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.

5 comments:

  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.

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  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?

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  3. Operation "Double Cross"???

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  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???

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  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.

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