The FOMC Meeting on 21st June shows Utter Confusion and unprepared FED for the Future of the world. The Analysis of the Indicators reveal failure of ‘ Asset Programme’ in spite of having 9 month duration and $600 billion spent, failed to stimulate the economic growth. It is not understood Which of the Dual Mandate QE- served ? Of course it enrooted the “ Transitory” Inflation in the Economy.
The Disease of QE-2 :
The ‘Transitory’ Inflation has now turned into ‘ Permanent Inflation’. The ‘extended period of time’, accommodative Policies have served only to the Over pampered US financial Institutions, Who have failed on US Economy. The ‘ Ghost’ Housing Inventories are Haunting Economy, while Leading Indicators dropping the shoulders. Unemployment..?
The Easy Money is now storing the Values in Commodities, Stocks.While Bond Yield in the Sea Bed. The Value of Money has eroded considerably for near term. The Recession is now Converted and Changed itself in ‘Stagnation+ inflation’. This Economic Traction is classically slows Growth.Employment and slowly deems all.
The FED’s Faith of falling Inflation is the Last chapter, where the Inflated Prices of Assets, commodities take a Plunge and what may appear to be a Double Dip’
The Divided House :
In the final Readings the FED members discussed and Decided to Take Sides for and Against Inflation and Unemployment. It seems the Teams within FOMC represent different Mandates
It will not be surprise when divisions in FOMC rumble-Churn the Divided House. Lets Hope it will only shake- Shudder, alas Helplessly.
But, its admittedly True that, ‘ No one can FED ‘, only FED fights with Itself.
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