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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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Anonymous
Thu, 11/19/2009 - 06:53 | Link to Comment 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 | Link to Comment skippy
skippy's picture

NEW in red italics???????

Other wise did Kman just soil his pants.


Wed, 11/18/2009 - 01:00 | Link to Comment . . .
. . .'s picture

Tyler, Tyler, Tyler

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

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

thanks for the link.

Kudlow: it's just another Bernanke bamboozle

Wed, 11/18/2009 - 01:00 | Link to Comment rayen36
rayen36's picture

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

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

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

Wed, 11/18/2009 - 01:17 | Link to Comment rayen36
rayen36's picture

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

Wed, 11/18/2009 - 01:18 | Link to Comment 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 | Link to Comment SayTabserb
SayTabserb's picture

Yes, then as well.

Wed, 11/18/2009 - 01:06 | Link to Comment Anonymous
Wed, 11/18/2009 - 01:09 | Link to Comment primus
primus's picture


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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Unscarred
Unscarred's picture


Wed, 11/18/2009 - 09:29 | Link to Comment Anonymous
Thu, 11/19/2009 - 06:55 | Link to Comment Chopshop
Chopshop's picture

Fantastic idea, Unscarred !  

Wed, 11/18/2009 - 01:23 | Link to Comment 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 | Link to Comment Anonymous
Wed, 11/18/2009 - 02:11 | Link to Comment Problem Is
Problem Is's picture

I concur...

But it is Bennie Bernank -sters call...

Wed, 11/18/2009 - 01:31 | Link to Comment Anonymous
Wed, 11/18/2009 - 01:41 | Link to Comment 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 | Link to Comment 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 | Link to Comment D.O.D.
D.O.D.'s picture



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

" 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 | Link to Comment Anonymous
Wed, 11/18/2009 - 01:59 | Link to Comment TomJoad
TomJoad's picture

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

Wed, 11/18/2009 - 02:03 | Link to Comment Anonymous
Wed, 11/18/2009 - 02:05 | Link to Comment 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 | Link to Comment Anonymous
Wed, 11/18/2009 - 03:10 | Link to Comment 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 | Link to Comment 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 | Link to Comment Anonymous
Wed, 11/18/2009 - 06:04 | Link to Comment Anonymous
Wed, 11/18/2009 - 06:25 | Link to Comment 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 | Link to Comment Anonymous
Wed, 11/18/2009 - 07:45 | Link to Comment 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 | Link to Comment Anonymous
Wed, 11/18/2009 - 10:56 | Link to Comment 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 | Link to Comment 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 | Link to Comment max2205
max2205's picture

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


Read More: Bank Bailout, Barney Frank, Congress, Defazio, Deficit, Democrats, Earl Blumenauer, Extra Tarp Money, Federal Deficit, Financial Crisis, Homeowners, House, Jobs, Leftover Tarp Funds, Leftover Tarp Money, Main Street, Obama, Peter DeFazio, Recovery, Republicans, Senate, Small Business Loans, Tarp, Unemployment, Unused Tarp Money, Wall Street Bailout, White House, Politics News
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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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment DavosSherman
DavosSherman's picture


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 | Link to Comment Anonymous
Wed, 11/18/2009 - 11:58 | Link to Comment 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 | Link to Comment 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

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


Wed, 11/18/2009 - 09:34 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Anonymous
Wed, 11/18/2009 - 12:48 | Link to Comment 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.


Wed, 11/18/2009 - 13:10 | Link to Comment Anonymous
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