The FOMC Meeting Is A Complete Joke

The result has become as predictable as the sun rising in the east and setting in the west:

  • Federal Reserve leaves interest rates unchanged
  • Fed signals rate hike still possible at ‘next meeting’
  • Fed says economy expanding at a moderate pace
  • Fed says inflation continues to run below Committee’s long run objective

A monkey sitting a type-writer could write that script.  The Fed isn’t going to raise rates at the next meeting and the economy is getting worse, not better.  Everyone knows that.  It’s appalling that the members of the FOMC – supposedly highly educated economists and experienced financial market professionals – choose to blatantly insult our intelligence with these statements.

If the FOMC members actually believe that the economy is “expanding at a moderate pace,” I’d love to see the data upon which they are basing this conclusion.  Because the real-world data streaming from just about every source of information other than the Federal Government shows that the economy is already mired in a recession.  Perhaps the FOMC members ARE the monkeys sitting at the type-writer writing those headlines…

John Williams of does by far the most thorough dissection and analysis of the primary economic data of anyone of whom I’m aware.  Here is his assessment of the the U.S. economy and the Fed’s unwillingness to raise rates even one-quarter of one-percent:

Indeed, symptomatic of a financial system in serious distress, the FOMC remains unable or unwilling to move decisively on raising interest rates, to move the financial system towards monetary normalcy. Continued inaction or waffling by the Fed has begun to shift the focus and concerns of domestic and global investors away from what appears increasingly to be perpetual moribund economic activity into the areas of systemic instabilities, prospective or otherwise, that are so troubling to the U.S. central bank…

The U.S. economy remains in contraction (see Commentary No. 747, Commentary No. 751 and Commentary No. 755), with a variety of key indicators, such as industrial production, real retail sales and revenues of the S&P 500 companies continuing to show recession. Although formal recognition could take months, consensus recognition of a “new” recession should gain relatively rapidly, in tandem with a variety of monthly, quarterly and annual data reflecting the downturn in business activity.  LINK

I keep coming back to these graphics, but for me they encapsulate everything about the Federal Reserve, the zoo known as the Federal Open Market Committee and the insidious, catastrophic corruption that has completely engulfed the U.S. economic, financial and political system:



12 thoughts on “The FOMC Meeting Is A Complete Joke

  1. Well, the FOMC itself is a complete joke. (Or rather, an insult & blight on humanity.)

    So it’s no wonder that the FOMC meeting is a complete joke.

  2. LMAO Dave this charade is beyond ludicrous. I figured as soon as they took their thumb off the PM market this morning this was coming. I was pissed at first but then it struck me as tragically humorous that we have devolved to this. Funny thing is EVEN the FED is reporting the economy sucks so how can they even puke this out and keep a straight face. Case in point this one yesterday from the St. Louie Fed on why 1/2 the 25 year olds are still living at home….hint it ain’t Mom’s cooking

  3. It is using the threat of a rate hike as a monetary tool to move markets up or down. Markets up means a hawkish rate hike talk. Markets down means dovish rate hike talk. And of course, slam gold/silver to send the message that the Fed made the right decision.

  4. Oh forgot to ask are you reading anything into the fact that they chose to let the metals run up before they smashed them? Like maybe to many orders below the market and they didn’t want them filled at lower prices? A change in tactics to suck more at higher prices and then stop them out….rotten bastards

  5. It’s more than sickening to watch sycophant fools on CNBC engage in
    supposedly meaningful discussion as if the fed farce has anything to do
    with anything. What a disgusting group of brown nosing liars. I have more
    respect for whores walking the street then the group of financial whores led
    by Steve Leishman who knowingly try mightily to bullshit the people.
    Doesn’t this asshole know how much he’s despised.
    Keep up the good work Dave. You’re one of the good guys. When your
    site was down yesterday I thought maybe TPTB had you shut down and
    that would be a tragedy for all of us seeking the truth.

  6. Educated is obviously is over used and over rated.
    Education is not a panacea. Lots of people have “book
    smarts” but common sense and logic, not so much.
    I leaned in physics that linear equations don’t really work
    in the real world due to the one variable cannot be accurately
    be quantified. The fed with all their education still cannot figure
    out that part of the equation.

  7. Seen in German Media n-tv : translated ” The movement of Bonds and Gold after the announcement shows, the Majority of Investors is getting ready for a rate hike in December”. Its always the same, manipulate the markets and use it as explanation that the Market bought it.
    I agree with you Dave no chance for a rate hike.

  8. Yes, just frigging boring that FED. Always the same story: “We don’t hike this time but we might do it next time.” What a bunch of asswipes!

  9. Dave – A bit off topic but you gotta see Rummy Emanuel’s look in this article from the Chicago Trib today – priceless. Who says the little guy on the block can’t be a bully?
    so….residents collectively in the people’s republic of Chicago are gonna get a nice big property tax increase of over 500 million (doesn’t really make a dent in the pension mess here at all) equating in one of the last articles that I read to a 900.00 increase per annum on an equivalent 250k home. I may be off a bit but that is still a hefty increase for many who live in the city on limited income and who have not seen a salary increase in years. This does not end well.

  10. Mr IRD, is not “waffle” is “forward, guidance” :- ) …Jim Rickards. Silver against the Aussie$ is up almost 2 buck’s! Love your work Mrs Yellen! seriously there are millions of “smart” people going to “Cash” and that is why i’m betting …hyperinflation!! because no one can fail!! the new normal. Can $US make christmas? any one running a book?

  11. French Billionaire Takes 5% Stake in Warburg Pincus; Will Become Senior Strategic Partner

    The family holding company of European billionaire Marc Ladreit de Lacharriere has made an investment into global private equity company Warburg Pincus.

    Founded in 1966, New York-based Warburg Pincus is private equity firm with more than $35 billion in assets under management in an active portfolio of more than 120 investments. Since inception, Warburg Pincus has raised 14 private equity funds, which have invested more than $50 billion in over 720 companies in more than 35 countries. Former U.S. Treasury Secretary Tim Geithner joined the company as its president last year.

    Marc Ladreit de Lacharrière
    He is a former member of the Steering Committee of the Bilderberg Group.[10]

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