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The Fed Should Drop Monetary Policy Altogether and Just Give Charles Evans His Own TV Show
Over the last year, the Fed has begun resorting to verbal rather than direct monetary intervention. And it is Chicago Fed President Charles “QE” Evans who clamors most for more easing.
Is QE3 Right Around The Corner?
(August 30 2011)
So much for no QE3, at least if Charles Evans gets his way.
Chicago Federal Reserve President Charles Evans was on CNBC just a few minutes ago, and comments from Evans made it sure seem like an additional round of quantitative easing is on its way.
http://www.benzinga.com/media/cnbc/11/08/1890663/is-qe3-right-around-the-corner#ixzz1oHCdaaE2
Bernanke Managed Expectations Like A Champ: QE3 Is Around The Corner
(November 2 2011)
Dissent, though, jumped from hawks to doves as Chicago Fed President Charles Evans wanted more accommodation; along with a reference to lower inflation, these two suggest Bernanke has managed to save his last bullet, and will probably bring out the quantitative easing in coming months.
Federal Reserve Could be Laying the Groundwork for QE3
(December 6 2011)
Chicago Fed President Charles Evans gave a speech at Ball State on December 5, and within it he detailed some of the actions that the Fed could take to support its dual mandate of promoting maximum employment and fostering price stability. Although Evans did not specifically mention asset purchases, he said that without action the Fed could fail both parts of its dual mandate.
Evans is the President for the Chicago Fed. Chicago is the second largest financial center in the US (after NY). So this guy is simply pushing for his “constituents” in calling for more monetary accommodations from the Fed. In fact, Evans’ verbal interventions alone have produced even more market gains than QE 2 did.
Here’s the effect of QE 2 ($600 billion) from start to finish.
And here’s the impact of Evans’ pro-QE 3 comments starting with his August 30 2011 CNBC interview until today.
There you have it folks. The Fed can get more market gains from Charles Evans than $600 billion in QE. Hey Bernanke, here’s an idea: just stop bothering with monetary policy at all give Charles Evans his own TV show. Heck, we'd get the same effect with less Dollar devaluation.
However, the facts remain that the Fed cannot engage in more QE while in today’s political climate Which means… the Fed will disappoint, and we will get a market correction. This Hilsenrath story from earlier this week is just an attempt to prop things up verbally without the Fed openly contradicting Bernanke’s testimony last week. All the macro and technical signs point towards something bad coming this way. The red flags are literally everywhere. And judging by the significance of them, we could very well be heading into a full-scale Crisis.
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How about recogniziing the criminal intent of a fiat fractional reserve Monetary System in the first place and take the whips and punch bowls away from the psychopaths as the first step to redeaming "OUR REPUBLIC"? - Inflection Point
WAR PIGS: Carlyle Group's Lopsided IPO That No One Cares About
Warren Buffett: The Paradigm Puppet - Who Is Worse; The Criminals Or The Men Who Enable The Criminals?
THE ROOT OF OUR SOCIAL, ECONOMIC, MILITARISTIC WOW'S IS AN EVIL, MONETARY SYSTEM. EVERYTHING ELSE IS A SYMPTOM OR AN ACTION THAT SUPPORTS IT. AT THE HEART OF THIS SYSTEM ARE THE CENTRAL BANKS; THE FED, THOSE WHO CONTROL IT AND THEIR DISHONEST, DEBT BASED MONETARY POLICIES. AS SUCH; LAWS, THE CAPTURE OF GOVERNMENT AND THE SUSPENSION OF ACCOUNTING RULES IS FOR THEIR BENEFIT. AN ACCOUNT OF THE PEOPLE HAS NO PLACE IN IT. INDEED, IF THE PEOPLE WERE ITS PRIMARY CONCERN, THE WORLD WOULD BE MORE FREE, LESS VIOLENT AND MORE PROSPEROUS.
THE PRIVATELY HELD FED IS THE TOP REGULATOR OF ITS TBTF OWNERS AND MEMBER BANKS. IT'S CREATION OF MONEY OUT OF THIN AIR; LOANED, AT INTEREST, TO THE SOVEREIGN AND ITS FRACTIONAL RESERVE SYSTEM IS THE MOST INSIDIOUS OF CRIMINAL PONZIS FOR WHICH ALL ITS FAUX REGULATIONS AND FINANCIAL MISALLOCATIONS FOLLOW.
TO FREE OURSELVES, RESTORE FREE MARKET CAPITALISM AND REESTABLISH OUR CONSTITUTIONAL REPUBLIC, WE MUST FIRST ELIMINATE THE MOST PERNICIOUS CORRUPTING FORCE OF ALL.
END THE FED!
See:
Money Power And The Central Bank: Life Is But A MEME
END THE FED: THE FIRST STEP IN RESTORING OUR CONSTITUTIONAL REPUBLIC
I'm confused...the Obama Administration says our economy is growing and that jobs are being created, TBTF banks have enjoyed record profits the last few years...why then do we need QE3? Is it because the economy is not doing as well as they tell us? Is it because the big banks are in terrible financial condition, despite their record profits? Is it because our deficits and debt have grown beyond what was imaginable 3+ years ago? Is it because of the threat of off balance sheet exposure in both the private sector (derivatives market) and public sector (Fannie and Freddie, FHA, Student loans...)? Could it be all of the above?
What I find very interesting is how Obama keeps telling us he had a shitty deal to start with; it was worse than he imagined and that is why he can't keep his campaign promises and needs more time. He was a member of the Senate prior to his campaign and thus knew what was going on 'inside' better than any of us. If anyone was in a position to truly understand what was going on in our government and our country it was a seated senator. Because of this he can't truthfully say that things were worse that he knew or expected. What he can say is that 'his mouth wrote checks that is ass can't cash', or, he made promises he couldn't keep. Those promises are coming back to haunt him now.
His economic policies have obviously failed and his gutless response to the corruption on Wall Street has helped to divide our country. I believe that in spite of all the talk of his administration about how they are a shoe in to win the next election, they are worried. His actions as of late speak to a desperate situation. All of a sudden Obama is in a hurry...he hurried the Robosigning settlement with the banks to claim credit (when in fact most people know it was a joke and another back door bailout for the big banks), he is trying to buy off homeowners in trouble with a NEW program where the government guarantees their home loan, despite income or ability to repay (his previous ones were abject failures), he wants to let people off the hook for their student loans. There is a common theme here, use taxpayer dollars to pay for other peoples problems, Sounds to me like a desparate politcian trying to get re-elected.
Lastly, there is the Israel/Iran problem. Bibi doesn't trust Obama...even if he wanted to he can't. If he does and Obama let's him down, it's game over for Israel. Knowing this, Israel must deal with the Iran problem on their own. If Israel's conventional arsenal cannot provide the weaponry to successfully complete their task, then they will use tactical nukes...a huge elevation of the situation on the world stage. Obama knows this so Obama is in a dilema. If he gives the Israeli's the bunker busters before the election, they will probably use them before the election and he is toast. If he waits till after the election to give them bunker busters, the Israeli's most likely will use nukes before the election and he's toast. Bibi knows this, he's no dummy, and he wants a friend in the White House. Once again, Obama's inability to manage the situation has put him in a intolerable position with regards to his re-electability.
Because of Obama's foolish promises, failed economic policies and failed foreign policy he has no firm ground to stand on for re-election. His only hope is to buy votes, with your money...that's why there will be QE3.
It's because they're purposefully attempting to destroy us. Quack like a duck & all that...socialist doctrine - destroy the currency and you'll have 'em eating out of your hand and begging for more....face it; we're on the verge of being totally screwed.
I've said it before and I say it again - there is no reason for the Fed to go ahead with actual QE when the stock markets are where they are at the moment, it makes no sense. Why fire a bullet with so few left, when there is no need to?
It will only happen when it has to, which means when the Dow is back around 10,000.
DavidC
Mr Summers, your correlation between Evans talking and stocks rising is quite pitiful. From the get-go of this systemic windbag guffing about QE3 stocks actually tanked (yes?)
Even after 4 months of Evans shrill crony verbiage stocks spent the most time down in the dumps and by the end of 4 months had barely budged an inch
Even your correlation of QE2 actually beginning and stocks taking off presents no stronger evidence than timing, not causation or connection
Buck Fernankie and the horse he rode in on.
Stop that, all those expensive FED and Goverment computer systems that track disconternt can't do their job unless you spell correctly!
The Fed can crow about the rise in stock prices, but they alomst mirror the rise in cost of commodities, escpecially oil. And when you consider we have significant price inflation and alomst zero wage inflation, these policies hurt far more people than they help.
But to be honest, the Fed doesn't really give a shit about most Americans, who are nothing more than cattle with credit cards to them.
Or you can just get one my man's take on everything at my non-commercial blog. I don't sell anything nor even take donations. Gold, debt and Molycorp today. Curious? gmail me at my name (and promise to behave) and I'll send you the link. Or just creatively use Google to track down my blog.
QUANTATIVE EASING
Someone needs to ask Snake Oil Benny the exact meaning of those 2 words and how they were attached and why they were chosen to put on a policy of PRINTING MONEY
the patent dishonesty (socio-economic fraud) begins with these 2 slimey little words and doesn't get any better or more honest thereafter with a policy of monetary mayhem by debasing and trashing the nations means of exchange to prop-up a minority of insolvent tossers (ie. systemic anarchy)
Bubble Bens vocabulary of slippery hed-fuk labels hides one mundane fact: the only policy/weapon the Fed has is to PRINT (or not to print)...that's it from this academic/anemic one-hit-wonder.. so he has to dress up PRINTING MONEY in a myriad different drags and names because this muppet (one trick pony) is a 1 tooth village idiot