The Fed Will Remain Exceptionally Chickensh*t for an Extended Period of Time

Sorry, I tried to come up with a more appropriate, mildly professional headline for this but I'm pretty much fed up (no pun intended) and refuse to waste my good words on those chickenshit bastards at the Fed with not even one low-hanging ball to share between themselves.


Let's get technical, shall we? At least for a moment. Gold is still surging (nothing new there) and hopefully the Reserve Bank of India is happy with its decision to snatch up 200 tonnes of IMF gold at deep discount prices ($1045 an ounce will seem like a discounted price before too long).


Gold for November delivery rose to $1,094 an ounce on the Comex division of the New York Mercantile Exchange, the highest level for a Comex front-month contract. The thinly traded contract ended up 0.2% at $1,086.70 an ounce.

But we aren't talking about gold, we're talking about why the Fed doesn't have a single cojon in the building, aren't we?

Zero Hedge did a quick bit on ex Dallas Fedhead Bob McTeer on CNBC worth peeping before we get into this that you can find at "Our Leaders Dilute Our Dollars To Pay For The Sins Of Everyone"; Plus The Daily Santelli-Liesman Beatdown

It is somehow not totally shocking that Robert McTeer, former president of the Dallas Fed, has no idea what an asset bubble is and how everyone lining up to short the dollar is conducive to just that occurring, and subsequently exploding.

Nope, not at all.

Moving along now, 2:15p came and went and no shock, the FOMC has not grown a pair between the last meeting and today:

In these circumstances, the Federal Reserve will continue to employ a wide range of tools to promote economic recovery and to preserve price stability. The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period. To provide support to mortgage lending and housing markets and to improve overall conditions in private credit markets, the Federal Reserve will purchase a total of $1.25 trillion of agency mortgage-backed securities and about $175 billion of agency debt. The amount of agency debt purchases, while somewhat less than the previously announced maximum of $200 billion, is consistent with the recent path of purchases and reflects the limited availability of agency debt. In order to promote a smooth transition in markets, the Committee will gradually slow the pace of its purchases of both agency debt and agency mortgage-backed securities and anticipates that these transactions will be executed by the end of the first quarter of 2010. The Committee will continue to evaluate the timing and overall amounts of its purchases of securities in light of the evolving economic outlook and conditions in financial markets. The Federal Reserve is monitoring the size and composition of its balance sheet and will make adjustments to its credit and liquidity programs as warranted.

You dumbasses, what are you doing?

The Fed has essentially sent yet one more shot across the world that declares in no uncertain terms that it is standing around with its limp dick in its hand waiting for the blood to start surging again. Ain't happening, boys, and while the rest of the world is boning each other in an orgasmic explosion of SDRs, gold, and free trade, we'll be sitting around with our worthless dollars and limp, ball-less central bank to blame.

Not that any of this was a surprise

Market Ticker has a translation but the point I really took away from all of this is that there's nothing left for the Fed to buy. No, I'm not making that up.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.