Wednesday, June 20, 2012

Fed Will Not Add Reserves

Instead, the Bernanke bunch will continue "Operation Twist", a looney program that results in the Fed buying long term Treasury securities, while simultaneously selling short-term securities.

Given that money supply (M2) has already been trending lower, the likelihood of another major crash in the manipulated stock market and economy has increased substantially. Such a crash will, of course, be a major problem for President Obama in his election bid.

The full Fed statement is here.


  1. M2 annual growth, for the 3 Months from Feb to May 2012, is now 4.4% (up from 4.0% prior I believe).

    Monetary base annual growth, for the period May 30 to Jun 13, increased to $2,644 billion, from $2,614 billion.

    The Fed is adding reserves, just not very much.

  2. The key will be the tone of Chairman Bernanke during his press conference that starts at 2:15pm. The downbeat FOMC Statement leaves the door wide open to a possible future QE. Will Bernanke keep that door open at this press conference?

  3. Operation "Double Cross"???

  4. Inflation is not immediate. Unfortunately, things don't worsen until the scumbags start shedding their paper assets into the black hole. This IS a game of musical chairs... who's controlling the music???

  5. It seems the FED needs an excuse like a falling stock market to execute QE 3. They will have it soon enough. August will bring QE 3.