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The FOMC Meeting Is A Complete Joke – Dave Kranzler

Wednesday, October 28, 2015 17:51

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(Before It's News)

TND Guest Contributor: Dave Kranzler |

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 Shadowstats.com 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:

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About Dave Kranzler:

I spent many years working in various analytic jobs and trading on Wall Street. For nine of those years, I traded junk bonds for Bankers Trust. I have an MBA from the University of Chicago, with a concentration in accounting and finance. My goal is to help people understand and analyze what is really going on in our financial system and economy. You can follow my work and contact me via my website Investment Research Dynamics. Occasionally, I publish on Seeking Alpha too. As a co-founder and principal of Golden Returns Capital, LLC Mr. Kranzler co-manages the Precious Metals Opportunity Fund, a metals and mining stock investment fund.