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"We Can't Do This Forever," Fed Admits "Market Will Overwhelm Us"
In a somewhat stunning admission of the truth in central planning (that the Swiss just experienced first hand - and perhaps Venezuela has been experiencing for years), The Philly Fed's Charles Plosser explains the following...
"It may work out just fine, but there’s a risk to that strategy, and the risk is that we wait until the point where markets force us to raise rates and then we have to react quickly and aggressively. I believe that if we wait too long, then we run the risk of falling very far behind the curve or disrupting the economy by rapid rate increases.
...
The history is that monetary policy is not ultimately a very effective tool at solving real economic structural problems. It can try for a while but the problem then is that it’s only temporarily effective, and when you can’t do it anymore you get the explosion yesterday in the Swiss market.
One of the things I’ve tried to argue is look, if we believe that monetary policy is doing what we say it’s doing and depressing real interest rates and goosing the economy and we’re in some sense distorting what might be the normal market outcomes at some point, we’re going to have to stop doing it. At some point the pressure is going to be too great. The market forces are going to overwhelm us. We’re not going to be able to hold the line anymore. And then you get that rapid snapback in premiums as the market realizes that central banks can’t do this forever. And that’s going to cause volatility and disruption.
...I think the jury is still out on the costs. Because the cost I was worried about was the longer-term cost of unraveling all of this. So maybe I was right, maybe I was wrong. That remains to be seen.
I do worry about the longer-term implications for the institution. Part of my criticism has been that we have pushed the boundaries into fiscal rather than monetary policy. That has brought us praise and opprobrium. Perhaps justifiably on both counts. I do wonder as I look down the road five or 10 years, how will that shape the institution? What happens to our independence? What happens to our ability to do things effectively? Given all that we’ve done — maybe it was all for the best, but even if it was — are there going to be longer-term ramifications that we may end up regretting later?"
* * *
So - what happens when the markets realize this?
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We're f-ed
Not gonna get "Venezuela'd" up here in Canada....I'm stocked up on toilet paper
Chuck, fuck your institution
"I do worry about the longer-term implications for the institution."
Personally I worry about the implications of the institution being around for the longer-term.
What does Plosser do, make, or contribute to humanity that will bring about a better life for me, my kids, and my neighborhood?
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Thought so.
This fucking cunt is just trying to create an excuse for himself, “I was warning about the RISKS”, just like Mr. Yellen was “warning”.
Disgusting cunts! All of'em! ;-)
Looney
I also worry about the independence of our Federal Reserve, as monetary policy comes under increasing scrutiny. Our Federal Reserve was specifically set up to be independent. The creators of the Federal Reserve bank were wise, and new that politicians could not be trusted to separate their political motives from monetary policy. The separation of Federal Reserve and government has been one of the greatest decisions in this country’s history, and has led to some of the greatest economic growth and economic stability the world has ever seen. It worries me that voters and politicians increasingly believe that they should have a hand in monetary policy. Undermining the independence of the Federal Reserve could have dire consequences for the economy, and I hope that we are wise enough to see this before it is too late.
puuuhhhhlease.
The FED is the Treasury. The Treasury is the FED.
"but, but, laws, rules!?!"
That doesnt mean shit. When it counts, count on the FED being told exactly what and what not to do by Congress.
When it counts, count on Congress being told exactly what and what not to do by the banks that own the FED.
Hows about sooner rather than later.
Fuck you Plosser, Fuck you Mr. Yellen, Fuck you Paul Krugman, and Fuck the horses you all rode in on.
All that debt is a sleeping monster created by the FED and Obozo. Yes, one day that monster will awaken, it's inevitable.
- PLOSSER SAYS FEDERAL RESERVE BANKSTER POLICIES WILL EVENTUALLY
MAKE THE HOLOCAUST LOOK LIKE A DAY AT DISNEYLAND.
I bet you've got shit load of ketones in your urine right now. Little eslse can explain why you've gone full retard on us.
How, high are you?
Delusions, triggered by sources both known but also only imagined................
independent like when Yellen had a powwow with the Democrats yesterday? Before Greenspan the FED didn't even talk to Congress. Your perfect reflection of the worst of the financial community is astounding.
"independence of our Federal Reserve,"
The FED is working as designed. Only morons use the word independant with the word FED.
I've often wondered that actually.
Take a poll of the Big Six....er, cough...Big Four Bankers now and ask them "how about those bailouts?"
Maybe the LAW against monetizing the debt was to protect....the Banker from himself?
Heck of an economy to lend into....especially if you're male and a Christian.
MDB baby ! Slowly backing away from his previous 5 yers of posting.... just like Bill Clinton, sandy Weill, Robert Rubin... etc...
This is the third central bank of the USA. It will fail like the first 2. There won't be a 4 th.
As long as the electorate is easily gulled, there will be central banks.
Does it seem to you the average voter is getting any wiser on this (or any) issue?
Thought not.
LOL - good one. Is this Janet Yellen trying to tell us why auditing the Fed is a bad thing?
LOLOLOL
The creators of the FED were all fucking bankster scum criminals. Get the fuck outta here.
Glad to see you back!
it is. watching people go ballistic on their keyboards after one of his posts is always fun. +1 MDB
That's been the other half of the fun.
One part being MDB posting more regularly, the other part watching peeps tee off on him who don't know his schtick yet.
"Our Federal Reserve was specifically set up to be independent."
Correct, and to be independent means they are un-accountable in all meanings of the word!
Dear MDB,
It's really nice seeing you here on a daily basis. Please keep it up.
A green arrow for encouragement.
If it's so wonderful they shouldn't mind a full audit, right?
I didn't hear you say anything about the debt bomb all that 'stability' is built on.
Love it, MDB! Keep it coming!
Amen what will happen they will die a miserable death as they have made us suffer. Let them worry about thier futures as they have ruined ours
Stating the obvious can be a living
Personally, I'm worried about the possibility that some form of central banking could actually exist in the future.
As long as there are deadly weapons and people willing to use them against the population there will be central banking...
Morpheus: The Matrix is a system, Neo. That system is our enemy. But when you're inside, you look around, what do you see? Businessmen, teachers, lawyers, carpenters. The very minds of the people we are trying to save. But until we do, these people are still a part of that system and that makes them our enemy. You have to understand, most of these people are not ready to be unplugged. And many of them are so inured, so hopelessly dependent on the system, that they will fight to protect it.
The Irony
As long as there are sheeple there will be central banking. OK, NWO's arrival might be the exception.
as long as people act like monkeys and lemmings it is hopeless. the majority are easily controlled.
shed the hope, ha...
find your own trail and don't look back.
Paraphrased: "Snapback's a mudda'fucka', bitchez!"
My advice: "Shoot your jizz on the phyzz!"
remind me not to buy any silver off you, bub.
lol, you know, I hadn't really thought about it that way, but that is one way to keep others from wanting to "get their hands" on your "stack". And now that I have thought about it..., I'm sorry, poor choice of words. :)
-I couldn't resist. Money is already dirty enough...
Silver should be pure and innocent, not a low class bukaki ho.
"I'm stocked up on toilet paper"
Yeah, but to put TP to good use, one has to be eating something. In Venezuela they can grow year round. Whereas in Canada...
DO NOT SHOOT!
WE COME WITH TOILET PAPER, MOUTWASH AND AIR FRESHNER!
WE MEAN YOU NO HARM!
(like Fed Plan A worked so well Charlie. What's the price difference between Pennsylvania Hub and Henry Hub again? Bwhahahahahaha. No funny money here!)
Along with toilet paper, you must have beer, saltines, peanut butter and honey, the other staples of life.
Good to know you don't need TP for your bunghole.
(Yep, third day in a row I've said it, but come on... toilet paper has been all over ZH this week. Maybe our collective unconscious is telling us to get ready to shit our pants at what's coming.)
"Not gonna get "Venezuela'd" up here in Canada....I'm stocked up on toilet paper"
Dollar bills get real rough after while.
You just need to soak them in urine for a bit, then let them dry off.
Our funny money up here is plastic. Damn near worthless for that task.
The fed has plenty of softy toilet paper too. They called it fed notes. We are being using them as "money"
Well the Canuck buck is heading below .80us, so were gonna be 'flush' with more toilet paper.
Bank of Canada being sued by one of Canadas top constitutional lawyers (Rocco Galati, almost all of his cases make the news), and there is a complete media blackout here (Canada). Case is Comer vs. Bank of Canada.
Welcome to reality, now kick start those rates,
while thou art still unhanged.
I fickity fucking fuck fuck hate how they trot out the "independence" line. Yellen giving Dems the heads up on rate raising should counter the independence booooo-sheeeeeet.
I wouldn't mess with that if i were you boo boo.
Econ professor I knew produced a study on central bank independence and found there was no difference between those that claimed to be and those that we're not. Tried to publish his findings and was shot down by all. Not mainstream enough to matter to anyone I guess.
Yes, yes we are.
For anyone who is this intimately involved in Fed activities to now admit that their actions may have ramifications is jaw dropping.
Of course your actions have consequences, every action we take has a consequence, every action has an equal and opposite reaction, but we may not see that reaction or recognize it when it comes but it will come eventually.
For the Fed to pretend that it can distort markets without consequences is utter BS. We know when this mess unravels it will wreak havoc on everyone and for what? For the sake of a few self-important people who run big banks and say they do gods work.
This will end in disaster and the only thing we'll hear from the Fed was, 'oh well, we tried' and that will be it. Lives will be ruined because of their piss poor decisions. This could all have been avoided years ago but those people who think they're smarter than everyone else made the wrong decisions.
Here's a clue: Doesn't matter what the 'markets' realize. They control the markets. Sheesh!
What? CB's can't do this forever?? WTF!!
WHOCOUDANNODE?
Ha! I was just about to make the same comment
Seems like the market controls them right now.
"Selling the seats of the Pontiac Superdome.". Get 'em while they're hot folks!
I thinking the plumbing has been sold for scrap already.
You'd think even the State of Michigan could cough up 300 grand.
Well...such is life in the New Normal!
"The history is that monetary policy is not ultimately a very effective tool at solving real economic structural problems"
so why the fuck do we have the fed , ecb, Bis etc....
and why the fuck do you have high paying job that does not produce shit/any positive in this economy or this world.
Because those institutions were never meant to solve any of the stated structural problems. They were created for one reason and one reason only - to steal the wealth of the people and deliver it to the bureaucrats.
I've been saying this for a while. The Fed is not clueless, incompetant or ignorant and they are not starry-eyed idealist Keynesians. They are the robber barrons.
They must be getting frightened or they wouldn't being hedging their future earnings potential working for Wall Street with such truthy statements.
Well, to deliver it to the top .01% via the bureacrats at least.
Absolutely correct ATM, they were created for the same purpose as their European predecessor's and have been in cahoots with them since.
This is not about fiscal or monetary policy but about theft.
I took the red pill about seven years ago and have been stacking ever since. Last call, everybody in the life rafts.
Who says that the central banks can't print forever? They've been doing it since the beginning of time, diluting silver and gold in the olden days.
You cannot print forever without a reset from time to time. That reset is usually a very interesting moment...
Interesting = Horrific
May you live in interesting times wasn't meant as a complement. IMO, we live in interesting times.
YEs, and with disastrous results. Might wanna check your history book for some reference.
Fucking unbelievable how stupid people have become.
stupid people = 8 figure bonus people
The 8 figure bonus people know the score, they know this isn't real, it's the 5 figure bonus people who believe in this shit.
yes but look where they live....... ! So many live as if their neighbors cant walk. The neighbors they ignore. But they are so close !
"YEs, and with disastrous results. Might wanna check your history book for some reference.
Fucking unbelievable how stupid people have become."
Very true. Especially your last sentence.
I just had some moron agree with my generic, correct, statement about central banks printing forever then babble on about history books and complain about how "Fucking unbelievable how stupid people have become."
Oh...
A specific CB cannot print forever. They all have a life expectancy and die when they kill their currency. To this point new ones have popped up, but perhaps humans will have learned after the a reserve currency implodes for the first time and wrecks the worlds economy and disrupts civilized society?
I would expect that CBs that we see today are going to be the last ones for a millenium (or longer).
propping up losers should be the title of this article
So they know that what they're doing is bad... and still doing it ! Isn't that the standard definition of a phychopath ?
No no... they know it's bad but it's still very profitable personally... therefore it's merely sociopathic behaviour.
It becomes psychopathic when they realize there won't even be an economy to spend any of that money in yet they still do it anyway...
Exactly correct. I have been saying for years it's Sociopaths that run the world. To a sociopath, all that matters is WINNING at all costs in their twisted mind. A psycopath doesn't care about winning, only acting out.
Add in:
Megalomaniac and Narcissist
Whatever, the Japanese bawnd market hasn't been forcing the central bank's hands for the last 25 years.
Good point Doc,
but it hasn't looked good on them.
"Markets"don't care as long as the spice continues to flow.
The worm is the spice. The spice is the worm.
Maybe closer to 30 with the downing of JAL 123 in 1985.
"What happens to our independence?"
Anyone? Anyone?
Indie-what?
I still can't believe he was serious saying that bullshit. Full retard and complete denial of reality.
It's part of the job qualifications...
He wants to be 'on record' that he 'warned' us about what was coming...
BIS has done the same thing yet the BIS is composed of the worlds central bankers.
Go figure...
What's your FEMA region?
Will that be casket or urn?
I believe ashes is the current model.
We will make good soap.
Independence? Who needs independence when we have free health care?
I still maintain Yellen could break down and scream, "Its all a Ponzi - Zerohedge and the gold bugs rape us in our dreams!!!" then pull out a pistol and blow her brains out and gold, bond yields, stocks would move 1% or so before settling to even on the day.
Markets simply don't exist anymore
That is one day I wouldn't complain about the manipulation of Gold price.
now they they are bidding up bond yields
painting the tape
and it's almost green. took them all day .. are the slipping?
uh oh ... Plosser must have been reading up on the Weimar Republic .
"so maybe I was right, maybe I was wrong..."
Seems incredibly cavalier to me - not hard to imagine a bunch of these ass clowns expressing their concerns to each other in this manner as they fuck over the masses. Plosser and others appear to be positioning themselves for the inevitable crash that is somewhere in the future. Must be getting a lot closer. Fed is losing control in public domain and cannot even pretend their ZIRP and printing is having any effect other than blowing bubbles.
I feel an urgency to stack PMs like crazy
" not hard to imagine a bunch of these ass clowns expressing their concerns to each other in this manner as they fuck over the masses. "
I remember the recent "Stunning proof that JPM controls the Fed from an insider" which decidely did not "rock" the financial world.
But in explaining what she had seen, the woman painted it as a room full of chubby government slackers who more than anything don't want to rock the boat and seemed genuinely unaware of what they were a part of.
I think that American Dad show really nails the "high clearance" government employee experience. A bunch of pasty suburbanites joking at the water cooler about surviving a weekend BBQ before going back to their offices to drone a wedding on the other side of the world.
The human races ability to destroy without being conciously evil is rather astounding.
Human, All Too Human
Hello Mr Charles Plosser,
Could you explain to Mr Inthemix96 and his friends and associates, just why when the magic money spigot is turned off you wont be 'Able' to make money off the backs of us plebs?
Could you post it in real plain English terms so we wont hang you for the cunt you are?
Thanks in advance you cunt.
;-)
Plosser: "The money spigot was intended only to make me and my freinds whole again, I dont give a fuck whether your family starves or not."
Geezus - isn't it a little late for him to be worrying these things now. . .
He never saw it coming.
His male-servant asked for a raise.
No one could have seen it coming, that's always the incompetent cocksuckers response when in fact everyone could've seen it coming
Someone needs to tell J-C Juncker and Alan Blinder to give Mr Plosser a call and explain to him that Central Bankers are not supposed to tell the truth.
Well maybe it will be jail time for those bastards.
I'm afraid iit won't be lawyers standing around them with ropes. Milestones
I can see it now: the cover of Time with a picture of Ludwig von Mises titled "We Are All Austrians Now".
That will be the day they have to changed the magazine name to "Timed" or "Time Is Up" perhaps.
@ Plosser
pro tip
have your obit up to date
avoid nail guns at all cost
behind what curve? they keep saying that but i don't think they even know what they are saying. commodity prices are DROPPING. wages are STAGNANT. sure, there are fraud and financial bubbles out there but the fed likes those. so again, behind what curve?
He's talking about Dead Man's Curve, buzzsaw99, that's the only curve left in the race to the bottom, don't ya' know.
p.s. pay close attention to strange Fat Ladies that start singing, eh.
Translation:
- DOW drops
- Goldman & other pre-chosen IB's & hedge funds get inside info
- Said Goldman & prechosen IB's & hedgefunds frontrun 'inside info'
- Grandma Matzo Ball [unannounced] mouthpieces some dovish BS
- Dow rises
- Goldman & other pre-chosen IB's & hedge funds quickly cash out their paper pennies in front of the steamroller profits & leverage short
- They shove some douchebag like this in front of a microphone
- DOW tanks [allowing Goldman & other pre-chosen IB's & hedge funds to quickly cash out their paper penny shorts]
- Keep playing the same game until Hitlery becomes RMIC [Rug Muncher in Chief]
- Turn up the volume afterwards.
- Renew the dual passports
- Fuck the goy
RINSE REPEAT
Now that would be the signal for either putting the final touches on ones "retreat" bugalow, or moving into it (or sailing in one's boat to a distant land/sea).
everyone already knows this. But you ride the train until it stops and the first ones off are the winners. Most everyone else loses.
pretty much the definition of a ponzi scheme right there
What happens is they will blame the markets and "Trickle Down." Reality need not rear it's ugly head at all. The new class progressives have effectively outlawed it.
S&P 500 downgrade of the US debt for instance.
Then they will claim what is needed is to give more power to those who caused the problem in the first place. It is a tried and true means of prying our wealth, soverignty and humanity from us.
It is easier to fake a natural disaster.
Most sheeple have been inculcated by enough Hollywood flicks to know that The Almighty Government will usher them to safety.
The slave FEMA camps will be filled consensually.
Bam, we're all socialists now. Should have known that's what subsidizing the largest corporations would lead to. Death or taxes upon the thieves of legislation!
Old joe Schumpeter said as much in Capitalism, Socialism and Democracy.
"Will Capitalism survive? I think not..."
Rather wrong question.
None of this matters until someone defaults.
What happens when the 10 year yield becomes the fed funds rate, which is zero?
How does someone get one of these jobs, making millions, to only state the very obvious only very late?
Sell your soul?
No soul required.
You are born into these "jobs".
Mazel tov.
My guess is we are about 10 miles down the road too far to think about "stop doing it"...there was no and is no turning back now...rates won't go up meaningfully anywhere ever again unless investors pave the way.
For 9 years I've wondered if they were just stupid or evil.
How many industries/markets do they need to wreck before they begin to recognize distortion?
"So - what happens when the markets realize this?"
Isn't the Fed THE markets?! I think that they already know.
The banksters need to repay us.
It is a good Plossebility CB lose control
That is their goal.
One government.
One currency.
Elimination of the middle class
The slave class replaces the middle class.
It's been written in the Protocols.
This is no mistake.
At the end of day, the only question will be - What's for dinner? That is the day when the bankers et al realize regret for introducing the masses to the World Wide Web (of deceit)
Worry about it "at the end of the day."
Plosser needs to be worried that his comments may be used against him one day in criminal court
Look no further than the WTO
Rand Paul re-introduced the Audit the Fed bill
The Kabuki dance must go on!
Rand Paul re-introduced the Audit the Fed bill
The Kabuki dance must go on!
I'm still trying to figure out how Ron with all his wisdom could have ever had a son like him that could be such a sellout!
"Fuck you and the horse you rode in on"
and like "screw you and your whole family too,"!
For this co-conspirator to say this is nauseating. What a pompous self important arrogant twat He can start by returning his ill gotten gain and ratting out his fellow self serving criminals.
P.S. For The down vote - either have the stones to put forth a position or kiss off
Don't look now but I think Larry is trying to tell us that a singular event of some kind is on the horizon to wreck the "party". When the guy who was the architect for the demolition of Glass Steagall announces his departure from the "poker table".... Get Ready!
pop some corn, its going to get interesting........
Must Watch Chris Hedges - One Nation Under Survellance 1/2 hour
https://www.youtube.com/watch?v=FQk2GguNI90
Also:
http://www.economist.com/news/united-states/21641255-why-more-americans-...
Suicide in America "Over 40,000 Americans took their own lives in 2012—more than died in car crashes—says the American Association of Suicidology. Mondays in May see the most incidents." (Unsuccessful suicides also up)
Go fuck ya self Plonker, or whatever your name is. I hope someone pushes you in front of a speeding garbage truck. Fitting end to vermin such as yourself.
Just think about this. Can barely get 3% growth with 30 year interest rates BELOW THAT. There is no way out of that.