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Kudlow Defends Dollar, Lashes Out Against Fed "Loose Money" Policy

Tyler Durden's picture




 

If there is one sure sign of an impending apocalypse, it is listening to Kudlow and agreeing with (at least a few) of the things he is saying. The fact that David Malpass, Peter Navarro, Rick Santelli and the abovementioned are all on the same page, is 100% confirmation that an ELE is headed our way. Rick Santelli nails it as always: "watch what gold is doing because that is a no confidence vote in fiscal and dollar policy." Followed up by several critical observations from Navarro: "If China fixes their exchange rate, it makes it impossible for the trade imbalances to self correct. Isn't it the single greatest threat to free trade we have right now in the world? Ask the Brazilians, the Russians, the Taiwanese: it's killing the world economy because as the dollar goes down it is dragging the yuan with it because of the hard peg to the dollar" and "the world is now going back toward a gold standard." And lastly, this rhetorical pearl from a Dr Jekyll and Mr. Kudlow: it appears the CNBC anchor is a different person before and after 6pm: "When has a nation devalued themselves into prosperity?" We hope Mr. Bernanke will answer this simple query at his next circlejerk peroration.

 

 

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Wed, 11/18/2009 - 00:43 | 134104 Cursive
Cursive's picture

Puppets.  Not trying to turn this into a Santelli lovefest, but everybody but Santelli looks and sounds like a puppet.  Kudlow is unbearable (and I used to like him roughly 4 years back).  Malpass is hit-or-miss.  Maybe the dollar will catch a bid now?

Wed, 11/18/2009 - 00:46 | 134107 agrotera
agrotera's picture

I love Larry Kudlow even though i think he has been literally blind to much of the corruption of our political/financial machine.  I don't think for a second he has sold his integrity like some people, to support corruption, he just honestly had no real idea of the big picture...and now i think he does.

He means well, he is a peacemaker, and i think he may have awakened and BRAVO for him speaking out!!!!

 

Thu, 11/19/2009 - 06:05 | 135588 Anonymous
Anonymous's picture

If Joe average shoots off his big mouth in ignorance, in the process spewing harmful financial advice, the damage is very limited. But when you have an idiot with a national forum, giving an uninformed opinion on the true state of the U.S. economy, the damage is widespread. People believe this man, who has been given the national stage, must know something or else he wouldn't be there. Your forgiveness for his ineptness makes you a deserving Kudlow victim.
In truth, having a man such as this advising main street investors in financial matters is unconscionable.

Thu, 11/19/2009 - 06:53 | 135595 Chopshop
Chopshop's picture

Kudlow is the very definition of the word shill; alongside Jimmy J. 

They each 1) explicitly know what they're doing; 2) have no moral reservations or ethical qualms about it; and 3) make sure to tell the world why they are uniquely important and so totally honest.  

In the exceedingly rare instance of turning on CNBC (Criminal Narrators Boosting Crude) and goodness forbid seeing LK on the screen ... without volume I can still hear him talking except his voice has been replaced by the sound of the "tramcars" from the oh so lovely Jersey shore.  watch, wa, watch, watch, wa, wa, watch, watch the tramcar please.  Larry is the ringmaster of the 3rd grade economic carnival that he calls hard-hitting financial speak.  He could cheerlead the Bataan death march with a straight face.  

Wed, 11/18/2009 - 00:58 | 134121 skippy
skippy's picture

NEW in red italics???????

Other wise did Kman just soil his pants.

 

Wed, 11/18/2009 - 01:00 | 134126 . . .
. . .'s picture

Tyler, Tyler, Tyler

This Kudlow video is even better.  David Goldman calls fed policy "chrystal meth monetary policy" at the end

http://www.cnbc.com/id/15840232?video=1333186566&play=1

Wed, 11/18/2009 - 01:36 | 134163 Careless Whisper
Careless Whisper's picture

thanks for the link.

Kudlow: it's just another Bernanke bamboozle

Wed, 11/18/2009 - 01:00 | 134127 rayen36
rayen36's picture

wasn't Kudlow a bigtime cokehead in the 90s?

Wed, 11/18/2009 - 01:03 | 134133 Cheeky Bastard
Cheeky Bastard's picture

What do you mean by "in the 90's"?


Wed, 11/18/2009 - 01:17 | 134145 rayen36
rayen36's picture

oops, rephrase:  Isn't Kudlow a bigtime crackhead?

Wed, 11/18/2009 - 01:18 | 134147 SilverIsKing
SilverIsKing's picture

That was funny CB.  I recall him pitching Cadillacs on TV back then.  I couldn't find the commercial on YouTube though.

Wed, 11/18/2009 - 01:17 | 134146 SayTabserb
SayTabserb's picture

Yes, then as well.

Wed, 11/18/2009 - 01:06 | 134136 Anonymous
Anonymous's picture

when larry krudblow speaks he reminds me of a constipated dinasaur digesting a case of ex-lax....

Wed, 11/18/2009 - 01:09 | 134140 primus
primus's picture

Heh...

Kudlow finds religion!?! Go ahead, Ber-skankie, raise rates to defend the earthworm and see what happens. Timbo, claw back the stimulus, close the deficit and turn off QE.

Ber-skankie and Timbo know they can't raise rates or do anything meaningful to support the dollar. Not without sending what is left of the economy straight to the morgue. Lets see what Kudlow thinks of the strong dollar with un-employment north of 30% and SPX under 600.

Wed, 11/18/2009 - 01:21 | 134144 Unscarred
Unscarred's picture

Dare I introduce The CNBC Index?!  The overall weighting for near-term market projections could be weighted by using the following structure:

46% Rick Santelli
23% Joe Kernen
17% David Faber
12% Larry Kudlow
5%  Jim Cramer
2%  Charlie Gasparino
0%  Maria Bartiromo
-5% Michelle Caruso-Cabrera

Wed, 11/18/2009 - 04:03 | 134239 j0sh1130
j0sh1130's picture

i like it.  except the market is irrational and so is MCC.  so maybe just 100% mcc.

Wed, 11/18/2009 - 12:54 | 134583 Unscarred
Unscarred's picture

+100

Wed, 11/18/2009 - 09:29 | 134318 Anonymous
Anonymous's picture

That michelle woman is the worst. She really has no clue what is going on. Ever.

Thu, 11/19/2009 - 06:55 | 135596 Chopshop
Chopshop's picture

Fantastic idea, Unscarred !  

Wed, 11/18/2009 - 01:23 | 134151 SayTabserb
SayTabserb's picture

'Fraid I have to agree that BB and Eraserhead have no good options. I thought Kudlow was hitting all the right notes, and Tyler, that "apocalypse" line was hilarious. (Although using "peroration" correctly is always a little tricky.) If BB and E-Head raise rates, at all, goodbye to the govt's mortgage business, and the S&P and Dow will, well, head south where they belong. The American economy will be taped to the table, and BB will be "Dexter."

Wed, 11/18/2009 - 01:35 | 134161 Anonymous
Anonymous's picture

interest rates cannot rise due to the massive
quantities of debt the usa has...thus low interest
rates forever and massive liquidation of capital....

low interest rates, continued debt creation,
and qe will bury the dollar....

but i say bring on the deluge....it's got to
be cleaned up whether unemployment goes to 50%
or not....and in the process i hope that all
banksters get buried alive...

Wed, 11/18/2009 - 02:11 | 134189 Problem Is
Problem Is's picture

I concur...

But it is Bennie Bernank -sters call...

http://i677.photobucket.com/albums/vv133/problemis/Zero%20Hedge/eraserhe...

Wed, 11/18/2009 - 01:31 | 134158 Anonymous
Anonymous's picture

navarro is correct about the excahnge rate problem....china can't be fixed if everyone else is floating....the whole purpose of floating rates was to allow premiums to build in currencies to compel corrective shifts in trade - or better yet rebuilding of america's economy....

a higher yuan would stem the hemorraging of money to china....at least the balance of payments...

i fail to see how a higher yuan would accelerate capital flight if interest rates in the usa rose....even if interest rates didn't rise markedly i don't see the argument...

capital flight is a result of the fed as well as regulatory and tax policy and is the largest economic problem america faces....

krudblow was right - currency debasement is not a formula for success....

Wed, 11/18/2009 - 01:41 | 134167 delacroix
delacroix's picture

.5% rate hike would sure help the dollar. and it wouldn't kill the economy, it would just waterboard it. you know make it think and feel like its dying.

Wed, 11/18/2009 - 02:04 | 134182 agrotera
agrotera's picture

it would expose the underbelly of the monumental lie that the "bailout" was to protect all of us because the low rates are ONLY helping the blackholebanks that should have been exposed as failures, broken up and sold to the highest bidder.

Wed, 11/18/2009 - 02:22 | 134192 D.O.D.
D.O.D.'s picture

delacroix,

+1000!!!

Wed, 11/18/2009 - 01:44 | 134168 D.O.D.
D.O.D.'s picture

"...world wide currency co-operation, that is in effect tied to gold and commodities..."

One world currency....yeah that's the ticket.

Problem, Reaction, Solution... works everytime...

Wed, 11/18/2009 - 01:56 | 134178 Anonymous
Anonymous's picture

THEY TOOK OUR JOBS!

Wed, 11/18/2009 - 01:59 | 134179 TomJoad
TomJoad's picture

This is it, I'm closing the lid to the bunker. 

Wed, 11/18/2009 - 02:03 | 134181 Anonymous
Anonymous's picture

I never expected to see Larry Kudlow down here in this rabbit hole. Someone spiked his fresca.

Wed, 11/18/2009 - 02:05 | 134184 Hephasteus
Hephasteus's picture

Create 3 to 6 percent more debt than production and debt outproduces every form of production on the planet. It's the ultimate inconceivable illogical real thing present on the planet. It's not going to cause a depression. It's going to cause a massive global psychotic break.

Wed, 11/18/2009 - 02:37 | 134206 Anonymous
Anonymous's picture

Even Kudlow could make sense once in a long while?! Wow, what day is today?

Wed, 11/18/2009 - 03:10 | 134219 g8lice
g8lice's picture

PEG the frickin dough$ to  crb Raw index n gold

and the spread of the EMBI+ bond yield and

either the USA 30yr bond yield..

nivrana 2 years. that simple...

 

Wed, 11/18/2009 - 04:39 | 134242 Mark Beck
Mark Beck's picture

Lets ask this question: Has the FED lost control of the USD? 

or the corollary: Why would anyone buy US debt?

There is a very real risk that the FED will never adequately regain control at anything close to todays valuation.

Wed, 11/18/2009 - 04:49 | 134244 Anonymous
Anonymous's picture

Raise the Rate !

Wed, 11/18/2009 - 06:04 | 134265 Anonymous
Anonymous's picture

please explain to me why anyone least of all ZH is listening to kudlow?

-he is uncritically slavish to conservative economic othordoxy.

-his idea of an interview is 95% him 5% interviewee

-he uses volume instead of intellect

so why do you report on his moronic outpourings? there's too much of interest to waste time on ugly wallpaper.

Wed, 11/18/2009 - 06:25 | 134269 brodix
brodix's picture

It's not like any of this is complicated. People have been having credit and currency collapses since the dawn of time. The longer we put it off, the harder it falls.

 If the powers that be insist on siphoning the wealth out of the larger economy and then try saving it by loaning back out..... Well, welcome to reality.

Wed, 11/18/2009 - 07:27 | 134280 Anonymous
Anonymous's picture

We're all doomed . . .

Wed, 11/18/2009 - 07:45 | 134283 jesusonline
jesusonline's picture

Some rain on the gold bulls parade: the world isn't going back to the gold standard. Maybe just a few people who try to preserve their wealth in the face of $ devaluation. The most of the world will rather be standing in lines for government checks and subsidies. Tell me how to rebalance the current credit-based system back to gold without derivatives. The world without Goldman Sachs? It sounds nice, but how you get there? Buy gold? Right. I am having a hard time believing gold bugs can beat central banks and the whole sort of investment banksters. And if it really spikes to some unprecedented highs it can also be confiscated via FDR 2.0 kind of stuff. 

Wed, 11/18/2009 - 09:56 | 134334 Anonymous
Anonymous's picture

You aren't raining on anything. Smart folks know that a gold standard artificially restrains gold, not the other way around. Gold right now is seeking it's true value on a global scale - this is necessary. Gold should never again be pegged to anything. Government should go back to creating the money debt free (Ellen Brown), and savers should accumulate PMs cap gains tax free. It's the banks that need to be restrained. You don't need to rebalance the credit based world via derivatives - you just need to revalue gold, once. Then let gold market float as it does now, and elected Government face the voters on how THEY handle inflation.

Wed, 11/18/2009 - 10:56 | 134394 jesusonline
jesusonline's picture

Government should go back to creating the money debt free

The Western world is de-facto in Chapter 11. The short-term future solely depends on piling more debt - they've made it clear.

Gold should never again be pegged to anything... and elected Government face the voters on how THEY handle inflation

Amen. Looks like utopia to me though. I'm just saying this is a zero-sum game. TPTB will always wanna hold on to their power. Everytime a Louis McFadden/Ron Paul comes up to them he's either poisoned or ridiculed and their bills against Fed are watered down. Nobody will let gold become "people's money". Any civil uprising against the banks would be tantamount to a government revolt.

Wed, 11/18/2009 - 08:09 | 134289 Astute Investor
Astute Investor's picture

Maybe Kudlow is trying to position himself as a regular contributor on Zero Hedge....?

Wed, 11/18/2009 - 08:43 | 134295 max2205
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Now consider this and what is involved getting TARP out of whatever security it resides, and how in the world it could be liquidated:
Dems Want Unspent TARP Funds For Main Street Bailout
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First Posted: 11-18-09 12:07 AM   |   Updated: 11-18-09 01:45 AM

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Democrats in Congress want to use unspent TARP funds to support homeowners and struggling workers, according to The Hill.
More than half of the Democrats in the Senate want to use the remaining money to provide small businesses with easier access to credit. Rep. Barney Frank (D-Mass.) has proposed using $2 billion of it to give aid to homeowners facing foreclosures. Reps. Peter DeFazio (D-Ore.) and Earl Blumenauer (D-Ore.) have proposed using some of the money for infrastructure projects, which they say would lead to more jobs.
A decision to spend the $210 billion in unused TARP money on a bailout for main street would pit congressional Democrats against president Obama, who hopes to use the leftover bank bailout funds to pay down the the nation's deficit, according to a report published last Friday in the Wall Street Journal. The newspaper reports that the Obama administration is under pressure to prove that it's serious about reducing the deficit:
Agreeing not to spend a certain amount of TARP money will enable the White House, in its budget projections, to assume less money out the door and, therefore, less debt issued. The move would also reduce the deficit by an unknown amount since a certain level of spending and borrowing is already factored into estimated future deficits.
According to The Hill, there are some Democrats who are "hopeful" that leftover TARP funds could go toward both deficit reduction and aid for average Americans.

Wed, 11/18/2009 - 08:48 | 134298 Brett in Manhattan
Brett in Manhattan's picture

Kudlow is just setting the stage for the inevitable raising of rates, which will coincide with the plug being pulled on the market. As rates rise, the talking heads on CNBC will begin to paint a bleak picture, indirectly encouraging the public to abandon the market for the safety of the banks, leaving the stocks sold at the bottom, for exchange insiders.

Wed, 11/18/2009 - 08:51 | 134301 lieutenantjohnchard
lieutenantjohnchard's picture

i'm a kudlow supporter because he loves America. true, he cheerleads the stockmarket too much, and misses the big picture (sometimes, mostly - you choose). yet he supports the country and free markets in a very optimistic way.

when i had cable and watched him i admired those traits. i assume he still is the same. haven't watched cnbc except for clips on zero for past few months.

of course, rick's the best.

Wed, 11/18/2009 - 12:02 | 134469 milbank
milbank's picture

Yeah, I love America too but, for Kudlow it's like saying "He loves women that's why he's been promoting rape of them for so long." Kudlow, who called the early part of this decade the "Productivity Miracle" and was calling the last half of the previous one "a New Paradigm" Don't be a stooge lieutenant.

"When fascism comes to America, it will be draped in the flag and carrying a cross."

-- Sinclair Lewis

Wed, 11/18/2009 - 08:59 | 134304 DavosSherman
DavosSherman's picture

Wow.

Second a Dennis Kneale re-run or listening to Maria's fingernails on the blackboard voice Kudlow get's my vote for CNBC's biggest loser. Of worthy note: Cramer the clown did come in a close 4th.

Wed, 11/18/2009 - 09:14 | 134309 Anonymous
Anonymous's picture

Why do they always have to shout at each other on CNBC?

DavidC

Wed, 11/18/2009 - 11:58 | 134495 Hephasteus
Hephasteus's picture

Because you can't run with the big dog's if you don't bark all the time.

Wed, 11/18/2009 - 09:18 | 134312 Catullus
Catullus's picture

I am more convinced than
ever that if we ever again are going to have
a decent money, it will not come from government:
it will be issued by private enterprise,
because providing the public with
good money which it can trust and use can
not only be an extremely profitable business;
it imposes on the issuer a discipline to
which the government has never been and
cannot be subject. It is a business which
competing enterprise can maintain only if it
gives the public as good a money as anybody
else.

-- F. A. Hayek, A Free-Market Monetary System

 

Wed, 11/18/2009 - 09:34 | 134321 heatbarrier
heatbarrier's picture

The danger here is what the weak USD-Yuan is doing to the EU, that's the weakest point of the global economy right now.

Wed, 11/18/2009 - 09:43 | 134326 Tic tock
Tic tock's picture

Not so much of a Global economy anymore, at least with a strong dollar there's an incentive to export goods to the US. But now, really, what's the point in the US consumer?

Wed, 11/18/2009 - 09:54 | 134332 spanish inquisition
spanish inquisition's picture

Reread the whither dialog, I am no expert on the Chinese, but a couple things that were not in my note. Her presenting of materials was well thought out from a Chinese perspective and she was almost rude in her tone by Chinese standards.

The Chinese are watching the  sack of Rome in the US by its banks and government. They either unpeg and let the dollar drop to 51 (because 51 is more than 50 and technically a "strong dollar" policy or "is is is?") or they hold the feet of the criminals to the fire to actually enact meaningful regulation.

Worst case scenario for them is what, starting over with no debt, gold in the bank to back their currency and 6 months of commodities. What does the US have? 5000 tonnes of gold, 2000 is tungsten cored with a country that has been gutted like a vacant house that still has its $750K mortgage. It's better than the UK's vault of a gold plated serving set and some teeth, but at least they have alot of security cameras they can hock.

The only weak spot for the Chinese right now is that they are a bit arrogent in their abilities and attitudes and that may lead them into a trap. I am guessing a few are planned already.

Wed, 11/18/2009 - 10:40 | 134375 DrPsycho
DrPsycho's picture

"100% confirmation that an ELE is headed our way."

 

             oooh, I love it when u talk apocalyptically.........

Wed, 11/18/2009 - 12:35 | 134547 Anonymous
Anonymous's picture

Larry Kudlow, who wrote the forward to:
Bush Boom
http://www.amazon.com/Bush-Boom-Misunderestimated-President-Economy/dp/1...

Wed, 11/18/2009 - 12:48 | 134569 Lionhead
Lionhead's picture

Readers may want to look at this white paper re a trade reference currency. The interview was most interesting to me not for the babble on the Yuan, but the more subtle & important issue of a commodity backed currency basket. Waiting for more work from ZH to present the issues on this.

http://www.terratrc.org/PDF/Terra_WhitePaper_2.27.04.pdf

 

Wed, 11/18/2009 - 13:10 | 134617 Anonymous
Anonymous's picture

Kudlow is a Republican cheerleader above all. Well, not quite above all. He is a Wall Street cheerleader first. He cries now for "King Dollar" and he opposes government intervention, but when the Wall Street firms were asking for bailouts he couldn't shovel enough taxpayer money their way.

And things that made for a "goldilocks economy" under Bush now are signs of the apocalypse.

That said, his show isn't bad if you can tune him out (very hard because he interrupts and shouts over guests) and listen to the guests. It's sad to say but he's the best CNBC has.

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