FOMC Meeting

Once again Bernanke mentions they may or may not be 'tapering' as the will be maintaining their $85 billion bond buying. Most predict that the 'tapering' will be coming in September but I highly doubt it.

The fed is the only game in town and they wont be taking the punch bowl away anytime soon. The last time they mentioned tapering, bond yields began to creep and this time it is no different. The party is going to continue as long as the bartender continues to supply the alcohol.

Unemployment has gone for the worse despite what the media says about the job creation. They failed to mention that most of the jobs are part-time jobs as opposed to full time jobs. Potentially this could be because businesses are scared to hire full time jobs due to obamacare and most business know that if interest rates rise, they may potentially be hitting another large downturn.

The fed's balance sheet is now about $3.6 trillion. Read that again.

All this inflation has not hit home yet because most of the banks that have received this money is leaving it with the fed to earn interest so we are not seeing the money being lent out to businesses. All this "QE" benefits wallstreet and speculators and none to the average person. This is why we are seeing record profits again for the big banks because essentially all this money printing also has gone into the markets and housing. These prices are being artificially being bid up and people feel 'richer' but the actual economy does not actually benefit. Once the velocity of money picks up and people are turning over their cash for products, that is when we will see inflation begin to pickup.

Also the GDP numbers came out for the U.S. and it mentioned that they grew 1.8%. Well if you delve into these numbers, you will see that they began calculating GDP a bit differently now and have revised it all the way back to about 1929. "Investments" now include production of movies, music, and tv shows to name a few. Making a youtube video potentially can get calculated as well.