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Mike Pento Rages Against The Central Planning Committee And Moral Hazard

Tyler Durden's picture





 

Delta Global's Michael Pento refuses to go gently into that good central planning night:

[The Fed] is making the situation much, much worse and they actually caused the problem to begin with. They have the foolish belief that they can pick the right interest rate. The interest rate should be a function of the supply of savings versus the demand for money. If you have one person or twelve people on the FOMC deciding that interest rates should be 1% or 0% they distort the cost of money and they cause the demand for money to rise, they cause the amount of money in circulation to skyrocket, and then you get this rolling bubble economy. That has to stop, that's where we have to start...We have now inculcated firmly this bailout mentality in the country, and that also has to stop.

Comrade Pento, Comrade Pento... Do you know the meaning of the word Gulag? We sincerely suggest you familiarize yourself from a distance, before you are forced to make appropriate acquaintances in person. Please cease your spreading of objective and honest truth before the same FOMC you so vocally complain about, and its downstream apparatchiks, eliminate that particular optionality. Sincerely Yours, Liberty 33

 


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Thu, 01/14/2010 - 12:53 | Link to Comment AN0NYM0US
AN0NYM0US's picture

Obama just now announcing the bank tax.

"I urge the banks not to pass this on to their customers"

what a sham

Thu, 01/14/2010 - 13:02 | Link to Comment HelluvaEngineer
HelluvaEngineer's picture

Did he actually wink after he said that?

Thu, 01/14/2010 - 13:06 | Link to Comment deadhead
deadhead's picture

+1

Thu, 01/14/2010 - 13:06 | Link to Comment deadhead
deadhead's picture

+1

Thu, 01/14/2010 - 13:46 | Link to Comment Anonymous
Thu, 01/14/2010 - 15:33 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

You might consider that it was an accidental double post. They do happen sometimes.

Thu, 01/14/2010 - 16:12 | Link to Comment BorisTheBlade
BorisTheBlade's picture

+2

Thu, 01/14/2010 - 17:11 | Link to Comment Hephasteus
Hephasteus's picture

+3, we got two 1s then a 2 now a 3. Does anyone know what comes next?

Thu, 01/14/2010 - 19:18 | Link to Comment faustian bargain
faustian bargain's picture

5

Thu, 01/14/2010 - 19:53 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

+8

Thu, 01/14/2010 - 14:27 | Link to Comment faustian bargain
faustian bargain's picture

maybe it was a wince

Thu, 01/14/2010 - 14:27 | Link to Comment Commander Cody
Commander Cody's picture

+2

Thu, 01/14/2010 - 15:29 | Link to Comment Gordon_Gekko
Gordon_Gekko's picture

Yes, and he also sucked some bankster c--k afterward to make up for even suggesting such a thing.

Thu, 01/14/2010 - 16:36 | Link to Comment Anonymous
Thu, 01/14/2010 - 18:27 | Link to Comment 1984
1984's picture

That's before, during, and after. 

There. IFIFY.

Thu, 01/14/2010 - 13:05 | Link to Comment Crab Cake
Crab Cake's picture

If Obama doesn't understand that all business taxes end up on being paid by the consumer, always, then he doesn't understand business.  Yes, the sky is blue, I do understand that, I'm just say'n.  This is why the tax base should be formed by, and only by, sales taxes.  Yes it would effect the poorer in a larger way percentage wise, but everything would be above board, and one could choose not consume and thus not pay.  No taxes on property, or death, and especially on labor.  God,  I'm so pissed off!  Our government is run by corrupt imbeciles (yes that's both f'ing parties).  WTF!?

Thu, 01/14/2010 - 13:14 | Link to Comment Ragnarok
Ragnarok's picture

This policy is designed to fail, it is a set up for justification of nationalization when the impending next crash happens. 

Thu, 01/14/2010 - 13:15 | Link to Comment HelluvaEngineer
HelluvaEngineer's picture

It would also trigger an influx (and in-sourcing) of manufacturing.  Someone should notify Washington that some of these might be "good paying" jobs, not that job growth is a goal.

 

www.fairtax.org

Thu, 01/14/2010 - 15:01 | Link to Comment mikla
mikla's picture

+1

Thu, 01/14/2010 - 13:18 | Link to Comment MarketTruth
MarketTruth's picture

Uh huh, and i won't c__ in your mouth. (apologies to all for being crude)

BANK RUN BITCHES!!!

Thu, 01/14/2010 - 13:31 | Link to Comment TraderMark
TraderMark's picture

well based on "credit card reform" we should expect increased fees within the month.

Thu, 01/14/2010 - 13:45 | Link to Comment Anonymous
Thu, 01/14/2010 - 14:43 | Link to Comment Cursive
Cursive's picture

I would gladly welcome the banskters passing the tax onto me.  What I never wanted was to pass my tax dollars on to them.  This solves nothing and reinforces their greed.

Thu, 01/14/2010 - 15:05 | Link to Comment chinaguy
chinaguy's picture

The quote was: “I'd urge you to cover the costs of the rescue not by sticking it to your shareholders or your customers or fellow citizens with the bill, but by rolling back bonuses for top earners and executives.” (via ABC News)

"Aww come on......please.....I'll be your friend...."  Talk about a lost teenager trying to get along in a pool hall in the bad part of town.

He can't be this stupid. Seems more like he's saying saying to the sheeple: "Look! I'm sticking it to the bankers!!" and at the same time he's saying to everyone else (the sheeple being too stupid to understand) "business as usual, enjoy the bonuses boys"

Thu, 01/14/2010 - 17:01 | Link to Comment deadhead
deadhead's picture

That stupid shit Obama did the same thing re: credit cards at Federal Hall speech.  I started laughing so hard I thought I was going to die.....banks rallied like a son of a bitch that afternoon.

Thu, 01/14/2010 - 16:48 | Link to Comment CB
CB's picture

 

"I urge the banks not to pass this on to their customers"

can someone please tell me who are the dingalings that believe that's gonna happen? oh yeah, the sheeple.

Thu, 01/14/2010 - 12:58 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

"Comrade Pento, Comrade Pento... Do you know the meaning of the word Gulag?"

If he doesn't now, he will shortly, though it won't be a Gulag of the physical kind. When professionals publicly speak out against the consensus, they're usually shunned and ostracized by their peers long before the thought police come calling.

In reality, as long as Pento's followers don't grow significantly, he'll actually be encouraged to continue to speak out against the machine. It's only when a few dissidents are allowed their (carefully monitored and controlled ) free speech rights are we able to continue to believe in the illusion that we actually live in a democratically elected republic. That illusion is what keeps the peasants out of the streets and in front of the boob tube.

Don't worry comrade, "24" and "American Idol" are back in a week or two. The 2010 mass hypnosis session is about to begin. 

Thu, 01/14/2010 - 14:23 | Link to Comment Commander Cody
Commander Cody's picture

I'm all for hypnosis.  Bring it on Jack!

Thu, 01/14/2010 - 14:34 | Link to Comment faustian bargain
faustian bargain's picture

I think people are getting way too junk-happy recently; it's become pretty meaningless. I'm guilty of it too. I think I'd prefer if there were either 1) a better 'reputation' system (maybe with thumbs-up and thumbs-down, as well as a cumulative total under everyone's username) or 2) no comment ratings at all.

Anyhow.

+1 on the cynical take.

Thu, 01/14/2010 - 14:42 | Link to Comment WaterWings
WaterWings's picture

I agree that an up/down voting system would be nice. The topographics would be amazing! I like MarketWatch's system the most - their comment screener is the gold standard IMO. Although I could see it turning into a popularity contest instead of truly indicating fresh, insightful additions of content. It would probably make the comment section even more popular - I wonder how many readers click straight to the comments with the current system? 

About junks in general, I would say one junk is probably some signed up lurker that either has a grudge or hasn't been around long.

Thu, 01/14/2010 - 14:44 | Link to Comment Commander Cody
Commander Cody's picture

Did not junk CD.

Thu, 01/14/2010 - 15:25 | Link to Comment defender
defender's picture

Maybe a simple limit to the number of junks allowed in a time frame, making people save them for more offending posts.  Eventually this number could be increased for the more behaved posters/junkers.

Thu, 01/14/2010 - 15:50 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

"Maybe a simple limit to the number of junks allowed in a time frame, making people save them for more offending posts."

What a great idea. Then we can call in Goldman Sachs to set up a OTC market in saved unused junks which will trade on the free market and can be borrowed and shorted. Then GS can sell derivatives and short the junks they're selling out the front door while screwing us using the derivatives out the back door. Dude, that's brilliant! Where's Lord Lloyd when you need him?

Marla, I smell M O N E Y!! Here's that steady income stream you've been looking for. ZH junkers for sale over here. Get them while they're hot.

Thu, 01/14/2010 - 15:50 | Link to Comment faustian bargain
faustian bargain's picture

Oh sweet! You could sell junk allowances via paypal. Just like the market for online game currency.

Thu, 01/14/2010 - 12:59 | Link to Comment Ragnarok
Ragnarok's picture

Welcome to the Banana Republic of USA. 

 

Where is my tropical drink with an umbrella in it already?

What's that you say?  Pool arobics start at what time?

Thu, 01/14/2010 - 13:04 | Link to Comment AN0NYM0US
AN0NYM0US's picture

the BKX sure took President Obama's tough words to heart:

 

http://i46.tinypic.com/jpu71t.jpg

Thu, 01/14/2010 - 13:23 | Link to Comment Anonymous
Thu, 01/14/2010 - 13:23 | Link to Comment JR
JR's picture

WE? Mr. Pento.  Who are WE?  I prefer THEY. And we know who THEY are. Otherwise, right on!

As Mogambo Guru asked on April 25, 2009: How…can “Fed Vice-chairman Donald Kohn, one of the arrogant, lowlife mental defectives whose egregious monetary actions got us into the mess we are in” talk about purposely creating at least 2% inflation in prices and then talk about the Fed’s duty to pursue price stability at the same? As Mogambo said:

…a currency “losing half its purchasing power in a generation” means the most to those people who do not have jobs at all, and those who cannot have jobs, and therefore they have no income at all, but who still must pay all the doubled prices

And although Mr. Kohn does not use the word “sacrifice,” or the phrase “The Federal Reserve is going to make it possible for the government to steal you blind,” or admit that “The people of the United States and the world are going to be consumed in the fires of inflationary hell so that the Federal Reserve can continue to create misery and failure, while having fun playing around with their completely idiotic neo-Keynesian econometric stupidities, an absurdity that has completely captivated the dunderheads in the major universities of the dumbed-down USA, like Princeton, which has such low academic standards that Ben Bernanke, the bozo that is now the chairman of the Federal Reserve, was the head of their economics department! Hahaha!”

http://www.lewrockwell.com/orig10/mogambo8.html

Thu, 01/14/2010 - 14:36 | Link to Comment Hephasteus
Hephasteus's picture

Fed doesn't give a crap about savings. All the money they loan is faked. The only thing they are interested in is not faking too much too often and rising inflation too much. That won't happen in 2010. They'll fake an entire economy.

This is how savings relates to the system.

Banking is simple. We profit by the indebting of others by taking advantage of their need for money. We do this by creating money from nothing using the savings of others to do so. -The Dark Arts: The Secrets of Banking, 14th ed.

They are going fuck up their art this year. Fuck it up hard.

"By art we conquer, by nature we are overcome." It's too bad nature is in all the arts.

Thu, 01/14/2010 - 14:41 | Link to Comment faustian bargain
faustian bargain's picture

They don't even use savings. They just utter some magic words and poof, there's some money.

Anyway - further to your pre-edited post, the economy is already 96% fake, what's another 4%? (Just my $.02 * 0.04)

 

Thu, 01/14/2010 - 16:30 | Link to Comment Hephasteus
Hephasteus's picture

Nope they are completely reliant on savings which makes the dependency on savings oriented eastern cultures the lynch pin to this all. They fake money. There has to be something real to counterfeit. People don't pay for counterfeit tungsten bars. They pay for counterfeit gold bars. The savings MUST be present to have the underlying fakeable assets. I can't stress how vital this is to the alchemical theft of this system. Without savings the system is an uncontrolled inflationary zimbabwe animal.

With china and japan telling us to be on our merry way. Well. You can see what is going to happen. You can keep Japan in a recession for 20 years because of the ingrained savings behavior. You got 3.5 years to work with the US. We are 1.5 years into this. I guarantee you that you will see pant seems rip when this economy bends over the 2nd time. The whole world will see and hear the pants rip.

Thu, 01/14/2010 - 19:17 | Link to Comment ayanni
ayanni's picture

Damn you said that well.  

Thu, 01/14/2010 - 14:20 | Link to Comment Anonymous
Thu, 01/14/2010 - 15:32 | Link to Comment Anonymous
Thu, 01/14/2010 - 14:26 | Link to Comment Commander Cody
Commander Cody's picture

Elizabeth Warren was making sense earlier today on CNBC.  How could that happen?  Have the parallel universes shifted?

Thu, 01/14/2010 - 14:29 | Link to Comment Anonymous
Thu, 01/14/2010 - 14:48 | Link to Comment faustian bargain
faustian bargain's picture

BB has been a 'model of transparency'?? that's a good one.

Thu, 01/14/2010 - 15:40 | Link to Comment Anonymous
Thu, 01/14/2010 - 16:54 | Link to Comment Let them all fail
Let them all fail's picture

Greg must be in the same building as Fortress, exact same view....

Thu, 01/14/2010 - 17:01 | Link to Comment Anonymous
Thu, 01/14/2010 - 17:53 | Link to Comment OutLookingIn
OutLookingIn's picture

What a sham!

QE has distorted the pricing mechanisms for government borrowings and debt instruments. Government intervention has severely distorted the capacity of the marketplace to properly assess risk, allocate resources, and discipline market participants.

As a result the markets have become lagging indicators of any economic movement of negative note. The markets look upon the economy through rose colored glasses, believing their own intense speculation as being positive growth.

Bring back World War 2 high income bracket taxes. TBTFs to repay ALL bailouts. Actively pursue any transfer of funds beyond the borders. Prosecute malfeasance - at least make a start. Impose heavy fines that are life long to pay - no back door release by way of bankruptcy. Audit the Fed - then dissolve it. Sell off GM, GMAC, Fannie & Freddie, and any other private holdings - at what ever price is possible. Write down or off excessive mortgage debt. Wipe the slate clean. Tighten up belts and get back to work. Eventually, prosperity will follow. Maybe not for us, but for our grandchildren.

The alternative - failure. No more nothing. Zip. Zero. Gone.

Thu, 01/14/2010 - 18:52 | Link to Comment ozziindaus
ozziindaus's picture

The FR DOES NOT set interest rates willy nilly. The market sets the rates and the FR only react to them. If the FR were able to circumvent the bond market and set the rates to whatever they feel, they will then be sending a clear signal to all other government debt holders to exit swiftly.

This whole FR bashing is starting to sound a little fishy; possibly setting the stage for a full blown IMF takeover. The shills in congress and MSM may not know exactly who they are actually fighting for.

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