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Michael Pento Gets In Touch With His Feelings, Tells The Truth About The Fed

Tyler Durden's picture




 

Someone get in touch with a medal for Michael for daring to say what every CNBC producer hates more than anything, the truth.

Yet the market celebrates 7 more years of ceaseless asset bubble creation, debt monetization, and dollar destruction.

At least Hamptons real estate will be back to its bubble levels soon enough, as the US middle class completely disappears over the next 10 years.

 

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Tue, 08/25/2009 - 13:09 | 47606 Anonymous
Anonymous's picture

StraightShooter, I think like you, Ben B. should of gotten out while he could. I am almost certain that Ben B. will reap the whirlwind of his narcissism as will the BO and his band of merry thieves!

Tue, 08/25/2009 - 13:15 | 47614 ShankyS
ShankyS's picture

Did you notice the missing block of post time this am? TD (oops I mean Michael Pinto) has to run down to the studio for this tapeing. Not really, but he should get an honorary spot on the ZH roster.

Tue, 08/25/2009 - 14:13 | 47677 Anonymous
Anonymous's picture

So what does it take to be exposed as a paid poster on these boards, because clearly Judge is a disinformation agent.

Tue, 08/25/2009 - 16:48 | 47988 Hephasteus
Hephasteus's picture

You simply look at the communication style. A true member of the group will listen and respond and respond and listen and idea and ideologies will get integrated digested diseminated through the group. A information agent will approach the group in an entirely pushy willful way. Not accepting it's ideas and simply pushing it's own ideas onto the group. Listening not to try to understand but listening just enough to try to make convincing destructive arguements against an opponent. Then try to pit members of the true group against each other etc.

Judges approach to the group is a purely authoritarian approach. I have a million degrees. Everyone agrees with me, you are stupid for not agreeing with me. You don't understand. etc etc. It's simply intellectual bullying to try to achieve consensus. What you really have to try to watch out for is the Delphi Technique. Fox tries to do this some and actually has achieved ideological bullying to a high enough degree that they've had people call in screaming at them on the phone where they simply act smug and laugh at the people revelling in making them feel powerless against them.

http://www.eagleforum.org/educate/1998/nov98/focus.html

Tue, 08/25/2009 - 14:17 | 47681 Anonymous
Anonymous's picture

We had a failure in regulation and oversight.
We had a failure in maintaining banking reserves.
We had a failure in the holding of whole loans in that securitization incented dishonesty and untrue complex mathematical models to pass risk on.
We had no real restraint on credit extension/creation.
We accessed via global trade massive gluts of labor abroad which suppressed the labor component costs and muted price increases in most goods.
We had innovations in structuring loans which altered the apportioning cash flows, distorted the length of time necessary to repay, and assumed ever rising asset prices.
Our banking is based on fractional lending and Usury. Usury terms cannot be met without ever expanding money supply or recirculation of all interest payments plus some extra (created where?).
Gold standard is unnecessarily restrictive as it rarely can keep pace with productivity rise, population growth, new products or services, or newly discovered markets. It has a tendency to encourage hoarding which also kills money supply.

The problem is the system is founded upon an unnatural and impossible premise. (1) That loans can be repaid with interest when credit is extended (2) That fractional lending with very small reserves can exist perpetually without runs which will destroy it.

Fiat money CAN work but only if the issuer and population have an understanding of it, practice careful regulation and supervision, and practice good management and personal restraint.

Public policy which has ever tried to mute the excesses of the business cycle (due to the impossible paradigm), have caused portions of the downturn they dampened to condense and amplify upon each other until we have a final gigantic contraction which must squeeze out all the excess, fraud, and unquenched demands of debt.

Nature abhors a vacuum. We have been cheating nature; she wants her due. In the time function, its claim is present and here.

Tue, 08/25/2009 - 16:34 | 47947 Rusty_Shackleford
Rusty_Shackleford's picture

"Fiat money CAN work but only if the issuer and population have an understanding of it, practice careful regulation and supervision, and practice good management and personal restraint."

This statement is probably true.  However, it is also the most important reason why fiat money will NEVER succeed.

Whenever the issuer is government,  the Fiat Currency is automatically transformed into a political issue to be decided by those with the most political influence. 

Politicians don't weigh their votes on the basis of right or wrong or social good. They think in terms of political power. "careful regulation and supervision, and practice good management and personal restraint" is not even on their radar screen an it NEVER will be.

Wed, 08/26/2009 - 00:40 | 48447 D.O.D.
D.O.D.'s picture

+1

Tue, 08/25/2009 - 14:33 | 47717 Anonymous
Anonymous's picture

Gold standard is restrictive?

Well goddamn, I say we need a restrictive solution then!

Gold standard is the most basic and simple improvement we can make to society. Everything starts there.

Tue, 08/25/2009 - 16:30 | 47936 Hephasteus
Hephasteus's picture

The thing is to avoid a MANIPULATED system. Gold can be easily cornered and manipulated. Gold as a standard is not bad. But the people who control everything. Think of nothing but how to control everything. Do nothing but control everything all day every day get into any system and control and manipulate it.

Here's the problem both from the normal persons standpoint and from the sociopathic tyrants standpoint.

If you take a zero sum game backed by gold you end up with the rich hording controlling loaning out the gold. They get accussed of greed and hording and their stinginess gets social pressure.

Under a fiat standard the roles are reversed. You are in fact more greedy the more generous and more involved in other peoples affairs you are. The more money you invest the more entangled into everything you are the more other peoples resources become part of your resources. All you have to do is throw in a tiny bit of philanthropy and talk like you care about people you have a perfect hiding place to be entirely greedy and selfish but it's under an illusion of being generous and investing and encouraging.

This is why the system hates saving so much. Because you could just employ the riches old strategy against them. Wait for the enevitable cycles to come buy up stuff and wash and repeat. Monetary systems  are not balanced through money=assets. Fiat money systems are balanced with only about 1 dollar for every 10 dollar of hard assets because they want to be balanced in a usary fashion. Where creation of money yeilds a 10 fold increase in profit but not right away. It must be loaned out and then wait for it to come back and then skim that through taxes. Undertaxing gives you net increase in money supply overtaxing reduces money supply. This creates the system where you make a living just providing something everyone needs and wants. And a system of governance where you take care of the things the free market doesn't.

You have to study america's system that they had for a very short brief time to see the only example of a system that does work. It is fiat and it is zero sum but simply relied on social pressure to avoid hording and greed. All other systems have been tainted manipulated and screwed over the same forces of greed and control. Gold standard with the same people in charge is screwed it's just screwed in different ways.

The real problem with America's system right now is it's being too effective at creating a sympathetic acting as one core with a controlled periphery. The core is not taking care of the needs of the periphery well enough and it's creating problems. Industry always tries to work on 3 prong system where you have say a farmer, food manufacturer, retailer. Manufacturer, supplier, retailer. In our system one of those legs of every 3 prong is getting screwed over by the other 2 legs and they typically end up hurting themselves in some fashion. What we have now is not enough good jobs so everyone is trying to get into retirement, investment portion of the economy driving up home prices driving up investment assets etc etc. Essentially trying to create 4th legs in a 3 leg system by creating a new rabid inflating group that pressures the real economy till it breaks. In big ticket items you see everyone trying to create industrial mashups where they not only try to profit from making the big ticket item they try to central bank as well. GM no longer worries about how much each unit sale makes it. It worries about how much each unit makes it a month in a long term cash flow model because it finances it's own sales.

Tue, 08/25/2009 - 17:20 | 48037 Anonymous
Tue, 08/25/2009 - 18:25 | 48116 Printfaster
Printfaster's picture

What is this ?  I thought Al Gore invented the internet?

Now it seems that the Fed invented the internet through its monetary policies.

The world revolves around finance.  Finance should be revolving around the world.

Tue, 08/25/2009 - 21:00 | 48272 Anonymous
Anonymous's picture

After reading the Judge's comments over the past few days I have decided precisely what I will feed my feral hogs that I have to hunt and domesticate once Big Ben's party is over.

Tue, 08/25/2009 - 21:24 | 48293 Anonymous
Anonymous's picture

jUDGE: you are conflating parachutes with the need to jump off a cliff in the first place. injecting liquidity to offset hyper deflationary events like Lehman or 9/11 is one thing -- but such injections don't need to be done by the Fed, they could be done by another agency whose only role is to intervene in such circumstances. I agree with Pento -- not because I'm a gold bug, but because my of belief that the Fed does nothing that is right for the "long term" and anything that will make their cronies on Broad st rich, so that they can be re-appointed and respected and stuffed at banquets like Jackson hole. they are a bunch of griftsters with education -- not a friendly combo if you ask me. if you kick the can down the road long enough,the can becomes so crumpled it no longer goes in the direction you think it will...perhaps getting lost beyond a bluff that will get called with the passage of time.

Tue, 08/25/2009 - 22:28 | 48346 Gilgamesh
Gilgamesh's picture

CNBC 'World' is like the anti-CNBC.  Guest host telling people to take their profits and put it into a VIX ETF or something VIX-like.  Does Immelt know this is going on?  It seems so, based on the hundreds of "The More You Know" PSA garbage spots comprised of airhead actors reading one word scripts.

Wed, 08/26/2009 - 01:26 | 48481 agrotera
agrotera's picture

Michael Pento is a truth telling good soul! 

Wed, 08/26/2009 - 06:12 | 48534 Anonymous
Anonymous's picture

http://www.youtube.com/watch?v=U7yBfL2esAM - here is the true sage who get it all right, listen:

Wed, 08/26/2009 - 08:14 | 48557 economicmorphine
economicmorphine's picture

I'd like to have fat boy's email address.  What a fucking tool.

Wed, 08/26/2009 - 08:33 | 48562 ccurtis
ccurtis's picture

We need the Fed, because they are our indefinite slow morphine drip.  We are a long way off from step 1 of the famous 12 step program.

Tue, 09/15/2009 - 23:14 | 70705 Anonymous
Anonymous's picture

"Price stability" = all productivity gains are skimmed for bankers and borrowers.

Wed, 02/17/2010 - 12:12 | 234046 Anonymous
Anonymous's picture

There is a solution to replacing the Fed.. It's called Freedom's Vision and is promoted by the American Party PAC at swarmusa.com.

Do NOT follow this link or you will be banned from the site!