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Fed Tapers $10 Billion, Says Economy, Consumer Demand "Picked Up"

Tyler Durden's picture




 

Despite dismal data (or the potential for great escape velocity is around the corner data), major event risks, and a Treasury market that just won't buy the dream of recovery that they are selling; the Fed stuck to its tapering guns... with a consensus $10bn taper...

  • *FED TAPERS BOND BUYING TO $45 BLN MONTHLY PACE FROM $55 BLN
  • *FED: ECONOMY PICKED UP, CONSUMER DEMAND RISING `MORE QUICKLY'

Shifting from "the economy slowed due to weather..." to "consumer spending is rising more quickly" the Fed is in full consensus "everything's gonna be alright " mode. This leaves the Fed buying $25bn a month of Treasuries and $20bn of MBS each month and facing the tough reality that their trillions did not generate enough momentum in the US economy to overcome some snow.

Perhaps more curiously, Kocherlakota did not dissent this time around. Looks like continued tapering is no longer hawkish unlike... continued tapering?

Pre-FOMC: S&P Futs 1874, 10Y 2.66%, EURUSD 1.3865, Gold $1295

Here is the Fed blaming, what else, the weather:

Information received since the Federal Open Market Committee met in March indicates that growth in economic activity has picked up recently, after having slowed sharply during the winter in part because of adverse weather conditions

And here is the full redline comparison:

 

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Wed, 04/30/2014 - 14:03 | 4712905 Kaiser Sousa
Kaiser Sousa's picture

they lyin...

Wed, 04/30/2014 - 14:06 | 4712914 slaughterer
slaughterer's picture

STOCK MARKET BLAST OFF!  The economy is "picking up"  Wow, great!  Everybody is buying Teslas and iPads and drinking Starbucks.   Nuttin to worry about, cuz Aunt Yellen said so.  

Wed, 04/30/2014 - 14:08 | 4712940 max2205
max2205's picture

Churn baby churn

Wed, 04/30/2014 - 14:09 | 4712950 Xibalba
Xibalba's picture

#rigged

Wed, 04/30/2014 - 14:11 | 4712960 Timmay
Timmay's picture

So wait, how are they going to unload that balance sheet?? Oh yeah! MYRA, MYRA....

Wed, 04/30/2014 - 14:12 | 4712972 Obchelli
Obchelli's picture

Tyler Faster Cowboy then Hilthenrath?

No Way

Wed, 04/30/2014 - 14:17 | 4713010 outamyeffinway
outamyeffinway's picture

There's your emergency meeting, lie about GDP.

Wed, 04/30/2014 - 14:23 | 4713031 BaBaBouy
BaBaBouy's picture

SURE!!!
FREE Money Fiats For The politcos $ Billionares ...Van Gogh Paintings @ $1/2 Billion...
And NOTHING For The Middle Classes...

Keep On Going Bitchezzzzzzzz...

Wed, 04/30/2014 - 14:24 | 4713045 Pinto Currency
Pinto Currency's picture

 

Where they aren't tapering is their bond buying through Belgium:

http://www.zerohedge.com/news/2014-03-18/meet-brand-new-and-shocking-third-largest-holder-us-treasurys

Wed, 04/30/2014 - 14:54 | 4713248 Max Hunter
Max Hunter's picture

EUR/USD isn't buying the story..

Thu, 05/01/2014 - 08:10 | 4714885 rainingFrogs
rainingFrogs's picture

true dat. 

And it is clearly a fantasy that Belgium is covering only the $10B/month delta.  From the US Treasury's MAJOR FOREIGN HOLDERS OF TREASURY SECURITIES report, here is Belgium's UST holdings from August 2013:

Aug=166.8
Sept=172.5
Oct=180.3
Nov=200.6
Dec=256.8
Jan=310.3
Feb=341.2

Monthly deltas from August: $6B, $8B, $20B, $56B, $54B, $30B.

So if the Fed says it will be cutting bond purchases from $30B to $25B, Fed + Belgium = somewhere between $55B and $85B.

Hardly a taper. Not even sleight of hand.

More like "Who are you going to believe, me or your own eyes?" (Harpo Marx)

Treasury data can be found here: http://www.treasury.gov/ticdata/Publish/mfh.txt
Wed, 04/30/2014 - 14:25 | 4713033 Pinto Currency
Pinto Currency's picture

 

W-

Wed, 04/30/2014 - 14:23 | 4713037 LetThemEatRand
LetThemEatRand's picture

They were debating whether to turn the lie dial to eleven.  It does go to eleven.

Wed, 04/30/2014 - 14:32 | 4713104 XenoFrog
XenoFrog's picture

Recovery Summer rolls on.

Wed, 04/30/2014 - 14:23 | 4713038 McMolotov
McMolotov's picture

#riggedwithexplosives

Wed, 04/30/2014 - 14:13 | 4712961 aVileRat
aVileRat's picture

Going to bet the off camera meeting was about the CapEx & forward looking Friday unemployment numbers. Yields are not changed, risk on products are sitting quiet. April I think is going to be on the books as one of the worst on record, which should set up for an interesting May, when Buysides start playing musical chairs.

Sucks to be a biotech or tech prop trader right now. Of course, gold and old economy desks are still in the gallows, so not much to be smug about.

Liquidity is going to be tight I suspect on this news.

PPS: Rick on CNBC needs to take some ludes, he's going to talk himself off a job.

 

Wed, 04/30/2014 - 14:29 | 4713055 nope-1004
nope-1004's picture

 

 

*FED TAPERS BOND BUYING TO $45 BLN MONTHLY PACE FROM $55 BLN
*FED SEES BELGIUM TREND OF INCREASING BOND PURCHASES BY $10 BLN/MO ON TRACK
*FED SAYS BELGIUM DATA IS TRANSIENT AND OPEN TO MISINTERPRETATION

Wed, 04/30/2014 - 14:11 | 4712962 Stoploss
Stoploss's picture

We had a closed door meeting yesterday.  Statement pretty much the same except for consumer spending?  Where?

Something is wrong bigtime, their scared.

When in doubt, shut the hell up.. Throw hands in air an say errythang awight!

Wed, 04/30/2014 - 14:28 | 4713065 cougar_w
cougar_w's picture

spot on

Wed, 04/30/2014 - 14:11 | 4712965 lordylord
lordylord's picture

How are the unemployed and underemployed buying shit?  I suppose the government proved that they can force you to buy anything, but I don't remember anything about cheap consumer goods.

Wed, 04/30/2014 - 14:18 | 4713014 valley chick
valley chick's picture

Yard sale business is doing GREAT! Someone's junk is someone's treasure!

Wed, 04/30/2014 - 16:09 | 4713531 walküre
walküre's picture

one man's junk is another woman's treasure

FIFY

Wed, 04/30/2014 - 14:18 | 4713013 spastic_colon
spastic_colon's picture

today they will struggle to keep equities flat, tomorrow will be blast off as it is the 1st day of a new month as usual and the ironic day after a fed announcement.

Wed, 04/30/2014 - 14:05 | 4712920 Battleaxe
Battleaxe's picture

Belgium will make up for it.

Wed, 04/30/2014 - 14:39 | 4713105 onewayticket2
onewayticket2's picture

bingo. 

 

they need to make it seem as though it's spread around.  Eventually, myRA.

Wed, 04/30/2014 - 14:06 | 4712923 Headbanger
Headbanger's picture

Fucking hilarious!

Wed, 04/30/2014 - 14:11 | 4712958 Cursive
Cursive's picture

@Headbanger

 

Wow.  GDP print of basically zero and the FOMC statement says economy "picked up."  If this doesn't expose the Fed for the wealth-sucking, leach fools that they are, nothing ever will.

Wed, 04/30/2014 - 14:15 | 4712989 Headbanger
Headbanger's picture

No they're more like a bunch of drunk kindergarten kids playing "bank" and making shit up.

 

Ooops...  I apologize to drunk kindergarten kids playing "bank"

Wed, 04/30/2014 - 14:26 | 4713059 infinity8
infinity8's picture

I'm looking a little like your avatar right now. This horseshit and, a friend of mine just got a 1 (one) % pay increase after a year. Smack! *bitch-slap*

Wed, 04/30/2014 - 16:11 | 4713537 walküre
walküre's picture

they raised him from $8/hour to $8.08/hour? wow! despite the increased cost of Obamacare? wow wow!

Wed, 04/30/2014 - 14:06 | 4712929 JailBank
JailBank's picture

Easy to taper MBS when that pool is almost empty. No new MBS to be had.

Wed, 04/30/2014 - 14:07 | 4712936 thamnosma
thamnosma's picture

That's a very good point.  Unloading those MBS is an entirely different matter.   I guess ZIRP will continue to float the stock market.

Wed, 04/30/2014 - 16:12 | 4713540 walküre
walküre's picture

not to worry, Fannie and Freddie will need another bailout very soon. It's already in the works.

Wed, 04/30/2014 - 14:16 | 4713003 buyingsterling
buyingsterling's picture

They'll find other bad 'assets' to launder.

Wed, 04/30/2014 - 14:06 | 4712931 AlaricBalth
AlaricBalth's picture

"Consumer spending rising more quickly"
I think that is called inflation!!

Wed, 04/30/2014 - 14:17 | 4713011 viahj
viahj's picture

i don't eat or use energy so i'm not affected

Wed, 04/30/2014 - 14:38 | 4713145 Poor Grogman
Poor Grogman's picture

The fed can always electronically create money and send it straight to the SNAP cards.

I really don't see the problem here....

S/

Wed, 04/30/2014 - 14:09 | 4712949 GolfHatesMe
GolfHatesMe's picture

Where is our freaking Guidance?

Wed, 04/30/2014 - 14:15 | 4712994 Grande Tetons
Grande Tetons's picture

No shit! At least give me some blue dots for fuck sakes. 

Wed, 04/30/2014 - 14:23 | 4713036 NotApplicable
NotApplicable's picture

Too dangerous!

Wed, 04/30/2014 - 14:03 | 4712907 RacerX
RacerX's picture

ha ha, yep the economy "picked up" alright. Picked up and left.

Wed, 04/30/2014 - 14:05 | 4712916 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

Top 20% are fine, bottom 80% are serfs.

Wed, 04/30/2014 - 14:06 | 4712932 JerseyJoe
JerseyJoe's picture

That is just so fockin' funny.   I wonder how much time and money went into "It's the weather".   

Wed, 04/30/2014 - 14:03 | 4712909 HedgeAccordingly
HedgeAccordingly's picture

bonds still bid - http://hedge.ly/VwhYtB

Wed, 04/30/2014 - 14:04 | 4712911 yrad
yrad's picture

Where is Jon Corzine?

Wed, 04/30/2014 - 14:08 | 4712945 what's that smell
what's that smell's picture

jon is waiting for the FOMC release so he can watch the market fall a few microseconds and then skyrocket....like the last 200 times.

this one's the best because it was a surprise.

smells like central planning.

Wed, 04/30/2014 - 14:32 | 4713102 cougar_w
cougar_w's picture

Jon Corzine is fed to a fucking tiger:

http://fedtoatiger.blogspot.com/2014/04/jon-corzine-is-fed-to-tiger.html

I hope he reads that some day I really do. I'll get a letter from his lawyer or some shit, which I will print, frame and sell on EBay for $50 a piece.

Bring your crap, Corzine. I'll feed to a mutherfucking tree chipper you mutherfucking whore.

Wed, 04/30/2014 - 14:37 | 4713131 yrad
yrad's picture

I am in awe of you, sir...

Wed, 04/30/2014 - 14:41 | 4713168 cougar_w
cougar_w's picture

I stand on the shoulders of giants ...

... really angry giants with great big axes.

Wed, 04/30/2014 - 16:17 | 4713554 walküre
walküre's picture

Until he reappears, I believe he was aboard flight MH370 which is never to be found ever again, like never.

Latest news on that story is the plane lies perhaps on the bottom of the Bay of Bengal which is nowhere near Australia of course.

Wed, 04/30/2014 - 14:04 | 4712912 GolfHatesMe
GolfHatesMe's picture

Don't Worry......

Wed, 04/30/2014 - 14:11 | 4712964 Pooper Popper
Pooper Popper's picture

Be Angry!

Yes worry and be angry

Wed, 04/30/2014 - 14:21 | 4713030 LetThemEatRand
LetThemEatRand's picture

Thanks, now I have that damn song in head, only with "just worry.  Be angry" for lyrics.  

Wed, 04/30/2014 - 14:05 | 4712915 thamnosma
thamnosma's picture

Wow, they are just making shit up and not even being clever about it.  Consumer spending up my ass.

Wed, 04/30/2014 - 14:09 | 4712953 CrashisOptimistic
CrashisOptimistic's picture

It probably is up.

On gasoline.

Wed, 04/30/2014 - 14:05 | 4712917 Dr. Engali
Dr. Engali's picture

Economy picked up? We just printed a negative GDP when you take out the intangibles you dumb fucks.

Wed, 04/30/2014 - 14:06 | 4712927 Incubus
Incubus's picture

i think they meant they're trying to pick up the pieces

Wed, 04/30/2014 - 15:08 | 4713310 ParkAveFlasher
ParkAveFlasher's picture

I think they mean the card game, '52 Pickup.  Remember that one?

That ass, that ass, I want to stick my nose in that ass. +1

Wed, 04/30/2014 - 14:09 | 4712955 thamnosma
thamnosma's picture

We are living in a surreal world now. 

Wed, 04/30/2014 - 14:16 | 4713006 arby63
arby63's picture

I guess this is what we get with no adults in charge.

Wed, 04/30/2014 - 14:23 | 4713034 BandGap
BandGap's picture

Just lying right in the open. This has been going on for a few years now, it's past surreal.

Picked up Hepatitis C from what I can tell. Turning yellow and then to red.

Wed, 04/30/2014 - 14:14 | 4712983 CrashisOptimistic
CrashisOptimistic's picture

Well, the ugly part is Q1 extended to March and about half of it didn't have cold weather.

But . . . all of it had pretty much $100+ oil.

They will never stop pretending it doesn't depend on oil.

Wed, 04/30/2014 - 14:05 | 4712918 valley chick
valley chick's picture

Bullish!

Wed, 04/30/2014 - 14:05 | 4712919 Yen Cross
Yen Cross's picture

    The Belgians have it covered...

Wed, 04/30/2014 - 14:05 | 4712921 youngman
youngman's picture

But how many words???  Did I win the autograpehed coffee cup???

 

Wed, 04/30/2014 - 14:15 | 4712995 Frank N. Beans
Frank N. Beans's picture

They had me at "Information..." 

 

Wed, 04/30/2014 - 14:05 | 4712924 Let them eat iPads
Let them eat iPads's picture

Markets don't know which way to go.

Wed, 04/30/2014 - 14:09 | 4712948 qazwsx
qazwsx's picture

confusion! 

Wed, 04/30/2014 - 14:15 | 4712991 arby63
arby63's picture

Cloward-Piven perhaps? Seems eerily similar along many fronts as of late.

Wed, 04/30/2014 - 14:06 | 4712925 Tjeff1
Tjeff1's picture

Taper my ass.  Just for public consumption.  "Belgium" will pick up the slack

Wed, 04/30/2014 - 14:09 | 4712946 Bay of Pigs
Bay of Pigs's picture

You beat me to the punch by a minute... :)

Wed, 04/30/2014 - 14:07 | 4712933 i_call_you_my_base
i_call_you_my_base's picture

Now they have to jack up the market to show it's positive.

Wed, 04/30/2014 - 14:07 | 4712934 Cursive
Cursive's picture

CONSUMER DEMEND for help RISING MORE QUICKLY

Wed, 04/30/2014 - 14:07 | 4712935 NDXTrader
NDXTrader's picture

Cool, makes it a little harder to make the taper the taper argument we are going to hear over and over. Nah, who am I kidding

Wed, 04/30/2014 - 14:07 | 4712938 Bay of Pigs
Bay of Pigs's picture

They aren't "tapering" anything. It's all smoke and mirrors and a shell game.

I'm sure Belgium is picking up the slack as we speak. LOL...what bullshit.

Wed, 04/30/2014 - 14:08 | 4712942 yellencrash
yellencrash's picture

Nice ending sentence. LOL.

Wed, 04/30/2014 - 14:08 | 4712943 alien-IQ
alien-IQ's picture

it's all fun and games til someone pokes an eye out.

Wed, 04/30/2014 - 14:09 | 4712954 SheepDog-One
SheepDog-One's picture

Fed more likely increased bond buying to around $150 billion a month.

Wed, 04/30/2014 - 14:36 | 4713121 cougar_w
cougar_w's picture

They are probably already buying at that rate, it's just not in any way you can point to or they have to admit.

The amount of money evaporating from the system these days must be around $500B a month -- in the US alone.

Wed, 04/30/2014 - 14:10 | 4712956 EvlTheCat
EvlTheCat's picture
Fed Tapers $10 Billion, Says Economy is Collapsing, Consumer Demand for Guns and Ammunition "Picked Up"

fixed it.

Wed, 04/30/2014 - 14:11 | 4712957 ebworthen
ebworthen's picture

"Everythings gonna be all right" must be the U.S. version of "Please, do not worry."

ZIRP forever - and if the equities casino tanks - QE ramped back up.

No markets, just chips on green felt and the rattle of dice.

Wed, 04/30/2014 - 14:11 | 4712959 Caracalla
Caracalla's picture

Economy has reached escape velocity...growth at 3-4% for the year....the trend is your friend....no more stimulus needed....BTFD

Wed, 04/30/2014 - 14:11 | 4712967 BullyBearish
BullyBearish's picture

TAPERING is TIGHTENING!!!!!!!!!!!!!!!  They're draining the swamp...be careful out there

 

https://www.dropbox.com/s/evgy5802kxnhyk9/Swamp.jpg

 

Wed, 04/30/2014 - 14:12 | 4712971 joego1
joego1's picture

They are trying to switch to war mode now. Reality will be swiched off permanantly. Gravity is still on though.

Wed, 04/30/2014 - 14:37 | 4713135 cougar_w
cougar_w's picture

yup yup

it's getting too weird to be an accident any more.

Wed, 04/30/2014 - 14:12 | 4712974 qazwsx
qazwsx's picture

makin my charts look ugly

Wed, 04/30/2014 - 14:38 | 4713143 cougar_w
cougar_w's picture

Charting.

wow that's so 1995 ...

Wed, 04/30/2014 - 14:13 | 4712977 thamnosma
thamnosma's picture

Down the chute goes gold and silver along with the USD.  All I am sure of is that the markets are not rigged.

Wed, 04/30/2014 - 14:14 | 4712978 Dr. Engali
Dr. Engali's picture

They will prop it up today. Look for a sell off tomorrow. At this rate silver will be at zero by July. Mission accomplished Janet.

Wed, 04/30/2014 - 14:19 | 4713019 Slave
Slave's picture

If silver went to zero, I sure could stock up on a shitload.

Wed, 04/30/2014 - 14:13 | 4712981 10mm
10mm's picture

All is well now. www.dailyjobcuts.com

Wed, 04/30/2014 - 14:14 | 4712987 Infinite QE
Infinite QE's picture

So Brussels will be showing an additional $10bn in treasury holdings?

Wed, 04/30/2014 - 14:15 | 4712996 Ribeye
Ribeye's picture

grand so, now, can we get back to talkin about that aul fella who owns a sports team, 

Wed, 04/30/2014 - 14:21 | 4713028 JRobby
JRobby's picture

Last night I dreamed it was 1974. I bought a car for $500 that ran for a couple of years. I could work for a month and take a few weeks off. Rent was $285

Wed, 04/30/2014 - 14:46 | 4713199 thamnosma
thamnosma's picture

You just brought back the same memories for me and during the same era.  One could buy really cheap cars, no seat belts, no pollution equipment, no smog checks and gasoline was cheap as hell, until Carter anyway.   As you say, rent was cheap and one could take plenty of time off if not in a serious career path.   Just a lot less pressure all the way around.

Wed, 04/30/2014 - 14:21 | 4713029 Inthemix96
Inthemix96's picture

Righty hoe, send in the fucking clowns for Dogs sake.

These fuckers must be bricking it, making things up and speculating on innuendo, and the continuing robbery of the populace.

This has passed the point of surreal.  This is fucking ludicrous.

:-)

Wed, 04/30/2014 - 14:24 | 4713040 Quinvarius
Quinvarius's picture

They need to buy 1/2 a trillion a year so the US can pay interest on the 17.5 trillion debt.  If they go any lower, they are simply lying about money creation--Which I am pretty sure they already are.  QE was just a public face on an existing hidden process that has been around for decades.  There is no reason for them to tell anyone the truth as long as bankers still get the money.

Wed, 04/30/2014 - 14:24 | 4713041 D-Fens
D-Fens's picture

The Fed is trapped.  They either hyperinflate and gold goes really, really high, or they admit insolvency.

Verily I tell you that even in our so called digital, information age, that humans are basically clueless, greedy primates who all look in the mirror and see an adonis, and want endless free money and entertainment.

 

How do I know this?  I'm a physician and every one of my patients with advanced organ failure thinks they will live forever.  A few admit they won't, but their family members always swoop in and convince everybody to go for more and more treatment.  And the businesses that control the hospitals encourage it, because they get to bill the insurance companies more and make more money for the executive board.

 

And the cost is passed to all of you relatively healthy people out there who face endlessly increasing premiums to the point of bankruptcy.  Rinse and repeat, to infinity.

Wed, 04/30/2014 - 14:43 | 4713182 edifice
edifice's picture

Yeah, humans are basically monkies with shoes. Us included.

Wed, 04/30/2014 - 14:48 | 4713211 thamnosma
thamnosma's picture

You mean I'm not going to live forever?

Wed, 04/30/2014 - 16:26 | 4713599 walküre
walküre's picture

As your patient, I'd ask you how long do I have? Upon your answer, I'd leave your office and have a nice life until that last day. You wouldn't see me again. What's the point? We all have to die some day. Knowing the time frame somewhat can really clear the mind to focus on what's important in those last days, weeks or months ahead.

I have a ticking time bomb inside me and it can go really slow or it can come quick out of nowhere. There's no cure and treatments are either invasive (surgery) or really mess up the body. I do go for regular checkups but I'm not hysterical. If it was in the last stages, I'd just leave it alone.

The inevitable is near for everyone. Considering how long it took for life to establish on this planet, I think the time is all relative. But knowing and understanding that fully, allows me to cherish every second with my kids and not sweat about the future all that much.

Wed, 04/30/2014 - 16:59 | 4713723 joego1
joego1's picture

I would go for the opium and skiip the treatment. I'll have my kid role me on the boat and let me get pulled over by a monster salmon never to be seen again.

Wed, 04/30/2014 - 14:24 | 4713042 Youri Carma
Youri Carma's picture

America's Consumers Are Dropping, Not Shopping
27 April 2014
, by David Stockman via Contra Corner blog,(Zero Hedge)
http://www.zerohedge.com/news/2014-04-27/americas-consumers-are-dropping-not-shopping

Wed, 04/30/2014 - 14:26 | 4713056 Ban KKiller
Ban KKiller's picture

Please put silver on sale. I am going boating.  Protection, I mean insurance, all paid up. 

Still trying to be like the lillies of the field. 

White and Yellen, not quite right and never jellin. 

Wed, 04/30/2014 - 14:28 | 4713067 NDXTrader
NDXTrader's picture

0.1% growth + less funny money = market up. Seems about right

Wed, 04/30/2014 - 14:31 | 4713094 QE49er
QE49er's picture

 

 

"Alright I am going to level with you all, the most important thing now is that you remain calm, there is no reason to Panic.  Now, it is true that one of the crew members is ill... slightly ill.  But the other two pilots... they're just fine. They're at the controls flying the plane."

http://www.youtube.com/watch?v=2sVdXg0aYYw

Wed, 04/30/2014 - 14:39 | 4713153 cougar_w
cougar_w's picture

"everyone stay calm"

Means everyone immediately panics.

Wed, 04/30/2014 - 14:34 | 4713109 QQQBall
QQQBall's picture

When my biz slows, the economy tanks - always, every time, 100%. Biz has been slow this year - staying busy by decreasing fees and grabbing everything I get a shot at.

Wed, 04/30/2014 - 14:36 | 4713123 DC3
DC3's picture

Time to short yet?

Wed, 04/30/2014 - 15:21 | 4713360 Bernoulli
Bernoulli's picture

Yes, definitely.

The worst would be after years of being bearish, going crazy day by day about the "markets" and then to see the Nasdaq tank -30% overnight or within half and hour and not have any short positions. Then you can tell everybody you saw it coming... Don't wanna go there, to be honest...

 

Wed, 04/30/2014 - 16:29 | 4713618 walküre
walküre's picture

they've just reduced the squeeze trigger again by $10 billion ... something to consider

markets may stay where they're at but more and more individual stocks are falling already

less funny money a month means less money to support all the balls in the air

Wed, 04/30/2014 - 14:41 | 4713170 Save_America1st
Save_America1st's picture

shouldn't "tapering" be what they call it when the Fed actually starts to sell all the shit they've monetized and get that shit off their books? 

I mean even if we're supposed to believe they're "ONLY" monetizing 45 fucking Billion a month now, (which I don't believe that for one minute and think they're still probably near 100 Billion a month, but what do the sheep care, right?) it's still 45 fucking Billion a month, right??? 

That was never okay to do 5 years ago, so what the fuck are we supposed to do, applaud these fucking sociopathic scumbags for all this bullshit while they rape and pilage not just America but the entire world????  Fuck that.

Seriously, who or what is supposed to buy that shit from the Fed at some point in the future, huh?  What are they going to do with all that shit they're buying?  Does it get hauled off into space after all this is overwith and nobody is liable for it? 

Are Paul Krugman's fucking aliens going to show up with a bag full of Trillion dollar platinum rounds and buy it all up just to save our asses??? 

What's the outcome with all of this?  They're never going to be able to stop doing this and if they're aren't really printing 100 Billion a month still right now I'll damn well bet they'll be doing it overtly in the future and then this whole fucking house of cards goes up in flames. 

Well fuck....at least silver phyzz is still on sale again today.  Go get you some, kidz.  20 or 40 or 60 or 80...grab a nice tall shiny pile of awesome silveryness now while you can still get it at rock-bottom all-time lows.  The most undervalued commodity in history won't be this cheap and easy to get in the not-too-distant future after the SHTF and TEOTWAWKI jumps up and kicks us all in the teeth. 

PM's, guns, ammo, food, medical supplies, water treatment, fuel, generator, camping, fishing, hunting supplies, all season clothing, etc. etc. etc.

I have absolutely no faith in any outcome other than the worst thing we could imagine just short of a massive global nuclear war...and even that's starting to look plausible the way all this other shit is going.  If they don't go full-retard nuclear style then I hope I'm ready for anything else shitty that ends up happening. 

But there's no stopping these criminal socipaths at this point.  We have no way to stop them from doing whatever it is they're going to do.  I think they want to suck us all dry of everything we have and then burn the joint down for the insurance money just like all mafias do it.  Cuz that's what this is...a giant mafia screw job from the globalist levels on down, and we're the ones who they plan on leaving stuck holding the empty bag.  

 

Wed, 04/30/2014 - 14:51 | 4713224 thamnosma
thamnosma's picture

I suppose they are praying that by stalling for time the global economy will take off, demand for housing will absolutely soar and THEN they can unload that MBS crap.   That has to be the thinking.  Akin to religious faith.

Wed, 04/30/2014 - 14:50 | 4713218 R3VOLUTION
R3VOLUTION's picture

Let me guess, the mysterious "Belgium" buyer increased its U.S. Treasury holdings by the same amount...

Wed, 04/30/2014 - 14:52 | 4713230 Irishcyclist
Irishcyclist's picture

$4.3 trillion balance sheet is the reason why the FED has to change tack.

Wed, 04/30/2014 - 15:00 | 4713271 cougar_w
cougar_w's picture

$4.3 trillion balance sheet is the reason why the FED is completely trapped and can never go back.

Wed, 04/30/2014 - 15:08 | 4713304 Bay of Pigs
Bay of Pigs's picture

That is exactly the situation cougar. The FED is the bad bank now.

I still remember your rant from a few years ago about them "printing until their eyes bleed". You were spot on brother.

Wed, 04/30/2014 - 15:02 | 4713278 LooseLee
LooseLee's picture

So now they (The FED and their miscreants) are just blatantly claiming things are getting better in the face of the facts---similar to the illusionist at the circus. These fools are desperate! This is being done to deliberately give a false impression. And the morons running the financial markets have obediently followed their lead. Wake up people....You are being led to the slaughter...

Wed, 04/30/2014 - 16:34 | 4713634 walküre
walküre's picture

ask any Russian who lived during 40 years of centrally planned propaganda and the economy

it was always THE BEST from Pravda and the people just shrugged, exchanged their worthless rubles for Dollars, Deutschmarks, gold and silver and bartertown was booming

this US thing is already collapsing, has been evident for a few years now. Eventually government will turn off the lights because they can't afford to run their show on worthless money.

Wed, 04/30/2014 - 16:20 | 4713332 JuliaS
JuliaS's picture

Credit is like heartbeat. It expands, it contracts. First if flows easily, economy grows (at least it appears so), people feel confident, load up on debt, pledge valuable collateral to secure loans, then credit contracts, economy shinks, loans default, collateral goes to the bank. Then it starts over again. Build confidence, destroy confidence, repeat.

Prior to 2008 the system was squeezing the general consumer. Now it's the fight between the big boys. High magnitude shocks squeeze out the capital and collateral from institutions and municipalities. Hundreds of small banks got absorbed by bigger banks with FDIC blessing. At the corporate level, the wealth-redistribution has gone global.

We are at the end of an era. Peak everything. Changes are coming in every single aspect of existence. While the beasts are devouring eachother, we - the average folks, also have a new toy to play with called the internet. It makes possible things that were never imagined - it makes possible to circumvent most mechanisms of the old paradigm. It makes possible for us to communicate, transact and plan while completely bypassing established power structures. We are the media, we are the banks, we are the government - all of us. While the pyramid is getting obliterated, we're establishing a new foundation, without even realizing it. We are fighting a war and we are winning. It may not be apparent yet, but as the crisis nears the point of singularity, we will come out winners...

... or it'll be WW3, Einstein's sticks and stones, Mad Max bartertown, yadda yadda yadda.

Hope for the best, prepare for the worst.

Wed, 04/30/2014 - 16:46 | 4713684 walküre
walküre's picture

+1

Don't fall short on putting the blame where blame belongs though. Just see who is always swimming at the top. To suggest this is not by design to create a class of neverending winners and classes of eternal losers leaves your great synopsis incomplete.

Thu, 05/01/2014 - 08:07 | 4715355 inky
inky's picture

JuliaS +10 great comment.

Wed, 04/30/2014 - 17:44 | 4713882 BeerMe
BeerMe's picture

From my own personal economy things aren't picking up.  Much slower than last year.  Pretty much only buying food and energy at this point.  Business is slow.

Seems to me that the Fed is just trying to keep people calm because they lost control a long time ago.  This time the rabbit is out and they know it.

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