It is quite obvious that the FED believes the incredibly questionable GDP data from the Commerce Department (US CD) and this explains quite clearly why their monetary responses have been ineffectual to a fault. We cover these beguilingly misleading – IMO - economic machinations from the US CD in great detail in our inaugural Market Review and in a ‘passing fashion’ in many of these Blogs.
Namely, the US CD’s aggregate economic data streams, but especially the GDP and CPI numbers, are so horribly inaccurate and outdated (in our opinion) that the "moderately" expanding US economy referenced below is a complete fiction, thus the subject line of this Blog. Furthermore, the current US economy is in reality so very dismal (and everyone out here in the ‘Real World’ knows it) that all comments such as these from the US Fiscal and Monetary authorities only serve to distance them from their constituency, and ever more so every day. Which result does severely limit the FED’s historical powers of “Moral Suasion.”
The real message from this article is that the FED is totally panicked with what they perceive out there (do they see the 3rd and last of the “Kondratieff” Long-Waves?) and are madly sending up “Trial Balloons“ for QE 3. However, the “Sheeple” don’t know that QE 3 already started with a $39,600,000,000 burst of buying from the Member Banks by the FED in early November that kicked off the equity rally in November, thus sustaining the hopes of the "Sheeple" into the Holidays!
Stay tuned folks. Bernanke’s “Black Helicopter“ ‘money drops’ are just getting started!
And by the by, how much did your ‘bread’ or ‘apple’ or ‘gum’ or ‘insurance’ or ‘banking fees’ or ‘Utilities’ or anything and everything else GO UP LAST MONTH?
According the US CD the ‘market basket’ of all that stuff that you bought last month went up only 0.2%.
Do you agree with their numbers?
Oh, and how is business on your street or in your town?
Oh, and how are your local businesses (NOT THE BIG BOX STORES) faring?
Lets’ hope the people ‘calling the shots’ start to see what the rest of us already do ‘see’ and do ‘know!’
Because, if this is a “moderately” expanding economy, then Bernanke and the rest of these Dudes are living in a “Reality Show!”
Bernanke Signals Fed Ready to Ease on EU Risk
Bloomberg; By Scott Lanman and Joshua Zumbrun - Dec 14, 2011 12:00 AM ET
Dec. 13 (Bloomberg) -- Federal Reserve policy makers said the economy in the U.S. is expanding "moderately," notwithstanding some apparent slowing in global growth and an elevated unemployment rate. …
Federal Reserve Chairman Ben S. Bernanke… said the economy “has been expanding moderately,” compared with the Nov. 2 assessment that growth “strengthened somewhat.” …Bernanke and his colleagues may be considering more measures to aid growth and improve public understanding of Fed policy, which could be unveiled as soon as their next meeting taking place Jan. 25-26, …“They still see downside risks, so I still think they’re tilted toward easing,” said Coronado, a former Fed researcher who is based in New York. She said she expects a new round of asset purchases in the second quarter, or as soon as the January or March meetings should the economy deteriorate faster. …
Consumer Confidence
Improvement in some U.S. statistics suggests growth may be accelerating. The index of leading economic indicators rose 0.9 percent in October, (who do get to build these algorithms?)…A consumer confidence index from the Conference Board rose in November to the highest since July. (July of 2011 doesn’t matter, its comparisons with July of 2005 that counts – DOPES!) Manufacturing expanded in November at the fastest pace in five months(DITTO!!!), according to the Institute for Supply Management’s factory index.
..Policy makers acknowledged “some (What is some?) improvement in overall labor market conditions” after the unemployment rate unexpectedly fell by 0.4 percentage point in November to 8.6 percent.
…Three-month loans to the European Central Bank from the Fed surged last week to $50.7 (This is our money $50 Billion they just used to support the socialist GIIPS! Who gave them that right?) billion from $400 million after the Fed, ECB and four other central banks lowered borrowing costs by a half-percentage point in a coordinated action.
No comments:
Post a Comment