Minutes of the Federal Open Market Committee (THEY MESSED UP!)

Federal Reserve System ^ | July 14, 2010 | Federal Reserve System

[expat_panama]

The Federal Reserve Board and the Federal Open Market Committee on Wednesday released the attached minutes of the Committee meeting held on June 22-23, 2010 and of the conference call held on May 9, 2010. A summary of economic projections made by Federal Reserve Board members and Reserve Bank presidents for the June 22-23, 2010 meeting is also included as an addendum to these minutes.

[expat_panama]

The fed's minutes (link here) say they based their decisions on 'actual' numbers and here's the plot they included:

The fed's saying that Bush's gdp shrank and Obama's gdp grew, but it doesn't match with the 'actual' gdp numbers that come from the BEA  --the folks that actual measure the gdp:

Current-Dollar and "Real" Gross Domestic Product
Annual
	GDP in billions of current dollars	GDP in billions of chained 2005 dollars
2005	12,638.4	12,638.4
2006	13,398.9	12,976.2
2007	14,077.6	13,254.1
2008	14,441.4	13,312.2
2009	14,256.3	12,987.4

The gdp numbers from the BEA website show that Bush's gdp grew and Obama's fell (link here)

So, who're we going to believe, the BEA that measures the gdp, or the fed that bases our money supply on what they think the gdp is?

[expat_panama]

What’s the verdict here, did the Fed deliberately lie or do they have a political bias tainting their vision?

[SAJ]

Pete, if you'd like my view, the answers to your question are "yes" and "yes".

Just one man's view.

Coming down to Panama sometime in late August or September. Calling on RE agents, and lawyers and such. Want to travel around the nation a bit, no idea of my schedule, and, although I'm learning Spanish, frankly mycommand of the language still stinks.

Es cuál es, yo supone. De un modo u otro, aprenderé la lengua.

(Was that decently said?)

[mad_as_he$$]

“No thanks, I do not want beans on my fish”?

[Neidermeyer]

“I will not buy this record, it is scratched.”

[mad_as_he$$]

;-)

[expat_panama]

You've convinced me.  The Federal Reserve Board is delusional, deceitful, and politically biased.  Now I can better understand why I've sensed so much hatred for the fed from our brethren on the right.

[PatriotGirl827]

bookmark

[rolling_stone]

you need to roll your R’s

[misterrob]

Flood the market with stimulus and of course it has an impact. But, when you are financing 10-12% of actual GDP that’s not going to end well.

[10Ring]

Did they simply screw up the graph? They indicate they are using annual real gdp...if it was +2.1 in 2007, +.4 in 2008 and -2.4 in 2009, then you could simply move the dip over a year to 2009 and it would look a lot better (and coincide with the BEA number better). Still wouldn’t be a good excuse.

[Moonman62]

The Federal Reserve Board is delusional, deceitful, and politically biased.

They think they are gods of the economy. I don't think they favor one party over the other, but they do favor big government control, which at the federal level is both parties.

[expat_panama]

Did they simply screw up the graph?

That's what my first take was, that the graph was slapped together at the last minute by some GS-11 that was in a hurry for coffee break.  My problem with that is the fact that the numbers are made up.  Your thought that they may have just moved the year over is weak because 2010 isn't over yet so they couldn't put in a number.   Unless they were really sloppy, hmmm....

OK, so the Fed's either criminal or totally incompetent.   Swell.

[expat_panama]

they do favor big government control

I understand that Bernanke used to be Krugman's prof at Princeton.

[Mase]

I'd love to know what Bernake really thinks of Krugman. Especially now that he's won a Nobel. I picture Ben with a big face-palm when Krugman’s prize was announced. But who knows for sure? It is Princeton, after all.

[10Ring]

I say incompetent. It’s not like anyone in DC reads anything anyway. This graph is probably great compared to the crap in the healthcare bill.

[expat_panama]

Making that plot required a willful decision to ignore reality and fabricate data that supported a false belief. Some people call that lazy incompetence but imho it’s a moral failing.

OK, sloth itself may be a sin, but to my nose it smells worse that that.