QE Whistleblower Warns "We Are Eerily Similar To 2008"

Tyler Durden's picture

Following his inconvenient truthiness yesterday, Andrew Huszar appeared on Bloomberg TV today (having dismissed the comic-book-written discussion he faced in CNBC's Fast Money yesterday). As usual Bloomberg gave him more time to speak, listened, and challenged some of what he said, but we were struck by the man-who-ran-the-Fed's-mortgage-book's points that "we are eerily similar to 2008." Simply out, he implores, "the structure of our economy has not changed," and his apology (on behalf of the Fed), is because the Fed "helped squander an opportunity to see change in America." The fact of the matter, this was folly, "The Fed does not have the ttols to help the economy."

 

What else could Bernanke have done?

QE1 at the time was defensible... but as we progressed, very quickly we began to see it was not working

So why wasn't a decision made then to change course?

That's a very good question and why I felt compelled to write this apology to America...

 

This was a program that was devised to help mortgage lending in America... mortgage lending decreased in that time...

 

Instead what we saw was massive Wall Street earnings

When should the Fed have stopped?

The Fed should have stopped after QE1 - when it was clear it wasn't working - instead it has bought $2.5 trillion more bonds and put itself in a position where the exit is very uncertain...

 

...

 

Ultimately the tools [the Fed] has at its disposal don't work, and what it has done instead is enable a "crisis-driven" political system

 

Must-watch follow-up to his Op-Ed... Ensure you listen to the last 60 seconds... "What the US needs is reform and change - not more easy money."

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HedgeAccordingly's picture

Gander this chart.... 400 more SP points? http://hedge.ly/1fCbWyG

NotApplicable's picture

Gee, another "Oops, we did it again" confession from the newb du jour.

The beast marches on.

schoolsout's picture

Yea, I don't buy it

 

plausible deniability is the name of the game in plots such as these

King_of_simpletons's picture

This guy is trying to sell a book, right ? Everything makes sense now.

LetThemEatRand's picture

He's trying to sell three things:  1) that the Fed had good intentions in the first instance (it did not); 2) that when the SHTF he was one of the smart ones who called it (they always trot out guys like this before something happens, to make the point that there was disagreement among those "trying to help us"); and 3) a book (yes).  

markmotive's picture

If you understand banking you'll understand how the system is bound to collapse.

Chris Martenson and Mike Maloney on the biggest scam in the history of mankind:

http://www.planbeconomics.com/2013/11/chris-martenson-and-mike-maloney-o...

new game's picture

THE "TOOLS" ARE POLICY! unfettered markets, unmanipulated, but regulated by citizen serving honest people.

it is the money trail.

one policy that could be the biggest change would be the corp tax structure on foriegn produced goods.

enuf as iT aint gonna happen folfs- prepare for the worst, it is beyond retrival-even if the "right" policy was implimented fucking YESTERDAY...

new game's picture

"I have great respect for the Fed" what a fucken posser- done listening to this gilt ridden mutha fuck right there...

ponzi debt to contol syst, with very little one can do, scheme, until people wake up and take back the system...

hopeless til, violence to overcome the threat of violence(to comply)ie(rad maryjane posts). simple-don't confuse it up in your mind!

GetZeeGold's picture

 

 

"I have great respect for the Fed"

 

Most cult members do.....it's sorta the rules.

new game's picture

cutting the chase "are you ready for some violence" and not the monday night type.

smlbizman's picture

i loved how the bimbos were trying to give him info that they must have gotten from cnbc...they really think they know something...

TruthInSunshine's picture

I obviously haven't polygraphed him, but I actually tend to think he's sincere in his comments (just a gut feeling). He's probably partially motivated to be able to say that at least he came clean before it all comes crashing down again, too.

We are a combination of Japan & the U.K. at this point; our economy is undergoing a structural hollowing out in real value-added productivity similar to the course the U.K. has taken, where the FIRE portion of the economy suppresses actually net-beneficial sectors of the economy (e.g. high tech manufacturing) because the financial lobby has grown so powerful and because this is the only way a net-debtor nation can keep from having to reinvent the structure of its economy & deal with its core debt crisis (accumulated & continuing) in a way that's similar to kicking the can; IOW, instead of addressing the core, systemic disease now, which would require taking some bitter medicine that would inevitably cause many people to suffer deeply over a specific time frame, it's politically easier to sell out to the banking/financial lobby, and simmer the frogs slowly, reducing their standard of living in a consistent and persistent manner, hoping that debt-derived direct transfer payments to the increasingly impoverished soften the blow and keep the shrinkage of the middle class to a level that prevents some form of political and/or societal revolution.

It goes back to something Keynes wrote, ironically:

"By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth. Those to whom the system brings windfalls, beyond their deserts and even beyond their expectations or desires, become ‘profiteers,’ who are the object of the hatred of the bourgeoisie, whom the inflationism has impoverished, not less than of the proletariat. As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”

--John Maynard Keynes on inflation in The Economic Consequences of the Peace (p. 235-6)

HardAssets's picture

TruthInSunshiine - you actually believe its about 'economics' ?

Its about robbery.

The various 'isms' are just a smoke screen.

 

TruthInSunshine's picture

I think the quote from Keynes I cited along with the concept/mechanics of Harvest as elucidated in 'The Creature From Jekyll Island' are essentially what it's all about.

If people can wrap their minds around those two concepts and truly understand the fundamental dynamics they utilize, they're pretty much wise to the scam that is the fractional reserve monopoly fiat economic/banking Ponzi Scheme.

Skateboarder's picture

Human beings are two things: gardeners, and artists, in that order. The true free expression of human development lies in the availability of personal arable land, availability of raw materials and resources, and an open knowledge resource base accessible to everyone. When a human decides to create, whether planting a seed or writing a song, it is usually a good thing. Do not be fooled by destruction masked as creation. The snake is sly.

LetThemEatRand's picture

With every breath we take trying to call it out, we must exhale.  Upon the exhale, the snake constricts further.  

new game's picture

good one! the snake consumes whole bodies...

waits patiently for the next victum.

slide out of his or her old skin to become a new snake-same snake.

same as the old.

"i'm a student of the depression-same snake, new skin...

unrulian's picture

I'll go back to something Maynard James Keenan wrote:

 Some say the end is near. Some say we'll see armageddon soon. I certainly hope we will. I sure could use a vacation from this bullshit three ring circus sideshow of Freaks here in this hopeless fucking hole we call LA The only way to fix it is to flush it all away. Any fucking time. Any fucking day. Learn to swim, I'll see you down in Arizona bay

http://www.youtube.com/watch?v=uCEeAn6_QJo&feature=kp

 

 

SMG's picture

Dear Mr Apologist, turn in your bosses and let's interrogate them.   Keep going until the top of the pyramid is exposed and brought to justice.  Until then you're just trying to deflect blame from your masters.

TheReplacement's picture

One would think these people would start to catch on to the fact that it is all deliberate.  How it will actually play out in the end is yet to be seen but I'll throw out a guess.

The current social-fascism will continue to suck wealth out of the poor and middle class and deposit it all with the rich.  Running along side this effort is the expansion of both dependency on government and government control.  Once the tipping point is reached a real crisis will be initiated.  Government will point the finger at the rich and say 'look at how they have ruined everything.  We need to intervene and save the day like we did in 2008.  After that, game over.

In my theory they are giving the perception of corporatization, fascism.  I believe this is just a means to an end.  Economic power and the resulting blame is being handed to the corps and banks.  The corps and banks are eating this up because they are getting rich today.  What the corps and banks don't realize is they don't actually have any power at all.  The people with guns have the power.  When the time comes the corps and banks will be lined up and shot.  They are the new useful idiots.  Good riddance.  Don't bother digging a hole.  Just dump them in the Indian ocean with Osama as they are no better and deserve no better.

How this plays out on the world stage is beyond me.  I suspect the US will be isolated but not molested.  Who will mess with a superpower armed to the teeth with conventional weapons and weapons of mass destruction?  Unless there is a successful revolution the US will quickly and irrevocably change into a communist dictatorship and scores of millions will be re-educated or buried.  Many more will simply starve.

I always wanted to live through an epoch level event.  Weeee!

jeff montanye's picture

looking back through history, most of the time the people with the actual guns look more like employees and dupes than they look like the ones in control.

Arbeit_Macht_Frei's picture

The FED and QE is just like the Manhatten Project. Guys like this and I'd even say Bendonkey are too low level to know what the real goals of the project are (and they'd never believe it anyway), which is to create a blended Marxist/Fascist NWO finally brought about after a massive global crisis, the plan is to first totally destroy all faith in capitalism and after immense global misery, possibly even WWIII the people will demand a new financial model/saviour and in steps Communism V2.

new game's picture

where can i go to avoid the results? deep in the amazon? timbuktoo? any desert? an igloo? hot air ballon with self loofing sun rays and collector? under the ocean? mars? pepetual motion? fucken-eh help me with answer and don't tell anyone where that is...

mrdenis's picture

His I'm sorry was better than the Moozlum's I'm sorry ....but so what 

XAU XAG's picture

Dr Watson

 

"what took you so long Sherlock"?

azzhatter's picture

I love how these assholes pretend they didn't know that all QE does is aid the 1'%ers. This was the plan all along. As GC said- It's a big club and you ain't in it

Deathrips's picture

Imaginary unicorn shit has been fueling this baby since 2008, take away the imaginary (fiat) and we never left.

 

What a dumb fucking bitch.

 

Silver Bitchez!!

 

RIPS

 

Edit: I got junked for imaginary unicorn shit? How the hell does that happen? Yes we are 50x (in paper) worse than we were in 2008, but by the same token its all been imaginary value since 1971? Junk that bitch.

joego1's picture

Silver on sale on on isle 13.

Oldwood's picture

Everyone knows unicorns shit skittles.

Moon Pie's picture

I did not know Unicorns shit Skittles.  I almost blew out a good Cabernet through my nostrils when i read such a supposition/propsition so put by you.   Thanks. 

Must continue...the name "Huzsar" is essentially the same in the Hungarian and would be plainly understood all across Europe as "Hussar", or.."Light Calvaryman".  Knowing as I do a bit about military history...light calvary's main mission was to be either first contact or recon for the larger force, regardless of its structure. 

I hereby posit, by circumstance, fact, and nature of the conditions precedent and otherwise that this fucker is truly a "Hussar", flying up his weather balloons, observing, providing observation, reporting back, and taking notes as to the real assault that is to come. He ain't no Mathias.  No real contrition...actually...the more he talks, the more apologetic he gets.  HE IS ONE OF THEM...make no mistake.

Strategize accordingly.

 

General Moon Pie

 

 

TBT or not TBT's picture

And piss Arizona Iced Tea watermelon fruit cocktail.

Lore's picture

The thinking of these people is upside down. What ever happened to NOT LENDING TO BAD DEBTORS?  WHEN DID FAILURE STOP BEING A PERFECTLY LEGITIMATE OPTION?  What does it take to make people stop thinking in terms of INFINITE EXTENSION OF INFINITE CREDIT?  WHAT WILL IT TAKE TO STOP THIS OUT-OF-CONTROL BANKING MONSTER? It's like talking with "Greens," who twist the concept of "sustainability" into a crusade to stop individuals from making their own decisions.  WHAT MAKES THESE PEOPLE THINK THEY CAN PLAY GOD WITHOUT CONSEQUENCES?  WHEN DID "MARKET" BECOME A BAD WORD?

A slap should go to the guy with the blue tie for interrupting constantly.

yatikto's picture

money is credit.  no credit = deflation

its, a.. how you say.. foo bar?

 

TruthInSunshine's picture

It doesn't matter that they are lending to poor risk borrowers when that which they're lending has no inherent value and costs nothing to produce, and that which they are receiving as security/collateral for this loan of fiat credit has real, inherent value.

In the event of a borrower's default on any particular loan of fiat credit, these member banks will simply be re-supplied with electronic fiat deposits to replace anything they marked as a loss, and at minimum, they already have (for purposes of this case we will keep the numbers conservatively simple) 9 fiat dollars of loans to other borrowers who,for the most part, have pledged assets having real, inherent value, in order to secure their loans of fiat from the bank.

Worse case scenario is that the syndicate bank declares a default, reloaded the thing of actual value purchased with the fiat credit it loaned, and if there's a gap between the nominal value of the thing repossessed and the nominal Vladimir the amount of fiat credit loaned, the bank has a deficiency that they can turn into a money judgment (in some cases not even having to litigate the matter in a court of law).

Sorynn's picture

All of which is well documented by Griffin.

Acet's picture

Deflation means that over time things cost fewer monetary tokens to purchase.

It is the natural way of things in a system which is becoming more productive (i.e. more things can be done with the same effort) or in other words, when GDP is trully growing.

Deflation benefits and promotes the behaviour of delaying self-reward, which is one of the human traits more closelly correlated with success.

 

Unless what you want is a consumer driven society (with all it's inherent problems of waste, debt servitude, resource overconsumption, etc), then there is no problem in having deflation - quite the contrary: it's a reflection of healthy improvements in production.

new game's picture

still comes back to an idiot signing the line for more credit(debt money creation) and locking us all into this debt servatude system of monetary control. collateral doesn't even mater anymore. create moar debt to make up losses and securitize it and off load it and "keep the system whole" for another day -wow...fed ready and helping to create loses to mop it up. fucken - eh. genius!

Dr. Bonzo's picture

Yep. We've been seriously disenfranchised. I have no suggestions or answers. Buy gold. Buy silver. That's the best we can do.

evokanivo's picture

Are you sure that's all we can do? Isn't it time for someone to throw in another plug for ButtCoin?

new game's picture

good dr. ,there is an answer, but are you willing and able to do the task?

g speed's picture

finally the point is made  ----  +TU  let me add that the winds of change are blowing and remember change is the only constant.

Bay of Pigs's picture

"we are eerily similar to 2008".

No, it's much worse than 2008.

The Gooch's picture

1913, 1929 and 1984, even.

Unprepared's picture

History doesn't repeat, it rhymes with defeat

No, wait a minute, I think I lost the count of my feet

NotApplicable's picture

There is no escape. Mises will not be denied.

BandGap's picture

There is a very simple way out - give the money back.

I said simple, not easy or thinkable. But it would work.

Renfield's picture

I have a better idea. Go Hungarian and lose your central bank altogether.

(Yeah, it's old news from August and I only saw it today so I don't know if it's even true. And it's prolly just more fiat anyway. But to me it was a feel-good story so here it is just for fun.)

Excerpt:

http://americanfreepress.net/?p=12418

Hungary Sheds Bankers’ Shackles August 23, 2013 AFP

• International Monetary Fund told to vacate the country; nation now issuing debt-free money

By Ronald L. Ray

Hungary is making history of the first order.

Not since the 1930s in Germany has a major European country dared to escape from the clutches of the Rothschild-controlled international banking cartels. This is stupendous news that should encourage nationalist patriots worldwide to increase the fight for freedom from financial tyranny....

- See more at: http://americanfreepress.net/?p=12418#sthash.0o9wq5Xu.dpuf

PhilofOz's picture

Wow!! Where was I when this news came out in August? "dared to escape....." is so true, Isn't this Hungarian Prime Minister next in line for an assassins bullet? Scary is the power of the Rothschild empire!