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Visualizing The Fed's "Increased" Transparency
As the world prepares to comprehend, in their own recency-biased manner, the minutes of the most recent FOMC meeting, we thought it worth a reminder of just how Fed communications have ballooned in the past 20 years. The first statement, issued on Feb. 4, 1994, was a mere 99 words. December's 'most important FOMC statement ever' was a stunning (record) 867 words - and even so Jon Hilsenrath managed to interpret and write on it in 3 minutes. As we noted earlier, the minutes tend to be a platform for even greater 'communication' - and notably are not the actual minutes of the meeting but a prepared annotation of what the Fed wants the public to know about the meeting. Transparency and communications, it would appear, has been transformed from clarifying to endless caveat-ing.
Since 1994... notice the 'kink' when unconventional policy began
and it's just gotten worse and worse as QEternity was launched.
All those words just to say - we'll buy it all forever...
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You know the more you write..the smater people think you are....Obama has all kinds of articles in his law review
Bullshit is always cheap but the results sooner or later destroy everything that was positive.
Less than 400 words:
A great deal has been written in the past about things that may or may not have been included as part of the minutes of the meetings of the FOMC.
For that reason, it is important that those who would interpret and re-interpret these minutes take this opportunity to reflect on not only the minutes themselves, but also on the meeting that the minutes summarize and thereby provide a window on.
After all, not every stakeholder in the domestic and the global economic and financial systems can attend these meetings or provide direct input into the discussion of the framework of policy-making, going forward.
Instead, these stakeholders rely on the service of the committee membership to undertake analysis of diverse issues that affect those who wish to participate in, and to benefit from, the conduct of business activities across the entire spectrum of human engagement.
The minutes from the meeting serve as a vehicle for the FOMC as a body, and for the individual members thereof, to create long-lasting documentation of the deliberations that occur at regularly scheduled times and places.
The records thus created provide stakeholders, analysts, historians, and policymakers with an opportunity to study, at their leisure, a summary of the thoughts and concerns voiced by discussants at these gatherings.
In addition, the minutes, when considered as a corpus, offer a reflection of the socio-economic fabric across the entire range of expectations and activities that characterize the global substrate, especially when viewed from a secular perspective.
Within the minutes themselves, one can find the expression of hopes and concerns, the articulation of viewpoints and beliefs that may be widely held or singularly championed, the retrospective summary of events that reached maturity and those still unfolding.
But perhaps most important, the minutes provide each of us with an occasion to celebrate the commonalities and the differences that inform our expectations for the future that lies ahead, and to embrace within ourselves the principles we hold most dear, the principles upon which we have built -- and yet shall buid -- both figurative and manifest visions of what might best be called our constructive Best Practices in this millenium.
Thank you, and we look forward to a new opportunity to share with you, after the next meeting, both the minutes themselves and also the insights that the invitations for consideration expressed herein articulate.
The text was all written weeks ago as a template with VARS, so that he could simply change the VARS according to the flavor, then publish. Predictability has it's benefits.
We need a black fed chairman who can keep it real. He only needs 4 words: you guys are fucked.
Need a few more:
"and by the way, stocks aren't overvalued"
You are getting a white haired, old woman, who will probably be on Oprah soon talking about her lesbian love life, so I think that's at least 2 out of 3 bases covered on the "reverse discrimination" scale.
Oh, and like Zero, she's an empty suit and a stooge/fall gal, so there ... decks all stacked for the Fall.
OK, so let's lay THAT graph over top of the S&P and see the correlation.
"As we noted earlier, the minutes tend to be a platform for even greater 'communication' - and notably are not the actual minutes of the meeting but a prepared annotation of what the Fed wants the public to know about the meeting."
Just another way of describing official high priest propaganda.
...and now with a woman named Yellen leading the committee!
I look for an up-tick in pseudo-high-brow verbiage using such phrases as, "go-forward tactics," IN ALL CAPS, AND IN BOLD!!!
You want transparency in monetary policy? Show me the real stock of gold held by the treasury and the rest of the western central banks!
If they want "transparency", why don't they tell us what types of "cash" they are accepting for reverse repo of treasuries - could it be that it is european commercial paper, european bonds and other garbabe at 100 cents on the dollar from primary dealers and money market funds? While we are at it, tell us why they openly support accounting window dressing at these same institutions at quarter end by providing loaned collateral via reverse repo that those institutions claim as their own (not to mention use it short the treasury bonds of our own country!).
In more honest times, these people would be hung.
Probably they are doing it for an accounting entry. They undo the trade at the prenegotiated price with interest in 24 hours. It is just another zero risk give away. Evereyone who can should do these repo trades. It isn't like you are actually buying anything.
The Fed's meaning of "Transparency" translates into the common English language as "Verbal Manipulation".
Remember, The Federal Reserve Institution is "The Wizard of Oz" and the Fed believes humans are equivalent to "Pavlov's Dogs"
The feds want to TRY to give the appearance of transparency but WE ALL KNOW it's a load of BULLSHIT! First rule of the Fed is DON'T TELL THE TRUTH about the big LIE!
Now that we are all crystal clear on that subject, what's the next topic?