This page has been archived and commenting is disabled.
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.
.
»
- advertisements -
Amor Platonicus
With your background and thoughfulness, you should realize that what you will actually get from a president rick perry is aboslutely nothing whatsoever like what you seem to expect. Likely he would be roundly praised for his opening action... replacing Bernanke (the second biggest money-printer in the history of the universe) with Krugman (the absolute biggest money-printer and warmonger in the history of the universe, if he gets the chance). Wise up and get real.
Don't you realize these predator-scumbags say anything whatsoever to get elected, then do whatever they wish once they are elected. Have you even bothered to run through the massive lies spewed forth by Bush and Obama in the past two elections? Do so, it is absolutely mind boggling.
Yup. And the more I learn about Perry's background and political career the more I realize that he is the ultimate political shill. He's not what he seems to be -- and I fear his motivation(s).
Uh, the Jon Stewart clip that you linked to earlier today about Paul's "13th Floor" status pretty much says it all.
Perry is a dip chosen by some group of MSM and party elders. Paul speaks truth without (much) compromise and therefore scares the shit out of the MSM and elders of both parties. Hence Paul will be buried as much as possible by everyone with power - MSM, party bosses, most pundits, etc.
The media have the power to elect, and TPTB control the media. The dumbed-down populace has been groomed for too many years not to succumb to the media message.
That English gobshite Piers Morgan said the other night that Ron Paul needs to work on being more "electable"! As Piers claim to fame is judging talent shows, then he must be 100% right! If the next presidency is a talent show for spewing nonsense, then Obama will win hands down with Perry a close 2nd! By the way, thank you TD for all the great work you do here on ZH!
Thankfully, we won't have to worry about that twat Morgan much longer. Once the extent of the phone-tapping that went on during his tenure at the Daily Mirror becomes known, he'll be voted off pretty damn quick.
Then lets all "hope" that this tactic by Obama fails miserably and that nothing will "change" his current status as "pathetic lemonade stand manager" over the next 18 months. Sorry 5 year old girls and boys who run a good lemonade stand, I know I just insulted you guys by comparing you to Obama.
Your dreaming, lower the Meds please
Hey Bruce,
You'd have to admit that we are all missing Leo a little bit? I miss the laughs and fun we used to have reading his posts and going after him. If you check out his site, his rants and posting have gotten worst just so you know...
In fact I heard that Akak checked himself into a withdrawl clinic because our supply of Leo has been cut off.
<sighing> Oh well....
No, webbot, in fact I'm groovin' on the fact that Tyler(s) finally booted that Canadian Keynesian psychopathic jackass. I have not had as much free time to spend and post here as I normally do, but my virtual absence in these threads lately has nothing to do with leo's long overdue departure.
Missing leo? A day without leo is like a day without ......... an unfriendly letter from the IRS, a flooded basement, a chronic migraine, explosive diarrhea, and a backed-up toilet.
Too bad about LEO
here is his latest
Tuesday, August 16, 2011Death Cross Looking More Deadly This Time?
not sure if it is true but give him credit for having balls for taking a stand on being censored by TD. It would be nice to hear both sides of the story not just Leo's/
Leo was not being censored, and furthermore he did not take any stand but after repeated warnings was shown the (documented) way out. That said, out of past respects, we will not get into the details of what catalyzed his departure as it could be quite detrimental to his character.
thanks for the clarification TD and for providing a textbook example of asteism
I always liked but seldom agreed with him, though give him credit for his equity calls but he does seem to have some anger issues (as many do).
When he left/was banned at Naked Cap ironically in a piece that challenged Yves attack on ZH one could have predicted that he would eventually meet a similar fate here - something about a habit of biting the hand, burning bridges etc etc
TD,
Right now BK is the best horse in your barn.
Give him a long track and a light jockey and let him run.
He's leading the pack for a Triple Crown at this point and you can smell the roses.
.
"But we must play politics as well as run the global monetary system."
That's not quite right. It was actually ...
"But we must play politics as well as ruin the global monetary system."
I regularly have 4-5 typos. The ruin / run thing would have been perfect.
I think you're on to something here, Bruce. The "upscale Ron Paul" comment brought it all home for me. The GOP needs a fella who can espouse the basic message of Dr. Paul but throw out the anti-war rhetoric. Looks like Perry may just be their guy unless some yet to be announced candidate shows up. It's unfortunate that Perry obviously does not know the difference between Monetary Policy and Fiscal Policy (and who is responsible for what). He apparently believes that the Fed is a part of the actual governing mechanism. (I'll take whatever opposition to that notion that may come my way.) Maybe he should get Dr. Paul to help him polish the message?
He is there to co-op the message. He will parrot what Paul says about the Fed. Next he will say to cut off aid to the Mideast, Israel included. It will make headlines.
Nothing like that would ever happen if he were elected. A sitting Governor of a State does not go to secret Bilderberger meetings, subjecting himself to criminal charges, if he is not a committed member of the "team". Didn't Obama promise to stop the wars and bring the troops home, close Gitmo, etc, etc? Gitmo is open, the wars have multiplied, no need any more for any Congressional approval, just go to war on a whim or a Rothschild command. He will attack his handlers in public, that is what we want to hear, however, he is thier boy. Perrry is a bought and paid for liar. The people in Texas know it. He talks about the border, then passes a Dream act. He is the bankster's conman. He is the shill in the audience at the patent medicine show. You don't even have to dig deep to find out. It's all in the public record.
In related news, Paul Ryan, another bankster boy, is warming up in the wings in case Perry doesn't catch fire. He voted for every bankster bailout, but claims to be a fiscal conservative! Those votes were just mistakes. Trust me, Paul Ryan, Obama, Perry, they all play for the same team. The bankster team. When Perry opens his mouth, close your ears. He works for the PTB.
TO: Moe Howard
on Wed, 08/17/2011 - 06:23
#1568203
"In related news, Paul Ryan, another bankster boy, is warming up in the wings in case Perry doesn't catch fire"
perry is the candidate of the phil gramm wing of the shear the sheeple crime cartel. paul ryan is actually gramm's number one choice, but he's not running, so the guntotin', 'walk on-wannabe' rick perry was activated to play for pay on 'senator enron's' charismatic, evangelical dream team.....
bottom line, this is just more luciferian shape shifting with perrry playing the role as a well groomed, pretty boy bodysnatcher.............
Agree 100%. Perry is an insider, designed and intended to co opt Paul's message. Embrace, extend, and extinguish.
Perry is the "Bull Moose" candidate. He will split the vote and guarantee Obama a win. It's by design, it's been done before, and it will happen now.
Perry ran Gore's campaign
who is this guy a masseuse?
oh nevermind it was a long time ago and then there's that change you can believe in thing
http://www.politico.com/news/stories/0811/61428.html#ixzz1VAoMLg1t
http://www.time.com/time/nation/article/0,8599,2081596,00.html
and like George W Bush, Rick Perry was also a former Aggie Cheerleader
TO: anynonmous
on Tue, 08/16/2011 - 21:37
#1567447
"Rick Perry was also a former Aggie Cheerleader"
that's the connection....he's a phil gramm/kenny boy/ enron clone.............
http://www.vxec.com/2011/08/mixed-blessing-phil-gramm-endorses-friend-and-former-student-rick-perry/
http://sitanbul.wordpress.com/2011/08/17/exposed-phil-gramms-rick-perrys-looming-mega-crisis/
the philly-dog ranks pretty high on my cosmic accountability list.....i've got him at #4, just behind sandy weill, robber rubin and fat larry but ahead of easy al, benankenstein and hanky panky paulson.............
wow what a fucking surprise. wonder if kenny-boy will be a bundler for him? oh right, he's 'dead'.
So, the FED is scared of Perry?
1. ?
2. Rick Perry elected president.
3. Profit.
OK, now what?
no, the fed is scared of Paul, they are using Perry as a blocker.they really want Romney but thats may not turn out and Perry is the fallback.jusy all to split the vote as the money still seems to be heading into O's camp.