FOMC: Dull by design?

August 12, 2009

The FOMC is determined not to make waves, either in the markets or in Congress. Today’s decision looks to be a compromise between these two goals. Lawmakers such as Jim DeMint are yearning for an end to the credit easing policies. But going cold turkey might unsettle the Treasury market. Allowing the program to taper off gently is a good middle ground. With the Fed’s regulatory role hanging in the balance in Congress over the coming months, this is no time to attract adverse attention.

Even so, I think it’s a shame that the Fed didn’t follow the Bank of England’s lead in extending asset purchases. If the Fed is so confident that it can quickly suck back any liquidity then why not try to make sure the recovery gets off to a stronger start?

The economic revival will soon start to look quite statistically impressive, with growth rates of up to 3 percent. Beneath this there will be climbing unemployment and surging foreclosures. The Fed itself is forecasting tepid growth and mounting joblessness. They could still help ease this pain by striving to shave more off the cost of borrowing for consumers and businesses.

They have done a great job at helping save America from depression. But this is a limp end to a historic policy.

2 comments

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This economic system is a giant fraud, no a great joke.
In the real economy the world’s wealthiest countries would in fact be poorer than the third world country.
It’s probably a matter of resources, the Benjamin is morphing into Washington, but nobody wants to admit it.

Posted by Karl | Report as abusive

Sorry, did you just call Jim Demint “a Lawmaker”? Don’t, please.

I’ll tell you where I mainly got to know Jim Demint from, and what I know him as. He’s one of the prime contributors behind the 4,000lbs or so of garishly-written overwrought hot-button predatory junk mail cash-solicitation garbage I’ve recently had to spend time clearing out of an elderly, now-deceased relative’s home in San Francisco. No exaggeration – one (U.S., not metric) ton just of Jim’s sleazy rubbish, accumulated in one place in just the past two years.

Never mind how much Jim Demint leeched out of my elderly, now-deceased relative, (“Hey Jim, we got a live one!”) now it’s costing me a fortune to take the residual deluge of Demint’s incessantly turgid pleas for old folks to finance his lousy shenanigans, and have it shredded.

And this would be just one addressee out of however many thousands of elderly and infirm people into whom Jim Demint’s gang of relentless cash-milkers regularly sink their fangs to subsidize his toxic presence on the planet.

The guy’s not only a nasty piece of work as exemplified by every stupid, paranoid-obsessive position he ostensibly endorses – which is just plain wrong – he’s got a carbon footprint the size of Greenland to boot.

Everything’s fever pitch with Jim Demint – his powers of differentiation, political credibility and subtlety, on the other hand: zero. So let’s not start by quoting him on anything, if you don’t mind.

And yes, it’s so bad, I’m now writing a book about him. Jim Demint’s a blight on the American political landscape, no doubt about it. But in the end, weirder than a carnival clown, as the tale unfolds.

By deduction, Jim Demint’s motivation would seem to derive from collusion with the rottenest elements bleeding the Fed and thereby the American people for as much as possible in exchange for as little as possible by way of secured assets which should then by definition and by rights be owned by the American taxpayer – but if Demint prevails, never will be.

In that sense, it’s not only a shame – it’s another grand larceny scandal in the making, if Jim Demint were to get his way.

Demint’s no genuine “Lawmaker”, not of any repute. He’s just a crooked Manchurian hairspray Fundamentalist sucking all the personal bailouts he can out of the elderly and infirm on his inevitable way to Hell. Meanwhile, what he’s in favor of doing to America is insufferablly immoral and legally questionable, to say the least.

If the taxpayer were ever to get a fair shake out of the FOMC, well, that just wouldn’t be the world according to Jim, would it?

And so it goes.

Posted by The Bell | Report as abusive

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