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Are Republicans Preparing For A Push To Eliminate The "Maximum Employment" Part Of The Fed's Dual Mandate?

Tyler Durden's picture




 

Any chance America has to curb the uncheckable 'central planning' mandate recently adopted by the Fed, which in the absence of any fiscal policy for the next 2 years, has been delegated to a control over the entire US economy, would have to come from Congress which sooner or later will have to adjust the Federal Reserve Act of 1913, and especially the 1977 provision for the Fed's dual mandate of maximum employment and stable inflation. With everyone increasingly concerned the Fed's policies may spark hyperinflation, it only makes sense that going forward the Fed should be limited to just that: focusing on inflation, and leaving employment to America's legislative bodies. This overture is precisely what Congressman Mike Pense noted on CNBC earlier, when he said (staring at 6:45 into the interview): "I appreciate the independence of the Fed, but I think it might be time to reconsider the dual mandate of the Fed, that was established in 1977. I think we ought to get the Fed back in the business of focusing on price stability and preventing inflation and not also on this dual mandate of full employment for the country. It's creating confusion here. Printing money is no substitute for sound fiscal policy. That's all we are really doing here and I think the reason you are seeing leaders across the country, and leaders across the world denouncing this action by the Fed is because they know it's going to be inflationary, and it seems to be an effort to monetize our debt... We out to get the Fed back on that individual mandate of price stability and controlling inflation and the money supply as opposed to also having a dual mandate of full employment... I think the Fed ought to be about the mission of focusing on protecting the fundamental strength and integrity of the dollar and protecting the assets of the American people."Is this the first shot across the bow of how the republicans plan on busting Blackhawk Ben's rotor?

Full clip (relevant section starts 6:45 in):

 

 

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Mon, 11/15/2010 - 17:23 | 728485 gloomboomdoom
gloomboomdoom's picture

Mike Pence is a Zionist and only cares about protecting one "thing"

Mon, 11/15/2010 - 17:47 | 728557 svendthrift
svendthrift's picture

HEY.

Mon, 11/15/2010 - 18:13 | 728614 UpShotKnotHoleGrable
UpShotKnotHoleGrable's picture

OTOT , yeah watch this shit and tell me why were getting our asses kicked, fucking funny shit, comedy of fucking errors and theyre still killing us?!? PATHETIC ! same as saigon! FUCK YOU! amen!

http://video.pbs.org/video/1423567086/

they are pathetic but our response is even more pathetic!!!!!!!! same shit!!!!! man! have petraasss ask macnamara how to quantify that the jokers of the central groups vs trillion dollar pentagon machine taxpayers ! fuck me!!!!!!!!

 

Mon, 11/15/2010 - 18:40 | 728675 High Plains Drifter
High Plains Drifter's picture

Almost all of them care about one thing, that is the trouble with our government. It has been captured by a foreign entity. Tell this huckleberry to call for a end to all wars and a severe reduction in military spending along with the elimination of the FED and he might get my heart rate going faster. Otherwise this stupid postering has been seen before and frankly at this late stage, I could care less what almost any of them say. i know it is all bullshit and a complete waste of time to hear them move their lips and act like they are doing something.  I have no respect for any of them nor do I believe anything they have to say.  They are my enemy for what they have done and allowed to happen and for this, maybe one day real soon, that problem can be taken care of one freakin way or the other, as far as I am concerned.

Mon, 11/15/2010 - 19:20 | 728787 svendthrift
svendthrift's picture

Read Henry Ford.

Mon, 11/15/2010 - 19:40 | 728841 High Plains Drifter
High Plains Drifter's picture

I have. Dear old Henry knew what was going on. No doubt about it. Henry was an American nationalist. Even at that dark hour in our history, many of our national politicians has already abandoned the America first policy in favor of internationalist desires. So we fast foward to today. One more thing. The Kennedy family played in the sewer. They swam in it all day long. They also knew what was going on. So when we look back at the history of the Kennedy family, we can see what happens to certain folks in the political arena especially when the do not wish to play ball shall we say, with the power of hidden hand. One may wonder why today, so many in our congress and senate, do a tap dance when AIPAC and the ADL comes a calling. There is black mail, there is finanical help, there is.........threats on one's life, yes it is all in the game, we call that silly thing named American politics.

Now this. Florida truck dealer offers free Ak47 with purchase of quality used truck. Sales are picking up. Ha ha ha

http://news.yahoo.com/s/ap/20101115/ap_on_fe_st/us_odd_truck_dealer_free...

Mon, 11/15/2010 - 19:49 | 728869 MaldelBot
MaldelBot's picture

Welcome to Abe Foxman's shit list, amigos.

Mon, 11/15/2010 - 18:48 | 728696 boooyaaaah
boooyaaaah's picture

You Mean We Can actually change the direction our government is going

We can demand that spending is stopped

We don't have to go in the spookie dudes directiom

Mon, 11/15/2010 - 17:27 | 728496 anarkst
anarkst's picture

Banking is theft.  Always has been, always will be.

Mon, 11/15/2010 - 18:02 | 728597 Imminent Crucible
Imminent Crucible's picture

The Fed will never agree to this.  Their whole raison d'etre is to skim the economy through the hidden inflation tax.

Maintaining zero inflation means the banksters' looting scheme is over.  Thus the Fed defines "in a context of stable prices" as "2% CPI inflation and 4% real inflation every year."

We might be able to live with a few points of inflation year after year, but it can't stay that way.  Any system built on expansion by any exponent, eventually will rise at an exponential rate and collapse.  It's a mathematical certainty, and it's already well underway.

Mon, 11/15/2010 - 18:42 | 728679 High Plains Drifter
High Plains Drifter's picture

You are right. These fuckheads have earned exactly zero respect in my book, and I do mean all of the bastards. I am sick of all of them.

Mon, 11/15/2010 - 19:04 | 728735 Rainman
Rainman's picture

......yeah, this is transparency. What's real transparent is that this guy's jockeying for position as the GOP takes over the House. Nothing more.

He needs to take a fiat federal reserve note out of his wallet, read the top line carefully and figure out whether he's pitchin' or catchin' in a fuck fight with the Fed.

Mon, 11/15/2010 - 19:44 | 728849 High Plains Drifter
High Plains Drifter's picture

Classic good cop, bad cop. Hello tea party. Are you listening? Are you watching? I hope so. The old boss is the same as the new boss.

Tue, 11/16/2010 - 11:37 | 730866 arkady
arkady's picture

Uhm...actually Mike Pence announced he is resigning the leadership post several weeks ago.  But ok, let us crap on one of the few remaining Congressmen who actually care and voted against the TARP.  Good strategy.

Mon, 11/15/2010 - 18:53 | 728706 boooyaaaah
boooyaaaah's picture

The fed exists at our pleasure

And if we have no pleasure?

Mon, 11/15/2010 - 22:17 | 729303 goldsaver
goldsaver's picture

no likee fookee foockee from bernanke? Love you long time... 500B dollar!

Mon, 11/15/2010 - 19:48 | 728863 MaldelBot
MaldelBot's picture

@anarkst

Usury is theft. It is a foreign and corrupt system imposed on us. It is anti-West and anti-Christian. I curse it.

Mon, 11/15/2010 - 17:27 | 728497 unwashedmass
unwashedmass's picture

 

don't get in any small planes, mike.

Mon, 11/15/2010 - 17:31 | 728513 metastar
metastar's picture

Oh hell,

I fly a small plane!!!

Mon, 11/15/2010 - 17:42 | 728552 Thanatos
Thanatos's picture

Don't get in any new cars either.

2008 cars forward all have the wireless tire pressure sensors.

These have been used to hack into the vehicle ECM via wireless.

Airbags disabled -- Check

Windows up -- Check

Doors locked -- Check

Brakes Disabled -- Check

Throttle set to WOT -- Check

Enjoy your ride!

http://www.switched.com/2010/08/11/researchers-hack-cars-via-wireless-ti...

 

Mon, 11/15/2010 - 23:02 | 729427 Nikki
Nikki's picture

Epic stupid.

Mon, 11/15/2010 - 17:27 | 728498 Seasmoke
Seasmoke's picture

anything cutting the Federal Reserve at the knees is a good thing

Mon, 11/15/2010 - 17:27 | 728499 SquidHunter
SquidHunter's picture

http://www.youtube.com/watch?v=ibV8WJtNYJY

 

QE2, the Fed and our Founding Fathers

 

Lets go back in time to figure our way out...

Mon, 11/15/2010 - 17:27 | 728501 the not so migh...
the not so mighty maximiza's picture

They should prepare to push to eliminate the FED.

Mon, 11/15/2010 - 17:28 | 728502 metastar
metastar's picture

.

Mon, 11/15/2010 - 17:28 | 728503 metastar
metastar's picture

Yes,

Reduce the money supply. Strengthen the dollar while causing an all out depression.

Seems to me that the real solution is to end debt based money and make the government accountable to the people, not corporate banking interests.

Mon, 11/15/2010 - 19:11 | 728758 trav7777
trav7777's picture

yes, all the better for those holding all the bonds (claim tickets) to swoop in and take ownership of the country so it can be rented to us.

Wait, didn't Jefferson have something to say about this inflation then deflation racket?

We must REBUKE what we think is our "conventional" wisdom about what is right here.  We must REFUSE deflation and austerity.  Let the BANKERS fall on the sword, not become owners of EVERYTHING because they did us the favor of conjuring fictitious capital to lend to us.

Mon, 11/15/2010 - 20:38 | 729023 Cooper Marl
Cooper Marl's picture

The bankers should take the sword, which will most undoubtedly have to be forced upon them....as Phil Robertson says 'cut em boys'.

Mon, 11/15/2010 - 17:28 | 728506 redpill
redpill's picture

It's only a half solution.  The Fed needs to go away, entirely.

 

Mon, 11/15/2010 - 17:35 | 728528 midtowng
midtowng's picture

It's not even a half solution. It won't stop the Fed from propping up their banking friends and from playing with the economy.

The only real solution is to get rid of the Fed.

Mon, 11/15/2010 - 22:08 | 729265 ToNYC
ToNYC's picture

 

Right after Niedermeier, the Fed, Dead. The dual mandate is the first whack of Lizzie Borden. End the FED fudge factor bank monopoly compensation package that only leads to fantasy economy of bubbles to create fake domestic consumption nowhere near sustainable.

Mon, 11/15/2010 - 18:07 | 728600 Thanatos
Thanatos's picture

This guy will take care of the problem for less than 10k.

http://static.tvtropes.org/pmwiki/pub/images/MS13.jpg

He might even deposit them in a Silver mine, which would be just desserts for em.

http://seattletimes.nwsource.com/html/nationworld/2012201989_mexgrave25....

 

 

Mon, 11/15/2010 - 17:30 | 728511 Comrade de Chaos
Comrade de Chaos's picture

I think the FED mandate should be focus on ABNORMAL (5%+) inflation ONLY. Else it still will be the macro-management of the complex system with some questionable results and distortion of the most reliable market signal - fluctuation of natural inflation levels.

Mon, 11/15/2010 - 17:32 | 728517 Dr. No
Dr. No's picture

I agree with the premis.  I would take a step further and mandate a zero inflation rate on the price of gold.

Mon, 11/15/2010 - 17:33 | 728518 gloomboomdoom
gloomboomdoom's picture

CNBS mouth pieces are more critical of the FED than Pence.

He loves the FED.

Mon, 11/15/2010 - 17:42 | 728551 Fraud-Esq
Fraud-Esq's picture

Mike is a neocon mouthpiece who's putting together a little coalition to make the FED even more friendly to his banker masters. 

Next up, Fed chairman appointed by private banks. 

Bottom line, private capital doesn't trust this Princeton chairman and his no public debt interest save. He will have more enemies by 2011 than any chairman prior.  

Mon, 11/15/2010 - 18:49 | 728693 High Plains Drifter
High Plains Drifter's picture

Its like that numbnutts Cuban they voted in down in Florida with that stupid R by his name and who by the way was making happy with the tea party people before the election and now , he is distancing himself from them. Why am I not shocked?  Not only that but with the election only over a few days, Rubio the  traitor is heading to Israel to a bow low before his zionist masters and kiss their arse's and kiss their magic decoder rings, the pricks. Like I said, I am up to here with this crap and its like George Carlin , so aptly put it, nobody seems to notice and nobody seems to care.

Mon, 11/15/2010 - 17:33 | 728519 Charley
Charley's picture

It is not until employment becomes impossible -- not for a few, but for the mass -- that real change will happen. Washington must walk away for its responsibility to keep superfluous people on the job, in order to end the scourge of jobs.

 

You go for it, Mike Ponce!

Mon, 11/15/2010 - 17:33 | 728521 midtowng
midtowng's picture

This will fix nothing. It won't stop the Fed from doing what they want. They need to get rid of the Fed.

Mon, 11/15/2010 - 18:33 | 728654 djrichard
djrichard's picture

Agreed.  The Fed's whole raison d'etre is protecting fictitious capital from going into default.  Strategy #1 is to protect price levels on over-price assets.  The idea that the Fed wants to maximize employment is just a canard - I'm sure they'd be just as happy if that canard was dropped from their mission statement.

Mon, 11/15/2010 - 17:34 | 728522 Hansel
Hansel's picture

I wonder where Mike Pense thinks the money will come from to fund the deficit.  Will the new mandate be "full funding of the U.S. budget deficit followed by price stability"?

Mon, 11/15/2010 - 17:34 | 728523 Spalding_Smailes
Spalding_Smailes's picture

So they cover up the jobs issue/globalization through cheap credit/debt securitization markets over the last 30 years and now that the credit machine is busted they must dump that jobs mandate .... no fucking shit, really ?

Man I bet R.Perot is really getting a laugh today over this crap.

Mon, 11/15/2010 - 17:34 | 728525 Freewheelin Franklin
Freewheelin Franklin's picture

Pence invited FRBKC Pres Hoenig to adrees the House Republican Conference on 12/2.

 

http://www.bloomberg.com/news/2010-11-10/fed-dissenter-hoenig-to-speak-t...

Mon, 11/15/2010 - 17:35 | 728529 Fraud-Esq
Fraud-Esq's picture

How about "stopping bubbles" before they start? 

You think the GOP can get behind that legislative clarification? LMAO.

Mon, 11/15/2010 - 17:38 | 728538 Cognitive Dissonance
Cognitive Dissonance's picture

How about "stop blowing bubbles" so they won't start in the first place? That's been the only purpose of the Fed since the end of WW2. 

Mon, 11/15/2010 - 17:58 | 728556 Fraud-Esq
Fraud-Esq's picture

But - blowing bubbles is how the unproductive rich get richer and exit their investments with volume.

Who's going to fund the political parties then? People who grow at 15% and labor?! Need excess cash! Need bubbles. 

We need a Department of Asset Bubbles. Once again, no one's discussing how the Fed is supposed to find the next one and what their statutory duty is when they do. As of today, the tea leaves say, find bubble and blow after big money is in.

Mon, 11/15/2010 - 18:41 | 728678 djrichard
djrichard's picture

LoL +1.

Of course this means the Fed would have to put a short leash on the counterfeiting debt-creation in the shadow banking and non-shadow banking system, and that's not going to happen.   I'm sure they're thinking they need the banksters practicing financial warfare on its own citizens so they can better wage financial warfare on other nations (rather than the other way around).  We're just in perpetual financial warfare - it will never stop.

Mon, 11/15/2010 - 19:28 | 728814 Fraud-Esq
Fraud-Esq's picture

This sick part is, in THEORY, the FRB COULD put a stop to the banks sickness. In theory. That would take some great men, some great appointments. I prefer the people get involved, because I don't trust presidents with these details...

The FRB, at minimum, needs conflict of interest laws so tough that a member could NEVER work in the banking industry. I'd grow them in Montana and never allow them into NY city. Pure regulators. We have a million priests that give up sex AND wealth, purportedly. You'd think we could find 12 guys to just give up the wealth. Provide them sex around the clock.

Mon, 11/15/2010 - 22:14 | 729294 ToNYC
ToNYC's picture

 

Paying the Exchanges Co-location fees and givng Primary Dealers the heads-up is a FAILed strategy, and should be embraced by the FED successor: the US National Bank for US Citizen, non-Corporate Savers.

Mon, 11/15/2010 - 17:37 | 728534 anony
anony's picture

Changes??

Only Marginal.

Mon, 11/15/2010 - 17:38 | 728536 Mercury
Mercury's picture

I don't think anything will come of it but I like his drift.  When's the last time you heard a Democrat suggest a reduction in federal authority over anything?

Tue, 11/16/2010 - 06:16 | 730133 docj
docj's picture

+1

Mon, 11/15/2010 - 17:39 | 728541 Ragnarok
Ragnarok's picture

This argument excepts the premise that the point of QE2 was to stimulate the economy -> employment, which it wasn't.  QE2 purpose is to keep the derivatives market from imploding.

Mon, 11/15/2010 - 17:41 | 728549 the not so migh...
the not so mighty maximiza's picture

Very good point.  They are all starting to sound schitzo and bi polar because they are running out of ideas. 

Mon, 11/15/2010 - 18:32 | 728651 Cleanclog
Cleanclog's picture

And to keep rates low so we can "service" our debt in Treasuries.

But today's interest rate action would suggest, again, that QE2 is not working.

Mon, 11/15/2010 - 17:41 | 728550 spartan117
spartan117's picture

In other words, stop monetizing?  Then we'll have default instead of hyperinflation.  This guy is an idiot.

Mon, 11/15/2010 - 19:09 | 728752 NotApplicable
NotApplicable's picture

One man's default is another man's market clearing mechanism. Not to mention, default lays the problem at the feet of the defaulter, while hyperinflation destroys everyone who uses the currency.

Honestly though, we're beyond the point of no return, so we will have both. Then the IMF/WorldBank/BIS regime kicks into high gear with a new flavor of paper. (Or will it be all plastic cards?)

Simply put, we're screwed either way.

Mon, 11/15/2010 - 17:42 | 728554 redpill
redpill's picture

On second thought, forget it, vote HUGH JIDETTE for President!

http://go.hughjidette.com/landing/?propName=propId&propValue=Fdh2F

Mon, 11/15/2010 - 18:00 | 728586 Fraud-Esq
Fraud-Esq's picture

Too bad Pete Peterson made a fortune on leveraged, deregulated credit and saved a fortune by the taxpayer bailout.

Everyone's compromised. 

Mon, 11/15/2010 - 18:44 | 728686 John McCloy
John McCloy's picture

Yeah I noticed that as well last night Fraud. Small little "Pete Peterson" font on the lower part of the screen. For those unaware he was Nixon man and Blackstone founder. This makes me question as to wether this indicates the elites are now fully hedged for a crash and attempting to get one underway in order to reap more profits and the purchase of rock bottom price assets. 

Mon, 11/15/2010 - 19:23 | 728791 Fraud-Esq
Fraud-Esq's picture

Pete put a BIG TARGET on Ben's back too. Why? Read my shit below and give the Bernank a second look. Don't let the ABA get in the anti-Fed bed. They just want to change the sheets.

Mon, 11/15/2010 - 19:10 | 728728 jmc8888
jmc8888's picture

Pete Peterson is a fascist.  Same vampire body, different appendage. He shouldn't have any sway with anybody.  The dude behaves like a fascist tool and needs to be known in the conscience of the body politic that he is so. Thus his fascist viewpoints would be rendered meaningless, and rightly so.

Defaulting on worthless shit is the only way out.  Glass/Steagall baby.  It defines what is crap and what isn't.  That which is crap = worthless.  That which is not, like bankable deposits are saved.  Derivatives = worthless.  Bailouts to keep the derivatives game going = unnecessary.

Anyone invested in them, is out.  So don't be.  They aren't real.  So don't put your money in them.  Generally though, the average person, or the average wealthy person, doesn't.  These debts are all mad money built on illegitimate claims.   Their loss would benefit even a crappy monetary system.  But of course American Credit System is superior. 

Either way like it was astutely said by another commenter earlier, now that they fucked up the credit machine, of course the employment mandate is the part they want to 'cut'.   Not the bailouts of course.  They just want to know what else they can steal.  They're asking us, what isn't nailed down too hard?

With Glass/Steagall so much debt, including sovereign wiped out...cancelled.  Then the full faith and CREDIT of the United States can actually get to work on what it needs, SPEND MONEY ON REAL PROJECTS, as can the rest of the world under like systems. 

Those that want to hold onto the fraudulent debt, and want to obligate it, can drown in it needlessly.  Let the Queen get hers from the suckers, but it won't be U.S., and my guess is the rest of the world likes surviving too. 

We don't need to shut it all down because of the banksters.  We don't need to believe that they haven't already rigged the game so much, any budget is unsustainable.  That's the game.  Make everything unsustainable.  Now we have the bullshit reason brainwashed into us to cut all because of the deficit.  (That they created and want balanced as they are hyperinflating their fed account)

No Rand Paul or NerObama fascist austerity-no solution crap.  No Pete Peterson bad cop commission to make the Catfood commission look like the good cop. 

These guys are fucking idiots.  They have no clue.  Left, right, middle, tea, all comprised of fascists. None capable of leading us anywhere but down.  More fascism they always proclaim.  More fascism for the people.  Is that the change NerObama and Rand Paul got elected to bring?  Hell no. But that's exactly what these dipshits have done, and/or want to continue to do.  The Tea Party (nuts in your face party) is a fucking joke because all they did was get behind a bunch of fascist dipshits like Rand Paul.  Rand Paul has NO solutions.  Rand Paul is a traitor to the American System.  No patriot can say they like Rand Paul, and actually be a patriot.  You can't.  Maybe if these people fool themselves with sophistry, but then they aren't real, are they!

Obama is incapable of serving as president, 25th ammendment.

Glass/Steagall

NAWAPA

Maybe we should get Susan Powter to yell in her high energy style, the phrase 'Stop the Fascism'.  Maybe if it's on an infomercial after OxyClean and the Ronco Food Dehydrator the brainwashed, propagandized, pharmaceutical medicated populace might understand.  In their 2 brain cell heads it would of been stamped with 'As Seen on TV'.

Fascist Rand Paul Happy with Obama's Catfood Commission

http://www.larouchepac.com/node/16461

Rand Paul's Austrian School: The Hapsburg War Against America

http://www.larouchepac.com/node/16441

Simpson-Bowles Plan Is British Inter-Alpha Banks' Treason Against the U.S.

http://www.larouchepac.com/node/16450

 

Mon, 11/15/2010 - 20:48 | 729040 damage
damage's picture

What are you even talking about? The first part I sort of agree with... but then you go on some rant about Rand Paul and a bunch of shit that makes no sense...

Also without FDIC and the discount window, Glass-Steagall would be a moot point... I agree if we're doing something stupid like backstopping the banks we shouldn't be backstopping the "investment banks"...

Mon, 11/15/2010 - 21:13 | 729114 VisualCSharp
VisualCSharp's picture

A post for the ages. Thank you, good sir. :)

Tue, 11/16/2010 - 06:51 | 730147 zalexs
zalexs's picture

Haha, so you want to be lead and then call the others fascists.

Mon, 11/15/2010 - 17:43 | 728555 svendthrift
svendthrift's picture

Ironically, the Fed's inflation pushed women into the labor force. Full employment, indeed.

Mon, 11/15/2010 - 17:49 | 728568 trav7777
trav7777's picture

Mike Pence to public:  GET BACK ON YOUR WHEELS, HAMSTERS

Fuck employment, let's collapse everything so that the elites can cash in their liquidation claim tickets and own every road, water system, power plant, parking meter, building, everything.

Sell them the police too, right?

That way the oligarchs can have DIRECT ownership of your life and FORCE you to run on that wheel.

Mon, 11/15/2010 - 17:53 | 728583 Ragnarok
Ragnarok's picture

Liquidation is coming either way, so the most important thing we can do as individuals is prepare to survive the transition.

Mon, 11/15/2010 - 18:45 | 728688 Sabibaby
Sabibaby's picture

+870

Mon, 11/15/2010 - 19:12 | 728762 NotApplicable
NotApplicable's picture

Wait, you mean to tell me that individuals actually have the capacity to act?

But, I thought that's what the collectives are for!

Mon, 11/15/2010 - 17:52 | 728579 israhole
israhole's picture

The CME raising silver margin to almost 10k after close of business on Tuesday.

Mon, 11/15/2010 - 18:06 | 728595 depression
depression's picture

Nice sound bite: but it is too little, too late.

Yield curve is unexpectedly lifting, Bond Vigilantes may be sniffing something out.

CME raising margins, an attempt to throw a wet blanket on these runaway commodities ?

What's next, explicit price controls ?

 

Tue, 11/16/2010 - 01:57 | 729966 Raging Debate
Raging Debate's picture

Yes

Mon, 11/15/2010 - 18:02 | 728596 treemagnet
treemagnet's picture

Who thinks the repubs/tea party got the balls to wrestle the controls away from a madman?  Besides, this psycho will auger the chopper into the ground before he relinquishes his pilots license. 

Mon, 11/15/2010 - 18:08 | 728606 Ye Ye
Ye Ye's picture

The fed would not have needed the full employment mandate to engage in current behaviour.  They could just argue deflation is imminent, which is counter to their definition of "price stability".  This looks like a non-change to me.

Mon, 11/15/2010 - 19:16 | 728776 NotApplicable
NotApplicable's picture

Ding, ding, ding!!! We have a winner!

Funny how people confuse words with actions. They will tell you whatever words they know you want to hear. Actions though, will continue on as TPTB want them to.

Mon, 11/15/2010 - 18:21 | 728624 Fraud-Esq
Fraud-Esq's picture

Pence is an idiot.

QE2 could/would happen without the dual mandate. The employment mandate is irrelevant to the claimed motives for QE2.

As well, by inference, is he suggesting that the FED cares "too much" about employment. Bad populist optics. So, irrelevant AND bad optics. Why's he out front? Probably trying to raise big bank money and secure leadership when he's furtherest away from an election.

Mike got his biggest contribution last cycle from the ABA. Now, you have to figure out why he/them are attacking QE2 (bond buys) so viciously. 

Think about it. 

Mon, 11/15/2010 - 18:20 | 728625 edwardo1
edwardo1's picture

Let me preface my following remarks by offering that IMHO both parties are a plague on the nation. This is just the sort of vile skullduggery that is typical of Republicans. Why even bother to do such a thing when it is patently obvious that the employment mandate is a farce. What these perfidious punk Repubicans ought to do is use the fact that The Fed blithely ignores price stability and employment to usher The Fed out of business. Instead, The Republicans would prefer to do what criminals from time immemorial due when confronted with the game being played sans the rule book, change the rule book. That's your Republican Party, America. Bring the smelling salts.

Mon, 11/15/2010 - 18:23 | 728631 Fraud-Esq
Fraud-Esq's picture

+++ farce. 

Mon, 11/15/2010 - 21:24 | 729133 Bob
Bob's picture

I hate to fall into the blue-red fray, but really, is this a "shocking" con job of a revelation or what? 

Good God

Essentially, it's good cop-bad cop.  Just depends upon what side of the tracks you view the spectacle from. 

Mon, 11/15/2010 - 22:46 | 729390 samsara
samsara's picture

Not as much Good Cop / Bad Cop

as it's the Gambino's vs the Genoveses

And you're a poor merchant on the boundry of them both.

Mon, 11/15/2010 - 18:21 | 728627 RobotTrader
RobotTrader's picture

Since when has fixed income become a riskier asset to own than stocks, oil, and gold?

LOL....

Mon, 11/15/2010 - 19:15 | 728771 Quantum Nucleonics
Quantum Nucleonics's picture

Since Governor Moon Beam took the helm and Prop 13 got disemboweled.

Mon, 11/15/2010 - 20:02 | 728922 CitizenPete
CitizenPete's picture

Wow mon.  19 too ...

 

 O   o 

WWW    Ffffffft!

Mon, 11/15/2010 - 18:22 | 728630 Milton Waddams
Milton Waddams's picture

Revoke 13(3) of the Federal Reserve Act, or impose stricter limits. Problem solved. 13(3) is a license to steal as it can too easily be gamed. Control over the economy is more centralized today than it was when 13(3) was initially established and therefore "Individuals, partnerships, and corporations", if determined as beneficial, can wreck the economy to spur the Fed into printing money.

3. Discounts for Individuals, Partnerships, and Corporations
In unusual and exigent circumstances, the Board of Governors of the Federal Reserve System, by the affirmative vote of not less than five members, may authorize any Federal reserve bank, during such periods as the said board may determine, at rates established in accordance with the provisions of section 14, subdivision (d), of this Act, to discount for any individual, partnership, or corporation, notes, drafts, and bills of exchange when such notes, drafts, and bills of exchange are indorsed or otherwise secured to the satisfaction of the Federal Reserve bank: Provided, That before discounting any such note, draft, or bill of exchange for an individual, partnership, or corporation the Federal reserve bank shall obtain evidence that such individual, partnership, or corporation is unable to secure adequate credit accommodations from other banking institutions. All such discounts for individuals, partnerships, or corporations shall be subject to such limitations, restrictions, and regulations as the Board of Governors of the Federal Reserve System may prescribe.

[12 USC 343. As added by act of July 21, 1932 (47 Stat. 715); and amended by acts of Aug. 23, 1935 (49 Stat. 714) and Dec. 19, 1991 (105 Stat. 2386.]

Mon, 11/15/2010 - 20:41 | 729031 TWORIVER
TWORIVER's picture

does this mean I can ask them for $$$? What if we as private citizens lined up to ask the FED for a bailout?

Mon, 11/15/2010 - 18:27 | 728639 Duffminster
Duffminster's picture

Bush Appointed Bernanke.  The Republicans are just posturing.  The Fed will do what the Fed must do to put money in the pockets of the Too Big to Fail Banks and if the Republicans make too much noise the Wall Street Lobbyist from the primary dealers will be calling them and telling them to shut up.

Mon, 11/15/2010 - 18:40 | 728676 John McCloy
John McCloy's picture

Until little by little they realize now after the recent elections they can easily be out on their ass in 2012. That fear and a few calls and emails from constituents means that everything the Fed was accustomed to in the last 100 years just came to a screeching halt. 

   Also President Obama retained Bernanke and he was confirmed in both instances with a Democratic majority.

Mon, 11/15/2010 - 18:48 | 728682 Fraud-Esq
Fraud-Esq's picture

IMHO - they're not posturing. They see Ben Bernank a "David Souter".

Not over the bailout. Not over the MBS. Not over AIG. Not over Citi. Not over the trillions in federal guarantees. Not over the 12 trillion plus in goodies.

Just over the BONDS. QE2.

Taxpayers not paying INTEREST to PRIVATE bankers for public debt is antithetical to the entire system of PRIVATE fiat money and its relationship with public entities.

This is a war.

I could be wrong, but if I'm reading this right, when Ben Bernake made his turn into treasuries, he became a target of private capital. He's challenging a CORE rule of the private-public partnership: public interest to private entity. Have you ever seen a wave turn that fast against a Fed chairman, the same guy acceding to every other banking demand for years without a public battle? Why are the biggest recipients of ABA PAC money turning against the chairman only AFTER the public debt was bought instead of private assets? 

My view is not consensus on ZH, obviously yet. IMHO, too many people are willing to make strange bedfellows with the ABA's biggest mouthpieces because they're overly excited over ANY FRB critics. I don't think they're thinking it through or questioning the obvious.... 

Mon, 11/15/2010 - 18:49 | 728697 trav7777
trav7777's picture

I made mention of this somewhere...bernanke is printing the interest to prevent the compound function from collapsing.

Insofar as this doesn't represent real productivity from hamsters who NEED TO BE ON WHEELS WHERE THEY BELONG, the elites who parasite off those hamsters are upset with him.

Sell us the roads and bridges and power lines, but DO NOT dilute our claim tickets, sez the elite

Mon, 11/15/2010 - 18:52 | 728704 Fraud-Esq
Fraud-Esq's picture

I'm with you on this and a few other things too.

Mon, 11/15/2010 - 19:05 | 728741 trav7777
trav7777's picture

maybe Bama has gone off script and he has Bernanke in cahoots

Mon, 11/15/2010 - 19:15 | 728774 Fraud-Esq
Fraud-Esq's picture

You know - this could be the most revolutionary thing any two people have done in a century. I have not excluded your thought from possibility.

I'd like to know how much time Ben and Barack have spent in a room together in the last year. I really would. If two people were going to do anything paradigm changing, this would be it. Introduce evidence that Greenbacking it doesn't create runaway inflation and resolves public interest. THAT would be audacious in my mind, therefore, I tend to disbelieve it. ;)

Mon, 11/15/2010 - 23:25 | 729498 samsara
samsara's picture

So which faction fired the missles?

Were they yea or nays?

Mon, 11/15/2010 - 21:28 | 729147 Bob
Bob's picture

Trav, sometimes you really surprise me: You nailed that one, brother. 

Tue, 11/16/2010 - 02:10 | 729986 Raging Debate
Raging Debate's picture

I understand completely what you are saying. Allow me to put it this way. The people are bigger than the government run by bankers, monarchs or tooth fairies. But this is the phase where the industrialists start getting to feel the blowback from government that either calls in risky favors or punishes those that refuse to play. The phase following this one is the people reasserting themselves that their government is the servant and not the master. War has been the misdirection tool to continue to force imbalanced power sharing. In the age of VERY big weapons, the power sharing option is running out of time.

Mon, 11/15/2010 - 18:37 | 728663 ewmayer
ewmayer's picture

The above ZH post makes the grievous error of propagating one of the Fed's Pet Lies about what its mandate really is:

"...the 1977 provision for the Fed's dual mandate of maximum employment and stable inflation."

FAIL. The black-letter mandate is for "price stability", which means ZERO inflation when averaged over the long term. How that continually and magically morphs into "stable inflation" is beyond me. I guess you need an econ PhD to understand how zero really means 2%, or 5%, or whatever the FedTards decide it really means.

Mon, 11/15/2010 - 18:54 | 728711 trav7777
trav7777's picture

naw...its black letter mandate is the stable growth of credit aggregates sufficient to support growth in the economy.

Of course, growth is always assumed, the first part of the sentence dominates.  I wonder if these authors never foresaw an end to growth.  I suppose back in the 30s with the mountains of oil out there, the future seemed limitless.

I mean where is my goddamned flying car, anyhow??

Mon, 11/15/2010 - 18:37 | 728668 John McCloy
John McCloy's picture

This will mean a true audit bill is in the cards in the coming year for at minimum a vote. This time it will pass.

Mon, 11/15/2010 - 18:58 | 728716 Fraud-Esq
Fraud-Esq's picture

Mike Pence and the people leading the post QE2 charge on the Bernank are ABA mouthpieces.

Check it out for yourself. Mike and the ABA will never audit the Fed.

They're simply trying to capture the queen on the chess board. he warning shots at Treasury buys are at the CHOICE of asset, not the buying. Why?

Where was the flak over the 12 trillion?
Had he bought another 800B in toxic assets, what would have been the response from the ABA?

Is Ben a secret patriot doing a Greenback or is he just desperate or both?

Mon, 11/15/2010 - 19:01 | 728729 trav7777
trav7777's picture

Yes, yes, and yes...I said the same thing in my reply right below this comment.

When it was mostly MBSs that the banks wanted out of so they could have 'record profits,' they were fine with it.

Buying sovereign bonds???  Where the hell is THEIR PROFIT?  How is a banker supposed to manufacture another record bonus without the Fed printing THEM the free cash?

This QE2 simply does.not.compute. for the banker clan.

It wasn't supposed to go this way...they were supposed to get relieved of all their trash MBS, swap them for Treasuries-slash-liquidation claim tickets, and then AUSTERITY comes.  Raise those taxes, sell those parking meters, jack up fees, FORCE the hamsters onto the wheels and whip them.

Doesn't the Fed KNOW that all its member banks are facing tens or hundreds of billions worth of putback exposure due to all the fraud they committed for a decade?  QE2 doesn't seem to be reflecting the risk to bankerman's bonus like it should, therefore, there must be something WRONG here.

Mon, 11/15/2010 - 19:17 | 728748 Fraud-Esq
Fraud-Esq's picture

totally agree. The Bernank could have gone rogue. Look, it's easy to be an asshole if you're a nameless banker, but when you're the Chairman and you're name is on the whole crisis, you're MORE likely to vary from industry expectations and do the best thing for the country. More likely. That's a truism.

Is that optimism he doesn't deserve? Who knows...he's from South Carolina, I'll give him a chance to upend some shit. All I know is he's turned, he's buying public debt and he's got a BIG target on his back... suddenly. This target has media and heavy funding, the commercials are already all over the internet and they have that "certain quality" and shine, that wasn't there two months ago. That shine and big media echo is something only money can deliver.

I hope ZH and gang stay true to their code and give this another look.

Mon, 11/15/2010 - 20:18 | 728963 cosmictrainwreck
cosmictrainwreck's picture

WOW.... well, I been praying for years for some kinda miracle(s) for this pathetic "nation" (and my pathetic self), otherwise it's my nome de plume. Who knows? Truth stranger than fiction?

Mon, 11/15/2010 - 21:33 | 729165 Bob
Bob's picture

This is growing on me.  Thanks for staying the course on this vision of yours, FE. 

Tue, 11/16/2010 - 01:27 | 729928 Fraud-Esq
Fraud-Esq's picture

It's got to be done, Bob.  

When you keep expecting a fast ball, you'll never hit a breaker.

Let's just say, there are certain expectations around here that are so firm, they're not taking into account some very blatant information.  

Mon, 11/15/2010 - 18:40 | 728674 colonial
colonial's picture

its a little early, but this signals some actual thinking on the part of a Member of Congress.   Maybe the Reps are worried that the Tea Party will actually challenge the Fed and want to get out ahead of the trend.

Zero Hedgers should know that a number of lobby types down here, the DC equivalent of the smart guys in the room, are already thinking how the Tea Party will impact the next election cycle. 

Its ridiculous that the Fed had a dual mandate to begin with. 

Mon, 11/15/2010 - 18:57 | 728720 trav7777
trav7777's picture

anyone who thinks the debt can be paid off is just not math-capable.

It's not a matter of will.  If all debt was paid off, we'd have no money.  Avoidance of interest is impossible.  The system is set up so that the USE of money earns bankers a seingiorage privilege.  They get vig off of every dollar, until QE2.

QE1 went over well because it offloaded the shit MBS en masse from the banks.  But this round seems to have nothing in it for THEM.  I mean, where the fk will the bonuses come from??

It's simply incomprehensible for bankers to not get THEIRS.

Mon, 11/15/2010 - 21:56 | 729244 samsara
samsara's picture

A good article describing your point is the one below.

Here's a snippet that makes it simple to understand.

(Q. When was income tax created?

A.1913,  Same as the Fed. To pay the interest on what we borrow from them. )

 

Economics 101: Without the BS
Mike Mitrosky

 

<snip>

We now know that the government buys it's money from the private company called the Federal Reserve. And we know that the government pays for the money by issuing government debt. Because of this, the government doesn't even own it's own money, it only rents it. (A $100 United States Note issued in 1966 only costs America 4 cents. While a $100 Federal Reserve Note issued in 1966 costs America $100 + $5 a year in interest for a total of $315.00)

When the government buys one dollar from the federal reserve

 

The government automatically owes that dollar PLUS 5 cents in interest.

The problem with this is that although the dollar is created, the extra 5 cents in interest is NOT created. This means there is not enough money in the economy for the government to pay back it's debt. After awhile it's not even possible for the government to pay the interest on it's debt unless the money supply is increased.
<Snip>

http://www.silverbearcafe.com/private/04.09/economics101.html

Mon, 11/15/2010 - 18:55 | 728715 greenewave
greenewave's picture

To find out more about the lies and fraud propagated by Washington and the Big Banks, watch the YouTube video Global Economic Collapse 2010 at (http://youtu.be/_FHVy1tpT20).

Find out why there are a potential 17 million foreclosures in the pipeline over the next 5 years waiting to devastate the system!!

Global collapse is upon us.

Anonymous-

20 minutes ago

I really hate the fact that you're right. I? wish we were wrong. I really do.

Good vid.

 

Mon, 11/15/2010 - 21:35 | 729170 VisualCSharp
VisualCSharp's picture

Do I really need to watch some YouTu.be video to learn why society is headed for disaster? The reason is simple: GREED.

Now take your spam elsewhere Mr. Greeneturd.

Mon, 11/15/2010 - 18:59 | 728727 goldmiddelfinger
goldmiddelfinger's picture

What would happen if an unelected US official were to go off his rocker and say.....

launch a nuclear strike on Russia..........

or launch a massive flooding of US currency into the global economy........

or close the nation's communications networks.....

What would happen?

 

Why we'd mix another pure grain alcohol and rainwater, no fluoridated ice. Pass me the golf bag Mandrake. 

Mon, 11/15/2010 - 19:04 | 728736 lynnybee
lynnybee's picture

I've read a lot of headlines here on ZEROHEDGE over the past 18 months, but, when I read this one I gasped ........... the AMERICAN CITIZEN counts for nothing; our government & wall st. just keep sucking what little wealth is left from us & laugh about it.     charity towards the elderly & the innocent is my new motto.    regards to those who run this great website; i've been enlightened.

Mon, 11/15/2010 - 21:37 | 729180 Bob
Bob's picture

Innocence is a problematic concept.  Watch the movie The Reader to see what I mean. 

Tue, 11/16/2010 - 01:54 | 729959 RockyRacoon
RockyRacoon's picture

Well done, Bob.  Think of what not only ignorance but a narrow view can do.  The academics running this charade are doing damage beyond their comprehension.

Mon, 11/15/2010 - 19:04 | 728740 brewcity12802
brewcity12802's picture

Anyone know about a change in BLS seasonal calculations in September that increased

NFP's by 200,000 jobs? The source is Shadow Government Statistics. 

Mon, 11/15/2010 - 19:11 | 728760 Quinvarius
Quinvarius's picture

Republicans want to turn up the heat on Obama by crashing the entire system again.  I thought they would actually wait until just before the next election before going full retard. 

Mon, 11/15/2010 - 19:13 | 728765 Quantum Nucleonics
Quantum Nucleonics's picture

While eliminating the dual mandate would be nice, it will do nothing to curb the power of the fed or stop QE2, QE3, etc.  The fed can always justify its actions by saying its preventing deflation, or defining an appropriate level of inflation too high, but conviently at a level for full employment - whatever that might be.  Maybe eliminating the full employment mandate AND setting tight guidelines on acceptable inflation rates AND adding a mandate for a strong, stable currency. (No Santa, there's nothing else on my list this year... well, another 50" flat screen WOULD be nice!)

While the notion of the fed being a-political was always pretty tenious, Bernanke has done a great disservice by throwing even that to the wind.

Mon, 11/15/2010 - 19:17 | 728780 Ckierst1
Ckierst1's picture

"...and leaving employment to America's legislative bodies."

 

Make it stop!

Mon, 11/15/2010 - 19:24 | 728801 bingaling
bingaling's picture

Well if they maintain the mandate to control inflation they would just do more of the same anyway . Supress the price of gold and print like MF's .Seriously let's say they hold only the inflation mandate what happens? They just show prices of houses declining , dvds ,TVs to offset the fact food has gone thru the roof and print . All or nothing in my opinion . Otherwise same shit under different mandate .

Mon, 11/15/2010 - 19:56 | 728898 CitizenPete
CitizenPete's picture

Somewhere out there,  the ghost of John Maynard has a hard on.

Mon, 11/15/2010 - 20:26 | 728981 Shiznit Diggity
Shiznit Diggity's picture

Republicans are against QE because it might help Obama get reelected. If one of their own was in the White House, they'd be all for it. Nonetheless, I hope they succeed at clipping Ben's rotor blades.

Mon, 11/15/2010 - 20:57 | 729076 Cooper Marl
Cooper Marl's picture

There is no FED mandate to the people, there is only the the flimsy spoon.

Mon, 11/15/2010 - 22:29 | 729345 liberal sodomy
liberal sodomy's picture
  • "To cause high prices, all the Federal Reserve Board will do will be to lower the rediscount rate..., producing an expansion of credit and a rising stock market; then when ... business men are adjusted to these conditions, it can check ... prosperity in mid career by arbitrarily raising the rate of interest. It can cause the pendulum of a rising and falling market to swing gently back and forth by slight changes in the discount rate, or cause violent fluctuations by a greater rate variation and in either case it will possess inside information as to financial conditions and advance knowledge of the coming change, either up or down. This is the strangest, most dangerous advantage ever placed in the hands of a special privilege class by any Government that ever existed. The system is private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people's money. They know in advance when to create panics to their advantage, They also know when to stop panic. Inflation and deflation work equally well for them when they control finance."   - Charles August Lindbergh
  • Mon, 11/15/2010 - 22:45 | 729387 Madhouse
    Madhouse's picture

    Last laugh on the Repubs... when the underclasses break through their chains and storm the bastille, all the troops are still involved in some dumbass foreign war where 100s of billions have been spent to shoot a few thousand bearded idiots... what a fucking MADHOUSE..

    Mon, 11/15/2010 - 22:52 | 729398 liberal sodomy
    liberal sodomy's picture

    We're all armed to the teeth and want a confrontation.  Payback for the crimewave of the last 50 years will be unbelievable.  Choke off the cities and kill anything that tries to crawl out.  When the military and police break on racial lines (which is inevitable) is when we go full on yugoslavia.

    Mon, 11/15/2010 - 23:23 | 729479 Nikki
    Nikki's picture

    Republicans will do nothing. Eric "AIPAC" Cantor will do the bidding of his masters... The same ones that pull Bernanke's strings...

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    own's picture

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