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FOMC Ends The QE Dream, Keeps "Considerable" Period Hopes Alive - Full Statement Redline
"Steady as she goes" was expected... having kept the "considerable time" dream alive last month, the FOMC ended QE3 on schedule but remained 'data-dependent' on reviving it...
- *FED ENDS THIRD ROUND OF QUANTITATIVE EASING AS PLANNED
- *FED SEES `SOLID JOB GAINS' WITH LOWER UNEMPLOYMENT
- *FED: UNDERUTILIZATION OF LABOR RESOURCES GRADUALLY DIMINISHING
- *FED REPEATS RATES TO STAY LOW FOR `CONSIDERABLE TIME'
- *FED REPEATS RISK OF BELOW-TARGET INFLATION DIMINISHED SOMEWHAT
- *FED SAYS LOWER ENERGY PRICES TO HOLD DOWN INFLATION NEAR TERM
- *KOCHERLAKOTA DISSENTS AT FOMC, SEEKING QE CONTINUATION
And so now the "flow" has stopped; given that "bond buying" did not work, we are reminded of Alan Greenspan's warning that "I don’t think it’s possible" for the Fed to end its easy-money policies in a trouble-free manner.
Here is how the Fed pretends it has rarely been more optimistic about the economy:
The Committee judges that there has been a substantial improvement in the outlook for the labor market since the inception of its current asset purchase program. Moreover, the Committee continues to see sufficient underlying strength in the broader economy to support ongoing progress toward maximum employment in a context of price stability. Accordingly, the Committee decided to conclude its asset purchase program this month. The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. This policy, by keeping the Committee's holdings of longer-term securities at sizable levels, should help maintain accommodative financial conditions.
Pre-FOMC: S&P Futs 1975, 10Y 2.32%, Gold $1225, WTI $82.75
"Do you see what happens, Janet" pic.twitter.com/NJsuZayc2B
— Not Jim Cramer (@Not_Jim_Cramer) October 17, 2014
What next? Is it the 'stock' or the 'flow'?
A reminder of what happened at the last FOMC...
Full Redline below:
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Is it just me or does Janet Yellen look like one of those women who liked to get nailed by a black guy while her husband watches and jacks off in the corner? Cant you just see her spread eagle while Barack Obama just plows right through her while chanting one liners like "GM is saved!" "You didnt build that!"? But not even Obama can satiate her, so she calls in for air support. Ben Bernanke comes flying in on a chopper, enters the building by smashing through a window (good for GDP), and then stands at the foot of the bed, saying "we will not allow inflation to rise above 2 percent." He unzips his trosures, takes out his cock which has been surgically replaced with two wads of 100 dollar bills stacked end on end. Janet looks down, is pleased, then sees his balls, which have been replaced by money bags with dollar signs on them, filled with fiat. She squeals with delight. Ben begins piledriving her caveman style. Janet starts getting antsy after a few minutes though. Turns out shes late for a Banker Wanker convention, where shes giving the keynote address. So she tries to get Ben to hurry and finish. She turns on some porn. Its a video of Bill Dudley shitting on the grave of FA Hayek. This does it: Ben shouts out in ecstacy "subprime is contained!" and a bunch of dimes and nickels shoot out from his money schlong, all over Janet's flabby cottage cheese body. Its a literal moneyshot. Obama cleans up.
Anyone else see this?
the question from the very beginning is how would the Fed unwind their balance sheet? Belgium?
BernYellen ends QE, Super Mario to start it.
Bullish, right?
Why do UNELECTED JEWS get to ru(i)n the world economy?
Translation: YOU'RE ON YER OWN MOOKS!
Maybe Belgium will step in and save us all.
Belgium took too much heat last time.
They are going to have to spread the buys all around the planet as Covert QE gets under way.
Troll Magnet
Honestly I havent trusted a Jew in high position for a while (Bernanke, Greenspan and most of the FOMC members, Frieden, Nuland, Krugman) and Yellen is no better. I hope the sheeps will wake up and realize this. Its time to take back our country from dual-citizens who could care less about us.
Hear, hear!
They're fucking traitors and terrorists, liars and thieves, cancerous criminals. Fuck Israel.
The recovery is unshakable. Stocks are on the path to recovering all of the recent losses. As Warren Buffet says, buy when there is blood in the water. The recent correction in stocks may be the final opportunity for late comers to ride this market into the new golden age of prosperity and opportunity.
Recent correction....haha.
The guy makes me want to buy a used car from a used car salesman.
Is it blood in the water or blood in the streets?
I guess the blood can run off from the streets to the water.
I believe the Fed will continue QE. They won't call it QE, they'll call it by a different name, but it will be enough to fool the Wall Street Journal reading crowd.
The Fed's new program will be called Numerical Amelioration.
Lol, I came up with that name by putting Quantitative Easing into a Thesaurus.
Baron Rothschild, an 18th century British nobleman and member of the Rothschild banking family, is credited with saying that "The time to buy is when there's blood in the streets." NOT WARREN
Nonsense. The FOX News crowd is gearing up for election time. Israel can do know wrong.
Looks like the Fed could really use some lessons here, from the Colombian and Mexican cartels, as to managing liquidity (i.e., covert QE)...
I had a blast with a Little League parent last night that thought my comment that 87% of the country is run by those from Ashkenazi was wildly off the mark.
So I took him to the bit out of date, but still relevant, site, Who Control's America.
I then explained what "return" is, and the ramifications of it: no connection or loyalty to fellow Americans, and the ability to actually flee when the time comes.
He was speechless when I finished. I topped it off with the background of the new "Ebola Czar."
When he asked me, "What does it mean," I told him to look around at the state of the country and economy, and see if the answer is not evident.
Who says informing the sheeple can't be fun?!
A non "return" able American, not US subject.
"Moreover, the Committee continues to see sufficient underlying strength in the broader economy to support ongoing progress toward maximum employment in a context of price stability."
Hurry up with the damn 3D printed livers, we're gonna need em...
My guess is it simply won't happen.
In other news, Homeland Security went on a panty raid last week!
http://hardballtalk.nbcsports.com/2014/10/22/panty-raid-homeland-securit...
There goes my security!
Wow
Things must be slow on the domestic terrorism front...
Yea, real slow. False Flag in 5, 4, 3, 2
My guess is it simply won't happen.
Not while Obama is in office. He is the guy calling the shots, and he does not want the short term disruption that higher interest rates will cause. Politics above all.
In other news, the EPA wants to ban... Argon!
One fry cook fired but 2 cashiers hired = Job gains.
Sage?
You can't eat QE. https://www.youtube.com/watch?v=p6JQTUGVcqk
Yuck
So Kev' and his internee team need to preserve the illusion of "mild market disappointment" with a topping of "Fed is right, economy is gettin' better" illusion. Whatever else happens, Belgium can wipe up in the wee hours.
*FED SEES `SOLID JOB GAINS' WITH LOWER UNEMPLOYMENT
Dear Janet,
Please publish the address of the clinic where you get your pharmaceuticals. I would like to partake in some of that good stuff.
Best wishes,
Rubi
The jobs report on Monday will be another lie.
THESE PSYCHOPATHS ARE FORCING THE REAL ECONOMY TO ITS KNEES. WAKE UP, AMERICA!
Shit on toast, there are a bunch of prudes lurking here judging by the downvotes.
DO YOU MIND ??!!
. . . I'm trying to EAT !
best ever
Anybody want to BTFD
lol. FED might give one more ramp as a farewell tour.
They have to exit QE with the markets remaining steady for an extended period of time to sell the wonderful job they did.
There must be a 100% chance of stability or they wouldn't have publicly ended QE.
Which means they have not ended QE... anyway... not like any audits are going to happen any time soon and don't forget hundreds of billions in CB currency swaps (where no actual swap just USD injections) back in 2008-2009 were never recorded on the books anyway...
you may be right that it has not ended. All we can do is grab the popcorn and watch the show.
I'm guessing this is the last flush on PMs for a while. Watch Gold and Silver. They seem dead in the water with nothing to drive them high and with them being so out of favor, watch them begin to move up soon. COTs are favorable. The Schiff hit piece is also a tell. They paraded him out there to mock him. He held his own but their reasons from hauling him onto the TeeVee is obvious.
Agreed. They just need to keep PM prices level.
Too low and China will dump treasuries and buy physical with both hands...
Down goes gold. Big suprise.
and it is over... bruce jenner is a female now..
http://www.hedge.bz
he never wore the pants in that house anyways
YOU DON'T NEED TO TELL US ZH'ERS ABOUT BRUCE'S CONVERSION...OUR SPANK BANKS ARE ALREADY FULL OF HIS/HER LATEST PHOTOS
Not raising rates, lying about: inflation, employment, and the economy - while backstopping banks with ZIRP.
"Considerable time" = "Fuck You Savers!"
How long until QE4 is announced? Right after the election is my guess.
Right after algos give the S&P500 a good nose dive. TBTF have a very unique way of screaming give me moar.
Thank you Belgium for your support, now Kevin get to work.
I want to see a red candlestick on my monitor at least 10 inches long. Que the pervs lol.
Given the treasury debt they hold and maturities etc. They are still very much a player in the bond "market"...
reverse repos
Infinite recycling back and forth with primary dealers and selected entities.
As I keep saying: Financial system can easily be fixed by overriding computers.
Real economy cannot
Watch the trade routes closely.
Do not be surprised if Dow neds positive today
There is no market. There are only digits on computers
Healthy job market....... Lol.... these peole are fucked in the head if they think we believe that bullshit.
They don't csre what people think or believe.
Yeah no kidding, its been over a decade since new American citizen grads were hired in any significant numbers to US corporations. A significant portion of the labour market's poor performance and apparently low "unemployment" rate is simply these people falling out of even being counted. The 2002-2007 period was known as the "jobless recovery", and then the so-called "great recession" started in 2008. Grads never did get much of a reprieve from the misery.
"Healthy job market" This is the big lie they keep repeating. The plan is to simply repeat it till most believe it. America is now built on a foundation of lies. In war and in economic life, the "big lie" is now standard Washington DC practice. Don't expect a change from that anytime soon.
We enter another era Bitchez!
Dupe Bitchez!
There is $4 trillion to recycle stocks and bonds from computer to computer, just like Reverse Repo
It is Stock and it is Flow. But the Stock is quite large to run a FAKE Flow (when needed)
Deflation cometh bitchez. The real response move will happen tomorrow.
can i haz your newsletter?
Buy his new book.
FED: "Under-utilization of labor gradually diminishing." LIE!
So people are going to "save for retirement" making $8-$10/hour? LIES!
And why would I save if I could when I won't get paid shit for doing so?
Fucking harpies.
eternity is a "considerable time" so technically they aren't lying.
The periphery is already burning. Argentine is going to the be the template for other debtor nations. Banks already more discerning in their lending will shut the spigot off again when they can't flip the rotten papers back to the Fed somehow. Sure, they have access to ZIRP but they're still on the hook for the principal! Banks don't want to risk being overleveraged and undercapitalized.
Ukraine has lots of debts out there. Some are already in virtual default, but the real default from Ukraine is coming this winter. Just one more bad apple economy.
New game in the banking world. "Who has Ukraine paper in the vaults?" Better yet, needing 1/2 a trillion euros just to maintain, who will lend that money to Ukraine who already is in virtual default?
My understanding is that Poroshenko just asked the IMF to fling more electrons in his general direction: "Unlimited supply for any crisis" (their words).
They're going to bail out the United States, too: all seventeen point nine trillion worth, enough to light up the tree in Rockefeller Square this Christmas.
Wednesday - QE3 ends
Thursday - market crashes
Friday - QE4 starts
I have maintained to my brother, who is long stocks big time, that an end of QE is the end of stocks. He kind of mumbles but says nothing. Does he fail to "get it". As Jack Burton would say!
Don't need QE when there is $4 trillion in bonds reaping interest to be re-invested. Done the math?
True. How is the interest being generated though? Is the economy able to service the debt?
Good question!!. "NO" the interest is not being serviced, it is also being borrowed. Has been for years.
All they have going for them are prayers that the end of QE will not result in a default of UST anytime soon. QE bought them time and allowed them to flatten the yield curves but a .25% increase on trillions is still a huge pound of flesh if and when rates go up.
DXY just spit in Yellen's eyes
I kind of have the morning after Y2K feeling.
Time to crush Gold. So when QE4 arrives it "rockets" to 1225.
If the Fed were to eventually unwind all of this(which they won't) what happens to those dollars created out of nothingness? Are the shoveled back to the Treasury and spent, fueling inflation, or are they destroyed by a keystroke? Perhaps they end up in some bankers pocket?
Bruce Jenner had a sex change?
Yeah, he visits OJ in prison.
That fucker looks like a meat grinder got ahold of his face. Lesson, stay out of the sun, don't smoke, don't drink, and don't get plastic surgery! That fuck has been abusing the skin god gave him, and now he looks like shit. As a woman, he would be an epic fail. But look at any woman over 55+ and they are epic fails too! So get that sex change Bruce, nobody gonna be able to tell. You probably got less wrinkels than ladies your age, bad as you look as a man.
Married to that bitch woman, she made him into a woman, so why not go all the way!
Fair point. A lot of women don't even try to look like women anymore. I miss hairstyles and clean skin and classy feminine clothing. Eventually, we'll all just wear Orwellian coveralls. Next will come elimination of sex. And golf. Oops, not golf. Unless the golf courses are torn up to grow food...
Dovish .. protecting equity assets again. Nice of them.
I agree with this. Makes me wonder what everyone is thinking the alternative is too. No statement at all perhaps?
The Fed raised rates in the Great Depression. This time they did all in their power to avoid it...and still are. To blame the Fed for a lack of job creation is I think asking way too much of them. It's quite amazing that they are even attending to the "dual mandate" (growth/sound money) at all to me actually.
The voter has clearly dropped out here...hard to blame the Fed for that however.
After the cheap gas elections, no Ebola quarantine until after November 4, 2014 with no ISIS Beheadings. PM Cameron promises to look left, right, left before crossing the sidewalk to enter car. Joggers are just tax servants. We can't get their feathers in the air.
/ lol
Yes Jenner did have a sex change but changed his mind and now he's changing back
Just saw a headline that the FED sees the labor market as no longer 'underutilized' what about the 93 million Americans OUT OF THE LABOR FORCE? I guess thats just noise.
Not that all the other data is proff enough but that first chart with the S&P vs the fed balance sheet is pretty clear on to whats going on/what not going on
Not that all the other data is proff enough but that first chart with the S&P vs the fed balance sheet is pretty clear on to whats going on/what not going on
QE Finished well
We'll meet again dont no where dont know when but I know we.ll meet again some day
CB's buying the fuck out of the Dow ...must get back above 17k, so still no end to this Ponzi
OMG...no more free punch, free lunch, free mainlines of junk....
"We want MOAR, we want MOAR, we want MOAR...."
Fucking debt junkies.
Let them eat rate hikes.
Since "Christmas" has long since been profaned into a commercial blasphemy against the Lord's Nativity, I was thinking about going into the Christmas Card business. I'm considering to start with a Banker's line of Seasons Greetings: "Jump You Fuckers!". All we need is a sufficient number of valid mailing addresses, return addressed from politicians and other bankers to facilitate opening.
Who's in?
Does anyone else wonder about how CNBC has all of the fancy FED ENDS QE graphics ready IMMEDIATELY after the announcement???
Concerning the Labor Force Participation Rate, will wonders never cease.
The JP Morgan shill said that the Fed is NOW even considering the NUMBER OF PRIME WORKING AGE MALES IN PRISON - YES, PRISON - as a structural reason for their being less slack in the workforce.
Ending QE is like breathing underwater...Have you tried it lately?....
Maybe they're gonna crash the market right before the election, MSNBC et al will blame the Republicans for blocking Obola's agenda that and say that they are the primary cause.
Fucking tribe slamming gold again....
They're slamming GLD (of whichI own none), not gold (of which I possess much).
With QE gone, how will the Banksters and other crony free market types get at FREE tax monies?
QE gone? Was Frosty "gone" when he was melted in that greenhouse? Or will QE be "back again someday"?
DXY hovering around 86.
This is a margin call under way. NY Fed is mopping up excess liquidity right now
We'll see next few days who goes down if the mop up continues
How is it possible to stop buying bonds and keep interest rates low? They think someone else is going to buy them?
What people fail to see is, you have been living under QE for the past 60 years anyway.
All loans are fractional (lent from money that doesn't exist) this is intrinsically inflationary and is by its very nature. . . the same thing as QE (counterfeiting money into circulation causing bubbles and booms and busts).
The government will continue to "borrow" more money into existence as its obligations continue to balloon and that money will seek yield somewhere down the line and cause an bubble somewhere in the economy, a bubble that will burst and cause a systemic crash again and again.
Until money actually becomes "real" and is not completely without substance or value , you will have this continued cyclical creation and destruction pattern repeating until the system can no longer recover from one of the crashes and the debt burden reaches too high a % of GDP / Debt per Capita.
America has been living on borrowed time for the better part of the last hundred years and the game is un-winding and coming to an end, no amount of "extra" counterfeiting can really prevent what is mathematically inevitable.
FED SAYS LOWER ENERGY PRICES TO HOLD DOWN INFLATION NEAR TERM
Interesting statement given that they've taken energy out of the CPI calculation.
i realized when yellen made the comment advising inheritance is one primary way of securing a secure financial future i realized just how out of touch the ivory tower really is and why they are so vulnerable to doing the wrong thing. an objective look at the numbers confirms their assessment. she covers her comment about the improvong job market wth a comment about the underutilization of labor and the low inflation rate. they think they may have reached a critical mass of sorts that will allow bond yields to remain low "naturally" and reflect the "real" market going forward.
so what will they do when they find out the real reality? print moar!!!!!
AMERIKA = DEPRESSION
1/2 the country doesn't work
67% workforce utilziation = 6% unemployment .... only in oblaland
interest rates not going up........ depression, no demand, no money velocity
share buyback no capex .... no demand for products
cnbc BUY BUY BUY get out your resumes..... MCD WMT LOCO etc... hiring
interst rates up.................stock market down.... but interest rates wont go up but market will go down....
"folks" not buying due to pleasant weather
wait til obolacare kicks in and epa regs hit ..... economic squeeze
BUSINESS DOES NOT CREATE JOBS.... THE GOVERNMENT BUILT IT .....
#NATO Propaganda
"Nato jets intercept Russian nuclear planes"
NATO reports 'large scale' Russian air activity in European airspace
NATO said Wednesday it had tracked four groups of Russian warplanes "conducting significant military manoeuvres" in European airspace over the past two days. "These sizeable Russian flights represent an unusual level of air activity over European…
latest
http://tersee.com/#!q=nato&t=text
those planes were also looking for the Russian sub no doubt!
Is it just me, or is anyone else seeing the same? "FOMC will use principal payments on existing holding to continue purchase of MBS." If existing holdings are above 4 trillion, imagine the amount of MBS the FED is still purchasing. Can we really say the QE has ended?
.
how much principal payments can they expect when they need to issue debt just to pay the interest first?
I wouldn't expect Anything Major until After Election Day.
What are principal payments on over 4 trillion dollars of holdings. Imagine!
QE: A central bank enacts quantitative easing by purchasing—without reference to the interest rate—a set quantity of bonds or other financial assets on financial markets from private financial institutions.
Todays' FOMC Statement:The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities.
Can someone explain what this means?
Can anyone enlighten me as to how exactly this news should be driving PM prices down? Is there any rational explanation?
Well, I just looked on another page where they are saying the announcement is perceived as *hawkish*, not dovish, and that this is supposed to be bearish for the PMs. (Shrugs.)
QE has not stopped.
In fact, QE was never tapered.
All that happened is the visible debt-explosion AKA money-printing AKA QExyz have moved from being somewhat visible, to being almost entirely hidden.
Why? An attempt to pretend the economy is getting better, and thereby influence behavior. Period.
Plus, when the SHTF, and they start another visible QE, they will actually have double-QE... visible QE plus the invisible QE, and thereby cause twice as much destruction as anyone realizes.