Former Goldmanite And Head Of New York Fed Bill Dudley: "Let Them Eat iPad"

Tyler Durden's picture

Earlier today, Goldman New York Fed plant, and Jan Hatzius predecessor, Bill Dudley, emerged from his ivory tower to make a trek to Queens to deliver prepared remarks written by some intern, discussing the prospering state of the New York burrough (speech link). Unfortunately for the multi-millionaire, things quickly went from Unicorny and Rainbowy to horribly wrong. During the Q&A, one audience member asked: "When was the last time, sir, that you went grocery shopping?" A stunned Dudley did not have the heart to elaborate that the caviar and ambrosia eaten on the Dudley family table is hand delivered through the Fed's G-6 from Kamchatka, so instead, as Reuters reports, he "tried to explain how the Fed sees things: Yes, food
prices may be rising, but at the same time, other prices are
declining. The Fed looks at core inflation, which strips out
volatile food and energy costs, to get a better sense of where
inflation may actually be heading."

So, Dudley sought an everyday example of a price that is falling.

"Today you can buy an iPad 2 that costs the same as an iPad 1 that is twice as powerful," he said referring to Apple Inc's (AAPL.O) latest handheld tablet computer hitting stories on Friday.

"You have to look at the prices of all things," he said.

This prompted guffaws and widespread murmuring from the audience, with one audience member calling the comment "tone deaf."

As for the FTMFW comment from the audience, which apparently did not realize (unlike the prevailing thought at all other Dudley luncheons) that there is massive career risk in highlighting that the emperor is naked, has rolls of fat around his neck, and has a hairy ass, it was the following:

"I can't eat an iPad," another quipped.

Oh, but you will soon my dear. Just you wait - after all QE666, the Chairsatan's personal favorite, is just around the corner. Also, per rumors, the Fed has commissioned MIT to discover a plastic decomposing bacteria and lace the Fluoride in the drinking water with it, and... Presto.

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pendragon's picture

food prices are not volatile...they only go up. at what point does it cease to be transitional?

AN0NYM0US's picture

if people only knew the lifestyles these cats have, what they should have asked about was the price of asswipe, to which he would have quickly repsonded on the rising costs of pima cotton

Bananamerican's picture

"Behold the countenance of your betters, peasant!"

nope-1004's picture

Well, Bill Dudley just proved himself to be an idiot.



bunkermeatheadprogeny's picture

prima cotton = bernanke dollar

tempo's picture

Cotton, sugar, copper silver and gold all up today.  10 year Treasuries at key level of 4%.  Risk trade on if 10 years trade above 4%.

LongSoupLine's picture

I hope that MF'er gets hit by a gasoline truck on his way back to his castle!

f'ing asshat!

Michael's picture

The Federal Reserve Corporation is the root cause of all the riots and revolutions in the world due to the extra money it makes available to Wall Street speculators buying on margin that in turn drives up food and energy prices. This is 88% accurately correlated. This is not open for discussion of debate when the accuracy of this statement has already been proven.

Abolish the Federal Reserve Corporation and Audit Fort Knox Gold NOW!

reader2010's picture

Its engineered deliberately for the coming world currency so that they can milk more from everyone else in the world. 

A_MacLaren's picture

+8,200 tonnes of Tungsten

orangedrinkandchips's picture



you took the words out of my mouth. And man, those people who asked the right questions, I tip my hat to them. What a fucking maroooon. He has never stepping inside a try-n-save. He has his food hand fed, by some other slave.

I want to see a parade of the Fed's heads on sticks in downtown Manhattan. Then, I will sleep at night.


TheGreatPonzi's picture

""Today you can buy an iPad 2 that costs the same as an iPad 1 that is twice as powerful," he said referring to Apple Inc's (AAPL.O) latest handheld tablet computer hitting stories on Friday."

Wow... does he realize that it has nothing to do with the money supply, but with increased innovation and competitivity? 

Bill Dudley is a douche. And the sad thing is that nowadays, douches are rich. 

Ray1968's picture

I can buy an iPad 2 for less than what my Tandy 1000TX cost me in 1986.

This sort of analysis is what these morons use to find deflation to offset all price inflation they create. I've seen this before and still don't buy into it. I guess I'm not educated enough.

Michael's picture

Listening to these people are nauseating. The govspeak is designed to make your head explode. How much longer is it going to be till real people start cursing these motherfuckers out at press conferences? What fucking planet are these creeps from anyway.

Artful Dodger's picture

Yeah but the Tandy came with a calculator.

Ray1968's picture

The iPad calculator is free. You just have to download it.

naughtius maximus's picture

Holy deflationary shit! something that used to cost $100 is now free. Don't tell these guys about linux!!

hbjork1's picture

And we can buy an iPad for less than an HP45 in 1975 not even considering the inflation factor of 2 or 3.


Fred Hayek's picture

If only someone in the audience had asked him to justify these other "hedonics adjustments":


Check out the adjustments for clothing.  Because the pair of pants you buy today is so much more advanced than the ones you bought last year, don't you know.  They couldn't justify these "adjustments" for 10 seconds to the general public.

Overpowered By Funk's picture

Their point is to direct away any inspection or recognition of the money supply and its relation to inflation with nonsense about iPads and other crap to keep the sheeple from thinking things thru. Leisman types who worship the almighty Fed always point to the manipulated CPI to make their statists points. But as food prices increase, and energy prices increase, and other goods (clothing etc...) increase the high and mighty explanations from people like Dudley and Liesman et al become more and more surreal.

ronin12's picture

"Their point is to direct away any inspection or recognition of the money supply and its relation to inflation with nonsense about iPads and other crap to keep the sheeple from thinking things thru."


MrSteve's picture

This is the manure product from Greenspan called hedonic improvement. He might better have said we are cutting the dollar in half.

hbjork1's picture

Liesman is a zero.

When he appears, I close my eyes and change channels.

LudwigVon's picture

Hey went to Buffalo...

A keynes spewing shill for the Fed and the state. 

ZeroHour's picture

This reminds me of the MASH scene where Hawkeye and Trapper are at an Army press conference where General Mitchell is providing non-stop BS to the reporters ("General, do you have anything to add?" "No, but I would add that there's nothing to add").  Trapper's great question to the General (after he tried to avoid answering Hawkeye's question), "Yes, why don't you answer his question?"

Blame it on the reporters who don't push the issue.  They should continue to ask difficult questions and call them out for not answering.

GreenSideUp's picture

Reporters?  What reporters?

What passes for reporters these days is borderline criminal.  As a collective, they have an astounding lack of intellectual curiosity.  I can't imagine living in the world today and not wanting to find out the WHY of everything that's happening.  

Dollar Bill Hiccup's picture

I think it is safe to say that douches have always been rich and that many of the rich have always been, most elegantly put, douchebags.

TheGreatPonzi's picture

Most oligarchs who prey on gullible and conformist people are indeed douches (journalists, academics, politicians, central bankers, economists), but there's a huge difference in both class and intelligence between a Howard Hughes or Henry Ford and a Bill Dudley. 

hbjork1's picture

Ford went through two finantial failures that ammounted to bankruptcy before he finally made it.  Early on, he did a lot of his own work.  He wasn't what you would call a great guy.  People who financed him early on got burned. But he worked under spare conditions, always at the business until his last years.  And after, Highland Park, people that bought and held his stock, did very well.  

What legacy will people like Dudley or the Goldmanites like H. Paulson leave?  They are the very "cream of nowhere".

Dollar Bill Hiccup's picture

Ford, good job with the automobile although his literary pursuits were rather abject, as was his choice of friends.

Verdict? Uber Douchebag.

Confused's picture

Haha, amazing right? My first thought was, he HAS to know one has NOTHING to do with the other. Than I remembered who he was, and immediately wanted to throw up. 

trav7777's picture

has corn got a substitute?  I don't see much technical advancement in grains or oil either.  Seems like they can't just engineer more transistors into a gallon of milk and call it deflation.

If we take Dudley's (and the Fed's) calculations at this...products that were expensive 20 years ago, electronics and whatnot, are now worthless.  This indicates 100% price deflation, right?

I certainly get way more megabits from my internet connection too, so you've got to factor in all those extra porn bytes.  Nevermind if a bag of chips is double what it was a couple years ago, the "singularity" means that we can eat information and transistors.

RoRoTrader's picture

you're blasting away with pretty top drawer stuff lately, ace

the not so mighty maximiza's picture

he is guilty of war crimes against humanity

Janice's picture

Today gasoline is $3.55 per gallon and it is 10% ethanol.  So in 2005 terms, $3.55 plus the 10% that has been replaced with ethanol, valued at $.35, gasoline is really $3.90 for PURE gasoline with NO ethanol.

PS. Notice that dirt around your gas cap now?  That is the effect of the ethanol evaporating out of your tank, mixing with dirt and being deposited around your gas cap.

NotApplicable's picture

Nothing like taking one of our most basic staple foods, spend vast resources to convert it to fuel, only for it to evaporate in our tank, all while attracting water that will corrode our engines.


Criminal Enterprise in action.

GoinFawr's picture

Hey, that sounds like 'planned obsolescence',  can you think of a 2008 Presidential Candidate who made his name successfully fighting such things?

(Hint: RN)

hbjork1's picture


IMO, not criminal but ignorant.  By some fraction of 1%, it may reduce the emissions of CO2 into the atmosphere.  But overall cost is another matter.  The specific energy of alcohol is less than hydrocarbon based fuels.  The tractors plow the ground and harvesters that gather the corn will consume energy and require manpower.  The processing will require some energy.  Don't forget the fertilizer.  Of course, there are other lower cost potential crops that could be converted.

IMO, (And I have been in the edge of the energy conversion business for several decades.)  the long term solution will be earth core heat and nuclear.  The problem with nuclear is that you can't have crazys (like this Dudley dope at the FED) working in it.  It MUST be respected absolutely because it can kill you and a lot of other people.   You may have never heard about duPont at Savannah River Plant where the Plutonium for atom bombs and the Tritium for hydrogen bombs was manufactured in the 50's and early 60's.  It was a serious environment.  Erronious assertion was a social sin.  People who didn't belong would eventually be moved out.  If duPont instead of Westinghouse had been running Three Mile Island, there would have been no incident. 

Nuclear power is now in place on all battle ready US Submarines and all of the larger ships.  Getting official information on this subject is hard to find but it is assumed that ALL active submarines and the larger surface ships are now nuclear.  After the Thresher sinking, that was due to an implosion at max test depth, the US has had no acknowledged accidents with nuclear power of ships.  As discussed in the book "Blind Man's Bluff", the Russians had a failure or two. 

What would we do with spent fuel?  It would have to be buried - DEEP or bear the expense of launching toward the Sun. 


trav7777's picture

well, to be somewhat fair, ethanol was added as a MTBE replacement for smog prevention.  But it does have less energy in it than equivalent volumes of gasoline.

NOTW777's picture

LOL some levity in the midst of teleprompter boredom

hey did anyone notice - we are leaderless at a time where there is crisis everywhere u look

Horatio Beanblower's picture

America is never leaderless.  From 2009...


"Thank you for that wonderful tribute to Henry Kissinger yesterday. Congratulations. As the most recent National Security Advisor of the United States, I take my daily orders from Dr. Kissinger, filtered down through General Brent Scowcroft and Sandy Berger, who is also here. We have a chain of command in the National Security Council that exists today."

ArsoN's picture

Do they just get rid of food and energy or do they stip out those components from everything? (so do they go further and actually subtract out the amount of money you have to pay extra for an ipad b/c it now costs more to drive it to the store?) 

Dollar Bill Hiccup's picture

Food and energy are organic, and organic things are obviously volatile. Like people.

I suppose that we should only be concerned with inorganic matters, steel for example, when looking at inflation. I'm sure the Chinese are very concerned about the price of steel.

One example at odds with my description between organic volatility and inorganic stability would be the base metal lead, which is inorganic yet at certain extremes of popular sentiment can be very, very volatile.

Perhaps Mr. Dudley should look at his definitions again.


jus_lite_reading's picture

Low life son of a bitch! He might have just awoken the dragon with that elitest remark. The people are standing outside... waiting... watching...


Ahhh yes. The CPI- stripped of the things that matter and replaced with the things that make the rich richer! 

camoes's picture

Soon people will be trading their ipads, ipods, i___, for food and gas...

And NO, there's no app for that!

jimijon's picture

However, if you want to barter silver or gold.. there is!

and coming soon... bartercalcpro!

H. Perowne's picture

No wonder Zimbabwe Ben and all his predecessors hated going up in front of congress. These clowns can be crushed in any conversation lasting more than 30 seconds, by someone with a basic grasp of arithmetic and reality.