The Fed released its “minutes” from the September 18th meeting today; and assuming they weren’t doctored, revealed just how clueless these world-destroying people are. By the way, what a coincidence that TPTB announced the Yellen nomination today; thus, creating two separate “key attack events” necessitating relentless PAPER PM raids. Ultimately, their goal was to get the MSM to write of how these events were PM-bearish; when too the contrary, NOTHING could be more bullish – per my article earlier this morning.
Per the headlines below, the “minutes” demonstrate a combination of idiocy, cluelessness, and helplessness on an EPIC scale. Not surprisingly, the MSM immediately latched on to the comment that the “no taper” decision was a “relatively close call” for several members. However, they ignore the fact that this statement was cancelled by the paradoxical comment that “all FOMC members wanted more evidence of sustainable economic progress before trimming QE.” In other words, NOTHING materially changed; and by the way, do you think the subsequent plunge in markets and economic data – accompanied by the government shutdown and debt ceiling debacle – might have any bearing on the decision-making process?
And how about the comment that “most participants judged it appropriate to taper this year”; while simultaneously, stating it would be “difficult to explain a cut in QE in the coming months absent clearly stronger economic data?” Last I looked, the recent data stinks; and due to the shutdown, data is now not even being reported! And then you have concerns of the “effectiveness of FOMC communications.” I mean seriously – give me a break! How much clearer can they be? Just because markets don’t do what they want – MANIPULATION notwithstanding – doesn’t mean it’s due to a communications breakdown. And finally, how about the comment that “a few participants preferred only to cut Treasuries when the time comes?” I mean, we’re supposedly in a housing “recovery”; yet NO ONE on the FOMC wants to stop buying mortgage-backed bonds!
To conclude, here is a paragraph from the actual Fed Minutes release. If this doesn’t demonstrate that the Fed knows it is trapped by its own, doomed policies, NOTHING will. As Zero Hedge puts it – they are stuck in the ultimate “Catch-22”; and thus, know they are damned if they “taper,” and damned if they don’t. Per what I have writing of for years, this is precisely why you must own PHYSICAL gold and silver before the market control they are attempting to mask their failures permanently breaks down…
The announcement of a reduction in asset purchases at this meeting might trigger an additional, unwarranted tightening of financial conditions, perhaps because markets would read such an announcement as signaling the Committee’s willingness, notwithstanding mixed recent data, to take an initial step toward exit from its highly accommodative policy…the tightening of financial conditions observed in recent months, if sustained, could slow the pace of improvement in the economy and labor market… it was noted that if the Committee did not pare back its purchases in these circumstances, it might be difficult to explain a cut in coming months, absent clearly stronger data on the economy and a swift resolution of federal fiscal uncertainties…. postponing the reduction in the pace of asset purchases would also allow time for the Committee to further discuss and to implement a clarification or strengthening of its forward guidance for the federal funds rate, which could temper the risk that a future downward adjustment in asset purchases would cause an undesirable tightening of financial conditions.
–Zero Hedge, October 9, 2013