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Another Fed "Insider" Quits, Tells The Truth
Once more, an "insider" from The Fed exposes the reality of an academic ivory tower clueless of the real financial markets. Former adviser to Dallas Fed's Dick Fisher, Danielle DiMartino Booth speaking in a CNBC interview slams The Fed for "allowing the [market] tail to wag the [monetary policy] dog," warning that "The Fed's credibility itself is at stake... they have backed themselves into a very tight corner... the tightest ever." As she writes in her first Op-Ed, "The hope today is that the current era of easy monetary policy will have no deep economic ramifications. Such thinking, though, may prove to be naive... All retirees’ security is thus at risk when the massive overvaluation in fixed income and equity markets eventually rights itself."
The Great Abdication
The business cycle is dead! Long live the business cycle!
Not too long ago, in a land not so far away, the business cycle was declared to be defeated. Policymakers at the Federal Reserve were credited with slaying the pesky beast that featured recessions as part of its nature. Such was the faith in the permanence of business cycle’s demise that the era was given its own label, The Great Moderation, a perfect world in which inflation ran not too hot or too cold and profit growth was accepted as the steady state.
As is so often the case, reality rudely disturbed nirvana’s prospects. The Great Moderation devolved into the Great Recession precipitated by one of the most devastating financial crises in U.S. history. The veneer of calm advertised over the prior years was stripped away. In its stead, economists had to concede that an era of benign monetary policy had encouraged malinvestment, the scourge that Austrian Ludwig von Mises warned of in the early 20th century. An overabundance of debt, if left unchecked, inevitably leads to the misallocation of resources. In the case of the first years of the 2000s, the target was, of course, the housing market.
The hope today is that the current era of easy monetary policy will have no deep economic ramifications. Such thinking, though, may prove to be naive. It goes without saying that the heat of the financial crisis merited a monumental response on policymakers’ part. That said, the most glaring outgrowth has been politicians’ exploiting low interest rates to their benefit. While it’s conceivable that well-intentioned central bankers want no part in encouraging Congressional malfeasance, the fact remains that the lack of action on politicians’ part would not have been possible absent the Fed’s allowing Congress to abdicate its responsibilities to the manna of easy money.
Of course, we all appear to have been spoiled over the last 25 years. A funny thing happened when the Fed placed a floor under stock prices with assurances that investors’ pain and suffering would be mitigated – recessions faded from the norm. Over the past 25 years, the economy has contracted one-fourth as often as it did in the 25 years that preceded this benign era. Hence the illusion of prosperity, one that has rendered investors complacent to the point of being comatose. That’s what happens when entire industries are able to run with more capacity than demand validates simply because the credit to remain in operation is there for the taking. To take but one example, capacity utilization is at 78.1 percent, shy of the 30-year average of 79.6 percent some six years into the current recovery. The downside is that the cathartic cleansing that takes place when recession is allowed to play out all the way to the bitter end of a bankruptcy cycle never occurs – winners and losers alike stay in business.
The savvy fellows in the C-suites are not blind to reduced competitiveness. As such they are remiss to expand their core businesses too much, that is, until the time they can truly assess the operating environment in a post-easy money world. The tricky part is that the credit is still there for the taking. What’s to be done? In the words of one of the wisest owls on Wall Street, UBS’s Art Cashin, such environments raise the not-so-fine art of financial engineering to a “botox state”. It’s no secret that companies have been gorging themselves on share buybacks and mergers and acquisitions, non-productive but highly lucrative endeavors. When combined the results are magnificent – costs are cut, profits juiced and bonus season becomes the most wonderful time of the year.
The insult added to the economic injury is the players who are compelled to underwrite the not-so-virtuous cycle. Broken pension accounting and incentives continue to force the hands of the individuals tasked with allocating the portfolios underlying the nation’s $18 trillion in public pension obligations. One of the least discussed consequences of easy monetary policy is the damage wrought on the nation’s pension system. Not only have low interest rates compounded underfunded statuses, they have driven pension assets into riskier and less liquid investments than anything prudence would dictate. The catalyst is the perverse rate of return assumptions that are wholly disconnected from reality. Averaging 7.75 percent, these bogeys have forced allocations into credit plays, many of which are caged in the least liquid corners of the debt markets. The irony is that many pensions have sought to diversify away from their bloated equity holdings by seeking out what they perceive to be the traditional safe harbor of fixed income investments, much of which flows straight back into the stock market via debt-financed share buybacks and M&A.
All retirees’ security is thus at risk when the massive overvaluation in fixed income and equity markets eventually rights itself. Pension math, however, will forestall the day of reckoning in the financial markets given the demographic surge in retiring beneficiaries that require states and municipalities to top off pensions’ coffers. Pensions will thus dig themselves into a deeper grave than they would otherwise by buying the credit craze more time.
Meanwhile, would-be retirees who don’t have the safety of promised pensions continue to be punished by low interest rates. The past seven years have criminalized conservative cash savings. The Swiss Re report quantified what U.S. savers have lost in interest income at $470 billion, while debtors had an easier time. It’s no coincidence that the average 401k balance for a household nearing retirement will only cover two years based on the nation’s median income. Nor is it any wonder that the labor force participation rate for those aged 55 and older has increased by three percentage points over the past decade. If only they were all earning what they did in their prime years.
And the lesson to be learned when making ends meet is simply not feasible? That would be the tried and true economic offset, the magic behind the miracle of our consuming nation, which for too long now has been debt that pulls forward the demand that should have to wait. Despite the collapse in mortgages, overall household debt remains elevated; it isn’t that far below its pre-recession level, and households are now splurging on cars as lending standards have caved. Even credit card borrowing is making a comeback – the average household’s credit card balance of $7,177 is the highest in six years. Meanwhile, student debt is scaling record heights as families struggle to keep pace with the most egregious inflation plaguing household budgets, that of higher education.
As for the gravest sin of the QE era, in the fiscal year 2015, the U.S. government paid 1.8 percent on public debt. One would be hard pressed to identify any other debtor whose borrowing costs decrease despite its trebling in debt outstanding. Actually, that’s a privilege we need to protect. As for indemnifying the nation’s balance sheet, that opportunity has been squandered by spineless politicians who would rather maintain the veneer of scant deficits rather than extend the maturity of the nation’s debts. Our wise neighbors to the south recently issued a 100-year bond. Where, one must ask, is our leaders’ wisdom when we need it most?
Could it be that hiding behind the Fed’s largesse is the path of least resistance? It would certainly appear to be the case. All the while, the excesses in the financial markets continue to build unchecked. The time has long come and gone to abandon the model-driven decision framework that pushes the Fed into an ever-shrinking corner. It is high time central bankers acknowledge their complicity in enabling Congress to fiddle while the country burns. As was the case with the revelation that the Great Moderation was but a myth, it is crucial that our leaders retake the country’s reins thus also bringing to an end the deeply damaging era of The Great Abdication.
* * *
Well now we know who will not be invited to Jackson Hole any time soon...
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Where has she been?
Well, yeah, Duh...
I'm glad the truth is coming out, it will bring death to the system....
http://galeinnes.blogspot.com/2015/06/the-political-parade-government-ch...
Stopped listening at about 2:30 when she started saying the Fed should have gone LONG..."look at [those smart people who issued] 100 year bonds." Like the American people should be indentured for 100 year bonds? Fuck you. Talk about a giant intergenerational screw job, like the one we already have isn't bad enough.
EXACTLY!!! And Mises is her hero??? Mises woulda slapped that bitch silly. Sounds like she went out and got herself a publicist and is now being auditioned for a spot on one of the Biz channels.
Can't wait to hear Schiff tear her analysis and statements apart.
Yes let's be like Great Britain and Mexico! We can only aspire to be Japan.
100 year bonds? Hell why not go for the 1000 year or the million year bonds. Push the debt so far out into the future, no one will be around to collect on it. Then party like its 1999!!
Beware the woman in the red dress!
https://www.youtube.com/watch?v=Hw88MWoqenQ
Of course the fed members know it’s a sham. They will not tell us the truth about what they are doing and thus we must look at the evidence and history to determine how they might react. If they want to call that being a conspiracy theorist, then I’ll wear that title proudly.
They're all tough guys once they're no longer in a position to do anything about it any more. But while they're in, they toe the Keynesian line and snap sharply to monetary attention like good little soldiers, all in a row.
Did someone actually expect me to click to watch that idiot on MSNBC?
Pro, when u r auditioning for a talking head position u can't turn down any channel. Hope she got Al "The Raisen" Sharpies autograph. Next stop the Bill Maher show and it's diversity of guests.
I'd drop a load in her, that's about all she's worth.
I came here for the woman in red, I was duped
I'd drop a load in her, that's about all she's worth.
Gone are the days of fact based investigative journalism, replaced by the sensationalistic BS called the MSM, brought to us by robber barons inc., and if that's not enough to turn your stomachs, just watch all of the houdini acts the wealthy pull off when the going gets rough... (E.g. Chair Hopping at the Corporate Mashups...)
This one's lost, time to leave....
Somehow everyone is three degrees removed or less on LinkedIn, so I checked out her background just now...
We shouldn't be too hard on her. Prior to advising at the Dallas Fed (whatever that means) she was a columnist for the Dallas Morning News.
Before that she was in sales at DLJ. <yaaaaaaaaaawwwwwwwwwwwwwn> Just another talking head with institutional gravitas behind her back.
It means she gives good head and keeps the office secrets quiet.
That very distant photo of the red dress was doing her favors, up close she looks butch and manly.... Shall we say rather Bruce Jenner-ish
http://www.cfasociety.org/philadelphia/Lists/Events%20Calendar/DispForm....
"The Fed's credibility itself is at stake..."
Oh, I thought the Fed lost all credibility in 1929.
Hells, Scientology has billion year servitude contracts. And the Fed is nothing more than a bunch of bad economic professors worshipping at the foot of a dead man (Keynes).
Dovie'andi se tovya sagain (It's time to toss the dice)
Got Karatbars?
Yes, it seems eternal apparational riches via fraudulently obtained debtvantage is the future for all punctured sovereigns (as in wehrever the BIS holds sway on monetary policy)...
And seriously Japan....I don't knwo about Mexico that much, but long first had Japan experience.
The BOJ via F.E.D global connected yen carry siphon is going to have to clamp shut and start reversing sometime soonish. Japan cannot go on bloating for-ever....
But as we discovered lately, they will blow it via China...or perhaps Chindia...lot's of lemmings to scalp here yet......a master-stroke if they pull it off....
But anyways, yes, Debt addled, punch and other-wise drunk brits and japs and hombres are the leaders...
Heaven help the indebted...
......
https://www.youtube.com/watch?v=AqO8IxnHLUs
This little frog fighting back?
First TX gold...now this ;)
http://www.americasfreedomfighters.com/2015/06/15/breaking-texas-just-slammed-obama-by-passing-toughest-border-security-bill-in-america-this-is-epic-video/
"she started saying the Fed should have gone LONG"
Exactly what I thought when she said 100 year debt instruments. Having a background in what the world calls "economics" I believe she is wrong about reliance on models. The problem is the type of models used in economics. The models do not reflect "reality" and are created based on Keynesian theory. Also, the models fail at calculating/considering manipulation of the markets. Rather than developing models of how human behavior is formed and executed, economists create models from ridiculous theories and try to make the real world behave accordingly. They along with the central bankster associates want to rule the world.
In one respect she is correct, this is the tale wagging the dog.
"What does it matter" - Killary War criminal Tresonist Clinton
It's a Criminal Fraud Global UNITED STATES,CORP. INC. system owned by criminals & run by criminals set to collapse all done by design, all done by agenda.
Why debate it any further? Why argue again & again over the same Political, Economic, Educational & Religious System all based on deception, lies & fraud?
Hope for the best,( sarcasm) expect & continue to prepare for the ultimate epic Collapse.
Public hangings to follow.
You missed the part about how well the domestic economy is doing with things like wage inflation...
It's what I said here many times before.
The Feral Reserve has to save their own ass now
So they're going to raise rates no matter what and fuck the markets.
You should talk to Doc Engali about that. He might even take a sandwich bet against you on that point. Ask me how I know.
Fine! I'll talk the bullet since no one wants to: How do you know debt?
Stay away from construction sites honey.
She's just a past-her-prime whore trying to make a buck.
This is a bait and switch. No truth here. They are making it sound like the Fed made a mistake. There is no mistake here. What is coming is EXACTLY what they wanted.
Athemos gets it. This is social engineering, c'mon it's on MSNBC for god sake! Present to the subjects an insider breaking out of their corrupt institution (Snowden) Give her a mouthful of half truths that glean over the core issues and then have her present the next phase of monetary expansion that was always the goal to set te hooks deeeper into your neofeudal order.
How to become famous in 30 seconds or less! Tell all on the rats still on the ship!
Nice legs.
Total click-bait photo. Don't look too closely.
Linda Carter in her wonder woman years.
True whistleblowers don't live, much less get MSM airtime.
Message:
The FED does not have your back anymore, expect an "accident" soon.
The FED is not made up of bumbling ivory tower types, it's run by the big banks. These decisons are planned in conjunction with the macro goals of the psycopath elites. This is why trusting the CB's to take care of you forever is a mistake. Psycopaths do what psycopaths do, they destroy shit. These ones are gearing up to destroy this system cause they want a more controlled one.
Imagine that; having total control of the monetary/financial system isn't enough for them. They want more.
Psycopaths do what psycopaths do, they destroy shit.
Yup. For their own benefit, only.
This is reminiscent of Andrew Huszar's case, a former Federal Reserve employee who implemented the initial Quantitative Easing program in 2009 under Ben Bernanke. Almost six years prior to Joseph Stiglitz, Huszar was a progressively oriented individual who foresaw how QE would lead to ever widening inequality. He ended up writing an op-ed in the Wall Street Journal about the issue in late 2013, titled: "Confessions of a Quantitative Easer".
warning that "The Fed's credibility itself is at stake... they have backed themselves into a very tight corner... the tightest ever."
Credibility is at stake? Really? I guess for the clueless (yet to be clued in). The FED exists to increase the wealth of it's members and those that really own the members, period! As far as the Fed Stocked Acedemia story goes......that one is 50+ years old now.
Throw that Money & Banking textbook on the fire on Xmas eve. You won't have any presents this year.
The banksters are having lots of "insiders" from lots of organizations come forward to tell the public "what's really going on." But what they're really doing is spinning a false narrative for public consumption. The Fed is no "academic ivory tower"; it is a wealth extraction mechanism run by the bankster families and their minions. The Fed knows exactly what they're doing, and it's all on purpose.
Here is a notable example:
Globalist shill Paul Craig Roberts and globalist octopus Goldman Sachs confirm bankster strategy for GreeceDamn dude! I'm really getting to like you.
Listen to this guy, he knows of what he speaks.
"Quantitative Pleasing,"... mmm .. so size does matter?!
You got it.
The FED fraudsters and bankster buddies have a cadre of spin doctors that keep everyone debating all the wrong shit.
Hey, Carpenter1, I think you have a distraction bot hitting on you below. Don’t let ‘her’ alluring tone and all those ooohs and aaaahs fool ya. …. She’s only in it for her coder’s pay check.
~ DC
Hey, great to see you posting here. I've been leaving links to your pieces here and there. I've not seen a better overall explanation for what is going on than what you have proposed on your site. For anyone wondering about Veriton, click on the link and go through his archives. Lots of good verifiable background info there.
Oh, and kudos for exposing those Veteran's Today punks. Just saw that there was a falling-out among authors there, with Jim Fetzer starting his own website and linking to your 'expose's' of Gordon Duff and others! A nice feather in your cap for sure!
Yep, one of the best write-ups I’ve seen on this disinformation, mind man-nip, rule the narrative horse shit.
Watch the hands and follow the money (if possible) in both directions. Up and down the chain.
Lips? … Not so much.
~ DC
BINGO!! The Greece asset-stripping project has been put into place to punish Greece for not extracting enough via taxation.
In most countries, the central bank asset stripping is dependent upon IRS reporting requirements which provide a road map to that countrys' and their citizens assets. Greece-and Italy-have never been very particular about compliance with their citizens' asset reporting requirments. One of the reasons they were brought into the EU was to bring the full weight of Brussels down upon them.
Once the data is collected, targeted taxation and regulation provide the mechanisms to complete the asset stripping project. Just before the government legislature is to vote, the immigration gates are opened to quell the native opposition to being raped.
Lather, Rinse, Repeat until you're about as stripped as the USA is today. They started the European project in 2000
The guys on the inside of each country making it happen are the ones that make out pretty well-besides the banking houses!
"The Fed knows exactly what they're doing"
You think? Look what entity created it:
http://tuppersaussy.com/museum/html/writings/articles/15brienner.html
When the Superior General says print. You print ..
What's a game changer? When Texas establishes it own Fort Knox. (possibly at Fort Hood.)
ftp://ftp.legis.state.tx.us/bills/84R/billtext/html/house_bills/HB00400_...
500 metric tonnes is not a bad start. Considering that the Union, purporting to have ~2000 metric tonnes, more likely is scrapping by to produce 1 single metric tonne. (Sans Amb. Leo Wanta's claim to have his own personal stash of 2000 metric tonnes, on top of his purported (confirmed via a U.S. District Court) $31.2 trillion.
http://www.veteranstoday.com/2015/05/27/lee-wanta-biography-intro/
Wow! An Austrian at the Fed. Who'd a thunk it.
The development of Austrian Economics was fostered by the European royal families, then later by the Rockefellers. It is the economic theory underpinning the New World Order, and this woman is shilling for the NWO.
The coming BRICS gold standard, Ron Paul, and the Rockefellers Like it or not, here is more on the Rockefeller connection to Austrian economicsRockefeller's not stupid. Just because he "follows" Austrian economics doesn't mean he is promoting it in any way. Do you think he actually believes the Keynesian bullshit? Of course not. He is an Austrian because one must truly understand reality before one can warp it to suit one's purposes. Look at how much money the non-profit foundations (including the Rockefellers') pour into the academic institutions to promote the status quo in the Economics profession.
Get back to me when he is pouring hundreds of millions of dollars into promoting Austrian economics at leading Universities. Then I'll be more inclined to believe what you are suggesting.
David Rockefeller was tutored by Hayek himself at the London School of Economics, and the London Establishment has been pouring lots of money into promoting Libertarianism and Austrian Economics...
The Illuminati strategy of tension and release (Update 2 – The Mises Mafia is on the move in Brazil)It is all part of the dialectic struggle they are setting up. Austrian Economics and the likes of Ron Paul, Nigel Farage, and Marine Le Pen are being marketed as the "heroes" who will save us from the Keynesian "morons." But they work for the same people the Keynesians do. The globalists are scaring us from one side so we'll flee to the other side they've set up for us. To understand this strategy, start here...
Understanding the NWO Strategy
This little bit about Austrian Economics was just posted...
[Addendum 1 - 17 June 2015]
More on Austrian Economics’ connection to the “royals”
Let’s have look at how Austrian Economics began...
“The school originated in Vienna, in the Austrian Empire. Carl Menger's 1871 book, Principles of Economics, is generally considered the founding of the Austrian School.” - source
“Menger was born in the city of Nowy S?cz in Austrian Galicia, which is now in Poland. He was the son of a wealthy family of minor nobility...
In 1876 Menger began tutoring Archduke Rudolf von Habsburg, the Crown Prince of Austria in political economy and statistics...
In 1878 Rudolf's father, Emperor Franz Josef, appointed Menger to the chair of political economy at Vienna. The title of Hofrat [Councilor] was conferred on him, and he was appointed to the Austrian Herrenhaus [Imperial Council] in 1900.” - source
As you can see, the connection between the “royals” and Austrian Economics goes all the way back to its origin. Knowing this, ask yourself, “What was the royals’ interest in this? Were they developing this theory for the good of the serfs, or was it developed in an attempt to maximize the power and wealth of their royal families?”
The answer is pretty clear, isn’t it? The interest of the “royals” (who are now the “Occulted Powers” since they erected the Democratic Facade between themselves and their slaves) is in maximizing their wealth and power by finding the best balance between wealth production and wealth extraction. In other words, “How do you get the serfs to produce the most while simultaneously getting them to hand over the most?”
The classical economists are the ones who coined free markets, and free markets were to be free of rental overhead. The circular flow of money was to be free of unearned income, land rent extraction, and other costs that lead to economic serfdom.
Austrianism was part of the millieu that changed this notion of free markets to one where the market was to be free to extract rents. For example, inelastic markets are to be converted from the commons to then take tolls. Bond and creditor action is one way to convert and grab.
Neo-liberal othodoxy is anti-socialist, anti-labor, pro-bank and pro-rentier.
Socialism is unnecessary if Capitalism can figure out how to distribute prices (this has been solved with social credit theory).
Generally, the things that matter are hidden from view, and the things that don't matter people talk about.
Ayn Rand/Hayek/Chicago School economy are all dialectics of usury funded money power. A loud voice is always organized and funded.
So, this all suggests that the Durdens, PCR and this bint on tv are all working on behalf of the Rockerfella's et al...
If they are on TV, you bet. Same with virtually all prominent mainstream and alternative media talking heads. As for Durden, he frequently posts articles by Brandon Smith, so I withhold judgment. Any total sellout wouldn't touch Brandon Smith's work with a ten-foot pole
There are many Tylers. Not all are the same.
As I've been perusing your blog, it appears you have a very keen analytical eye. I've been saying for a while this whole/hole AIIB thing was controlled opposition coordinated effort.
Bill Cooper's (rip) mystery babylon series spells this out also. I'm on part 7. Coupled with your take on the Pope & all, my guess is this is why there's all the squawking about going cashless. It could very well happen with Greece and/or the Pope.
Agenda 21 appears to be rolling out with a vengeance, financed by China...see Anaheim.
I see seizure of any & all property/PM's when this SHTF barring civil unrest a la JH15. Much like is happening in SA & VZ.
What say you?
Surely you don't mind if I pass your blog to another, eh?
I've been reading your amazing blog for about 7 months now. Thanks for your work. You have helped me understand several different points on the NWO I was not clear on. I check several times a week to see any new posts. And I did find you by clicking on a link through ZH last year. Thanks again.
Like porn...makes you feel good but accomplishes nothing
"Finance" is supposed to serve the nations needs for capital formation and development.
Instead, it has fused itself with government and has perverted the rules such that We the People now serve finance.
Little wonder there is no further capital growth and development in the USA.
its gonna take quite a crowbar to split the two apart
Sucking the teat while it was cozy and warm.
Went to home depot. Nail guns were sold out.
Female, won't work... However having a hair drier in the bathtub is a different story.....
YUP.. the FED is officially a EUNUCH.
Wait, so they really exist only to steal American productivity?
The fuck you say.
Everything not nailed down disappears and now they've got crowbars.....
Hot? Well, not really. But now she has to jump too.
Get to work Mr Chairman
The Fed will either make a token interest rate raise, to save face, and to be quickly reversed...
Or it will drop the facade and say, "I am FED (up)!!! Hear me MOAR!!!"
Down either path CB's are set to go full moron.
Another rat trying to save her neck?
yes
<< Another rat trying to save her neck? >>
We'll be sure to give her a fair trial .....
Then the Guillotine...
When you are hanged, just because your neck is broken and you cannot move your body does not mean instantaneous death at the end of that rope. Hopefully that shock knocks you into unconciousness as you strangle to death although that is not guaranteed. You can linger on for many, many minutes when it is botched.
It takes about 15 seconds at the most after your head is detached from your body.
Perhaps it is gory yet it is more merciful.
(And yet people here complain about the Saudi executions by beheading? Not enough suffering I guess.)
If she was the "adviser", what did she advised?!
Nipple errection meter... They'd look at her and say, "nips are hard can't raise rates"
How classy of you.
All retirees’ security is thus at risk when the massive overvaluation in fixed income and equity markets eventually rights itself."
Of course, retirees are screwed. Their portfolios will get a massive haircut. And then they will find that inflation was 10 times higher than the fake numbers provided by US BLS. So there is another major cut in the true values of their portfolio. And further, Social Security and Medicare benefits will be cut.
Massive fraud as perpetrated by the Fed will cause massive suffering.
Forward.
See how much inflation is being understated:
Chapwood Index shows real inflation in US.
In 2014, it was 9.7% - 1212% of official US inflation (0.8%)
http://www.chapwoodindex.com/
I can just see it now a bunch of old geezers wanting to make a mends with their adult children as they realize they have jack shit. This to be coupled by the illusion that the adult childrens' realization that they are about to inheret jack shit. Should be fun to watch.
What's for dinner tonight, dear?
Dog food or Cat food?
Those that were on the gravy train shall learn to eat the gravy train.
https://www.youtube.com/watch?v=MOXSKR7wM2U
Stanley, don't be silly.
Of course we're having dog food tonight. Since we ate the dog last week, it would be a shame for it to go to waste like that.
Yep - most people my age (31) have parents that are going to be a huge burden on them. Forget any sort of inheritance, you're gonna be supporting them and your own kids at the same time.
2 milfs on 1 video. I wanna see the redtube version.
Here's the rub tho -- the American people have known since the mid 80s that the entitlement freight train was doomed to run off the tracks. Of course Congress did nothing as there was zero demand for something. Once it was clear that fiscal policy was forever off the table -- I submit with the passage of Medicare Part D, a massive new entitlement -- we should not be surprised that monetary policy stepped into the breech to try to paper the entire mess over.
Who the fuck was in charge of vetting guests today!?!?!!? -CNBC Chief
Fed said FUCK you, no hope for you, openly...
Ehh. When watching the video, I don't think she was critical enough and I really dislike her idea of moving to 100 year bonds. That is insane. On one hand, she criticizes congress for being fiscally irresponsible with all the cheap credit the Fed created (which she seems at least somewhat critical of), then she recommends moving to a 100 year maturity bond? Let's screw over our great grandchildren while we're at it.
100 year bonds inevitably will be inflated to zero. They would collapse in value very quickly with even a small uptic in inflation. But in the event of hard money, gold backed, would be a disaster.
Regardless of any possible outcome, this is just a bad idea. Probably means they'll do it, unfortunately. Didn't Churchill say that the US always does the right thing trying everything else first? Probably. In the end, people will probably be so shocked by what has happened that they'll actually elect someone who gives a damn about fiscal responsibility and tries to do the right thing, which may involve default and ushering in a short-lived new era of fiscal hawks. Wash, rinse, repeat.
100 year bonds will make it easier to finance trillion dollar coins.
http://www.forbes.com/sites/kotlikoff/2013/01/19/the-treasury-has-alread...
The maff will be easier on the algos, therefore faster.
Maybe I am giving them too much credit, but I really don't think Congress, as reckless and stupid as they are, would seriously consider such a thing. That would be the final Chiquita in the transformation to a banana republic.
Fiat generally do not have 100 year lifespans and one expect people to buy 100 year bonds? Some countries dont last 100 years. If the 100 year bond is issued what happens during the event of a defsult or regime change?
Debt is a bet on future returns and that the security will be worth more later than now. Approxinately every 40 years, the world sees a major change in global reserve currency just take the last 100 years, the diminishing reserve status of the pound to Bretton Woods to closing of the gold window. Somehow 100 year bonds are the solution? WTF?
Yet the one of the few instruments to hold its value during an 100 year bond will be gold and real estate.
10 year car notes
No kidding. I read about that. Perhaps my fiscal conservatism doesn't allow me to go out and buy new $45k cars, but when I heard a some of the new Jeep Wranglers were going for that, I realized just how bad things have gotten and why they are pimping 10 year loans now.
Nobody is responsible. LOL
"They" always telegraph to us peons what is going to happen. That way they can sleep at night. Most sheeple are just too dumb to heed the warnings. Heed the f-ing warning!
" Nail guns get you're Nail guns here! "
I'm very glad people find their conscience and make public confessions that may wake more people of good will up. With that said, and with no disrespect to Ms. DiMartino, I'd hit that.
they are a criminal organzation.
they ain't got no credibility to lose
Did a quik image search and have just gotta wonder-
Was Danielle DiMartino Booth formally known as Dan Dimartino?
Sounds like a future victim of a nail gun suicide!
The sound is good...I just wondered about how much percent of us may believe in what he said.
Interesting. I just quit my job today at a large pension (no seriously i did). Maybe I should call this chick up and we'll get a anti-fed hedge fund going.
Thoughts?
Where is the panic? That's what I want to know.
They all dance around the real issue which is the Fed is owned by super wealthy and powerful people who set the policies for themselves. After all, these people are employees, and the same goes for people like Jamie Dimon. Sure, the folks who implement the policies and manage the money can be rewarded (Dimon is worth $1 billion now) but at the end of the day they take orders from somebody else. The same can be said for Congress, the same can be said for the executive and juducial branches. These folks do not get ahead by saying no. And if they do they are removed. If they cannot be removed peacefully they are removed violently. The problem is the global power structure and their absolute control of markets. There are no such thing as free markets any longer. When you can arrange the cards in a deck, it's easy to win a poker game. The suckers are the last to know.
Great set of gams.
At last, something useful from the Fed.
@ a conservative 5% interest rate, I was earning 270K/year on savings, now I'm making 27K if I am lucky.
The FED set up a system where the borrowers can overborrow, get bailed out thanks to Oblahblah's HARP program and then these same borrowers turned around and resold their homes at a profit which usually equalled the amount of the reduction under the Govt's forgiveness program.
As usual - being responsible = being a sucker
Hate to say it, but this economy is about the survival of the unfittest. Been that way for a while and reaching new highs.
Not easy to accumulate north of 5 million in "savings".
Congratulations.
Damned if they do, damned if they don't. I think the FED will raise rates just a tiny bit to see how the market will react. Then they are going to form a study group to see how they can manipulate these causes when they raise rates the next time. That's how they did it with the tightening.
Yeah bitch, let's take advantage of these low rates and issue 100 year bonds. Like taking out of 30 year loan on a Kia. Scum whore.
Yes let's borrow more on low rates. What is interest rates rise? You know 100 years is a mightly long time for a uncertainty and let's have government binge spend on bills that only need to be paid 100 years from now, all kinds of government programs and goodies, then when new 100 year bonds are too expensive on interest, oh well. She tries to sound reasonable, even bringing up Mises, but I suspect she is a closet Keynesian, like that of Joseph Stiglitz, or something. Only a Keynesian would propose borrowing more on low rates. You know like how people borrowed more when ARM where cheap, or how Greece was caught in a interest rate hike which ended their cocktail party.
Hope she's avoiding nail guns.
laurent lyster got some fake plastic mask and dressed older. nah...she's on yahoo finance being a media whore.
at 247 this dumbass bitch says congress should have extended the maturities on our bonds. what a stupid bitch. yea. they're GOING to do that. when they NEED to.
that is her 'criticism' . fuck this bulshit.
The Federal Reserve should lose credibility. They deserve it.
well she burnt that bridge to the ground... How about a nailgun for the effort
Maybe the talk of the 100 year bond pleased the holder of the nail.gun. if faced with a nnail gun just bring up the 100 year bond. It may save your life
I like the shout out to Mises. But maybe pointing out that the government allows this expansion of money and credit on the back of a regulatory requirement to hold USTs as collateral. Let's not pretend anyone is buying treasuries because getting paid 1.8% over the next decade is a good investment. And let's not pretend that the entire mutual fund and pension fund industry is happily holding on to these "safe" asset classes.
You either love bonds or you like them if you're handling other people's money in the US. It's not just the fed that's complicit in this. This has been the case pre-fed. They allow you to inflate, you must finance their debt.
What's beyond bullshit was the fed's decision to buy treasuries in QE 2, twist and QE 3. There was never a reason to monetize the collateral base. You look at $2.5 trillion in excess reserves and concluded the fed needed to continue to make these LSAPs and twists and flow purchases.
And for what exactly? If treasury rate had gone to 3%, Europe would be tripping over their balls to buy it.
Even if you're not in the "let the reset happen" camp, you can't deny the Fed fucked this up since 2010.
Someone else at the Fed says Ludwig Von Mises is their economic hero - Oh the shame
A one hundred year bond, but no interest rate hike?!? What a fucking idiot. This still destroys real capital and savers you stupid cunt.
Return real collateral requirements for ALL money creation!!!!
Who is lending to the US for 30 years? She expects markets to lend to the US for 100 years???
Is she calling on more fiscal stimulus? If so, I disagree with this. Stimulus is another gimmick that is not proven to work in the long term. Stimulus is only visible in the short term, but when funds been consumed, back to recession. Stimulus creates malinvestment just like cheap money policies do. Stimulus creates the illusion of more incomes when there isn't. Just a splurge of government spending masking as income. Once you remove that spending, the real income in the economy is revealed once again. That's the fallacy of Keynesian fiscal stimulus. It's witchcraft in my view. That stimulus packages creates additional income. It only does so when the stimulus is still there. It's investments that produce sustained incomes that make consumption possible minus the stimulus. For investments, you need deferred consumption, ie savings, for investments to be made possible to create incomes. In the current economy, people are already indebted fully. They are not selling assets to splurge on consumption like in 2003-2008 housing bubble (their equity), they hit peak debt. No asset sales possible based on leverage for the consumer.
If he next QE fails (which it will, question will another QE happen), then Congress will undoubtedly bring up more stimulus packages to "boost" aggregate demand" to such failure just like how central bankers failed to increase "aggregate demand" through their monetary tools.
Good thing she brought up Mises. Mises studied interest rate prices and their importance in the economy as well as money in the economy in general, but she didn't get the picture why fiscal stimulus doesn't work either just as monetary stimulus doesn't work.
Who owns the FED? Who owns the corporations? Who owns the government? All this talk of them being separate and blaming any of these parts is nauseating!!! They're all owned by the same people and families. We all know this or should by now. Its really that simple.
She's bullshit
She has to be corrupt simply because she worked at the Fed
Their softening us up, for a huge Mia culpa.
She was on TV station that' is 'general mouth piece' for bullshit !
She were genuine wouldn't have got within a mile of that show.
"She" anyone heard that song by Charles Aznavoir"
"It goes without saying that the heat of the financial crisis merited a monumental response on policymakers’ part."
That's a key statement - and one that has been parroted more than a few times by 'respectable insiders'. In fact, the polar opposite is true. It is Because of the '$monumental $response' and in so doing, thwarting a true market-clearing event, that we find ourselves here. Then again, these people knew full well what the socio-political ramifications of a True market-clearing event/s would have meant for their futures...
In its stead, economists had to concede that an era of benign monetary policy had encouraged malinvestment, the scourge that Austrian Ludwig von Mises warned of in the early 20th century. An overabundance of debt, if left unchecked, inevitably leads to the misallocation of resources.
Debt is an in-process, yet to be delivered, "promise to complete a trade". It is what allows simple barter to be extended over time and space.
What is an overabundance of debt? Who's to decide? How is it detected?
Well, if there is really an "overabundance" of debt, that means some trading promises will not be kept ... and shouldn't have been made in the first place.
But nowhere do we monitor undelivered trading promises (i.e. defaults). And note: a rollover is a default!
So how in the world can anyone say anything about an overabundance of debt ... how it comes about ... how it should be inhibited ... who should inhibit it.
These Mises monks are really starting to be annoying!
withglee, interest rates regulate over consumpiton and over investment with credit markets. When the Fed ignores real market rates and suppress interest rates, ie expand credit, you get a overabundance of debt. If you don't understand interest rates, then you don't understand Mises period. The Fed has created too much debt. Is this undenialable? How? They run 0 interest rates for almost a decade now and QE programs on top of that. It's clear you don't understand Mises, otherwise you wouldn't get lost when you state
Who's to decide?
"What is an overabundance of debt? Overabundance of debt is when the Central Bank expands credit when there is no savings to back it up. When there is no savings to back it up, any decreases in credit will result in a recession, or what we know as the business cycle.
Who's to Decide? In a free market, interest rates are price like any other price, just different importance. They are supply and demand influences, and time preference. In central banking era, central banks become masters of interest rates and yes looking at the increases of debt.
How is it detected?" Economic bubbles are the most visible points of detecting excess credit. Looking at interest rates is another. Yes interest rate is a price. Prices are information. Did you know that?
I suggest you read Mises instead of making ignorant criticisms about Mises when you obviously never read his work. You ask questions that Mises already answered and act like they are unanswered, because of your own ignorance. If you bash Mises, at least know what you are bashing instead of making a fool out of yourself. Austrians been on this planet longer than you studying economics.
you fool....
Majic Money: It is you and the Mises monks who are the fools ... as are the Keynesians. You are both working with a false approximation of what money is and how it works. In both of your cases, you are doing so to your advantage ... it allows you to game the money system to the detriment of the market and the traders that make it up. I'll now address each of your points.
withglee, interest rates regulate over consumpiton and over investment with credit markets.
Sort of correct ... but not by the mechanisms you think. In a properly managed Medium of Exchange (MOE), the governing relation is: INFLATION = DEFAULTS - INTEREST = zero. As such, when defaults (failures to deliver as promised) increase, so naturally interest burden on "new" promises increases. This makes them less viable and thus more difficult to sell. But it doesn't happen twice a day around a table in London by a process called LIBOR. That's just a plain-and-simple manipulation and gaming of the system.
When the Fed ignores real market rates and suppress interest rates, ie expand credit, you get a overabundance of debt.
The Fed can't force people to make trading promises. What the Fed can do is fail to reclaim defaulted promises with equal interest collections. Thus, the Fed "can and does" allow INFLATION. It even claims 2% is the right amount of it. And whose promises does the Fed certify as money most? The USA government ... which just rolls over it's trading promises and thus continually defaults. The result is INFLATION. It is how the USA government finances itself now that it has exhausted its ability to collect more taxes.
If you don't understand interest rates, then you don't understand Mises period.
Mises doesn't understand interest rates because it doesn't understand money. End of story.
The Fed has created too much debt.
No. Traders create debt. Debt is an "in process promise to complete a trade". It is contracted by traders. The MOE manager (in our case the Fed) just certifies those trading promises and monitors them for default. The Fed is clueless about this. It has no idea what defaults are. Thus, it has no way to collect the correct amount of interest to assure INFLATION = 0, all the time everywhere.
Is this undeniable? How? They run 0 interest rates for almost a decade now and QE programs on top of that.
Correct. They should be taken out as our MOE manager. They should have been collecting large amounts of interest to meet the defaults served up by the USA government. They don't do that. Rather, they mitigate those defaults through inflation. But now they're trapped. If they recognize inflation, then the USA government just defaults more because the interest they must pay goes up. The Fed and the USA government are trapped. They can only lie with their numbers for a little longer. What I fear is some process equally clueless, like the Keynesians or the Mises monks will step in as white knight when we have the inevitable reset. If you people could get a clue, we could actually fix this thing for all time.
It's clear you don't understand Mises, otherwise you wouldn't get lost when you state
Who's to decide?
I understand Mises better than Mises and his monks understand Mises. But lets put that aside for a moment and see if your elucidation traps you ... as it always does.
"What is an overabundance of debt? Overabundance of debt is when the Central Bank expands credit when there is no savings to back it up.
No. The first clue of a problem is in a default of a certified trading promise. Such default, under proper MOE management is immediately recognized and mitigated by an equal interest collection. It's an actuarial process, just like watching claims to determine premiums in insurance. In a properly managed MOE, credit is in absolutely free supply. Anyone is free to make a trading promise at any time and any place. Reliable traders do so with no interest load. Deadbeats must resort to payday loans and pawn shops to get their trading promises validated. The analogy to a risk pool is perfect.
When there is no savings to back it up, any decreases in credit will result in a recession, or what we know as the business cycle.
This is the ridiculous and obvious flaw in the Mises model. What in the world does the amount of money I can save have to do with trading promises you can make?
Who's to Decide? In a free market, interest rates are price like any other price, just different importance.
This is wrong on its face as I have demonstrated. INTEREST, and whatever you want to ratio it to to get a rate is a direct function of DEFAULT experience.
They are supply and demand influences, and time preference.
You are correct. Prices are a function of supply and demand for an object of a trade. But you are wrong in extending this concept to money. Since money is "a promise to complete a trade", supply and demand is always in perfect balance. It's the nature of a trade. Regarding time preference, this is another huge flaw in the Mises model. Take a perfect market where all traders act perfectly responsibly. They deliver on their trades without exception. Thus, defaults and interest collections are zero. When you run the (1+i)^n formula you get 1. Zero time preference. Nothing in the Mises model allows for that.
In central banking era, central banks become masters of interest rates and yes looking at the increases of debt.
How about we quit talking about central banking. How about we stop talking about banking altogether. What are banks needed for? They're now just guarding numbers in a ledger where they used to be guarding actual stuff. What we really want to talk about is MOE management. When done properly, it can be done by a robot at zero cost.
How is it detected?" Economic bubbles are the most visible points of detecting excess credit.
That's like detecting the proper heat of the pudding by watching the pot boil over. You're behind the curve.
Looking at interest rates is another. Yes interest rate is a price. Prices are information. Did you know that?
Yes I do ... but you don't. INTEREST is a price paid by unreliable traders for their propensity to DEFAULT. It's not the price of money. Did you know that? Prices are information, but with zero INFLATION, as it is properly managed, money supply plays no role in prices. If it does, you know the MOE is being mismanged. The robot needs to have its program tweeked.
I suggest you read Mises instead of making ignorant criticisms about Mises when you obviously never read his work.
I have wasted an unbelievable amount of time reading Mises ... and trying to control my regurgitation as he talks about things that have absolutely nothing to do with the proper management of the MOE ... as you are here.
You ask questions that Mises already answered and act like they are unanswered, because of your own ignorance.
Wrong. Mises neither asked nor answered the questions I posed. Nor has any Mises monk who thinks gold backing is essential to proper management of an MOE. How can a gold backed system work when there is only one ounce of the stuff per trader on Earth ... less than $2,000 ... petty cash.
If you bash Mises, at least know what you are bashing instead of making a fool out of yourself. Austrians been on this planet longer than you studying economics.
It was over 400 years before the obvious that Copernicus realized was understood by others on the planet.
you fool....
Actually, I would call you a fool if I thought you weren't smart enough to get this. But I know you're smart enough to get this. So you have to have ulterior motives (perhaps you need to make your pile of gold worth more that it really is by giving it a false demand). Ulterior motives always end up lying with manipulation of the money supply to your benefit. You call it the business cycle. It's actually just a farming operation.
With proper MOE management, there is no business cycle. There are no bank runs. There is no house of cards economic scene. There are no bubbles. And it's not subject and open to manipulation. It's purely objective, transparent, responsive, and naturally stable. It's just a plain obvious negative feedback control system. It extends simple barter over time and space with zero distortion.
Get it ... we're quickly coming to the reset and you must have it by then. If you don't, you just walk us back into a swamp we have cycled through many times before.
This is all so self-serving. CNBC is covering itself with pieces like this in order to deflect condemnation for hyping the FED policies and for pronouncing how great things were -or were about to be- in our country.
You've got to love the sound-bite "Quantitative Pleasing". I think the @ss covering is well underway when even advisors are starting to distance themselves from the last decade of mal-decisions. The abyss isn't only looking back. It's licking its chops.
It was way too late a long time ago.
Now we just have to wait...and watch.
This is a naked attempt to save credibility/reputation and likely a job interview, fuck her she is another lying government piece of shit.
"Danielle DiMartino Booth speaking in a CNBC interview slams The Fed for "allowing the [market] tail to wag the [monetary policy] dog," warning that "The Fed's credibility itself is at stake.."
The FED's credibility is not at stake, as it doesn't have any.
Bernanke wrote in 1988, that QE does not work. He then proceded to do QE, when he was in charge. It hasn't worked, just like he said in 1988. There is no credibility in doing that which does not work.
Remember: They lie even when telling the truth.
There's a game afoot, and that game is "blame the FedRes, not Zion," when the collapse comes. Have a built in excuse to introduce a "new" digital-fiat backed by SDRs.
The coming rate hike will be the beginning of the end.
Liberty is a demand. Tyranny is submission..
"All retirees’ security is thus at risk when the massive overvaluation in fixed income and equity markets eventually rights itself."
Then add in everyone else who isn't a 1%er.
"The hope today is that the current era of easy monetary policy will have no deep economic ramifications. Such thinking, though, may prove to be naive."
Change may to will. The laws of math are an absolute.
Alan Greenspan noted in the 1960's, that the FED's 1920's easy money policy lead into the Great Depression. Greenspan doubled down on that policy, along with Bernanke. So guess what's coming?
No bailouts for big banks this time.
If all the retirement accounts go kaput, then we will take funds from non-essential government projects to replace their retirement money. PLUS drain the big banks, if there's anything left in their accounts...if there ever was.
No debts to foreign countries will be paid.
Take care of home first.
Some new system is coming, but not without some transitional uncertainty. I can feel it.
Too big to SAVE!
Zero percent interest rates are going to put the final nail in the economy. When capital is so cheap that after buying back your companies stock you realize that you can borrow still more money. Now you can drone, computerize, and robotize the final decent paying jobs left. The cost of buying the machines goes down and you get to rid yourself of those nasty humans that you have to constantly pay.
Forget the Mad Max world that everyone is so worried about. We are headed for terminator world.
People always complain about death camps, but this is exactly why we NEED death camps...
Trouble with death camps is the wrong people get sent to them.
"Where, one must ask, is our leaders’ wisdom when we need it most?"
What wisdom? Leaders aren't chosen for wisdom. Slick Madison Avenue packaging and marketing is what resides in Washington. Illusion, no substance.
As someone here once said -
"Never forget the Central Bankers of the world are masters at backing themselves into corners they themselves create".
She had better stay away from nail guns and rooftops...
My view is that she is actually telling the truth as she knows it.
Some action on bonds; many mistakes in comment section based on false conceptions.
A bond can be used to time shift existing money from the supply. Example: a bond finds already existing money, then at end of bond’s use period (the future) the bond holder reclaims his former money along with some interest. (Is there extra money in supply to pay the interest?…not always, so bond holders often make usurious demands.)
A bond can be monetized to create new credit. If the bond is hypothecated by a bank, it then goes on the bank’s books, and credit money is created as a counter. This is classic debt instrument money creation by hypothecation.
A number of stipulations can be placed on the bond at moment of hypothecation. It all depends on where the bond is lodged and what the rules are. In Europe, the bonds are located in private commercial banks, so the bond holders tend to want austerity to grab real resources in lieu of the former credit money. Former credit is often not available in supply due to various structural and rentier schemes. Magick swaps, usually benefiting creditor, are then required to cancel debts.
A 100 year bond placed in a National Bank, would be hypothecated to create new credit, and this credit would direct spend by government. This new credit would have a time value of 100 years, making it effectively debt fee floating money. At the end of 100 years, the bond can be collapsed into nothing by a giant eraser, if the politics of the day deem it so. Or, maybe it is just ignored and the former credit is allowed to stay in the supply as permacredit.
Direct spend of this 100 year credit, would then cycle in and out of private debts, drawing them down toward zero, unless people go on a another private bubble credit expansion. Generally, if enough savings are in supply, now formed by 100 year credit, then perhaps people will start loaning their short term savings to each other.
A 100 year bond placed in a Central banks, and central banks are now run at the behest of private bankers, would be monetized to make floating money for Government. This Central Banks could keep bond on its books, and thus it acts as an interest bearing asset. But, the interest it collects is either deferred, or the interest is paid back to Treasury. If paid back, then it is re-spent back into the money supply. Central banker can always remind government that government is in a debt position to private banking interests.
So, a bond can be redeemed by a national bank to remove money from supply and then not be respent – thus reducing money from supply; this action would dampen inflation.
IF a country is in debt deflation (like today) then a 100 year bond can be hypothecated into new credit via deficit spending. That spending will go on to pay off private debts and become savings. It could be directed at new infrastructure, so on its path it improves the commons, thus having a beneficial cycle.
If a company like petrobas creates a bond and puts it into capital markets, it is drawing existing money from the supply. It would have to be hypothecated by a bank to make new credit.
The FED uses repos and reverse repos to either suck or add credit into banker reserve loops, thus controlling interest rates.
Bonds are tricky in their action.
Of course, I would prefer a sovereign money system, and hence bonds would be disallowed from hypothecations. No more funny business is much preferable to our sneaky debt creation system. Sovereignmoney.eu
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Holy Shit! An Austrian Economist was at the FED? She quotes Von Mises. How the fuck did that happen? I thought these people were carefully vetted.
Amazing.
She's hot, I guess the Fed is the place to be to meet hot chics.