The Annotated Annotated Fed

Tyler Durden's picture

We have gotten to a point where not only do we need annotated explanations of Fed speak, but annotations of the annotations, in this case of the Fed's deemed oracle, who for many years, has been the WSJ's Jon Hilsenrath (for some particular nuances of the "editorial" relationship between the New York Fed and the WSJ read here). Today's article in need of "between the lines" interpretation is Hilsenrath's "Bernanke to Open Up as Fed Embarks on Era of Glasnost" which can be read here. Luckily, Gleacher's Russ Certo comes to our aid, in attempting to predict what the general population can expect both next Wednesday during the Fed's first ever press conference, as well as for as long as Bernanke still is given authority to debase the US dollar.

From Gleacher's head of rates, Russ Certo:

This is a very thoughtful article about the Fed and its embarkation of, I suppose, a new communications strategy.  As a reminder, Chairman Bernanke is holding his first press conference next Wednesday.

In the past month alone, 16 different Fed policy makers have given more than 40 formal addresses, in addition to television, newspaper and newswire interviews. They espouse different views, not only on when to reverse the Fed's easy-money policies, but HOW.  The Chairman's commentary on Wednesday will be an important event, more than is being billed. 

I just read this piece which is comprehensive and insightful AND IT LEANS MARGINALLY HAWKISH.  For instance, there is citations like the following:   "A tightening cycle is the hardest thing for a central bank to do," Mr. Bullard said in an interview earlier this month. "It's tumultuous times for monetary policy, and that's why you're hearing more from the Fed."

I think there is asymmetry in the market right now.  With the moves in commodities, S&P earnings (on fire), SILVER and what the metals markets are telling you, and the Chairman's low approval rating, would suggest Ben is achieving his goals.  In a sense the less popular a central bank chairman is, the more he has likely achieved his objectives and the citizenry is ready to tar and feather given rising good and gas prices, just in time for the summer driving season.

DO NOT underestimate central bank policies as they apply to foreign exchange markets.  The USD is WEAK and illustrates almost no leadership given continued and rising sovereign funding costs.  The S&P chicanery isn't helping but this is precisely the time that a central bank can be motived to give lip service to the pace, maybe not the ultimate direction, of the FX trend.  Chronic USD weakness here, although maybe the ultimate longer term objective to devalue our debt obligations, may be an important consideration for tongue and cheek tightening themes to be espoused in the all important press conference.  Asymmetry to the front end of Treasury market.


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repete's picture

Did you notice that every one of those signatures was Linda Green?


FOC 1183's picture

Beautiful.  Tyler, tell Raymond to paint Mozilo and let 200 people sign Linda Green 

Michael's picture

The US monetary system is like the Tacoma Narrows Bridge.

Tacoma Narrows Bridge Collapse "Gallopin' Gertie"

long juan silver's picture

That was a CIA plot. Completely. And proven I might add.

Ident 7777 economy's picture

Forerunner of a WTC 7 'pull' ...


... eggs, broken in egg crates, forerunner of an WTC bldg #7 'pull' ...

h3m1ngw4y's picture

right and these proven cia types are so lol

oogs66's picture

the whole market is starting to have that tacoma narrows bridge feeling

Hedgetard55's picture

I think the Bernank is looking to be named the "Duke of New York" after the reset, when he finally crashes the financial system.


"You're the Duke of New York, you're A number one!".

Bam_Man's picture

They are reduced to holding press conferences now that their credibility is zero.

So now we get to listen to their "hawkish" talk while they continue to debase the dollar and thereby gradually extinguish the nation's unpayable sovereign debt.


narnia's picture

Talk the hawk. Walk the dove.  

Here's a question for the press corps:  Ben, if I asked you yesterday whether you could guarantee that the Fed were really going to contract its balance sheet in the next 12 months, what would you tell me?  That's a liars noose.

tomster0126's picture

yepp...boring, we're just watching it all unfold piece by piece.  just waiting for the new currency to come around, I'm eagerly anticipating what's coming next.

tony bonn's picture

the fact that bernankrupt is holding a press conference should send chills up everyone's is a private kleptocrat who is assuming the powers of state and officialdom and proves the total and complete politicization of the private banking cartel...or more accurately, the complete and total suzerainty of the kleptocrats over the plebes....

fuck you ben...

the fed is a complete hoax and fraud upon the american people....but a people who believe in magic bullet theories are doomed to such fates....

Cvillian's picture

I can already picture Bernanke and company in front of a board full of individual photographs deciding who can attend, who can ask questions, what questions they intend to ask, etc. This will be painfully scripted. 

buzzsaw99's picture

Bernank's first press conference: Can't touch this Can't touch this. My, my, my clownbux hits me so hard Makes me say oh my Lloyd. Thank you, for blessin' me, gonna make, a trill or three...

ratava's picture

dudes check out sallie mae

I am Jobe's picture

Did they hire some Mafia Bosses to beat up on the Graduates or are they just waiting for the student loan collapse? As I had said before Education will be useless in the USA.

Destinapp's picture

This video explains Bernanke to the "T"


Destinapp's picture

This video explains Bernanke to the "T"


tomster0126's picture

lovin it...someone needs to make a Bernanke video that looks like the South Park depiction of Saddam.  The Hussein characterin South Park was epic, if only Parker and Stone were financial gurus as much as political.

Destinapp's picture

This video explains Bernanke to the "T"


Destinapp's picture

This video explains Bernanke to the "T"


Jonas Parker's picture

Bernake's Press Conference will contain about as much truth as a FRN contains gold! "Bend-Over-And-Trust-Me" Ben will, fortunately find out that the the American people aren't completely asleep (I hope!).

MonkeySmoke's picture

What is the difference between helicopter ben and the Godfather? Nothing that I can see. ben is just another "Don" of another criminal organization that, hopefully, will be brought to justice sometime before he dies. It would be a great day to see ben, geitner, gensler and the other criminals hanged in Times Square. That would be a pay-per-view bonazana that would make Thomas Jefferson smile in his grave.

Blotsky's picture

And Andrew Jackson would be dancing the Charleston on the gallow.

SDRII's picture

"predict what the general population can expect both next Wednesday" - gen pop could give a shit since most would confuse bernanke with the minder from bill and teds. Pure Theater. the people who matter know exactly what the beard is doing not saying. Maybe the Putin speech and the less than reliable DEBKA reporting China/Russia arming Gadaffi is a debutant


rookie's picture

i hope a reporter is asking:

(i) are you selling put options on long term treasuries to keep yields down?

(ii) are you selling put options on the vix to keep volatility down?

(iii) is it within your legislative mandate to sell derivatives?




Sudden Debt's picture


All the reporters will be screened.

Next to every reporter will stand a NSA agent holding a needle filled with morphine.

The thoughest question posed will be: How did the shrimp coctails from the golf of mexico taste?


Yesterdays speech of Obama was also very good: WE ALL NEED TO WORK HARDER!



Ident 7777 economy's picture

lol ... you're having just waaaay too much fun!

FIAT_FixItAgainTony's picture

spot on sudden!  you're my kind!  it's on!  f these bastards already!  can't happen soon enough. 

420 silver bullets and silver shields bitchez !

Montgomery Burns's picture

If my memory serves correctly, the Soviet Union collapsed not very long after "Glasnost" was introduced as their policy.

A Man without Qualities's picture

I wonder if it will be like the Bush conferences - they will start out with people being cordial, but as they start asking more difficult questions, he'll start fucking up the answers and then he'll just turn up totally spaced out on drugs and it will be too embarrassing for anyone in the press core to comment?

slaughterer's picture

Fuck cordiality when it comes to this criminal.  Perp walk please.

Jay Gould Esq.'s picture

RE: The Fed's "new communication strategy."

A sample of same now follows ( this particular excerpt, outlining the monetary consequences if no "QE3" is instituted ), annotating the previously annotated; a product of the Open Market Committee's newfound "Glasnost:"

Twas brillig, and the slithy toves
Did gyre and gimble in the wabe;
All mimsy were the borogoves,
And the mome raths outgrabe.

"Beware the Jabberwock, my son!
The jaws that bite, the claws that catch!
Beware the Jubjub bird, and shun
The frumious Bandersnatch!"

slewie the pi-rat's picture

a press conference?  tyler:  i think you shld seriously consider sending trav & geko with baby_Blythe as tek support. 

lsbumblebee's picture

Chairman Ben Mao can stick his Glasnost where the Perestroika don't shine.

Abolish the Fed. Period.

rnjboy's picture

I think this is the day after the (silver) options expiration isn't it?

I am Jobe's picture

The entire model is F'd up. Americans are receiving more benefits than paying in. WTF, next year it will be around 70 percent or higher with more layoffs and less taxes. Vaseline is the only hope.

robnume's picture

Hey Guys! I still have some very credible legal briefs in which ALL of the standards for RICO apply. I am a lowly paralegal and cannot file work product without an attorneys signing off on my work product. I do not work for, nor do I know personally an attorney or group of attorneys. Although there are many attorneys in my family, they have too much invested into keeping the status quo, so "Stuck" am I. Somebody out there must surely know an attorney who is interested in going after Treasury, Fed Reserve Cabal, or US Congress. Indictable acts under Title 18 - and these are but a few prosecutable felonies committed by the Fed, Congress, and/or US Treasury, et. al. Sections 201, 659 which, if applicable,  are automatically also prosecutable under section 664 which applies to embezzlement of pension and/or welfare funds - this is true of section 659 - not sec. 201. Sections 1029, 1084, 1341, 1343, 1344 (ESPECIALLY 1344!!), 1427, 1503, 1510, 1512, 1951, 1952, 1955, 1956, 1957 will also meet legal standards. HELP THE LITTLE GUY SOMEONE!!

FIAT_FixItAgainTony's picture

your answer is we do that ourselves in mass.

the system is broken, therefore common law must first be restored.

see my post under apmex eagle article.

separately we are stuck.

together we rule.

FIAT_FixItAgainTony's picture

btw rob, love to see the legal briefs, my accomplices and i know how they can be properly used.  have a site you've posted them to?

robnume's picture

FIAT, I have not yet done a thing with them, other than to research and write the briefs. The legal standards under Title 18, with stated sections in my original post, are met. Many of the sections dealing with fraud can be applied to any number of institutions and/or agencies. The briefs are still in my Microsoft 7 Office. I plan to pdf them this weekend. Happy for you to access these; I am a regular in the comments section of this blog.  I'm loathe to give my email to a stranger, but I'd sure like to help out. Let me know how we can keep in touch and I'll get right on pdf'n. I appreciate any help you might be willing to give. I live in the No. Bay area of S.F.

Yen Cross's picture

Let me rename this post? A lesson in futility.

thames222's picture

"would suggest Ben is achieving his goals."  is he serious?  is he living in America right now?  lol, what a crock of tomfoolery.