by John Galt
August 1, 2012 05:30 ET
Beyond language stating that the Fed will be there to support low interest rates for the long term, price stability, inflating being under control, and concerns about the economic data reflecting lackluster growth there is nothing of interest coming from today’s Fed decision in this author’s opinion. The rally in equities was a purely rumor driven fantasy based on the delusion that the economy has stalled enough to justify another round of Quantitative Easing. This will not happen at this meeting.
The Fed has indirectly hinted at other concerns about being subservient to the Executive Branch and some of the demands quietly being directed towards the central bank by the regime. This concern relates to history in a very direct manner as the view of some financial industry participants is that indeed, Obama views his role as a new FDR with unlimited power and few if any Constitutional constraints. A bland FOMC statement from today’s meeting could indicate that the Fed is willing to risk a total economic stall if not outright minor recessionary period to influence the elections just enough to ensure a Romney victory because after all he is one of their own. This is a risky game as Obama’s machine has indicated through several actions in the past that prosecution and persecution of its enemies is something they seem to enjoy if not engage in on a regular basis.
Today will be the first of several battle of wills between now and the election. As onee of the characters stated from the Matrix series of movies, the Fed will be making a similar statement today regarding the regime:
“I’ve survived your predecessors and I’ll survive you.”