - 15:50 | 3119674 AlaricBalth
AlaricBalth's picture

Michaelwiseguy, it took you 3 minutes to write that 81 word comment. I think Tyler obviously leaked the post to you in advance.
Fess up.

Thu, 01/03/2013 - 16:03 | 3119778 Michaelwiseguy
Michaelwiseguy's picture

Timing is everything. Watching the antics of my barnyard cattle animals like the House of Representatives today is hilarious.

Thu, 01/03/2013 - 16:05 | 3119798 ReallySparky
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Could Michaelwiseguy = Jon Hilserath?  Inquiring minds want to know if Jon had also prepared his ZH comment beforehand.

Thu, 01/03/2013 - 16:30 | 3119865 GMadScientist
GMadScientist's picture

Would you stop inter-breeding them into complete mental defectives please?

Thu, 01/03/2013 - 16:25 | 3119849 hapless
hapless's picture

Not to mention the 1 minute it would take to read the post plus another 2 to click through and read the linked article.

Thu, 01/03/2013 - 15:38 | 3119688 Muppet Pimp
Muppet Pimp's picture

I can totally relate

Thu, 01/03/2013 - 15:49 | 3119730 Stuart
Stuart's picture

Geithner says he's leaving by the end of the month on the heels of the FOMC questioning their need to print.  I swear you just can't make this shit up!

Thu, 01/03/2013 - 15:56 | 3119765 DavidC
DavidC's picture

Did he say before the end of the month - I thought it was before March?


Thu, 01/03/2013 - 20:27 | 3120547 Half_A_Billion_...
Half_A_Billion_Hollow_Points's picture

Time for Kyle Bass to start up his "Finance minister"index, this time for the USSA

Thu, 01/03/2013 - 15:31 | 3119640 Mercury
Mercury's picture

Minutes of the Fed's Dec. 11-12 policy meeting showed that officials were divided about when to halt the programs, with a few wanting to continue them until year-end, several others wanting to end the programs well before then and some wanting to halt them right away.


Here comes the Night of the Long Knives.

In the meantime, the printing will continue until economic morale improves!

Thu, 01/03/2013 - 15:31 | 3119667 So Close
So Close's picture

Want to and Able to are two different things.   We are past the point.

Thu, 01/03/2013 - 15:41 | 3119676 Mercury
Mercury's picture

Apparently some committee members didn't get the stock/flow memo.

Thu, 01/03/2013 - 16:10 | 3119814 SAT 800
SAT 800's picture

Very good point; especially in Washington Think. I said, "I didn't want to"; see it's right here in the commitee records. Could be just covering your ass; protecting your image. As far as I can see discontinuing the feeding would have a similar effect to discontinuing the feeding of a one week old baby; but I don't know anything for sure.

Thu, 01/03/2013 - 15:30 | 3119653 Dr. Engali
Dr. Engali's picture

They will never ever stop printing...unless of course we discover a new energy source and this economy grows batshit crazy, either that or aliens  loan us a few trillion to fund a 1.5 trillion dollar deficit.

Thu, 01/03/2013 - 15:43 | 3119713 SpykerSpeed
SpykerSpeed's picture

The iPhone 6 will be able to power your car and home using that floating element from the Avatar movie.

Thu, 01/03/2013 - 15:53 | 3119755 Dr. Engali
Dr. Engali's picture

Unobtainium. ....What a ridiculous name.

Thu, 01/03/2013 - 16:30 | 3119866 GMadScientist
GMadScientist's picture

We have yet to discover Reallyhardtofindium (tm)

Thu, 01/03/2013 - 16:47 | 3119929 fonzannoon
fonzannoon's picture

So they want to end the same program they just doubled down on. Sounds good.

Thu, 01/03/2013 - 20:02 | 3120481 sschu
sschu's picture

They will never ever stop printing

Since they cannot stop, it seems to me they are starting to believe they are not printing enough.

So thinks AEP, this may be their only chance to get out of this mess.  

I expect a "decent" economy for about 2.5 years.  Summer/fall of 2015 will be a replay of 2008.  Except this time there is no one to backstop the Fed.

Txs, sschu

Thu, 01/03/2013 - 15:30 | 3119655 TheSilverJournal
TheSilverJournal's picture

Interesting to see the 10 year bond sell off as equities fall...

Thu, 01/03/2013 - 16:44 | 3119909 Canadian Dirtlump
Canadian Dirtlump's picture

Interesting to see silver get fucking gang raped out of nowhere. I should go buy some more before I commit a random act of violence.

Thu, 01/03/2013 - 16:49 | 3119937 TheSilverJournal
TheSilverJournal's picture

Oh get your head on your shoulders. If you can't handle this little swing, how are you going to be able to handle a world without fiat and everyone around you freaking out because their life savings are wiped away and government can no longer print up resources to save the day?

But yes, you should probably buy some more.

Thu, 01/03/2013 - 15:30 | 3119656 blindman
Thu, 01/03/2013 - 16:13 | 3119820 AGAU
AGAU's picture

Stop Ben,.....Stop.....Stop.......will you stop Ben?

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