Wednesday, October 13, 2010

We have a consensus, reality will go down the memory hole

The major stock indexes were all up today as the so called “news” circulates bout the Federal Reserve’s plan to do Quantitative Easing. Besides printing a bunch of money the Fed will set its inflation target higher to stimulate spending now rather than everybody waiting for prices to fall from deflation. This “two step” approach was put out in an Associated Press article late last night that has subsequently disappeared from the internet but this wisdom continues to be reflected in “legitimate” news stories.

Somebody is trying to get the Fed policy that they want by pushing the story in the media that the Fed is going to act a certain way and as the markets act on that “news” the pressure builds for the Fed Board to take this predicted action. A well worn phrase in the “news” lately is that the Fed is close to a “consensus” on implementing the QE2.

Analysis of the positions of the eleven voting Fed board members show that only two including Chairman Bernanke are in favor of it and three more are or less leaning that way. Let’s see, divide 11 by pi squared and factor the speed of neutrinos passing near a black hole and you get… oh yeah, six against which is the majority, are against it!

This is their new corporate media definition of “consensus”? Of course these are the same people who bought up the dictionary publishers and scrubbed the word “corporation” out of the definition of fascism. Ironically this was done in the mid 1980s, it went right down the memory hole. Today the right-wing think tanks employ large staffs to scrub the internet in a similar manner to keep Americans as ignorant as possible. They also employ economists that the media will quote as knowing what Fed policy is or rather what they want it to be. 

["The first truth is that the liberty of a democracy is not safe if the people tolerate the growth of private power to a point where it becomes stronger than their democratic state itself. That, in its essence, is fascism — ownership of government by an individual, by a group, or by any other controlling private power.”   — Franklin D. Roosevelt, "Message from the President of the United States Transmitting Recommendations Relative to the Strengthening and Enforcement of Anti-trust Laws]

Okay, back to the Fed, it seems it’s not the Grand Conspiracy that that we’ve been led to believe. It is really that the conspirators can’t come to a “consensus” on exactly how to loot and pillage the country. That’s okay though, the corporate media can come to a “consensus” on what to do and manipulate the markets until the Fed agrees.

This just came in after hours that the Fed will buy 32 billion in Treasurys over the next month. A disappointing amount for people who were predicting 500 billion but they are starting sooner than expected. Apparently we have a “consensus”.