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Silly Market Analysts or Silly Central Bankers

Written by Gary North on September 17, 2013

Tomorrow, the Federal Open Market Committee will meet. It will decide: leave things alone, and then publish a press release, or tinker at the margin, and then publish a press release.

We read this on Yahoo Finance.

Since the June 19 FOMC meeting, all eyes have been looking down the calendar to September, when market participants determined it was most likely the Federal Reserve would slow down its QE3 easing program. After three tense months, the September FOMC policy meeting finally arrives this Wednesday.

Why have all eyes been looking to September? Why not December?

Why have all eyes been looking at all? The FOMC publishes its press release every six weeks. Ever since December 12 2012, the statement on policy has not varied as much as a comma. It is pure boilerplate.

Yet the financial media has been filled with verbal speculation about the September taper. It is almost universally assumed that the FOMC will announce a change, although minor. The fever pitch has been building. But for what? For an expected reduction from $85 billion a month to $75 billion, i.e., from $1 trillion a year to $900 billion. In short, nothing relevant.

It is one more example of the financial media swallowing camels — the legitimacy of massive counterfeiting — and choking on gnats.

If the FOMC changes anything, it will be saying in no uncertain terms, “ignore our boilerplate press releases. They convey a misleading sense of predictability. Transparency? You must be joking.”

If the FOMC changes nothing, the financial news media will appear as a collective group of dolts, who live on rumors of meaningless changes, which then do not come true.

I don’t think the FOMC will change anything. If it changes anything, it will have to offer an explanation. The main one would have to be this: an improving economy since its most recent meeting on July 31. Where is the evidence of an improving economy?

The crucial fact for the FOMC is this: the pathetic economic recovery — the worst in the post-War era — has been accompanied by a quadrupling of the FED’s monetary base. What happens after the next recession? What will be the FED’s stimulus then?

The mainstream financial media do not ask this question. The question points to the magnitude of the monetary trap which the Federal Reserve is in, and which the world’s economy is in. It would raise this question: “What will happen to prices if the commercial bankers ever start lending again?” But if they refuse to lend, this question is appropriate: “When will the recovery ever gain traction, without the need for $1 trillion of counterfeit money a year?”

As for this question — “What is the FED’s exit strategy?” — Bernanke successfully evaded it, as we see in the video. It will be Yellen’s turn, beginning on February 1.

Continue Reading on finance.yahoo.com

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7 thoughts on “Silly Market Analysts or Silly Central Bankers

  1. We are so screwed!!! What's coming down the pike is going to be a wild ride!!!

  2. The Treasury could start issuing debt-free currency and spending it into circulation tomorrow. The problem is both presidents who stood up to the central bankers like that in the past weren't wearing their Kevlar undies.

  3. Gary, the main stream media is a partner of the FED, what is happening is by design, and no one will look silly if the FED doesnt taper, at least not with the general public, who doesnt understand much to begin with.

    I think they do taper on wednesday, but who knows, and if your are properly invested, who cares. Either my gold stocks are going higher on the news and i can sell some, or they are going lower and i will buy more. the FED and their media partners offer me trading opportunities, and i win whether they lie or follow through- no need to over analyze those clowns.

  4. FreeMarketAnarchist says:

    Yes, literally printing money instead of "borrowing" it from the Fed who prints it, will solve our financial woes.

    And if you couldn't tell, I'm being sarcastic.

  5. Ok, we'll go with your solution, wampum beads. 😉

  6. FreeMarketAnarchist says:

    How about we let the free market decide what is money and what is not? 99% certainly under such a system we would have inflation-proof gold and silver currency, with free market bitcoin starting to get lots of traction as a digital money that cannot be printed and inflated to oblivion.

  7. flash gordon says:

    Danno, your one of the few who has it figured out correctly. "THEY" have a money racket and aren't going away easily. Kennedy ordered the treasury to by pass the fed and print United States treasury notes, by passing the fed paper. Got him killed. Instead of the interest on us treasury notes going back to WE the people, this was not allowed by the banksters. Sent a message to every president since. Now we know why obama was told to start a war with Syria, The banksters get all that interest money on financing – everything ! WAR is a RACKET. Most of the american sheeple still don't have a clue –