FOMC Minutes Summary - Bernanke Waves White Flag

Check out the video below.  Bernanke has nothing left.

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Marketwatch

WASHINGTON - If you’re not interested in 10 pages of two-column verbiage, here are the condensed minutes from the Federal Open Market Committee meeting of Aug. 9:

“The economy’s lousy. It’s not our fault. We can do more things but they probably won’t work, or at least not work well.”

To be fair, the Fed does have ideas. Most we’ve heard before: buying more bonds, buying longer-dated bonds, cutting interest on the reserves it pays to banks that park money.

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Marketwatch

The options with the most support were more asset purchases and increasing the maturity of the Fed’s balance sheet. A “few” favored cutting the interest on excess reserves the Fed pays to banks. The Fed will discuss these options at its two-day meeting on Sept. 20-21.

And there were some on the FOMC who thought the central bank was out of ammunition.

“Some participants judged that none of the tools available to the FOMC would likely do much to promote a faster economic recovery,” according to the minutes.  “Consequently, these participants thought that providing additional stimulus at this time would risk boosting inflation without providing a significant gain in output or unemployment.”

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An US F4 Phantom Jet tests the strength of a concrete wall built to withstand a nuclear blast by crashing into it at 500 MPH.  Watch the plane turn into dust.

We assume the symbolism of the above video is obvious.

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Related story:

Drunken Bernanke Tells Everyone At Neighborhood Bar How Monumentally Screwed The U.S. Economy Really Is

Comments

[Ken Brodeur]

Being a forgiving sort, I would give amnesty to the criminal Fed by allowing them to keep their freedom and wealth, under one condition. END THE FED, allow the US Congress to print money (This would be the only job of the FED) interest free and spent into the economy for the welfare of ALL Americans, by fixing roads, the postal service, social security, ending foreign adventurism, bringing home all the military, selling off the foreign military bases, reestablishing the Glass-Steagle Act, ending fractional reserve banking, ending the income tax, charge tariffs on all international companies and corporations, charging a 5% tax on all financial cash asset of more than $250,000, ending compound interest on all loans and credit and a tax credit for international companies hiring Americans

[DailyBail]

Economy Deeply Divides Fed

http://online.wsj.com/article/SB10001424053111904332804576540651581740740.html

[DailyBail]

Takeaways From Fed Minutes

http://blogs.wsj.com/economics/2011/08/30/takeaways-from-fed-minutes/?mod=WSJBlog&mod=WSJ_EC_RT_Blog

[DailyBail]

That's a hell of a list Ken. If we're going to give the power of printing back to Congress via the Treasury, we need limits super-imposed. Otherwise, it could get worse than Bernanke in charge of printing. Can you imagine how whatever party in power would spend (print) in order to win the next election. And eliminating the income tax without reducing spending means the dollar would be destroyed at an even more rapid clip than currently seen.