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Congress Asks Bernanke For Full Risk Analysis On Fed's Soaring Balance Sheet
Several days ago we wrote about what we defined as the Fed's "D-Rate" - the interest rate at which the cash outflows from payments by the Fed on its Excess Reserves will surpass that cash inflows from its asset holdings, a very troubling day because as we further explained, from that point on the Fed would be "printing money just to print money." In other words, with every passing day, the Fed is getting ever closer to the point where the inflation it so very much wishes to unleash will force it to essentially request a technical bailout from Congress (and certainly will halt all future interest remittances to the Treasury), and the longer this takes, the lower the breakeven interest rate becomes, until one day it is so low the tiniest rise in rates will immediately put the Fed into the red. It now appears that Congress itself, the ultimate beneficiary of the Fed's free money policy as nearly half of all US spending is funded by the Fed's monetization of the deficit at ultra low rates, is finally catching on to what is the ultimate rock and hard place for Ben Bernanke. In a letter penned by the Chairman of the House Oversight & Government Reform Committee, Jim Jordan, says that he is "troubled by the corresponding effect that the Federal Reserve's expanding portfolio could have on current and future economic growth" and has asked the Fed what its "future plans to unwind the [$3 trillion and rising at $885 billion per month] portfolio" are.
What is surprising that Jordan actually gets it:
I am especially concerned that the historically low interest rates brought on by the Federal Reserve's monetary policy have hampered economic growth by distorting traditional financial incentives.
It gets better:
Younger Americans who have been working to save their income have faced meager returns in bank accounts and larger balance requirements, slowing their overall accumulation of wealth.' Likewise, older Americans living off of interest-bearing accounts have been forced to move to riskier investments to maintain their standards of living.
And best:
Most strikingly, by maintaining low interest rates, the Federal Reserve has distorted the real cost of the national debt, effectively "incentiviz[ing] the U.S. government to borrow and overspend."
Jordan is not happy:
The Committee has previously written to you with concerns about monetary policy in the United States. In July 2011, after a meeting between Committee staff and Federal Reserve staff, the Committee requested that you provide all Federal Reserve studies used to determine the value of Federal Reserve assets and "what the potential losses would be based on different unwind scenarios regarding the Federal Reserve's portfolio..." The Committee also requested that you provide "all estimates and analysis of the potential costs of payment of interest on reserves" that would incentivize banks to maintain excess reserves. In response, you provided only publicly released studies, and you did not provide any precise estimates of the future cost of reserve interest rate payments
As a result...
I respectfully request the following information for the period November 25, 2008 — present:
- All public and non-public studies, estimates, analysis, and evaluations of the value of the Federal Reserve's assets and any potential losses associated with future unwind scenarios commissioned or undertaken by any employee, agent, or contractor of the Federal Reserve;
- All public and non-public studies, estimates, analysis, and evaluations of the potential costs of payments of interest on reserves sufficient to prevent inflation associated with future unwind scenarios commissioned or undertaken by any employee, agent, or contractor of the Federal Reserve;
- All documents and communications between or among employees, contractors, or agents of the Federal Reserve System and employees of the Treasury Department or the Executive Office of the President referring or relating to the value of the Federal Reserve's assets and any potential losses associated with future unwind scenarios;
- All documents and communications between or among employees, contractors, or agents of the Federal Reserve System and employees of the Treasury Department or the Executive Office of the President referring or relating to the Federal Reserve's cost of payment of interest on reserves
Well, better late than never. However, we are confident that Jordan will be unhappy with the response whose advance preview we provide below:
Dear Jim,
Please accept this first completely blank napkin as evidence of all the rigorous analysis the Fed has conducted on all the issues you bring up. Also, on the second completely blank napkin we would have written the date on which we expect to begin unwinding the Fed's balance sheet.
Peace out,
Chairsatan Ben
Full letter below.
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I'm sure they'll get a FULL TRANSPARENT answer for their troubles from the Fed, who has been completely honest about everything since 1913.
My God, we're massively getting trolled on a daily basis!
I'm sure the answer will be "Fuck off, and I hope you don't accidentally drown in an inch of bathtub water soon"
Data dump on the next holiday weekend
The Fed is doing what they are mandated by law from Congress to do, yet some of Congress wants to get their hands in the cookie jar so that their constituents - who are not economists - vote for them again. It will be a horrible day when Congress, who do everything only for votes, begin to regulate the money supply, because if that ever happens it will be without an impartial bias.
They must wanna know if their 'insider stock trading' positions are in any jeopardy...
I can save Ben and the Congress a lot of time and eliminate the confusion.
You have two choices:
1. We continue to expand the counterfeit "reserves" and fund you so that you can keep your pathetic “leadership” jobs until the collapse.
2. We stop expanding, you stop spending and you lose your pathetic “leadership” jobs before the collapse.
Because of your pathetic, myopic, self-serving “leadership”, those are the only two choices left for you.
They'll pick option #1 of course.
Bullish for collapse, lopped off heads, etc!
Unwind...they will unwind it witb bullets and brute force.
The solution is negative nominal interest rates. Then the US Treasury can keep on borrowing, and the US debt will eventually go to 0.
And PMs are the ONLY investment vehicle left. I like it!
Sweet, this means that the banks will pay you to take out a loan right? Long all things physical then.
looking good manthong
those are the only 2 choices. Understanding that these are the only 2 choices does allow for things to make a little more sense. My only objection to your post... it wasn't their pathetic, myopic, self-serving "leadership" that created this predicament. Don't get me wrong... they are sociopathic criminals... but the this ball was set in motion long ago.
The wheels were put in motion in 1913, but the brakes were removed the day Kennedy was shot and nitro-methane was injected into the combustion chambers when Brooksley Born was squelched which opened the door to Clinton's parting CFMA gift to the Squid et al.
Everyone in leadership has had an opportunity to stand up against the destruction of the formerly sound US Dollar. but partly through ignorance, partly though misdirected good intent and always with self-interest did leadership pass on fiscal discipline and responsibility.
Leadership and responsibility are inextricably entwined. They made the promises, They assumed the responsibility. They took the money. They bankrupted the country.
Default is never declared. Failure for elites is obviated. Now, only lies and fraud maintain the system.
With only a very few exceptions, leadership owns this.
Eggsellent point, MD... uh, I mean Professor.
I see you are implying that the regulation of the money supply today, under Chairsatan Ben is actually unbiased....I am sorry...what assets do they buy to expand the supply? Bonds from Wal-Mart? from Ford? Or from the Treasury?...who do they buy these bonds from? Directly from the Treasury? Or from JPM or Goldman Sachs? Can I sell my stock of Treasuries to the Fed at a discount? Will I be able to bid directly for the Fed's assets the day they want to unwind?
The Federal Reserve Board have been given a mandate to regulate the money supply by Congress and they are just doing their job. Since we are in a depression and unemployment is still high economics dictates we need to increase exports to increase GDP. The Fed is doing this by buying bonds and expanding their balance sheet so to add to demand and make sure that supply does not overwhelm the markets. If they were not doing this then there would be another financial panic, and then unemployment would go higher.
This exactly what we don't need to happen, and if Congress was in charge instead of being focused on doing what the science of economics dictates, they would be doing whatever their constituents demanded, and their constituents are not economists.
Yes, because beggar thy neighbour has always historically worked out so well (*)
(*) I might be fibbing here
"The Federal Reserve Board have been given a mandate to regulate the money supply by Congress and they are just doing their job."
let's leave the legal interpretation to lawyers and lawmakers regarding what mandate(s) Congress may or may not have given the Fed.
this is not a question for economists to address.
if Congress says the Fed must answer some questions, then the Fed, per force, must answer them. Or else be in contempt of the Congress that established it.
The Fed, of course, could appeal this issue to the courts. which would certainly clarify the matter to Congress.
If the courts decide that Congress doesn't have the authority to collect information from the Fed, then Congress can easily remedy that deficiency by adding a single sentence to the statutes, or by eliminating the Fed altogether.
krug / mdb:
you complete me
that was a beautiful thing to say
The irony of your satire is that the absurdity is mostly true. The only lie is the assertion that this policy choice will "solve" anything. It won't. We still collapse... but we collapse at a slightly later date. Time to hit the reset button... but that won't happen.... so we'll get war.
Economists got us into this mess, Dr. Paul.
The Federal Reserve Board have been given a mandate to regulate the money supply by Congress and they are just doing their job. Since we are in a depression and unemployment is still high...
Brilliant, you explain the cause and effect in two sentences. The cool kids call it "the failure of central planning".
Then you propose your solution as more of the same! I'd like 5 minutes alone with you and a rubber hose.
How do I get one o' dem fancy phd's?
Hi Paul,
Article 1, Section 8:
"The Congress shall have power...
To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures;
To provide for the punishment of counterfeiting the securities and current coin of the United States;"
Ring any bells? As an "economist", how would you define QE? Specifically in the context of "counterfeiting the securities and current coin of the United States"?
I agree the Fed needs to pump up the money supply. Unfortunately that pump is not getting the money where they need it. I think the next thing they should do is this:
I propose that the government buy every existing primary home mortgage in America. Refinance them at decent terms, even cutting some principal for those underwater. By the time they get paid off government will have recouped all their money plus about 25%-40% in profits. Use those profits to reduce our national debt.
Once you have everyone refinanced, then start a program where every new primary housing loan is issued by the government. Do it through social security, giving them a credible income stream and letting another government program finance what social security cannot. Profits the government makes goes toward paying off current debt, reducing the need for new debt.and will allow a lower tax rate. people thinking about stiffing the government better think again as any failure to pay your mortgage will reduce your social security benefits down the road.
Banks and investors? It will hurt them but they will get paid in full on their loans outstanding. They will still be able to make second property, personal and business loans but no more fleecing the people on mortgage loans. They would still be eligible to make money originating primary loans on behalf of the government and servicing them. Better yet - Fuck the banks!
I can think of no downsides and the upside is more disposable income for families, less taxes and investors being forced into more productive endeavors in order to get their profits. All good for the economy.
I have a better idea. Dissolve Freddie and Fanne and the other 12 programs that absolve banks from worrying about losses. Pass a law that anyone can walk away from a mortgage. TODAY! There are plenty of programs that directly help the poor to have housing.Break up all banks the big banksJP Morgan, Goldman, BOA. Limit the markets that banks can be in at the same time. Being a market maker and broker and trader and M&A and retail shouldn't be allowed. The Federal Government removes itself from the mortgage market and God Forbid let the Capital Market measure risk while taking on some. Instead we have Taxpayer taking the risk and some stupid "banker/trader" getting the profits. Increase the size of the FDIC by hitting the banks with bigger fee. What moron wants massive house prices that people can't afford? Won't people rather enjoy their money than being like some fooi Japanese buying a sq foot of property for $50000?
Dr Krugman,
In order for Keynes formula to be viable the government must extract revenue from the labor/corporate class to replace the spending from the private sector.
I ask you then should this formula:
Y = C + I + G - (Net X)
be MORE acurate if it were written as
Y = C + I - (Net X) / G
Fuck you Krugman you peice of progressive shit!
Now you are out there with "we'll have to raise taxes on the middle class and instute death panels", you rat bastard!
My contempt for you and the communist in chief and his minions is without proper words!
Bill Clinton should be proud of the piece of shit he expelled from his progressive bowel at the democratic convention with the now out of control demigod who believes his own shit smells like roses!
Hey Barry, it's nice and hot in hell ,with the rest of your scumbag fellow liberal / communist / progressives who have a front row seat reserved just for you, yeah Teddy boy, Bobby Byrd and Jack-off Murtha are dying for your arrival.
You time will come one day and the Republic will rise again like the phoenix from this progressive onslaught led by charlatans like the biggest dick running the shit show today Paulie the prick Krugman!
Thank God for the first amendment!
God save the Republic and please forgive my gutter mouthed tirade, I just had to get this off my chest, forgive me Lord!
Since Lord (whoever that is) is not available, I forgive you. However, don't forget Clinton gave us "surplus" and Bush raped us blind. Obama of course is continuing the rape. In other words, liberal and conservative have lost all meaning in this kleptocracy.
Absolutely correct.
-30-
Clinton gave us the tech bubble,the repeal of Glass-Stegal and the failed assasination attempt on Bin Laden.A lot of everything going on can be blamed on him.
It will be a terrible day for you fat boy if I ever get my hands around you fat fucking neck
The Fed is doing what they are mandated by law from Congress to do.
How about we talk about that there law from Jekyll Island and why there aren't people swinging from light poles?
" It will be a horrible day when Congress...begin to regulate the money supply..."
So, basically you are saying, 'fuck the constitution'?
Yes let's put the fate of our economy in the hands of a bunch of PhD economists. It worked out so well for LTCM.
And wasn't it Greenspan who started blowing the housing bubble when he kept the interest rate low for an extended period of time and now The Bernanke is continuing this failed policy?
And let's see how well The Bernanke did at predicting and recognizing problems in the economy:
http://www.youtube.com/watch?v=INmqvibv4UU
Hi Paul,
I think you have hit the nail right on the head. Bravo to you, Sir!
"...so that their constituents - who are not economists - vote for them again."
Ya see, its like this. Ordinary folks have to vote for those who promise to improve their lot (whether that actually transpires or no). They have responsibilities and consequences. So what if they only get to choose between a Giant Douche and a Turd Sandwich?...when your kids are hungry, a Turd Sandwich is better than nothing. They gotta get by somehow.
Unlike the dickless cheese-brain so-called "economists", suckling at the always-overflowing gubbermint teat, who have never done an honest day's work in their lives...no shortage of food, hoes and blow there, my friend...
I can't help but wonder . . . how many of the down arrows don't get the idea that this poster is a satirical writer?
So if you vote red, you are saying that the satire is objectionaable, and that you don't get it - while the truth is that if you do get it, then you'd be voting green as an applause for the quality of writing.
Why is that satire on ZH so often goes right over the heads of ZH readers . . . ?
-30-
That sounds way too intelligent than anything Paul "aliens" Krugman could come up with.
perhaps ZH should send the analysis over to Jim Jordan. This could be done in minutes vs decades it would take for the PhD's at the Fed to calculate.
If they do they better double check their arithmetic, pretty sure it was off. It would be a coup for the Fed and make ZH look bad if a Congressman were to quote a ZH article that the Bernank could find an obvious mistake in.
http://www.zerohedge.com/news/2013-02-19/feds-d-rate-45-dec-31-2013-and-...
+1
Yeah, the SUBcommittee on somethingsomethingsomething... I am sure the Fed is carefully considering all the ways to further convey the sound of chirping crickets to the Honorable members of that obscure, toothless SUBcommittee.
From what I can see, the answer will be, "Okay, already, we'll give you the contract for needlessly upgrading tanks in your district." It is all a game.
Can you imagine the comedy if Bernanke had to explain VIX to Maxine Waters?
Coffee laugh through the nose... not good but soooo worth it.
Thanks for that.
Maxine Waters is a legend. She is a true representative of her constituents: Dumb.
You're talking about Maxine "I marched because my mother couldn't have an abortion" Waters?
Can't stop laughing. The image is stuck in my mind. That would be another Hank Johnson "Guam Capsizing" moment. I'm hoping to see a Jeff Dunham "Maxine Waters" puppet.
Fate the Magnificent
"Push the Button, Max"
I think it is $88.5 Billion per month not $885 billion. Unless of course we are looking ahead a year or so.
Thanks, beat me to it. Dude needs to slow down before he becomes Typo Durden.
The Fed will comply but it will take them longer to get that info to CONgress than it will take the treasury to return German gold. Then it will taks a team of shitlords from the govergnment another 5 years to figure it all out, bottom line is 15 years later we get an answer and that will be a complete BS coverup. So what's the friggin point?
Right on.
Nice try Jordan, yer hearts in the right spot. However, the kike AIPAC cunts will thwart any effort to get traction and expose the zioshit cabal.
Ben will say the federal reserve act indemnifies us (fellow jewshit) of any accountability and transparency.
Next "terrorist" attack will sideline the sheep anyway.
Deviation from the Obama Happy Days Are Here Again platform will not be tolerated.
1. All looks good all indicators are pointing UP! No mention as to UP what!
2. We feel the downturn is because consumers are to blame for not spending enough money, the cheap bastards!
There. Is. No. Risk.
- Ben
I can stop inflation in 15 minutes
Ben
lookit the 10 year (sub 2.00) just on a little chatter
methinks ben wants to just make the all time highs...back off a little and flatline for another decade all the while keeping the 10 year below 2%
blast from the past...at the 6 minute mark on this video of an old interview of Senator Prescott Bush in the early 1950's. He discusses interest rates and controlling inflation from much the same perspective of most ZH'ers...
http://www.youtube.com/watch?v=a9zawMsMk9g
The whole video is worth watching for it's historical value and is interesting for several other reasons.
Balance sheet smalance sheet. The sun will take care of us....
http://www.weather.com/news/science/massive-sunspot-forms-20130220
"...respectfully request..."
You work for me, bitch. Give it to me or get fired, pick one.
I think Ben will simply write back:
"Who runs Bartertown?!"
pods
2 men enter, one man leaves.
" P.S - I have also enclosed a picture of my balls".
Salty!
phahahahahaha .... please let me have my coffee Fonz
No risk of that. None.
- Gone but not forgotten Timmay
As the Dalai Lama would say:
WHEN RIDING A BOMB WHICH IS DROPPED FROM A BOMBER....
GRVITY ISN'T YOUR FRIEND!
nor is the bomb...
nor is the Dalai Lama...
Ooooops.
This is the answer for the FED and America.
I propose that the government buy every existing primary home mortgage in America. Refinance them at decent terms, even cutting some principal for those underwater. By the time they get paid off government will have recouped all their money plus about 25%-40% in profits. Use those profits to reduce our national debt.
Once you have everyone refinanced, then start a program where every new primary housing loan is issued by the government. Do it through social security, giving them a credible income stream and letting another government program finance what social security cannot. Profits the government makes goes toward paying off current debt, reducing the need for new debt.and will allow a lower tax rate. people thinking about stiffing the government better think again as any failure to pay your mortgage will reduce your social security benefits down the road.
Banks and investors? It will hurt them but they will get paid in full on their loans outstanding. They will still be able to make second property, personal and business loans but no more fleecing the people on mortgage loans. They would still be eligible to make money originating primary loans on behalf of the government and servicing them.
I can think of no downsides and the upside is more disposable income for families, less taxes and investors being forced into more productive endeavors in order to get their profits. All good for the economy.
Only problem is the Fed is owned by the banks.
Point me to the underlying sources for your conclusion. I have not seen any credible information on precisely who or what entities are the shareholders/owners of the Fed.
Please, do tell, several people interested in such information.
ITS THE FUCKING KIKENVERMIN...
I always wondered about that 6% dividend payment the FRBNY makes to shareholders, how many shares there are etc. They should be required to disclose this to the SEC.
duplicate
A starting point: http://www.globalresearch.ca/who-owns-the-federal-reserve/10489
I'll get "Anonymous" right on that!
Downside: Government invovlement.
sounds like you got a few underwater properties you want to unload---
I do have an underwater property but am thinking more in macro terms.
The government cannot do a worse job of running the housing markets than the bankers have done. Their failure is the only reason that the Fed owns all this paper in the first place. Why not have the housing market benefit the country instead of private banks?
Everyone bitches about the ponzi that is social security. Let them make the mortgage loans with the trust fund balance, so that our future benefits aren't funded simply by us paying more taxes.All this is doing is getting rid of the ponzi's which everyone here seems to be in favor of as an ideal. But propose something that actually does it and no one wants to climb aboard.
Fuck ponzi's!
The Honorable Ben Bernanke. Fuck you!
The response will be generated in some form of war.
It took this congress this long to figure out something was wrong? By the way, how is Fast and Furious going and how is Benghazi going, those investigations were started by Congress too and not one thing has come out of them, I suspect the same will come of this pointless letter to shift blame away from their inability to halt spending.
http://www.breitbart.com/Big-Peace/2013/02/20/Benghazi-Survivors-Remained-Gagged-By-Federal-Law
This amuses me. I guess this guy wants the Fed to stop loaning the government money so it can default on its debt. I'm all for it. Lets kick this thing in the dick already.
the nerve.. nigga needs to get hot tubbed
Seeing as how CONgress long ago abdicated their responsibilities and now rely wholly on the banksters for policy decisions and monetary largesse perhaps the Bearded Clam should send Jordan a letter back asking what his freaking plans are now that they are bankrupt.
when the day ever comes does Bernanke invoke the Chewbacca defense or does he hire frozen cave man lawyer?
That makes no sense.
If you watch certain shows, it does.
I should have said "That does not make sense."
I'm pulling this from memory so the quote wasn't quite right.
I am just a caveman who was frozen in ice and later thawed out by some of your scientists. If Chewbacca lives on Endor, you must acquit.
This is exactly why Ben intends on removing himself from the situation at the end of this year.
He took a huge shit on the floor and has no intention of explaining why he did it and especially not cleaning it up.
I'm sure Maxine Waters can explain this, no need for Bernanke
Risk?
CONgress?
FED?
Risk?
"We didn't see this coming."
"This time is different."
"Black tulips?"
"Risk?"
*cough*
so now they are asking about risk, why bother the damage is already done! assholes!
LMFAO!!! The puppets are asking their masters about risk?!?!?!
Bah ha ha ha ha! Go ahead Ben, "fix it in 15 minutes" and raise rates motherfucker.
also... there was a notion that some countries didn't get all their gold back when requested....
FBI!! THIS IS A BUST!!! OPEN THAT SAFE!!! ANYBODY WHO LOOKS WEIRDS GETS ... BAM BITCHEZ!!!!
Where Hilarity does NOT ensue :
Two headlines hitting the European press on two major issues :
1° FED
In line with this thread, the Euro market seems to dread the response of Ben to this enquiry, if the end result is to dry up the QE pump. Presumably, as ZH has pointed out that FED money will STOP flowing to Euro Banks!
Yikes!
Les marchés craignent l'arrêt des mesures de soutien de la Fed
(Markets fear that FED QE comes to an end)
2° China and ME Oil access
Here is an interesting take whereby the Paki POrt of GWAdar, just off from Hormuz strait, could be a new oil port used to send pipelined oil to china (as could Burmese ports further along). Thus the old silk route would become the NEW oil pipe route via the Karakorum range!
It would also alleviate the dangerous crossing in the Malacca straights near Indonesia...which Chine dreads for its tankers.
Grâce au Pakistan, la Chine renforce sa présence à l'entrée du Golfe persique
THIS WOULD OPEN UP A WHOLE NEW BALL GAME IN landlocked Asia and china seas.
The Clowngress sock-puppets wants their boss the FED balance sheet monstrosity 'risk analyzed'?
Who do they think they're fooling? OR....is this for 'ass-covering' because they know the whole Shitcastle is about to crumble?
lets hope these are new guys who aren't sock puppets
The Honorable Ben Bernanke.....an oxyMORON if there ever was one.
Probably I'm too naive, but actually I think that letter spells the end of QE (unless some really catastrophic event takes place).
Too many people think interest rates are unreasonably low, and have been for some time.
Further, the argument that QE was some sort of one-time measure to rescue banks, etc., cannot apply after several years, particularly years in which much other aid from Government has been repaid.
Inflation is going to be the end of QE. It has arrived!
Kevin is going to be working overtime.
Could this mean that - gasp - our lawmakers actually have to start making decisions??
Dear Sir:
In response to your recent letter, we must remind you that Congress created the Fed to be completely unaccountable to Congress, or to the GAO.
Providing the data you ask for would be tantamount to surrendering our totalitarian control over world markets, and since the result of that would mean the end of "catered lunch Thursdays" at the Mariner Eccles buildings, we must politely decline your request at this time...
Best Wishes,
Ben
funny
I'm sure Ben will put it on his things to do list, right next to 'grant permission audit the FED'...........
Is Jim Jordan a pseudonym for Ron Paul?
I'll be having smoke and a side of mirrors. That is all.
Dear Jim,
Please send me a copy of your plan to peacefully unwind your military industrial complex and social welfare Ponzis and I will see what I can do.
Thanks bro,
Ben Shalom
Bingo! Turns out all welfare is bad after all (both corporate/private and social).
lloll
It's about time. We just need guys like this, Seth Klarman, ZH to keep up the pressure before these idiots destroy us all.
Too late. Fait Accompli. All that is left is for the collapse to happen.
Scene...Congressional hearing....Ben sits at a desk...
Congress person: I WANT THE TRUTH!
Ben: YOU CAN'T HANDLE THE TRUTH!!!!
fed's trade secrets, for your eyes only:
who the fuck are you congress? I'm the fed or a mafia. Me and Greenspan never have to answer any of your questions about jack shit. We'll nuke the entire world first.
How's that bitchez??
Posturing, nothing else.
Useless Senator: "Gee, Ben. The People are talking about civil war. We need to do something to show them we REALLY care."
Ben: "Uh, there is no Fucking WAY you can audit our books. The shits too complicated, and honestly, this fucking pyramid is coming down, AND, well, we're not really interested in helping America. Realy, we're a group of foreign banks making a shit load off your interest payments. Besides, We are Leveraged to the FUCKING hilt, like a billion to one. If you saw our books you would crap yourself."
Uselss Senator: " uh, well, since you and your buddies paid for my campaign, maybe we could come up with something else. I mean my goodness, I can't lose this positition and it's perks?! I don't have any REAL SKILLS. How the hell am I supposed to fund the lifestyle I've grown accustomed too?"
Ben: "Look, here's what we'll do. You'll ask me for "Risk Assessment". I'll blow smoke up your ass. you can tell everyone that you've looked into it and it's all good, nothing to see here. Then, we'll buy some more of your shit treasuries while you keep going in to debt buying off the sheep's votes. Good? Good. Now quit bothering me, I've got some Nation raping to do."
response from the fed:
RISK? WE PRINT THE MONEY BITCHEZ!!!!
whats the risk? The two main risks are:
1) We run out of ink
2) We run out of paper
3) we run out of believers ...
wait there are 3 risks... the three riskd are...
like the rest of the pathetic showmen in congress, JORDAN gets it...he gets the fact that bernanke has helped him and his comrades continue to function as a key part of a corporatocracy.......he gets the fact that he gets to continue sucking dry america one more day as bernanke extends the grip of congress on american citizens.....JORDAN IS FULL OF SHIT......FUCK HIM....................
Just curious; is there anyone in Congress you consider not a "pathetic showman", i.e., someone who genuinely is trying to do the right thing vis a vis the debt, deficit, and monetary situation? And how can you know for sure?
very few if any. id say justin amash is about the only one. perhaps a few others.
jordan is another big government pretender. voted for the renewal of the patriot act, voted for ndaa, voted for fisa, endorsed nitwitmittromney, etc.......do your homework........hes full of shit and enjoys big government centralized control...........
It's a good thing this bloke wrote a letter. I was getting worried for a second.
.
Fed's official response:
"Please Do Not Worry"
How is it that all these criminals have the word "honorable" in front of their names? Honor must have a completely different definition to them than it does to us.
Risk? That's the conquering game board this is monopoly and go for broke
Ben may have met his match:
"Jordan was born and raised in Champaign County, Ohio and attended Graham High School, graduating in 1982. While at Graham, he was a four-time state wrestling champion with a career record of 150-1."
He is conservative: "In Congress, Jordan is among the most conservative Republicans, earning a perfect score from the American Conservative Union."
But not a Libertarian, apparently:
"Jordan has supported the continued production and upgrades of M1 Abrams tanks in his district over the direct objections of the Pentagon and criticism regarding the redundancy of further production. The Pentagon wants to put a hold on tank upgrades at a Lima plant until a new version is ready, possibly in 2017, in order to save $3 billion. The plant supports approximately 800 jobs in the district.
http://en.wikipedia.org/wiki/Jim_Jordan_(Ohio_politician)
A some point the math and reality will suck.
Until then it's skittle pooping unicorns.
Risk? There is no risk...we can always add another zero with a single keystroke.
They probably wont even bother to answer honestly.
The only way these people even bother with govt is if they are threatened with jail time or death sentences.
Please, sit back and enjoy the show.
Next comes the mysterious plane crash with Jim Jordan and the rest of the Committee the unfortunate passengers.
and then when the end finally arrives, they can use the Barney Frank defense, "No one could have ever seen this coming."
Now That's a report I want to see!
Best photo ever...
I remember being nauseous when the Fed was buying all this stuff at 100% from the Banks. I was thinking "set an example,please,price discovery,moral hazard,etc".
Also,once hyper-inflation kicks in it truly will be "throwing Grannie under the bus". This reminds me of the old folks who were abandoned during Katrina. A rhetorical question: Is this the America we aspire to be.
Jordan does 'get it', but his request is a shotgun - and that shotgun approach means that he will simply get a 6 foot high pile of paper with contradictory studies. The only way to attack the Fed and win is to focus on narrowly targeted specific things that have paper trails outside of the Fed. We saw a couple days ago where a thirty year CUSIP was auctioned on a Thursday and the same CUSIP was bought by the Fed the following week. Nail Bernanke on monetizing the debt. Follow the Fed money from the US to Europe through European banks in the US - ask for THAT paper trail.
perhaps jim jordan is going through the motions of asking the fed about its unwind plans, but if not, he is a complete fucktard.....anyone who believes that bernanke has a plan to unwind anything is full retard....it is impossible, and absolutely under no circumstance will it happen....the fed's balance sheet is fully structural and will not shrink - it simply cannot sell its "assets".
the wall street bankster cabal under the aegis of the rockefeller axis of evil - charter member of the military industrial complex and abley served by the bush crime syndicate - has spread financial terrorism and fraudulent economics on the land....bernanke is the adolph hitler of banking....
It's like they're playing Jenga and we're the pieces.
Perhaps Jim Jordan could get Maxine Waters to sign onto his letter. Maxine is the Ranking Demnocrat member of the House Financial Services Committee.
Say what ?
"Oversight & Government Reform Committee"
is that like the Deslithering and Defanging of Vipers Committee?
Dear Jim,
Want to go for a ride in my helicopter?
Love
Ben
Ahh scuz me folks, does this appear to have the aroma of "Holy Frakking shiite"? seriously, it seems to me some VERY influential folks are VERY nervous...or even scared!
DHS buying 1.4 billion rounds of ammo is a good indication of just how scared they really are.
TSA protecting our Freedom:
http://www.wftv.com/news/news/toddler-wheelchair-heading-disney-cries-during-run/nWWGc/
Walk into any gun store and see how much ammo they have in their shelves. Nearly empty here in Houston with limits of only one box per customer per day. Both the gov and private citizens have been arming and stockpiling to unimaginable levels for the last 5 years. The economy and our politics are structually broken here and in Europe. One possible unwanted scinario is one that in 3 years there is civil unrest and obama declaires martial law and postpones elections.... no, that is too paranoid.