Presenting Einstein's Definition Of Insanity In A Taxpayer Funded Suit

Tyler Durden's picture




 

Charlie Evans proved once and for all that he is the 'doviest' dove in the Fed's dove-cote as he espoused his own special sense of reality with CNBC's Steve Liesman this morning. His ability to speak out of both sides of his dual-mandate mouth while suppressing the reality of rising prices and expounding on the need for the Fed to be more accomodative (we assume they will stop at infinite infinities of easing), Evans made it very clear, when pushed on the topic of QE efficacy, that they will continue to print (unable to provide any quantitative assessment of the result) until morale improves. That's it; nothing less. Inflation - no worries; all the time the unemployment rate is where it is they are justified in debasing to the max. Must watch clip to understand why precious metals have surged this morning and stocks not so much as they will repeat the same actions again and again and expect a different outcome.

 

Evans: Until we see six months of 200k-plus NFP then maybe they ease off...

Evans: Growth forecasts based on his view of more accomodative policy (so far too rosy)...

Evans: Refinancing their mortgages is his transmission channel of choice... (just ignore the whole balance-sheet-recession debt-reduction thing...)

Evans: banks are looking for good quality credits to lend to... (yeah, not so many of them around eh?)

 

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Mon, 10/01/2012 - 09:45 | 2844745 taniquetil
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6 months of 200k-plus NFP?

 

They're gonna be doing this for a LONG time.

Mon, 10/01/2012 - 09:49 | 2844759 Popo
Popo's picture

Einstein never said anything of the sort about insanity.   He understood the mathematics of probability, randomness, tipping points, and limits in calculus pretty well.   He was well aware the identical actions frequently produce non-identical results.  

Mon, 10/01/2012 - 09:50 | 2844762 LawsofPhysics
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Correct.  Yeast will once again be shown to be more intelligent than man.  Hedge accordingly.

Mon, 10/01/2012 - 09:54 | 2844786 Parabolic
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Forget about absolute numbers quoted by the FED regarding easing.  The big wave for us will take off once they start "targeting" as alluded to by the dove.  Rickards mentioned targeting inflation in his book...but you can target whatever the hell you want (ie NFP/unemployment, etc), the end game will be same, only rapid-er...

Mon, 10/01/2012 - 09:58 | 2844804 Landotfree
Landotfree's picture

There is no victory against the equation.   

1-3 billion unfunded liabilities will have to go is my guess.

Mon, 10/01/2012 - 10:11 | 2844827 Stackers
Stackers's picture

We call that a pigeon in Texas. Not a dove.

Mon, 10/01/2012 - 11:02 | 2845075 odatruf
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Here in New Hampshire, we call it dinner. Add some seasonal vegtables or fruit, and you have a nice stew.

 

Mon, 10/01/2012 - 10:18 | 2844885 JPM Hater001
JPM Hater001's picture

You missed a few zero's there.

Mon, 10/01/2012 - 10:35 | 2844959 kridkrid
kridkrid's picture

He's talking people, not money.

Mon, 10/01/2012 - 10:45 | 2844985 toady
toady's picture

Exactly. We are moving from trillions to quadrillions, so 1 to 3 billion? HA! Unless he's talking humans. Then 1 to 3 billion sounds about right. Maybe a little low, more like 3 to 5, but just about right.

Mon, 10/01/2012 - 10:22 | 2844907 LawsofPhysics
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I don't know if I would consider the masses "unfunded liabilities" so much as underfunded liabilities.

Long sharecropping and undertakers.  Hey, somebody's got to profit, this is a trading site after all.

Mon, 10/01/2012 - 10:29 | 2844937 Uncle Remus
Uncle Remus's picture

How's about unconstitutional?

Mon, 10/01/2012 - 11:24 | 2845165 MillionDollarBogus_
MillionDollarBogus_'s picture

I said it last week and will say it again here - the Fed should start selling mortgages directly to consumers.

Screw this buying up mortgage debt on the secondary markets.

Buy it directly from consumers.

Put your newly-created-from-nothing money where youur mouth is, Evans...

 

Mon, 10/01/2012 - 12:09 | 2845328 MillionDollarBoner_
MillionDollarBoner_'s picture

Doh, my brudder. Yous dont gets its, doos ya?

Its not about the consumer, its about the banks.

Its not about liquidity, its about solvency.

Its not about democracy, its about oligarchic kleptocracy and regulatory/political capture.

Enough with the Groupthink already.

Mon, 10/01/2012 - 10:02 | 2844817 Mr Lennon Hendrix
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Unfortunately we are boxed between such idiotic premises as "Forever Easing" and "Austerity" when there are many other solutions to this horror.  For example, if we reconstituted Corporate Charters JPM and other ones such as XOM would not be able to get away with murder due to them having personhood but not being persons.

The corporate schills have hid behind corporations and government facades so to not take punishment for their wrong doings.  If we could make it seen plain as day who the monsters are, we would not be stuck in such an awkward delema as this Hegelian Dialectic we are currently in.

Mon, 10/01/2012 - 10:05 | 2844826 Landotfree
Landotfree's picture

Correct.   The price will have to be paid for using the equation.    Neither choice will work much longer as the mistake was made and continues to be made to use the equation.

The price will be the lives of 1-3 billion unfunded liabilities is my guess.   

The final solution to the equation is one the hairless monkeys do not want to hear, the solution to not going down this road again is not something the hairless monkeys want to hear ie rinse and repeat.

 

Mon, 10/01/2012 - 11:29 | 2845191 Ckierst1
Ckierst1's picture

I think corporations are demigods maybe? They have been granted a personna by TPTB and yet then don't experience the same vulnerabilities as us mere mortals (MM). I need to get a clear shot at a heel.

Mon, 10/01/2012 - 12:16 | 2845341 ZeroAvatar
ZeroAvatar's picture

It's not "Austerity", it's "Ugly Deleveraging".

Mon, 10/01/2012 - 09:57 | 2844797 Landotfree
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This is why lemmings are doomed to repeat.  This is not the reported quote. "Albert Einstein is reported to have called compound interest the most powerful force in the universe."  The reported quote was one about human not understanding exponential growth.  

http://www.fool.com/investing/dividends-income/2006/12/13/profit-from-einsteins-most-powerful-force.aspx

As far as I can see, hairless monkeys just rinse and repeat.   

Mon, 10/01/2012 - 12:24 | 2845381 ZeroAvatar
ZeroAvatar's picture

Damned, filthy apes!  You destroyed it all, didn't you!?

Mon, 10/01/2012 - 09:58 | 2844801 rustymason
rustymason's picture

“God does not play dice with the universe.”

Mon, 10/01/2012 - 14:03 | 2845819 JuliaS
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"I take pride in doing God's worK"

- Lloyd Blankfein

Mon, 10/01/2012 - 10:58 | 2845058 TheCanadianAustrian
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Why the hell are you being junked for this comment? This misquote is extremely annoying to me as well.

Mon, 10/01/2012 - 11:32 | 2845213 ATM
ATM's picture

There is no record of Einstein every saying or writing this. In fact, it most probably comes from Alcoholics Anonymous which used it maybe as far back as the 30s.

Mon, 10/01/2012 - 10:01 | 2844812 HelluvaEngineer
HelluvaEngineer's picture

Wow.  I take back what I said earlier.  This guy is a complete fucking retard.  A pure product of Academia.  We're doooooomed.

Mon, 10/01/2012 - 10:03 | 2844821 machineh
machineh's picture

CORRECTED TITLE: 'Presenting Einstein's Definition of INANITY ...'

This way to the egress, folks! Welcome to the circus!

Mon, 10/01/2012 - 10:13 | 2844859 Gavrikon
Gavrikon's picture

He does seem to have gone "full retard."

But don't be doomed.  GetZeeGold before it's too late. . . .

Mon, 10/01/2012 - 10:24 | 2844919 2bigtoofail
2bigtoofail's picture

Ok check my math here. Balance sheet increase per month of 85 BILLION for the creation of 200,000 jobs. OR... 425,000 dollars per job. This is what sound monetary policy looks like?

Mon, 10/01/2012 - 10:44 | 2844992 kridkrid
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Checked it. Correct. But there is really no reason to talk about something that has nothing to do with the real goal. It's not job creation, it's merely pushing back the collapse as long as possible. The intelligent conversation around this would be "why". What are they waiting for? What will the timing be and why?

Mon, 10/01/2012 - 11:00 | 2845071 toady
toady's picture

'Why' is the question. I was and will be thankful for the last four years, but why continue at this point?

I was completely in the dark when shit went south in 08. If the shit just collapsed back then I would have been screwed. Thankfully, through sites like this, I've put together a plan and have a better chance than most.

I suppose dragging it out even more gives more people a chance to prepare, but if they haven't started by now ...

Mon, 10/01/2012 - 09:47 | 2844751 slaughterer
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Evans: a gold/silver-bugs best friend.  

Mon, 10/01/2012 - 10:39 | 2844970 Mr Lennon Hendrix
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It's not that I want to see the desruction of the currencie I use everyday, it's that I know what economists are going to do to try and prop the system up.

They will devalue the dollar so to increase asset prices so we don't go into deflation.  Deflation at this point not only means wealth destruction for the rich and unfunded pensions for everyone (and in the land of the free credit everyone would go bankrupt) but it means the reigning economic paradigm would be proven wrong and not a science.

This would mean that economics is a philosophical debate and not a sound metric and policy would need to change as with education.  This would shake our society at its core and it could change the status quo overnight.  The whole purpose for "QE" and whatnot is to maintain the status quo...at least until the Police Grid is firmly in place.

Mon, 10/01/2012 - 10:50 | 2845027 kridkrid
kridkrid's picture

And the likely answer to the question I ask just above. Recognizing that there is "no solution"... That the system was going to collapse because it was/is created to collapse is the mental realignment that people MUST have in order to ask the right questions and to seek logical answers. ALL conversations that start with the premise that "something can be done" retards our understanding of the world around us, by design.

Mon, 10/01/2012 - 09:48 | 2844753 Money By Trading
Money By Trading's picture

My latest weekly review on gold:

http://wp.me/p2CT0a-69

Dollar index needs to stay below 80.

Mon, 10/01/2012 - 09:48 | 2844754 Dexter Morgan
Dexter Morgan's picture

I just stacked another 20 ounces of silver on Saturday.  Anybody else?

Mon, 10/01/2012 - 09:50 | 2844764 intj87
intj87's picture

Yeap, I stacked more last week as well :)

Mon, 10/01/2012 - 10:01 | 2844809 CunnyFunt
CunnyFunt's picture

Found 200+ grams sterling scrap for $0.50/gram. Bid $500 for a 30 gram 14k chain, the girl almost wet herself and handed it over. She said "I had no idea gold was worth so much." She's going to find some more :)

Mon, 10/01/2012 - 10:39 | 2844975 new game
new game's picture

pre stacked

at this point hedging food, oil against pm.

maybe glocks, colts, s&w's and lead get a bonus lift to put this hedge "over the top"

ps. thanks ben and charlie

Mon, 10/01/2012 - 09:49 | 2844757 otto skorzeny
otto skorzeny's picture

ZH-"We Watch CNBC So You Don't Have To"

Mon, 10/01/2012 - 09:55 | 2844787 Dr. Richard Head
Dr. Richard Head's picture

ZH is like the Mister Skin of the financial TV world.  Finding the financial boobs and asses, so we don't have to sit through the entire shit show.  NICE

Mon, 10/01/2012 - 10:00 | 2844808 machineh
machineh's picture

Watching CNBC is kind of like mucking out a septic tank with your bare hands.

Don't let their reeking effluent spill on your living room rug!

Mon, 10/01/2012 - 09:49 | 2844760 yogibear
yogibear's picture

Evan's, like Dudley, Yellen and Bernanke all want to print their way out of debt. Devalue the existing debt.

Only problem is Obama will spend more and add more debt.

The doves are just the enablers for higher and higher US debt. Higher taxes.

Zimbabwe here we come.

Let's see how this all ends.

Mon, 10/01/2012 - 09:48 | 2844761 LawsofPhysics
LawsofPhysics's picture

More than eight years into the bush tax cuts and the truly wealthy have made billions in capital gains (money for nothing) taxed at a fraction of what truly earned income is taxed at.  These uber rich are the supposed "job creators"?!?!  LMFAO!

Well where the fuck are the jobs?  Seems to me these guys have been offshoring just about everything, buying private islands and planning their exits (with gold) to places like the phillipines and Barbados.  What do they know that the sheep don't?

Keep talking douchebag, my physical PMs thank you.  Time to sheer the sheep, again.

Hedge accordingly.

Mon, 10/01/2012 - 10:01 | 2844810 Quinvarius
Quinvarius's picture

But remember, you get that same capital gains tax rate.  Iphone toting beatnicks, mods, hipsters don't understand that they are trying to raise their own taxes when they advocate going after capital gains.

Mon, 10/01/2012 - 10:14 | 2844864 LawsofPhysics
LawsofPhysics's picture

That which is not sustainable will not be sustained.  Hedge accordingly.

Mon, 10/01/2012 - 11:13 | 2845108 odatruf
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Quinvarius - I think they do understand that their own taxes will go up.  What they are betting on is that in the grand redistribution, they will get more back than they put it.

They think the step-and-fetch political leaders will all of sudden act in their best interest.

They think the bankers and other elites will simply take it and shrug it off with a "what can you do" attitude.

They think that just a bit more spending will finally solve some of these problems and that once that's done, we can all relax.

 

I think they were dropped on their heads as children. What else can explain it?

Mon, 10/01/2012 - 14:31 | 2845995 Blankenstein
Blankenstein's picture

Yep  People will be clamoring to raise the capital gains tax and the sycophantic politicians will craft their legislation so it will penalize all of us without pensions who are trying to save some money to retire on and the elite will emerge unscathed.

Mon, 10/01/2012 - 10:21 | 2844903 JPM Hater001
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Solid Law.

Mon, 10/01/2012 - 09:50 | 2844766 Drachma
Drachma's picture

"infinite infinities" - Gregor Cantor would be proud.

Mon, 10/01/2012 - 09:50 | 2844769 Kilgore Trout
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This man chews his cud.

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