On Wednesday, April 18th 2012, a nice little editorial by Gavyn Davies appeared in the FT print edition. It was entitled “Fed Doves are Biding Time Before Another Shot of QE“.
The case being made in that article is pretty clear: that the Fed’s recent “seeming” backpedaling from QE (or hawkishness) is just posturing — so that the market will not blast off in an inflationary ramp-up before the Fed’s next, inevitable, round of QE.
Unfortunately I cannot provide you a link to this article online, because when I tried to look it up, I found that it was replaced by something entitled:
That is pretty interesting because that title implies exactly the opposite argument as the print article it corresponds to. At least, to the naive reader, or those simply scanning the headlines and mouthing off (such as, we presume, virtually all TV news anchors and especially CNBS bobble-head “journalists”).
The original article wasn’t just slightly biased towards concluding that the Fed is simply doing a head-fake (as many of us “tin-foil-hatters” have been banging the table about): it was the entire point of the article. So to change the title as above, giving the opposite impression, is grossly dishonest. I am attaching a scan of the print version, with the bulk of the article (the wonkish middle portion) blurred out, so I don’t get sued. But the highlighted portions illustrate my point:
Of course, was there ever any doubt what is really going on here — the lap-dog financial media water-carrying for the Fed?