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Is This The Moment The Fed Decided To Go All In?

Tyler Durden's picture


In December 2008, two brief conversations from Ms Yellen and Mr Bullard appear to have set the scene for both the scale and focus of the Fed's actions over the ensuing years... ironically it was Janet Yellen's fear of a "rising" labor force participation rate and Jim Bullard's rapid realization that the US was "moving to a Japanese-style deflationary, zero nominal interest rate, situation at an alarming pace." Topics that now are quickly ushered away as nonsense by the mainstream economist crystal-ball gazers...



Yellen sees a rising labor force participation rate, fears a rising unemplyment rate, and lays out the 3 areas on which to focus to fix that...

YELLEN: Turning just very briefly to the labor market, the Beveridge curve chart that Stephanie presented during her briefing suggests that we have seen an unusually large increase in the unemployment rate recently in comparison with the decline in job openings, at least in the JOLTS data. I think one interpretation might be that the unemployment rate has risen in part because we have had an unusual rise in labor force participation during this recession.


Labor force participation has been higher than would be expected, particularly for three demographic groups: young adults, married women, and older workers nearing retirement. Analysis by my staff estimates that this rise in participation could reflect behavioral responses to unusual credit constraints and wealth declines.


Specifically, young adults aged 20 to 24 years appear to be entering the labor force in unusual numbers, and that might reflect diminished access to student loans.


Similarly, more married women are entering the labor force, and that’s a possible reflection of diminished access to home equity and credit card loans.


Finally, an unusually large number of older workers are in the labor market, and that may reflect the negative wealth shock associated with the collapse of housing values and the plummeting stock market.


All in all, I expect the anomalous increase in labor force participation to put continued upward pressure on the unemployment rate.


And what happened - the Fed/Govt juiced student loans, piled liquidity into car loans, and smashed home and stock prices up... and the labor force participation rate collapsed and so did jobs...


Then Bullard comes out all "shock-and-awe"...

BULLARD: In sum, I think we are moving to a Japanese-style deflationary, zero nominal interest rate, situation at an alarming pace.


To stay in the game and control expectations, we need a Volcker-like transformation, something like—although the situation is different—the ’79 announcement, which knocked private-sector priors off the idea that they should trigger all reactions to announcements on nominal interest rates.


You need a dramatic move that emphasizes this new reality. Continued focus on the federal funds rate at this point would not face that reality.

Now, of course, the Labor force participation rate is collapsing, there are no jobs created by the energizing of those credit lines and the Fed is desperate to dismiss any perspective that we are turning Japanese.


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Fri, 02/21/2014 - 19:12 | 4463530 hugovanderbubble
hugovanderbubble's picture

Ukraine + Russia will default next days.

Fri, 02/21/2014 - 19:15 | 4463540 Motorhead
Motorhead's picture

Have a good weekend, bitchez!

Fri, 02/21/2014 - 19:18 | 4463554 The Vineyard
The Vineyard's picture

OK,  OK.  Janet Yellen is an evil witch.  We get it.  Bitches.

Fri, 02/21/2014 - 19:25 | 4463578 Levadiakos
Levadiakos's picture

the Fed's only concern is to the safety of Jamie's bonus

Fri, 02/21/2014 - 19:45 | 4463642 NoDebt
NoDebt's picture

After all these delicious Fed transcripts, the insanity of their discussions and what do a bunch of central bankers finally, at the end of it all, decide to do?  

Print money.  Lots of it.

Color me shocked.

Fri, 02/21/2014 - 19:59 | 4463679 negative rates
negative rates's picture

I can already tell how bad it is by seeing how many credit cards it takes the guy/or gal, ahead of me to pay for the items. Sometimes we wait 5 minutes until she can whip out a check, and get thru the line once and for all. 

Fri, 02/21/2014 - 20:17 | 4463740 max2205
max2205's picture

Proof yellen killed the economy and that sbe has No clue

Sat, 02/22/2014 - 11:25 | 4464821 Muppet Pimp
Muppet Pimp's picture

Were it not mysogynist and raysiss and war on women, I would say that maybe the whole womens lib movement should retreat, we should embrace marriage like god intended and let the women who were so inclined (more than the liberals will let on) go back to being homemakers and raising our kids right rather than everyone seeking moar trinkets and fightiing over the jobs that do exist.  Apparently thinking women might like to actually spend time with their kids is mysogynist and raysiss and war on women and anti-women and all that other happy liberal horse shit.

More likely whats really going on are the democratic (cough...communist...cough) party really believes what they say, that the children are community property, and that once weaned it is important to get those women back to work and get those little sponges back into our indoctrination centers.  And if that is not enough to crush wages, flood in third worlders to make damn sure prosperity is not be found for the lower strata.  On top of that, the democrats can claim it is actually those who believe in women serving the role of mother to their children that are evil and hate women and that the only way to prosperity is to take moar free stuff from the governement.

Further, maybe the ones who claim equality is putting mothers on the front lines of our military are the ones who have their head in the sand are secretly working to destabilize our military forces and sew discontent by taking what was once elite fighting groups of hardened men and throwing women and gays in there, not to acheive equality, but to demoralize our troops and affect their combat readiness.  Maybe it is not wrong for men to feel different when they see women taking a bullet than another man taking a bullet.  Maybe god programmed man this way. It might not have been intentional, but it is certainly a product of liberal thinking.

Sat, 02/22/2014 - 11:41 | 4464940 Muppet Pimp
Muppet Pimp's picture


Sat, 02/22/2014 - 13:33 | 4465317 IPA
IPA's picture

It is happening, i know several women with college degrees but stoped working when they got married or had kids. $50000 to find a husband... 

Sat, 02/22/2014 - 15:06 | 4465690 it aint easy
it aint easy's picture


Spot on muppet brother. Feminism equally screws over men, women, and their children. As for the military, quit fighting bankers' wars and it wouldn't have to be such a behemoth in the first place.

Sat, 02/22/2014 - 15:44 | 4465811 drstrangelove73
drstrangelove73's picture

Everything you've just said is absolutely true,but the default cultural position is to deny each of these truths and call anyone names who says otherwise.
Stick to your guns...uh oh,another politically incorrect utterance...

Fri, 02/21/2014 - 20:10 | 4463720 disabledvet
disabledvet's picture

insanity? she was spot on. the article clearly states she saw the rising labor participation rate as "going up for all the wrong reasons" and therefore as "temporary."

As far a Bullard goes he looks spot on as well as seeing the need for a "shock and awe strategy" to deal with what he "foresaw" as a Japanese like scenario.

Obviously we can't prove a negative here ("what would have happened had they done nothing?") but we can as Machiavelli said "look to the result" and extrapolate "what could have been."

In other worlds "those interest rates don't lie"...even with trillions on the Fed balance sheet interest rates still collapsed.

And of course "look at Europa" if you're looking for "the other side of that coin" (they raised rates!)

The only winners i see are Australia and South Korea "relative to what the USA did."
China...maybe. Certainly they've been the fuel for Bubble 3.0.
But it's a pretty rare thing to be the "beneficiary" of a Bubble...not that the media doesn't say "that's what you really want...everywhere and always."
just another day of geo-political madness.

Fri, 02/21/2014 - 21:31 | 4463907 mjcOH1
mjcOH1's picture

"In other worlds "those interest rates don't lie"...even with trillions on the Fed balance sheet interest rates still collapsed."


Don't you mean...."because of" trillions on the Fed balance sheet, interest rates still collapsed?   Was not that the whole point of QE?   The fed created additional/artificial demand for shitty debt, driving down yield.

Fri, 02/21/2014 - 19:49 | 4463659 Stoploss
Stoploss's picture

"it was Janet Yellen's fear of a "rising" labor force participation rate"


Uhhhh whut???

Now it's starting to make more sense, The FED is now critical in, and complacent to the destruction of the country as well as making sure the participation rate drops no matter what.

Because the FED is simply a political tool severely abused by Barry. This declaration should prove beyond any doubt the true motive of the FED, which now follows no mandate except that given by the dicktater... So, this means the FED WILL PRINT, NOW WE KNOW...................FOR SURE.

Gold is most likely about to be hit, along with everything else. If they stop printing, they risk the participation rate rise. That's the thesis. Trade accordingly..

Oh yeah,

===========================FUCK THE FED========================================

Sat, 02/22/2014 - 04:38 | 4464580 runningman18
runningman18's picture

Actually, it's the other way around.  Obama is a political tool for the Fed...

Sat, 02/22/2014 - 05:20 | 4464598 _ConanTheLibert...
_ConanTheLibertarian_'s picture

Why would gold be hit? I would expect the gold price to rise. No rocket science.

Fri, 02/21/2014 - 22:57 | 4464124 Ness.
Ness.'s picture

JPM.  365-0.


We need to hang Jamie Diamonds on the corner of Wall and Broad St. for all to see.


Sat, 02/22/2014 - 05:57 | 4464617 goldhedge
goldhedge's picture

Where is the Occupy JPM movement?

Let's see what Obama does to diffuse the situation ?


Sat, 02/22/2014 - 15:14 | 4465726 it aint easy
it aint easy's picture

Sorry, the "Occupy JP Morgan" faction wasn't eligible for NGO funding for some strange reason..

Sat, 02/22/2014 - 08:28 | 4464684 HyBrasilian
HyBrasilian's picture

 "OK,  OK.  Janet Yellen is an evil witch.  We get it."


She turned me into a newt!

Sat, 02/22/2014 - 08:37 | 4464690 overmedicatedun...
overmedicatedundersexed's picture

the elite have learned nothing since the roman republic, sorry to say we all must live with the effects of what they do while in power.the elite have convinced themselves they know more and can avoid the same mistakes all despots keep repeating, too bad we common folks get it in the neck each time, nothing new under the sun.

Sat, 02/22/2014 - 13:24 | 4465290 Angus McHugepenis
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Dear "The Vineyard", and your other monikers like orez65, Mister Kitty, The Dunce, and watever others you have.

Please take your links to your worthless Angry Sinner blog and shove them up your useless cornchute. The Tylers booted you a long time ago but it seems you have returned like the plague!

Oh, and FUCK OFF!

........('(...´...´.... ¯~/'...')
..........''...\.......... _.·´

Sun, 02/23/2014 - 09:38 | 4467563 theliberalliberal
theliberalliberal's picture

beat me to it damn


Edit: you will be able to tell how many accounts he has by the number of downvotes you gets

as we speak he is logging out of one account, into the next so he can down vote you.  

Sun, 02/23/2014 - 09:34 | 4467562 theliberalliberal
theliberalliberal's picture

@ The Vineyard / The Dunce / Whoever-the-fuck-you-are

I seriously fucking doubt that multiple people are linking to this shitty "angry sinner's blog".

especially with the same hyperlinking YOU BITCH.

"look honey,  i got 10,000 view today,  my blog is popular,  how about that monthly promise"

Fucking link to something on topic or quasi-fucking-intersting.  Not what you had for dinner.

lame cunt



Fri, 02/21/2014 - 19:25 | 4463576 walküre
walküre's picture

Russia is very traditional. They still go to war to avoid the perception of default but the end result is the same. Ukraine most definitely is going to default. Bread prices across Europe will skyrocket. Some twat will say "Let 'em eat cake" and BOOM goes the dynamite all that pent up anger and frustration will rip Europe to pieces.

Fri, 02/21/2014 - 19:30 | 4463593 Levadiakos
Levadiakos's picture

Has Obama drawn another red line?

Fri, 02/21/2014 - 19:37 | 4463622 zaphod
zaphod's picture

He's drawn another red lines 5 this week alone.

Even with JFK everyone knew that words were followed with action, but with Obama (like Carter) everyone knows their words are backed by nothing. Putin could start to roll into the EU and I'm sure Obama would abandon bases in eastern EU. Putin knows this.  

Fri, 02/21/2014 - 20:05 | 4463702 Au Shucks
Au Shucks's picture

Riiiiiggggghhhttt.  Obama makes these big decisions.  Riiiiiggggghhhhtttt.


Get a clue man.  the president is a goddamn figure head, nothing more.  he does what the handlers who have their hands so far up his ass his ears pop out tell him to do.


ANYbody who thinks Obama is to blame is a fool.  he is culpable, absolutely.  but he is most assuredly NOT the decider of anything important.

Fri, 02/21/2014 - 21:48 | 4463944 WonderDawg
WonderDawg's picture


Sat, 02/22/2014 - 02:27 | 4464502 old naughty
old naughty's picture

Czechmate !

"The danger to America is not Barack Obama..."


Fri, 02/21/2014 - 21:53 | 4463945 layman_please
layman_please's picture

he doesn't decide shit but don't expect the overlords to babysit him or prepare the teleprompter. barry is such a failure that he can't even implement the conveyed policy though the handlers are doing their best with the fool

Fri, 02/21/2014 - 23:07 | 4464156 Rusty Shorts
Rusty Shorts's picture

...who is the decider???

Fri, 02/21/2014 - 23:12 | 4464172 akak
akak's picture

I can't decide.

Sat, 02/22/2014 - 09:19 | 4464716 weburke
weburke's picture

those that control the electronic voting !

Fri, 02/21/2014 - 23:37 | 4464237 TBT or not TBT
TBT or not TBT's picture

But he's a Harvard man!

Sat, 02/22/2014 - 13:25 | 4465291 XitSam
XitSam's picture

So he was just following orders? 

I won't want a Peace and Recocillation Commission, I will want trials and hangings.

Fri, 02/21/2014 - 19:49 | 4463656 hobopants
hobopants's picture

They took away his red marker because he didn't have any respect for it. He kept doodling on the white house walls... Word is he cried his eyes out until michelle gave him an etch a sketch.

Fri, 02/21/2014 - 22:15 | 4464014 StychoKiller
StychoKiller's picture

Someone should point out to the Obamatron that there are more crayons in the box...

Fri, 02/21/2014 - 22:35 | 4464067 akak
akak's picture

The red one has always been his favorite, though.

Fri, 02/21/2014 - 20:54 | 4463826 caShOnlY
caShOnlY's picture

Forgive my ignorance:   If Ukraine defaults could/will this cause the whole shebang to blow?  is this why they want the Ukraine in the Eurozone? to get them under the Western banking SCAM system to stop the contagion from just such an event?

Fri, 02/21/2014 - 23:10 | 4464167 Ness.
Ness.'s picture

None of the parties involved have any concern for the people of the Ukraine. It's all about the flow of resources.  Ukraine just happens to be "inconveniently", in the wrong place at the wrong time.


Sat, 02/22/2014 - 01:21 | 4464410 Scarlett
Scarlett's picture

the less people in ukraine, the more resources/capita

Fri, 02/21/2014 - 19:27 | 4463581 seek
seek's picture

Russia won't default, but Ukraine -- dozens and dozens of private jets have left the country, many of them being loaded with the contents of armored cars, and many top-level politicians on board; their leadership has flat bailed out, way early in the game. So they likely know something we don't about the state of the country. There are fresh reports that the president has left to Russia.

There are near-real time updates on the private jets leaving the Ukraine, some of them are being denied landing rights, and that they're trying to kill the internet.

I suspect we'll be seeing some big news and headlines here in the next 48-72 hours.

Fri, 02/21/2014 - 19:32 | 4463603 Levadiakos
Levadiakos's picture

Yeah what you smokin in that pipe Spicoli?

Fri, 02/21/2014 - 19:35 | 4463608 LetThemEatRand
LetThemEatRand's picture

One day I'd like to see Jamie Cufflinks Dimon and Lord Blankfein boarding such a plane with his armored truck full of stolen loot.  

Fri, 02/21/2014 - 19:52 | 4463662 hobopants
hobopants's picture

That would be a nice sight, but I much rather a pissed off mob catch them in the act.

Fri, 02/21/2014 - 19:57 | 4463673 Kirk2NCC1701
Kirk2NCC1701's picture

Hopefully maintained by same aircraft mechanics as John Denver had.

Sat, 02/22/2014 - 05:22 | 4464600 Wile-E-Coyote
Wile-E-Coyote's picture

Or the French mechanics that fixed Concorde.

Sat, 02/22/2014 - 09:17 | 4464710 Tall Tom
Tall Tom's picture

I'd love to shoot down that aircraft while it is taking off...BY TARGETING THE ENGINES. Copper Jacketed hot Lead at High Velocity does some pretty gnarly damage to Turbojet Engine Intake and Compressor Fans. (You might want to drill and add a Steel Core.) Actually Titanium is...rather BRITTLE.


The cascading Failure will cause that Engine to Flame Out and that Jet to plummet to the Earth at a rather high speed. Hopefully the bastard will survive the impact to be burned alive in the ensuiing Jet Fuel Fire.


Camp out near the ends of the runways at your Regional Airports today. Why wait until the end when you can take that bastard out today, at will?


(What idiot would board a Jet Airliner to blow it up and die in the process? They are just too damned easy..TO SHOOT DOWN....upon Arrival and Departure.)



Fri, 02/21/2014 - 19:36 | 4463621 Levadiakos
Levadiakos's picture

map of all statues toppled so far just today in .Waiting on ! "


Hingt: There were 17 Lenin statues toppled in Ukraine today alone

Fri, 02/21/2014 - 19:42 | 4463637 akak
akak's picture

It leaves me to wonder, why were ANY Lenin statues, anywhere, still standing --- and especially in Ukraine!

Fri, 02/21/2014 - 21:33 | 4463913 Dadburnitpa
Dadburnitpa's picture

It is surprising.  I saw a nice big one right across the street from the Bolshoi a few years ago when I was in Moscow for business.

Fri, 02/21/2014 - 23:07 | 4464161 Soul Glow
Soul Glow's picture

The gold in Ukraine is likely gone along with the politicians and businessmen.

Fri, 02/21/2014 - 21:57 | 4463918 Urban Redneck
Urban Redneck's picture

If you had a jet, family and portable wealth, and the you lived in a State that might be 48hrs from now clamping down in the way only a State can, wouldn't you GET THE FUCK OUT?

I have friends who stayed in Beirut all through the war, but they moved their loved ones and their precious out of the line of fire early on, and then let them back to the Paris of the Middle East after the anti-tank rounds stopped piercing the bullet proof glass.

I can't blame anyone with the means in Ukraine for doing so, and if the curruptocrat is actually planning to one-up the last battle of Grozny, everyone on his speed dial probably got the message loud and clear, whether the message was Weekend at Bernie's or 9 1/2 Weeks is less clear.

Sat, 02/22/2014 - 09:14 | 4464711 css1971
css1971's picture

This is why you and your family should learn how to paramotor.

When TSHTF, insanity surrounds and you really just have to get away or Bad Things Will Happen then you can literally fly away.

Fri, 02/21/2014 - 19:53 | 4463632 Jumbotron
Jumbotron's picture

I can't really say this in all honesty as I have only been here officially for a little over 2 1/2 years......(although I started reading ZeroHedge back around the late 2008-2009 area).

But....I must say that this is one of the finest pieces of information uncovered ever on this site.....on ANY financial site for that matter.

Tyler(s) just go from strength to strength in putting all the pieces together.  I...we....knew that these bastards saw this coming.  It seemed their actions had something to do with this.  Now....with the dots all connected one can look at the complete paint by numbers masterpiece and it makes all the sense in the world.

Bravo !

Sat, 02/22/2014 - 01:21 | 4464411 Lionhearted
Lionhearted's picture

Anyone who thinks a talking head (Yellen) who gets paid $200,000 a year has ANY control over TRILLIONS of dollars is seriously deluding themselves. Yellen has as much control over The Fed as Ronald McDonald has over McDonald's. Think about it Bernanke drives a PRIUS! Please. Would you pay someone $200,000 a year to manage TRILLIONS of dollars? The Fed Chair is a joke and part of the great con we call a "Federal Reserve Note". Her salary is the most obvious proof.

Sat, 02/22/2014 - 06:27 | 4464630 RebelDevil
RebelDevil's picture

Hey, Lloyd Blankfiend gets paid approx $450K and is currently the head of the world's most powerfull institution, PLUS he makes WAY more money in "profits" and "bonuses".

Do Bernanke and Yellen recieve bonuses?

Sat, 02/22/2014 - 09:28 | 4464722 Jannn
Jannn's picture

Weekly Chinese Gold Demand Transcends Global Mining Production, Again

Fri, 02/21/2014 - 19:14 | 4463535 dbTX
dbTX's picture

Yeah, and the unemployment rate is droping, go figure.

Fri, 02/21/2014 - 19:15 | 4463539 lordbyroniv
lordbyroniv's picture

Quoting Colonel Klink "They KNow Nothing"

Fri, 02/21/2014 - 19:15 | 4463543 Motorhead
Motorhead's picture

Dude, Sgt Schultz used to say that.

Fri, 02/21/2014 - 19:21 | 4463559 lordbyroniv
lordbyroniv's picture

Oh Lol.  I was born in the 70's.  Hogans Heroes was before my time.  I only HEARD of this Colonel Clink of the Boomer Genration.  My fax pas...perhaps.

Fri, 02/21/2014 - 22:23 | 4464039 Pool Shark
Pool Shark's picture



Fax pas

A breach in facsimile etiquette?



Sat, 02/22/2014 - 04:20 | 4464573 ebworthen
ebworthen's picture

You missed the reruns of a classic 60's spoof of war.

I suppose after 20 years there was nothing to do but laugh at the tragedy.

Too bad we are rushing pell mell into another tragedy just like it; due to the banker induced collapse of economies.


Fucking assholes.

Fri, 02/21/2014 - 19:19 | 4463556 Theta_Burn
Theta_Burn's picture

What has been going on isnt "all in"?

Can only imagine what that would look like....

Fri, 02/21/2014 - 19:24 | 4463572 lordbyroniv
lordbyroniv's picture

H-E-L-I-C-O-P-T-E-R- D-R-O-P-S

Fri, 02/21/2014 - 19:21 | 4463562 phoolish
phoolish's picture

Volcker style?  I don'r remember Volcker reducing rates to zero.



Fri, 02/21/2014 - 19:22 | 4463565 Luckhasit
Luckhasit's picture

Siyanora bitchez!

Fri, 02/21/2014 - 19:39 | 4463573 Soul Glow
Soul Glow's picture

Yellin shouldn't always ask for what she wishes for.  Her term as Chair is going to be a bitch in part due to her low labor force participation rate.  Many people are going on SS everyday, and theose taking benefits will continue to rise for a generation.

That and there are no jobs and they aren't coming back to this consumer economy.

Fri, 02/21/2014 - 19:48 | 4463654 Jumbotron
Jumbotron's picture

"Many people are going on SS everyday, and those taking benefits will continue to rise for a generation."

Which is PRECISELY why....Soul Glow...that interest rates HAVE to be supressed at ALL COSTS.  Because if the tiniest bit of inflation comes out that triggers automatic "cost of living" increases on things such as Social Security.....not to mention much higher interest payments on the National Debt.

Raise the interest rates and the carry trade dies as well as interest payments EXPLODE.

Keep interest rates artificially low and you have moral hazard everywhere, bubbles and manias everywhere that could explode at any time and / or the currency is debased and implodes leading to hyperinflation then the Great Depression 2.1.


We are so cosmically screwed. 


Sat, 02/22/2014 - 13:35 | 4465325 XitSam
XitSam's picture

Don't be a worry wart.  Congress will just pass a law to keep interest rates low. Or Obama can ExOrder it.  After all, Nixon had wage and price controls, why not interest rate controls?  Or Congress can just divvy up the national debt among the states, proportional to the income each generates.  Is it Congress' fault that the red states actually work and generate the most income?  A multitude of solutions!

Sat, 02/22/2014 - 22:19 | 4466880 Jumbotron
Jumbotron's picture

Really.....the red state work and generate the most income?  Where does the investment money come from to either start those businesses or allow them to grow and expand?  It comes from a completely Ponzifed debt creation system.

Those higher GDP's of the so called Red States is not from harder's from phoney financial 3 card monty practices and strip mining the land for the last of cheap fossil fuel....which isn't cheap any more.....hence the fact we are drowning in oil and everything derived from oil including gas keeps going up.

Get real.....this has NOTHING to do with the color of some state.  But everything to do with color of lies.

Sun, 02/23/2014 - 15:20 | 4468289 XitSam
XitSam's picture

Now turn your satire detector back to the ON position.

Fri, 02/21/2014 - 20:03 | 4463695 negative rates
negative rates's picture

Yea, they are tellin me that all the good jobs are gone, but not the tax cuts, they remain. Oh well, life's a bitch, and then you die. 

Fri, 02/21/2014 - 19:27 | 4463582 Yancey Ward
Yancey Ward's picture

The Yellen parts basically reduce down to this- complaining that people are looking for jobs because they want money to spend.  Yikes!!!!!

Fri, 02/21/2014 - 19:27 | 4463584 algol_dog
algol_dog's picture

This article has me thinking it's time to join the ZH bear camp now. I have begun taking my first bear positions since '08. Excellent read ...

Fri, 02/21/2014 - 19:28 | 4463585 bsdetector
bsdetector's picture

They knew what they were going to do regardless of any theories. Then they were just bumping their gums to make a historical record that they looked like they had a plan.

Fri, 02/21/2014 - 19:30 | 4463594 LetThemEatRand
LetThemEatRand's picture

What is most distressing of all --  even much more so than the ivory tower view of the world espoused in comments like those quoted above -- is that we sheep allow these fuckers to control our economy like they fucking own it.  Because they fucking do and we let them.

Sat, 02/22/2014 - 07:02 | 4464640 _ConanTheLibert...
_ConanTheLibertarian_'s picture

This is the top reason why I hate this world.

Sat, 02/22/2014 - 07:11 | 4464642 Oldwood
Oldwood's picture

We control the economy. They control us...through misinformation, propaganda and lies. We ARE the economy. We decide what to buy, where to buy it and when. Does anyone think that our jobs would have all been outsourced if we had refused to buy foreign made goods? And does any one really think the banks and financial institutions would have any power at all if we refused to borrow money and buy stocks and bonds? We are doing this. Yes they are manipulating us to do it, but regardless, WE are doing it. The simple fact that even the majority of people on this site will not admit this defines the problem. The smart and wise ZeroHedgers spend so much time defining who is to blame, who caused it and who is getting rich from it (and how WE can get rich from it) and how to punish who ever it is we blame or just don't like, but I have seen the enemy and it is me. Revolution starts with our choices, not with weapons and fire bombs. Not even with public demonstrations. Choices, CHOICES!! The fucking CHOICES we make EVERY fucking day. TPTB fear us for this reason. This is why the bullshit lies continue. Why they need surveillance, why we need all of the politics of division and distraction. The truth is there for all of us to see and they MUST deflect our view. They fear us more than anything, more than even failure, because they know they are manipulating us and we act as a herd. A herd that can stampede as easily as not, trampling them in to the dirt. They use our fear and greed to manipulate us because they know this fear and greed in themselves. Watch them lie and squirm. Watch their behavior. We all see it. I hate movie examples but in the Matrix, when Neo simply says NO is when everything changes. I know this is not a movie but we need to focus, look around us and see how what we are doing is enabling them. We need to say NO.

Fri, 02/21/2014 - 19:30 | 4463595 angryBuddhist
angryBuddhist's picture

How does it add up that Yellen can say that rising employment participation rates cause rising unemployment? The only way this remotely makes sense is either she is high on some really good shit or more the obvious, she is totally batty! (or both)

Fri, 02/21/2014 - 19:49 | 4463658 harposox
harposox's picture

It adds up because of the way the "official" unemployment rate is calculated. It looks better when people are no longer "participating" (they stop looking for jobs) because they're simply not counted any more. Twisted, ain't it?

Fri, 02/21/2014 - 22:29 | 4464057 NDXTrader
NDXTrader's picture

It's actually far more perverse than people are giving it credit for. She is worried only about the "official" unemployment rate and not whether people actually have jobs. That is absolutely disgusting

Fri, 02/21/2014 - 19:35 | 4463615 RaceToTheBottom
RaceToTheBottom's picture

Funny that Yellen views labor participation as a bad thing. 

I think the dual role thingie kinda got lost, huh?

The scene in Caddyshack comes to mind:

Carl Spackler: Check me if I'm wrong Sandy, but if I kill all the golfers, they're gonna lock me up and throw away the key...

Sandy: Gophers, ya great git! The gophers! The little brown furry rodents!


Fri, 02/21/2014 - 19:39 | 4463626 Seasmoke
Seasmoke's picture

I look it this way. Even if they all were hanged Tommorow for Treason. They lived 5 years longer than they would have..

Fri, 02/21/2014 - 20:05 | 4463701 negative rates
negative rates's picture

Don't fall for the oldest trick in the book, it was 23 years longer.

Fri, 02/21/2014 - 20:00 | 4463687 q99x2
q99x2's picture

Pretty sure they feel they've done their part, stolen as much as possible from the United States of America and now it is time for the DHS, FEMA, the NSA, CIA and the Executive Branch to take it from here.

They are getting ready to kill us.

DHS just bought another 750 million rounds of ammo. They are going to fucking kill us.

Fri, 02/21/2014 - 20:10 | 4463719 Jumbotron
Jumbotron's picture

Only if we decide to go all Venezuela by way of Kiev during the Arab Sping on them.

But you're right......while some of us are stacking gold and full metal jacket......Corp / Fed has been stacking full metal jacket to the tune of 2-3 billion rounds at last count.  And they continue to do so.....even as the troops are coming home.

What do they sense ?   Sad thing is.....they may just be paranoid for nothing.  What do they have to fear from sheep anyway ?

Mon, 02/24/2014 - 00:39 | 4469801 MeelionDollerBogus
MeelionDollerBogus's picture

Not to worry, you can bribe your way out of camp-FEMA with bitcoins!

Fri, 02/21/2014 - 20:03 | 4463698 Spungo
Spungo's picture

So Yellen's official goal is to cause long term unemployment as a way of preventing short term unemployment? I'm absolutely speechless. There's no way anyone is THAT retarded.

Fri, 02/21/2014 - 20:11 | 4463724 Jumbotron
Jumbotron's picture

Jinxed !

Fri, 02/21/2014 - 22:52 | 4464119 Jim B
Jim B's picture

I guess the smartest people in the room....... are not so smart, but full retard!

Fri, 02/21/2014 - 20:57 | 4463827 earleflorida
earleflorida's picture

here are a few links to another american manmade debacle faciliated by, tptb? the 'hunphrey- hawkins... dual mandate employment legislation. supposedly, taking the pressure and workload off an already lackluster congress, and useless corrupt pac's!?!

harry truman was perhaps the greatest president this country ever had since andrew jackson. it was he... and not eisenhower that warned about the 'mic', before the war machine morphed into all out profiteers, and traitors! yes,... traitors to the highest bidder from any country. prove me wrong (the dollar-a-year corporate boss)? during 1935... in the midst of the great depression, an FDR administration spent a whopping $10bn with half (~$4.8bn) going to 'Washington's New Deal',and remainder to the countries appropriations budget office. it was successful because of good, and diligent oversite! today, $10bn. won't buy you a weeks worth of 'SNAP-Crack/throwaway-phone & Pot Program'!

the country in (????) was in the hands of ~4% of the population, which held ~90% of it's entire wealth. this was twenty-one years after wilson created the FRB'system, and the Federal Income Tax--- 1934!!!

what does this have to do with the moment of conception? Deception... grand theft deception,period!

there's nobody working for the people? why? is it because they're afraid of blackmail, or worse an unexpected tragedy in the family, auto accident, premature suicide, or an unexpected brain tumor, etc., etc.,! ya know, julius ceasar used to have everyone in the senate spied on and threatened whenever there was a chance of a coup or rebellion which he would deal with expediantly, just as today with the slanderous 'msm', and then the unexpected leaks of malfeasance (always on file for that need-be, keep thy mouth shut?) etc., etc.,!!!

the year of 'i am woman', and... yes, 'i am a negro' as the spanish vote trumps all in an america. and, most if not all the new-illiterate genY see as progressing in a funky-kinda good way smoking their pot and eating snap-snacks talking on their obama phones in their acorn rent-2-lease(?) katrina blue-tarp trailors!

links:  'Analysis of a Dual Mandate FRB'

'The Federal Reserve's Dual Mandate'

'The Creature from Jekyll Island' (note: scroll down abit for story by griffin)

lastly, anyone up-for PICAZZO?... a controversial site... but, ya gotta look at all angles to appreciate the abstract? yes... k(no)w?        'The Humphrey-Hawkins Bill' (no-moar unemployment 4U)


thankyou Tyler


Sat, 02/22/2014 - 08:06 | 4464667 negative rates
negative rates's picture

I agree Earle, I'm still waiting for the toothpaste bomb, or the new liquid shoe bomb to go off, they don't have much time left to keep what little is left of their veracity.  

Mon, 02/24/2014 - 00:32 | 4469783 MeelionDollerBogus
MeelionDollerBogus's picture

Cue (Jack Nicholson) Joker:

Love that Joker!

Go with a smile

You wouldn't wanna be caught dead using brand X!

Fri, 02/21/2014 - 23:19 | 4464197 bubblemania
bubblemania's picture

I cant believe these assholes run the economy. We're all screwed.

Sat, 02/22/2014 - 00:23 | 4464312 RafterManFMJ
RafterManFMJ's picture

If only a global government and a global currency could somehow appear and save us!

Fri, 02/21/2014 - 23:59 | 4464272 sfisher
sfisher's picture

When you do not know where you are, and you do not know where you want to go, it is diffiult to know what to do,  GET OUT OF THE WAY!

Sat, 02/22/2014 - 00:02 | 4464274 sfisher
sfisher's picture

While the Fed says a lot of nonsense, at the end of the day I do believe they will have title to all of the assets.  Dumb luck I guess?

Sat, 02/22/2014 - 00:30 | 4464329 the grateful un...
the grateful unemployed's picture

title to all the mark to myth assets? it continues to amaze me that the fed buys bad paper in exchange for good, unless of course they have a GSE guarantee that UST will back them, (which i assume is true at least in context, if not factually)

Sat, 02/22/2014 - 00:05 | 4464280 motorollin
motorollin's picture

I remember a moment from 2008 very clearly. I had an IT consulting gig at a tiny branch office. I was sitting there waiting for the instructions on what to do (thanks Robert Half...dicks) and saw an ad for reverse mortgages. I asked one of the women working there, "Who would fall for this scam"? She was very indignant that a reverse mortgage isn't a scam. 


Maybe all these fuckers dropping out of the labor force took that reverse mortgage and are sitting on their asses laughing at us working folk. /s

Sat, 02/22/2014 - 00:13 | 4464297 Crawdaddy
Crawdaddy's picture

Reverse mortgage = how to pay death taxes in advance of death, among other things.

Sat, 02/22/2014 - 03:26 | 4464544 A Dollar Short
A Dollar Short's picture

An excellent solution and remedy for giving all you own to TPTB, in the end.




Sat, 02/22/2014 - 10:20 | 4464786 Tall Tom
Tall Tom's picture

It is a stealth way of abolishing the Inheritance which is one of the Marxist Communist Manifesto Planks.

Mon, 02/24/2014 - 20:39 | 4469768 MeelionDollerBogus
MeelionDollerBogus's picture

I'm STILL hearing Robert Half tell people there's a massive recovery and new hiring and jobs galore. It's utter bullshit.

I remember the sound of the propaganda just like I was leaving high school. Once the kids follow & are failed completely, they'll be destroyed financially and emotionally and will become debt slaves to the corporations just like the 90's transition to the 2000's, but for much less real wages (what you can buy) per hour worked, and much less hours worked total than what one could expect in 1999.

Those fuckers have no conscience but they are not alone.

Sat, 02/22/2014 - 00:09 | 4464287 Crawdaddy
Crawdaddy's picture

So one Fedbot says "hey lets do what the previous Fedbot did" and somehow this is supposed to be surprising to this forum? Gitdafukouttaheah!

Sat, 02/22/2014 - 00:10 | 4464288 Atomizer
Atomizer's picture

How does Mr. Yellen plan on protecting the Petro-dollar recycling currency? That is the quadrillion dollar debt question..

Sat, 02/22/2014 - 03:21 | 4464534 A Dollar Short
A Dollar Short's picture

You kidding, ez answer, by PRINTING BABY !



Sat, 02/22/2014 - 00:34 | 4464333 the grateful un...
the grateful unemployed's picture

the MSM has been running the best of Janet Yellen (she saw it all) which of course we saw a few weeks ago, was not the truth at all according to the record, but who knows is all this testimony disredacted formerly unknown gems of wisdom from our current maestro. and obama was really born in hawaii. i love this show, even if the actors have very little skill at what they do, the prop masters are excellent

Sat, 02/22/2014 - 01:27 | 4464424 Atomizer
Atomizer's picture

I’m jealous. Your words were so eloquently stated. Even on one of my good ZH writing evenings, couldn’t have reached the depth of your post.  +1000. You understand this Bullshit going on! [Prop masters]

Sat, 02/22/2014 - 00:40 | 4464345 Seize Mars
Seize Mars's picture

Look let's face it: there is one, and only one way out of a collapsing currency: war.

At least that's what the morons in charge believe, and that's how they've handled this in the past.

War. They don't really care about how it starts. They are happy to arrange it, but if it happens organically they will sure leverage the shit out of it.

After the "really upsetting and encompassing global conflict" people won't notice it was the fucking banks themselves that imploded their own reserve notes.

Sat, 02/22/2014 - 02:16 | 4464490 drendebe10
drendebe10's picture

I want her to pick my Poweball numbers.

Sat, 02/22/2014 - 03:19 | 4464530 A Dollar Short
A Dollar Short's picture

I want her to pick up my rattler..

Sat, 02/22/2014 - 03:15 | 4464525 Rising Sun
Rising Sun's picture

Janet Fucktard!!!

Sat, 02/22/2014 - 03:17 | 4464528 A Dollar Short
A Dollar Short's picture


Sat, 02/22/2014 - 03:40 | 4464550 JailBanksters
JailBanksters's picture

At what point will the Club FUD start paying .0025% interest to the banks to take their money?

Sat, 02/22/2014 - 04:00 | 4464557 ebworthen
ebworthen's picture

"Labor force participation rate higher than expected..."

What a gaggle of clueless fuckwads/twats.

Jesus H. Christ.  Lying or dumbfucks.

One or the other.

Sat, 02/22/2014 - 04:54 | 4464586 TheCosmicTaco
TheCosmicTaco's picture

Fuck all this shit, it's TACO time!!!

Sat, 02/22/2014 - 05:25 | 4464602 MickV
MickV's picture

"How does it add up that Yellen can say that rising employment participation rates cause rising unemployment"?



BECAUSE if they are "participating" (looking for a job) then they are counted as unemployed. If they are not looking for a job (participating) then they won't be counted as unemployed. Got it?

Sat, 02/22/2014 - 05:43 | 4464609 Dre4dwolf
Dre4dwolf's picture

They are scared, because all those new people entering the labor force looking for jobs wont find any, and eventually frustration will turn into anger, anger into violence and out of violence you usually get "real change".

Nothing changes without violence, history shows this time and time again.

Sat, 02/22/2014 - 07:28 | 4464646 goldinpenguin
goldinpenguin's picture

Well the oldsters who started looking for work after homes and stocks collapsed have kind of aged out of the job market so we don't have to worry about them

Sat, 02/22/2014 - 09:15 | 4464712 AdvancingTime
AdvancingTime's picture

Unless we are prepared to "put them down" we do have to worry about those oldsters. By oldsters I think you are talking about those 50 years old and up. Sadly the boomers are about to become a major burden on the young. The generation that is now beginning to retire seems to have leverage its size into favorable policy that it will enjoy in later life.

An American born in 1945 can expect nearly $2.2m in lifetime net transfers from the "state" far more than they pay in, and far more than any previous group. A study by the International Monetary Fund in 2011 compared the tax bills of what different age citizens pay over their lifetime with the value of the benefits that they are forecast to receive. More about the huge bill boomers are leaving in the article below,

Sat, 02/22/2014 - 08:26 | 4464678 papaswamp
papaswamp's picture

Makes no sense.... 20-24 yr olds were never a threat to JOLTS and had been in a decline in relation before the crisis.

The impact has been the 24-54 yr old group which has clearly gone too far:

The retiree trend (55+) was already occurring well before the crisis:

To me the ONLY goal was to reduce the unemployment rate numbers. Job openings was never an issue in relation to participation rates. The lack knowledge of how real people live by Yellen is understandable...she her husband and son are all academic economists. Just because one is smart in economics, doesn't make them knowledgable in life. They do not go out and 'ground truth' their data.

Mon, 02/24/2014 - 00:13 | 4469756 MeelionDollerBogus
MeelionDollerBogus's picture

The crisis was the 90's and 2001, what happened in 2008 was merely a new wave. The prior crises didn't end. All talk THEN of a recovery was a lie.

Sat, 02/22/2014 - 08:56 | 4464699 Ghostdog
Ghostdog's picture

Interesting that in April of 2008 The Bernanke says publically there is no chance of a recession and yesterday a special CBS news report states that in January 2008, The Bernake says we have a seriousl crisis on our hands....

Flash Forward... In January 2014, Janet Felon says there are no bubbles on her radar.... Let's see what April and November holds....


"we need a Volcker-like transformation" Let's all pretend interest rates are at 18% and we can slowly move them to zero again..


Sat, 02/22/2014 - 08:58 | 4464703 AdvancingTime
AdvancingTime's picture

Years ago before the "Bernanke has all the answers" era, many of us criticized Japan for failing to own its problems. Many people thought Japan should face up to the mess it had created and do the right thing. Broadly accepted was the concept that only by letting its zombie banks and industries fail could Japan clean out the system and move forward. Instead the Government of Japan ran huge deficits and ran up massive debt.

As we measure the results of the Bernanke policy it seems they may not be much different than those achieved by Japan over the last few decades. In many ways this is very similar to the policy that Japan embarked on and that are now being  blamed and labeled as the reason Japan remains mired in slow growth and deflation. More of the path before us in the post below.

Sat, 02/22/2014 - 09:35 | 4464731 papaswamp
papaswamp's picture

I agree, though I believe the US will degrade much faster than Japan. A huge amount of Japan's debt is held by its citizens...not so the case in the US...though this may change with Obamabonds. I think with the 10 yr repeatedly trying to break north of 3% heavy pressure is on the Fed and they may be forced to chase this. If a break out does occur...the game is up.

Sat, 02/22/2014 - 10:49 | 4464810 Catullus
Catullus's picture

So in December 2008, these two economists were most concern with falling prices (deflation) and more people working (labor force participation)?

Glad they saved us from that hell.

Sat, 02/22/2014 - 11:08 | 4464839 famulus
famulus's picture

putin must be tempted to apply the brezhnev doctrine if the ukraine splits in two or three. in which case there will be  a mass movement of people across european borders moving west last seen in 1956. the guys in brussels will have their hands full. maybe a lot of new hands after the european parliament elections in may. interesting times ahead

Sat, 02/22/2014 - 13:21 | 4465285 the grateful un...
the grateful unemployed's picture

the media is making the same stew out of this that they make out of Al Qaeda and the Syrian uprising. (if the revolutionaries are wrong, shouldn't it be the opposite of an uprising?)  according to MSM the demonstrators want to be part of the EU. (so they can get bailed in at the periphery?)

the only certain matter is their dislike for their president. Obama should pay attention, or maybe he already has. the government of Barack Obama has threatened economic sanctions against Ukraine. The definition of Economic Sanctions is a restriction on trade or finance the one country imposes on another for political reasons. you don't have to bend that far to apply it to the Bernanke doctrine, which functions in the form of economic sanctions against the American middle class. Gov Christie has already shown he understands the policy ( a necessary prequisite to run for the office) just in case you were thinking of voting for the lesser of two evils (again)



Sat, 02/22/2014 - 14:56 | 4465648 Lordflin
Lordflin's picture

The Fed has one purpose, and one purpose only... To confiscate wealth and concentrate it into a few hands.

All the rest is just noise.

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