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The Federal Reserve's Seven Point Plan

Tyler Durden's picture




 

Ever wondered whether the Fed actually has/had a plan? Gluskin-Sheff's David Rosenberg attempts to overlay some intelligence to the last seven years to get a grasp for what the venerable institution is actually up to. To wit, the seven stages of Federal Reserve jiggery-pokery... Will the seven become twelve as the addicts take over the asylum? Seven-point plan or seven-year dud?

  1. Attempting to stabilize the mortgage market (August 2006 -January 2007)
  2. Responding to the financial crisis (February -September 2008)
  3. Containing the Great Recession (September 2008 -January 2009)
  4. Saving the banks (January - March 2009)
  5. Responding to the weak recovery/boosting the housing market (March 2009-September 2012)
  6. Debt monetization/wealth effect pursuit (September - December 2012)
  7. Reviving the Phillips Curve — in search of BOTH higher inflation and lower unemployment (December 2012 ... )

Source: Gluskin-Sheff

 

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Wed, 12/19/2012 - 14:47 | 3079626 Dr. Engali
Dr. Engali's picture

Robbing the nation blind....1913 to present.

Wed, 12/19/2012 - 14:52 | 3079642 wisefool
wisefool's picture

The US can either give the wealth to foriegn banks in this pardigm, or give both blood and treasure in a european based conflaguration.

Hoopleheaded americans preffer ingratiation to innauguration. If it aint broke, why fix it?

Wed, 12/19/2012 - 14:55 | 3079663 Pladizow
Pladizow's picture

There's only one point: PRINT!

Wed, 12/19/2012 - 15:07 | 3079696 hedgeless_horseman
hedgeless_horseman's picture

 

 

This dovetails perfectly with Congress' plan for financing government...

  1. The Inflation Tax
  2. Distract citizens with debate over income taxes
  3. MOAR Government Cheese
Wed, 12/19/2012 - 15:07 | 3079711 wisefool
wisefool's picture

As long as we dont have to FDR our war out of a depression, we should be okay.

But incase they try to get as smart as you stated in 1,2, we did not give up when the germans bombed pearl harbor.

Wed, 12/19/2012 - 15:18 | 3079756 AlaricBalth
AlaricBalth's picture

Central Bank intervention has been a complete and total failure. 

Louis Carroll's Red Queen said it best, “It takes all the running you can do, to keep in the same place”.

Wed, 12/19/2012 - 17:31 | 3080248 kaiserhoff
kaiserhoff's picture

Dictatorship of the Tribe.

Wed, 12/19/2012 - 15:52 | 3079913 Silver Bug
Silver Bug's picture

Print, Print, Print, Print, Print, Print, Print. Seems like a pretty horrible plan to me.

 

http://ericsprott.blogspot.ca/

Wed, 12/19/2012 - 15:09 | 3079720 rotagen
rotagen's picture

Alright, if you're gonna put the words "federal reserve" and "plan" on the title I'm gonna use this for toilet paper.  Tit for tat, or is it Scat?

Wed, 12/19/2012 - 15:17 | 3079751 Tortfeasor
Tortfeasor's picture

Federal reserve 7 Point Plan:

1. Underpants

2. ??????

3. ??????

4. ??????

5. ??????

6. ??????

7. PROFIT!

Wed, 12/19/2012 - 18:10 | 3080423 MrBoompi
MrBoompi's picture

The Nation?  Hell, you're setting your sights too small bucko!

Wed, 12/19/2012 - 14:48 | 3079631 stinkhammer
stinkhammer's picture

gangnam style!

Wed, 12/19/2012 - 14:49 | 3079633 ebworthen
ebworthen's picture

Hey, the FED and Treasury spent over $5 Trillion to float equities so they could "make" money selling AIG shares or lose money on GM shares.

Genius?

Wed, 12/19/2012 - 14:51 | 3079641 slaughterer
slaughterer's picture

The FED has one decisive advantage over all players in this market: they can load helicopters with the Benjamins.  If you took that away from them, they would be no better than T-2 or Harbinger or PImco.  

Wed, 12/19/2012 - 14:52 | 3079644 Kreditanstalt
Kreditanstalt's picture

Dream on.   Dream on.   Dream until your dream comes true...

Wed, 12/19/2012 - 14:52 | 3079649 rlouis
rlouis's picture

Typical bankster owned government - first wreck the economy through plunder and then try and fix it, FEMA style.

Wed, 12/19/2012 - 14:56 | 3079665 Squid Vicious
Squid Vicious's picture

correction: Saving the Banks (Jan. 2009 - ?)

Wed, 12/19/2012 - 14:57 | 3079667 Yen Cross
Yen Cross's picture

 I wonder if Z/H is banned at 33 Liberty Street?

Wed, 12/19/2012 - 16:11 | 3080000 NotApplicable
NotApplicable's picture

Doubtful. It isn't like there's ANYONE there with a self-owned soul, let alone an actual conscience.

They likely all read it in order to ensure they're not caught defenseless against any accusations that might stick.

Wed, 12/19/2012 - 14:57 | 3079668 Racer
Racer's picture

I certainly wouldn't use the adjective "venerable" with regards to the FED!

Wed, 12/19/2012 - 16:14 | 3080009 NotApplicable
NotApplicable's picture

Well, you would if you're engaging in whicked-smaht sahcasm.

Wed, 12/19/2012 - 14:57 | 3079669 dbTX
dbTX's picture

The FED; robbing American one tax payer at a time.

Wed, 12/19/2012 - 14:56 | 3079670 LongSoupLine
LongSoupLine's picture

It's a 3-point plan:

 

 

1) Print money

2) give to PD's

3) see #1

 

Fuck you Bernanke, I hope you get hit by a fucking tractor trailer full of fucking welfare cheese you piece of fucking shit.

Wed, 12/19/2012 - 14:56 | 3079671 pragmatic hobo
pragmatic hobo's picture

this reminds of news item couple days ago about some yogurt company that's building a new factory using billions in tax payers dime because the company will hire 500 employees. They had the ceo, a chubby fat fug, of this company paraded through tv segments as if he is some kind of hero for creating all these low paying jobs. If federal reserve has a plan, it is to enslave the public in debt. I do not think the housing bubble was an accident that "no one saw". It has all the ear mark of planned failure.

Wed, 12/19/2012 - 15:05 | 3079697 MillionDollarBoner_
MillionDollarBoner_'s picture

Did you catch the CEO's name?

Was it Tinky Holloway or Cuffy Meigs?

Wed, 12/19/2012 - 15:41 | 3079873 MiltonFriedmans...
MiltonFriedmansNightmare's picture

MF'er Bernanke scored 1590 out of 1600 on his SAT.  He's not stupid...merely the embodiment of pure evil. 

Wed, 12/19/2012 - 16:02 | 3079959 NotApplicable
NotApplicable's picture

Lemme guess, he missed the question, "Is gold money?"

Amirite?

Wed, 12/19/2012 - 15:58 | 3079947 NotApplicable
NotApplicable's picture

Yogurt is vital to national security, duh!

Wed, 12/19/2012 - 14:57 | 3079674 Sandmann
Sandmann's picture
  1. Attempting to stabilize the mortgage market(August 2006 -January 2007)

I like this and wonder why we had to "stabilize" the mortgage market, for example in 2005, the Federal Reserve held approximately 9% of National Debt.

How did Greenspan turn the Y2K Scam into a Dot-Com Disaster requiring Bank Welfare through expansion of Mortgage lending for profitability ?

 

 

Wed, 12/19/2012 - 15:07 | 3079676 MillionDollarBoner_
MillionDollarBoner_'s picture

1) Result = Fail

2) Result = Fail

3) Result = Fail

4) Result = Pass

5) Result = Fail

6) Result = Fail

7) Result = Fail

Sorry, nearly forgot:

8) Tearing the taxpayer a new asshole = Pass

Wed, 12/19/2012 - 14:59 | 3079680 q99x2
q99x2's picture

Printing

Wed, 12/19/2012 - 15:02 | 3079689 Cursive
Cursive's picture

Running for their collective lives (Winter, 2013)

Wed, 12/19/2012 - 17:33 | 3080254 kaiserhoff
kaiserhoff's picture

As the Jews say, from your lips to god's ears.

Wed, 12/19/2012 - 15:06 | 3079703 I Am Not a Copp...
I Am Not a Copper Top's picture

Not to be confused with Mike Damone's Five Point Plan

Wed, 12/19/2012 - 15:06 | 3079705 dirtyfiles
dirtyfiles's picture

build chocolate factories to enslave kids

time is running out

Wed, 12/19/2012 - 15:12 | 3079715 MillionDollarBoner_
MillionDollarBoner_'s picture

Sounds like Belgium, famous for only two things:

1) Chocolates

2) Paedophilia

...and the only invented the first to get to the second...

Edit:

3) Herman von Rumpboy (not sure which category he belongs in...Hmmm?)

Wed, 12/19/2012 - 15:07 | 3079708 Winston Churchill
Winston Churchill's picture

The FedRes has a plan ?

Whocouldhavenode.

Seems to me they making it up as they go along.Bailing out the Titanic

with a sponge.

Wed, 12/19/2012 - 15:09 | 3079719 AynRandFan
AynRandFan's picture

Ultimate step: 100% debt monetization.

Try not to spend your fiat money now!

Wed, 12/19/2012 - 15:19 | 3079762 yogibear
yogibear's picture

1. Print,QE4 

2. Print, QE5

3. Print, QE6

4. Print, QE7

5. Print, QE8 

6. Print, QE9

7. Print, QE10

 

Wed, 12/19/2012 - 15:25 | 3079785 Smuckers
Smuckers's picture

Here's the FED's plan...and how it will fail.

http://www.youtube.com/watch?v=CSK1D3bZhRs

Wed, 12/19/2012 - 15:28 | 3079801 larz
larz's picture

because it is working so well for Japan Yogi (sarc)

Wed, 12/19/2012 - 15:43 | 3079880 hidingfromhelis
hidingfromhelis's picture

  1. Attempting to sustain the unsustainable
  2. Pretending to seek solutions to problems caused by themselves
  3. Claiming that, "Yes, the oceans can be bailed to prevent a tsunami."
  4. Looting
  5. Fiddling whilst Rome burns
  6. Demonstrating the effectiveness of gasoline as a fire suppressant
  7. Justifying how a circle jerk amongst the Fed and banksters benefits the world

Wed, 12/19/2012 - 15:51 | 3079909 Quinvarius
Quinvarius's picture

I don't think it was a plan.  I think it just happened that way.

Wed, 12/19/2012 - 16:06 | 3079977 NotApplicable
NotApplicable's picture

Well, it was a plan. Thing is, it's only ONE step repeated seven times.

Step 1: Respond to crisis du jour by plundering and pillaging while pretending these actions will solve it, which creates the next crisis du jour (see Step 1).

Obviously the First Law of Holes does not apply to government.

Wed, 12/19/2012 - 15:54 | 3079921 The Joker
The Joker's picture

This sounds more like a seven headed beast with seven horns. 

Good luck with number 7 by the way.  I'm not sure that is even part of the plan.  I don't think they want inflation, cause that would screw the interest payment on the debt, correct me if I'm wrong.  I think they are merely trying to maintain a certain level above deflation. 

Lower unemployment rate?  HA HA HA HA HA HA HA HA HA HA HA HA HA!

 

 

Wed, 12/19/2012 - 16:09 | 3079989 NotApplicable
NotApplicable's picture

Interest payments? Those will become negligible, thank ZIRP.

With a twist here, and an MBS purchase there...

Wed, 12/19/2012 - 15:59 | 3079944 alien-IQ
alien-IQ's picture

The Feds 7 point plan was covered in the opening scene of "Reservoir Dogs" with the following line:

Mr. Brown: Dick dick dick dick dick dick dick.

Wed, 12/19/2012 - 17:04 | 3080149 Bansters-in-my-...
Bansters-in-my- feces's picture

The Feds 7 point plan

* LIE

* Cheat

* STEAL

*  Denial

* Deciet

* Military protection

* Steal some more.

 

Dont believe me...?

Watch the ball.

Wed, 12/19/2012 - 17:14 | 3080182 jmeyer
jmeyer's picture

Major inflationary forces peaked in 1981-2 after Volker. Fed fund rates peaked and have been declining along a straight trendline since then. After the tech bubble and crash, which would have happened anyway, Greenspan dropped the Fed Funds rate to near zero the counter a good chance of a ginormous uncontrollable DEFLATION which would have taken everything into a financial and then social black hole.

It would have been the 1930's on steroids and could have done decades of damage.

Bernanke is trying to prevent what may be an unavoidable slow crash anyway. This is an experiment the outcome of which no one can predict because it's a situation that has never happened before.

Wed, 12/19/2012 - 17:22 | 3080207 Bansters-in-my-...
Bansters-in-my- feces's picture

*****RED ALERT...***

 

To ALL silver and gold buyers watch your asses...!!!!

 

Kitco has not been showing lease rates on silver lately,but go have a look at the lease rates...!!!!!

 

NEGATIVE BIG TIME RIGHT NOW...***

negative -0.58 % on the on year.... in silver.....

all other months negative as well

Go have a peak.

A big hit is comming.I will swear........

Gold rates will probably drop big time soon too.

Wed, 12/19/2012 - 17:28 | 3080235 Bansters-in-my-...
Bansters-in-my- feces's picture

******* i JUST WENT BACK TO THE KITCO SITE FOR SILVER AND THEY NOW SHOW NEGATIVE SILVER LEASE RATES ....................... -5.80% Thats NEGATIVE FIVE POINT EIGHT ZERO...****** ..

For one year rate...all others huge negative as well

check it out,and watch your asses.

Wed, 12/19/2012 - 17:29 | 3080236 Bansters-in-my-...
Bansters-in-my- feces's picture

******* i JUST WENT BACK TO THE KITCO SITE FOR SILVER AND THEY NOW SHOW NEGATIVE SILVER LEASE RATES ....................... -5.80% Thats NEGATIVE FIVE POINT EIGHT ZERO...****** ..

For one year rate...all others huge negative as well

check it out,and watch your asses.

Wed, 12/19/2012 - 17:29 | 3080237 Bansters-in-my-...
Bansters-in-my- feces's picture

******* i JUST WENT BACK TO THE KITCO SITE FOR SILVER AND THEY NOW SHOW NEGATIVE SILVER LEASE RATES ....................... -5.80% Thats NEGATIVE FIVE POINT EIGHT ZERO...****** ..

For one year rate...all others huge negative as well

check it out,and watch your asses.

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