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What An Ex-FOMC Governor Really Wants To Tell You About The Fed

Tyler Durden's picture


Submitted by F.F.Wiley of Cyniconomics blog,

Hunting season is off to a good start this week, and I’m not just talking about deer hunting. It seems that former Fed officials declared open season on their ex-colleagues.

First, Andrew Huszar, who once ran the Fed’s mortgage buying operation, let loose in yesterday’s Wall Street Journal. Huszar apologized to all Americans for his role in the toxic QE programs.

And then today, the WSJ struck again, this time with an op-ed by former FOMC Governor Kevin Warsh.


Instead of excerpting the Huszar essay, we’ll only share the apt words of commenter Ernest Moosa, who wrote:

Every reader needs to understand and grasp what is being said here. We have been on the wrong economic path for five years, and without the desired results, our leadership says “FULL SPEED AHEAD”. We have wasted so much time and money that future generations will point to us and say this is how a great country can be destroyed in less than a decade with no shots even being fired. Deplorable.

Moosa hit the nail on the head, and we recommend reading the op-ed in its entirety if you haven’t already done so.

As for Warsh’s editorial, it was tough to read without wondering what he’s thinking. Warsh is a former Morgan Stanley investment banker whose 2006 to 2011 stint on the FOMC spanned the end of the housing boom and the first few years of “unconventional” policy measures. After such a solid grounding in the ways of the Fed and Wall Street, he recently morphed into a critic of the status quo. His criticisms are welcome and we believe accurate, but they’re also oh so carefully expressed. They’re written with the polite wording and between-the-lines meanings that you might expect from such an establishment figure. He seems to be holding back.

So, what does he really want to say?

Here are our guesses, alongside excerpts from the editorial on each of nine topics that Warsh covered:

Quantitative easing

“The purchase of long-term assets from the U.S. Treasury to achieve negative real interest rates is extraordinary, an unprecedented change in practice since the Treasury-Fed Accord of 1951.

The Fed is directly influencing the price of long-term Treasurys—the most important asset in the world, the predicate from which virtually all investment decisions are judged. Earlier this year the notion that the Fed might modestly taper its purchases drove significant upheaval across financial markets. This episode should engender humility on all sides. It should also correct the misimpression that QE is anything other than an untested, incomplete experiment.”

What he really wants to say:

We’d all be better off if the central banking gods (myself included) hadn’t been so damn arrogant to think that we actually understood QE. We don’t, and it never should have been attempted.

The Fed’s focus on inflation

“Low measured inflation and anchored inflationary expectations should only begin the discussion about the wisdom of Fed policy, not least because of the long and variable lags between monetary interventions and their effects on the economy. The most pronounced risk of QE is not an outbreak of hyperinflation. Rather, long periods of free money and subsidized credit are associated with significant capital misallocation and malinvestment—which do not augur well for long-term growth or financial stability.”

What he really wants to say:

The inflation target is stupid. It’s not the CPI that’s killing us, it’s the credit booms and busts. The best way out of this mess is to lose the inflation target and go back to the old-fashioned approach of “taking the punch bowl away when the party gets going.”

Pulling off the exit from extraordinary measures

“[T]he foremost attributes needed by the Fed to end its extraordinary interventions and, ultimately, to raise interest rates, are courage and conviction. The Fed has been roundly criticized for providing candy to spur markets higher. Consider the challenge when a steady diet of spinach is on offer.”

What he really wants to say:

Pundits who praise the courage of our central bankers are clueless. The true story is that we consistently take the easy way out. If the current cast of characters wanted to show courage, they’d man up and replace the short-term sugar highs with long-term thinking.

The Fed’s relationship to the rest of Washington

“The administration and Congress are unwilling or unable to agree on tax and spending priorities, or long-term structural reforms. They avoid making tough choices, confident the Fed’s asset purchases will ride to the rescue. In short, the central bank has become the default provider of aggregate demand. But the more the Fed acts, the more it allows elected representatives to stay on the sidelines. The Fed’s weak tea crowds out stronger policy measures that can only be taken by elected officials. Nobel laureate economist Tom Sargent has it right: ‘Monetary policy cannot be coherent unless fiscal policy is.’”

What he really wants to say:

And if we don’t man up, you can count on Congress to continue with its egregious generational theft and destroy our nation’s finances, just as me, Stan and Geoff have been warning.

Who benefits from QE and who doesn’t?

“Most do not question the Fed’s good intentions, but its policies have winners and losers, which should be acknowledged forthrightly.

The Fed buys mortgage-backed securities, thereby providing a direct boost to balance sheet wealth of existing homeowners to the detriment of renters and prospective future homeowners. The Fed buys long-term Treasurys to suppress yields and push investors into riskier assets, thereby boosting U.S. stocks.

The immediate beneficiaries: well-to-do households and established firms with larger balance sheets, larger risk appetites, and access to low-cost credit. The benefits to workers and retirees with significant fixed obligations are far more attenuated. The plodding improvement in the labor markets offers little solace.”

What he really wants to say:

Unbelievably, my ex-colleagues still don’t acknowledge their policies are killing the middle class to the benefit of the plutocracy. Their silence on this is wholly unacceptable and has to stop (and so do the policies).

Domestic versus global policy considerations

“[T]he U.S. is the linchpin of an integrated global economy. Fed-induced liquidity spreads to the rest of the world through trade and banking channels, capital and investment flows, and financial-market arbitrage. Aggressive easing by the Fed can be contagious, inclining other central banks to ease as well to stay competitive. The privilege of having the dollar as the world’s reserve currency demands a broad view of global economic and financial-market developments. Otherwise, this privilege could be squandered.”

What he really wants to say:

We really need to climb out of our shell and look at things from a global perspective. The rest of the world knows that we’re selling a bill of goods and won’t continue buying it forever. If we don’t change, you can say goodbye to the dollar.

Forward guidance

“Since QE began, Fed policy makers have tried to explain that asset purchases and interest rates are different. Hence their refrain that tapering is not tightening, and that very low interest rates will continue after QE. Investors do not agree. Once the Fed begins to wind down its asset purchases, these market participants are likely to reassert their views with considerable force.

Recently, the Fed has elevated forward guidance as a means of persuading investors that it will indeed keep interest rates exceptionally low even after QE. Forward guidance is intended to explain how the central bank will react to incoming data. Fed projections for example, may show below-target inflation and a residual output gap justifying very low interest rates several years from now. But words are not equal to concrete policy action. And the Fed hasn’t received many awards for prescience in recent years.”

What he really wants to say:

Forward guidance is a load of crap. First, you won’t convince the market of any of your dumb ideas. Investors can and will think for themselves. Second, talk is cheap. And talk that’s based on the Fed’s ability to foresee the future? C’mon now, that’s ridiculous.


“[T]ransparency in communications about future policy is not a virtue unto itself. The highest virtue is getting policy right. Given manifest uncertainties about the state of the economy, oversharing policy deliberations is not useful if markets are led astray, or if public commitments reduce policy makers’ flexibility to call things the way they see them.”

What he really wants to say:

Transparency, shmansparency. I’ve had it up to here with taper, untaper, maybe taper, maybe not taper. I’ll trade a transparent central bank for one that knows what it’s doing any day.

Obama’s nomination of Janet Yellen as the next FOMC chair

“The president has nominated a person with a well-deserved reputation for probity and good judgment. The period ahead will demand these qualities in no small measure.”

What he really wants to say:

The president made a bad choice.


These are only our guesses, not actual thoughts from Kevin Warsh, who hasn’t told us what he really wants to say.  We don’t even know if he hunts.  (We’re guessing no.)


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Wed, 11/13/2013 - 15:36 | 4151163 scrappy
scrappy's picture

What he was really trying to say.

"I can't sleep at night, please don't kill me."

Cover meet Ass

Wed, 11/13/2013 - 15:39 | 4151182 uncle.bigs
uncle.bigs's picture

Dude married into the Estee Lauder fortune.  He sleeps quite well at night on a bed of fresh greenbacks and lavender scented pussy.

Wed, 11/13/2013 - 15:46 | 4151226 El Hosel
El Hosel's picture

If it smells like cologne, leave it alone... If it smells like fish... well, you know the rest.

Wed, 11/13/2013 - 15:59 | 4151290 Titus
Titus's picture

Just another asshole who needs to start sucking cock rather than getting serviced by $1000 hookers.

Wed, 11/13/2013 - 16:02 | 4151311 So What
So What's picture

something bigger is afoot when the jews and their servants are turning their back on their overlord.

Wed, 11/13/2013 - 16:22 | 4151397 economics9698
economics9698's picture

The time to hang these MF's must be getting close.

Wed, 11/13/2013 - 16:25 | 4151399 New England Patriot
New England Patriot's picture

What he really wants to say:


"By the time the shooting stops, nobody is going to remember that there was a Fed."

Thu, 11/14/2013 - 07:34 | 4153333 johny2
johny2's picture

They are realising that the truth is being revealed, exponentially. Fact that the war in Syria had to be postponed due to the huge oppostion of the populace in the UK, must have been a huge shock. The Internet is too big to buy and control, unlike the old fashioned MSM.

Wed, 11/13/2013 - 16:43 | 4151480 outamyeffinway
outamyeffinway's picture

Well it's settled then. No hyperinflation for us. Hyperinflation is only for the assets of the .01%. We boil in the stew for the rest of our lives. How exciting :\

Wed, 11/13/2013 - 16:31 | 4151415 Kirk2NCC1701
Kirk2NCC1701's picture

Either Kevin was all Warshed up before he left, or he will be after this article.

But at least he's rich, and will be comfy, cozy and safe when TSHTF.  He and his shotgun are... pumped.

Wed, 11/13/2013 - 16:07 | 4151334 Colonel Klink
Colonel Klink's picture

If it smells like cut it's head off, then bury it in the dump?

Wed, 11/13/2013 - 16:25 | 4151404 economics9698
economics9698's picture

"If it sleeps like cologne, better leave it aloneIf it smells like fish, eat it like a dish!!!"

Wed, 11/13/2013 - 16:37 | 4151445 Kirk2NCC1701
Kirk2NCC1701's picture

"If she smells sweet of cologne, give her the bone.  If she smells like a fish, don't eat that dish!" -Kirk

These are binary decisions regarding health, hygiene and potentially 'Risky Business'.

Wed, 11/13/2013 - 15:49 | 4151231 RaceToTheBottom
RaceToTheBottom's picture

I did not know that, but once you said that, it becomes believable.  Everything the guy says sounds like he is trying not to make a mistake rather than do the right thing. 

  • He marries what someone told him he should want.
  • He works for a bankster firm because it was something he should do.
  • Now he writes this info, so he can say I warned them....

Bright, Balless fluff-boy, deserves to be fluff-boy for Bubba in the big house.

Wed, 11/13/2013 - 16:25 | 4151403 Groundhog Day
Groundhog Day's picture

If i could ask just one question to either of these fuckers it would have to be:

Do you think GOLD and Silver are money?

Thu, 11/14/2013 - 02:34 | 4153202 Deo vindice
Deo vindice's picture


Thu, 11/14/2013 - 00:39 | 4151254 DeadFred
DeadFred's picture

What he's really telling you is that there's war in the nether regions and the White Dragons are taking on the Cabal. TPTB don't play we'll with others.

Wed, 11/13/2013 - 15:45 | 4151220 XenoFrog
XenoFrog's picture

All is well until it isn't. Then it gets really bad really quickly.

Thu, 11/14/2013 - 07:26 | 4153329 starfcker
starfcker's picture

look at what else is going on at the same time. the purge of top military brass and they just set down some secret service, all for a variety of supposed indescretions. with an all powerful NSA and DHS and XE, do you really think guys like that (the ones with the guns) aren't under more scrutiny than anyone else? google is a mutherfucker. log on to anything like this place, you're not going to be trusted with a gun anymore. you gotta go. the fears of an inside job probably top the list of bad outcomes these rodents fear. some of these guys might have actually believed we could have a service economy, with no production and it could work. they are figuring out not enough jobs cutting bill gates's grass or giving holder facials to keep everyone busy, and they are getting nervous

Thu, 11/14/2013 - 03:42 | 4153238 Hobbleknee
Hobbleknee's picture

Exactly.  I would hardly call these apologetic propaganda pieces "hunting season."

Wed, 11/13/2013 - 15:38 | 4151174 Running On Bing...
Running On Bingo Fuel's picture

Commercials are short and getting squeezed to the point of tears. A call to their ex-FED buddies, a couple hookers, kilo of coke, and an envelop of cash and the ex-feddies sing like chicken little.



Wed, 11/13/2013 - 15:38 | 4151176 NOTaREALmerican
NOTaREALmerican's picture

Hey,  this guy makes it sound like the top 10% aren't entitled to keep their standard of living.

We didn't spend the last 60+ years creating all these Big-Gov and Big-Corp scams for nothing.  

Wed, 11/13/2013 - 15:55 | 4151271 Ness.
Ness.'s picture

I'm an excellent driver...

I'm an excellent driver...


Uh oh, fifteen minutes to Judge Wapner...



Wed, 11/13/2013 - 15:41 | 4151192 buzzsaw99
buzzsaw99's picture

Rats leave the ship then squeal like rats.

Wed, 11/13/2013 - 15:50 | 4151249 Overfed
Overfed's picture

Shit must be getting real close to the fan.

Wed, 11/13/2013 - 20:50 | 4152455 Anusocracy
Anusocracy's picture

This is normal.

In any gang, former lower thugs will often exhibit contrition for what they've done. It's fairly common with ex-military.

Thu, 11/14/2013 - 02:32 | 4153200 Offthebeach
Offthebeach's picture

He shouldn't retire to Mexico, and should avoid people with ice climbing axes.
( not that a feddy with a ice axe in its reptile skull is a bad thing. )

Wed, 11/13/2013 - 15:41 | 4151197 bagehot99
bagehot99's picture

What he really, really wanted to say:

This fucker is gonna blow.

Wed, 11/13/2013 - 16:44 | 4151488 NoDebt
NoDebt's picture

Or perhaps what he was really saying was "I'M gonna blow.  Out the door to my next job, where I pretend I hated this stuff because it's fashionable to say so."

Wed, 11/13/2013 - 15:43 | 4151203 ziggy59
ziggy59's picture

What took him so long?

Wed, 11/13/2013 - 15:43 | 4151204 ebworthen
ebworthen's picture

What he really wanted to say:

"We had absolutely no fucking idea what we were doing, but we made good coin doing it."

Wed, 11/13/2013 - 15:51 | 4151251 Temporalist
Wed, 11/13/2013 - 15:44 | 4151217 22winmag
22winmag's picture

Just like in Germany at the end of WWII, if you were a Nazi you ran like hell or tried to strike a deal by turning in your former pals.

Wed, 11/13/2013 - 15:47 | 4151233 Hail Spode
Hail Spode's picture

In recognition of his contrition, when the time comes perhaps this one wiil get hung with a new rope, and in a town that has cute lamp posts.  Maybe Hershey, PA.

Wed, 11/13/2013 - 15:49 | 4151241 Hail Spode
Wed, 11/13/2013 - 16:32 | 4151426 NoDebt
NoDebt's picture

Mmmmmm.... chocolate.  

I was there a couple weeks ago.  Indeed, the lamp posts do look sturdy enough for such duty.  

Wed, 11/13/2013 - 16:09 | 4151345 fooshorter
fooshorter's picture

Hung?! Hung?!! I guess there is waiting list for the gullotine, but Im sure we can work him in.

Wed, 11/13/2013 - 15:48 | 4151235 piceridu
piceridu's picture

As LOP aptly says: "Roll out the guillotines".

Wed, 11/13/2013 - 16:04 | 4151319 Kirk2NCC1701
Kirk2NCC1701's picture

As I indicated the otehr day, had a T-Shirt made that says:

ROTMFG!  ENWC.  [big font]

* Rool Out The MF'ing Guillotines, Else Nothing Will Change [small font]

Thu, 11/14/2013 - 02:38 | 4153203 Deo vindice
Deo vindice's picture

Be ready for some questions.

People may have a bit of trouble understanding how you 'rool' out something.

Wed, 11/13/2013 - 15:50 | 4151238 Temporalist
Temporalist's picture

How dare them attack Time's Person of the Year 2009!!!  Obama was 2008 and 2012 so he must be doing something right!  I'm never reading ZH again because they are just mean and wrong and conspiracy terrorists fear monger hater 1%er Ayn Randian Tea Party gold misers who can't sail, kayak, row, or pilot any water vessel for shit!

Wed, 11/13/2013 - 15:54 | 4151269 SWCroaker
SWCroaker's picture

You forgot "silver grubbing".        We always get left out.

Wed, 11/13/2013 - 15:49 | 4151243 imbtween
imbtween's picture

I'm sure Mr. Warsh's deep feelings of contrition will sway the hungry mobs and they will not eat him.

Wed, 11/13/2013 - 15:51 | 4151252 rustymason
rustymason's picture

A people persecuted for over 2000 years is doing something wrong.

Wed, 11/13/2013 - 15:54 | 4151260 ebworthen
ebworthen's picture

And God save us all; the Mercedes Santa commercials are playing, along with the countdown to Christmas and the Ouija board predictions about holiday sales - and the "you're a deadbeat parent if your little kids don't get a new iPad or Cell Phone under the tree" ads!

Wed, 11/13/2013 - 16:26 | 4151407 Kirk2NCC1701
Kirk2NCC1701's picture

On top of that, we are seeing a record number of TV shows dealing with the Occult (Zombies, Witches, Ghosts, Demons, evil Aliens, and "Face Off" where they try to outdo each other to create the most revolting demonic faces and creatures, and claim it as "art").  WTF!?  Has Hollywood/Burbank lost it completely?

Also, as a subtle subtext perversion to the social meme, in the latest episode of Black List, they portrayed libertarian people as 'terrarists', if you paid attention to the wording -- something to the effect of:  "We will go after the corporate crooks who have gotten rich and stolen from the middle class."  The fact that a couple of planes were blown up (one fell from the sky at the start of the show, and another was blown up on the tarmac before it loaded), and they linked active dissent with such acts of blind violence, sets the stage for more PR against all objectors to TPTB.

Clearly, the insinuation is that at some point, smart, well-educated Middle Class people, who decide to take Action, are pre-emptively branded as 'Terrarists'. 

At t-shirt that says "ROTMFG, ENWC (Roll out the... else nothing will change)" will probably land you under active surveillance.  Be sure to wear (flash) it discretely.  ;-)

Wed, 11/13/2013 - 17:04 | 4151605 RaceToTheBottom
RaceToTheBottom's picture

If you challenge the existing norm, no matter how corrupt, you are a 'Terrarists'.  Especially if you are from earth.

Wed, 11/13/2013 - 15:53 | 4151262 Gaurden
Gaurden's picture

stop trusting what rich people say you dumbasses. They fuck us every time and this ones no different than the rest.  

if he wasnt still in their posse he'd probally be dead or at least massively shamed by now.


Wed, 11/13/2013 - 16:40 | 4151463 NoDebt
NoDebt's picture

There's the comment I was looking for.  I'm not buying these guys coming out recently with their crocodile tears, either.  They are working an angle.  Don't know what it is, but there's an angle.

If you knew stuff was going to blow would you plaster your name all over the WSJ or NYT as being associated with it only shortly beforehand?  Hell no.  You'd shut your mouth and sneak out the back through the fire exit, hoping nobody remembers you were there.

"I was for it before I was against it" is the phrase that keeps going through my head.  No way this is 'as-advertised.'  No way the Fed is suddenly going to get religion and do a massive policy reversal.  

Wed, 11/13/2013 - 15:57 | 4151279 TaperProof
TaperProof's picture

The feds 100 year charter is up this year.. they might be throwing in the towel on purpose fully expecting the chaos that will follow.

Wed, 11/13/2013 - 16:41 | 4151470 NoDebt
NoDebt's picture

Stop it.  I'm getting all misty.

Wed, 11/13/2013 - 16:05 | 4151300 ejmoosa
ejmoosa's picture

Thanks for using my quote, F.F. Wiley.  And for posting the article, Tyler.


Wed, 11/13/2013 - 16:04 | 4151318 sixsigma cygnus...
sixsigma cygnusatratus's picture

Bernanke is like your fun Uncle Ben who used to pull quarters out from behind your ear when you were a little kid.  Only Bernanke puts those quarters in the bank for you, for safe keeping.  See, that's where money comes from.


Trouble is, Uncle Ben has now pulled enough quarters to build an effing stack up to Alpha Centauri.

Wed, 11/13/2013 - 16:06 | 4151325 lasvegaspersona
lasvegaspersona's picture

I have to wonder about these kinds of statements. I believe that the point of no return was passed long ago, perhaps even before Clinton, maybe it was 8/15/71 when Nixon broke Bretton Woods. These writers try to claim that some recent action might have prevented our current situation but how? When the debt is 10 times the asset value it would require a jubilee to get back to status quo. Nothing else would have really fixed things, only delayed them.

So I understand the need to 'come clean' but for me that would require a lot more explaining than just stating that QE is very imperfect. It would require a full explanation of why paper wealth is not ever real wealth and that governments always abuse the paper they print because 'We the People' ask for debts to be easier to pay than they would be with truly HARD money.

Fofoa did a wonderful job in laying this out in 'A Return to Honest Money' a couple of years ago. For me that piece explains more than 20 mea culpas.

Wed, 11/13/2013 - 16:09 | 4151339 Colonel Klink
Colonel Klink's picture

I love how SCUMBAGS try to come clean AFTER they've participated in the SCAM.

Wed, 11/13/2013 - 16:19 | 4151379 New England Patriot
New England Patriot's picture

Isn't scum the past-tense of scam?

Wed, 11/13/2013 - 16:59 | 4151572 moonstears
moonstears's picture

Reminds me of W. Wilson's supposed late life FED RES lament...still died a shitbag, IMHO.

Wed, 11/13/2013 - 16:11 | 4151347 Westcoastliberal
Westcoastliberal's picture

Bottom line: Everything is going according to plan, just not the plan you expected.

Wed, 11/13/2013 - 18:51 | 4152081 disabledvet
disabledvet's picture

or the plan they expected either. Again "Keynes never said bail out the banks." He said "bail out the economy." Not an expert but I guarantee there is no chapter on "financialization and it's malcontents."

Wed, 11/13/2013 - 16:13 | 4151359 Dr. Engali
Dr. Engali's picture

What a load of crap. Kevin is condemning QE yet he has no problem with the fact that the fed meddles in the market by manipulating interest rates to begin with. If he were sincere he would condem the fed in its entirety, beginning with the fact that it's an illegal entity ushered in under the cover of darkness.

Thu, 11/14/2013 - 09:50 | 4153546 Hedgetard55
Hedgetard55's picture

+55 kajillion. Bingo. Spot on. Eggsactly. 

Wed, 11/13/2013 - 16:14 | 4151362 Joebloinvestor
Joebloinvestor's picture

I am waiting for someone to say they were just following orders.

Wed, 11/13/2013 - 16:17 | 4151376 Colonel Klink
Colonel Klink's picture

I wouldn't understand it anyways, it's all Yiddish to me.

Wed, 11/13/2013 - 16:17 | 4151371 Kaiser Sousa
Kaiser Sousa's picture


Wed, 11/13/2013 - 16:19 | 4151380 olto
olto's picture

It is interesting, to me, how these recent disclosures focus on policy, rather than intent as per:

"“Most do not question the Fed’s good intentions, but its policies have winners and losers, which should be acknowledged forthrightly."

This guy is 'saying', I believe, that the 'Fed's good intentions' are precisely what should be questioned and not all of this noise(policy) that surrounds it.

He is telling us, probably, unconsciously, what really disturbs him; that he may damn well lose his head over this grand larceny in which he, voluntarily, took part.

It seems to me and many others, that the Fed's intentions as banks and bankers was always to maintain the appearance that they were not insolvent----

and when they discovered that no one in the public audience had the balls to protest their helping themselves to the wealth and future payments of that same public-----------

well, "thieves will be thieves", and they have taken more than all we had as we sat back and watched like it was a tv show. (I am still having trouble with this piece of the story, as in; "What country is this?")

I merely wanted to point out that this 'policy' discussion is simply a red herring to mask the real story that should be told and the crimes they have committed.



Wed, 11/13/2013 - 17:05 | 4151612 Straw Dog
Straw Dog's picture

"Most do not question the Fed’s good intentions"

Earlier in the year in a ZH article Charles Hugh Smith correctly listed the Fed's real dual mandate:

1) Preserve and protect the banking sector's power and share of the national income

2) Preserve and protect the Fed's political and institutional power.

Where are the effing "good intentions"

Thu, 11/14/2013 - 09:51 | 4153549 Hedgetard55
Hedgetard55's picture

+55 bazillion.

Wed, 11/13/2013 - 18:46 | 4152055 honestann
honestann's picture

I agree.  What nobody says are the most important facts.  Like for instance that the primary reason the federal reserve was created was to destroy america.  The predators-that-be in authoritarian-centric europe were terrified at the productivity that even modest liberty had unleashed.  They knew they would be rendered completely beside-the-point in every way, given another century of liberty in north america.

So they unleashed what they knew was the single most destructive force, and the single most authoritarianism-generating force --- central banking.  And sure enough, it worked.

It took 100 years (which I believe they knew and planned), but is now complete.  The USSA is now the biggest catastrophe in history - an utterly predator dominated, authoritarian banana republic with nukes.  Oh, this is sure to work out just great!

The parallel goal of the federal reserve was to misdirect wealth from producers to predators and parasites.  That aspect of the change is also virtually complete.

Today, everyone with power is a predator.  Today, the best, brightest, most productive individuals would rather slit their wrists than allow their time, effort, talents, resources and risk-taking almost exclusively benefit the predators.  Why bother when you know the predators will just steal you blind and destroy or steal your business.

And also "yes" to your observation that "thieves will be thieves".

And also "yes" to your observation that predators spend all their time, efforts and diabolical planning to the various forms of theft and destruction they apply to producers and their wealth.  The unstated but important corollary is, producers have to spend enormous time, effort, focus and attention on their endeavors, and are thus easy prey --- because they are not watching, and increasingly, because nowhere remains that is not dominated by predators.

Those in charge of the federal reserve and government know exactly what they are doing!  The only thing they don't know are the minor details, and one-off outlier events taken by single individuals.  But those minor details have no overall effect, and indeed the predators know how to get the most out of every event, whether it initially looks good for them or not.

One key point you didn't mention, but is very important functionally, is that "destruction" in inherently and metaphysically more potent than "production".  The predators know this fact of reality very well, and take full advantage of it.  Note how little time, effort, talent and resources are required to destroy a house.  At most all one needs is a free book of matches and $5 worth of gasoline, and a $200K or $500K home is destroyed.  How much time, effort, talent and resources are required to build that home?  The answer is clear.  Destruction is tens of thousands to billions of times more potent than production.  Today, a few taps on a keyboard at the federal reserve or JPM or GS can destroy trillions of dollars.  And be very clear - it doesn't phase the individuals at these fictitious entities one tiny bit to destroy one trillion dollars in order to misdirect a few million into their own pockets.

This fact, the vastly greater potency of destruction versus production is something that producers must recognize and respond to if they are to have any chance whatsoever to succeed.  They must find ways to hide their wealth in ways that make the predators incapable of destroying and/or stealing their assets.  And, of course, they need to take steps to prevent the predators from destroying and/or caging their own physical selves too.

Another key is this.  Without going into the long explanation that I've posted on ZH a few times before, the fundamental "story" of mankind is the bifurcation into "predator" and "producer" many thousands of years ago.  Before, man was a predator just like all other large animals, and had no other choice given his nature and his lack of knowledge of production (where "production" means "man taking intentional actions to create what would otherwise have not come to exist").

Before some men (the species, not the gender) learned to be producers, there was not such notion as "ethics".  The modus-operandi of man was the same as other large animals, namely "get away with whatever you can".  It was producers who created the notion of "ethics"... because they needed to.  And they needed to in order to protect what they created from theft and destruction by those men who decided to remain predators.  Otherwise there would be no point of being a producer, because non-producers would just take all the goodies, and leave the producers with nothing (sorta like today, huh?).

So producers created "ethics" to identify the phenomenon of "production" (creation by man), and to distinguish their mode of existence from predators.  In essence it just said "producers will not steal from each other", and "predators of all species including man should be treated the same (namely killed when they attack us producers or the goods we produced).

Stated more precisely, ethics is nothing more than "causality applied to human action".  It is the notion that "every individual should enjoy/bare/suffer 100% of the consequences of his own actions, and enjoy/bare/suffer 0% of the consequences of actions taken by others".

In other words, "human action" is the "cause", and "goods (and damage) he produces" are the "effect"... thus "ethics" is nothing more than a completely natural statement of "causality applied to human action".  Note the complete absence of anything supernatural, or any need of anything supernatural.  So the next time any religious individual tries to tell you "there can't be ethics or morality without a god or super-authority", you can answer him precisely and completely destroy his claim.  In fact, "ethics" and "morality" are 100% natural - they are metaphysics (the fundamental nature of existence).

Amazingly, the most powerful and dominant predators know all this very clearly.  They understand they are utterly and completely dependent upon producers, while producers gain nothing from predators and parasites.  That's why predators spend all their time manipulating producers, and manipulation ideas, concepts and fictions to control producers.  Without the producers to house them, feed them, clothe them and care for them, they are DEAD MEAT.  So they pay very careful attention, and understand all these fundamental facts of reality.

And, of course, spend all their time hiding these most fundamental and important facts of reality from producers.  If all producers clearly understood what we said here, understood the natures of predators and producers, understood the leverage of destruction versus production and how that is held over the heads of producers, understood the modus-operandi of producers versus the ethics of producers... human predators would be gone in the matter of a few days.  The producers would understand with complete clarity that predators of all species must be treated as predators, not producers.  No arrest, no trial, no pretend niceties, just terminal self-defense.

Again, perhaps the most amazing thing about this phenomenon is this.  The predators understand all this... very clearly.  But not one in one-million producers understand this.  And thus the domination of mankind by predators moves forward towards the ultimate, unavoidable conclusions - the end of mankind.

Unless, of course, a few of us get our butts off this planet, and beyond the reach of the predators.  In that case, merely 99.999999% of mankind will perish, plus or minus one digit or so.

Wed, 11/13/2013 - 20:21 | 4152352 olto
olto's picture

Sorry, Honestann,

You are way over my head with all of this doomer-rhetoric: I really cannot track it, nor have I seen in my seven decades sufficient intelligence or discipline in our species to accomodate such a grand plan.

For me, It is much simpler:

We did not see the train coming and it came, anyway

those who had the most to lose acted together and quickly without any thought except THEIR SURVIVAL

and they won

But, we raised no protest except for a few who took over a few cities before the former 'middle class' turned them over to the police as 'vagrants'

we are all now vagrants and we are probably happier being unhappy as we always have been

remember 'human suffering'---there is a reason it is so time-honored

we are ill----we refuse to risk survival---so we live as slaves to a dead machine that will never know a Lazarus

I apologize for being so long and incoherant, Honestann----that damned beatnik blood never quite cleared out of my system

Thanks for your response and reading this reply---I'm going back to the forest for a few days---too excitable here!



Wed, 11/13/2013 - 20:53 | 4152465 honestann
honestann's picture

The reason you haven't seen "sufficient intelligence or discipline" to support such a plan is because you haven't been hanging around top-level predators.  Believe me, they know exactly what is going on, and what they are doing.  The predators have it all over regular folks, and I explained why in the post above.  Read again.

Thu, 11/14/2013 - 00:14 | 4152729 olto
olto's picture

Honestann, I have spent my entire life with the predators and, as a vegetarian-----they are the same as the prey; neither very intelligent nor disciplined.

Plus, I have lived with other mammalian species enough to note a great difference between human predators and predators of other mammal species: rarely in nature do you witness psychos in other species, and I suggest that what you are referring to as 'predators' are, in truth, psychos, of which our species is loaded with, and why we are so destructive and have been for millennia. It is what I refer to as the 'illness'. and it is of epidemic proportions these days.

I do not want to belabor the point, but I have heard your story repeatedly since 1959 and it always has lacked something, though, it is perfectly straight forward in logic. So I do not want to argue---mine is merely a point of view from one who has had a lot of exposure and experience with 'predators'.

I am currently battling the same here and now, and they may well eat me alive, but the game is interesting when played in the jaws of death------sitting here with a weapon on the table in case they come at me again tonight. It is damned tedious living with a gun, but necessary at this time.

And as I write this reply to you, Honestann----I hope that you have a little nightbird outside of your window in the dark, singing as sweetly as I do.

Listen, carefully---can you hear him?

Thu, 11/14/2013 - 07:58 | 4153343 Polonius
Polonius's picture

I, too, have walked among predators and know them well.  You are correct in saying they are neither more intelligent or disciplined.  What they are is cunning and psychopathic.  They don't have to be particularly intelligent or disciplined because, as Ann said, thier M.O. is strategic and tactical destruction which is thousands of times more "effecient" than production.  Go back and re-read Ann's opus, several times if necessary, and think real hard.  At some point you'll get it.  Unless, of course, at heart or at hand, you're one of them.


Off topic:  and really, people... PLEASE stop using the word "me" as the subject:

"And if we don’t man up, you can count on Congress to continue with its egregious generational theft and destroy our nation’s finances, just as me, Stan and Geoff have been warning."

Thu, 11/14/2013 - 21:04 | 4156211 honestann
honestann's picture

I don't think we disagree.  Though maybe sometimes I am not as precise as I should be, I believe I distinguished "top level predators" from "everyday predators".

The masses of "everyday producers" and "everyday parasites" and "everyday anything" are not as clearly aware of these issues that I describe.  What they tend to do is follow the lead of the "top level predators".

And again, believe you me, those "top level predators" know exactly what they're doing.

The masses of "everyday predators" are still extremely harmful, because they are following the dictates and patterns and examples (and orders) that flow from the "top level predators".

So yes.  There are a huge number of less brilliant, less diabolical, less creative predators out there... billions of them in fact.

As for your final comments...

Fortunately for me, I left the USSA about 3 years ago, and spent almost my entire life savings to create an almost entirely self-sufficient place in the extreme boonies.  Since nobody can reach my digs by land vehicle, I do enjoy peace, quiet and solitude every day.  I just wish every other honest, ethical, benevolent, productive individual could too.

Fri, 11/15/2013 - 00:08 | 4156734 olto
olto's picture


I'm starting to like you. I am another who tries to live in solitude with the other species where predatory behavior is confined to the natural food chain----I am very comfortable in this world.

Let us agree that we are suffering(really not) from predatory behavior of other humans, but my point has become that this behavior is not from predators, but rather, from psychotics of which there are more surfacing every day. These individuals are way beyond the edge of illness--which has become the norm in human society and in the US is accepted as 'how things have always been'. This, of course, is bull shit; yes, we have always had psychotics among us, but they have rarely been accepted and excepted as they are today.

This is another sign of a great illness---and among other mammal species an indication of overpopulation along with infertility, territoriality, increased aggression leading to war, and finally, to cannabalism----and maybe I am just wrong----I'm an old man---it happens to old men.

I try to keep my life simple and my needs few---oops! There's that nightbird again, time to go outside and listen to him       thank you for the nice reply

Thu, 11/14/2013 - 02:17 | 4153190 trader1
trader1's picture

Apex predator species occupy the highest trophic level(s) and have a crucial role in maintaining the health of their ecosystems.

Apex predators affect prey species' population dynamics. Where two competing species are in an ecologically unstable relationship, apex predators tend to create stability if they prey upon both. Inter-predator relationships are also affected by apex status.


Wed, 11/13/2013 - 16:23 | 4151400 Shizzmoney
Shizzmoney's picture


"It seems that former Fed officials declared open season on their ex-colleagues."

Hear that sound? It's central bankers being thrown under the bus.

But don't fret, folks. We have another 1-2 years of this shit before the markets (finally) reflect what the real economic situation is.

Thu, 11/14/2013 - 02:49 | 4153210 Offthebeach
Offthebeach's picture

Commies were quibbling for a centry while they killed off a 100 + million and slaved a couple of billion.
The Fed's just started.
A mear tow headed youth.
You should welcome our youthful overlords

Wed, 11/13/2013 - 16:31 | 4151402 bankonzhongguo
bankonzhongguo's picture

Hey, these guys and their buddies made at lot of money on the demise of America and its citizens and their children. That is all that needs to be said about that - except that the Big Media still keeps it a secret

It really does not matter what happens next, or who is in office in 2016.


The fraudsters in the White House and Wall Street, Google and the Fed can all pretend "Sorry." Nobody believes it, especially when you can't even earn a living anymore

As regular people get poorer and creatures like Buffet, Soros, Yellen and Dimon creep around, the NSA can snoop, the Drones can watch you assemble, the country will be sold out to corporate interests in for-profit-killing-schemes like Obamacare.

Sadly, you will only know things are getting better when scum like this and their kids are shoved in ovens.

Maybe it takes two years or 20.

Maybe a million good people will be killed in the process, but until then;

'No Justice. No Peace.'

Wed, 11/13/2013 - 16:27 | 4151409 Kirk2NCC1701
Kirk2NCC1701's picture

Can't wait for the Fed's Centenial fireworks.  The bigger, the better.

Take it any way you want to.

Wed, 11/13/2013 - 17:22 | 4151698 unplugged
unplugged's picture

absolutely - I hope its a 'hot time in the ol' town' - the hotter the better

Wed, 11/13/2013 - 17:19 | 4151682 kk1532003
kk1532003's picture

and to all the Fed folks who have had a "change of heart", and feel "so bad" and blah, blah blah I say FUCK YOU.  You made it possible.  Just becuase you suposedly grew a conscience doesn't mean you get removed from the list shitbag.  I'm sure there were plenty of concentration camp guards who felt just horroble about the whole Holocaust thing.  You did the damage, you own it.  We will remember.

Wed, 11/13/2013 - 17:32 | 4151752 Randoom Thought
Randoom Thought's picture

The Fed did exactly what its owners told it to do. The goal is for the demon empower and inspired elitists to consolidate their power under one world government. Clearly there has been a rolling disclosure on this since we are now so accustomed to the thought that once it actually happens it will be a non-event. But, how do they actually get there with the US, the US dollar and the Fed standing in the way?

For this, one has to think about how YOU would do it if you were a demonically empowered elitist cabal. The rest of the world will not submit to US rule. What has to happen is that the rest of the world has to conquer the US and for that to happen the US has to be painted as the global bad guy who is causing all of the problems. The US government is playing its part with constant wars, assassinations and bullying. The NSA/CIA are playing their part as global bad guys. The media is playing its part as a lying Goebbels-ist hypocrits.  The western elitist are playing their part as self absorbed greed-driven dirtbags. And the Fed will play the final part in allowing (creating) a global crisis in 2015 as it will be believed that its actions have failed and therefore the Fed is no longer desired ... (people little suspecting that the Fed's actions were intended to force the next timed crisis)

IMO, there will be a world-wide cry for the blood of the Fed and then the blood of the elitists and US government, culminating in 2022. (and by proxy the US people who will be forced to stand in the way, protecting the government, banks and elitists they despise). When the smoke clears and the US government, Fed and Wall Street have been destroyed for their anti-social actions, the UN and IMF will step in to fill the holes left by the power vacuum of a destroyed US. The world will be united under demonic elitist rule... or so I assume is the plan.

Wed, 11/13/2013 - 17:53 | 4151852 Gaurden
Gaurden's picture

if you think anyone outside western countries will buy into the IMF you have rocks in your head. Might as well tell them your satan.

Everyone in the world hates the fucking peice of shit that is the IMF. There wont be any global government formed under that name.

look at all these apologists going around and look where their from..imf, world bank, goldman sachs.

we dont need another Witch hunt.

we need a Rich hunt.


Wed, 11/13/2013 - 17:33 | 4151763 ponyboy96
ponyboy96's picture

With all these big ex guys starting to take a contrarian point of view and voicing their concerns, makes you wonder if they know something big is about to happen that they are trying to distance themselves from.  Things that make you go hmmm.

Wed, 11/13/2013 - 17:40 | 4151786 moneybots
moneybots's picture

"Hunting season is off to a good start this week, and I’m not just talking about deer hunting. It seems that former Fed officials declared open season on their ex-colleagues."


It is like warning about the housing bubble after it burst.  Too late.  He might as well keep his mouth shut.

Wed, 11/13/2013 - 17:51 | 4151846 dizzyfingers
dizzyfingers's picture

Is he giving back his ill-gotten and ill-deserved gains? No? Guillotine!

Wed, 11/13/2013 - 18:10 | 4151917 Youri Carma
Youri Carma's picture

Fed convert escaping the gallows. Maybe.

Wed, 11/13/2013 - 18:09 | 4151918 joego1
joego1's picture

The first fed rats to jump ship get the lifeboats.

Wed, 11/13/2013 - 18:35 | 4152022 Bloodstock
Bloodstock's picture

 What a load of crap! Controlled opposition seeks forgiveness to buy more time.

Wed, 11/13/2013 - 19:16 | 4152154 geewhiz
geewhiz's picture

I think the order takers are trying to weasel out of becoming their masters scape goats when the SHTF. They must know the reckoning is getting close.

Wed, 11/13/2013 - 19:29 | 4152184 unununium
unununium's picture

Kevin --

Your ploy isn't working.  When I Google "ex fomc opinion piece" I STILL get Huszar's rant.

Wed, 11/13/2013 - 20:45 | 4152445 AurorusBorealus
AurorusBorealus's picture

I agree with all the comments here.  What he really meant to say "I don´t like the direction this is all heading, and the mob is forming up against us.  I´m not sure Obama's purges can guarantee the loyalty of the military for the status quo, so I want to make clear, in advance of any mob-action, that I was a willing participant in all the heists of the financial and political elite, and even though I prospered and become very wealthy by the destruction of the United States,  I was always opposed to it.  I don´t want to call these heists "heists" because I don´t want to lose my membership card in the club, in case the mob can be put down, so I will carefully state that maybe mistakes were made."

These rats coming off this ship are pathetic with their so-called mea culpas.

Thu, 11/14/2013 - 01:11 | 4153131 Freedumb
Freedumb's picture

Though these ex-Fed officials made a career of driving us all off a giant cliff, at the very least this editorializing is helping make it more difficult for the current cabal to claim "But.... but.... no one saw it coming!" once it all breaks down, as their very own colleagues are providing publicly verifiable critiques of Fed policy.

While it does not make complete amends for the cumulative damage they have unleashed on society and the economy, in my book they have earned a tip of the hat, and I hope these editorials continue and the turncoats keep developing their anti-Fed stance in the media, which is willing to print THEIR views because of their former roles while largely shunning our views here.

Thu, 11/14/2013 - 01:18 | 4153139 carlin401
carlin401's picture

I disagree you are all being played like a fiddle.

1.) The cowboy in the white-hat is going to ride in to repair all the old shit, and they will call her YELLEN.

2.) Hillary Clinton 2016 will stand by her woman.

The Fascist Banks ( Goldman-Sacks ) are sharks that have tasted blood (QE), it will never go away, ... they'll just change the fucking name.

Besides we all know that there is NO BUYER of US DEBT now other than the FED, so it will come under many a name, ...

But these bitches coming forward are choreographed to give YELLEN an elegant entrance "A NEW DAY IN AMERICA, A NEW FED".


Lastly, this is all kicking the can down the road, past the next election cycle of 2016. The ASSHOLES of the world, must have HILLARY as President, only HILLARY can bring the NAZI New World Order to AmeriKKKa.

This show is only for Foreign consumption, nobody NADA at the FED gives a FUCK what the US citizenry thinks.

Thu, 11/14/2013 - 01:21 | 4153148 Freedumb
Freedumb's picture

Fair enough, though I think we agree -- I didn't mean to come across as a Fed apologist, I just think it ultimately helps our cause to encourage ex-Fed officials breaking ranks (or purporting to break rank). Even beginning to get a handful of CNBC viewers questioning reality is a good start...

Thu, 11/14/2013 - 01:33 | 4153159 carlin401
carlin401's picture

Sure enough, I just wanted to point out, that all of this is choregraphy,

Look at this way, this bitch already GOT his GOLDEN PARACHUTE, he's a 'golden boy' now, retired from the FED with the best pension and healthcare money can buy, and now he's college professor, just like all our favorite pol's go to pasture,...

There is NO fucking doubt that this is not a 'turn-coat', these guy's are going public to show-case ole YELLEN as a change-agent,

Of course we know it will be 'change my ass', but the DEM voters will eat this shit up,

Right now OREO-OBAMA has only one mission, HILLARY 2016, ... then its free coasting, and Obama too can retire at some fucking UNIV,... where he can fuck young grad gays like bush, or quayle in the ass.

Thu, 11/14/2013 - 09:33 | 4153514 Mi Naem
Mi Naem's picture

One wonders if there will be metal detectors to enter the classroom. 

Thu, 11/14/2013 - 01:20 | 4153134 carlin401
carlin401's picture

Whoops, MEA-CULPA, MEA-CULPA, ... we gave out Trillions to Goldman Sacks,... me so sorry, promise not to do it again, under my guard,...


A sad song, by an ex-FED,...

I was there. The best of times.

I just have to say it ain't fun anymore, you should have been there in the Greenspan year's, all the pussy you could imagine,

and then came the Bernanke years, champagne, pussy and free lectures,... and the finest dinner talks that money can buy.

Then came YELLEN, the PUSSY stopped, the champagne stopped, bitch dikes were given top postitions at the FED ( jewish bitch dikes of course ).

Once Yellen took over my FED could not be recognized, ... it was no longer a 'good old boys jewish club', instead it became a 'good old gal jewish club', think JANET-RENO in a Horror movie.

I have to admit, we really fucked the ameriKKKan people, but they loved every minute of the party, because piss does trickle down.

Austerity came to the FED, and the FED bitch dikes saw it was good, and said so shall all of ameriKKKa enjoy 'austerity',

The best of times, ... but no more, my only regret is that they nominated YELLEN because OBAMA owed TEAM-HILLARY.

Thu, 11/14/2013 - 01:15 | 4153138 Peter Pan
Peter Pan's picture

What he was really trying to tell us is that he doesn't want to hang on a lamp post like his ex-bosses will one day.

Thu, 11/14/2013 - 02:26 | 4153194 boeing747
boeing747's picture

2015 crisis starts from one big bank buys up all toxic products using high leverages and gives away all good assets to offshore banks. Then 'Big Bang' following. Everybody will blame this bank for 'causing biggest crisis' but what can they do if this bank will simply close down with empty vault.

Thu, 11/14/2013 - 02:31 | 4153199 g'kar
g'kar's picture

Another green spot in the desert in waiting.

Thu, 11/14/2013 - 02:38 | 4153204 dunce
dunce's picture

It sounds to me like they see the writing on the wall and are grooming themselves for positions in the next administration.

Thu, 11/14/2013 - 03:38 | 4153234 SonOfSoros
SonOfSoros's picture

I don't know what's worse.

The fact that ex-FOMC governors are revealing their true thoughts or the fact that America's new generation are full of barbarians who can only think of hanging people.

I'd say the latter. Gen Y is full of animals that need to be tamed. Lousy parents produce lousy kids.

Thu, 11/14/2013 - 04:22 | 4153259 syntaxterror
syntaxterror's picture

Can anyone explain why manipulating LIBOR "is a crime" but manipulating "the most important asset in the world" isn't?

Thu, 11/14/2013 - 04:57 | 4153263 syntaxterror
syntaxterror's picture

What he really wants to say: "why the fuck am I not CEO of goldman? I did my part."

Thu, 11/14/2013 - 06:11 | 4153293 enloe creek
enloe creek's picture

meh, probably has some bond shorts he wants to place so impatient, puled out of stocks and cash is burning a hole in his pocket

Thu, 11/14/2013 - 09:33 | 4153513 Reader1
Reader1's picture

Thanks, Huszar, but you didn't have the common decency to give us a reacharound at the time.  It's too late to make up now.

It's funny to see banksters backpeddle from their own actions, but what the hell, after WWII, you couldn't find any Nazis in Germany, either.

Thu, 11/14/2013 - 09:39 | 4153527 Reader1
Reader1's picture

When I see liars, I'm reminded of Leslie Nielsen

Jack: What's going on? We have a right to know the truth!

Rumack: [to the passengers] All right, I'm going to level with you all. But what's most important now is that you remain calm. There is no reason to panic.

[Rumack's nose grows an inch long]

Rumack: Now, it is true that one of the crew members is ill... slightly ill.

[Rumack's nose continues to grow longer and longer, à la Pinocchio]

Rumack: But the other two pilots... they're just fine. They're at the controls flying the plane... free to pursue a life of religious fulfillment.

Thu, 11/14/2013 - 09:50 | 4153545 shovelhead
shovelhead's picture

What's with everybody doing the Sammy 'The Bull' Gravano act, ratting out the Capo tutti di Capo?

 "Sometimes I question how I got to be the way I am. I had a great mother and father. I don't know how I got to be the way I am. No emotion. No feeling. Like fuckin ice."

At least Sammy had a reasonable assumption his future career prospects were about to become precipitously narrowed.

It's a sad thing that the old traditions of omerta are so casually laid aside.

Thu, 11/14/2013 - 10:38 | 4153690 Coldfire
Coldfire's picture

Smell the fear on this guy.

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