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Former Fed Governor Admits Market Controlling The Fed Is A "Very Dangerous Development"
The constant changes to Fed policy targets and enslavement to the ticker must change, according to former Fed Governor Kevin Warsh.
"The markets think they have Yellen's number," that she will never allow markets to go down, Warsh warns "that is a very dangerous development."
We must stop QE, Warsh chides, as the inflation goals are close enough to a comfort zone and arguing for QE because of lowflation is poor thinking "because our gauges are not even that good."
Dollar strength is The Fed's doing, he adds, since they have been telling everyone to do what we have been doing... and adds "The Fed talking about the dollar tells me they are more concerned about the dollar's impact on earnings."
What worries Warsh the most, however, is "The Fed's policies changing based on what happens on the ticker... The Fed should be thinking 3 to 4 years ahead."
Finally, he crushes the memes of all the malinvestment deniers... "people in the real economy who dont have big balance sheets have been suffering from wage pressures and stagnation..."
"We tried negative real rates in the mid 70s and the early 2000s and both ended badly."
As Jim Grant opined so eloquently... "The Fed can make things look better but can't make things better," and Kevin Warsh blasts buybacks and financial engineering as evidence of this.
"This is an experiment we should be taking with great care without some obvious conviction that there is no financial stability risks."
Investors "think good times can last forever," he warns... they can't...
Amid all the turmoil in global geopoltics, "you still don't see any of those risks in financial markets.. and I cant help but think aggressive central banks are responsible for that."
The Full Warsh...
* * *
Someone is not getting invited back on CNBC...
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Imagine a world in which the markets never deline......we call it Nirvana.
I have heard another label-- hyperinflation.
FORMER Fed Governor. They're all tough guys after they're no longer in a position to do anything about it.
This will play out like the recent German Airline crash. The Fed / Central Banks will fly the markets on Auto Pilot until the time they decide to drive the whole thing into the ground, forcing a widescale monetary reset (on their terms).
Not a question of if, but rather when, at least if history is any guide.
"The markets think they have Yellen's number," that she will never allow markets to go down, Warsh warns "that is a very dangerous development."
No shit, Shirlock.
Blasphemer !!!
Burn him !!!
Yellin just does what it's told just like bernspan.
He might as well of said something negative about Israeli foreign policy. Black ballible statement.
The jaw bone's connected to the foot bone.
"This is an experiment we should be taking with great care without some obvious conviction that there is no financial stability risks."
That says everything that you need to know. This is an experiment...
They do not give a damn about any damage that they exact upon you. You are nothing more to them than a Data point, that which needs adjustment and manipulation.
They cannot care any less about your suffering. They are heartless goons, psychopaths.
That is the mindset of these motherfuckers at the Fed.
Hold the Bankers accountable. Starve the Beast. The Banks must fail. Put your efforts into taking it down.
They were shielded from the Moral Hazard that you and I are expected to take the burden thereof.
I wonder if they will like my experiment.
Reminds me of that bet in "Trading Places"
Connected permanently with a nailgun.
The "markets" (at least equity variety) are behaving eerily similar over the last three months, roughly, as to how they did from August through November of 2007 - for what that's worth.
Please, the public equity market is dead. It does not provide effective oversight mechanism for equity owners. It does not align interests between owners and agents. In fact, it guarantees the company will be run for the benefit of management, to the detetriment of the average equity owners, employees, clients and vendors.
The banksters need another crash to justify the next round of counterfeiting. That's why they stopped QE in Oct. It's a setup, again. It will last as long as central banking.
We request that you cease and desist using 'erie' in an association with the stock market..
Sincerely,
Eerie, Indiana
Erie, Pennsylvania
That's what whistle blowing is all about, the law of numbers is astoundingly not in the whistle blowers favor here, all the barriers of defence to be breached make for a loney world in whistleland.
He could get on at the Treasury. They just sit around and bitch about the fed.
Kevin, snt life grand when youre married to Jane Lauder, granddaughter of Estée Lauder and Joseph Lauder, the co-founders of the cosmetics company Estée Lauder Companies. Another Jew owned entity.
Btw, the Fed controls the markets while the Joo owned MSM controls the content we see on teevee.
There still are stock-share compensated (in large part) upper executives at publicly "traded" companies who need a pump (or at least save) of already fantastically high share prices (thanks, central banks!) to be able to sell vested shares before the whole thing crashes.
This whole thing is a now 5 year-old scam, involving central banks distorting the yield complex, public companies (even ones flush with cash) selling bonds/debt at artificially low yields (thanks, central banks!) to fund share buybacks, doing stock splits that are massively dilutive, etc., resulting in an incredibly surreal 3rd massive bubble (v3.0) in the last 15 years.
@Divided States
http://www.nndb.com/people/074/000169564/
"Someone is not getting invited back on CNBC..."
He should know better than telling the truth on mainstream media...nailgun alert!
"...nailgun alert!"
Na, He's a member of the sacred inner circle of the tribe. He's bullet proof ( and nailgun proof)
Imagine a world without markets. We call it evolution.
Where there is human culture there will be a market.
Humans trade with one another. Whether the transactions are using money, or other forms of barter, if there are humans then there are markets.
Imagine a world without markets? Yeah. Right.
I call that EXTINCTION.
"Imagine a world in which the markets never deline......we call it Nirvana."
Exactly..like the band Nirvana. .. and we know how that ended.
;)
Fed is intentionally juicing stockmarket because it is only way to increase asset values and therby convert artificial wealth creation into consumption and survival of pension equity fund growth assumptions. Just increase stockmarket margin requirements and see what happens. Even when we had irrational exhuberance under Greenspan , he did not increase margin requirements. Now we are at a point of no return of a business cycle and are dependant on monitary dictatorship.
Someone should not be watching CNBC.
THe Fed is nothing more than a Central Planner, helping one group .. deliberately...at the expense of another.
The markets can not be FREE if the cost of money, interest rates are FAKE. Bernanke felt bad for the retirees...
for a while, I guess. Does Janet?
He wants to retire himslef and now he gets it.
He should put a bullet in his head for what he has done. That is......if he was a real man.
Yes, Ben admits to fucking the children, now can we execute this motherfucker?
One person was killed in a firefight that erupted Monday after a car with two people tried to ram a gate at the Fort Meade, Md., military base near a gate to the National Security Agency, according to preliminary reports cited by two U.S. officials.
The officials said a firefight ensued after the car tried to crash the gate, and at least one of the two people in the car died. Fort Meade is home of the NSA.
Both federal officials spoke on condition of anonymity because they were not authorized to discuss an ongoing incident on the record.
The NSA headquarters is on the sprawling Army installation near Baltimore. An NSA spokesperson declined to comment.
Dressed like women clearly on a suicide mission.....still waiting for the punchline on this one.
There was an article on ZH about it yesterday. The NSA knew about it a month ago.
And how come their Pre-Crime division did not predict it and stop it? Need more data?
They would never tip their hand as to their true capabilities for such a minor incident.
What, no-one every heard of "trannys-of-mass-destruction" before?
If the Fed just stopped, what would happen?
No Fed, no attempts to control the markets.
Hmmm....
Free market capitalism?
you mean crooked bankers go with out bonuses...ARE YOU INSANE? They can't create something for nothing....they have to have zero rate money...and lots of it!
With no rule of law, Russia, 1990's. Gangsters take over.
Whatever it is, it's so bad and so spooky you better not ever even think about trying it.
But it will be tried, and when the Fed can't pony up their portion of the gold, they will have no say in the matter(s) at hand.
All this back and forth jawing has set up a scenario where the Fed can now cause total chaos when the time comes, and thye get to pick the time.
3-4 years down the road? Please, stop that nonsense.
So they have not caused total chaos yet...
The programming worked to well......everyone sees it....but nobody cares.
Range finding, probing what the public will tolerate. Throwing jabs before the knockout.
I'll bet there are even people who think they are going to walk away from this. CNBC viewers who will follow Cramer right off the cliff.
Used to be called 'trial balloons'.
Now recognized as 'Hindenburgs'.
CNBC viewership could easily fit into a shorty school bus.
Nobody watches that shit anymore and even if they did, more people sense the iceberg in the path of humanity than we give them credit for.
Planned Chaos is still planning.
But you are correct that what the dietician has for them for lunch must somehow be reconciled with FLOTUS dietary guidelines.
Screw it , skip lunch, lets plan for dinner, and think about breakfast in the morning.
---- Courtesy of Federal Reserve Whitepaper.
(your welcome)
Yea for words! Now back to your non-market electronic blips that have nothing to do with reality.
https://stopputinregime.wordpress.com/2015/03/31/under-putin-regime-russ...
Under putin regime – russians brainwashed to support USSR / Stalin crimes against humanityThis is USSR / Stalin crimes to humanity:
https://youtu.be/oVZjyyAE-78
And these are polls showing what is Russian attitude (under putin regime propaganda) to these war crimes:
45% - crimes of Stalin can be justified, but 3 years before on 2012 only 21 % thought so.
Now 57% - object calling Stalin a criminal.
2010 there where 18 - 19% of Russians who called Stalin's death as "great leader and scholar loss" now this number has increased to 24%.
http://www.vedomosti.ru/politics/articles/2015/03/31/vse-bolshe-rossiyan...
Also check out articles:
Majority of Russians Say Stalin Played 'Positive Role'
http://www.voanews.com/content/reu-poll-finds-majority-of-russians-say-s...
Stalin wiped from Soviet Gulag prison museum
http://www.bbc.com/news/world-europe-31711287
Did Vladimir Putin call the breakup of the USSR 'the greatest geopolitical tragedy of the 20th century?'
http://www.politifact.com/punditfact/statements/2014/mar/06/john-bolton/...
So now they have another person substituting for James Bulltard?
The markets will be intentionally moved down when those in control decide that the timing is right and benefitting the bigger plan. This is a very long range plan that we treat as if the day to day matters (it also explains why the day to day rationalizations for movement make zero sense). Unfortunately the vast majority of people are not only trusting in authority, but also have difficulty understanding large numbers and large time periods. We have short lives and short memories. We are children.
Try to think what you would be doing at this period in time if you were eternal and ruled this world. You care little for the bags of meat on the earth, but souls matter to you.
There "may" be changes happening, which you are aware of, but the public knows little of. You need to ensure your survival and the survival of your control.
"Pride cometh before the fall"
"First we are taught and then we are tested"
Nothing like a wet blanket to spoil all the CNBC fun they are having.
It's all going according to plan.
JOKER says buy stocks.
THis is 'their' way of putting the word out. Just like back in 08, they mocked the many that predicted the coming crash. I think it is their way of saying huh we told you so.
Though on the side they continue to forcefeed the cheerleaders and BUY BUY BUY..
Gotz to read between the lines sometimes...
September 2016!!!
"The Fed can make things look better but can't make things better,"
Friggin priceless.
Like on that Kraft shells and cheese ad.....'go on! GIT!'
They only have to do this until they hold title to every asset on the planet and have the military prepared to kill us.
"Cheap money will not induce manufacturers and merchants to increase their borrowings in an unsatisfactory business situation, Dr.Anderson declared. He cited the figures for commercial loans as reported by member banks of the Federal Reserve System in support of this contention.
But if merchants and manufacturers will not use cheap money, he said, speculators will. They will use cheap money in buying stocks, for the prospect of capital appreciation...."
"Cheap Money is not a Panacea"
NYTimes, April 13, 1930
History rhymes. Hell, it repeats. The Fed has screwed it up again.
Would the NYT still print that? Or, a cheer leading article about how well things are going under our great leader?
Everyone thinks Yellen will support the markets, the're correct, at whatever short or long term damage. If the markets started to fall people would actually look at the data!!!
The WS has the FEDs number because there is no difference between the two.
Yellen (and the Bernank and the Greenspam before her) are just lower paid versions of the robber barons on WS.
The illusion of a marketplace is a convenient pretense of a curtain between the two groups.
When the fed starts printing yaun everyone can relax....aah real money
Joe Kiernan is such a fucking whore. These talking bobble-heads have truly sold their souls to the devil.
Entire banking system needs to be ended now... no more of this crap. no more primary dealers, no more FED no more nothing...
need a new system run by the common citizens.... goy
Wall Street doesn't have the Fed's number, nor vice versa, Wall Street doesn't control the Fed - IDEOLOGY controls the Fed, in the form of Keynesian claptrap, and similar forms of economic nonsense. Vague theories that no sane man would defend keep them on a collision course with disaster.
ZIRP has not stimulated the economy - we are still losing jobs, markets, companies (that actually make / sell useful goods) ; years of ZIRP have not worked, but raising interest rates would eat up all tax revenues as interest payments without diminishing the national debt.
But they can cook the numbers to APPEAR as if we are making some progress - so they do.
Lies, all around, supported and justified by more lies. Reality is TRUTH, and liars can't handle truth, but it's coming.