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"QE Was A Massive Gift Intended To Boost Wealth", Fed President Admits

Tyler Durden's picture




 

With Bernanke gone, the remaining Fed members knowing full well they will be crucified, metaphorically of course (if not literally) when it all inevitably comes crashing down, are finally at liberty with their words... and the truth is bleeding out courtesy of the president of the Dallas Fed, via Bloomberg.

  • FISHER SAYS QE WAS A MASSIVE GIFT INTENDED TO BOOST WEALTH

Which incidentally coincides with Bernanke's heartfelt "admission" that "my natural inclinations, even if it weren’t for the legal mandate, would be to try to help the average person." As long as helped to boost the wealth of the non-average billionaire., all is forgiven. "The result was there are still many people after the crisis who still feel that it was unfair that some companies got helped and small banks and small business and average families didn’t get direct help,” Bernanke said. “It’s a hard perception to break." The truth, as again revealed by Fisher, will not help with breaking that perception.

We wonder how President Obama, that crusader for fairness, equality and all time Russell 200,000 highs, will feel about that? In the meantime, just like the Herp, QE is the gift that keeps on giving.. and giving... and giving... to the 0.001%.

US Income Gap Soars To Widest Since "Roaring 20s"

 

Record US Income Inequality In One Chart

 

Shopping With Bernanke: Where QE Cash Ends Up Tells Us Who Benefited

 

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Fri, 03/21/2014 - 17:01 | 4578503 Silver Pullet
Silver Pullet's picture

"pissing on our heads and trying to convince us it's raining."

Yeah, its all about the weather.

Sat, 03/22/2014 - 04:27 | 4579773 Mrs. Haggy
Mrs. Haggy's picture

A Vortex of Piss.

Sat, 03/22/2014 - 17:23 | 4580887 mt paul
mt paul's picture

thus the anger ...

 

it's better to be pissed off

than pissed on...

Fri, 03/21/2014 - 15:12 | 4578093 Antifaschistische
Antifaschistische's picture

Counterfeiting operations always produce wealth for the first spenders of the counterfeited cash....or credit. QE is the worlds largest legal counterfeiting operation, and it is making the .1% very wealthy.

Fri, 03/21/2014 - 15:14 | 4578100 LawsofPhysics
LawsofPhysics's picture

Yes, QE has done precisely what it was designed to do.

Fri, 03/21/2014 - 22:42 | 4579408 JR
JR's picture

Many of the 1990s' millionaires are now 21st century billionaires, making it hard on those millionaires who missed out on the Fed QE handouts.

As for those millionaires who didn’t trickle on up with QE, Robert Frank last year related their sad story:

Richard Kirshenbaum writes of a friend (whom he doesn't name) who no longer feels important in New York because he's only a millionaire. It's what Kirshenbaum calls the "millionaire malaise."

"I'm 1990s money—in a new age—with one less zero," the friend says. ..

Now, it takes at least $100 million to matter in New York. He says he feels like a "loser" because of his $10 million apartment. His wife's 8-carat diamond is out-blinged by a friend's 20-carat rock. He's proud of his floor seats; another guy buys the team…

…the millionaire malaise stems from a rapid growth in inequality—not just between the 1 percent and 99ers, but also between the 1 percent and the 0.0001 percent…

A paper by Scott Winship at Brookings shows that the "poorest" household in the top 0.01 percent had nearly 17 times the income of the poorest member of the 1 percent.

If the U.S. income structure were a building, he said, it would look more like the spear-shaped Burj Khalifa hotel in Dubai rather than a pyramid. If the top 0.1 percent were on the 160th floor, the top 1 percent would be on the 10th floor. And if Larry Ellison were on the 160th floor, Mitt Romney would be on the 6th floor and the rest of America is mixing with the top 1 percenters on the lower floors.

"The 99.99th percentile now sits on the third floor and the entire bottom 99 percent—and then some—mill around the lobby," Winship writes. "We are the 99.99 percent?"

With the new, soaring glass towers going up in Manhattan with $90 million penthouses, it's not hard to imagine that those living "below" in the prewar palaces along Fifth Avenue can actually feel disadvantaged.

http://www.cnbc.com/id/101095353

Sat, 03/22/2014 - 04:29 | 4579776 underman
underman's picture

Boo-fucking-hoo.  Fuck Manhattan.

Sat, 03/22/2014 - 05:22 | 4579803 Postkey
Postkey's picture

"As an example, she described a conversation with a couple at a Manhattan dinner party: “They started saying, ‘If you’re going to buy all this stuff, life starts getting really expensive. If you’re going to do the NetJet thing’”—this is a service offering “fractional aircraft ownership” for those who do not wish to buy outright—“‘and if you’re going to have four houses, and you’re going to run the four houses, it’s like you start spending some money.’”

The clincher, Peterson says, came from the wife: “She turns to me and she goes, ‘You know, the thing about 20’”—by this, she meant $20 million a year—“‘is 20 is only 10 after taxes.’ And everyone at the table is nodding.”

 

http://www.theatlantic.com/magazine/print/2011/01/the-rise-of-the-new-global-elite/8343

Fri, 03/21/2014 - 15:18 | 4578125 McMolotov
McMolotov's picture

Old bankster proverb: "The needs of the few outweigh the needs of the many."

Fri, 03/21/2014 - 15:25 | 4578155 TruthInSunshine
TruthInSunshine's picture

Just make sure to turn unrealized gains into realized ones before things turn, and it's all good.

Fri, 03/21/2014 - 19:54 | 4578984 Antifaschistische
Antifaschistische's picture

Bingo....example, thanks to ultra easy credit.   ORCL can borrow, 24 billion dollars

http://quicktake.morningstar.com/stocknet/bonds.aspx?symbol=orcl

Then, Larry Ellison realizes the benefit, and converts it into a multi-billion dollar real estate portfolio.

http://www.businessinsider.com/larry-ellison-real-estate-2014-3?op=1

If ORCL had to pay true market rates for debt..

a) they would not have a $24 billion dollar liability

b) savers would actually benefit from a respectiable rate of return on debt to ORCL which would benefit millions of savers, pension funds, etc..

...but we can't have that now can we.

Fri, 03/21/2014 - 15:32 | 4578172 A Nanny Moose
A Nanny Moose's picture

I thought it was, "To rob a bank, you must first own it."

Fri, 03/21/2014 - 15:57 | 4578271 onewayticket2
onewayticket2's picture

the Obama admin will use this statement to justify wealth taxes going forward. 

this is music to their ears.

 

Sat, 03/22/2014 - 07:23 | 4579888 Wahooo
Wahooo's picture

Taxing the 1% to give more to the .001%.  Fiat for the masses in the lobby.

Fri, 03/21/2014 - 16:06 | 4578301 Kirk2NCC1701
Kirk2NCC1701's picture

They live in an anti-Spock universe.

And pray to a different deity than they pretend to.

Sat, 03/22/2014 - 00:38 | 4579634 TheReplacement
TheReplacement's picture

All of this smells funny.  Don't get me wrong, the bankers are vile theives but who has considered that they were setup to take advantage of their bankrupting the country?  Could they be the American version of "useful idiots"?  Certainly when things go south they will be blamed.  They have been front and center all along.  They will be crucified.  I would be amazed if Republicans blame the bankers before Democrats.  At this level of the game I think it will be an ally.  The ally in power is Democrat.  They have the guns and the intel.  What will the bankers do?  Shoot billion$ - no match for bullets.

The NASA collapse article is a real eye opener to just how thoroughly infected the brain is at the stage.  The bug has full control now.  Practically the only thing to stop it is bankrupcy.  The only enemy is the bankers and financiers.  This is true in Russia, China, and virtually every major country as well.

Sat, 03/22/2014 - 07:45 | 4579901 GetZeeGold
GetZeeGold's picture

 

 

They got to Justice Roberts.....but I didn't think they'd ever get to NASA.

 

Looks like we're sorta screwed here.

Sat, 03/22/2014 - 12:23 | 4580363 caustixoid
caustixoid's picture

I didn't think they'd ever get to NASA.

two words: James Hansen

NASA is a military organization with a hobby of space exploration.  As part of the MIC it has always been a team player

Sat, 03/22/2014 - 03:44 | 4579749 tumblemore
tumblemore's picture

New money doesn't cause inflation until after its spent so the money-creator's money retains its value while debasing everyone else's. The central banking model is simply legalized counterfeiting and acts as a wealth transfer mechanism for the banking mafia.

Fri, 03/21/2014 - 15:01 | 4578023 DoChenRollingBearing
DoChenRollingBearing's picture

It is not going to be pretty when this all ends.  I just hope society stays intact.  But, the enrichment of the very top (usually by theft) historically leads one to think that things could get rough.

Fri, 03/21/2014 - 15:13 | 4578096 NOTaREALmerican
NOTaREALmerican's picture

Re:  leads one to think that things could get rough

Yeah, but the Elysium Support Class is 20% of the population (and we benefited allot from the Fed "wealth affect), and if you include everybody living directly and indirectly off of Big-Gov that's about 50% of the population.   

A majority want the Fed to keep the existing system going.   Duplicity always wins.  

Fri, 03/21/2014 - 15:19 | 4578129 cossack55
cossack55's picture

I hate your analysis but I am afraid you are correct. 

Fri, 03/21/2014 - 15:20 | 4578131 TruthInSunshine
TruthInSunshine's picture

Banana Republic economics teaches us that the smaller the middle class, and the greater the distribution towards a rich person-poor person economy, the more sustainably productive the economy is in real terms.

Kill the middle class, concentrate the wealth at the top .05 percent spectrum (through central planning via use of debt-fiat printing), and enjoy the booming economic growth.

...just like in Venezuela or Nigeria!

Fri, 03/21/2014 - 15:25 | 4578157 newdoobie
newdoobie's picture

History shows that when the .gov cant keep up the gifts, (or the gifts aren't enough to eat off of) riots ensue.

Sat, 03/22/2014 - 18:55 | 4581039 Rafferty
Rafferty's picture

History also shows that the most enduring revolutions originate with  a strong middle class.  That's  why TPTB are systematically destroying ours.

Sun, 03/23/2014 - 05:40 | 4581937 Rafferty
Rafferty's picture

History also shows that the most enduring revolutions originate with  a strong middle class.  That's  why TPTB are systematically destroying ours.

Fri, 03/21/2014 - 16:40 | 4578438 KickIce
KickIce's picture

It lasts for as long as EBT cards are fiiled and purchase a reasonabe amount of coke and Doritos.  Then you have to factor in the availability of Obama phones along with reality shows and ESPN.

Sat, 03/22/2014 - 09:46 | 4580033 Cortez
Cortez's picture

ESPN and sports in general are the Ultimate reality show.  Fans truly believe they are part of their team.  In reality, they are just a rube to extract dollars from.

Fri, 03/21/2014 - 17:21 | 4578556 rosiescenario
rosiescenario's picture

It is similar to what was going on in Germany prior to the rise of Hitler.

Fri, 03/21/2014 - 23:00 | 4579467 WmMcK
WmMcK's picture

It is similar to what was going on in France prior to the rise of Napoleon.

Sat, 03/22/2014 - 03:46 | 4579753 tumblemore
tumblemore's picture

The banking mafia have been doing this over and over again for centuries.

Fri, 03/21/2014 - 15:02 | 4578027 toys for tits
toys for tits's picture

The sad part is that there are so many uneducated that this will be buried in Friday night news cycle and will have no meaning to what, maybe 90 or 95% of people.

Fri, 03/21/2014 - 15:07 | 4578049 Grande Tetons
Grande Tetons's picture

It will not appear in the news cycle. 

Meaning would be lost on 99.99 percent....would be the reason. 

Fri, 03/21/2014 - 15:06 | 4578053 NotApplicable
NotApplicable's picture

Meanwhile a good portion of those 5-10% that do get the meaning will have it explained to them by the likes of Money Honey, who will describe how this is best for everyone.

 

Fri, 03/21/2014 - 15:14 | 4578094 TruthInSunshine
TruthInSunshine's picture

"Wealth Effect" "Trickle Down" bitchez. Un-Virtuous Circle (Jerk).

Just ask Greenspank, who understands what few do: You don't need to manufacture value-accretive products to become wealthy, you just need to be able to manufacture fiat to purchase "stocks"on "equity markets."

It'll all end with an epic crash, like EVERY BUBBLE BEFORE IT HAS (that's a 100% track record of bubbles popping if you're keeping track @ home).

Fri, 03/21/2014 - 16:10 | 4578324 Kirk2NCC1701
Kirk2NCC1701's picture

The only way the 0.001%-0.1% will survive the Reckoning, is to live in neo-feudal enclaves.

Fri, 03/21/2014 - 19:02 | 4578838 MeelionDollerBogus
MeelionDollerBogus's picture

OR, to manufacture diseases they have immunities to and dump them on those who rise up, thereby putting the slaves in any enclave they want while owning the planet.

Sat, 03/22/2014 - 03:48 | 4579755 tumblemore
tumblemore's picture

I think they'll create a famine.

Fri, 03/21/2014 - 15:37 | 4578191 Champie
Champie's picture

Maybe I am too uneducated to actually see an excerpt of Fisher's actual comments, or even a link to the supposed Bloomberg source? I may be too uneducated to find the information anywhere on Bloomberg's site. I am definitely too stupid to get any results on Google that do not link their source of this information to Zerohedge.

 

Is this the report that delivers this so called "truth?"

http://www.bloomberg.com/news/2014-03-21/fed-s-bullard-says-yellen-6-mon...

Fri, 03/21/2014 - 17:40 | 4578604 Questan1913
Questan1913's picture

In 2013 mr. Fisher had this to say regarding who was helped and who was devastated by the money printing policy of the fed.

"Counteracting whatever benefits one can trace to the fed's unorthodox policies are some obvious costs.

First, savers and others who rely on retirement monies invested in short maturity fixed income investments such as bank cd's and treasury bills, have seen their income evaporate, while the rich and the quick, the big money players of wall street have become richer still."

That should enlighten you. Also change to bing as your search engine as google routinely edits search results to conform to its agenda. If you become really enlightened you will remove every single vestige of google on your computer.

Fri, 03/21/2014 - 23:11 | 4579491 Clever Name
Clever Name's picture

I can also find nothing about this, after reading this article I had to get up out of bed to try to find it. Nothing. The closest I found (and there is absolutely nothing even remotely resembling this on Bloomberg now) were two articles giving brief summaries of the speech in London today (which we would assume this article is referring to, right?) with no mention of this headline.

https://www.adr.com/Markets/GlobalNewsStory?docID=1-DN20140321011351-0P9...

http://bizbeatblog.dallasnews.com/tag/london-school-of-economics/

Questan, youre not assuming that this article is based on something he said last year, are you?

 

Please, provide a link, evidence, something? Youre making me channel my inner 4th Stooge here, because I cant find any evidence to back this article up.

Fri, 03/21/2014 - 23:29 | 4579538 zanez
zanez's picture

Poor job by ZH on this story. What was actually said, with links:  http://zanesworld1.wordpress.com/2014/03/21/qe-is-a-massive-gift-to-the-...

Sat, 03/22/2014 - 03:05 | 4579736 Bucket Boy
Bucket Boy's picture

That LSE speech by Fischer is a doozy. Direct admission of market manipulation. I'm sure ZH is just getting warmed up.

http://www.bloomberg.com/video/fed-s-fisher-on-monetary-policy-asset-pur...

Sat, 03/22/2014 - 12:08 | 4580330 Champie
Champie's picture

Thank you! I wasn't being lazy when I asked if others had links, I just couldn't find anything that was a refeerence to this ZH article. I starting getting a little angry that everybody was happy to have an opinion despite the fact that nothing was really reported (no link or text related to Fisher). I actually thought the article might have been click bait.

Thank you again!!

Sat, 03/22/2014 - 14:53 | 4580625 Clever Name
Clever Name's picture

Yes, thank you for that!

Fri, 03/21/2014 - 15:08 | 4578064 doctor10
doctor10's picture

Gift?!!GIFT!!

That was horsef'n THEFT!!!

Gift would have been wiping all mortgages off the books and granting durable tax relief for non-property owners.

 

If, indeed as we all have been assured, that securitized mortgages of dubious quality were the primary cause of all these problems, that little solution should have cleard the decks.

 

Fri, 03/21/2014 - 15:45 | 4578230 Champie
Champie's picture

Can you point me in the direction of the actual comment by Fisher, or a link to the supposed Bloomberg source? This article seems to be missing both of those things.

Fri, 03/21/2014 - 23:27 | 4579532 zanez
zanez's picture

P { margin-bottom: 0.08in; }A:link { }

Lazy, inaccurate 'reporting' by Zero Hedge.

But at least they bothered to mention it, unlike virtually any MSM “news” source.

What was actually said:   P { margin-bottom: 0.08in; }A:link { }

“I don't think there's any doubt that quantitative easing enabled the rich and the quick. It was a massive gift.”

More:  http://zanesworld1.wordpress.com/2014/03/21/qe-is-a-massive-gift-to-the-...

Sat, 03/22/2014 - 03:13 | 4579738 Bucket Boy
Bucket Boy's picture

Deleted

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