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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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Fri, 01/04/2013 - 15:02 | 3123109 kliguy38
kliguy38's picture

Just wants to make me puke........blah blah blah........when these chickens come home to roost the chicken shit will bury us all

Fri, 01/04/2013 - 15:19 | 3123207 Pool Shark
Pool Shark's picture



"Indeed, we do."

Many a truth is said in jest...


Fri, 01/04/2013 - 15:25 | 3123245 nope-1004
nope-1004's picture

You mean Bernocchio is full of shit?  Huh..... who woulda thunk that the head of a private cartel (Fed) bailing out it's insolvent members in the name of "economic stimulus" would lie.

Asshats, all of 'em.


Fri, 01/04/2013 - 15:38 | 3123325 economics9698
economics9698's picture

Hang the bankers.

Fri, 01/04/2013 - 17:22 | 3123845 Banksters
Banksters's picture

After a fair trial, of course!   

Fri, 01/04/2013 - 17:30 | 3123872 ZerOhead
ZerOhead's picture

A trial at a County Fair is a tad unorthodox... but what the hey... it's sure to be a crowd pleaser.

Fri, 01/04/2013 - 17:35 | 3123897 walküre
walküre's picture

They will simply play the insanity defense card and possibly get away with it...

What gets me is how they bicker and posture and discuss their "options".

There are no options. They're broke and need to go in to BK. Any system that relies on creating its own ficticious wealth to sustain itself is at the end. When you're creating almost half of what your running budget needs, then you're broke. When you're pretending that the other half you need to operate and which is created from thin air is supposed to have the same nominal value, then you're simply a shyster. Good luck trying to bamboozle the world going forward.

The fuckers are all so pretentious.

Fri, 01/04/2013 - 17:45 | 3123923 Enslavethechild...
EnslavethechildrenforBen's picture

The Fed is a front for the U.S. Military.

The dollar isn't just a weapon, it's their ONLY weapon.

Without the Dollar the U.S. Military would be nonexistant.

Fri, 01/04/2013 - 17:53 | 3123954 The Juggernaut
The Juggernaut's picture

See!  Its all perception of the dollar not what its real shitty value is.  Wait till the Fed unloads all its Treasuries.  End Game because no one will want it.  Unless they just transfer it to a GSE.  Then you know the world is fucked.

Fri, 01/04/2013 - 18:18 | 3124027 NotApplicable
NotApplicable's picture

Unload? Why would they ever do that?

One does not construct such elaborate traps merely to set the prey free. As long as the military backs the validity of the Fed's claim on assets, there is but one path.


Fri, 01/04/2013 - 18:57 | 3124090 Michaelwiseguy
Michaelwiseguy's picture

DHS Buys 200,000 More Rounds of Ammunition

While the Obama administration sets out to eviscerate the gun rights of American citizens in the aftermath of Sandy Hook, earlier this week it was announced that the Department of Homeland Security has awarded a company a contract worth over $45,000 dollars to provide the DHS with 200,000 more rounds of bullets.

This new purchase adds to the staggering figure of 1.6 billion rounds of ammunition already secured by the DHS over the last 9 months alone.

Democide: How many people will government kill this year?

In the 20th century, the greatest unnatural killer of human beings was not plague, cancer, or accidents. It was democide: death by government.

Governments murdered more people in the last 100-plus years than any other killer in existence on record. Statistics vary between 250 and 300 million dead depending on the source, but these counts typically only include civilian casualties and are underestimated. With military deaths added, the numbers soar much, much higher.

Fri, 01/04/2013 - 19:52 | 3124202 knukles
knukles's picture

"Indeed we do" is another incantation of "yes we can".

yo bitchez

Sat, 01/05/2013 - 11:25 | 3125117 francis_sawyer
Fri, 01/04/2013 - 17:53 | 3123959 ZerOhead
ZerOhead's picture

To be completely honest the killer drones get me a touch nervous at times...

Fri, 01/04/2013 - 18:28 | 3124051 unrulian
unrulian's picture

no need to worry....if your house is targetted for your ZH posts... it will be quick

Fri, 01/04/2013 - 21:25 | 3124371 Matt
Matt's picture

On the up side, the government will give you 40 pounds of silver, express delivered right into your living room.

Sat, 01/05/2013 - 05:06 | 3124854 awakening
awakening's picture

Win if it's a dud, bonus points if you were not home at the time (remote net con from work/elsewhere)  :P

Fri, 01/04/2013 - 20:06 | 3124231 grid-b-gone
grid-b-gone's picture

Flyby now flybye

Fri, 01/04/2013 - 20:01 | 3124218 grid-b-gone
grid-b-gone's picture

They don't need the military. All they need is a court ruling stating that senior debt status transfers to a derivative when it is created. Why else would the large banks hold onto the vast majority of derivatives and resist a public trading market for them if the instruments have as little intrinsic value as most of us assume?

Just a tool to get around capitalization rules? Maybe, but I'm not betting my house on it.

The average person who believes they will be paying back their debt with inflated dollars once the Fed is successful at igniting inflation, may wish they had owned their stuff before the reset.

Own it if you want to keep it.


Fri, 01/04/2013 - 19:58 | 3124214 Bunga Bunga
Bunga Bunga's picture

After a fair trial hanging would be far from fair punishment.

Fri, 01/04/2013 - 17:31 | 3123877 smlbizman
smlbizman's picture

who dah a thunk george costanza, lord of the idiots liesman would blow this thing up...

Fri, 01/04/2013 - 20:03 | 3124223 Darth Rayne
Darth Rayne's picture

To be fair to the bankers, they can't create money without us promising to pay it back with interest. Without our signature there is no money.


To be fair to the politicians, you didn't vote Ron Paul in so you must like the crap the others feed you.


300 million Americans with more than 300 million guns. Who is gonna argue with you?


wake up and grow a pair



Fri, 01/04/2013 - 15:39 | 3123335 Michaelwiseguy
Michaelwiseguy's picture

And this is why the Federal Reserve Corporation and their employees are less trustworthy to manage US monetary policy than the American peoples elected congress critters. Going back to a Gold standard will further cut down on the miss-management of our nations money supply.

Fri, 01/04/2013 - 16:28 | 3123609 pods
pods's picture

The Federal Reserve corporation serves many purposes.  One, to backstop banks who are over leveraged. Two, it allows unlimited deficit spending to be undertaken by a government to keep the debt moving upwards.

A gold standard will fail every time if we allow fractional reserve lending.  Even if the government "pegs" a dollar to gold it merely means that it will have to devalue it some time in the future.

If we were to think in terms of weight of metal, then we could start to get somewhere.

Like a TV that costs 8 grams of gold.  So you pull out 8 1 gram gold coins, etc.


Fri, 01/04/2013 - 16:32 | 3123625 walküre
walküre's picture

Print away! It's all bullshit from here on out.

What happens when the Fed prints and nobody cares?

Got gold?

The biggest all out game changer of recent history is upon us! For many it is apocalyptic, for some it is a relief.

Get 'er done. Print, print, print all you want! The more and the faster, the better! Hallelujah!

Fri, 01/04/2013 - 17:30 | 3123873 fuu
fuu's picture

If I had a printer
I'd print in the morning
I'd print in the evening
All over this land
I'd print out Dollars
I'd print out Euros
I'd print out bonds for all my fat cats
All over this land

If I had a chopper
I'd drop cash in the morning
I'd drop cash in the evening
All over this land
I'd drop out Dollars
I'd ring out Euros
I'd ring out bonds for all my fat cats
All over this land

If I had an algo
I'd front run it in the morning
I'd front run in the evening
All over this land
I'd front run Dollars
I'd front run Euros
I'd front run all the bonds for my fat cats
All over this land

Well I've got a printer
And I've got a chopper
And I've got an algo
All over this land
It's the printer of Bernanke
It's the chopper of Timmah
It's the algo of William Dudley and all his fat cats
All over this land

Fri, 01/04/2013 - 17:57 | 3123970 francis_sawyer
francis_sawyer's picture

joo confetti... [all over this land]

Sat, 01/05/2013 - 01:47 | 3124730 geekgrrl
geekgrrl's picture

That's awesome! I'd love to see a video of someone performing this song.

Next best thing: the basis for the melody ... from Trini Lopez.

Fri, 01/04/2013 - 17:35 | 3123895 ZerOhead
ZerOhead's picture

It is all bullshit... but don't expect them NOT to attempt to make a killing off of the inevitable collapse.

The CEO of the Federal Reserve Banking Cartel will be rewarded precisely the same as all other corporate CEO's...

Namely by maximizing shareholder net worth.

(Yes I am serious)

Fri, 01/04/2013 - 17:38 | 3123904 walküre
walküre's picture

They can "attempt" as you so succinctly put it. When it all comes unglued, their hubris and pretention is not going to earn them any medals.

Fri, 01/04/2013 - 17:50 | 3123922 ZerOhead
ZerOhead's picture

To hell with the medals... just look at this payola AND where it came from...

Bill Clinton after signing the Financial Securities Modernization Act for Wall Street and leaving office in 2001 ($31 MM)


Tony Blair hooking up a convicted South Korean criminal with an Iraqi Oilfield contract... thank god he had marketable connections in that war that was NOT about oil... (Est $20MM)

Fri, 01/04/2013 - 18:04 | 3123993 walküre
walküre's picture

Modern day bribery. These "elected" officials are working their own gravy train the minute they're "elected".

Nothing new unfortunately. Why is Tony Blair not on trial? Because he knows too much.

Fri, 01/04/2013 - 18:45 | 3124085 silverserfer
silverserfer's picture

only problem is the bankers have accumulated most of the gold for cash. you cant have a gold monetary system when its all concentrated by banker fucks. the masses have been fooled and fleeced. Its unfortunate gold concentrates in the hands of the powerful and does not circulate freely among the masses like we would all like in a gold standard.

Fri, 01/04/2013 - 17:30 | 3123874 chubbar
chubbar's picture

Everyone who would like to tell Congress to lay off the gun ban routine, please follow this link to the "take action" center and there is an already filled out email if you fill in your area code and personal info. Please inundate these assholes trying to circumvent the constitution!

Fri, 01/04/2013 - 18:24 | 3124046 NotApplicable
NotApplicable's picture

Fuck Congress!

Anybody who would go begging to criminals for permission to live deserves the hell it creates. Why do you have to be so damn evil? All you're doing is FURTHER empowering them.

Have you no decency?

Sat, 01/05/2013 - 11:36 | 3123950 El Oregonian
El Oregonian's picture

Yes it's true, every ass gets wiped when you have endless printed toilet paper... But, you won't be able to buy the food to put in your mouth to create the shit that your ass will need to wipe itself because you'll not be able to afford it.

Fri, 01/04/2013 - 20:02 | 3124221 stocktivity
stocktivity's picture

So what did he say that we didn't already know....blah, blah, blah...It's all Bullshit!

Fri, 01/04/2013 - 15:53 | 3123362 Lets_Eat_Ben
Lets_Eat_Ben's picture

I'm OK with CNBC making my news (ZH). I just don't want them making up my news.

Fri, 01/04/2013 - 20:31 | 3124280 tom a taxpayer
tom a taxpayer's picture

Breaking News: Bullard hospitalized after Liesman interview.

San Diego: Just minutes after an interview with Steve Liesman, St Louis Fed President Bullard was rushed to La Jolla Hospital for the Filthy Rich suffering from a bowel obstruction. After a two hour surgery, Bullard is in the recovery room and as comfortable can be expect after removal of the anal obstruction: Steve Liesman's nose. 

Chief Surgeon Dr. Noh Fee Noh See said he tried many conventional and unconventional surgical procedures but could not dislodge Liesman's nose from Bullard's behind. At the last minute Bullard was saved by a Tweet from Treasury Secretary Geithner to Leisman, promising Liesman an exclusive interview with Geithner…something about a bank holiday. Immediately, Leisman's nose popped out of Bullard behind like a champagne cork. 

Fri, 01/04/2013 - 17:46 | 3123931 Stock Tips Inve...
Stock Tips Investment's picture

The size of the U.S. debt is large enough to support an increase in interest rates. Even when the economy is reactivated, it will take time before it can successfully withstand an increase in interest rate. They can say many things on TV, but in reality, we will see rates low for much longer.

Fri, 01/04/2013 - 17:57 | 3123969 Snakeeyes
Snakeeyes's picture

Bullard: Sure, we will just print trillion dollar coins for the elites. The rest can eat cake.

Fri, 01/04/2013 - 17:58 | 3123973 buzzsaw99
buzzsaw99's picture

the bernank sez: IXNAY on the INTPRAY ALKTAY!!

Fri, 01/04/2013 - 15:04 | 3123120 HoofHearted
HoofHearted's picture

The next line from Bullard, if he gets the chance: "And we have a cool fleet of helicopters, too."

Fri, 01/04/2013 - 15:11 | 3123154 ParkAveFlasher
ParkAveFlasher's picture


Fri, 01/04/2013 - 15:41 | 3123351 Meatballs
Meatballs's picture

'ASSCLOWNS' One word or two? Hmmmm.

Fri, 01/04/2013 - 15:42 | 3123352 Meatballs
Meatballs's picture

Auto dupe. Sorry.

Fri, 01/04/2013 - 15:55 | 3123436 flacon
flacon's picture

One dupe or two? ;) (j/k)

Fri, 01/04/2013 - 15:04 | 3123122 jayman21
jayman21's picture

End the FED

Fri, 01/04/2013 - 15:04 | 3123124 Conax
Conax's picture

My spelling detector went off on 'purgery' bus- then I realized you might be doing a word play on the old commie purges.

I saw what you did there..

Fri, 01/04/2013 - 15:07 | 3123133 DavidC
DavidC's picture

Saw yours appear just after my post sent!


Fri, 01/04/2013 - 15:22 | 3123232 Pool Shark
Pool Shark's picture



Not 'purgery.'

I think what he meant was 'buggery'


Fri, 01/04/2013 - 15:05 | 3123129 DavidC
DavidC's picture

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


Fri, 01/04/2013 - 17:40 | 3123910 A_MacLaren
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.

Fri, 01/04/2013 - 15:14 | 3123134 Banksters
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.




Fri, 01/04/2013 - 15:41 | 3123346 DaveyJones
DaveyJones's picture

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

Fri, 01/04/2013 - 15:58 | 3123450 The Joker
The Joker's picture

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

Fri, 01/04/2013 - 17:41 | 3123912 Banksters
Banksters's picture

The banksters really do thrive off of our docile civility.

Fri, 01/04/2013 - 17:59 | 3123977 Jerome Lester H...
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.

Fri, 01/04/2013 - 18:27 | 3124050 NotApplicable
NotApplicable's picture

There is too a difference!


Cheaper suits.

Fri, 01/04/2013 - 20:07 | 3124236 my wag
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

Fri, 01/04/2013 - 21:30 | 3124383 Matt
Matt's picture

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

Fri, 01/04/2013 - 15:08 | 3123142 Dr. Engali
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!

Fri, 01/04/2013 - 15:43 | 3123364 insanelysane
insanelysane's picture

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

Fri, 01/04/2013 - 18:15 | 3124019 Dr. No
Dr. No's picture


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


Fri, 01/04/2013 - 15:09 | 3123143 AldoHux_IV
AldoHux_IV's picture

Hang em all

Fri, 01/04/2013 - 15:09 | 3123145 Kaiser Sousa
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....


Fri, 01/04/2013 - 15:09 | 3123150 Undecided
Undecided's picture 

NHL Season Close to Falling Off 'Hockey Cliff'

is there a VIX or intrade for that? lol


Fri, 01/04/2013 - 15:45 | 3123378 insanelysane
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.

Fri, 01/04/2013 - 15:11 | 3123155 GrinandBearit
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.

Fri, 01/04/2013 - 15:39 | 3123334 Beam Me Up Scotty
Beam Me Up Scotty's picture

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

Fri, 01/04/2013 - 15:40 | 3123340 gwar5
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"!

Fri, 01/04/2013 - 15:47 | 3123384 insanelysane
insanelysane's picture

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

Fri, 01/04/2013 - 15:11 | 3123156 Dr. Richard Head
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.

Fri, 01/04/2013 - 15:13 | 3123166 Conax
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!

Sat, 01/05/2013 - 02:13 | 3124741 Matt
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.

Fri, 01/04/2013 - 15:12 | 3123162 gwar5
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.

Fri, 01/04/2013 - 15:28 | 3123266 Getting Old Sucks
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.

Fri, 01/04/2013 - 15:41 | 3123357 Beam Me Up Scotty
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!!

Fri, 01/04/2013 - 15:59 | 3123460 koncaswatch
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.

Fri, 01/04/2013 - 15:14 | 3123169 cougar_w
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.

Fri, 01/04/2013 - 16:24 | 3123588 optimator
optimator's picture

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

Fri, 01/04/2013 - 18:16 | 3124025 Dr. No
Dr. No's picture

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

Fri, 01/04/2013 - 15:16 | 3123183 Quinvarius
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.

Fri, 01/04/2013 - 15:16 | 3123184 LeisureSmith
LeisureSmith's picture

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

Fri, 01/04/2013 - 15:16 | 3123187 lasvegaspersona
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

Fri, 01/04/2013 - 15:33 | 3123297 Conax
Conax's picture



Fri, 01/04/2013 - 15:38 | 3123327 wretch
wretch's picture

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

Fri, 01/04/2013 - 15:20 | 3123204 LouisDega
LouisDega's picture

Wow. Another CNBC video.

Fri, 01/04/2013 - 15:48 | 3123391 Disenchanted
Disenchanted's picture

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

Fri, 01/04/2013 - 15:21 | 3123224 fig_newton Trader
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.


Fri, 01/04/2013 - 16:18 | 3123368 busted by the b...
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.

Fri, 01/04/2013 - 16:20 | 3123507 busted by the b...
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.

Fri, 01/04/2013 - 18:15 | 3124023 Pareto
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".

Fri, 01/04/2013 - 18:18 | 3124030 KnightTakesKing
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?

Sat, 01/05/2013 - 13:52 | 3125340 busted by the b...
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.

Fri, 01/04/2013 - 16:55 | 3123712 Cthonic
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.

Fri, 01/04/2013 - 15:22 | 3123234 Seasmoke
Seasmoke's picture

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

Fri, 01/04/2013 - 15:23 | 3123235 Orange Pekoe
Orange Pekoe's picture

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

Fri, 01/04/2013 - 15:24 | 3123241 madcows
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.

Fri, 01/04/2013 - 15:28 | 3123269 Cognitive Dissonance
Cognitive Dissonance's picture

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

Fri, 01/04/2013 - 15:28 | 3123270 bnbdnb
bnbdnb's picture


Fri, 01/04/2013 - 15:31 | 3123283 Slightly Insane
Slightly Insane's picture

USE Fiat Currency, printed at whim to purchase every single hard asset that is perceived to be "under water", so that when the Tide goes out, they own everything at depressed value Fiat dollars.  If only I could get a few trillion dollar credit line too .... I could just buy up everything on the horizon, eventually, I would own EVERYTHING.  Real-estate would be my main target.

Fri, 01/04/2013 - 19:37 | 3124165 ToNYC
ToNYC's picture

"Real-estate would be my main target."


Why would the King want to own real estate when it can extract real estate taxes on a working unit so located and blessed to pay a cut of the works?

Fri, 01/04/2013 - 15:34 | 3123304 madcows
madcows's picture

The government borrows from the FED.  That's credit, not money printing.  The government doesn't have money, it has debt.

The FED does print money.  Your wallet holds federal reserve notes.  Redeemable for absolutely nothing except what the next guy is willing to accept it for.

  The more inexplicable thing though is that the FED loans the government all sorts of imaginary digital money, credit.  Turbotaxcheat timmy goes to the FED, borrows some 0's and 1's and distributes it to everyone on the government dole.  It's not real money.  it's nothing.  it comes from nowhere.  The FED gives the government imaginary money backed by absolutely nothing.  That's not printing, it's magic.  They made money out of nothing.  They are God.  Benny breathes on the computer and boom the imaginary money has life.  He speaks and it becomes real like the stars and the earth and the animals in the sea.  Pretty soon he'll take a rib from me and create a suitable mate... like a government EBT card.

Fri, 01/04/2013 - 15:36 | 3123312 Glass Seagull
Glass Seagull's picture



[Bullard climbs off the back of his human serf-board and says]

"Ahhhh; indeed we do."

Fri, 01/04/2013 - 15:36 | 3123314 yogibear
yogibear's picture

Bullard was proud the Fed can print.

It means it won't anytime soon!

It's still, print, print, print.


Fri, 01/04/2013 - 15:36 | 3123316 Fred Hayek
Fred Hayek's picture

Everything the Fed or its minions says publicly is spin.  Everything. 

Everything spouted is calculated to try to get some of the unavoidable effects of their insane money printing while avoiding others. 

Between the lines is a constant message, "Oh please rise equities market!  But not you, too, commodities!  Please!"

Fri, 01/04/2013 - 15:39 | 3123336 TerminalDebt
TerminalDebt's picture

It's balance sheet expansion, not printing

Benny takes the balance sheet to the photo copier and press enlarge, and boom, 2 more trillion dollars appear.

Fri, 01/04/2013 - 15:40 | 3123337 orangegeek
orangegeek's picture

I smell riots coming very soon.

Fri, 01/04/2013 - 15:44 | 3123359 TerminalDebt
TerminalDebt's picture

nobody has the balls to start a riot anymore


Who's gonna riot? the 50M people collecting from the government? or the 50M middle class living in thei McMansion?

Fri, 01/04/2013 - 15:46 | 3123379 yogibear
yogibear's picture

The government knows as long as you have the media propaganda and keep them fed they will riot.

Fri, 01/04/2013 - 15:41 | 3123342 LawsofPhysics
LawsofPhysics's picture

Tylers of the world - cue the "Reserve Currency Does Not Last Forever"  chart!!!!

Fri, 01/04/2013 - 17:46 | 3123937 cougar_w
cougar_w's picture

Ah yes, the "end of empires" chart. It's good to chill the marrow once in a while.

The Romans in 470AD didn't know they were entering something that would later be called The Dark Ages, and I wonder what they would have had to say about the matter if they had known? And since we've already had The MIddle Ages I guess our period of recovery will be called The Late Middle Ages? Or maybe we'll demand special treatment (as usual) and we'll rename the period of Western history from 800AD to now as the Late Dark Ages so that we can proclaim The Middle Ages to have started around 2020? Oh and see here what happens next, that means we get to have another lovely Renaissance in about 400 years down the road.

However I really want to suggest to any future historians reading ZH 400 years from now to just stop there. We don't need everything you think comes after, like the Enlightenment or Industrialization or Post-Modern or Internet Age. And when you get to that whole Facebook Age thing, really just run the other way.

Been there. Wasn't worth it.

Do enjoy the mead and wassail though. Can't have a real Middle Ages without those.

Fri, 01/04/2013 - 15:45 | 3123372 The worst trader
The worst trader's picture

None of this matters.............It's all under control. Just keep sleeping and more zanax please.

Fri, 01/04/2013 - 15:57 | 3123447 polo007
polo007's picture

The creation of money

It would seem natural, that money is created by the State, and in fact most Central Banks seem to be owned by the State and run by it. I say "seem" because, to all intents and purposes, it is an apparency. They are almost constituting a "fourth power" in addition to the three legally constituted and well known "traditional" powers, legislative, executive and judicial.

When the State needs money, it does not order the Central Bank to credit some money to the treasury’s account. The State has only two ways to obtain money. One is taxation of it's citizens, the other is borrowing from the banks.

When the Central Bank issues money, this is done in the form of a loan. The State has to borrow this money, and must promise to repay it, with interest.

The same is true of course for a private person who needs money borrowing from a commercial bank. The bank is happy to loan, as long as you can show you have security, and promise to repay with interest.

How can the banks "create" money? That is a good question. Is it not the State's printing office that prints all the banknotes?

Banknotes, when they are printed, are considered the property of the Central Bank. They are not given to the State to spend, but are brought into circulation against a corresponding debt. Anyone wanting some of those notes to spend, has to "buy" them by giving up some of their credit. And in any case, most of the money in circulation (more than 90%) is not banknotes but "credit".

When you go to your bank asking for money, the loan you get is created right there in your bank. The "money" consists of figures on your bank account, and it can be spent writing checks, giving an order to transfer or drawing the cash. Banks only have to have a small percentage of their loaned-out money actually available. The rest can be paid out just by moving some figures from one account to another. The important thing to know: Money is created just by inserting some numbers into a computer.

In practice, it works like this: For every 10.000 a bank gives out as loans, 1000 or 2000 have to be deposited at the central bank. That means, if a bank collects 100.000 in deposits, it could keep 10.000 for liquid cash, put 90.000 into deposit with the central bank, and it is then allowed to create 900.000 of fresh money just by writing the figures on someone’s accounts!

In the case of the government needing money to spend, the procedure is slightly different, but the result is the same. The government has to issue papers that promise interest and repayment. Those papers are "bought" by the banks, who "sell" them to their wealthy clients, or who may also keep them, and the government gets credited an equivalent sum of money.

The irony here is that the government, who should by rights be the issuing authority of the money that circulates in the country, has to borrow the money from privates (through the bank) and that is has to pay interest for this.

Now we start to see why the government never has money, and why much of our taxes go "off the top" of the budget, towards debt service.

Fri, 01/04/2013 - 16:00 | 3123467 polo007
polo007's picture

Let’s review. In their shortsighted greed and hubris, in their pursuit of extraordinary personal wealth, a small group of exceptionally wealthy and politically well-connected bankers took enormous and obvious risks that nearly destroyed the global financial system. In response, two separate bailouts took place. One was the congressional sideshow that gathered all the media attention, and the other was the real deal, with over $12,000 per household in money created and another $150,000 per household committed to be created if necessary.

The $12,000 per household was paid in cash, freely spendable cash. Cash that could take a big chunk out of the value of the US dollar if it got out into general circulation, both directly and via the “multiplier effect”. So the Fed began paying off the bankers not to spend the massive amount of cash that had been created and given to them under highly favorable terms.

One could liken this situation to that of a loaded revolver (a six-shooter to continue the corral theme). In essence, the Federal Reserve dealt with those mischievous risk-takers at the banks who had nearly destroyed the financial world by handing to them a loaded revolver that was pressed against the heads of all the nation's savers, investors and retirees. A revolver that could destroy most of the value of your personal savings. Then the Fed said "Please don't pull the trigger! We will create however much money is needed and pay it into your personal bonus pools, just so you won't pull the trigger on that revolver we just handed to you."

This is essential to understand, because what does paying higher rates than the banks could otherwise get on excess balances and reverse repos really mean? It means higher profits and bonuses. Ultimately, the Fed’s official inflation containment strategy is to always be able to offer banks a better deal than any private investment alternative. A better deal means the bank taking in more income, which means the banking executives involved get bigger bonuses. The source of funding for this ability to always pay more than the private markets is the ability to directly create a limitless amount of money. At this point it is a very low interest rate, but the rate can go as high as needed, when inflationary pressures build.

This may sound outrageous, but all it really does is demonstrate the true nature of the Federal Reserve. It is owned by the banks. It is run by the banks. As we are seeing demonstrated right now, its job in times of crisis is to manage the money supply for the benefit of the banks, regardless of the harm inflicted on the rest of the nation.

Fri, 01/04/2013 - 18:04 | 3123992 Pareto
Pareto's picture

nobody benefits from the FED except the banks.



Fri, 01/04/2013 - 16:14 | 3123537 optimator
optimator's picture

PPT is eight minutes early today, means they are really going to bang the close.

Fri, 01/04/2013 - 16:27 | 3123599 Sutton
Sutton's picture

On weekly and monthly charts and measures, 10s and 30s look awful(and conversely TNX looks great).

Fri, 01/04/2013 - 16:29 | 3123613 WizDumb
WizDumb's picture

"..Starting right about..Now.."

Fri, 01/04/2013 - 16:31 | 3123620 wisefool
wisefool's picture

I dont have highspeed anymore, so I can not watch the video But Bullard is either an anti-Keynsian, reformed-Keynsian, or a tomato can. In any case, he has to conform if they are going let him become a voting member. Just because you tell the truth does not mean you think it is correct.

Death of a Theory. (Keynsianism) Bullard STL FED. 2012-01-12.

Fri, 01/04/2013 - 16:31 | 3123623 Titus Flavius C...
Titus Flavius Caesar Vespasianus Augustus's picture

the whole monetary system is a scheme to exchange paper for work.


which transfers "wealth" from labor {productive work} to capital.


Now, I'm all for people being able to make money off their money by getting reasonable return or interest... but when banks can lend it into existence without any work at all - it's axiomatic that it is a thefot of productive value.


The issuing power should be restored to The People, to whom it properly belongs.  The US government should "nationalize" the Fed, and lend money to banks at interest, thus inverting the scheme.


But look what they did to Ron Paul.  We're riding this thing to the bottom.

Fri, 01/04/2013 - 16:32 | 3123624 graspAU
graspAU's picture

"We can create money by fiat (decree). Our checkbook doesn't have a ledger. So you write out the check, it's (money/currency) just transmogrified out of thin air, which is a nice checkbook to have."

- Jerry Nelson, Federal Reserve Bank of Chicago, Public Relations. May 14, 2008.

And here is the full discussion with Jerry. Quite the speaker:

Updated Video Links as of 2012: part 1

Part 2

Fri, 01/04/2013 - 17:30 | 3123863 Banksters
Banksters's picture


ECB wins case to conceal Greek debt secrets Secret documents revealing the extent of the European Central Bank’s knowledge of Greece’s concealed debt issues prior to its €240bn (£195bn) tax-payer funded rescue have been withheld in a "disturbing" EU court ruling.



Gee, crooks are refusing to disclose their paper trail... 

Economic warfare, so easy a child could do it.



Fri, 01/04/2013 - 17:30 | 3123867 Yen Cross
Yen Cross's picture

 I'm, surprised Liesman didn't get down on his knees and polish Bullards knob. Those two are made for each other.

  Bullard sucks Bernankes cock and "snowballs" the load into Liesmans mouth for {dissemination} all over CNBS cameras.

Fri, 01/04/2013 - 17:33 | 3123887 debtor of last ...
debtor of last resort's picture

Inflation exports overkill WILL come home. To roost or whatever. The croupier will know before you do. Faites vos jeux mes amis.

Fri, 01/04/2013 - 17:39 | 3123907 q99x2
q99x2's picture

We have prisons for those conspiring to commit treason. Indeed we do.

Fri, 01/04/2013 - 17:42 | 3123919 Investor Wizard
Investor Wizard's picture

So much printing. I should have listened to my parents and opened an ink supply business.

Fri, 01/04/2013 - 17:45 | 3123930 unplugged
unplugged's picture

Hey Bulltard, can I print my own money too?  You aren't above the law are you?  So its all like, legal, right?  Its cool then, yeah?

Fri, 01/04/2013 - 18:09 | 3124008 The Fonz...befo...
The Fonz...before shark jump's picture

Steve Liesman is a pimp for the fed..

Man is his name apt... Lies man

You can't spell Liesman without the LIES, man!

The fed couldn't have found a better mouthpiece... I guess mr. Bulschiter wasn't available

Fri, 01/04/2013 - 18:24 | 3124045 NaiLib
NaiLib's picture

Whatever you say now does not matter. Quite soon now we will se headlines like: "YOu _have_ to buy and own equities, that is the _only_ way you can make and preserve your capital"

When you see that, you are about 3 - 6 months from the mother of all declines.

Fri, 01/04/2013 - 18:29 | 3124052 q99x2
q99x2's picture

Didn't have time to watch it. Everytime I see Leisman I have to take a dump and I'm never sure how long that will take.

Fri, 01/04/2013 - 19:28 | 3124074 falak pema
falak pema's picture

the great american mystification unravelling is awesome to see. 

We get the impression that more and more segments of the US elite are now seeing openly, as opposed to feeling it secretively, that the immense divide between the proponents of the "status quo" oligarchy and the encroaching apprehension of reality is not tilting in favour of that hopium ball park of our scions of USA, USA. 

WHere do we go from here?

In fact it is the hard reality of the WS financial world which will show the way to the acceptance of this new reality, which ever it is : 

1° FED saying QE from now on is kaput.

2° Congress saying we are in the shits to meet the entitlements cum defense spending conundrum. Remember we have two months to get to this tipping point.

3° Margin squeeze of WS scions start screwing up the P/E of all these levitated assets big time.

4° Some external event brings crisis and financial stress further to breaking point.

5° Alternatively, USA, USA proving that shale oil/gas energy USA is now blowing the economy to self sustainance, as job creation and bringing back industry bigtime...will save America's future by 2017.

All this in a scenario of 2013 frought with electoral uncertainty in Germany as elsewhere...

Its a scenario where either S&P to 1650 is a very risky bet in status quo hopium mode...or its the contrary, as the supercycle now hots up bigtime. 

Place your bets ! 


Fri, 01/04/2013 - 18:49 | 3124089 Titus Flavius C...
Titus Flavius Caesar Vespasianus Augustus's picture



The coin thing isn't going to happen - this weekend, it's all about Chuck Hagel's nomination and the batshit crazy smear campaign that the neocons are going to unleash....  silly bitches.




I wonder if Obama is borrowing someone's balls...   we can support Israel, but the thing is, those who would American blood and treasure to defend Israel no matter what, and fight another needless, barbarous war on the rumor of what Iran might possibly try to one day do [but which we and Israel have done] is not only bad thinking - it's treasonous.


Bil Kristol and his 'Emergency Committee' are warmly invited to suck a bag of dicks and fuck off to Israel.

Fri, 01/04/2013 - 19:19 | 3124116 ToNYC
ToNYC's picture

Black Swan event of FED Fiasco is the offspring of the inconvienient Truth always shunned, the 800 lb ZIRP gorilla in the room.

How could they not know? they will all say.

Fri, 01/04/2013 - 20:16 | 3124249 cranky-old-geezer
cranky-old-geezer's picture



Bullard:  Indeed we do, we can loot you stupid sheep whenever we want, all we gotta do is turn on our printing press, hell we don't even have to do that, a few computer keystrokes will do it.

Fri, 01/04/2013 - 20:27 | 3124274 Manipuflation
Manipuflation's picture

Has anyone tried to renew an expidited passport lately?

(there will be a point at the end of this post)

I did today as mine expired in December.  This is all about two fucked up "states":  The UNtied States and Russia.  I was hoping for a Simon Black "travel the world on daddy's money guest post" but I hope you will all tolerate my indignations.  I will be brief.  I am trying to establish double citizenship for my children; US and Russia.  Do not confuse double citizenship with dual citizenship as they are not the same.

The nearest Russian consulate to me is in Seattle, we are in MN and you can't do this shit by mail.  Apparently the Russkie consulate travels from city to city from time to time to do some consulate "work" but they only gve 14 days advance notice.  They will be in Minneapolis on Jan 18 and for some fucked up reason I need a valid U.S. passport in order to sign off on my kids becoming Russian citizens.(only when they are in Russia though, check the laws)

So how do you get a US passport in just a few days?  I called the Department of STATISTS and explained the situation in detail.  After I was finished, the guy asked "So what country are you traveling to then and when?"  I am not going anywhere right now I explained again.  Turns out there is a way to get the new passport but now I have to appear, in person, before the almighty state as to why I need a passport expidited even though I am not going to be travelling abroad in the next two weeks.  The concept of double citizenship is not encouraged by the STATIST DEPT and one reason is tax laws.  So now I have an appointment with the U.S. on Monday at High Noon that took me 45 minutes to get set up via their re-re-re-redundant automated telephone system.  This just ought to be the thrill of my life.

It gets even better though:  It turns out that I also have to meet with the Russians in person.  What the fuck is this?  Reykjavík?  I had to inquire as to where this meeting would take place.  Anyone want to take a guess?  US Bank in Minneapolis

I think many of you can understand why my blood is boiling and how I have suddenly developed a nervous twitch in my neck.

I think I will wear my threadworn Ron Paul 2008 shirt to that meeting.  I am measuring my words carefully now for those encounters with the two states.  All this for me not to go anywhere.  And the cost of it all besides my nerves?  Get out your checkbook.

Thank you for listening if you did and I apologize for how fucked up we have let this world become as a result of central banking.

Fri, 01/04/2013 - 22:03 | 3124435 Manipuflation
Manipuflation's picture

I can not and will not tolerate corruption of blood.  This whole financial mess we have been trying to deal with for the last decade is not my children's fault.  I just want the option to get them out of the way if need be and the need seems to exist.

Fri, 01/04/2013 - 20:54 | 3124323 alfbell
alfbell's picture

They've taken over in toto. It will be a long slow process of wealth transfer.

If you can't beat em you might as well join em.

Everyone is on their own. Do what you need to do.

Sat, 01/05/2013 - 03:26 | 3124384 rufusbird
rufusbird's picture

Fee, fi, fo, ing, gee! I see the image of a Ferengi.

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