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Jim Grant Accuses Fed Of "Lethal" Intervention And Manipulation Of US Economy

Tyler Durden's picture




 

Yesterday Jim Grant gave an interview to Bloomberg's Pimm Fox, which was as usual informative and entertaining, and thus must see. Yet the section which is most relevant for our post-capitalist society (one is unsure what defines it best: communism? socialism? fasism? farcism? idiocy?) is Grant's discussion of H. Parker Willis, one of the founders of the Federal Reserve in 1913, who in a book written two decades later laments the very existence of the Fed. As Grant says: "Willis was present at the creation of the Fed, he was one of the draftsmen of the Federal Reserve Act of 1913. Willis was also the first secretary of the Federal Reserve Board - he knows this institution. He wrote a book in 1936, which was a lamentation about the low estate of Central Banking in America, the Fed had lost its way in 1936. It had opened its doors in 1914 and by 1936 it had eaten the forbidden fruit, it was in the business of guiding the economy, of managing the economy, of manipulating this aggregate and that, and Willis said: "For Pete's sake. You can't know that - the GDP data are not reliable enough for you to do what you think you are doing." It's a wonderful tract against the tendency of the Fed to do what it has so lethally done to this economy in my opinion, which is to steer us, in the interest of raising the GDP it presses interest rates to zero, pouring out immense volumes of econometric studies in support of this dubious enterprise. Hey Fed: just attend to the dollar, that's it, no inflation, just do one thing! You've heard of mission creep, these guys are the mission creeps par excellence."

When even cool, calm and collected pundits like Jim Grant fall into murderous paroxysm of blind rage when discussing the Fed, you know it is only a matter of time before the world's most destructive organization is eliminated. And yes, it won't go without lots of blood.

 

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Fri, 10/01/2010 - 11:01 | 618193 Mercury
Mercury's picture

Grant to Fed: You suck at central planning.

"The black art of central planning"

Beautiful.

In bringing up the "socialization of risk" Grant touches onwhat I (and I'm sure many others) have identified as the elephant in the room the Obama Administration never explicitly addresses: Will credit continue to be considered essentially a civil right and if so who is expected to bear the reciprocal risk and under what conditions?

Fri, 10/01/2010 - 11:02 | 618243 kengland
kengland's picture

What book did H. Parker Willis write in 1936?

Fri, 10/01/2010 - 11:27 | 618271 Mercury
Mercury's picture

He probably means The Federal Reserve System, H. Parker Willis, Ronald Co., 1923  which may be a revised version of the 1915 book (listed on Wikip.) by the same/similar title.  Wikipedia may actually have incomplete info. but I'd guess that Gran't edition/printing is from 1936 and contains updated info/gripes/introduction etc. as non-fiction texts often do. A good example of the many nuggets of wisdom within long-forgotten and out-of-print books.

Fri, 10/01/2010 - 11:22 | 618299 stickyfingers
stickyfingers's picture

The theory and practice of central banking, with special reference to American experience, 1913-1935

I think that's the one Grant means

Fri, 10/01/2010 - 11:25 | 618308 Steve Evets
Steve Evets's picture

The Theory and Practice of Central Banking

Fri, 10/01/2010 - 11:40 | 618347 heyligen
heyligen's picture

The Theory and Practice of Central Banking (1936)

Fri, 10/01/2010 - 11:47 | 618374 kengland
kengland's picture

This is it. Goes for around 150 used.

Fri, 10/01/2010 - 11:08 | 618257 Voluntary Exchange
Voluntary Exchange's picture

And central planning sucks at improving human well-being.

 

Suck **2 !

Fri, 10/01/2010 - 10:50 | 618195 JLee2027
JLee2027's picture

Man crush on Jim Grant!

Fri, 10/01/2010 - 10:50 | 618198 tmosley
tmosley's picture

Not only that, but he looks like Bill Nye, which makes him all the more awesome.

Fri, 10/01/2010 - 11:24 | 618305 Internet Tough Guy
Internet Tough Guy's picture

Bro-mance?

Fri, 10/01/2010 - 13:37 | 618692 DaveyJones
DaveyJones's picture

Dudes now have the record for the longest kiss

Fri, 10/01/2010 - 10:51 | 618200 taraxias
taraxias's picture

The veil is being pulled back, inch by inch..........

Fri, 10/01/2010 - 10:56 | 618223 frankTHE COIN
frankTHE COIN's picture

Whats your social security number? I just need it for back office stuff.

Fri, 10/01/2010 - 12:21 | 618484 DoctoRx
DoctoRx's picture

Frank:  I think Leo is Canadian.

Fri, 10/01/2010 - 11:03 | 618246 the not so migh...
the not so mighty maximiza's picture

Watch out for falling pallets of fiats dropping from the sky Leo.

Fri, 10/01/2010 - 11:22 | 618294 pat53
pat53's picture

FO you idiot  !

Fri, 10/01/2010 - 11:33 | 618329 SheepDog-One
SheepDog-One's picture

I pray for the day Leo gets stranded way long by a huge flash crash and we never hear from this complete idiot ever again.

Fri, 10/01/2010 - 11:39 | 618344 BobPaulson
BobPaulson's picture

The troll of the year award goes to...

Fri, 10/01/2010 - 21:21 | 620016 akak
akak's picture

Leo's comment reached 50 junks, at which point it was sent down the memory hole (just as I was about to reply to it, alas).  As it deserved.

Once again, Leo Kissmyasskiss, you prove your utter worthlessness in this forum.

Fri, 10/01/2010 - 11:43 | 618351 tmosley
tmosley's picture

I'm hoping that is sarcasm, though it's hard to tell with you, Leo.

Fri, 10/01/2010 - 14:53 | 618920 faustian bargain
faustian bargain's picture

If it's sarcasm, it's incompetent sarcasm. Ergo, junk away.

Fri, 10/01/2010 - 11:45 | 618366 Shameful
Shameful's picture

Guys don't you understand where Leo is coming from?  His livelihood depends on the Fed nuking the dollar, and generally a global meltdown in currencies.  As a pension guy he must generate returns to pay off pensioners.  Measured in fiat money of course.  So it matters not at all if the fiat will buy a can of cat food so long as he can hit his numbers and make sure everyone gets paid out.  Indeed he can even claim no fault "I performed above expectations, it's not my fault the money is worthless".  But should we actually experience deflation and the Fed and other debasing currencies he would have to explain why he lost money.  I'm not passing judgment, but everyone must remember that every man will bend his outlook to benefit his profession and station.

Fri, 10/01/2010 - 11:58 | 618421 juangrande
juangrande's picture

Leo, your comment on the "history of American business is based on legalized looting...." was removed! I was going to comment: Remove the word American and true dat. Speaks to the past essays of Cognitive Dissonance. Wake up indeed! When Money is your God, He will, inevitably, let you down.

Fri, 10/01/2010 - 12:02 | 618438 Ms. Erable
Ms. Erable's picture

When the dust settles and the chickens have come home to roost, I hope Leo has $5 million in fiat when the price of a can of dog food is $900k.

Fri, 10/01/2010 - 12:33 | 618512 Commander Cody
Commander Cody's picture

This comment must be riddled with sarcasm.  If not, then I'm gonna do a Belushi on you.

Fri, 10/01/2010 - 13:14 | 618639 downrodeo
downrodeo's picture

pfffffffffftttHAHAHAHAHAHAhAHAHAHAHAHAHAHAHA!

 

Fri, 10/01/2010 - 14:37 | 618866 gerd
gerd's picture

http://www.tavakolistructuredfinance.com/TSF91.html

Thomas Paine, one of the Founding Fathers of the United States, urged Colonists not to trust the words of “interested men” tied by money and status to the British government and British royalty: “It is the good fortune of many to live distant from the scene of sorrow; the evil is not sufficiently brought to THEIR doors to make THEM feel the precariousness with which all American property is possessed.”

Leo is an interested man.

Fri, 10/01/2010 - 10:52 | 618208 NOTW777
NOTW777's picture

and the real crooks - the american media, conceal and ignore the unfolding disaster.  meanwhile the obama business channel is covering fast food habits of the rich

Fri, 10/01/2010 - 11:33 | 618330 Bam_Man
Bam_Man's picture

What? No Lindsay Lohan updates today?

Waaaaaaaaaaaaaaahhh!

Fri, 10/01/2010 - 10:52 | 618209 wiskeyrunner
wiskeyrunner's picture

Everyone needs to cheer up, please listen to this music and it will make you feel better.

 

 

http://www.youtube.com/watch?v=kf8BT3wbZSo   

Fri, 10/01/2010 - 10:53 | 618214 Henry Chinaski
Henry Chinaski's picture

There is no question that the dollar is intentionally and systematically being destroyed.  The question is "Why?", to what purpose.

 

Fri, 10/01/2010 - 10:57 | 618225 NOTW777
NOTW777's picture

failed attempt to evade massive debt; attempt to conceal massive sin;

Fri, 10/01/2010 - 11:08 | 618261 JLee2027
JLee2027's picture

There is no question that the dollar is intentionally and systematically being destroyed.  The question is "Why?", to what purpose.

To make American products cheaper for foreign buyers, which in turn re-starts economic growth.  The Chinese, who live off a low currency in relation to a strong dollar, are furious because this will crush their economy like the paper tiger it is.

Fri, 10/01/2010 - 11:30 | 618324 Waterfallsparkles
Waterfallsparkles's picture

Yet, the Chinese People are paulpers.  They work for $1.00 a day if even that.  Is that what we have to look forward to in America?

Fri, 10/01/2010 - 11:34 | 618332 SheepDog-One
SheepDog-One's picture

'American products'? Go ahead name 3.

Fri, 10/01/2010 - 11:45 | 618368 tmosley
tmosley's picture

Dollars, Treasuries, and T-bills.

What, debt doesn't count?  Damn!

Fri, 10/01/2010 - 11:47 | 618373 Shameful
Shameful's picture

Read Snow Crash.  Like that novel American makes 3 products better then anyone else in the world.  1. Pizza 2. Movies 3. Micro-code

Sure won't carry an economy but at least we have those 3 :)

Fri, 10/01/2010 - 12:02 | 618440 bronzie
bronzie's picture

"Sure won't carry an economy but at least we have those 3"

you didn't mention the prison system - we can take turns locking each other up to keep the economy going - you lock me up and guard me for a year or two and then I lock you up and play guard for awhile

we'll be back to the good times before you know it!

Fri, 10/01/2010 - 12:08 | 618450 Shameful
Shameful's picture

Ok you got me there.  I just harp on those 3 because it's in the book, and it's a fun cyberpunk book.

The prison thing is absurd.  The Land of the Free has the highest prison pop in the world, even over China.  Funny we complain about their authoritarian state but we have more people locked up and their pop is 4x ours.  But it's a good way to dole out money to favored classes, take away rights and get Americans to work at slave wages.  Hell most people break the law every day, it's almost impossible not to.  No one even knows what all the laws are, there are so many of them it's impossible for a single human to know them all and stay current on them.  Just like older authoritarian regimes they have turned every citizen into a criminal.

Fri, 10/01/2010 - 13:25 | 618661 trav7777
trav7777's picture

you might want to examine our primary prison demographic.  China doesn't have them in China.

Fri, 10/01/2010 - 13:29 | 618667 trav7777
trav7777's picture

you might want to examine our primary prison demographic.  China doesn't have them in China.

Fri, 10/01/2010 - 12:33 | 618519 vortex
vortex's picture

Courtesy of Guild Investment

http://jsmineset.com/2010/10/01/market-commentary-from-monty-guild-73/

The U.S. labels China a currency manipulator. Brazil announces that countries are trying to devalue their currencies competitively. Is a new trade war brewing?

We have long believed that the potential for trade wars increases as economic distress grows in Europe and the U.S. Clearly, Brazil is correct; politicians who do not understand the world trade system are currently trying to devalue their currencies. They are reacting to pressure from the exporting companies in their nation and they may believe that this action will increase exports and discourage their citizens from importing goods from abroad. These beliefs are based upon the naïve and unwise assumption that their domestic consumer will buy domestically manufactured goods.

Although this simplistic model might have been somewhat accurate 50 years ago, today it is sadly uninformed and unrealistic. A global trade machine currently exists which uses components from many countries to make products produced in other countries which are then shipped to other countries, still, to be finished. The products are then sold to a new group of countries for various purposes including re-export.

The antiquated and naïve view that a lower currency will improve employment in the home country is generally incorrect.

The lower currency will not necessarily create new jobs, and on the contrary, it may create destructive unintended consequences especially inflation as imported goods become more expensive. Currently, perhaps a dozen countries are trying to devalue their currencies simultaneously.

When a nation threatens that they will “put a tariff on products from country X”, or “force country Y to revalue their currency upward”, or that they will devalue their own currency, we wonder if they have considered all the ramifications of such actions?

Trade wars are always a mistake. Most observers understand the political posturing by the U.S. congress to their constituents. They also see that those constituents may not be at all well-informed about how international trade is positive for U.S. growth and useful for employment in the U.S. The politicians are making a political statement which is simplistic and which may create unintended consequences including:

1. lower economic growth world wide which feeds back to lower economic growth in the home country.

2. increased inflation as imported goods rise in price.

3. a move by citizens into other asset classes especially gold, other precious metals, commodities in general and common stocks and out of the home currency. The citizens will buy these types of assets in order to protect themselves from the decline of their currency. This forces up the price of commodities and further exacerbates inflation.

Fri, 10/01/2010 - 11:09 | 618263 MountainMan
MountainMan's picture

Perhaps for its very survival. If industy and manufacturing is the key to real growth and employment, then a weak dollar is the answer. Any way you cut, the standard of living for a great majority of Americans is heading down.

Fri, 10/01/2010 - 11:43 | 618355 BobPaulson
BobPaulson's picture

If you're the guy who can always print more and give it to yourself, while the other 99% of the world has to work for money, why wouldn't you? I print a pile of money, and buy all your stuff. You acquire more stuff from hard work, I print more money and buy it from you. You're happy because you have lots of zeros on a computer screen or piece of paper.

Spot the sucker.

Fri, 10/01/2010 - 11:58 | 618418 The Navigator
The Navigator's picture

"never let a serious crisis go to waste" Rahm Emanuel. Crash the dollar, introduce the "new international" dollar (Amero?), move our currency even further away from the Constitution and more under the control of the New World Order.

The details, I'm not privy to; just my paranoid perspective.

Fri, 10/01/2010 - 21:37 | 620062 malek
malek's picture

Hmm... is there a serious crisis in Chicago? I mean more serious than usual?

Fri, 10/01/2010 - 13:00 | 618602 A Man without Q...
A Man without Qualities's picture

The thing is, people fail to understand the true purpose of the Fed.  It is and always has been to protect the member banks.  The Lehman collapse has confused people, but this was about stuffing a load of bad assets into an already broken firm, in order to protect the others and also there was a personal element in that Fuld was detested by Paulson, Dimon etc.  The Fed now needs to kill the Dollar, because the scale of bad assets and non-performing loans will kill the banks, unless they kill the Dollar.  Sure, this is going to cause huge damage to all those who put their faith in the Currency, but it will save the bankers and allow them to clean up at the right time, by pulling the liquidity lines at a pre-agreed point, and allowing them to come in and clean up. 

Fri, 10/01/2010 - 10:54 | 618218 TheGreatPonzi
TheGreatPonzi's picture

The FED, eliminated? If this happens one day, I would be very surprised. The FED can do what she wants, including buying all the military arsenal in the world with phony dollars and make a coup in the USA.

Fri, 10/01/2010 - 11:09 | 618265 JLee2027
JLee2027's picture

Hardly...we're talking bankers here...guys with suits not military giants. Their most devious thought involves finance, not power.

Fri, 10/01/2010 - 11:36 | 618334 Shameful
Shameful's picture

"The sinews of war are infinite money. "
Marcus Tullius Cicero

Money is power.  As the Fed has in effect infinite dollars they can should they choose wage a war.  After all what would prevent them from say hiring every merc outfit on the planet, or to outright buy all military manufacturing companies?  The wonderful thing about it is we dollar holders would be the bag holders not them.  Not saying they would do so, but we must understand the limit to Fed money printing is the size of the floating point they use in their computer system.  If it's just a double then it would be in effect 1.7976931348623157 x 10^308 dollars if it's a quad then 1.189731495357231765085759326628007 × 10^4932.  I'll point out the Zimbabwe inflation was around 1 x 10^32.

Fri, 10/01/2010 - 11:35 | 618333 SheepDog-One
SheepDog-One's picture

Oh. Then what?

Fri, 10/01/2010 - 13:35 | 618685 Nathan Muir
Nathan Muir's picture

Coup in the USA?  Good luck.  Something like 500 million privately owned firearms in the USA.  A coup would  lead to immediate declarations of state sovereignty - think Texas, Oklahoma, Montana, Washington, Idaho, Arizona, Michigan for starters.  I do agree to end the Fed we will need something drastic, a currency collapse is more probable.

Fri, 10/01/2010 - 10:56 | 618222 TheGreatPonzi
TheGreatPonzi's picture

This Grant should beware of cars in the future. So many "accidents" happened in the past...

Fri, 10/01/2010 - 12:38 | 618535 Commander Cody
Commander Cody's picture

Hot tubs too.

Fri, 10/01/2010 - 10:58 | 618227 citationneeded
citationneeded's picture

I trust him because he wears a bowtie.

Fri, 10/01/2010 - 10:59 | 618230 99er
Fri, 10/01/2010 - 10:59 | 618233 Voluntary Exchange
Voluntary Exchange's picture

Ron Paul as executor for FED dissolution? Love it!!

Fri, 10/01/2010 - 10:59 | 618235 plocequ1
plocequ1's picture

Niagra Falls!!! Slowly i turn, Step by step.

Fri, 10/01/2010 - 11:02 | 618244 wiskeyrunner
wiskeyrunner's picture

Three stooges!

Fri, 10/01/2010 - 11:04 | 618248 plocequ1
plocequ1's picture

No. Abbott and Costello

Fri, 10/01/2010 - 11:29 | 618311 Bob
Bob's picture

I'm quite sure it was "the boys."  Step-by-step, inch-by-inch . . . n-y-y-y-uuuuu-uuuuu--uuuhhhhhhhh!  [SLAP!] Get outta here you numbskull! 

Something like that.  I'd love to see that one again--a real classic. 

Fri, 10/01/2010 - 11:45 | 618337 Bob
Bob's picture

Eureka!  http://www.youtube.com/watch?v=_yJBhzMWJCc

Not only had me LMASROF, but impressed by it as lesson on the tragedy of human nature. 

 

Fri, 10/01/2010 - 11:38 | 618340 Bam_Man
Bam_Man's picture

"Why... you...imbecile. I'll BRAIN you!"

Fri, 10/01/2010 - 11:28 | 618318 frankTHE COIN
frankTHE COIN's picture

Tom and Jerry !

Fri, 10/01/2010 - 13:12 | 618636 Ben Fleeced
Ben Fleeced's picture

I Love Lucy? Lucille Ball and Vivian Vance.

Fri, 10/01/2010 - 11:36 | 618336 SheepDog-One
SheepDog-One's picture

Bugs Bunny did the routine the best.

Fri, 10/01/2010 - 11:01 | 618240 Skeebo
Skeebo's picture

post-capitalist society (one is unsure what defines it best: communism? socialism? fasism? farcism? idiocy?)

 

Feudalism.  The word you are looking for is feudalism. 

All money and property belongs to the aristocrats (politicians), the church (the fed), and the King. (Wall Street?  Not sure, but not the obvious answer).

Fri, 10/01/2010 - 11:10 | 618269 TheGreatPonzi
TheGreatPonzi's picture

The feudal Europe was not this caricature. Freedom and private property of the King's subjects were much more respected than today, and the citizens did not have to pay taxes until they volontarily choosed to place themselves under the military protection of a suzerain. The average farmer in the countryside was free of every State influence, but he was also exposed to the danger of not being protected by an army. A lot of propaganda has been made since the end of monarchy to diabolize it.

Fri, 10/01/2010 - 13:44 | 618706 Popo
Popo's picture

All land is already owned by the state. Ownership as we know it is simply propaganda to make people feel that they are not serfs. Try not paying the tithe (real estate tax) to the lord of the land, and we'll see who really owns "your" land.

By definition, if you must pay indefinitely to maintain possession of something - you are renting it.

To purchase property is a profound sacrifice of freedom. Much like serfdom, it is a deal with the devil, entered into under the guise of "security" - and quickly reveals itself to be a set of chains which bind the unwitting soul to the mercies of the banks, local and state governments and good old Uncle Sam. Serfdom is alive and well.

Fri, 10/01/2010 - 11:01 | 618241 kaiserhoff
kaiserhoff's picture

The Bernanke put is less than worthless.  It adds liquidity, but no value which makes everything unstable. 

This is a pain in the ass for traders, but the real rub for business is that all prices are suspect.  What is anything worth?  The answers are:

Tell me the free market interest rate, and I might be able to help you.

No one knows.

It doesn't matter, because it will change before you can act on it.

 

As the monkey said, as he ate the box of Ex-lax, this too shall pass.

 

Fri, 10/01/2010 - 11:02 | 618245 Bob
Bob's picture

Great analysis. 

Fri, 10/01/2010 - 11:13 | 618275 andyupnorth
andyupnorth's picture

Loosening monetary policy can only stimulate the economy when the cause for economic contraction is the monetary policy itself!  When the causes of contraction are demographics, debt saturation, stupid and over complicated regulation, corrupt regulators and politicians, and general non-enforcement of the rule of law (antitrust, bankruptcy, etc), even more loosening does nothing but add to the problem in regards to who you're giving free money to!

Fri, 10/01/2010 - 11:15 | 618279 A Nanny Moose
A Nanny Moose's picture

Great video. We do indeed learn more from failure, than success.

Fri, 10/01/2010 - 11:15 | 618282 lsbumblebee
lsbumblebee's picture

Alas. Poor Jim will never again get to inspect Becky Quick's pancake makeup up close and personal.

Fri, 10/01/2010 - 11:38 | 618341 SheepDog-One
SheepDog-One's picture

You could use Becky Quicks face as a Halloween cookie mold.

Fri, 10/01/2010 - 11:25 | 618309 alien-IQ
alien-IQ's picture

"Farcism"...oh I like that one very much. Adding it to my repetoire.

Fri, 10/01/2010 - 11:28 | 618313 Silverhog
Silverhog's picture

I'm beginning to feel like I'm in the movie "The Matrix" I wonder if Ben & Timmy can walk through walls.

Fri, 10/01/2010 - 11:33 | 618328 Bob
Bob's picture

They certainly seem to have the uncanny ability of Agent Smith to make themselves omnipresent, running roughshod over the matrix. 

Fri, 10/01/2010 - 11:44 | 618361 Sherman McCoy
Sherman McCoy's picture

Because of the Fed, we had a good run from '82-'00. If we'd been on a gold standard instead of a curve fitted Greenspanonomy, we would have had several booms and busts during that time period . Stable, growing economies encourage risk taking, which creates growth, wealth, and jobs. Workers and job seekers benefit from this manipulation. Its the savers who get hosed.

Since we know the currency will soon be worthless, every saver needs to go out and take a large fixed rate loan and buy some gold bullion. Rather than live in fantasy land hoping and praying for things that will never happen,

"you know it is only a matter of time before the world's most destructive organization is eliminated.",

we need to adapt(or die).

 

 

Fri, 10/01/2010 - 12:48 | 618475 Voluntary Exchange
Voluntary Exchange's picture

If anyone really thinks fiat/FED is better please study how to create wealth. I suggest starting at mises.org. Gold standard would have meant a severe restraint on government spending= much better efficient use of resources. Gold standard = non-theft of savings = actual credit markets going to most efficient producers instead of government stolen wealth going to boondoggles. If we had had the gold standard there would be many less grannies eating cat food today because their savings wouldn't have been confiscated by debasement and saver in general would have seen their thrift rewarded in more efficient and productive industry and a realistic return instead of bracket creep from inflated currency and higher price/wage levels with actually less purchasing power due to a smaller pie.

Those who think FED is better please cure your illusions and learn how to create wealth! If you are really lazy or especially brain washed you could start with this:

http://freedom-school.com/money/how-an-economy-grows.pdf

www.constitution.org/tax/us-ic/schiff/moltz.pdf

Fri, 10/01/2010 - 11:44 | 618364 virgilcaine
virgilcaine's picture

He spent a lifetime writing about the fed and now finds out it was a futile effort?

Fri, 10/01/2010 - 11:48 | 618378 Buttcathead
Buttcathead's picture

I told you all Bernacke is Insane.  He is going to kill us all.

Fri, 10/01/2010 - 11:50 | 618384 williambanzai7
williambanzai7's picture

This is all incredible when you step back and look at what is happening. Obama's ignorance, Geithner and Bernanke's Wall-Street-centric view of the universe, the wealth gap, the helplessness and anger of the average man on the street, the oblivious fools in Washington...

What a spectacle these financial nomenklatura.

 

Fri, 10/01/2010 - 11:50 | 618386 Milton Waddams
Milton Waddams's picture

1. Nationalize
2. Default
3. Redistribute everything, for pennies on the dollar, to friends
4. Press F5

Fri, 10/01/2010 - 12:01 | 618435 NumberNone
NumberNone's picture

Whether deliberate or just a natural occurence in a power vacuum, our elected officials ceded power over the economy to the unelected Fed with the only caveat being to keep the money flowing so that they can keep squandering it. 

Fri, 10/01/2010 - 12:10 | 618447 Hdawg
Hdawg's picture

zerohedge is a controlled asset full of spooks...go fck yourselves.

 

i deserve to be on the right side of this trade.

Fri, 10/01/2010 - 12:12 | 618461 taraxias
taraxias's picture

Someone got their pills mixed up again this morning :)

Fri, 10/01/2010 - 12:25 | 618474 Hdawg
Hdawg's picture

i understand your conditioned response.

Perhaps a few more junks may help...nothing like a but of herding to sway the readership.  Just a bunch of sheep that think they're cleverer than other sheep. baaaaa

best thing to do is respond to this with something that totally ignores the point....that'll put them off the scent.

Fri, 10/01/2010 - 14:34 | 618858 Assetman
Assetman's picture

Is that you, Rahm????

Fri, 10/01/2010 - 15:02 | 618948 faustian bargain
faustian bargain's picture

I think it's Cass.

Fri, 10/01/2010 - 22:52 | 620200 StychoKiller
StychoKiller's picture

i deserve to be on the right side of this trade.

The only thing you HAVE to do is die, all else is completely optional.  Consult wikipedia re:  Age of Kali, it might change your perspective.

Fri, 10/01/2010 - 12:17 | 618470 AnonymousMonetarist
AnonymousMonetarist's picture

'Central banks will do wisely to lay aside their inexpert ventures in half-baked monetary theory, meretricious statistical measures of trade, and hasty grinding of the axes of speculative interests with the suggestion that by doing so they are achieving some sort of vague 'stabilization' that will, in the long run, be for the greater good.'

-Henry Parker Willis

Plus les choses changent plus elles sembles pareilles!

 

 

Fri, 10/01/2010 - 12:21 | 618482 CWulf
CWulf's picture

Leo, don't worry about the pension funds, we'll print some more.

I think Post Capitalist Farcism is the adroit context, but it will be decades before I can laugh about it.

Fri, 10/01/2010 - 12:23 | 618487 twotraps
twotraps's picture

very very well said, we need more of that clarity...unfortunately it doesn't pay, won't get you on CNN or Oprah and will not likely drum up enough support from any one party to have any potential impact what so ever.

Fri, 10/01/2010 - 12:35 | 618528 Monkey Craig
Monkey Craig's picture

two things:

1) check out his bow tie.... I think he is saying something with the direction!

2) having Ron Paul as the executor of the estate of the Fed is a great idea...so is auditing the gold at Fort Knox!

Fri, 10/01/2010 - 12:39 | 618540 GFORCE
GFORCE's picture

JFK tried to end the FED.

Fri, 10/01/2010 - 12:53 | 618582 Commander Cody
Commander Cody's picture

Banksters!

Fri, 10/01/2010 - 12:46 | 618562 snakeboat
snakeboat's picture

If I buy the guy a regular tie and ship it to him, can someone help me get it around his neck?  Part of me just cringes when folks with reality-based views look like such goofballs...

 

Fri, 10/01/2010 - 12:54 | 618586 gwar5
gwar5's picture

Time to end the Fed. Audit the Fed and pull the plug. They don't loan us money, they print it for us. We can print our own money. The politicians will have to budget themselves like anyone else has to do. We don't need an unaccountable extra-constitutional authority of international elites to herd the economy and run our lives.

Fri, 10/01/2010 - 13:04 | 618612 Pseudo Anonym
Pseudo Anonym's picture

..blind rage when discussing the Fed, you know it is only a matter of time before the world's most destructive organization is eliminated.

Of course, as planned. After Reb Shalom Bernookystein's (the shtadlan) job is done in this kehilla, the hofjuden take over for the aristocracy that hired these guns to institude NWO, a.k.a. feudalism. The old is new again. Bravo. Are you ready for it? That's what I want to know.

Fri, 10/01/2010 - 14:01 | 618761 infotechsailor
infotechsailor's picture

'`.,.`'`.,.`' Ron Paul for executive of the Fed's estate sale.  '`.,.`'`.,.`'

Fri, 10/01/2010 - 14:15 | 618800 VWbug
VWbug's picture

up 'til now the fed has been in a 'win win' situation, as they wanted the dollar to fall (to help exporters, which every dope seems to think is the answer to everything).

but i really think they are seeing the downside to that policy now: possible collapse of confidence and total collapse of the dollar.

as gold continues to rise with every additional dumb fed statement, BB has to be worrying.

He may want to do QE2, but i am starting to think he won't be able to.

An all out rout of the USD would drive interest rates up, defeating the purpose of QE2.

It will be a few months more, but i think the end game is near.

Fri, 10/01/2010 - 14:39 | 618877 gwar5
gwar5's picture

Lethal intervention = dollar euthanasia

Sat, 10/02/2010 - 20:09 | 621507 ctiger2
ctiger2's picture

Ron Paul 2012. RIP Ron Paul 2013...

Thu, 02/24/2011 - 02:18 | 992031 shawnlee
shawnlee's picture

In bringing up the "socialization of risk" Grant touches onwhat I (and I'm sure many others) have identified as the elephant in the room the Obama Administration never explicitly addresses: Will credit continue to be considered essentially a civil right and if so who is expected to bear the reciprocal risk and under what conditions?

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cindycheng's picture

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