No, not the Argies. The Federal Reserve Board. What a show that was today. The headline is that the Fed will continuing with the tapering, knocking another $10 billion off monthly purchases and keeping the accommodative monetary policy in place for the foreseeable future. Then Janet got up to explain all this...or not, as the case may be.
For the first time that I can remember, the Chairperson of the Fed essentially admitted she had no idea what the hell is going on, our guess is as good as hers and therefore, why change anything? She also said the economy was getting better, the job picture was getting better and there was no sign of any inflation to cause worries. Absolute horse crap on all accounts.
Inflation is rapidly rising on all things that human beings need to stay alive. Food, fuel, clothing, air fare and just about anything else one can think of. What isn't going up are all the things in the Fed's little basket which nobody can name because nobody needs them. It is a joke.
The job number is precisely the same as it was at the end of 2007. Only problem is the country has 16 million more people. The job participation rate, however, is down from approximately 67% to 62% which means a bunch of people have simply given up. Wages are stagnant, wage growth is slow. Oh by the way, Janet, the reason for this is that the economy stinks and why does it stink? Well, not because of you Bubbala, but you can't fix it either despite how much money you leave floating about in Fed Nation. It stinks because The Leader is out there talking about oceans with this DiCaprio guy who apparently earned his expertise on the subject by drowning on the Titanic. It stinks because all you geniuses passed Dodd/Frank which means the banks wont take a risk. It stinks because the morons in the Patent Office decided today that they are the guardians of morality as to what one names his franchise, never for a moment believing that if a name is offensive the product will not be bought. The country is rudderless as the latest opinion polls indicate and the Fed can't fix it.
What you can do, however, and are doing (along with Super Mario) is creating the most God-awful bubble in equities and crap fixed income, much of which is sovereign and none of which is sustainable. Of course when everyone decides at the same time to unload, where is the bid going to be to maintain an orderly market? Not at the banks as in the past because you see, they can't do that any more and wont that be a lovely war! You are also putting a severe hurt on those of us living on a fixed income who sit and watch your non-inflation beat the crap out of our savings and income. And in the big picture none of this has helped and it never will. And yet you press forward with the same nonsense policies, clearly indicating that you are clueless. Oh while, we are at it, you might call to mind the definition of insanity about doing the same thing and believing the result is going to be different. Insanity: that's a step or two above nuts.
Oh yeah, in case you're interested Spain went out of the Cup losing 2-nil to Chile. More people care about that than what you had to say today.
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