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Bernanke's 'Inflation' Record

Tyler Durden's picture


Addressing a question yesterday, from Senator Bob Corker, on his "being the biggest dove since World War II" and the "degrading effects that he's having on society," Bernanke responded proudly that be believed his "inflation record is the best of any Federal Reserve Chairman in the post-war period." Of course that is by his measure. We suggest, he and few of his transitory colleagues look at the chart below for a sense of just what his 'dovishness' looks like to the rest of the food- and energy-consuming world... or perhaps by 'best' he means 'most'.

CORKER: So I think that, you know, I don't think there's any question that you would be the biggest dove, if you will, since World War II. I think it's something you're rather proud of.... Just wondering if you -- if ya'll talk at all in your meetings about the degrading effect that's having on our society.


BERNANKE: You called me a dove. Well, maybe in some respects I am, but on the other hand, my inflation record is the best of any Federal Reserve Chairman in the post-war period, or at least one of the best, about two percent average inflation.

The Bernanke Era Inflation...


(h/t Paul Vreymans)


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Wed, 02/27/2013 - 19:01 | 3283577 YuropeanImbecille
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Wed, 02/27/2013 - 19:11 | 3283630 ArkansasAngie
ArkansasAngie's picture

The US has been exporting inflation for years

Benny certainly has certainly left his mark

Wed, 02/27/2013 - 19:22 | 3283669 The Alarmist
The Alarmist's picture

Ben's right ... having delivered more inflation to more categories to more places in the world than any other Fed chair has in it's 100 year history, his record on inflation is indeed outstanding.

Wed, 02/27/2013 - 19:34 | 3283710 Cdad
Cdad's picture

Can I get that chart on a t-shirt, please?  Maybe with a B. Bernanke portrait on the back?  T-shirts are still $5, right?  Can I get two of them, one for me and one for Ben?

You know, to start an open dialogue with The Fed, to bridge the divide, to conquer the communication problem, to somehow find some common ground....

....with the biggest and most successful financial criminal to have ever walked the Earth.


Wed, 02/27/2013 - 21:18 | 3284029 t0mmyBerg
t0mmyBerg's picture

I appreciate your attempt at levity.  Personally I have had it up to here such that I can no longer try to be funny about this shit.  So rather than saying something clever, I will just say that the only thing worse than watching a smug, lying scumbag piece of shit Bernanke these last 2 days was actually watching "people" who somehow are our representatives in "the people's house" try to say anything coherent or even intelligible to the "good" professor.  I mean FFS, the members of the house must have an average IQ of something like 70.  The Ranking Member indeed.  Christ I am going to puke again.

Thu, 02/28/2013 - 00:40 | 3284595 yatikto
yatikto's picture

Exactly,  everyone needs to sober up and actually present an argument instead of pointless jabs.

For example.  Why is debt a problem?  Because if you believe in accountability you believe that you have to pay it back.  If you don't believe it needs to be paid back, you don't believe in accountabilty, doesn't matter what else might be said.

Our government does not believe in accountability. Period.


Does krugman and so on believe that market discourages inefficiency?  No they do not, since they believe that everyone just needs something to do and get paid for it. (And this is on record, its a fact)

Private sector will not put up with that logic, but our government will.

So, our government is unaccountable and inefficient; and they don't see it as a problem.  Furthermore, criticism is seen as negativity and reversal of progress.

They'll die with a smile.



There is a chasm between neo liberals and conservatives.  And it will only get wider.

Wed, 02/27/2013 - 21:37 | 3284091 More_sellers_th...
More_sellers_than_buyers's picture

How do you know we are fucked? Because this asshole never made a real dime in his life. Every business man can have thei opinion and act on it. Hell the idea that the economy will follow the market is not insane if you look at the numbers an past history... But for fucks sake if it's not working...and it's not ... Then figur out what will work! Typical ivory tower real world experience... Just do what the text book tells me...Fuck you bernenke

Thu, 02/28/2013 - 13:05 | 3286236 SeattleBruce
SeattleBruce's picture

"Because this asshole never made a real dime in his life."

So Beryankme, Obumao and 3/4 (7/8? 95%?) of Congress are peas in a pod.  This house o' cards is a coming down...

Wed, 02/27/2013 - 19:14 | 3283642 20834A
20834A's picture

What inflation? I just received notification from my electric coop that my rate is going up 9.9% a month. And from my credit union in regards to new/higher fees:

"We postponed implementing these changes for the past 18 months as we thought the economic conditions would improve and interest rates would rise which would contribute to building reserves. It appears the Federal Reserve foresees a different financial scenario and has committed to keeping rates artificially low through 2015."


Wed, 02/27/2013 - 20:14 | 3283844 Uber Vandal
Uber Vandal's picture

It appears the Federal Reserve foresees a different financial scenario and has committed to keeping rates artificially low through 20015

Corrected it for them.

Wed, 02/27/2013 - 20:51 | 3283945 flacon
flacon's picture

At least they blamed the right institution - and called them out by name. That's pretty impressive. 

Wed, 02/27/2013 - 22:57 | 3284282 akak
akak's picture

Where are Orly's non-inflated chicken breasts when you need them?

Wed, 02/27/2013 - 19:20 | 3283663 insanelysane
insanelysane's picture

Bernanke means that he is the best from this point forward.  This shitburge will retire when shit starts hitting fan and be at the low end of the parabola.

Wed, 02/27/2013 - 19:21 | 3283665 spinone
spinone's picture


Wed, 02/27/2013 - 19:27 | 3283691 Cdad
Cdad's picture

You know...let's try to be civilized here.  Mr. Bernanke is not exactly a spring chicken, and perhaps his eye sight has simply deteriorated so that he is unable to see the far right side of that chart?

Other explanations might be that the poor fellow is carrying some baggage from the late seventies, painful memories of high interest rate mortgages.  Also, it possible that Mr. Bernanke has such a natural tendency for empathy for bankers and the possibility of....deflating assets...that...errrrr....he ummm.....

....he chooses to fuck over 99% of the entire population of the planet to keep the old money good and solid while crushing the currency of the poor, the fucking asshole.


Wed, 02/27/2013 - 19:03 | 3283586 taniquetil
taniquetil's picture

It's not Bernanke's fault. It's probably all the evil speculators. And stuff. I mean, who else would buy gold against dollars aside from evil speculators?



Wed, 02/27/2013 - 20:17 | 3283854 Stuffs And Stuff
Stuffs And Stuff's picture

Stuffs was not involved.




Unfortunately, I can't afford to buy gold.

Wed, 02/27/2013 - 19:03 | 3283592 Bay of Pigs
Bay of Pigs's picture

Maybe the inflation expert Orly can weigh in on this thread?

Wed, 02/27/2013 - 22:59 | 3284287 akak
akak's picture

Don't bother her right now --- she's in the middle of cooking up some 49 cents/lb chicken breasts right at the moment.


(Of course, having been frozen since 1988, they are probably more than a bit freezer-burned.)

Wed, 02/27/2013 - 19:03 | 3283594 Chuck Bone
Chuck Bone's picture


Wed, 02/27/2013 - 19:05 | 3283601 Westcoastliberal
Westcoastliberal's picture

Thing is, guys & dolls, Bernanke really believes the crap coming out of his mouth.

I read something the other day, I think it was here on ZH, that made perfect sense and finally put things in perspective.

Going back at least to Greenspan and certainly Bernanke as well, have the belief that it's all about "the market", and that the economy will follow the market, so to improve the economy, the market must be supported with every tool we have.

Now, I'm not an Ivy league economist, but seems to me that's totally ass-backwards.

Wed, 02/27/2013 - 19:17 | 3283652 Just Ice
Just Ice's picture

Same illogic as merely getting rid of a symptom then claiming the underlying problem cured.

Wed, 02/27/2013 - 19:27 | 3283689 McMolotov
McMolotov's picture

You mean a brain tumor can't be cured with two aspirin? Heresy!

Wed, 02/27/2013 - 19:30 | 3283699 Temporalist
Temporalist's picture

Yes it's the old "If you have a headache smash your foot with a hammer."  See, no more headache.

Wed, 02/27/2013 - 19:36 | 3283719 adr
adr's picture

um, that actually works.

I have smashed my pinky to take the edge off a migraine.

However I think the cure for the QE headache is cutting off Bernanke's head. I'm pretty sure my headache would go away.

Wed, 02/27/2013 - 19:29 | 3283697 thewayitis
thewayitis's picture

Right. They don't understand that 90% of buying in the economy is the common man. Not the 10% rich ....

Wed, 02/27/2013 - 21:19 | 3284033 max2205
max2205's picture

You guys don't buy the CPI #'s?

Wed, 02/27/2013 - 21:42 | 3284104 ceilidh_trail
ceilidh_trail's picture

They know it. They just don't give a crap. Jamie Demon-"I'm richer than you".

Wed, 02/27/2013 - 20:23 | 3283867 Stuffs And Stuff
Stuffs And Stuff's picture

Greedspan quite literally said this in a recent TV appearance:

"the issue is how does it affect the stock market."

"the stock market is the key player in the game of economic growth."

"if the stock market can hold up through this, then the effect will be rather minor."

Wed, 02/27/2013 - 21:28 | 3284060 jcaz
jcaz's picture

It's ass-backwards even in their own house....

Did Volker give a shit about the stock market?   Nope-  he did what was he was paid to do- be an independent guide, didn't blink when the market puked and politicians freaked out;

Flash forward to present, and now the Fed chairman is just a whore to the politicians- "Mr Bernanke, go do our work"....

But now even Volker is an overpaid "consultant" for Obama-  the bureaucracy has won......

Wed, 02/27/2013 - 21:52 | 3284127 1984
1984's picture

And they'd be right.  How can you work magic if you can't use smoke and mirrors?   

Wed, 02/27/2013 - 19:05 | 3283603 candyman
candyman's picture

I'm beginning to sense that Bernake is going to join Obummer on the 100 city road show. What is happening to this country!

Wed, 02/27/2013 - 19:07 | 3283608 AldoHux_IV
AldoHux_IV's picture

This is why Dimon's richer than all of us. You can ask, you can protest, and you can even be angry, but in the end they're getting away with it because we don't want to stop it from happening or don't know it's happening.

Wed, 02/27/2013 - 19:23 | 3283674 spinone
spinone's picture

He's richer than all of us because he takes crazy levered bets.  When he wins, he wins 100 to 1.  When he loses, he blows up so bad that he gets taxpayer bailouts.  He's rich because he keeps doing this and doesn't go to jail.

Thu, 02/28/2013 - 01:20 | 3284684 venturen
venturen's picture

He is rich because you pay his losses and he takes the profits! Also he know what the analyst is going to say before he says it and he knows from the FED what the bond market will do, before it does anything. They aren't guessing...they are shooting sheepel in a barrel!

Wed, 02/27/2013 - 19:07 | 3283609 Dr Paul Krugman
Dr Paul Krugman's picture

Most of the prices in those asset classes are either transitory, or controlled by speculators.

Wed, 02/27/2013 - 19:30 | 3283695 McMolotov
McMolotov's picture

And yet the transitory speculation bullshit didn't really take off until around the end of 1971. Care to explain, good doctor?

Wed, 02/27/2013 - 19:42 | 3283741 nope-1004
nope-1004's picture

Krugman just admitted that gold and silver are assets?  LOL.


Wed, 02/27/2013 - 19:55 | 3283790 McMolotov
McMolotov's picture

Only when it suits his argument. Otherwise, he claims gold and silver are just lifeless lumps that sit there, unlike a piece of paper that says Groupon.

Wed, 02/27/2013 - 19:53 | 3283732 chump666
chump666's picture

Ah yes speculation, when you can sell USDs with 0% interest and buy stocks under the blessing on the Fed's Wall Street underwriting skills.  Commodities are a hedge against war Krugman, y'know Japan and China already now are a cold war, Nth Korea nuclear tests and whatnot.  The DXY hasn't collapsed entirely because of China and South American USD black-markets, yes, to offset inflation, which is probably gone hyper in some sectors. 

Bernanke is leading us straight into war, if he pushes up Nat Gas further with Brent/WTI, South China Sea will go hot.

That is your hero's legacy.


Wed, 02/27/2013 - 19:41 | 3283739 adr
adr's picture


Transitory in Krugspeak means it used to cost $20 and you made $500. It now costs $40 and you make $400. As long as the price stays at $40 there is no longer any inflation and you will get used to paying the higher amount. You have transitioned.

Perhaps the price wil fall to $35 from $40, like oil dropping to $90. You used to pay more, so now we have deflation. Completely forget that you are still paying at least double what you were.

Wed, 02/27/2013 - 19:12 | 3283624 azengrcat
azengrcat's picture

Transitory Global Warming Sandy Blizzards 9/11 Speculators Spending Cuts 1%ers New Normal Malybigiria Fiscal Cliff

Wed, 02/27/2013 - 19:10 | 3283628 BlueCheeseBandit
BlueCheeseBandit's picture

Plus I hear beard and scalp wax have gone through the roof.

Wed, 02/27/2013 - 19:12 | 3283634 Bastiat
Bastiat's picture

Heavy Voodoo!

Thanks to Silver Surfer for linking this on another thread.

Wed, 02/27/2013 - 19:12 | 3283639 buzzsaw99
buzzsaw99's picture

Pigeon, flying rat, not dove. Doves are cute, the bernank is hideous.

Wed, 02/27/2013 - 19:17 | 3283650 fonzannoon
fonzannoon's picture

I am sure the market will upend itself any minute and commit sepuku because the gig is up. Or not.

CNBS can't even hide it anymore. They must have never thought they would make it this far. They have no script for this. They can't believe the audience has not rushed the stage yet. They are left grasping at straws trying to make the sequester out to be another wall of worry that the underdog awesome market somehow finds a way to overcome all odds and rises above. It is disturbing.

Wed, 02/27/2013 - 19:25 | 3283680 Just Ice
Just Ice's picture

More and more it is glibly discussed that the Fed is juicing equities as if perfectly normal and a-okay.  We used to routinely, and scornfully, refer to countries suspected of such meddling as Banana Republics.  I find it disturbing that the market apparently has neither the power nor desire to rebel at its transformation from being free into a centrally planned puppet show.

Wed, 02/27/2013 - 19:36 | 3283721 Temporalist
Temporalist's picture

Just a few years ago people openly and violently denied this, the PPT and Fed influencing all markets, on "popluar" (not to be named) "Business" websites by so called posters (who were really propagandist moderators and sock puppets most likely).

Now it's just accepted as the "new normal."

At what cost insanity?

Thu, 02/28/2013 - 02:10 | 3284780 fuu
fuu's picture

Exactly. 5 years ago this was tinfoil hat teritory, now it's a sign of economic recovery.

Wed, 02/27/2013 - 19:17 | 3283655 km4
km4's picture

The World's Largest Money-Laundering Machine: The Federal Reserve

the Fed's policy in plain English: Debt-serfdom is good because it enriches the banks.

Wed, 02/27/2013 - 19:18 | 3283656 km4
km4's picture

David Stockman: "The Capital Markets Are Simply A Branch Casino Of The Central Bank"

Alex: It sounds like what you're saying is that the Fed is effectively paying bankers to stay confident in the Fed, and that the moment that stops – either because the Fed stops paying them or something else shakes their confidence – this all goes down in one big house of cards?

David: Yes, I think that's right. The Fed has destroyed the money market. It has destroyed the capital markets. They have something that you can see on the screen called an "interest rate." That isn't a market price of money or a market price of five-year debt capital. That is an administered price that the Fed has set and that every trader watches by the minute to make sure that he's still in a positive spread. And you can't have capitalism if the capital markets are dead, if the capital markets are simply a branch office – branch casino – of the central bank. That's essentially what we have today.

Wed, 02/27/2013 - 19:20 | 3283660 Jason T
Jason T's picture

In the arogant assholes face.  

Wed, 02/27/2013 - 19:22 | 3283667 azzhatter
azzhatter's picture

Fuck You Bernanke

Wed, 02/27/2013 - 19:27 | 3283682 ebworthen
ebworthen's picture

Bernanke is either a complete delusional fool or an utterly corrupt liar.

There is no in-between.

Wed, 02/27/2013 - 19:29 | 3283696 Cdad
Cdad's picture

Well...he could be a plug in hybrid, couldn't he?

Wed, 02/27/2013 - 19:48 | 3283753 nope-1004
nope-1004's picture

He's a corrupt liar.  He knows the real rate of inflation, and knows that the definition of it has been changed over the years to fool the public.  But, I'd also argue that corrupt liars are pretty dumb people, because their lies back them up into a corner where eventually they have no option but to admit failure. 


Wed, 02/27/2013 - 20:26 | 3283878 Bastiat
Bastiat's picture

HE was Greenspan's understudy. He's been up to ass in entire bubble era.

Wed, 02/27/2013 - 20:04 | 3283823 Dr. Engali
Dr. Engali's picture

Well it's obvious he is a liar by the way he stammers, but he seemed to be a lot more arrogant in this latest appearance.

Wed, 02/27/2013 - 21:57 | 3284139 1984
1984's picture

When it becomes serious, you have to lie.

Wed, 02/27/2013 - 19:29 | 3283698 chump666
chump666's picture

Inflation leads us to war.


Wed, 02/27/2013 - 19:31 | 3283702 TrustWho
TrustWho's picture

Be fair to the Wizard, he has crushed wages!

Wed, 02/27/2013 - 19:33 | 3283708 Ban KKiller
Ban KKiller's picture

Went shopping at Albertsons. Noticed that the donut/pastry section has much smaller donuts and apple fritters. As I had a slight addiction to these rascals once upon a time I know they are smaller. No inflation just smaller products, beauty! The fruit and veggies were higher. Ben lied. I vote he is utterly corrupt and is fooling the people. Well, some people. Didn't buy the pastries. 

Wed, 02/27/2013 - 23:33 | 3284383 akak
akak's picture

Just wait till they start breeding 2" diameter apples, 4" long celery, and 5" heads of lettuce, and selling it all by the piece.

Wed, 02/27/2013 - 19:34 | 3283711 MoneyThangs
MoneyThangs's picture

Without Bernanke civilization would not even exist after 2008, if anything he has allowed us to live for 5 more years. It is time for ZH readers to realize that the Fed has created a better world for all us. So instead of complainning why not send a letter to Dimon, Blankfein, and Bernanke a big thank you letter and you may want to slip in at least 20$ to show your appreciation, you would not be here without them.

Wed, 02/27/2013 - 19:48 | 3283767 Bastiat
Bastiat's picture

A big thank you?  I hope his cook peckerwhips his breakfast crepe.

Wed, 02/27/2013 - 20:04 | 3283820 nmewn
nmewn's picture

You've really got to work on your

Wed, 02/27/2013 - 21:03 | 3283962 Stuffs And Stuff
Stuffs And Stuff's picture

I'm sure these fine gentlemen know how worthless their monopoly money is going to be when Bernanke's finished with it.

So why not send them a nice store of value instead?

I'm sure they'll appreciate it.

Wed, 02/27/2013 - 19:38 | 3283717 Albertarocks
Albertarocks's picture

"... on the other hand, my inflation record is the best of any Federal Reserve Chairman in the post-war period."

Honestly, I don't think the man is even cognizant of the fact that it's not 'his' record, it's the record that's evolving because the god damned deflation genie is now out of the bottle. Bernanke is just trying to calm it down by feeding it money. And that genie is a direct result of the stupid bankers flooding the entire globe with debt that has to be repaid. The piper is here and Bernanke thinks he's here to play a fucking melody while the bankers dance around their warlock bonfire.

I wonder if that man even knows which of his bodily orifices he's supposed to stuff his food into. Probably tried to stick a plate of bacon and eggs up his own ass this morning because shit is certainly coming out the top end.

Wed, 02/27/2013 - 19:40 | 3283736 miker
miker's picture

Give the guy a break!  He's just trying to hold the whole mess together.  He didn't create the whole mess; it has been building over many decades.  And, a lot of the mess is due to us; the American people.  So don't give me these rants about he's to blame.   We're all to blame.  Me included.

Wed, 02/27/2013 - 19:51 | 3283779 adr
adr's picture

Unless there's a sarc tag I say fuck you. I have created $250 million in sales from physical products over seven years from ideas in my head. REAL TANGIBLE SALES. Since I work for a private company I don't get to sell off shares to enrich myself. I get paid a salary and support my family.

Anyone that puts a dollar in the Wall Street casino is to blame. But not the millions of productive citizens that are being destroyed by those who wish to create wealth without labor.

Without Ben and the Ponzimatic, I could still create real products of worth. People still need tangible goods. They don't need financialized slips of paper that magically increase in value because some fucking banker shoves a ton of quotes through a computer.

Wed, 02/27/2013 - 19:58 | 3283803 Dr. Engali
Dr. Engali's picture

Bullshit. A lot of us have been fighting against this crap for a big portion of our lives. To say it falls on all of us is a crock of shit.

Thu, 02/28/2013 - 09:20 | 3285261 Vooter
Vooter's picture

Tell it to the guy wearing the hood and carrying the big ax...

Wed, 02/27/2013 - 19:46 | 3283756 SleepingBear
SleepingBear's picture

Wait I'm confused, Prof. Krugman told me easing doesn't affect comodities

Wed, 02/27/2013 - 19:56 | 3283795 Dr. Engali
Dr. Engali's picture

I can stop inflation in 15 minutes.

The Bernank

Wed, 02/27/2013 - 20:12 | 3283840 nmewn
nmewn's picture

It is always and everywhere a monetary phenomenon.

So incredible to think about after all these years Doc...the value of that 64 quarter still buys what it bought coming up on forty years ago now.

The iron rule still holds, you save in gold & gamble & speculate with paper.

Wed, 02/27/2013 - 20:30 | 3283891 Dr. Engali
Dr. Engali's picture

Take the equivalent weight of that quarter back to the Roman Empire and it will have had the same buying power as it does now. Some things are a constant.

Wed, 02/27/2013 - 19:59 | 3283807 NoWayJose
NoWayJose's picture

Place a lot of this onto his staff - Bernank may only be seeing the adjusted and fudged data his staff feeds him. This is the chart that needs to be pulled out when he testifies - its probably the only time he will get to see it.

Wed, 02/27/2013 - 20:00 | 3283810 bjfish
bjfish's picture

But he knows he is the best 'cuz blankfuck & Dimon told him so.  Who else matters?

Wed, 02/27/2013 - 20:06 | 3283828 bidaskspread
bidaskspread's picture

Why go linear when you can go parabola!! Got to love X to the sixth power.

Wed, 02/27/2013 - 23:35 | 3284388 akak
akak's picture

Pretty soon it's all going to go to X factorial.



Wed, 02/27/2013 - 20:29 | 3283889 perelmanfan
perelmanfan's picture

Yes. It used to be basic economics that "monetizing the debt" was an egregious act committed only by corrupt regimes. The boiling frog is a tired metaphor, but it's manifestly and disturbingly on display here; makes one wonder if the human capacity for habituation to madness really is infinite.

Wed, 02/27/2013 - 20:31 | 3283894 Herdee
Herdee's picture

Krugman,I knew it,it's those damn speculators again...

Wed, 02/27/2013 - 20:40 | 3283920 Catflappo
Catflappo's picture

No, the things you outline are not remotely used by consumers and therefore don't show up in CPI - the excellent measure used by the Fed.

Wed, 02/27/2013 - 21:18 | 3284031 Whatta
Whatta's picture

Why is the CPI line so uniform of a ramp when everything else is looking more bubbly-parabolic?

Wed, 02/27/2013 - 21:25 | 3284051 RopeADope
RopeADope's picture

Re-index this on a global per capita basis and it would be more accurate.

Wed, 02/27/2013 - 21:53 | 3284128 tempo
tempo's picture

Its not Ben's fault. Robots (automation) eliminate millions of net jobs each year worldwide. To keep a lid on the declining std of living for millions of angry folks, entitlement funds must increase. This is Ben's, Jamie's and GS's job. The job is never ending. Commodity inflation is exported to underdeveloped countries w/o safety net but that just a cost of the treatment. Its like have a deadly form of cancer where the treatment keeps you alive but still very sick. Excess funds from the central bankers must be invested so most equities move to all time highs. Its not bad for the lucky few with appreciating home and 401K stock prices. Too bad for the large majority. But there is no alternative.  It could be much worse.

Thu, 02/28/2013 - 09:16 | 3285253 Vooter
Vooter's picture

"This is Ben's, Jamie's and GS's job."

Says who?

Wed, 02/27/2013 - 22:03 | 3284149 dirtbagger
dirtbagger's picture

Bernake thinks the market is the economy.   Problem is the market has become a casino and the FIRE people bankrupted the economy.

Wed, 02/27/2013 - 22:16 | 3284184 balz
balz's picture

This is bullish for tea.

Wed, 02/27/2013 - 22:36 | 3284219 ceilidh_trail
ceilidh_trail's picture

Somewhere, a village just located it's idiot when bernanke testified.

Wed, 02/27/2013 - 22:44 | 3284239 working class dog
working class dog's picture
 THE SELL SIGNAL FROM GOD FOR  THE BULL MARKET IN BONDS Fed's Fisher floats Texas century bond to exploit low rates

 NEW YORK | Wed Feb 27, 2013 4:29pm EST

NEW YORK Feb 27 (Reuters) - A top Federal Reserve official who has fought the U.S. central bank's efforts to push down borrowing costs on Wednesday suggested his home state should take advantage of historically low interest rates to borrow for the next 100 years.


"Might it make sense for Texas to issue ultra-long bonds at currently prevailing ultra-low rates to finance the state's longer-term infrastructure needs?" Dallas Fed President Richard Fisher said in remarks prepared for delivery at Columbia University. "I have in mind a Texas Century Bond....If ever there were a window for such an issuance, it surely would be now."


Fisher is among the Fed's most vocal opponents of the central bank's latest round of quantitative easing, warning that the bond buying will do little to boost job creation and could in fact slow the recovery.


But his discomfort with super-easy monetary policy has not stopped him from thinking that his own state might do well to exploit it.


Mexico, Coca Cola and the Massachusetts Institute of Technology are among a handful borrowers that have issued century bonds in recent years in a bid to capitalize on low rates.


"The public benefit would come from saving on interest payments that will inevitably rise over time from their unprecedented low levels - certainly sometime in the next 100 years - meanwhile financing highways, water projects, universities and the like that will be needed to continue serving the state's growing population and expanding economy," Fisher said.

Thu, 02/28/2013 - 01:42 | 3284728 Stares straight...
Stares straight ahead's picture

"If ever there were a window for such an issuance, surely it would be now"

When I first read the quote, I thought it said "widow" not window. Though at first glance, this may appear to be a great idea for Texas, a lot 'o investors will be screwed for the next 100 years. Most likely old widows!

Wed, 02/27/2013 - 22:55 | 3284272 goldenbuddha454
goldenbuddha454's picture

Bernanke can claim the lowest inflation rate as a fed chairman only because he's been able to change the rules to fit his own devices.  If we were to include "Transitory" items like food and gas in his inflation figures would it really still show only 2%?  Really?

Just Sayin!

Thu, 02/28/2013 - 01:32 | 3284707 Fish Gone Bad
Fish Gone Bad's picture

Someone might want to email the graph to Corker.

Thu, 02/28/2013 - 01:32 | 3284708 Lord Of Finance
Lord Of Finance's picture

This is just a p.r. stunt for the fed. Get asked softball questions by politicians and then when a politician shows some rare spine and goes 'Ron Paul' on their his ass, all the fed chairman has to do is lie, then stall and tap dance until the politicians time expires.


   Just watch all the exchanges between Paul and Greecespan. The crumb tells a lie and then just simply does not answer the follow up until the gavel sounds and the words, "your time is up Dr. Paul" are spoken.


 After watching just a couple of those exchanges years ago made me realize it is all a dog and pony show. The pony takes a shit and the dog politicians eat it.

Thu, 02/28/2013 - 02:35 | 3284802 Super Broccoli
Super Broccoli's picture

there must be a mistake, Benny told us inflation was "slightly above target"

Thu, 02/28/2013 - 03:27 | 3284860 q99x2
q99x2's picture

Succinct. A picture (in this case a graph) is worth a thousand words.

Or, I guess that would be a deflationary graph of inflation.

Thu, 02/28/2013 - 04:59 | 3284940 hooligan2009
hooligan2009's picture

i think the graph would be even less supportive of 2% inflation ben if it was rebased to 100 at the point of ben's take over on 1 feb 2006..with annualised 6 year inflation numbers on the right hand axis...its kind of hard to read that all prices are up and looks like some have actually gone down.

Thu, 02/28/2013 - 06:11 | 3285000 lemarche
lemarche's picture


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