FOMC Statement: Reading Between The Lines

“No more rate hikes period…rate cuts to begin sometime this spring…tapering the balance sheet taper starting in May…QT ends in September even though our balance sheet has only been reduced by roughly 10% of the amount of money we printed…Quantitative Easing  aka “money printing” to resume in October…our hidden dot plot shows that you should buy as much physical gold as you can afford and keep it as far away from any custodial safekeeping as possible.”

Just for the record, the Fed’s “Dot Plot” has to be one of the most idiotic props ever created for public consumption. It far exceeds the absurdity of the “flip chart” that Steve Liesman uses.

10 thoughts on “FOMC Statement: Reading Between The Lines

  1. Who’d have thunk it? You mean all those amazing economic statistics, the market performance, and their fabulous metrics, like dot plots, shit spots, and what ever other predictors they have, fooled them? I’m shocked! Useful idiots, indeed.

    Good thing they ambushed gold this morning ahead of the 100 yard dash in reverse.

  2. “Read my lips, no new taxes”
    “I will never send American boys to fight a war in Vietnam”
    “I did not have sex with that woman”
    “We must attack Iraq because it’s an axis of weevils and has WMDs”
    “No more rate hike, period. We will cut them in the spring”

    I think we need more lies like this Remaining delusion is a happy thing

  3. QE is probably beginning right now or has already begun. Does anyone actually believe the garbage that they will wait until September. How can anyone really know because they are not transparent as they say they are. They are not audited despite what they say and they would resist a true audit.

    1. Never really ended if you include credit creation, as QE enabled the banks to lend trillions more – and they did. Until amount of debt declines, debt issued behaves EXACTLY like printed money.

      1. It’s such an easy concept to understand and yet, there’s a plethora of allegedly well-educated “economists,” analysts and bloggers who fail to understand the subtlety of the argument.

  4. On March 29, according to Basel III, Gold held by Commercial Banks will be upgraded from a Tier 3 asset to a Tier 1 asset. PHYSICAL gold will count as capital the same as a treasury bond. This would improve the capital adequacy ratios for those banks with physical gold. So they see gold as a “riskless” asset‘‘.

    What about those banks who leased the gold out and don’t have it in possession? Will they still be able to count it in their capital adequacy ratios?

    It doesn’t seem to have any big upside impact in the dollar price of a gold ounce.

    It just means these banks will be able to make more subprime loans…lol

Leave a Reply

Your email address will not be published. Required fields are marked *

Time limit is exhausted. Please reload CAPTCHA.