• Tim Knight from...
    04/28/2016 - 00:27
    I was expecting a few boring candidate statements of the U.S. Senate - AKA the World's Most Exclusive Club - but, boy, was I wrong. Just take a look at some of these gems.
  • Tim Knight from...
    04/28/2016 - 00:27
    I was expecting a few boring candidate statements of the U.S. Senate - AKA the World's Most Exclusive Club - but, boy, was I wrong. Just take a look at some of these gems.

David Einhorn Explains How Ben Bernanke Is Destroying America

Tyler Durden's picture




 

David Einhorn knocks it out of the park with his very first statement during today's Buttonwood Gathering, in a segment dedicated to one thing only: explaining how the Fed's policies are not only not helping the economy, they are now actively destroying this country.

"Sometimes you have to look at what is the base assumption. because sometimes you have a groupthink around the base assumption and everybody agrees to the same thing and acts reflexively and doesn't really challenge what is going on. I think we have reached that point with the monetary policy. The assumption is that if you want the economy to improve, if you want more jobs, if you want more consumption, what we need is ever-easing monetary policy. My point is that if one jelly donut is a fine thing to have, 35 jelly donuts is not a fine thing to have, and it gets to a point where it's not a question of diminishing returns but it actually turns out to be a drag. I think we have passed the point where incremental easing of Federal policy actually acts as a headwind to the economy and is actually slowing down our recovery, and I am alarmed by the reflexive groupthink of the leaders which is if we want a stronger economy, we need lower rates, we need more QE and other such measures." 

And that, in a nutshell is it: everything else follows.

Because in addition to explaining the same fundamental error in the Fed's logic (from an economic standpoint; we already showed what the "market" error is, namely that instead of forcing investors to buy risk assets as Bernanke's wealth effect prerogative demands, these same investors are merely frontrunning the Fed's purchases of bonds and MBS, in what is truly a risk free, if lower-returning trade, and is key reason why ever fewer equity market participants are left, leading to lower bank revenues, bank employee terminations, lower Federal and State tax refunds, and so on, in a closed loop) it also points out the social aspect. At one point in the interview, Einhorn observes that traders and economists now have diametrically opposing views on the effectiveness of QE (no need to explain whose view is what). The reason for this dichotomy is simple, if crucial: we are now at a point where the entire practice of new-classical economics - the bedrock thinking of all modern soecity - is at risk of being exposed for a sham "science" which is and has always been absolutely flawed. Because when one day the Fed fails to prop up the Fed, and fail it will, all the economists that encouraged the Fed to do what it does, without grasping the true implications of 'diminishing returns', will be forced to fall on their swords (hopefully metaphorically but who knows). And with that the end of the shaman cult that shaped the modern world will finally end. But not before every single "economist" keen on perpetuating their job, their tenure, and their paycheck for as long as possible, backs the Chairman fully and unconditionally: anything less, any outright dissent within the economic cabal, would lead to a far faster unwind of the Fed's policy artifice even faster than it otherwise will fail.

Recall that this was precisely the dilemma before the Bundesbank as we explained yesterday, when it did what it had full right to do openly, yet did secretly, when it pulled its gold inventory from London: it implicitly confirmed it was no longer a willing participant of the NWO, and no longer is willing to sacrifice its sovereign independence at the altar of Keynesianism, and monetary theory.

But back to Einhorn, who presents one of the most coherent explanations why QE, contrary to the Chairman's "best intentions" does nothing to stimulate the economy at the consumer level, and why it effectively serves as a hindrance to future growth:

"Lower rates drive up the cost of commodities: oil and food. And money that is spent on oil is sent out of the country to the Mideast and it doesn't help, and takes out income from people's pockets that could otherwise be spent on other goods. The second [ZH: and this is by far the biggest thing that the Fed refuses to acknowledge] is that not being able to earn a safe return on savings, is causing people to hoard savings rather than consume. In other words if I know I am going to earn 3% in the bank I can spend that income and I can have visibility towards that, but if I know I'm going to earn zero in the bank, in order to figure out how much I need to save for retirement I need to save a much bigger number. Which means I can't spend much now, I need to save more now, to build up those savings for retirement. If I am already retired and I am on fixed income, my income has now really gone down and I have to hoard money so I can spread it out thinner over a longer part of my life. So by denying individuals savings or interest on income on their savings, it is causing hoarding which is driving down consumption which is hurting the economy."

As a reminder, in America consumption, not the government (which despite incorrect claims to the contrary has never created even one penny of wealth), is responsible for 70% of annual GDP. Is it any wonder that the Fed's own policies, done solely to protect the financial system, and to enrich those whose wealth is already primarily in the stock market (the infamous "1%"), are the cause of the ongoing catastrophe that is the destruction of America's middle class, which day after day sinks lower and lower?

Also, in direct debunking of all those Magic Money Tree (aka MMT) "economists" who say that government deficits are a great thing because the lead to higher savings, while maybe true on paper, Einhorn shows that the "expectations" component of behavior here is far more critical than what simplistic Econ 101 textbooks claim, especially the ones that were written long before anyone thought that the US would have a Zero Interest Rate Policy for at least 7 years (and likely more until the runaway inflation finally hits):

In terms of the savings, I don't think it's a zero sum, because it's a multiplier on the behavior. It's not just the income I am not receiving now. It is the income I don't expect to receive in the future as well. Now we are years years into [ZIRP] with a promise of at least three more, so that's seven years, and you are getting a change in behavior on a multiplied basis.

Finally, and touching on the previous point of why theoretical economists' views differ so much from those who practically make a living by being right for a change, Einhorn is laconic: "It's very hard for economists with models, with very limited sample sets and empirical data to understand [that we've gone beyond the point of monetary policy diminishing returns.] I think you wind up with a different view from people like me in the real world who aren't just trying to figure out what do the models say, but how do people actually behave.... We've opened up enormous tail risks of what happens if the Fed loses control, what happens if the Treasury loses control and these scare people and drive up risk premiums, and drive down P/E multiples and make companies defer long-term investments in the country because they are worried about significant tail risks these very aggressive policies are creating." And there you have it - someone please advise Paul Krugman and his cotterie of useless voodoo shamans whose only recommendation has always been more of the same. Pardon: much, much more.

None of the what Einhorn said in today's Buttonwood gathering of course is news, as he simply reiterated everything he said in his letter to investors from Tuesday, which is just as effective at explaining how the Fed's solipsistic illogical methods are bankrupting America. The key section in that letter is the following excerpt:

It seems as if nothing will stop the money printing, and Chairman Bernanke in fact assures us that it will continue even after the economic recovery strengthens. Specifically, he says, “Even after the economy starts to recover more quickly, even after the unemployment rate begins to move down more decisively, we’re not going to rush to begin to tighten policy.” Apparently, anything less than a $40 billion per month subscription order for MBS is now considered ‘tightening’. He’s letting us know that what once looked like a purchasing spree of unimaginable proportions is now just the monthly budget.

 

Chairman Bernanke concedes that this policy hurts savers, then offers some verbal sleight-of-hand worthy of a three-card monte hustle: He says the savers are helped by low rates because low rates support higher asset values and promote a healthy and growing economy. He then goes on to say that because savers benefit from a healthy and growing economy, we must therefore have an accommodative policy. This in turn begs the question: Does an accommodative policy promote a healthy economy? Chairman Bernanke argues that higher asset values create a wealth effect, which he again describes, “if people feel that their financial situation is better because their 401(k) looks better or for whatever reason, their house is worth more, they are more willing to go out and spend.”

 

We have just spent 15 years learning that a policy of creating asset bubbles is a bad idea, so it is hard to imagine why the Fed wants to create another one. But perhaps the more basic question is: How fruitful is the wealth effect? Is the additional spending that these volatile paper profits are intended to induce overwhelmed by the lost consumption of the many savers who are deprived of steady, recurring interest income? We have asked several well-known economists who publicly support the Fed’s policy and found that they don’t have good answers.

And so on. If by now it is unclear to anyone that Bernanke is not only not doing anything to help America, or the world, but is merely accelerating this country's destruction, and perpetuating the same practices that result in breakouts of food price shocks leading to isolated genocide in those parts of the world without a safety net, then we congratulate you on your imminent receipt of a Nobel prize in Economics.

Finally, for those asking "what should be done", Einhorn's suggestion is identical to the one Zero Hedge has preached to its readers since day 1, nearly 4 years ago. And we don't even charge 2 and 20...

If Chairman Bernanke is setting distant and hard-to-achieve benchmarks for when he would reverse course, it is possibly because he understands that it may never come to that. Sooner or later, we will enter another recession. It could come from normal cyclicality, or it could come from an exogenous shock. Either way, when it comes, it is very likely we will enter it prior to the Fed having ‘normalized’ monetary policy, and we’ll have a large fiscal deficit to boot. What tools will the Fed and the Congress have at that point? If the Fed is willing to deploy this new set of desperate measures in these frustrating, but non-desperate times, what will it do then? We don’t know, but a large allocation to gold still seems like a very good idea.

So who should listen to: a failed historian-economist who has never worked in the real world, who has no idea how human behavior plays out in reality, who has lived in an ivory tower all his life, and who has never had to put his money where his mouth is, or a self-made billionaire? For us the choice is clear.

* * *

The Einhorn segment in the Economist clip below starts 56 minutes in.

Watch live streaming video from theeconomist at livestream.com

And for more context, here is what Einhorn said about the Fed in his latest letter to clients:

Central bankers have been on a money printing spree. In Japan, they expanded monetary easing by ¥10 trillion. In the U.K., the Bank of England monetized another £50 billion of gilts. ECB President Mario Draghi promised “unlimited” bond buying, and the Swiss are committed to putting a floor under the Franc through unlimited purchases of Euros and other assets.

 

This buying binge brings to mind American Express cards, which are famous for their promise of no pre-set spending limits. But as some AmEx customers have learned, there is a spending limit – they just don’t tell you what it is. AmEx anticipates how much you can repay based on your annual income and your payment history. When your charges exceed their estimates, they cut you off until you pay off your balance.

 

Central bankers should keep this dynamic in mind, as they continue to run their printing presses. While the ink may be endless, the market’s tolerance is not (though there is no sign that it is nearly exhausted). Like American Express, the market won’t let the central bankers know what their spending limits are until they have exceeded them and get cut off.

 

Here in the U.S., Chairman Bernanke announced desperate measures in non-desperate times. The Fed will be using its new AmEx Debasium card to buy a minimum of $40 billion per month worth of mortgage-backed securities…indefinitely. If the job market doesn’t show “substantial improvement” the Fed might increase its monthly MBS allocation, or head over to aisle 3 to pick up some Treasuries. When asked what would bring the binge to an end, Chairman Bernanke was more intent on emphasizing all the things that would necessitate further easing. In conjunction with the money printing, Chairman Bernanke has promised zero percent interest rates through the middle of 2015.

 

It seems as if nothing will stop the money printing, and Chairman Bernanke in fact assures us that it will continue even after the economic recovery strengthens. Specifically, he says, “Even after the economy starts to recover more quickly, even after the unemployment rate begins to move down more decisively, we’re not going to rush to begin to tighten policy.” Apparently, anything less than a $40 billion per month subscription order for MBS is now considered ‘tightening’. He’s letting us know that what once looked like a purchasing spree of unimaginable proportions is now just the monthly budget.

One observation: it is not $40 billion. It is $85 billion as we said the day QE3 was announced:

 Because remember: exchanging Long-Term debt which has massive 10 year equivalent duration, with risk free paper, aka Operation Twist and of which $45 billion takes place each month (i.e., the direct monetization of all gross Treasury issuance with a maturity more than 10 Years) is merely another "Flow" type operation.

Einhorn continues:

Chairman Bernanke concedes that this policy hurts savers, then offers some verbal sleight-of-hand worthy of a three-card monte hustle: He says the savers are helped by low rates because low rates support higher asset values and promote a healthy and growing economy. He then goes on to say that because savers benefit from a healthy and growing economy, we must therefore have an accommodative policy. This in turn begs the question: Does an accommodative policy promote a healthy economy? Chairman Bernanke argues that higher asset values create a wealth effect, which he again describes, “if people feel that their financial situation is better because their 401(k) looks better or for whatever reason, their house is worth more, they are more willing to go out and spend.”

 

We have just spent 15 years learning that a policy of creating asset bubbles is a bad idea, so it is hard to imagine why the Fed wants to create another one. But perhaps the more basic question is: How fruitful is the wealth effect? Is the additional spending that these volatile paper profits are intended to induce overwhelmed by the lost consumption of the many savers who are deprived of steady, recurring interest income? We have asked several well-known economists who publicly support the Fed’s policy and found that they don’t have good answers.

 

If Chairman Bernanke is setting distant and hard-to-achieve benchmarks for when he would reverse course, it is possibly because he understands that it may never come to that. Sooner or later, we will enter another recession. It could come from normal cyclicality, or it could come from an exogenous shock. Either way, when it comes, it is very likely we will enter it prior to the Fed having ‘normalized’ monetary policy, and we’ll have a large fiscal deficit to boot. What tools will the Fed and the Congress have at that point? If the Fed is willing to deploy this new set of desperate measures in these frustrating, but non-desperate times, what will it do then? We don’t know, but a large allocation to gold still seems like a very good idea.

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Thu, 10/25/2012 - 20:55 | 2920328 Diesel Seven
Diesel Seven's picture

My dog would argue that 35 jelly donuts are better than 1jelly donut . . . and I personally like erogenous shocks. Everything else my dog and I agree with.

Thu, 10/25/2012 - 21:02 | 2920338 economics9698
economics9698's picture

...ZIRP yea we get it.  Now how do we kill the bankers and who will finance it? 

 

Thu, 10/25/2012 - 22:30 | 2920510 Chris Jusset
Chris Jusset's picture

David Einhorn rules!  I want David Einhorn's autograph!

Thu, 10/25/2012 - 23:01 | 2920561 rocker
rocker's picture

In Bernanke's World, the economy is the Banks.  Not Jobs, Not People's Needs, Not Inflation, Just Banks and their CEOs.

David Einhorn understands that Bernankes dollar devaluation of the dollar hurts demand for the majority.

But Bernanke believes if they are well off and Wall Street does well,  everyone will feel good.

Even if the majority can't afford to buy one share of AAPL or their I Shit Phones.  I never saw food lines until 2008. And they are still there for four years. 

The Worst part of this is the CEOs like Lloyd Blankfien who got a 100 million dollar bonus from Hank's bailout in 2008 does not want to pay taxes on it. 

Thu, 10/25/2012 - 23:44 | 2920613 nope-1004
nope-1004's picture

 

 

Rule # 1:  Bankers lie.

Rule # 2:  Bernanke is the head of the banking cabal.

Rule # 3:  Put one and two together.  The Fed, the Treasury, the Presidents Working Group, Bernanke, and the Economic Oversight Committee are all one big sack of lying dog shit.

"QE is good for savers, cuz they get low rates".  LOL.  That reminds me of the psychotic statement he said about inflation a year ago:  "Increases in food prices in developing nations is a direct result of the citizens of those nations seeking more sophisticated diets."  I assume he was referring to corn and wheat.

 

 

Fri, 10/26/2012 - 01:24 | 2920660 Bay of Pigs
Bay of Pigs's picture

Exactly. The Bernank?

We have to go back a few decades. 

Fri, 10/26/2012 - 07:35 | 2920949 Thomas
Thomas's picture

David Einhorn's ideas have gelled remarkably quickly. He gave a speech a year or two ago that, by his own admission, got no attention of consequence. This speech appears to be high refined variant--Einhorn on Monetary Policy 2.0. I also suspect that he feels the need to become an expert on monetary policy in ways that he could not have imagined just a few years ago. This is the sad state of affairs, and I think David caught it well. This speech will not go unnoticed.

Sat, 10/27/2012 - 02:00 | 2923494 Enslavethechild...
EnslavethechildrenforBen's picture

Speech?

You act like he's the godamned President.

He's an over paid Troll, no more, no less. Definately not an original thinker, he's just spouting out more mainstream bullshit.

It's starting to smell around here.

Sat, 10/27/2012 - 10:09 | 2923708 Bendromeda Strain
Bendromeda Strain's picture

If it were mainstream, it wouldn't be presented here without being deservedly mocked. Try to bring some value added whining next time.

I think the smell you are referring to started around 11 weeks and one day ago.

Sat, 10/27/2012 - 12:30 | 2923854 ToNYC
ToNYC's picture

Savers are killed by ZIRP while Banks like vampires feed on that blood. This is not rocket science, nor is listening to voodoo high priests of the Bankers club which thinks that money is best served when they feel like it.

I've been writing about ZIRP kills for at least 2 years in ZH and they handed Socrates a cup of hemlock too for corrupting youth. There is progress; David Einhorn passes on the hemlock.

Fri, 10/26/2012 - 07:48 | 2920950 GetZeeGold
GetZeeGold's picture

 

 

 

It all was working well for hundreds of years until Tricky Dick Nixon showed up.

 

I can tell you exactly where I was when he announced going off the gold standard.....I was just a kid but I knew it didn't sound good.

 

It was the first of many massive bailouts to come. The creation of the Fed set the stage...but only Dick had the nuts to make it happen.

Fri, 10/26/2012 - 02:46 | 2920793 Buck O Five
Buck O Five's picture

That is incredibly unkind of you towards sacks of dogshit

Fri, 10/26/2012 - 05:42 | 2920885 Gazooks
Gazooks's picture

Not entirely lies, beyond corn and wheat there's wealth effect in the civil punishment market's burgeoning prison population; ETF ticker: PUN

Also, government space program spending has produced its own golden resource; Tang (interestingly, served widely in detention)

 

If you're provisioned like me, volatility trading in and out with increasing momentum of PUN & Tang just feels right.

Fri, 10/26/2012 - 07:58 | 2920964 Its_the_economy...
Its_the_economy_stupid's picture

Freakin'Funny!! You clever, very clever. In...out....poontang.

Fri, 10/26/2012 - 05:54 | 2920893 jjsilver
jjsilver's picture

Bernanke is just the front man

Fri, 10/26/2012 - 07:40 | 2920953 GetZeeGold
GetZeeGold's picture

 

 

The rabbit hole is deep.....and it goes straight into hell.

Sat, 10/27/2012 - 02:50 | 2923512 Clashfan
Clashfan's picture

Yup. And it is everywhere. Fucking TSA goons are horrible. Is this America? WTF?

http://www.infowars.com/rape-victim-who-refused-tsa-groping-found-guilty...

Judges in on this shit, politicians, cops, National Guard, etc.

Horrific.

Sat, 10/27/2012 - 10:40 | 2923735 Bendromeda Strain
Bendromeda Strain's picture

nope-1004, quoting the Bernank:

"Increases in food prices in developing nations is a direct result of the citizens of those nations seeking more sophisticated diets."

So export some effing hedonic regression to them, stat!

______________________________

It certainly "cured" us, didn't it?

 

Thu, 10/25/2012 - 21:49 | 2920427 True.North
True.North's picture

Lehman Brothers & Allied Capital are a drop in the bucket next to the Fed

Thu, 10/25/2012 - 22:29 | 2920506 fourchan
fourchan's picture

the job of the fed is to make money for its shareholders by any means.

the means it has always used is to create boom and bust cycles.

these cycles capture loaned on property and enslave the borrowers to debt.

to those who are not enslaved already, the fed devalues their savings of frns through inflation,

which is only another word for devaluation. the "system" is working

perfectly and as planned by its creators 100 years ago.

 

the fed has stolen america and enslaved a free people.

Thu, 10/25/2012 - 22:55 | 2920558 centerline
centerline's picture

The whole game just channels human nature.  Expand until you can't expand any further and then collapse.  Rinse... repeat.  Those who know the game make a killing on the up and the down.

Just cycles.  But they are longer than our lifespans so we don't really see them so clearly.  Funny how as the current cycle approaches it's logical conclusion the "rat race" is running so fast that most folks can't see past the next paycheck... let alone ponder 100 year+ planning.  A game well played.

The problem at this turn is that the game found it's way to a whole new level.  Globalization via cheap energy (oil) and technology.  This cycle was like no cycle ever before in history.  Makes the Mayans and Romans look like chumps.  Makes thier civilizations look like ant hills.  

I would like to believe that I am wrong about a lot of things.  But, the fact there have been no real arrests for financial crimes says everything I need to know.  It is really that simple.  That and the inescapable math the promises made cannot be kept and cash flow is all we have now keeping the machine ticking.

Fri, 10/26/2012 - 02:11 | 2920773 John_Coltrane
John_Coltrane's picture

Or to paraphrase Griffin (Creature from Jeckyl Island):  The name of the game is bailout and its method is debt-backed money.  Debt is slavery in every practical sense.  So, everyone on this board knows how to free themselves.

Fri, 10/26/2012 - 06:47 | 2920919 Bobbyrib
Bobbyrib's picture

"So, everyone on this board knows how to free themselves."

Emigrate and leave everyone else fucked and holding the bag.

Sat, 10/27/2012 - 09:43 | 2923690 WhiteHose
WhiteHose's picture

Bravo! some people really get it! excellent post!

Sat, 10/27/2012 - 09:47 | 2923692 WhiteHose
WhiteHose's picture

Again, bravo! excellent post! the fed and central banks have always been the problem. it matters not who sits in the white house. it never has, prob never will, unless we change the system. 

Thu, 10/25/2012 - 23:31 | 2920597 Silver Bug
Silver Bug's picture

He is definitely leading us towards the path of hyperinflation. Hold on to your seats.

 

http://schiffblog.blogspot.ca/

Fri, 10/26/2012 - 05:08 | 2920872 tocointhephrase
tocointhephrase's picture

Ask the dog how he feels after he has eaten said donutz!

Fri, 10/26/2012 - 05:53 | 2920892 Gazooks
Gazooks's picture

ask the carpet

Sat, 10/27/2012 - 02:32 | 2923506 hunglow
hunglow's picture

You are #1.

Thu, 10/25/2012 - 20:57 | 2920334 realtick
Thu, 10/25/2012 - 23:24 | 2920589 JuliaS
JuliaS's picture

Apple bugs are called "worms".

Thu, 10/25/2012 - 21:00 | 2920337 The Shootist
The Shootist's picture

So the Federal Reserve is a criminal cartel? Then what are we doing posting on here?

Thu, 10/25/2012 - 21:11 | 2920352 Pure Evil
Pure Evil's picture

The FED web blog doesn't allow you to say, FUCK YOU BERSTANKY, in its comment section.

Thu, 10/25/2012 - 21:34 | 2920391 alien-IQ
alien-IQ's picture

If you want to figure out who rules over you, just find out who you can't criticize.

Notice the two "candidates" lack of criticism about the Fed? That should be a hint.

Thu, 10/25/2012 - 21:56 | 2920423 Pure Evil
Pure Evil's picture

"They" may rule over us, but "they", don't even rule their own bowel movements.

So, who or what rules over whom?

In other words, get a little Campylobacter in their salad and the only throne "they'll" be sitting on is just a trot(s) down the hall.

Sat, 10/27/2012 - 02:52 | 2923514 Clashfan
Clashfan's picture

The Luciferian system is firmly in charge. It always has been.

Fri, 10/26/2012 - 00:56 | 2920694 awakening
awakening's picture

Ron Paul begins and ends that argument from me. I'm not a US citizen/voter but I can see he certainly knows his stuff, whenever it makes it online past the 'official' candidates of your current 'election' 0.o

Fri, 10/26/2012 - 06:34 | 2920912 Flagit
Flagit's picture

just watched the new dc comics movie, justice league:doom.

there are 3 references i found to be of interst. old money moving to the fed to be replaced, a mention of a (one time) government stimlus package for local government, and an fbi assult unit that has NO finess or means of dealing with anything without blowing it up first. and actually the main plot is a lil scary in itself. Savage got it right...do we really need money?

Thu, 10/25/2012 - 21:05 | 2920343 fonzannoon
fonzannoon's picture

Einhorn is wrong in thinking these are "non desperate times". he also makes it seem so simple to stop QE. Thats prob why he steers clear of discussing the massive debts and deficits. Until you clear the nanny state they will need to keep monetizing the debt. I imagine a guy this smart knows this.

Thu, 10/25/2012 - 21:38 | 2920403 Dr. Engali
Dr. Engali's picture

I would think he knows that the fed is in a box we are at the end of the road. He just won't say as much.

Thu, 10/25/2012 - 21:43 | 2920414 fonzannoon
fonzannoon's picture

yeah you are right. in my alternate universe i want him to tell it like it is so we can get the show started. but thats my impatience showing.

Thu, 10/25/2012 - 22:35 | 2920503 TruthInSunshine
TruthInSunshine's picture

I would love to hear one even semi logical explanation as to how the Fed unwinds its current balance sheet in anything remotely approximating an orderly fashion, let alone the balance sheet the Fed will have in about 18 months.

Fri, 10/26/2012 - 03:20 | 2920816 Peter Pan
Peter Pan's picture

What the Fed has is not a balance sheet but an exercise in "Balancing Shit".

Fri, 10/26/2012 - 23:52 | 2923342 FEDbuster
FEDbuster's picture

The FED is the Shit Abyss, a cesspool used by the banksters to dump toxic shit loans into. 

I am just waiting for Jamie Dimon to demand the FED pay him in gold (or silver) in return for the toxic MBS shit he flushes at the FED. At full face value, of course.  As Joe Biden would say, "That Jamie has balls the size of cue balls".

Sat, 10/27/2012 - 07:46 | 2923619 Widowmaker
Widowmaker's picture

The Federal Bank of Treason is the toxic laundry of class devisiveness.  

Failure appointed and fraud approved.

Thu, 10/25/2012 - 22:30 | 2920509 centerline
centerline's picture

They all play this stupid patty cake shit.  Skirting the real issues and the real risks.  Even Ron Paul played this game.  No one yet has really come out said like it really is.  Am I surprised... not really.  The majority of society is not prepared to hear the truth.  Most would reject it immediately and believe the messenger was insane.

 

Fri, 10/26/2012 - 10:30 | 2921394 blunderdog
blunderdog's picture

The problem is, these guys all earn their living playing with other people's money.  Much of their customer-base would not be COMFORTED by a detailed description of the problems facing us today.

It's not a failing on their part that they want to keep their jobs.  No one wants to invest in a hedge fund run by a guy who says, "Well, everything is fucked up and bullshit because of all this Fed shit."

Sat, 10/27/2012 - 11:15 | 2923774 FEDbuster
FEDbuster's picture

centerline, you are exactly right.

Not a single one of the people in Congress are willing to stand up and expose the FED for the bankster controlled criminal enterprise it is.  I think they like the fact that the FED is willing to go along with the deficit spending that both sides love to do.  Every congressman is just there to collect checks and benefits for themselves and their staff, the Country be damned.  The parasite banksters are trying to suck out every last bit of real wealth by whatever means necessary, including destruction of the US economy.

 

"When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes... Money has no motherland; financiers are without patriotism and without decency; their sole object is gain."

- Napoleon Bonaparte, 1815

Thu, 10/25/2012 - 23:54 | 2920629 HardAssets
HardAssets's picture

I don't know about you, but I have no patience for these a**holes who won't tell it like it is. Theyre either stupid, or playing games. Not worth the time it takes to read that kind of 'insight'.

Everyone in America is a moron or a politician.

Do NOT follow this link or you will be banned from the site!