Here's How Stupid Those Geniuses at the FOMC Are

Did you hear? The Fed is going to keep rates as low as possible at least until 2014. I know, I know, it was the news of the week, surely.

Anyone with half a brain in their head (yours truly included - though I think I'm running at 3/4 a brain on my good days) knew that at some point this year, the FOMC would throw out a strong signal reaffirming for the 100th time that they are all about free money for as long as they can manage it. Without it, the whole Ponzi will crumble. You know that. I know that. Bernanke knows that. Obama knows that. As WC Varones has so astutely pointed out time after time, there's no way out but devaluation.

Here's the funny part. Those idiots over there at the Fed (and by idiots, I mean the Board of Governors and Reserve Bank Presidents - no offense to the two presidents I actually don't loathe) actually believe they can continue pumping out cheap money to the world while somehow not only maintaining but IMPROVING inflation (remember: those of us who use and are paid in dollars want that number as low as possible while Fed assholes want that number to be higher so the government can pay back their obligations but not so high that the unwashed masses revolt). Yes, there's a chart that proves it (dark blue line is the central tendency of projections while the light blue is the full range of projections):

LOL! Does anyone else see how ridiculous this is? PCE inflation exploded in 2011 and yet will somehow magically plunge despite no real policy change on the part of the Fed? I'm no economist so maybe I'm too stupid to understand how that works, could someone please explain it to me? I'll be waiting. No, for real, I'm sitting right down the street from the Board in my DC condo, my door is open whenever the Fed is ready to talk.

These fools can't even make their fake number look reasonable and think somehow it will resolve itself without any real effort on their part to keep it in check? Someone let me know how this turns out... oh wait, I'll know.

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.


D said...

If I were the Fed, I would just keep changing my inflation benchmark every time it gets near 2%.

I believe they've already run that scam.

Anonymous said...

PCE does include food and energy. aren't you thinking of core PCE?

Good lookin out, fixed.