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Getting “Ugly”, DC Style
After the Fed announced last week that it would extend its zero interest rate policy for another two years I flipped out. I thought the Fed’s actions were flat out wrong for a dozen reasons. I lead with this one (Link):
This action is indefensible on the economic merits. This move is not motivated by sound monetary policy. It’s motivated by politics. This is a payback to Obama. Shame on the Fed for mixing politics with money.
It’s all well and good when a low rent blogger like me throws stones at Bernanke and the Fed and accuses them of playing fast and lose by mixing monetary policy with politics.
It’s quite another matter when a serious presidential candidate says pretty much the same words that I used. The difference is that Governor Perry called Bernanke’s action “Treasonous”. That is a fair bit stronger then me saying "Shame on Ben".
When the Perry/Treason story first broke I just laughed. I thought Perry would have to back off. Not a chance. He has not backed down a bit. When asked by reporters today he said:
“I stand by what I said”
To me, this just got ugly, DC style.
I am a cynical son of a bitch. (I’m the first to admit that) There is a part of this story that is not being told.
Perry’s candidacy has been telegraphed in the press for weeks. Every DC insider had this on their radar. Including Bernanke. Including his cohorts. Two weeks ago they have a meeting. It goes like this:
.
BB: (commandingly)
I’ve called this meeting to give you my thoughts on which way we should move policy at the upcoming meeting. I expect you to conform to this view:
Cohort #1 (obediently)
Whatever you say!
Cohort#2 (excitedly)
Show me where to sign!
BB: (sternly)
While it is true that the economy has slowed of late it is the collective Fed forecast that growth will pick later in the year. There may be some moderation in energy prices in coming months, but the cost of rent will continue to push core CPI higher than our target.
Cohort#3 (sheepishly)
Yes! Yes! All that you say is true! We must balance our obligations to our dual mandate. You said that on TV Mr. Chairman! We must maintain policy as it is. We should not be more nor less accommodative at this time.
BB: (condescendingly)
As a policy matter you are correct. But we must play politics as well as run the global monetary system. I have a source who has given me a tip on what will come in the future. This information has forced me to change strategy. We must do something to shore up the stock market.
Cohort #4 (female voice)
Oh Gosh! That sounds scary! Is there some new economic crisis pending that we don’t know about?
BB: (exasperated)
I said it was political! It’s Rick Perry. That SOB from Texas. He’s running for President. I hear he is going to use the Fed, and me in particular, as his stalking horse into the White House.
Cohort #4 (fearfully)
Oh Dear! That sounds dreadful. How do you have this valuable information.
BB: (slyly)
Ha! I have a few friends in town. One of the guys in the banking lobby gave me the heads up. Perry’s campaign goons are out raising money. They are selling Perry as an upscale Ron Paul. He hates the Fed and that will be a plank in his campaign.
Cohort #1 (astonished)
Gee Wiz! This is a hell of a turn of events. What can we do? What can we do at the next meeting?
BB: (forcefully)
We can’t do another LSAP. That never worked. The only thing available to us is to extend the zero rate policy to a period past the next election. We have to take this bold step before Perry gets a national stage. We have to get infront of this guy. Out maneuver him.
Cohorts #3 (stupidly)
Wow! This is fun! Almost like Watergate! We get to do dirty tricks!
BB: (definatively)
Perry started it. We finish it.
We take this step now. Then we sit on our hands unless there is a true emergency. We can say we were politically neutral. Even if that is not the case. We will get infront of any of Perry’s public diatribes. We will take the high road publicly and be laughing all the way to the bank behind the scenes.
Cohort # 1 (nervously)
There’s only one problem Boss. Plosser, Fisher and Kocherlakota will never go along with a two-year extension of ZIRP! That would mean there would be three dissenters! We don't want that, do we?
BB: (Angrily)
Screw it! I don’t care what they say! I have the vote. I have you all in my pocket. Let them dissent. I have to do what I have to do. I want to deflect Perry. This will be my only chance. This will help stocks. That will keep Obama in office. And then I can keep my job as the head of the Department.
Cohorts #s 1-4 (in unison)
Well Done! Brilliant! Fine Leadership! Way to go Ben!
.
.
All kidding aside, the Perry Development has tied Bernanke’s hands. Those hands won’t come untied again unless there is a significant “emergency”. What we have today, we will have for the next 18-months. There will be no more from the Fed.
So much for the Bernanke Put.
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Kinda like he took credit for all the "stimuluss" money from DC -- which he bad-mouthed all the way to the bank.
what a joke, Perry is Bush after a lobotomy. Bernanke probably doesn't know his name. the dumber they are they harder they fall.
Are you sure you don't have it backwards?
I agree that Perry is ignorant and narrow minded, but I think Bush was Perry after the lobotomy.
i feel like this thought experiment says "create an emergency" just as much as "my hands are tied". Im not convinced Perry is that important yet. Probably because I can't take anyone who believes in jesus like that seriously, and I project that incorrectly onto the american people.
Just like W buttfuck Bush, Jesus is the bait for suckers!!
Be sure to take a magic walk on a beach with the best corpse money can buy, Billy Graham, just like W Buttfuck Bush.
It works, fits the liars mold, and is free!
I'm probably biased because I am one of the small percent willing to call themselves an atheist, but it seems that Perry would be a bit too far religious for most.
I will need to buy tons of popcorn to watch the amusement. I thought Barry was the most fantastic liar...I mean about ending the war, reforming banks, etc...but he has met a better, and mush more handsome, showman, Perry!
"Bring it on!" to quote Rumsfield.
It is one thing to say and have it made widely viewed ----- TREASON and Capitol Offence, not maybe instead, the Fed Folks are on the Wrong path. Not to support Perry in that I am not sure I would, but that boy does has balls and says what many say, but do not get the TV time.
Our Nation is in crash mode and it is time to go bare knuckles. Let these political persons beat the hell out of each other and maybe some where the truth of character will come out. If indeed there is any character in the political game in the USA. Having said that, keep a short history of Texas in mind. White trash did not invade Texas. After Spain left Mexico, Mexico invited the white trash to come in to buffer them from the Indians. Mainly the Comanches who were the best light horse cavalry in the World, until Colt introduced the revolver.
There is deadly fighting DNA within Texas. Does Perry have balls that big enough to whop um? I rather doubt it, but I hope someone has the courage that America needs at this time.
Listen up real good ya'll. I'm from Texas and I know what's going on. this thing with Perry is all
T H E A T E R
and that is all it is. Perry is one of THEM. He even admits to attending Bilderberg in 2007. This whole outsider, rebel, in your face, libertarian PERSONA he is putting on right now is 100% pure grade A ACT from start to finish. And all the big boys know it. Perry is a 100% RINO. He tried 3 times to give away a huge swath of land running right through Texas and give it to his boys in Spain called Cintra. Look it up. Ever heard of the NAFTA super highway.? Well, Texans were on their way to hanging him 3 seperate times over that fiasco and he never did get it passed but they renamed it and reintroduced it. And, furthermore, the voting down here is so rigged. He politically assassinated Debra Medina down here who was for end the Fed. She was at the end the fed rally in Houston and Perry came out within 2 weeks of that and shot her down. Perry has been no good for Texas. Right after he got in here they got this bill together up there to give free medical and dental care to all the ILLEGAL ALIENS here. believe it!!! It's called Title V.. passed in September of 2001. If anyone is interested in the links I can give them to you. But mark my words they had Perry picked before Obama was in there to come back as the antithesis to keep this kabookie theater going a little longer. Anyone who doesn't vote for Ron Paul is a traitor. He is the only choice. I'm mad as hell and I know the voting is rigged but if there is a real landslide maybe we can get this country and the constitution back.
yes. Rick Perry is "one of them" . repeat after me, say it loud, shout it from the rooftops :
RICK PERRY IS ONE OF THEM ! .......... another politician who is not interested in the American Citizens; rather, he is interested in promoting & implementing a global agenda that reduces Americans to empty shells with empty pockets & never-ending debt.
It was widely published that Perry attended this year's Bilderberg meeting and was give the thumbs up as the republican candidate and replacement for ToTUS.
Perrry=Obama=Bush=Clinton
I believe there are two possibilities. 1. After the election he develops Obamanesia and forgets all of his promises. 2. TPTB believe it is time to throw the Fed under the bus, dump the US dollar and bring the global currency run by the BIS or IMF into play.
The fraud Perry is simply trying to steal Ron Paul's ground, claim it as his own to accomplish the globalist agenda with a global currency and government. Perry is and should be a nobody, but he is a lying cheating nobody that the Bilderbergers want as president. So, he has the full support of the banking money creators and the media. He is virtually the only one they talk about now.
That might very well be the endgame. Escalate the Federal Reserve powers to worldwide money control. That explains the attack on Libya, not controllable monetarily, North Korea, Iran. I hate to be on the side of those scumbags but it looks like our Decepti-cons are worse than the "Evil Nations".
They will get rid of the Fed because they will have world wide reserve currency control without any national control at all of any kind. Makes sense. They already have control of the US Military, hence the illegal attack on Libya. The "United Nations" ordered it. You know, that body of unelected "world" bureaucrats.
Yes, looks like the end game really is on. Scary really.
Miss Anthrope - from one Texan to another, you are 110% correct in your assessment of Perry. And don't forget that Gardacil vaccine fiasco either. As an Aggie, I'm ashamed he's a Former Student.
Thank you I Got Worms:
I mourn for my old Texas. The Globalists have ruined this place. I was born here as well as my Great Grandmother. At this point I believe we will end up giving it back to Mexico. There is hardly any point any more. The regulations they have placed on small business since 2000 is just brutal. Aggies are fine people. I spent a semester there and Rick Perry is an embarrasement to them. I am so ashamed he is from Texas, it is a disgrace.
Miss, there are more like him, hand-picked to take votes from legit
people who could possibly win election. They are coached in what to
say to draw people away from outside the circle candidates.
Even if they don't get nomination, they take away enough support
and legit person doesn't get nomination either. TPTB are getting better
at what they do. If outside candidate does get in, someone brings
allegations against them for past sex crimes which can't be proven one
way or the other and are later dropped.
Bruce, pal
your analysis is getting more and more Laughable ..
###
All kidding aside, the Perry Development has tied Bernanke’s hands. Those hands won’t come untied again unless there is a significant “emergency”. What we have today, we will have for the next 18-months. There will be no more from the Fed.
So much for the Bernanke Put.
###
first you totally erred on zero rate policy..
2d, because of some kind of next to nothing schmuck from Texas said something Mr Bernanke IS NOT GOIING TO INTRODUCE Q3..
Bruce , be analytical.. next year US fed gov deficit is probably goiing to be closer to 2 trln, then 1.5 trln.. who is in right mind going to buy US debt ?
look at eur/ $ rate.. despite all problems in euro zone euroe didnt even flinch.. above 1.4
you pretend to be FX expert, what does it tell you.. ?
good luck
alx
alx
Follows my blog spot address. About 100 articles so far this year. Take some time read them. Then report back as to where I made a long/short remark on the euro.
I haven't. The reason? The dollar and Euro have been range bound. So nothing to say.
http://brucekrasting.blogspot.com/
++
Good on you Bruce. I really like to see a poster directly responding to a pissant commenter and call him out and rebut succinctly without self-righteous indignation.
Keep up the excellent work.
I wonder, if Perry were to meet with Bernanke, would they first take Perry's gun from him because
Perry has said Bernanke was guilty of treason and Texas has capital punishment.
From what I hear about Perry on Alex Jones, a more apt name for Perry would be "slick rick"
A Texan version of the anti-Communist necrophilics who ran Germany up in smoke back in the 1930s. Three generations (Kondratieff Wave, ~80 years) is all it takes...human nature repeats when the last of the original eye-witnesses expire.
Slick's ok- as long as he's our greaser.
do you really believe bernank wont invoke qe3 bc of Perry?
bc an emergency is immanent.
Insider, fraudmeister Rick Perry, former campaign manager for Al Gore, is such a transparent political hack that slime can be visibly seen dripping from every word he mispronounces. He is sooooo obvious that only the practiced deception of the mainstream media could possibly hide his hyper-craven-disingenuousness from dolts.
I mean, really! He purposely waits to see who wings the straw poll, sees that two supposed "Tea Party candidates" took the vast majority of votes, and then shows up and pretends HE is the anti-fed. What a laugh! Forget that RonPaul has been fighting the federal reserve for 40 freaking years (?how old was Perry then?), forget that Perry would surely replace Bernanke with Krugman, forget that Perry ran interference to assure Texas government could not stop the TSA from playing nazi molestors in Texas, forget everything that matters.
Perry is such a complete slimeball. And I thought the other media favorites were bad. Sheesh!
Oh yeah and Perry has MUCH better hair. that is all the american sheeple need....... GOOD HAIR.
Bruce, one fails to see just what void it is that Perry has filled, and how Bernanke is responding to said action, when Ron Paul has been there for over 30 years saying, granted in far more diplomatic terms, what Perry blurted yesterday.
All Perry does is insure the re-election of Obama. The GOP is making a very big mistake by ignoring the consistent and very professional message of Ron Paul. In addition, Ron Paul is very popular with intelligent independent voters. These folks will NOT swing to Perry or those corn dog eating whores.
Governor Perry is a true political animal with the support of the entire State of Texas and ultimately the South as a whole. The ignorance of US History on this site is truly staggering. Not only was this something that needed saying--the way Governor Perry says it resonates since it was the US South after the Civil War that experienced a hyper-inflation and they're fanatical about sound money. Unlike the Germans interestingly enough which are now selling all their work with the DM down the river for a totally insnane experiment in "Continlentalism"--an insane experiment I might add that obliterated them in two World Wars. Again "nothing that needs saying" on that front anymore. Just consider Germany's Basic Law and you'll understand how this is pure theater. I really want to put a buy order on a US Bank and especially JP Morgan because never has banking been a better business to be in if done in the right way than right now for the USA. Morgan Stanley looks good but when thinking in terms of scale the irony that my eyes are set upon the taxpayer owned AIG as "best of the best" is not lost on me. Kinda suits me though. Anywho "show me the QUALITY earnings" US banker folks.
We want to recommend you!
As you say, Paul is running for president and he's been bashing the Fed for years. So what's the difference?
Simple. Perry made the front page of every newspaper in the world. He is on all three networks, all of the cables and even Bloomberg.
Why does this guy do something and it's a big deal and when Paul does the same, no one listens? Is that charisma? Good luck? Just a timely remark?
I wish I knew. If I did know I would bottle it and make a fortune.
But I don't know the answer to that.
But I do know that Perry is going to be on top of the Republican charts in the not to distant future. He is going to rise because he took on Ben. He is going to rise because he will take on Ben (and the Fed) again and again. Why? Because it works.
Great country. Go figure how we got here....
"Why does this guy do something and it's a big deal and when Paul does the same, no one listens? Is that charisma? Good luck? Just a timely remark?
I wish I knew. If I did know I would bottle it and make a fortune."
Ok, well now I would like you to send me a 20% cut of that fortune. Perry is one of them. He is the plant intended to pull the attention and votes away from anyone who actually would DO something about the madness here. The house here in Texas passed unanimously a bill to prevent TSA from groping people and Perry got his attorney general to block it...... Perry is an inside Big Boy, just like Obama and just like Bush. He is intended to distract people from the real constitutionalists....... well I guess there is only one up there. Anytime Perry has actually had to do something it was to line the pockets of big Pharma or big business or the MIC. He is a Bilderberger and Ben Shalome Bernank is a real good buddy of his.
PLEASE GET THIS PEOPLE ........... IT IS NOT THAT HARD
Indeed, the TSA fiasco is all over the libertarian blogosphere. Campaign for Liberty (Ron Paul's strongest support group) has been on this TSA sell-out for months. Now I want to hear Perry pledge to defund the TSA and repeal the "patriot act". Paul would really do this and we know it. Perry's not fooling anyone. Opposition to the TSA and the patriot act are the litmus test of a true libertarian-a respect for freedom and liberty and opposition to state power.
Bruce:
I am disappointed in you. Perry is one of THEM. He's all over the front pages because that's where the mainstream wants him. He admits to attending Bilderberg in 2007. He is just the next iteration in the ongoing lie of political theater. He will say anything there is to say to get elected and once he is in there he is the puppet of the bankers. Him and Ben are probably playing an online hand of poker and sharing a talk over a bourbon right now laughing at all the people who are believing their shit!!!! Wake up people. Can't you see this is all controlled opposition. I can't believe you are all so smart in finance but you don't get this?
Perry is a Ron Paul caricature.
No, Perry is nothing like Paul, but trying to Steal Ron's base. Perry has no base, but he has the Bilderbergers blessing and therefore the banking money and the MSM.
That he will rise because of Ben, and specifically people's hatred of BB, is absolutely correct, as we speculated earlier. The press' (and amusingly enough Nouriel Roubini's) campaign to bash Perry is backfiring massively against them.
It's called controlled opposition. Don't fall for it Tyler. Look at the record. They see the Paul message taking hold. Easier to take the message and run with it then kill Paul and make him a marter. The fact that Paul comes within 152 votes of winning a straw poll, and wins all online polls, scared them. Ignoring or calling him crazy isn't working. So they put out Perry, totally owned by them, to parrot Paul's words and they use the controlled media to attack and question his judgement in calling it treason. That way he looks real. Where was Perry for the last 4 years with the Treason charge? I thought he was taking Texas out of the Union. Now he wants to run the Union. He is as real as a Banzai7 photochop.
Don't forget Tyler, nothing gets printed or on the air they don't want printed or on the air. Paul can say it and you have to be there or find a blog to read it in. Perry says it and it's headlines? Hmmm.
Don't be a sucker. He is Obama in whiteface speaking loose cannon. He is bought and paid for. Mark my words, he will at some point come out against aid to Israel in some weasel way. I would bet all my silver on it.
As Ray Charles would say "You got the right one baby." Fed as the strawman is the new normal. Just search for "the fed is dead... long live the fed."
Dave Harrison
www.tradewithdave.com
Nobody said he will do anything. What is simply said is that the media campaign to discredit Perry will backfire. As to his principles as a politician, see last word beginning with "poli".
Think about it for a few seconds.
Perry makes for a perfect foil against Obama in 2012:
There's no gender (Bachmann, Palin) issues involved.
There's a straight-up moral (religious -- evangelical vs Liberal) card to be played.
And there's even the racial subterfuge to play footsie with under the table.
And that's even before any "political" cards are to be played.
It's a media masturbation-fest.
.
Exactly, the biggest difference between Perry and Paul is that Perry will say what needs to be said in order to get elected, but once in office will do exactly what he is told to do.
This was what made Obama the perfect candidate - the promise to be the polar opposite of GWB, but the money men knew they owned him. He's not let them down at all.
Paul is absolutely unacceptable, because the crazy loon might actually hold true to his principles.
Ron Paul seems like a top chap and i love this speech....what if. i'm listening to it right now
http://www.youtube.com/watch?v=DMUtv1A9IVk
but when i read 'neutral' media not in the usa they all mention a point no one does on this site.... he's 75 years old.
Thats a big deal - especially with nutters like palin in the background.
You need to find someone else even though RP is a legend
Corndogs?
The void is called: charismatic, hence...electable. Unilke pointyhead Ron Paul. Perry is a wild man, all over the map ideologically. People read into him what they want. Only consistencies are his detestation of the DC/Wall St. crowd and love of the 2nd Amendment. Since the Ultimate Issues in this country are going to be (as usual in history) resolved by bullets not ballots, that's just fine. Perry vs. Obama will take this country a long step toward Civil War. In short,
Reporter to Perry: "Right now, are you carrying?"
Perry: "None of your business. That's why we call it 'concealed carry'".
QED
Show me the action and not the talk. Anyone can talk. Perry's actions tell a much different tail. I bet he was not packing when he bent his knee to his masters at the Bilderberger meetings. I bet he tells TSA if he is packing, as he killed the Texas Curb the TSA bill.
He is a conman. Guess you like what he is selling. Unfortunately, the stuff he is selling will never appear, just like Obama's snake oil never came true.
The left fell for the left con last time. Now the right is going to fall for the right con. Too easy for the banksters.
The election process is wonderfully reported by the embedded media. A multi-billion dollar exercise in financial flow-of-funds re-arrangements. If perception is key to valuation, then the winners of the financials get to tell the story. In what sport that we celebrate is the enjoyment of the game include all the players? In winner-take-all we learn to be serfs of the master of the marbles.
I'm sure Perry has followers who would follow him straight to Hell; I don't think they ever left home.
The Void called backed by globalist fiat and their captive mainstream media. He is simply trying to steal other's turf... he is a wannabee and toady of the globalists.
For you non Texicans, their is a HELL of a lot of difference between a Harvard/Yale Skull n Bones bitch, and a Texas A & M grad.......
We are talking HUGE differences in philosophy, and beliefs.UNLESS he has sold out to the NWO crew, look out below.
In Texas Aggies when no one else can find a good job, they will have one................almost like the CORPS.
Once an Aggie, always an Aggie.........................and they take care of their own.
I tend to agree. For now, Perry can't be marginalized like Paul always has been. So in this case it is the messenger and not the message.
CF, in your civil war scenario, I'm curious as to your view on the dividing lines? Establishment v. libertarians? It's not like there a defined geographic line like circa 1861...
Right. It's not going to be like CW I, with clearcut geographic dividing lines. There'll be a L-shaped swatch of seceeding states - high plains down thru midwest and on into south and southeast - but there will also be strong, crosscutting elements of rural vs. urban, right vs. left, and and whites vs. ethnics. All mixed up. A sustained, bloody Time of Troubles (cf. Toynbee) with an uncertain outcome. Quite possibly, the Russians or the Chinese will simply nuke us sometime along the way, thus solving all of our problems. In the meantime, I have this image of Rick Perry horsewhipping Shalom Ben....Beautiful.
Respectfully, Mr. Durden-
Perry has the potential to fill the void as attack dog for the message Dr. Paul has been sending for three decades. We need that message, and if Perry can drive it home with a hammer, good for him. Dr. Paul has done great work as it is, and he deserves to see his policies enacted in his lifetime- but what he does not deserve is to take a bullet for his convictions. If anyone else chooses to do so, I say more power to them, and wish them the sincerest best of luck in surviving the battle. For my part, the next vote I cast will be delivered airmail.
I may have taken a slightly different path than many here, seeking a dual major in philosophy and mathematics many years ago now, and using those for physical production, not investment ends- and I have nothing but the utmost respect for Dr. Paul. He is the continuation of a notable lineage- beginning with Aristotle, continuing through St. Thomas Aquinus, John Locke, the Founding Fathers, and Ayn Rand. But at root, he is a philosopher- and a fine one. His books have laid the foundations for a second American Revolution, but it is the province of younger men to see his vision come to fruition. In market terms, we are just beginning to see the start of the "mania" phase of liberty, but it will take the concerted efforts of young men of force and vigor to push it into a parabolic trend. I never cared about finance until it started reducing the quality of life of myself and my family, but before any of that began, Dr. Paul was a diamond in a wasteland.
I love Dr. Paul (In a manly Plutonic way, not that there's anything wrong with that,) but he's like a wise grandfather. Full of wisdom and rational council, but richly deserving his retirement. If this Perry can take the bull by the horns, and continue this battle, I say let him- and god bless. If we come out victorious in this battle, Dr. Paul has already secured his place in history- and if not, well, on a long enough timeline....
Keep stacking, and keep your powder dry, bitchez.
And if I may, I think you've secured your place(s) in history as well, Mr. Durden. Perhaps not on a grand scale- but Franklin was not primarily known for his "Silence Dogood" letters either. I know that you will remain in my own memory until the end as a voice of truth in an empire of lies. Well done, sir.