There's reality ... and there's FED-land

Just what exactly are these Fed guys smoking? Seriously. Oil is up another $1.50 or so today ... and both technically and fundamentally looking set to run to new highs. Gold is trading around $660 and ounce. Market-based indicators of inflation (like the TIPS vs. nominal Treasury yield spread) are blowing out. The dollar is dropping like a lead balloon. And yet here, on the wire, Atlanta Fed president Jack Guynn is saying:

"I am of the view that we are very close to having Fed policy properly calibrated for now."

The market is SCREAMING that the Fed has it dead wrong. It's saying that money is STILL too easy. But these Fed "geniuses" just keep going on their merry way, saying everything is hunky-dory. It must be nice to live in FED-land instead of reality.