FOMC Statement Aug 5
"Economic activity expanded in the second quarter, partly reflecting growth in consumer spending and exports."
Translation: Exports are actually in contraction. Reported "increases" in consumer spending and exports erroneously attribute price increases as growth.
"Labor markets have softened further and financial markets remain under considerable stress.
Tight credit conditions, the ongoing housing contraction, and elevated energy prices are likely to weigh on economic growth over the next few quarters."
Translation: The economy and financial system is in trouble. Expect little to no economic growth in the next few quarters.
"Inflation has been high... and some indicators of inflation expectations have been elevated.
The Committee expects inflation to moderate later this year and next year, but the inflation outlook remains highly uncertain."
Translation: Inflation is out of control, we hope it will moderate or abate, but have no idea what it will actually do.
"Although downside risks to growth remain, the upside risks to inflation are also of significant concern to the Committee."
Translation: We are caught between a rock (collapsing emasculated non durable economy) and a hard place (commodities & currency debauch based stagflation)...
Our ammo to fight on both fronts has run out, and we are quite clueless what to do next.
Full Statement
Translation: Exports are actually in contraction. Reported "increases" in consumer spending and exports erroneously attribute price increases as growth.
"Labor markets have softened further and financial markets remain under considerable stress.
Tight credit conditions, the ongoing housing contraction, and elevated energy prices are likely to weigh on economic growth over the next few quarters."
Translation: The economy and financial system is in trouble. Expect little to no economic growth in the next few quarters.
"Inflation has been high... and some indicators of inflation expectations have been elevated.
The Committee expects inflation to moderate later this year and next year, but the inflation outlook remains highly uncertain."
Translation: Inflation is out of control, we hope it will moderate or abate, but have no idea what it will actually do.
"Although downside risks to growth remain, the upside risks to inflation are also of significant concern to the Committee."
Translation: We are caught between a rock (collapsing emasculated non durable economy) and a hard place (commodities & currency debauch based stagflation)...
Our ammo to fight on both fronts has run out, and we are quite clueless what to do next.
Full Statement
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