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Today Financial Journalism Suffered An Epic Failure

Tyler Durden's picture




 

Earlier today we reported about a very sad development for the freedom of speech, or at least the illusion thereof, when one of, if not the best, critical Federal Reserve reporter in the mainstream media, WSJ's Pedro da Costa founds he was no longer "invited" to the Fed's quarterly press conference. His transgression: daring to ask Yellen some very uncomfortable questions during the March 2015 press conference. To wit:

PEDRO DA COSTA. Pedro da Costa with Dow Jones Newswires. I guess I have two follow-ups, one with regard to Craig’s question. So, before the IG’s investigation, according to Republican Congressman Hensarling’s letter to your office, he says that, “It is my understanding that although the Federal Reserve’s General Counsel was initially involved in this investigation, the inquiry was dropped at the request of several members of the FOMC.” Now, that predates the IG. I want to know if you could tell us who are these members of the FOMC who struck down this investigation? And doesn’t not revealing these facts kind of go directly against the sort of transparency and accountability that you’re trying to bring to the central

 

CHAIR YELLEN. That is an allegation that I don’t believe has any basis in fact. I’m not going to go into the details, but I don’t know where that piece of information could possibly have come from.

As it turns out, the allegation did have "basis in fact" because two months after this exchange, we learned that not only was there a parallel investigation into the Fed's leaks in addition to the Hensarling subpoena, a criminal one by the Department of Justice at that, but that the Fed had indeed declined to comply with the subpoena as Pedro suggested.

The former Reuters reporter also had this testy exchange.

PEDRO DA COSTA. If I could follow up on his question. I think when you get asked about financial crimes and the public hears you talk about compliance, you get a sense that there’s not enough enforcement involved in these actions, and that it’s merely a case of kind of trying to achieve settlements after the fact. Is there a sense in the regulatory community that financial crimes need to be punished sort of more forcefully in order for them to be—for there to be an actual deterrent against unethical behavior?

 

CHAIR YELLEN. So, the—you’re talking about within banking organizations? So, the focus of regulators—the banking regulators—is safety and soundness, and what we want to see is changes made as rapidly as possible that will eliminate practices that are unsafe and unsound. We can’t—only the Justice Department can bring criminal action, and they have taken up cases where they think that that’s appropriate. In some situations, when we are able to identify individuals who were responsible for misdeeds, we can put in place prohibitions that bar them from participating in banking, and we have done so and will continue to do so.

At this point we will refrain from bringing up the constant narrative of Goldman's total and utter control of the NY Fed: between our disclosures from 5 years ago, to the recent release of the "Secret Goldman Sachs Tapes" thanks to Carmen Segarra, this is well known to all, however we will observe the irony that just yesterday a US Court found that the Fed's bailout of at least one financial entity (AIG) was illegal and a major overstep of not only the boundaries of the Fed, claiming that Section 13(3) did not permit the Fed to acquire a borrower's equity as consideration for a bailout loan (i.e., a "nationalization" by the Fed), but that the actions "in acquiring control of AIG constituted a taking without just compensation and an illegal exaction, both in violation of the Fifth Amendment to the U.S. Constitution."

Instead, we want to highlight something completely different: today's absolute failure at investigative reporting, and the worst example of journalistic capture by the Federal Reserve - worse even than what we reported in "On The New York Fed's Editorial Influence Over The WSJ" - that we have ever seen.

Unlike three months ago, it was not what was said, but rather what wasn't, which also happens to be the key issue eating away modern US society, far worse than whether the Fed is blowing the biggest asset bubble of all time (it is), if it is woefully behind the curve on raising rates (it is), or whether the US "recovery" is so strong a 0.25% hike from 0% after 7 years will crash the economy (not even worth commenting).

The issue is the criminality, competence and corruption of that most important of organizations in modern society, the US Federal Reserve.

This is what Pedro implored his "journalist" peers to ask when he found that he would not be allowed inside the holiest of money-printing holies:

Just to make their lives easier, Pedro provided all the documentary evidence they may not already have, in addition to the Congressional subpoena and the news of the DOJ criminal investigation.

Pedro repeated his request shortly before the FOMC conference:

And just in case anyone from his "intrepid, journalistic" peers missed it, he did it again:

To help then, Pedro even provided Twitter vue cards:

And with all that, one would imagine that someone, anyone, from the so-called "reporters" in Yellen's presence would have if not the guts, then at least the curiosity to at least ask what Pedro had already asked three months ago: after all, it is in the public record, and it has been corroborated by the recently announced criminal investigation, right? Wrong.

Some tried to "justify" this behavior:

But as Pedro promptly and accurately pointed out:

Yes, many would have done something if they knew no one else would. End result: nobody did anything.

And so, today we finally got a true glimpse of just what "access" financial journalism in the US has truly become: a petty clique in which everyone wants to be an "Andrew Ross Sorkin" access reporter, never daring to ask any important questions, always afraid to challenge either the subject or the status quo, and quite content with irrelevant fluff over actual matter.

For which we are grateful, because we now know why the Fed can and does keep getting away with its endless charade of repeating the same mistakes again and again. The reason is simple: the fourth estate no longer is a valid counterbalance to the stupidity of the self-anointed "infallible" central-planners of the western (and really with China now engaging in LTRO and Twist, eastern too) world whose only remaining craft is the last-ditch attempt to restore confidence in a world which, paradoxically, has seen ever greater central bank intervention with every passing year: a process which is so self-defeating we understand perfectly well why the career economists at the Fed are so blind to it.

Instead, said fourth estate is perfectly happy to produce worthless copy in some cubicle, happy to collect its pay, because it knows that just one complaint from the Fed would mean an immediate pink slip and a confrontation with the true state of the US economy, which contrary to Fed promises and erroneous mainstream media reporting, keep deteriorating further and further.

Thanks to the Fed.

Thank to Pedro's "fellow Fed reporters", none of whom had the balls to ask a simple question.

Then again in retrospect, we can understand why. In a world in which the Fed perceives itself as omnipotent, and where anyone even daring to question its motives, its methods or its track record, is a threat to be eradicated or at least barred from all future opportunities for further humiliation and disclosure that the emperor has indeed been naked from day one, at even such token events as a press conference where questioners are generously afforded 60 seconds in which to expose said emperor.

This is what Pedro found out the hard way today, a discovery which also allowed the rest of us to finally comprehend the farcial, hollow facade this country has passing off as its crack "financial journalists" asking "tough questions" all of whom ended up being nothing more than "access scribes", terrified to open their mouths and lose their access, an outcome which incidentally just might force them to do some real reporting for once, instead of sending rhetorical letters to the middle class asking why it keeps being "stingy" instead of spending its hard-earned money, and making the beloved Fed's life so difficult...

 

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Wed, 06/17/2015 - 21:12 | 6207646 Bunga Bunga
Bunga Bunga's picture

Since 1913, no different.

Wed, 06/17/2015 - 21:46 | 6207752 NoDebt
NoDebt's picture

Reporters suck the establishment teat.  Journalists ask the real questions.

Frankly, I'm surprised there was even one journalist left that needed to to be suffocated and cut off from all future communications.  RIP Journalism.

 

Wed, 06/17/2015 - 21:48 | 6207774 SMG
SMG's picture

Which is why, no matter what it takes, Zero Hedge must go on.

Wed, 06/17/2015 - 21:53 | 6207782 johngaltfla
johngaltfla's picture

Tyler made a funny:

 

"Financial Journalsim"

BWAHHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA

Is that like "military intelligence", "government helper", or "Conservative Republican"?

That's just too funny.

Wed, 06/17/2015 - 22:30 | 6207877 Squid-puppets a...
Squid-puppets a-go-go's picture

yellen should be made to do the walk of shame and penance like Cersei Lannister.

Junk me if you can stop vomiting for long enough

Wed, 06/17/2015 - 23:25 | 6207978 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Pedro da Costa carries his balls in a wheelbarrow.

They'll probably sacrifice him, literally or figuratively.  Probably put Brian Williams in his job.

Thu, 06/18/2015 - 00:27 | 6208140 old naughty
old naughty's picture

but everything the Fed has done, is epic, no?

Thu, 06/18/2015 - 00:29 | 6208146 InjectTheVenom
InjectTheVenom's picture

leaked surveillance video from Pedro's local Home Depot store apparently show him shopping recently for a nail gun .... 

Thu, 06/18/2015 - 01:31 | 6208230 Wait What
Wait What's picture

this is why they hate you ZH... you tell the brutal truths.

his name is Pedro da Costa

his name is Pedro da Costa

his name is Pedro da Costa

Thu, 06/18/2015 - 04:01 | 6208378 Squid-puppets a...
Squid-puppets a-go-go's picture

the 4th column has transformed into the 5th.

The 6th column will be my hard-on when it all collapses

Thu, 06/18/2015 - 04:15 | 6208390 Farqued Up
Farqued Up's picture

You left out..........

Ponzi Tapering, which has to be the ultimate oxymoron.

Wed, 06/17/2015 - 22:00 | 6207806 NoPension
NoPension's picture

Binyamin Appelbaum. GTFOOH!

Thu, 06/18/2015 - 01:39 | 6208238 EhKnowKneeMass
EhKnowKneeMass's picture

"The absence of a leak question is a coordination failure. I suspect many of us would have asked if we knew no one else would."--Biryani Applebees

Well, Biryani Applebees is correct, and we all need to commend him for his astute observation. In psychology, this is also known as "The Bystander Apathy" effect--http://www.psychwiki.com/wiki/The_Bystander_Apathy_Effect. He was just waiting for someone else to ask the question and, in the meantime, he was busy tribbing with queen Saruman. Even if they were coordinating, none of the queen's eunuchs would have asked the question because of the "I don't want to be ostracized from the fluffing club" effect. Finally, if someone did have the cojones to ask the question, the queen mother would have kicked his ass and the Applebees of the world would have done nothing because they are terrified of the "Truffle butter" effect.

Now, we all need to settle down and nominate Applebees for the Novel Price from journaljizm sponsored by Rachel Haloperidol because, after all, that's their source of sustenance--Fed's jizm.

Thu, 06/18/2015 - 06:48 | 6208526 RaceToTheBottom
RaceToTheBottom's picture

No, he just did not want to admit he has no balls.

Thu, 06/18/2015 - 04:04 | 6208382 HowdyDoody
HowdyDoody's picture

What does this middle inital 'C' stand for? Answers in a snarky comment to:

http://www.zerohedge.com/news/2015-06-17/today-financial-journalism-suff...

Thu, 06/18/2015 - 08:16 | 6208766 fromthinair
fromthinair's picture

Yes! zerohedge does a good job than most journalists which is why I read this blog.

zerohedge, please restore my old  account: username : "thinair"; you shouldn't have blocked it.

The only question I want to know is if you are not working on the following problem then which problem are you working on. I have asked this question to the Prime Minister of India too. waiting for an answer.

 

There are ten people and resources to feed only nine. What happens to the tenth and why?

 

O' Humanity,  why are you runing and for what?

http://just-a-thought-from-thinair.blogspot.com/

Wed, 06/17/2015 - 23:20 | 6207969 post turtle saver
post turtle saver's picture

"many would have done something if they knew no one else would."

the refuge excuse of fucking cowards everywhere...

Thu, 06/18/2015 - 03:42 | 6208359 ZH Snob
ZH Snob's picture

this is why publications like the WSJ are no longer relevant, why print media is the dinosaur it is.  and putting it online is not the answer.  they were co-opted a long time ago. 

 

Thu, 06/18/2015 - 08:33 | 6208838 zjxn06
zjxn06's picture

Now THAT (ZH) article is true investigative journalism.:

Wed, 06/17/2015 - 21:19 | 6207649 AC_Doctor
AC_Doctor's picture

Because they are all in the little bunch of kuntez club...

Wed, 06/17/2015 - 21:13 | 6207652 buzzsaw99
buzzsaw99's picture

Vote For Pedro [/Napoleon Dynamite]

Thu, 06/18/2015 - 00:10 | 6208095 Pool Shark
Pool Shark's picture

 

 

Only if he has a couple of bat-wielding buddies who will whack Yellen like that piñata from the movie...

Wed, 06/17/2015 - 21:14 | 6207655 ThroxxOfVron
ThroxxOfVron's picture

Pedro was hoping for the likes of Binyamin Appelbaum to confront Yellen?

 

LOL

Wed, 06/17/2015 - 21:33 | 6207723 Miss Expectations
Miss Expectations's picture

No one was expecting the Kitty Genovese excuse.  Pedro was stabbed to death.

Wed, 06/17/2015 - 22:12 | 6207834 Ward cleaver
Ward cleaver's picture

The tribe not on the warpath. Too bad there isn't a "Nixon" to out. They will all be covering the GW Bridge lane closure though.

Wed, 06/17/2015 - 21:17 | 6207659 anachronism
anachronism's picture

Are ther more than 1% of the population of the United States that know about this and care about it at the same time?

Wed, 06/17/2015 - 21:45 | 6207761 suteibu
suteibu's picture

I don't know why you were down-voted.  Your observation is obvious to many of us. 

The really sad part is that a large percentage of that 1% know about it, care about it, and laugh their asses off that they are getting away with it.

Wed, 06/17/2015 - 21:51 | 6207779 NoDebt
NoDebt's picture

This should be no surprise.  We've dumbed-down as many as possible.  The few that are left that can apply critical thinking are given the message:  We all know it's a lie.  If you know what's good for you you'll go along with the lie or you'll be shut out, shut up and shut down.  

Reporters are a dime a fucking dozen.  Don't like the questions they ask?  Throw their worthless asses out of the press conference and use somebody else.  For damned sure their media outlet won't complain because they're on the payroll, too.

Wed, 06/17/2015 - 23:52 | 6208051 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

+15 Very well-said.

Thu, 06/18/2015 - 00:19 | 6208122 SillySalesmanQu...
SillySalesmanQuestion's picture

Fifty cent whores with five hundred dollar hairdos... The presstitutes of the fourth estate.

Wed, 06/17/2015 - 23:31 | 6207997 Thorny Xi
Thorny Xi's picture

They will learn when it is too late.

Wed, 06/17/2015 - 21:18 | 6207662 Row Well Number 41
Row Well Number 41's picture

Journalism is printing what someone else does not want printed: everything else is public relations.
    -- George Orwell

#41

Wed, 06/17/2015 - 21:22 | 6207679 suteibu
suteibu's picture

"Yes, many would have done something if they knew no one else would. End result: nobody did anything."

A microcosm of the American public in the face of rising fascism.

Wed, 06/17/2015 - 21:22 | 6207680 actionjacksonbrownie
actionjacksonbrownie's picture

Journalist = Spineless Bootlicker

Wed, 06/17/2015 - 21:51 | 6207777 MonsterBox
MonsterBox's picture

Lickspittle 

Wed, 06/17/2015 - 21:23 | 6207681 madbraz
madbraz's picture

They are all corrupt and should all be wearing ball and chain. 

 

 

Thu, 06/18/2015 - 00:14 | 6208106 RafterManFMJ
RafterManFMJ's picture

...in 50 fathoms of water.

Thu, 06/18/2015 - 01:08 | 6208196 Kirk2NCC1701
Kirk2NCC1701's picture

Seems excessive.  I'd let them appreciate the numerology of being submerged at 33 fathoms. 

;-)

Wed, 06/17/2015 - 21:23 | 6207686 buzzsaw99
buzzsaw99's picture

Why did you meet with private Medley analyst despite rules you helped draft discouraging such meetings?

zirp blowjobs, she uses both nirples, da backroom boyz love it.

Wed, 06/17/2015 - 21:25 | 6207690 suteibu
suteibu's picture

There is no innocent answer to that question. 

Wed, 06/17/2015 - 21:29 | 6207706 JamaicaJim
JamaicaJim's picture

Pedro is a fish WAY the fuck out of water.....he's amongst cunts, liars, shills and douchebags...

Wed, 06/17/2015 - 21:30 | 6207708 Seasmoke
Seasmoke's picture

Without a doubt I am convinced it's why Bernanke is no longer there and Yellen is. They somehow think the woman will not be torn to shreds for what they have done....

Thu, 06/18/2015 - 00:35 | 6208159 cyberfossil
cyberfossil's picture

Great point, Seasmoke. Like all of the managed assets, they have to create a less obvious or softer appearance now to give false hope for the masses; or at least the politicians can say they "tried" to get change. I.E. Obummer--same banking donors, masters, advisors as the previous administrations.  Of course, there is no actual change n the shadow government--- just perceived possible change by the voters and/ or superficially involved public to create a better smokescreen while they up the ante on the American people during the process of asset stripping. 

Meanwhile, they finance and profit from the use of our military industrial complex to accomplish their global domination and endless worldwide in-fighting.  Like the magician, they don't want anyone to see what their actually doing so they create other situations to keep our eye off the magician's sleight of hand.

Thu, 06/18/2015 - 02:40 | 6208305 conscious being
conscious being's picture

Not always the case Seasmoke. Marie Thérèse, princesse de Lamballe was torn to shreds.

Thu, 06/18/2015 - 04:47 | 6208423 Farqued Up
Farqued Up's picture

Worthless Cetacian Snowdyke. An ugly, mega-obese turd that has a blowhole for breathing, genetic nasal freak show, total WOS (waste of skin), a POS, an IQ between that of an oyster and a barnacle.   

Thu, 06/18/2015 - 07:46 | 6208628 Kickaha
Kickaha's picture

Another reason is that Bernanke could not pull off these press conferences.  Whenever he answered a question, he exhibited about 20 of the tells that showed he knew he was lying.  It was so obvious that it was a real jolt to anyone trained in the assessment of credibility.  It was obvious that he did not believe in his heart anything he had been instructed to say as part of these scripted tragi-comedies.  His lack of belief never stopped him from performing for his masters.  Fuck him, even if he was ashamed to serve as the head of the Fed.  Hell, fuck Bernanke anyways, because he was ashamed to do what he did, but did it anyways for the money.  Either way, he had to be replaced with somebody who was a better liar with a better poker face.

And fuck him again for writing books and giving lectures about stuff he doesn't really believe, once again for the money.

Wed, 06/17/2015 - 21:31 | 6207713 ebworthen
ebworthen's picture

Was Jon Hilsenrath at the press conference under the table giving Yellen cunnilingus?

Wed, 06/17/2015 - 21:39 | 6207739 RichardENixon
RichardENixon's picture

Don't you mean fellatio?

Wed, 06/17/2015 - 21:41 | 6207747 suteibu
suteibu's picture

DAMN!!?  Some of us haven't eaten yet.

Wed, 06/17/2015 - 22:32 | 6207879 ebworthen
ebworthen's picture

I stand corrected. 

If she is a hermaphrodite homunculus Hlsenrath will be a busy boy.

Where is the Journalism?  Are they all quaking in fear that they won't get the 1st question like that pussy Steve LIESman?

Wed, 06/17/2015 - 23:12 | 6207960 Never One Roach
Never One Roach's picture

Depends how she identifies herself.

Wed, 06/17/2015 - 23:40 | 6208016 Groundhog Day
Groundhog Day's picture

Hilsenroth, liesman, applebaum, don't ask yellen the tough questions and da costa does. Does anyone else see a pattern

Wed, 06/17/2015 - 21:46 | 6207767 Thebandplayson
Thebandplayson's picture

That's idiotic ^ Hilsenrath was giving Yellen a blow job..........

Wed, 06/17/2015 - 21:31 | 6207715 franciscopendergrass
franciscopendergrass's picture

Surrounding oneself with placated journalists = the Emperor's New Clothes.   When will the Fed realize when it has no clothes?  When the stock markets collapses?  When there is a dollar crisis?

Wed, 06/17/2015 - 21:34 | 6207724 OC Sure
OC Sure's picture

...it is not the Fed that needs to realize it. 

Wed, 06/17/2015 - 21:32 | 6207718 OC Sure
OC Sure's picture

Ticonderoga, meet Eccles.

Wed, 06/17/2015 - 21:34 | 6207725 JR
JR's picture

“Terrified to lose access”? Unfortunately, it’s much more than that. The reporters who attend the Fed meetings work for the same boss as do puppets such as Janet Yellen. For it is the media monopoly, the international banker money trust that not only operates the Fed, it controls the publishers and the owners of the media outlets.

If this were not so, the entire thrust of the WSJ should now be brought against the Federal Reserve, publishing all of the secret information that I know they have, once and for all throwing down the gauntlet as true journalism against a tyrant.

The reporters who attended the session without Pedro are not just afraid they’ll lose access if they ask the wrong questions, they’re afraid they’ll lose their jobs to publishers in concert with the owners of the Federal Reserve.

If the publishers of the WSJ do not now make a stand, they prove the point that America’s media monopoly has now become seamless in its duplicity with only revelations to come by way of the Internet, i.e., Zero Hedge.

It turns out financial journalism still has a voice, and that voice is Zero Hedge.

Wed, 06/17/2015 - 21:54 | 6207788 Bay of Pigs
Bay of Pigs's picture

JR, the WSJ isn't going to back this guy at all. If anything, he will probably get fired.

Wed, 06/17/2015 - 22:19 | 6207857 JR
JR's picture

The WSJ and major US media, it’s time to admit, is under control of the banking cartel.

In other words, does the Fed really control American media?  Absolutely, and much, much more and G. Edward Griffin explains. The control comes from massive mountains of fiat money flowing into the hands of the owners of the Federal Reserve.

He begins by identifying usury as any interest on any loan of fiat money (money made out of nothing).  

An example Griffin gives is of unearned interest collected on a piece of real estate by the banking cartel, interest he calls “just a grain of sand in the Sahara”:

“You have to multiply that by all the homes in America, by all of these hotels in America, all the high-rise buildings, all the factories, all the airplanes, automobiles, farm equipment, schools, everything, all the physical assets of America. You apply this same ratio and can you see it in your mind? We're talking about a river of unearned wealth that is so wide you can't even think of crossing it, flowing perpetually into the banking cartel. A dead shot across the productive element of society. Money being taken from people who are working hard providing the material and the labor. They don't even know that this is being taken from them and it's in this huge river of wealth flowing into the banking cartel. It's a staggering thought.” …

Griffin asks and answers, Where is the river of money going?

“They are using this river of wealth to acquire power over you and me and our children.

They are spending it to acquire control over the power centers of society. The power centers are those groups and institutions through which individuals live and act and rely on for their information. They are literally buying up the world but not the real estate and the hardware, they're buying control over the organizations, the groups and institutions that control people. In other words, to be specific, they are buying control over politicians, political parties, television networks, cable networks, newspapers, magazines, publishing houses, wire services, motion picture studios, universities, labor unions, church organizations, trade associations, tax-exempt foundations, multi-national corporations, boy scouts, girl scouts, you name it. Make your own list of organizations and you will find that this is where those people have been for many decades spending this river of wealth to acquire operational control particularly over those institutions and individuals, those organizations that represent opposition to themselves.”

And that’s what Pedro is up against.

Thu, 06/18/2015 - 00:33 | 6208155 SillySalesmanQu...
SillySalesmanQuestion's picture

+1. Thanks for the exemplary rant JR.

Thu, 06/18/2015 - 02:45 | 6208309 conscious being
conscious being's picture

That's racist JR. --------------------------------/sarc

Thu, 06/18/2015 - 06:15 | 6208483 striped-pad
striped-pad's picture

JR, I'm an admirer of G. Edward Griffin for what I learned from him. He was one of the first people I came across who helped me to understand the banking system, but also to open my eyes to the murky things going on out of sight. I also found it very helpful when he explained that all political philosophies fall into one of two fundamental categories: individualist and collectivist.

Having said that, I think he makes a mistake with the part that you quote (I believe it's from The Creature from Jekyll Island). Here's why:

When a bank makes a loan, creating money "out of thin air", it is actually insuring the value of the money. (Remember that a bank deposit is a promise by the bank to pay the depositor, i.e. a liability of the bank). When the borrower buys something with it, the seller wants to be able to buy something of equal value with it later. The reason why the money is valuable is that the borrower must sell something of value in order to obtain the money to repay the loan (at which point the money is destroyed again). And if the borrower fails to repay, the bank owners themselves must pay off the loan on the borrower's behalf. (They do this by losing some of their equity in the bank). The interest has to pay for detaults, costs and profits.

I go into a little more detail (with pics!) here.

I'm not at all saying that everything is fine - I believe, like many, that without the centrally-controlled prices in "markets", many banks would be shown to be insolvent because they have insured far more money than they can cover the defaults on - I think they should have been liquidated in 2008. But I'd argue that the system is not fundamentally wrong, and looking for solutions from changing the banking or monetary system with the same collectivists in charge is just going to lead to the people being robbed in a new way. I believe we'll only get a solution when people insist on banks not being treated as a special case, where governments allow banks to be too big to fail.

I would say that banks have a much greater justification for charging interest on unsecured loans, which have to be underwritten by the banks, than they do on secured loans for which a simple fee (and perhaps a refundable deposit to pay for the administrative costs if the loan needs to be recovered) is perhaps more appropriate.

Thu, 06/18/2015 - 07:05 | 6208553 overmedicatedun...
overmedicatedundersexed's picture

striped, nice post..you build your case on a falsehood. fiat money printed at the whim of banksters- access to FED window and such, you know how the mega banks were protected in 08 by congress and the FED.

crime and corruption in .gov underlies it all..then you try putting lip stick on it when the very foundation is a lie.

there is no debt in a fiat system is the problem along with humans who are corrupt running it.

Thu, 06/18/2015 - 08:30 | 6208828 striped-pad
striped-pad's picture

It's exactly because the banks were protected by Congress and the Fed that the solution lies in stopping Congress and the Fed protecting banks. It doesn't lie in creating a new monetary and banking system with the same people in charge.

By blaming the system of credit money, it distracts from the crimes by people. A credit money system with plenty of real competition can work quite well.

there is no debt in a fiat system is the problem along with humans who are corrupt running it.

By fiat, I assume you mean an unbacked paper currency. (Wikipedia says a promise-backed paper currency can also be called fiat). I agree that the lack of underlying value is a fatal problem with a fiat currency: the issuer gets something for nothing, and from then on you're playing musical chairs, hoping not to get left with the worthless money in a confidence crisis. In theory, a FRN does have backing - the government promises to take money from other people in taxes (and give it to the Fed), leaving the FRN holder able to buy whatever the taxpayer would have bought. But that doesn't work too well when the holder is the one who is taxed.

It would be much better if the Fed's assets were loans secured with real wealth which exists today, rather than just promises by the government to take wealth from the people tomorrow. It would make it harder to blow bubbles.

But I still say it's important not to get distracted by attacking the system. The real problem is coercion by those with power, not the system which they happen to be exploiting at the moment.

Thu, 06/18/2015 - 09:44 | 6209174 August
August's picture

Since we won't be getting more ethical bankers (i.e. not subject to the seductions of wealth and power), we'll just have to hope that elected officials who crack the whip of law will be uncorruptable by wealth and power.

Our chances approximate zero.  Next turn of the wheel, please.

Thu, 06/18/2015 - 10:55 | 6209434 striped-pad
striped-pad's picture

Exactly. So given that people are corrupted by wealth and power (which will exist in any monetary and banking system), the solution lies elsewhere than changing the system. It involves holding people to account. That's all I've been saying here.

Thu, 06/18/2015 - 00:17 | 6208116 RafterManFMJ
RafterManFMJ's picture

Man, I wish I were a financial "reporter!"

75K a year from the WSJ
20K and party invitations from Wall Street banks
20K per year from the CIA (and they even write my stories for me!)

Living.the.life!

Thu, 06/18/2015 - 03:37 | 6208363 Dave Thomas
Dave Thomas's picture

You'd look just like that little bald guy Benny Hill slapped on the head, we'd all laugh.

Wed, 06/17/2015 - 21:35 | 6207727 franciscopendergrass
franciscopendergrass's picture

This kind of shit happens all the time.  It is disgusting.   Control the speech and narrative = control the publics reaction. http://www.yuricareport.com/Media/BattleForControlOfThePress.html

Wed, 06/17/2015 - 21:42 | 6207749 NoWayJose
NoWayJose's picture

Yellen is just followed the Hillary playbook to duck and avoid all damaging questions.

Wed, 06/17/2015 - 21:44 | 6207754 luna_man
luna_man's picture

 

 

But the PRESSURE is mounting on these CRIMINALS, regardless of what they are saying!

 

they won't die too soon...bet on it

 

 

Wed, 06/17/2015 - 21:47 | 6207769 WTFUD
WTFUD's picture

It's difficult to swallow that the FEDRES is at the ROOT of ALL the Corruption, directing the Traffic ( Goldman, JPM , BofAMl, . . . other Central Western Banks . . . Warren Buffett, Blackstone . . . a few others ), behind the fraud in ALL of the Exchanges , Libor etc etc etc, controlling the Government Watch-Hogs SEC, allowing ALL of the above to KEEP THE PONZI ALIVE, and yet the Dept. of INjustice sits Idle open mouth like it's all a Reality TV Show.

Wed, 06/17/2015 - 23:44 | 6208025 TheReplacement
TheReplacement's picture

The DOJ could only stop what is happening.

The FR is what makes what is happening happen.

Both vile but not the same.

Wed, 06/17/2015 - 21:49 | 6207775 nmewn
nmewn's picture

Ahem...

"The former Reuters reporter also had this testy exchange."

...but the show must go on!

Wed, 06/17/2015 - 21:53 | 6207784 lester1
lester1's picture

Janet Yellen was responsible for the leak. Throw her ass in jail !!

Wed, 06/17/2015 - 21:54 | 6207785 dust to dust
dust to dust's picture

 Pussies (female) and soft balls (males). Maybe a transgender could ask a pertinent question. After all we are all inclusive here in the good ole US of A. 

Wed, 06/17/2015 - 21:59 | 6207799 booboo
booboo's picture

Most journalist live from hand to mouth and are easily purchased, access is everything and once they are fingered "marked and avoid" it is pretty much a death sentence. Pedro will be made an example of and the best he hope for at this time in his life is for someone to start GoFundMe account for the poor bastard. We crossed the Rubicon a ways back and it is every man for himself in a lawless chicken shit kill or be killed society custom built by Marxist. People need to realize that every article we read like this is an exercise in sadomasochism, rubber necking at a horrific 10 car pile up. Stop staring at it and look for an escape hatch before it's too late.

 

Wed, 06/17/2015 - 22:10 | 6207836 VWAndy
VWAndy's picture

No comment.

Wed, 06/17/2015 - 22:16 | 6207850 jldpc
jldpc's picture

Now you know the offt-repeated historical needs of humankind for the motivation for Revolution. What drove men to revolt, go crazy, kill others, die for freedom, dignity, and the right to be left alone?

Yellen is the epitome of the "useful (t)fool," the ugly toad, the sorry-ass middle class white woman political hack, bought and paid for go alonger, pretending to be intelligent (education is not = to smarts), put into place to placate the many, while being laughed at for being as gullible as a maggot by the hidden controllers (at least to most people, not ZHers)- she is almost as unattractive (dirt ugly) as GS's leader, and has about as much foresight, insight, and understanding, not to mention a grasp of economic predictability skills, as a dog turd baking in the summer sun giving off noxious odors. The words out of her mouth declare "I am a fool or worse."

Thu, 06/18/2015 - 00:38 | 6208165 WTFUD
WTFUD's picture

Very Succinct. Insightful.

Boston Herold

Thu, 06/18/2015 - 08:13 | 6208749 hootowl
hootowl's picture

,,,,You forgot distasteful and coarse.

Wed, 06/17/2015 - 22:48 | 6207886 Chalan
Chalan's picture

Gold or silver as in loot or bullets, in some countries a select few have to make that choice.

This country is the same, and the wrong choice ends your carrier.

Turbo Timmy was feared when he was the in office, with that simple threat.

 

Thu, 06/18/2015 - 02:40 | 6207887 Aquarius
Aquarius's picture

"The issue is the criminality, competence and corruption of that most important of organizations in modern society, the US Federal Reserve."

 

Just as a matter of interest, there can be no doubt as to the intergity (lack thereof) of the US "leadership" or for that matter, any so-called elite group that portray themselves as "leadership"

Western "leadership" have involved themselves for well in excess of 4 decades in habitual lying as the foundation of their occupational habit of expression and explanation. This has manifested itself as the operational paradigm of Government, where this belief system, corrupted beyond reality, has in fact, become the reality. 

The subjective objectivity of all this activity of so-called governence, has become a delusional pretense to protect the "status quo" at all costs; it's merely entertainment and is leveraged by the entertainment idustry and package as 'true life' adventurial fiction the MSM.

Nobody really cares, so the financial and banking sectors just rip the unwashed off for all they can, paying the politicians who are all for sale in rehypothecated bundles, to protect them and have wannabee meal-ticket economists announcing Nobel Prize utterances at their beckon call; Hello - the system is already like this; is it not obvious? Or, is it that everybody lies and the truth is no longer visible; that is to say what is not, is and what is, is not - albeit with a twist or two..

To maintain, or even try to maintain the "status quo" is the greatest mistake, as well as being the oldest mistake, that man can make and continues to make.

One can not jam a round peg into a spinning square hole without an expectation of some destruction. Life is a dynamic.

As a consequence of the futility of the "lie" paradigm, all becomes corrupt and the more corrupt it becomes the greater the "lie".

Until it ends... badly

http://verbewarp.blogspot.com.au/2015/03/fiat-currency-and-human-behavio...

Ho hum

Thu, 06/18/2015 - 03:44 | 6208342 w a l k - a w a y
w a l k - a w a y's picture

 "Yes, many would have done something if they knew no one else would.
   End result: nobody did anything."

 

A Focus on Symptoms, Never the Root Cause

 

"Does a child not have as much right to privacy and freedom from parental conditioning as the parents expect for themselves? It is one of the most fundamental problems facing humanity today. The future depends on how we solve it." - lede, Chapter 3 | Conditioning, from the book of children

 

Although Osho came close to the truth, notice he did not define the root cause.

 

Unconscious Procreation is the fundamental problem facing humanity today. The future depends on how we solve it.  [FIFY]

 

</rant off>

 

Thu, 06/18/2015 - 07:41 | 6208613 shovelhead
shovelhead's picture

Better to nail em before they go completely out.

Wed, 06/17/2015 - 23:00 | 6207932 TheAntiProgressive
TheAntiProgressive's picture

This will al take a reset or a revolution.  There is no other "fast" way. Patience and historic belief that "justice" might rear its' head, just doesn't seem to ever work out.

Wed, 06/17/2015 - 23:03 | 6207938 kchrisc
kchrisc's picture

At some point propaganda becomes complicity, and culpability, in their crimes.

Liberty is a demand. Tyranny is submission.

Thu, 06/18/2015 - 00:26 | 6208138 BustainMovealota
BustainMovealota's picture

Nice quote

Wed, 06/17/2015 - 23:07 | 6207946 pot_and_kettle
pot_and_kettle's picture

 

 

 

" Binyamin Applebaum ".

 

lol, ok.

Wed, 06/17/2015 - 23:42 | 6208021 QE2XS
QE2XS's picture

How about this idea.   The next Fed Press Conference, ALL the reporters should get up and leave as soon as Yellen opens the floor for questions.   You think they have the guts to do it?

Thu, 06/18/2015 - 00:57 | 6208185 jldpc
jldpc's picture

Best idea today.Fat chance!

Wed, 06/17/2015 - 23:45 | 6208026 GRDguy
GRDguy's picture

Never forget what was done to Gary Webb for just telling the truth! It is the sword that hangs above the head of every decent investigative journalist. See Wikipedia.

Thu, 06/18/2015 - 00:00 | 6208065 Ms No
Ms No's picture

I believe there was one traditional style journalist left a few years ago, his car exploded before it hit a tree.  There were a couple plane crashes involving journalists in the last decade as well.  Most of them were in their 30's, idealistic and still had no damn clue what they were dealing with.

Thu, 06/18/2015 - 00:04 | 6208080 Lolitsa
Lolitsa's picture

Hopefully Pedro doesn't drive a new Mercedes. Hastings learned the hard way that he should have been driving a '90s era Benz that is as analog as the day is long.

Thu, 06/18/2015 - 00:08 | 6208090 biggestbrother
biggestbrother's picture

She is too old for the job. Peter principle. By the time they are chairperson they are demented. 

 

This is demented. There are real estate bubbles for the 10%, economy no where for 90%, stocks in bubble, Bond market functionally destroyed, no ammo for next crisis.  AND THEY WONT EVEN LIFT 0.25

 

I dont care if inflation is not optimal. It pales into insignificance compared with instability they have wrought

Thu, 06/18/2015 - 00:09 | 6208094 biggestbrother
biggestbrother's picture

She is too old for the job. Peter principle. By the time they are chairperson they are demented. 

 

This is demented. There are real estate bubbles for the 10%, economy no where for 90%, stocks in bubble, Bond market functionally destroyed, no ammo for next crisis.  AND THEY WONT EVEN LIFT 0.25

 

I dont care if inflation is not optimal. It pales into insignificance compared with instability they have wrought

Thu, 06/18/2015 - 00:11 | 6208102 Phillyguy
Phillyguy's picture

So much for the 4th estate. Mainstream media is controlled by 6 large corporations- GE, News Corp, Disney, Viacom, Time Warner and CBS (Link: www.businessinsider.com/these-6-corporations-control-90-of-the-media-in-america-2012-6). Like all corporations, their goal is to maximize profits and tailoring the news “narrative” to accomplish this objective. Naturally, they do not want to “rock the [Fed’s] boat”. Pedro da Costa got a quick lesson in what happens when you challenge the financial status quo.

Thu, 06/18/2015 - 04:39 | 6208413 dreadnaught
dreadnaught's picture

and all are run by Jews

Thu, 06/18/2015 - 08:09 | 6208723 hootowl
hootowl's picture

They are faux-Jews, of Khazarian/Babylonian derivation.

Thu, 06/18/2015 - 00:28 | 6208141 BoPeople
BoPeople's picture

I wonder whether the issue is that journalists are not human or are no longer human ... or that they are so afraid that they do not care about the harm they do to others.

Thu, 06/18/2015 - 02:55 | 6208320 conscious being
conscious being's picture

Check out the NYT Moscow reporter, Walter Duranti, during the Holmodor, the Soviet instigated famine in the Ukraine in the '30s, that falsified reports of famine that killed millions, to support, in support of the Soviet government.

Thu, 06/18/2015 - 00:43 | 6208175 q99x2
q99x2's picture

Lock it up. Don't let that monster slither away.

Thu, 06/18/2015 - 00:57 | 6208186 Tic tock
Tic tock's picture

Really ceases to be relevant - de-dollarization - FED is yesterday's CB - US is flat out broken

Thu, 06/18/2015 - 01:31 | 6208228 scatha
scatha's picture

LAWLESSNESS IN ALL LEVELS OF GOVERNMENT AND SECURITY, MILITARY AGENCIES AND ELITE INSTITUTIONS AS A MATTER OF POLICY!!!!!!!!!!!!!!!!!!!!.

I found some interesting unasked and unanswered Q & A regarding FED criminal conduct especially after 2008 and genocidal economic polices below:

https://contrarianopinion.wordpress.com/2015/01/28/liquidity-of-blood-sw...

and 

https://contrarianopinion.wordpress.com/2015/01/28/slaves-of-wage/

Thu, 06/18/2015 - 01:44 | 6208235 SgtShaftoe
SgtShaftoe's picture

Damn it! If I hadn't lost what little gold I had in an unfortunate yodeling accident I could be richer when this finally breaks. I guess I still have a little time though.

The fed is full of idiots. I've been there done that more than once. I actually talked to fed people during the 08 crisis and they were completely (handslap to forhead) clueless Most fed people genuinely think they're "helping" the economy and the US. I heard that exact line from a fed employee in 12 despite my stuttering and spewing of my tea. God help us. We really are going to be completely and truly fucked.

Protect yourselves people while you still have time, and don't go yodeling in the mountains with your stack of so much as potato chips. That's dangerous. Take it from me.

Thu, 06/18/2015 - 02:04 | 6208265 mortiis
mortiis's picture

Can we get a list of the reporters that attended?  It'd be nice to ask each one why they didn't pose any questions.

Thu, 06/18/2015 - 02:49 | 6208315 Newspeaktogo
Newspeaktogo's picture

I'd like to know why we would expect any honesty from this den of theives??

 

Thu, 06/18/2015 - 03:08 | 6208335 hedgiex
hedgiex's picture

Why the angst over talk shows ? Financial Journalist (many) have chosen to be pimps and whores in order not to starve. OK if the preys do. BTW, many preys enjoy the traps and that is one justification to delude onself.

Thu, 06/18/2015 - 03:24 | 6208353 Jack Daniels Esq
Jack Daniels Esq's picture

USG set up Obama to fuck America - the rest is history, hang her

Thu, 06/18/2015 - 03:28 | 6208358 NuYawkFrankie
NuYawkFrankie's picture

For the unvarnished truth in reporting the financial & political,

I always go to The Lobotomist - oops Economist!

Thu, 06/18/2015 - 04:14 | 6208388 holgerdanske
holgerdanske's picture

This is not just today, and it is certainly not just in financial journalism.

It is every single day, and in every sphere of life. Most people haven't got the backbone to stand up!

 

If they had, these parasites and the ruling class would not be!

Give me honest men, and I will change the world.

Thu, 06/18/2015 - 04:29 | 6208389 Kprime
Kprime's picture

what do you do when your country is hyper inflating and no one watches the news?

A group of female television presenters have stripped naked to film a message of support for the Venezuelan national team at the Copa America.

http://www.independent.co.uk/sport/football/international/venezuelan-tv-...

Go watch the video midway down the page, it's too cute.

Desnudando la Noticia presenters say their style is 'empowering women'

I may have move to Venezuela.

Thu, 06/18/2015 - 04:22 | 6208399 WTFUD
WTFUD's picture

God forbid anyone asking Drughi a difficult question; these sociopath's ( hillary , barry included ) feel a sense of entitlement that they are beyond reproach. ALL feeding from the trough you'd think it was a part of the job description to clarify policy and field reasonable concerns/questions.

This is a BIG DEAL because if you can't be held accountable then you're unfit for purpose.

Thu, 06/18/2015 - 05:05 | 6208429 Tinky
Tinky's picture

For the benefit of those who haven't seen Vincent Browne in action, watch the brief video below. This type of true, adversarial journalism would never be allowed in an American press conference:

https://www.youtube.com/watch?v=HAf7J4a_T1g

Thu, 06/18/2015 - 08:45 | 6208895 RushRoolz
RushRoolz's picture

wow, thanks for posting that. Refreshing to know there's at least one journalist who is not only willing to ask a tough question but keep fighting and pointing out that the "answer" given is not an answer. And of course further proof that central banking is an evil that knows no borders.

Thu, 06/18/2015 - 05:12 | 6208433 Bopper09
Bopper09's picture

Since all this shit is make believe anyway, I'm coming to the conclusion that Star Wars was a documentary, and Yellen is actually Palpatine with a sex change.  Pedro wasn't banned, she just told him next time she'll use her lightning hands on him.

https://www.youtube.com/watch?v=_MHusGl9BeM

Thu, 06/18/2015 - 05:40 | 6208454 GAILLARD1
GAILLARD1's picture

Say it over and over : presstitutes, media bitches....

 

Even if everybody needs a job. 

 

Q E D   From now on US, without free press, cannot announce it is more democratic than Russia... Or others

 

 

Thu, 06/18/2015 - 06:15 | 6208484 J J Pettigrew
J J Pettigrew's picture

QUESTION THE FEDERAL RESERVE

they are not federal and they have no reserves

they operate at the command of the Goldman Sachs....the most nefarous operation in the history of man

 

Thu, 06/18/2015 - 06:52 | 6208529 teutonicate
teutonicate's picture

Great journalism ZH.  Thank you for blowing the lid off this story.

Frankly, this is the kind of thing the cabal has been doing for 2000+ years.

It is long past the time when a member of the cabal can be entrusted with power of any kind in a predominantly white European culture and society.  They have trained us not to trust them.

Our ancestors knew this, but we have forgotten their wisdom.

Thu, 06/18/2015 - 07:18 | 6208571 PedrotheCat
Thu, 06/18/2015 - 07:22 | 6208580 truth serum
truth serum's picture

This POS is going down hard & soon, keep stacking bros, and don't worry about a "cashless society", Michael Revero explained it best, 'they will never go cashless because what will the slimeball politicians shove down the strippers G strings'?

Thu, 06/18/2015 - 09:13 | 6209020 Toolshed
Toolshed's picture

You make a good point, but let's be real. It is the cash stuffed envelopes they receive from their real bosses that will absolutely prevent a cashless society. I mean, how do you bribe a scumbag, parasitic, money grabbing, POS politician without that untraceable cash? One of the big selling points of the elimination of cash payments is the fact that then all payments can be traced. It seems the elected morons are getting more stupid everyday.

Thu, 06/18/2015 - 07:46 | 6208625 Last of the Mid...
Last of the Middle Class's picture

They're well taught what to report and when to keep their mouths shut.

Thu, 06/18/2015 - 08:01 | 6208679 hootowl
hootowl's picture

The FED has been a nation-destroying scam from the outset.

We have no hope of surviving as a nation unless the FED is dismantled and an iron-clad constitutional amendment prevents the re-establishment of any similar institution.  The "national debt" must be repudiated by the American People.  Any repayment of the so-called "national debt" must be effectuated and funded by the stockholders of the FED.

This is an all-around evil institution that was fully intended as a fraudulent economic mechanism to aggregate and consume the wealth of the nation.......and has substantially succeeded.

Thu, 06/18/2015 - 08:36 | 6208847 RushRoolz
RushRoolz's picture

I agree with you but I hate to be a downer... a Constitutional amendment won't do much. The general public is too dumbed down to even know or care, and the politicians and banksters no longer view the Constitution as an iron clad immovable object. It is simply a hurdle that has been (e.g. Obamacare) and will continue to be circumvented and/or ignored.

 

Thu, 06/18/2015 - 07:55 | 6208666 GFORCE
GFORCE's picture

How long til Pedro 'jumps'?

Thu, 06/18/2015 - 07:59 | 6208683 MickV
Thu, 06/18/2015 - 08:06 | 6208709 Fred C Dobbs
Fred C Dobbs's picture

Thank you zerohedge for doing real journalism.

Thu, 06/18/2015 - 08:06 | 6208711 Not if_ But When
Not if_ But When's picture

" The PRESSURE is mounting on these CRIMINALS".

No it's not.  Just go out into society and atempt to engage someone in discusssion about yesterday's FOMC news conference and Pedro.  I guarantee the other party will just give you a blank stare with no idea whatsoever what you are talking about.  Maybe even steer the conversation to Caitlyn Jenner or the fake black person as something more interesting (important) to talk about.

Thu, 06/18/2015 - 08:32 | 6208836 d edwards
d edwards's picture

hillary excludes tough questioners too.

our elites cant be expected to answer to the people!

Thu, 06/18/2015 - 08:59 | 6208954 curbyourrisk
curbyourrisk's picture

Free Pedro!

Thu, 06/18/2015 - 09:11 | 6209012 MrBoompi
MrBoompi's picture

You call Fed policy "self defeating"?  If I create $1 Trillion out of thin air every year, stick it in my bosses bank accounts, and make you pay the money back how is that a bad thing for them?  Now, this may not work out very well for you, but this isn't the point is it?

Thu, 06/18/2015 - 09:22 | 6209061 A is A
A is A's picture

Don't you get it? The real journalists at these "press conferences" were weeded out long ago, just like Pedro was. Everyone who is at this press conference is there precisely because they aren't journalists. Same goes with the potemkin style Obombya "press conferences", on the ultra rare occasion he actually has one.

Thu, 06/18/2015 - 10:27 | 6209333 HeadintheGame
HeadintheGame's picture

Here's a link to a Glenn Greenwald commentary regarding the media as a bunch of copy boys (and girls) who take the pablum they are so weak to accept from "News Sources" and spti it out as though it was critical reporting.  Espectially interesting, Greenwald highlights Stephen Colbert's keynote speech at the 2006 Correspandents Dinner, where he castigates the living shit out ot the so called media.

 

Enjoy.  

https://firstlook.org/theintercept/2015/06/14/sunday-times-report-snowde...

Thu, 06/18/2015 - 10:58 | 6209450 GreaterFool1965
GreaterFool1965's picture

Nailed it!  This is the story of the year so far - not the Fed's intentional, criminal, leaks but the mainstream media's willful abetting of it.

Thu, 06/18/2015 - 11:22 | 6209551 Bobbo
Bobbo's picture

Interpretation:

Chickenshits On The March!  Citizens, be proud of your Free* Press!
(* i.e., free for taking)

Thu, 06/18/2015 - 13:21 | 6210228 kdervin
kdervin's picture

Pedro is a regular on a Chicago radio show - Stocks & Jocks - and he'll be on this Friday 7am CT. 

You can call/tweet your questions, comments, expressions of support at 888-76-JOCKS or @stocksnjocks.

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