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Ron Paul To Ask Fed Why After Trillions In Free Money, Unemployment Is Still Sky High

Tyler Durden's picture





 

While everyone is relishing the Fed's third and only mandate these
days, namely to send the Russell 2000 to 36,000 and cotton limit up to
infinity and beyond, while everyone else is terrified to short stock in
advance of what increasingly appears like near certain additional
quantitative easing, congressman Ron Paul has announced that the first
Monetary Policy subcommittee meeting will focus on one of those two now
forgotten Fed mandates, that of creating jobs. “I’m very pleased to
hold our first subcommittee hearing in the new
Congress on a topic that could not be more critical, namely
unemployment.  Despite enormous amounts of monetary and credit expansion
by the Federal Reserve in recent years, the nation’s unemployment
picture remains bleak.  While many focus on the impact of fiscal
policies on employment,  the effect of monetary policy often goes
unexamined.  In my view we are now experiencing the bust that inevitably
results from the misallocation of capital and human resources in a
period of artificially cheap credit.  It is important to understand the
Federal Reserve’s role in creating today’s unemployment crisis, while
also highlighting that high unemployment and low economic growth can
persist even in the face of tremendous monetary inflation.
” Of
course, the answer to all of these problems is simple: no debt ceiling
raise. If the Fed can't monetize any more debt and make the Primary
Dealers ever richer (now that the PD ranks have just been expanded from
18 to 20 to include SocGen and derivative (!) trader MF Global, and its
CEO Jon Corzine) from commissions on indirect debt monetization, its
power is gone. But that will mean doing something for less theatrical
than a few hearings, and far more responsible: such as preventing
rampaging inflation across America (see cotton chart posted previously).

Paul Announces Subcommittee Hearing On The Federal Reserve’s Impact on Unemployment (link)

Domestic
Monetary Policy and Technology Subcommittee Chairman Ron Paul announced
today the Subcommittee will meet for a hearing to examine the impact of
Federal Reserve policies on job creation and the unemployment rate. The
hearing will be held on Wednesday, February 9th at 10 am in room 2128
Rayburn.
 
Subcommittee Chairman Paul said, “I’m very pleased to
hold our first subcommittee hearing in the new Congress on a topic that
could not be more critical, namely unemployment.  Despite enormous
amounts of monetary and credit expansion by the Federal Reserve in
recent years, the nation’s unemployment picture remains bleak.  While
many focus on the impact of fiscal policies on employment,  the effect
of monetary policy often goes unexamined.  In my view we are now
experiencing the bust that inevitably results from the misallocation of
capital and human resources in a period of artificially cheap credit. 
It is important to understand the Federal Reserve’s role in creating
today’s unemployment crisis, while also highlighting that high
unemployment and low economic growth can persist even in the face of
tremendous monetary inflation.”
 
The Federal Reserve has taken
unprecedented action to provide liquidity to financial markets and some
U.S. corporations; however, unemployment remains above 9 percent.  The
hearing, entitled Can Monetary Policy Really Create Jobs?, will focus on
the Fed’s recent actions, the likelihood those actions will reduce
unemployment, and the critical role of the private sector in job
creation.

While the Obama administration and Democrats in
Congress believe increased government spending will improve the nation’s
economy, Republicans on the Financial Services Committee know economic
growth depends on providing the private sector, especially small
businesses, with the certainty they need to create jobs.  The Fed’s
policies, as well as the Obama administration’s unsustainable debt and
spending, continue to prevent small business owners from growing and
hiring because of continued uncertainty over new taxes, higher interest
rates, and the expanding role of government in the economy. 
 
On
November 3, 2010, the Federal Reserve announced that it planned to
purchase $600 billion in long-term Treasuries (dubbed “QE2”).  This is
the second time since the 2008 financial crisis that the Federal Reserve
has engaged in quantitative easing. The latest round of quantitative
easing, along with the Fed’s action to bailout financial companies, has
added trillions of dollars to the government balance sheet. 

 


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Wed, 02/02/2011 - 18:12 | Link to Comment Magic Mamaliga
Magic Mamaliga's picture

My abs are rock hard thanks to your gut busting antics Hamy!

Thanks to you, I just got off the phone with AAPL and Lululemon and will be working part time at both companies!

These worry warts don't know jack!

With love and admiration,

Magic Mamaliga

Wed, 02/02/2011 - 18:48 | Link to Comment Careless Whisper
Careless Whisper's picture

what is this thing, an a, with a ring around it? and what is the internet?

the today show - 1994:

http://www.collegehumor.com/video:1946111

 

 

 

Wed, 02/02/2011 - 19:06 | Link to Comment Zero Govt
Zero Govt's picture

Harry, how is it in LaLa Land? Your day job at Obamas press office not keeping you bizzy enuf you gotta come over here and spread your delusional recovery rubbish. They're bamboo shoots mate, not green shoots, few too many take-outs son! 

...getting junked 23 times is fuking impressive (no i didn't, i like you around for a good laugh:)

Wed, 02/02/2011 - 19:08 | Link to Comment EscapeKey
EscapeKey's picture

The joke's on you; it's Hamy, not Harry.

Wed, 02/02/2011 - 20:10 | Link to Comment Malcolm Tucker
Malcolm Tucker's picture


You're not going to believe this...and I mean that !

http://fedupmontrealer.blogspot.com/2011/02/itanimulli.html

Implies that Illuminati = NSA ...at least backwards!

Wed, 02/02/2011 - 21:26 | Link to Comment Dapper Dan
Dapper Dan's picture

But all you need to know about it is here:

http://arthurgoldwag.wordpress.com/2010/…

Arthur Goldwag is a blogger who does a whole 'column' about it. He points out: "WordPress has a feature on its stats page that shows me the search terms that people use to find me and “itanimulli” is one of the biggest ... Other people took the next step and investigated. They swiftly discovered that a computer geek named John Fenley, who lives in Provo, Utah, purchased the domain name “Itanimulli” and is redirecting visitors to the NSA."

John Fenley, who owns the website you asked about, revealed at one point the reason you get the NSA if you type in "itanimulli": He "decided to forward the domain Itanimulli.com domain to the NSA as a joke."

Some people believe the U.S. Government has these supernatural powers. This is a hoax. Now you too have been illuinated.

Thu, 02/03/2011 - 05:51 | Link to Comment More Critical T...
More Critical Thinking Wanted's picture

 

While the Obama administration and Democrats in Congress believe increased government spending will improve the nation’s economy, Republicans on the Financial Services Committee know economic growth depends on providing the private sector, especially small businesses, with the certainty they need to create jobs.

Small businesses laughed out loud and proclaimed: "Ron Paul, you sure must be joking! We will be hiring the moment we see demand, dude. Our problem #1 is not lack of jobs (we have over-capacity) but lack of sales - and as long as you do not understand this you aint no part of the solution, you are part of the problem."

 

Fri, 02/04/2011 - 13:17 | Link to Comment honestann
honestann's picture

Do you like your glass half full or empty?  Either way, notice the whole glass.

Small business people with ongoing business will indeed respond to demand.

Small business people and potential startups [who are not self-destructive] considering a new business will not take the risk to start that new endeavor in the kind of "elitist predators gone wild" environment we have today... unless, that is, the move to another country first.

Wed, 02/02/2011 - 20:57 | Link to Comment Hedgetard55
Hedgetard55's picture

Zero,

 

     You got "Hamyed". Pwned by the master.

Wed, 02/02/2011 - 19:07 | Link to Comment LowProfile
LowProfile's picture

Lol, just read the name.  Wish I could un-junk.

Thu, 02/03/2011 - 04:06 | Link to Comment i.knoknot
i.knoknot's picture

you can... the junk button is a toggle.

Wed, 02/02/2011 - 18:13 | Link to Comment Alcoholic Nativ...
Alcoholic Native American's picture

word, you selling bullshit? I'll take 2.

Wed, 02/02/2011 - 18:16 | Link to Comment EscapeKey
EscapeKey's picture

Hey, Hamy, they're looking for a writer over on BusinessInsider. Given that their other lead writers are professional trolls more interested in generating hits than reporting the truth, perhaps you should apply?

Wed, 02/02/2011 - 18:19 | Link to Comment asdasmos
asdasmos's picture

+1

Wed, 02/02/2011 - 18:30 | Link to Comment tellsometruth
tellsometruth's picture

i like your analysis of msm rep=pro trolls

Wed, 02/02/2011 - 18:48 | Link to Comment Pladizow
Wed, 02/02/2011 - 19:03 | Link to Comment AZSovreign
AZSovreign's picture

A MUST listen, discussion of the complete end of the Fed.

 

https://app.freeconferencecallhd.com/playback.html?cn=94-43-28-63&e=1307...

Wed, 02/02/2011 - 19:56 | Link to Comment Sancho Panza
Sancho Panza's picture

This is the most remarkable thing I've heard in quite some time if true.  What is the source?

Thu, 02/03/2011 - 00:34 | Link to Comment GreenSideUp
GreenSideUp's picture

I'll second that...WTF?

Wed, 02/02/2011 - 19:13 | Link to Comment Salinger
Wed, 02/02/2011 - 18:16 | Link to Comment countryboy42
countryboy42's picture

Our consumer discretionary stores in the Twin Cities just hired 10 sellers, and we had our biggest turnover in 14 years.

 

I did not realize the demand for the phonograph walkman was that high.

Wed, 02/02/2011 - 18:20 | Link to Comment gloomboomdoom
gloomboomdoom's picture

QE 2 was not a failure. The market is free to quit anytime it wants!

Reading sites like the Market Ticker, Mish and Max Keiser make me want to commit suicide! Why do they want collapse? Most people just want the economy to recover (and it has been).

When I talk with my friends about food prices, this is the answer I get 100% of the time...
"GOOD! America is too fat! People need to eat less! I hope they keep printing money!"

 

Wed, 02/02/2011 - 18:32 | Link to Comment Bay of Pigs
Bay of Pigs's picture

So your friends are economic retards like you?

Wed, 02/02/2011 - 18:37 | Link to Comment gloomboomdoom
gloomboomdoom's picture

Here is a junk for you, how does that feel?

I just want to keep up with Wallstreet. SO I buy the DIP and use the money in my community.

2001 was the "END". Our Brothers tried to warn us!

http://www.youtube.com/watch?v=jqK_0BbZGJY

Wed, 02/02/2011 - 18:50 | Link to Comment Pladizow
Pladizow's picture

Not just for Hamy but for GloomBoomDoom also: http://www.youtube.com/watch?v=qxOwHutnXNA

Wed, 02/02/2011 - 21:09 | Link to Comment palmereldritch
palmereldritch's picture

Jack's one of the best for delivering the barb.

Here's a compilation.  Too bad they weren't available as individual clips.  My favourite @ 1:31  from The Big Lebowski....

Nicholson appears throughout lol

http://www.youtube.com/watch?v=PSEYXWmEse8

Wed, 02/02/2011 - 22:11 | Link to Comment gloomboomdoom
gloomboomdoom's picture

If they ever audited ZeroHedge there would be a lot of people going to jail! (We know too much!)

Wed, 02/02/2011 - 23:01 | Link to Comment palmereldritch
palmereldritch's picture

Knowledge wants to be free.  You are dancing around the suggestion that thought crimes are a fait accompli.

"All tyranny needs to gain a foothold is for people of good conscience to remain silent." ~Thomas Jefferson

Thu, 02/03/2011 - 00:33 | Link to Comment UncleFester
UncleFester's picture

If Jefferson was a god, Aaron Burr was his saint.

Wed, 02/02/2011 - 22:20 | Link to Comment kornholio
kornholio's picture

you are full of shit

Wed, 02/02/2011 - 18:36 | Link to Comment the bohemian
the bohemian's picture

When I talk with my friends about food prices, this is the answer I get 100% of the time...
"GOOD! America is too fat! People need to eat less! I hope they keep printing money!"

what an ignorant comment since the cheapest foods to buy (and bought by the poor)- are typically the most processed, high calorie and least nutritious-

you're pretty stupid aren't you?

 

Thu, 02/03/2011 - 00:36 | Link to Comment UncleFester
UncleFester's picture

We will find nutrition costs more than we think.  When was the last time we ate real food, drank real wine, fu*ked real women?

Wed, 02/02/2011 - 18:38 | Link to Comment sabra1
sabra1's picture

people are eating less, all they can afford are chips, YUM!

Wed, 02/02/2011 - 18:20 | Link to Comment Common_Cents22
Common_Cents22's picture

Sexworld is hiring too!

Wed, 02/02/2011 - 18:26 | Link to Comment Robot Traders Mom
Robot Traders Mom's picture

I wish you would quit Wanger. You are corrupting my brain dead son.

Wed, 02/02/2011 - 18:29 | Link to Comment MiddleMeThis
MiddleMeThis's picture

I haven't been on ZH very long, so I was just wondering, does Hamy work for Fox News?

Wed, 02/02/2011 - 21:30 | Link to Comment homersimpson
homersimpson's picture

No it's pretty evident he works for the obama administration. Wanger is all about promoting how great the economy is.

Wed, 02/02/2011 - 18:31 | Link to Comment DaveyJones
DaveyJones's picture

it is amazing how these gloomers pay everyone off to make it look like the economy sucks.

Wed, 02/02/2011 - 21:30 | Link to Comment homersimpson
homersimpson's picture

It's amazing how stupid people can be to believe the economy is A-OK.

Wed, 02/02/2011 - 18:36 | Link to Comment sabra1
sabra1's picture

i love AApl and LULULEMON turnovers, especially the biggest turnovers!

Wed, 02/02/2011 - 18:47 | Link to Comment the bohemian
the bohemian's picture

"Our consumer discretionary stores in the Twin Cities just hired 10 sellers"

 

wow-  we're fucking saved-

Wanger-  you're such a flametard-  every site I have ever seen you on-

why don't you go jerk yourself off to some Fortune and Forbes magazines

Wed, 02/02/2011 - 19:01 | Link to Comment huggy_in_london
huggy_in_london's picture

I guess you have learning difficulties .....

 

Wed, 02/02/2011 - 20:00 | Link to Comment FatFingered
FatFingered's picture

Hey Hamy!

Bllllllleeeeeerrrrrrrrhhhhhh.......

<beans for dinner, slobberry lippssss......ppprrrrr...>

Ron Paul rocks!

Wed, 02/02/2011 - 20:37 | Link to Comment Richard Head
Richard Head's picture

Are all you people deaf?  Can't you see it's Hamy, not Harry!

Wed, 02/02/2011 - 21:57 | Link to Comment cbxer55
cbxer55's picture

Six of one, half dozen of the other?

Thu, 02/03/2011 - 00:37 | Link to Comment UncleFester
UncleFester's picture

Hey DickHead...shut up.

Wed, 02/02/2011 - 22:30 | Link to Comment total nonsense
total nonsense's picture

Hey listen there Wanger,at least its all good for you but i am not so sure the 45mm people on food stamps and climbing are feeling so great.I have a great business also but i am one of the lucky few. If you really believe this country and this world is in such great shape then all the best to ya. But why dont you step outside your bubble for a moment and really crunch some numbers so you can see what is really going on. Yes the the stock market has been riding high but as i am sure you can see the $ has not,it is setting up soon for a disastrous fall and the next market correction that comes will be the most severe one yet something the likes that no one has ever seen. The fed will not be there to print the money anymore when the time comes and it will make 2008 look like a cake walk. But hey i am sure you will be out of all your positions by then and will have already shorted everything. Happy trading Wang

Wed, 02/02/2011 - 18:04 | Link to Comment Djirk
Djirk's picture

I guess Mr Paul didn't get his PHD in econ.

simple: QE2=commodity inflation=lower corporate profits=less purchasing power for consumers....all of these lead to job creation....oh wait 

Thu, 02/03/2011 - 05:35 | Link to Comment Batty Koda
Batty Koda's picture

Does Ron Paul want to raise the debt ceiling? I get the impression he doesn't, in which case he wants to default on the mational debt which would be a bad idea.

Wed, 02/02/2011 - 18:08 | Link to Comment aerojet
aerojet's picture

Ron Paul must know that the Fed cannot stop without a catastrophic plunge taking place. 

 

The part I truly resent is that the money changers made out like bandits while being the architects of the entire crisis.

Wed, 02/02/2011 - 18:12 | Link to Comment Rwbrown72
Rwbrown72's picture

You are forgetting about the "PLUNGE PROTECTION TEAM" lead by Goldman Sacks all of America!

Wed, 02/02/2011 - 18:41 | Link to Comment gloomboomdoom
gloomboomdoom's picture

Ron Paul tried to warns us! No one is listening...

http://www.youtube.com/watch?v=EnRCz2Dcd_A

Wed, 02/02/2011 - 19:01 | Link to Comment milbank
milbank's picture

Wasn't that the point?

Maybe rewording your sentence will help you to understand. . .

 The money changers, the architects of the entire crisis, made out like bandits.

 

Thu, 02/03/2011 - 00:43 | Link to Comment UncleFester
UncleFester's picture

You are assuming they exchanged their paper wealth for hard assets already.  That is the funny thing about escalators, you are never quite sure when to get off.   In case you were wondering....I get off every Mon, Wed, Fri and twice on Sun. 

UF

 

Wed, 02/02/2011 - 18:06 | Link to Comment Misean
Misean's picture

What high unemployment? Have you seen the number of people so satisfied with Bernutty's wealth effect that they stopped looking for work and are now enjoying their time in leisure?

Wed, 02/02/2011 - 18:09 | Link to Comment vote_libertaria...
vote_libertarian_party's picture

Enough talk Ron.  Put out a bill to make the Fed stop.

Wed, 02/02/2011 - 18:44 | Link to Comment tellsometruth
tellsometruth's picture

I almost agree...or rather understand your clamor for change...especially since his demeanor is naturally subdued most americans cant process the info his says unless "end the fed."  I wonder what could be told to US (in a fed edit) public and they just miss it or burry their head in ... well you know the rest 

Wed, 02/02/2011 - 18:12 | Link to Comment Josh Randall
Josh Randall's picture

He knows all that money and credit is being used elsewhere and now he will get the Bernak to say it for the cameras

Wed, 02/02/2011 - 19:13 | Link to Comment Freewheelin Franklin
Wed, 02/02/2011 - 20:17 | Link to Comment gloomboomdoom
gloomboomdoom's picture

I cannot believe Alan Grayson is now unemployed!

The market hardly moved a needle after the partial audit was recently released.

...I wonder now what the market would think if Grayson's question was finally answered

Ron Paul should be our president (people just make rap jokes when they talk about Obama). Steve Jobbs gets more respect!

Wed, 02/02/2011 - 18:11 | Link to Comment Humpty Pundit
Humpty Pundit's picture

The BenBo in the hot seat Bitchez!

Wed, 02/02/2011 - 18:14 | Link to Comment John McCloy
John McCloy's picture

Why the answer is simple..

We simply have underestimated how much money printing is necessary. Patience my peasants patience..Bernankian economics is a "complicated" mechanism. And please pay no attention to the hundreds of millions paid monthly to the PD's since it is essential that those who created this havoc are rewarded in order to ramp up their hiring so they can best allocate the digitized debt to the proper commodity. 

P.S.- May I remind you Congressman Paul that you have no subpoena power and I as Emperor of the world do not have to explain my genius to the likes of your kind.

Wed, 02/02/2011 - 18:13 | Link to Comment Captain Willard
Captain Willard's picture

Can someone explain to me why we need more primary dealers? MF Global!!?? They've got to be kidding. Corzine must have film negatives.....

Why not just sign up the Bank of China and save on underwriting fees?

Wed, 02/02/2011 - 19:07 | Link to Comment OpenEyes
OpenEyes's picture

Wait, so Jon Corzine gets to become a primary dealer???   WTF??  

Wed, 02/02/2011 - 18:14 | Link to Comment cat2
cat2's picture

Federal Reserve Balance Sheet and Debt Limit have nothing to do with each other.  The Federal Reserve can buy up worthless HELOCs until the cows come home.  There is simply no limit to what the Federal Reserve can do with their balance sheet.

Wed, 02/02/2011 - 18:22 | Link to Comment Tyler Durden
Tyler Durden's picture

Since the Fed is monetizing ALL new gross issuance (i.e. Treasury debt), they have everything to do with each other. Might as well force the Fed to buy up SPYs (openly) so this whole house of cards crumbles asap.

Wed, 02/02/2011 - 18:40 | Link to Comment gloomboomdoom
gloomboomdoom's picture

Tyler... You have really nice abs, a very large brain and the best website on the internetz.

Wed, 02/02/2011 - 21:59 | Link to Comment El Hosel
El Hosel's picture

   "Might as well force the Fed to buy up SPYs (openly) so this whole house of cards crumbles asap."

   WTF!?... They are'nt already openly buying the SPY?

Wed, 02/02/2011 - 22:33 | Link to Comment mouser98
mouser98's picture

first time i have seen you venture into the waters of the peanut gallery... but as i don't look at the comments of every thread, i am sure its not your first time...

my question is:  hyperinflation or no?

i say no, i have said before, the bankers don't benefit by it, they won't allow it.

what is your take?

Wed, 02/02/2011 - 18:30 | Link to Comment tellsometruth
tellsometruth's picture

and you support that?

Wed, 02/02/2011 - 18:32 | Link to Comment DaveyJones
DaveyJones's picture

he can support it but it won't support much else for much longer

Wed, 02/02/2011 - 18:41 | Link to Comment Rainman
Rainman's picture

Yes, there is an emergency powers app for everything, even money laundering.

Wed, 02/02/2011 - 19:16 | Link to Comment Zero Govt
Zero Govt's picture

don't think of it like that, plain daylight robbery will do

Wed, 02/02/2011 - 18:15 | Link to Comment morph
morph's picture

Inflation? A chocolate bar is still the same price!

http://www.bbc.co.uk/newsbeat/12346546

Inflation metrics are flawed, no one thought to account for the fact that you are actually getting less product.

Wed, 02/02/2011 - 18:19 | Link to Comment FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Enough of the talk Ron Paul, we all know the FED are the biggest bunch of criminals the world has ever seen, serving their masters by destroying the wealth of the populous for the benefit of the few... we don't need to hear the obvious yet again.

Enough talk, put the FED out of business and send these criminals to the chair.

Wed, 02/02/2011 - 18:40 | Link to Comment tellsometruth
tellsometruth's picture

this will take more than just Ron Paul,

Do YOUR PART and make a call...

just enter your zip in link below:

 

http://www.congressmerge.com/onlinedb/

Wed, 02/02/2011 - 19:27 | Link to Comment EvlTheCat
EvlTheCat's picture

Have you done this lately tellsometruth?  I am not trying to be combative, but the last four times I wrote my congressman I received the same generic letter explaining, "...how important my concerns are and that when the time comes for a decision my ideas will be considered".  I called twice and received the same talking points from a volunteer over the phone. 

Translation = add address to political contributions mailing list, and round file citizen concerns.  Maybe Congressmen/women in your district are more receptive, but mine are closed for business to the "stupid" taxpayer.

Thu, 02/03/2011 - 09:36 | Link to Comment tarsubil
tarsubil's picture

I used to get somewhat legitimate responses from my Representative. Now, not so much. I swear, Ben, Barack, all of them have a worried look in their eye. They couldn't give a rats behind about us. They are all worrying about covering their butt when the SHTF.

Thu, 02/03/2011 - 12:51 | Link to Comment tellsometruth
tellsometruth's picture

Yes, I have been badgering Speaker John, along with my reps especially to support Audit the fed proposed and the cftc position limits sharade, judge Painter's letter... I have not been bery satisfied either BUT I will continue...A week after the cftc position limits, I was told there would be a statement for Seaker John, but alas I have not seen one...

 

Keep up the pressure ZH! 

Wed, 02/02/2011 - 18:19 | Link to Comment A Man without Q...
A Man without Qualities's picture

The simple answer is, they get the free money as long as unemployment is high, so why would they want to hire?

Wed, 02/02/2011 - 18:22 | Link to Comment CEOoftheSOFA
CEOoftheSOFA's picture

Corzine should be arrested for what he did to New Jersey's budget. 

Wed, 02/02/2011 - 21:35 | Link to Comment palmereldritch
palmereldritch's picture

Corzine made an estimated $500M on the initial IPO of Goldman Sachs when he was CEO there.

Hell, he could have been the New Jersey State Treasury himself.

Wed, 02/02/2011 - 18:22 | Link to Comment Careless Whisper
Careless Whisper's picture

It is important to understand the Federal Reserve’s role in creating today’s unemployment crisis,

he's got to be the bravest man in washington

Wed, 02/02/2011 - 18:23 | Link to Comment Common_Cents22
Common_Cents22's picture

Maybe Ben is smart in the long run by torching all other countries first.  Comparative advantage biotches!

Wed, 02/02/2011 - 18:24 | Link to Comment Goldenballs
Goldenballs's picture

Unemployment is so high because the Super Rich don,t give a shit and as as they control everything they see QE money as fair game profits.

Wed, 02/02/2011 - 18:49 | Link to Comment Bob
Bob's picture

Everybody has to do their part--they're trying to help!

Wed, 02/02/2011 - 18:24 | Link to Comment 6 String
6 String's picture

The problem for a guy like Ron Paul, or his son Rand for that matter, is they know by now: if they imlement their realistic plans, the U.S. will have to default on its obligations.

Meaning, they know if that were to happen, everyone could then blame it on the crazy liberterians for wrecking our great country. So, if I were them, I'd state my position, as they are doing, and let the whole thing fall on its own weight which it will do in due time....

Otherwise, the country will use these freedom fighters as the root cause of everything suddenly turning to shit. Because the ZH's have known for some time, once the rug is pulled on stimulus spending, defcit spending, and liquidity ramps, the whole thing will crash. At this point, I doubt Paul wants to be blamed for that....

Wed, 02/02/2011 - 18:48 | Link to Comment Rainman
Rainman's picture

+100

Thu, 02/03/2011 - 00:50 | Link to Comment UncleFester
UncleFester's picture

-100

Sorry, but you know not what you speak.  A global reset is underway for sure, but...what is your value, what is mine?  If you sell boner pills and insurance, you're in trouble.  If you are wildcatting for oil, you're  making bank.  Same as it ever was...

UF

 

Wed, 02/02/2011 - 18:54 | Link to Comment EscapeKey
EscapeKey's picture

You're right about the populace as a whole being too fucking stupid/wilfully ignorant to comprehend the situation, but I'm not sure the Paul's will change their course for that reason.

I just don't think it's realistic any plans that actually deals with the issues will ever go through either the congress or the senate.

Wed, 02/02/2011 - 18:56 | Link to Comment Pants McPants
Pants McPants's picture

I've heard him answer questions along the same vein before.  He makes it clear that blame does not reside with the person administering the treatment (libertarians to use your word)...but stresses the importance of identifying the cause.

In other words, do you blame the doctor for the pain you feel during surgery? 

Of course whether or not the masses understand this is the big question.

Wed, 02/02/2011 - 19:00 | Link to Comment sysin3
sysin3's picture

well, you're a devious bastard.

not wrong, just devious ;-)

Wed, 02/02/2011 - 19:23 | Link to Comment Freewheelin Franklin
Freewheelin Franklin's picture

They already blame libertarians.

 

The Typical Libertarian is hated by conservatives because he wants the freedom to snort coke off a teenaged hookers ass while smoking pot and watching a movie full of boobies and cuss words in preparation for sodomizing his illegal immigrant housekeeper, Carlos. The Typical Libertarian also wants criminals, terrorists and Mexicans to roam freely about causing all manner of social chaos, and has no interest in forcing people to love Jesus Christ. The Typical Libertarian is a traitor to the GOP and America because he failed to support the war in Iraq, the PATRIOT Act, the Stimulus, and both Bush and McCain, despite the fact that both men once said something at a cocktail party about maybe possibly lowering taxes on some people some day.

The Typical Libertarian is hated by liberals because he is a crypto-archconservative who wants poor people to go without education, medical care, police protection, food, shelter, and oxygen. The Typical Libertarian spends his weekends running down endangered species in his monstrous, gas-guzzling SUV before stopping off to smoke a pack of cigarettes in a daycare. The Typical Libertarian wants the world to be run by unaccountable multinational conglomerates instead of unaccountable governments. The Typical Libertarian is a racist, sexist, profit-driven nihilist who failed to mark the ascendance of the Chosen One, and has never protested for Union rights nor worn a T-shirt with the word Darfur on it.

Despite clinging to a hopelessly unworkable, idealistic and marginal political philosophy, the Typical Libertarian has recently been discovered as the cause for the downfall of Western Civilization.

http://www.newsweek.com/2008/10/18/the-libertarians-lament.html

 

Wed, 02/02/2011 - 19:40 | Link to Comment topcallingtroll
topcallingtroll's picture

Did you know the age of consent is 13 in france? Thats why ol whatshisname fled there. Here's to teenage ass (18 and over) and cocaine. Teenage ass is always the tightest. But watch out for that cocaine fellas. Too much cocaine and you wont be able to take advantage of the teenage ass. Libertarianism sounds good.

Wed, 02/02/2011 - 20:19 | Link to Comment sysin3
sysin3's picture

snort, too true.

Wed, 02/02/2011 - 21:32 | Link to Comment Freewheelin Franklin
Freewheelin Franklin's picture

Who junked this? It's sarcasm.

Thu, 02/03/2011 - 04:11 | Link to Comment i.knoknot
i.knoknot's picture

that was my thought too. you clearly posted a segment from elsewhere to make a point, and they're hammering on you?

some folks just don't get it...

(yeah, i know... junk me too)

Wed, 02/02/2011 - 19:51 | Link to Comment TorchFire
TorchFire's picture

Bravo!  Let's hope they are strategic enough to see the risks as you have outlined them. There will need to be confidence in key intelligent people to help us rebuild and the Pauls are among only a handful of contenders at this point for such a role. BTW, the reference in the article to the republicans on the finance committee being the white knights is a damn joke. They are about as fiscally responsible as Mike Tyson.

Wed, 02/02/2011 - 20:10 | Link to Comment Goldenballs
Goldenballs's picture

Wether the US defaults now or later is imaterial,it is how the default occurs wether from within or without.If it occurs from within the US stands a chance of carrying on,if it happens from without,ie refusing devalued dollars for trade and demanding Gold,the US is finished,that scenario gets closer every hour of every day of every week.The longer this goes on the only option available is to print to infinity by a regime which is clearly out of control and despotic (ie never wrong until its wrong) and totally in denial of what is staring everyone in the face,it is morally,spiritually and financially bankrupt.

Wed, 02/02/2011 - 22:29 | Link to Comment mouser98
mouser98's picture

who IS John Galt?

Wed, 02/02/2011 - 18:24 | Link to Comment Rogerwilco
Rogerwilco's picture

Watching Bernanke testify to Congress is like seeing Keyser Söze punk that clueless customs agent near the end of the movie The Usual Suspects. Whereas Greenspan would literally mesmerize the SOBs with trance-inducing blather, Bernanke just baffles them with bullshit.

Wed, 02/02/2011 - 18:26 | Link to Comment Waterfallsparkles
Waterfallsparkles's picture

Real Estate is the key.  Volker and Greenspan knew that was the juice that was needed to create jobs. In the 1980's FHA offered 30 year loans to Investors with 15% down.  They also gave 15 year depreciation.  What that did was to take all of the existing housing inventory off the market as investors scrambled to buy as much as they could afford.

Bernanke has ignored Real Estate.  I would like to see a plan to give anyone with a Mortgage an automatic ability to refinance for say 2%, as long as they have made the payments on time for the last 3 years. That would free up a lot of cash for the average American, this would include investment properties.  I would also like to see more modifications so people can keep their homes and not let the Banks dump them on the market for below market value pulling everyones value down.

Bernanke only knows how to enrich the Banks and the wealthy.  He needs to come down to earth and learn how to enrich the little people.  That is when the economy will recover and the Money will trickle up.  Todate no money has trickled down.

Wed, 02/02/2011 - 18:29 | Link to Comment 6 String
6 String's picture

WTF? Real estate is still overpriced nationally. What are you smoking?

Wed, 02/02/2011 - 18:55 | Link to Comment tickhound
tickhound's picture

"To date, no money has trickled down"

You don't get it... its not meant to. Trillions flying around... enough for principal reductions many times over, ask yourself why in the world would "the bank" want to truly help the homeowner when, in effect, you either pay the nut, or the banks can possess the home... receiving something real without "true" consideration. Why do that when "marking to fantasy" works so much better... and throw in some bailout money for consolidation to boot. No, onward say the banks. 2 billion asians and indians without credit cards is a much better prospect than helping the tapped out american homeowner.

Wed, 02/02/2011 - 19:05 | Link to Comment Waterfallsparkles
Waterfallsparkles's picture

Why is Bernanke and the Banks so intent on destroying Real Esatate Values.  It is beyond me.  Although, if you own Rental Real Estate it is good.  Property taxes are down and rents are up.

If Real Estate values went up many of the underwater homeowners could sell and not suffer a forclosure.  If Real Estate values went up then even the Banks that are holding all of those propertys could sell them for at least what was owed on them.

What is the probem with Bernanke's thinking?  Only inflate the Stock Market?  How does that affect the average person?  Yet, if housing was inflated it would help everyone.  The Banks, the individuals in America.

Wed, 02/02/2011 - 19:40 | Link to Comment Impotent_Smurf
Impotent_Smurf's picture

Yes, inflate housing so everyone who has a job that doesnt pay enough money can default all over again.

Wed, 02/02/2011 - 19:44 | Link to Comment tickhound
tickhound's picture

Ok, see, there isn't meant to be any "help"

Catherine Austin Fitts, former secretaey of housing for bush and wall street somebody may help you see all this in an entirely new light. The video is worth all 56 minutes...suggest you watch. :)

http://theendtimeshoax.blogspot.com/2011/02/global-tapeworm-economy-cath...

Wed, 02/02/2011 - 19:58 | Link to Comment Waterfallsparkles
Waterfallsparkles's picture

WOW.  Great Video.  Thanks.

Thu, 02/03/2011 - 00:35 | Link to Comment Mark Noonan
Mark Noonan's picture

And, man, are they licking their chops over those 2 billino people - think about it; just get $5 per month from each of them!  And if you can steadily inflate their economies and get them a "wealth effect" which puts them on a borrowing spree, so much the better!

This is what comes from paying out quarterly bonuses...gotta make each quarter better than the last, right?

Wed, 02/02/2011 - 19:04 | Link to Comment duncecap rack
duncecap rack's picture

Ever since I heard of QE I thought it had everything to do with real estate. If they can cause massive inflation then all the crap mortgages out there will good again. A trillion dollars of crap MBS are now worth something again. Touchdown. Bernanke retires to write his memoirs after saving the country. I don't agree with this but I think it might be just as much a part of the plan as stiffing the asians on the treasury paper.

Thu, 02/03/2011 - 02:44 | Link to Comment StychoKiller
StychoKiller's picture

Dollars (FRNs even more so) are more stupid than cattle, you point them in a particular direction and they scatter with the wind!  How then is the Bernank gonna get them to re-inflate housing prices?  Herding cats would be a more pleasurable pastime!

Wed, 02/02/2011 - 18:28 | Link to Comment topcallingtroll
topcallingtroll's picture

Maybe it is because we are teetering on the collapse of everything? Too bad benny cant tell him the real answer and that we might need to toss in a few more trillion before this is all over and.we all have jobs again and can laugh about those troubling times over our once a month splurge on a ten dollar happy meal in 2018.

Wed, 02/02/2011 - 18:29 | Link to Comment b_thunder
b_thunder's picture

Unemployment is 28-year high, but Wall St. bonuses are at the ALL TIME HIGH.  This is exactly what the Fed was designed to do:  wealth transfer from the bottom 90% to the top 1%, and then trumpet the "trickle down" effect of it.

 

Wed, 02/02/2011 - 18:54 | Link to Comment Bob
Bob's picture

Is that a golden shower I'm getting?

Naaah . . . tungsten.

Wed, 02/02/2011 - 18:29 | Link to Comment apberusdisvet
apberusdisvet's picture

I sure hope Dr. Paul has a lot of bodyguards; they killed Kennedy for a lot less.

Wed, 02/02/2011 - 18:29 | Link to Comment bluehorsesandal
bluehorsesandal's picture

HammyWanger open your eyes and "see" the true state of US job market.

3 anecdotal examples of job creation does not prove anything. It does prove that you are clueless of what is really going on.

Go ahead, hire 20, 30 or even 50 more sellers for your enterprise and don't forget to load your stock because demand will be gigantic. And by the way, why don't you borrow some cheap money and buy S&P, Dow and Russel?

 

Wed, 02/02/2011 - 18:29 | Link to Comment SteveNYC
SteveNYC's picture

"....now that the PD ranks have just been expanded from 18 to 20 to include SocGen and derivative (!) trader MF Global, and its CEO Jon Corzine"

 

Unfuckinbelievable!

Well, actually, given the current state of affairs.....quite believable.

Wed, 02/02/2011 - 18:31 | Link to Comment alfred b.
alfred b.'s picture

 

   'why after trillions....unemployment is still high'

 

  ...and the bernank will answer:   because trillions are not enough, we need to be doing Quadrillions !!!

....and after us banksters take our large and obscene share, perhaps some will trickle down to the regular folks.

Wed, 02/02/2011 - 18:35 | Link to Comment PeterSchump
PeterSchump's picture

It is not nice to ask a question to which you already know the answer, but in this case, it is necessary.  I hope he is not expecting the truth.

Wed, 02/02/2011 - 18:40 | Link to Comment tellsometruth
tellsometruth's picture

END THE FED

Wed, 02/02/2011 - 19:17 | Link to Comment alfred b.
alfred b.'s picture

 

    True enough.....but there's really no need to 'end the fed',  eventually all parasytes over-reach and self-destruct.....hopefully asap !!       ....the fed is well on its way.

Wed, 02/02/2011 - 18:42 | Link to Comment Canuckistan Al
Canuckistan Al's picture

Let the circus......ooops, I meant hearings begin!

Perhaps the Bernanke should buy a cot and install it in Ron Paul's office of the Hill, I suspect they'll be seeing a lot of each other in the upcoming months.

Wed, 02/02/2011 - 18:46 | Link to Comment gwar5
gwar5's picture

Way to go Dr. Ron --- Orville Redenbacher looks forward to your hearings.

Sen. Rand Paul also gave his inaugural speech in the senate floor.

Even liberals said it was an "Amazing debut."

Confirmed: there are two adults in congress. 

 

 

 

Wed, 02/02/2011 - 19:12 | Link to Comment gloomboomdoom
gloomboomdoom's picture

BRING BACK DA BOOMB! (Volume check)

http://www.youtube.com/watch?v=HtRANf42vTA

Same day... same place (I was at Sounds of the Underground)... get pissed! 2003-2004 No better time for music other than the Vietnam era (60s-early 70s)

http://www.youtube.com/watch?v=zynRICqHdW0 (turn it up!)

The Nations will crumble! Feed lies for War... to bring a Nation to its knees... RISKY WORLDLY STRUCTURE! (they were right!)

http://www.youtube.com/watch?v=uZpiTA5LX0A

Wed, 02/02/2011 - 18:56 | Link to Comment Bob
Bob's picture

You don't think Bernie Sanders supports him on this issue??

Wed, 02/02/2011 - 20:01 | Link to Comment Freewheelin Franklin
Freewheelin Franklin's picture

Backstabber Bernie? Please. Actions speak louder than words. Look at what Bernie did to the Audit the Fed Amendment in the "Financial Reform Bill".

Wed, 02/02/2011 - 20:37 | Link to Comment Bob
Bob's picture

I asked for that one . . .

Wed, 02/02/2011 - 18:48 | Link to Comment Chumbadumba
Chumbadumba's picture

I am Chumbadumba!

Wed, 02/02/2011 - 18:58 | Link to Comment Bob
Bob's picture

And junked.

Wed, 02/02/2011 - 19:09 | Link to Comment gloomboomdoom
gloomboomdoom's picture

I got him too.

Wed, 02/02/2011 - 21:47 | Link to Comment palmereldritch
palmereldritch's picture

Chumbadumba has been a member for 33 weeks and 2 days and that was his first comment...

I fear this is just the beginning!

http://www.youtube.com/watch?v=-Qg0w8qbBQo

Wed, 02/02/2011 - 19:34 | Link to Comment topcallingtroll
topcallingtroll's picture

Hey satire is funny guys!

Wed, 02/02/2011 - 18:55 | Link to Comment blobbus
blobbus's picture

Ron Paul and Ralph Nader agree on the Fed

 

http://www.youtube.com/watch?v=zYXVD7uBU2s

 

 

Wed, 02/02/2011 - 19:04 | Link to Comment Bob
Bob's picture

Informed progressives are straight on point about this. 

Unfortunately, progressives do not tend to be math-smart.  What I'd give for a Paul-Nader presidential ticket!

Or Nader-Paul.

Wed, 02/02/2011 - 18:58 | Link to Comment djsmps
djsmps's picture

QE3...that's the ticket. That'll git 'er done, Ron.

Wed, 02/02/2011 - 19:23 | Link to Comment Zero Govt
Zero Govt's picture

they're even cheating in plain sight on the friggin numbers, remember QE-Lite shudda been QE2 so we should be on QE4 next... just shows you how 'successful' this programme is! What'll it take QE86 before they regard it as a 'Fail' ?  

Wed, 02/02/2011 - 19:19 | Link to Comment nate28jf
nate28jf's picture

honestly how can anyone expect employment to rise with all of this dang snow???

Wed, 02/02/2011 - 19:27 | Link to Comment zebra
zebra's picture

it's a trap set for Ron Paul 2012 to lose. Ron Paul up=> stock drop. Obama/Ben up=> stock up. Which one will J6P pick?

Ben is untouchable unless Ron Paul become our President in 2012 without being assassinated.

 

Wed, 02/02/2011 - 19:34 | Link to Comment Yancey Ward
Yancey Ward's picture

Shit.  Bernanke's reply might well be that they didn't give out quadrillions.

Wed, 02/02/2011 - 19:41 | Link to Comment Dr. Porkchop
Dr. Porkchop's picture

There is nothing Ron Paul or anyone can do to fix this. The rot goes right into the core. The entire system must be burned to the ground so that natural succession can occur.

Wed, 02/02/2011 - 20:23 | Link to Comment zebra
zebra's picture

we are not Egyptians. It's not gonna happen...

Thu, 02/03/2011 - 02:48 | Link to Comment StychoKiller
StychoKiller's picture

Two thoughts for you:

1.  Expotential functions.

2. Great Implosion!

Thu, 02/03/2011 - 04:14 | Link to Comment i.knoknot
i.knoknot's picture

yup. it'll look different, but it will happen.

impressive that it's held on so well for this long. better than the alternative accountability for now, eh?

Wed, 02/02/2011 - 19:41 | Link to Comment Reese Bobby
Reese Bobby's picture

The Ben Bernank starves people for Big Banks.

Forget the hearing and start the trial...

Wed, 02/02/2011 - 23:12 | Link to Comment alfred b.
alfred b.'s picture

 

  oh but we must have a hearing, and a trial and a hanging;  just not necessarily in that order  !!

totallly agree w/you on the bernank case...good post Reese.....by the way, any relation to Buttercup ?            just kidding!

Wed, 02/02/2011 - 19:45 | Link to Comment Miramanee
Miramanee's picture

RE: "...Of course, the answer to all of these problems is simple: no debt ceiling raise. If the Fed can't monetize any more debt and make the Primary Dealers ever richer...its power is gone..."

Not true. The FED does not need the debt ceiling raised in order to create liquidity/money. All it needs are computer terminals switched to the "on" position, and a few nimble keystrokes. The debt ceiling/POMO games are normative dances...but in operational terms, they have nothing to do with money creation.

You are focusing on the wrong issue. It's not the debt ceiling, or monetization of debt, that matters. It is the Fed-Treasury ability to create money whenever the macro conditions appear to warrant such actions.

Wed, 02/02/2011 - 19:58 | Link to Comment Reese Bobby
Reese Bobby's picture

You are right about the quote.  But if our bought-and-paid-for Congress couldn't deficit spend to the tune of $1.5 trillion a year we would see some progress.  That Department of Education sure is doing a great job!  Our 140 country military empire sure makes sense! etc. etc. etc.

Wed, 02/02/2011 - 20:28 | Link to Comment Miramanee
Miramanee's picture

@ Reese Bobby

Fiat currency is bad for democracy [sic]. With no limits upon spending, a government acts with utter disregard for the rule of law, democratic institutions, etc.

Wed, 02/02/2011 - 22:47 | Link to Comment Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

I think you are quoting last weeks figures?  During a recent NFL playoff game the commentators welcomed U. S. soldiers in "175" foreign countries.  By the way have any of you come to the realization that the Department of Homeland Secrurity was set up to be used on the American people?  We already have drones flying over Florida cities and Houston, illegal checkpoints at highways throughout the country and Big Sis TV screens coming to 9000 U. S. retailers.  Iraq and Afghanistan were training grounds for what is going to take place in urban America.  Don't believe it?  Just wait and see!

Wed, 02/02/2011 - 19:52 | Link to Comment Zero Govt
Zero Govt's picture

The Fed are doomed... it's their 3rd innings and hopefully their last with Ron Paul as parasite banker exterminator... gas or poison Mr Paul? ...the audience don't mind, in fact use both and bury the money monopoly cabal

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