Liesman: "The Fed Gets To Print Dollars"; Bullard: "Indeed We Do"

Tyler Durden's picture

Fed mouthpieces Bullard and Lacker are out in force this morning talking the market back from the edge of yesterday's FOMC Minutes and reassuring us that the economy is going to be weak enough for a lot longer to justify the Fed's actions. However, right at the end of Jim Bullard's interview with CNBC's Steve Liesman, we got a glimpse of the reality behind the curtain as the St. Louis Fed president threw Bernanke under the purge-ry perjury bus... Following a discussion of fiscal policy uncertainty and the need to carefully spend what money we have, Liesman jokingly commented to Bullard that it is "Easy for you to say, you have a lot of dollars to spend; you get to print them!" To which the now foot-in-mouth Bullard replied, "Aaahh; indeed we do." This seems a little different from what Bernanke previously told Congress.


Forward to around the 7:45 mark (though the early discussion is worthwhile as Bullard talks the economy down)...


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Pool Shark's picture



Not 'purgery.'

I think what he meant was 'buggery'


DavidC's picture

Err, Tyler, is that perjury or high humour (mix of perjure and purge)?


A_MacLaren's picture

Must be an attempt at high humour.

Anyone who didn't understand Bernanke's repeated statements of "... marking up accounts ..." to CBS 60 Minutes and in other testimony, and Q&A, either:

A) Wasn't paying attention.

B) Lacks an understanding of Fed / Central Bankster speak.

C) Is in denial.

D) Is playing spin the bottle with Ben, Timmah, Liesman, and da rest of da boyz.

Banksters's picture

Great system we have here.


Failing banks get zero percent money, dump shit assetsfor 100 cents on the dollar, give zero percent interest to savers, loan 9 dollars for every dollar deposited at 4- 30 percent, get immunity from prosecution- see collateral consequences of bid rigging, market manipulation,selling shit securities to pension funds, money laundering etc, 

All by design...



HSBC's record $1.9bn fine preferable to prosecution, US authorities insist

Officials defend decision not to prosecute in money-laundering case despite HSBC's 'blatant failure' to implement controls


US authorities defended their decision not to prosecute HSBC for accepting the tainted money of rogue states and drug lords on Tuesday, insisting that a $1.9bn fine for a litany of offences was preferable to the "collateral consequences" of taking the bank to court.




DaveyJones's picture

at least were consistent. Every branch is now equally corrupt and taking orders from the same people.  

The Joker's picture

Oh, NOW they give a shit about collateral damage.  Discretionary.

Banksters's picture

The banksters really do thrive off of our docile civility.

Jerome Lester Horwitz's picture

Laundering money for drug cartels is now legal. Just expect that you will have to give the U.S. a cut of the proceeds. Our government is no different than the mafia and I really do not see much of a difference between the United States government and the drug cartels.

NotApplicable's picture

There is too a difference!


Cheaper suits.

my wag's picture

As Thomas Edison astutely observed:

“If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good, makes the bill good, also. The difference between the bond and the bill is that the bond lets money brokers collect twice the amount of the bond and an additional 20%, whereas the currency pays nobody but those who contribute directly in some useful way.?It is absurd to say that our country can issue $30 million in bonds and not $30 million in currency. Both are promises to pay, but one promise fattens the usurers and the other helps the people.”"

We need MMT. Enough with Banksters and financial manipulators

Matt's picture

I bet if Congress could print money, the Federal budget would instantly exceed $5 trillion for FY2013.

Dr. Engali's picture

Liarman: Do you want congress to cut spending right now? 


Bullard: Fuck no you bald idiot....I'm a banker I want them mother fuckers borrowing and spending more!

insanelysane's picture

Just what the doctor ordered, a good laugh to start the weekend.

Dr. No's picture


"Shut up and sit down, you bald fu*k!"


Kaiser Sousa's picture


and you too LIESman you bald headed, moronic, banker propagandist....

disclaimer: already locked n todays sale price on Silver with my dealer....


Undecided's picture 

NHL Season Close to Falling Off 'Hockey Cliff'

is there a VIX or intrade for that? lol


insanelysane's picture

Congress trying to work out things is a room full of retards.

Hockey owners, agents, and players trying to work things out is a full retard room full of retards.

GrinandBearit's picture

Out of all the pollyanna CNBC bobblehead pundits I'd like to punch in the mouth, it would have to be Steve LIESman.  What a piece of shit this guy is. 

Peter Schiff was a guest the other day and made him look like an idiot... it was great.

Beam Me Up Scotty's picture

I'll second that.  He's such a shine boy for these bankster pricks.

gwar5's picture

I worked with his brother, R**.


It was a very annoying and creepy 3 months. He is even more annoying than Steve is on camera, and is also nonstop... and when patients are not around is cruel to staff and wife. Came to find out he was also being investigated for Medicaid fraud and was self-medicating with IM Demerol. Yikes.

He finally mentioned his brother was Steve Liesman and it all fit. I told him, "No thanks"!

insanelysane's picture

Why take demerol when you can just drink the kool-aid???

Dr. Richard Head's picture

9 out of 10 plebes could care less about Fed printing, as they have yet to consider the correlation between wages and purchasing power when Benny shakes that toner.  Now, add Kim Kardashian's ass into the story and it might turn some heads.

Conax's picture

How'd she grow that ass so big?  It's freakish.  I think I would give her a good spanking til it is all red and quivery!

Matt's picture

There is a rumour that she is wearing padded underwear for all the dress pics. So, while the swim suit shots show a fairly large ass, the extra large ass portrayed in most of the photos are due to padding. Also, they have silcon ass implants now I hear. Alternatively, that research into using stem cells to promote fat cell production to permanently enlarge breasts could quite plausibly be applied to produce large asses.

gwar5's picture

I think treasury ought to stamp out 16 platinum coins 'worth' 1 Trillion each, dated 2013, and just hand them to Bernanke for the reset. Call it good. Then go back to printing our own United States Notes again. AMF to the Fed -- Adios Motherfuckers.

Getting Old Sucks's picture

That might be OK for inhouse shit, but I doubt China is about to accept a what, 5 ounce? platinum coin for their bond redemption. arrow up though.

Beam Me Up Scotty's picture

Why not stamp out 32 of them and we can go on this whole Merry-Go-Round spending spree again??  I've said it before here, if voodoo economics such as this really work, why the hell are ANY of us paying taxes?  Just print it or mint it!!

koncaswatch's picture

A reset to United States Notes will never happen; it would also require a reset of the FED's  "voluntary" income tax scam... never happen.

cougar_w's picture

Assuming Bullard was not actually making a mistake, it suggests to me that The Fed are on the threshhold of making good on a promise Bernanke made in years past, which was that if things got bad enough they could just drop money out of helicopters to boost the economy. In the real world that could be some similar gambit having the desired effect.

If that day is coming then they will start to telegraph the event well ahead of time using exactly this sort of "oh wait did I really say that ha ha silly me" kind of mind-fuck head-fakery.

I'm no expert at any of this of course. I just read between the lines.

optimator's picture

The Bernak will never drop money from helicopters, how would that benefit the banksters?  LOL

Dr. No's picture

Well, technically, it would allow a bunch of people to float higher credit card debt....

Quinvarius's picture

The Fed can't stop.  It is a built in part of our system.  They have been doing it since at least the Korean War is a built in part of the system.  The higher the debt is, the higher level they have to do it at.  All this crisis did was kick us into debt future about 50 years.  Eventually 16 trillion a year will be the deficit, not the debt.  The system doesn't work if the Fed ever stops.  The entire debate on the issue based on complete ignorance.  There is no debate.  This just how our shitbag system is designed.

LeisureSmith's picture

Bullard. I read his name as Bulltard, i think i'm on to something.

lasvegaspersona's picture

from wiki for PURGERY

  1. A part of a sugarhouse where molasses is drained from sugar.
  2. Common misspelling of perjury 
  3. why write an article if you are going to blow its inpact with a mis-spelling in the summary

wretch's picture

I didn't down-arrow you, but I'd like to make it clear that you're a douchebag.

LouisDega's picture

Wow. Another CNBC video.

Disenchanted's picture

Really...if I wanted to watch their bullshit I'd turn on the TV.

fig_newton Trader's picture

If the fed was actually to stop printing.. What would happen? And does this mean they would have to attempt to downsize their balance sheet? Thanks for your help.


busted by the bailout's picture

Good question. I'll be interested to see how others on here answer that. For me I believe it would cause long term interest rates to rise at least 1/2 point on long Ts almost immediately, and then continue higher until the economy falls into recession (within a few short months), which would then cause rates to begin to fall again, but not as low as now unless the Fed stepped back in.

And there would be a serious bear market in stocks (and Ts, of course).  Gold and other commodities would fall also, bringing gas prices down, imo.  Deflation would be likely during the recession.

To stop "printing" would mean to stop buying bonds, but not necessarily reduce their balance sheet.  That would require actual selling of the bonds they currently "own".  That would be an even greater disaster, increasing interest rates more and, as a result, creating an even deeper recession / depression -- depending on how quickly they sold their bonds.

busted by the bailout's picture

Also, the significantly higher T rates would force the federal government to reduce spending as borrowing more and servicing the current debt would quickly become quite painful and maybe even unsustainable. 

The reduced government spending would then exacerbate the recession probably pushing us into a depression, if we weren't already in one. 

Bottom line: The Fed can't stop abruptly.  They will need to cut back slowly as (or if) the economy strengthens enough to allow them to do so.

Pareto's picture

its never gonna happen.  the FED will never "unwind" because it can't unwind.  Telling somebody that they are going to get fucked slowly, doesn't take one's attention away from the fact that that somebody is still going to get fucked.  So, in the end, the FED cannot unwind without tanking the Bond market.  And they are not about to do that given the carry that has gone on on the long end, most of it propping up a superinflated stock market.

So, whats that phrase that somebody always writes on ZH at least 100 times a day?  thats right!  "Gold bitchezzzzzz".

KnightTakesKing's picture

Theoretically speaking, then we could pull out of this if we had the guts to take our pain now, right? Or are we screwed no matter what the fed/Congress does?

busted by the bailout's picture

Yes, but TPTB have decided that level of pain is unacceptable; it could lead to significant civil unrest, violence, and perhaps a lurch to a political extreme, like Germany's election of Hitler in 1933.

Keep in mind that my view is obviously in the minority on ZH.  Most here are Libertarians and/or Austrians, and therefore, oppose nearly everything the government and the Fed do including stimulus spending and a monetary policy that employs fiat currency.

But, imo, we are not necessarily "screwed", a term which I assume most here use to mean that a collapse of our entire financial and/or economic system is inevitable.  In my view there is a small risk of that (maybe a 5% chance), but the most likely scenario is that we "muddle through" with slow growth for another 5 years or so, have moderate inflation (perhaps as high as 10% annually) for a few years, see spending reductions that reduce the deficit (in real terms) in FY14 and beyond, thus allowing the debt to stabilize and eventually become more manageable as the moderate inflation reduces the value of that debt and provides more (inflated) revenue to the government with which to service the debt.

Cthonic's picture

The marginal buyer for US Treasuries would disappear, leading to an abrupt shock to interest rates.  How interest rates actually react would be governed by the fallout of a couple dozen trillion in notional credit derivative positions exploding across the financial landscape.  In other words, stopping printing really isn't a viable option for them.

Seasmoke's picture

WE ARE FUCKED ..................INDEED YOU ARE

Orange Pekoe's picture

Summary: Uhhh...we print whenever we want...uhh...we are indeed assholes.

madcows's picture

Nothing of substance here.  He's angling to be the next FED president.  I trust him as much as I trust Bernanke, Corzine or any politician.

Cognitive Dissonance's picture

Lie, damn lies and statistics, all of which are part of Fed policy.