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Who's Really In Charge Of Interest Rates? A Graphic Novel
Inspired by Eugene Fama's paper, "Does the Fed Control Interest Rates?," forthcoming in the Review of Asset Pricing Studies, Chicago Booth's Capital ideas magazine exposes the awful truth of who is in charge... and it's not The Fed.
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WRONG! the dog is the fed and its name is janet. she wipes her ass on the new carpet after shitting in the corner. she won't go outside and look around because all the milkbones are in the cupboard. interest rates are the man of the house who does what he's told or he doesn't get any pussy.
OMG.
And it is really from Booth, not the Onion.
We're well and truly fucked. Seriously.
Criminal apologists.
You guys are being too hard on this article. I'm here grinning, clapping and licking the windows.
Is it not like arguing that the prevalence of Soylent Green depends on all sorts of almost undeterminable factors without ever pointing out the moral issue of what Soylent Green is?
If the FED is a dog then who picks up its poop?
That's easy one: The tax payer picks up after the dog.
<That's easy one: The tax payer picks up after the dog.>
yes, but UNDER THREAT OF VIOLENCE if they they fail to comply. ...... Take the threat away and the bank directors have to deal with it...or go to jail and / or be subject to financial compensation.
This one of those times when a US-centric perspective easily slips into exceptional 'Murican misguidedness. The primary distinction between the US central bank and the other large central banks is one of market share. The drivers of interest rates are largely the same.
I've got squirrels, squirrels in my pants!!!
buzzsaw99, you win the award for the best comment on ZH.
Also, cumba is a muzzie terrorist.
Didn't you get banned for being a cunt?
Well done buzz
Sounds like you are implying "man" fucks the dog.
Bull Shit.
What color is the sky in his world?
It's true that Greenspan followed short rates around, before he panicked after 9/11, but that was a loooong time ago.
Yeah, its constantly changing, like the Fed's forward guidance. Pffft, guidance--yeah right.
The fed is a private bank that does what it wants. Govt has no power over them.
They answer to their owners who are NOT publically known.
Those owners do as they please. Grandma fed chief takes orders from the owners.
That's right Sally, Lloyd's got Scooby snacks.
You finally said something funny. Damn, you had to wait a long time for a dog-related article.
Agreed -- truly pathetic.
Let me male this clear to both of you, nail gun and darpa dog.
If laughter is the best medicine, I'm WAY over medicated. And if you don't like my FUCKING medicine simply skip over my comment. At this point there is contractual obligation for you to read my comments, that has been established as fact.
Now as far as other ZH'ers, I do have a limited fan base. The usual profile: those who understand what ZH is really about and know how to work the comment section....
https://www.youtube.com/watch?v=gUdG0RYd6jk
There seems to be a lot of hand wringing here. Let's just blow up the Eccles building and see what happens.
Miffed;-)
Per someone like Kissinger "Inaction has to be avoided".
The reason being that with action you are able to claim ownership of a time period and as such no other authorities will have the opportunity to present themselves.
Were the Fed to be inactive (disappear) and people subsequently realized the Fed actually had no effect on anything some people would lose a tremendous amount of power.
It is too late for Ticonderoga to meet Eccles.
Article V or continue to boil like frogs.
Choke chain.
This is probably the worst example ever :)
1. Controlling your dog starts when he's a puppy. <> The FED made the current system from the start
2. If the dog doesn't listen, you punish him <> US army
3. You are the master as you're the food source <> They print the money and control the amount
4. A dogs love is unconventional <> People don't question the system.
Unconditional, but that also;)
Janet might do well to read how unconditional love works out in some instances.
http://www.wyff4.com/news/witness-woman-killed-in-dog-attack/34866424
No one is in charge.
God, that was awful.
Any way we can have this "cartoonist" jailed?
Now that you mention it, that guy does look a lot like the prophet.
I've seen this "Fed follows, not dictates, interest rates" theory before and find it to be sorely wanting.
There's actual money changing hands at Fed-dictated interest rates - lots and lots and lots of it - that aren't responding to market conditions at all. Who would go to the market at higher interest rates if the Fed is offering lower ones, and they had the privilege of taking advantage of those lower rates?
Bottom line, Sally has the leash around the dog's neck, and not vice versa; and if she's enough of a sociopath, she will choke that dog to fucking death to get it to do what she wants.
Aaaaaarrarararraaggggghhhhhhh!
Damned good thing we don't have academics in charge
The philosophers are always in charge.
What people do is determined by how/what they think.
They can give the large banks lots of cash at 0% which they can turn around and use to buy treasuries at 2% - a nice tidy profit on the backs of taxpayers for the owners of the cartel of private banks known as the Fed.
private banks owned, ultimately, by Jewish European banking dynasties...
which is why we can not find out formally who owns them.
Banal drivel.
Doesn't the USA have anti-monopoly laws?
If so then why the fuck are we all playing Monopoly with one banker?
http://s3.postimg.org/xn6zor70z/images.jpg
The problem with using the anti-trust laws against the government's "trust" is that it grants credence to the anti-trust laws. These laws are not about breaking up monopolies. A monopoly can only be sustained by force, the government. "Anti-trust" laws are anti-freedom "laws."
I licked, um, liked it, but, I play a dog on teevee.
Fuck you and your little dog, too.
End the Fed.
The problem with just saying End the Fed is that the people who need to be convinced the most, those who don't understand how that final statement comes to be, are unconvinced as long as they believe that:
The "banks" are "printing money" and managing a "monetary policy" in the name of "employment" and low "inflation."
After all, who doesn't want their banker to give them money?
Did you really have to use Janet and pussy in the same story????
That was painful- next time leave out the pictures and write it in a 3 sentance paragraph!
The problem is that the economy behaves like a cat.
I like turtles.
Been to Alterac Valley lately?
The theory is sorely wanting. In addition to believing that the Fed doesn't control interest rates I've read that Fama Sr. believes that a problem with the US economy caused the 2008 crisis, not debt. The US GDP grew 1.5% in 2008.
Greenspan, Bernake Yellen are all hired to do as they are told by the owners of the member banks The rates are rigged according to the on going LIBOR situation which should be due fining again for the on going rigging..
I'm still lookin' for the punch line... can y'all help?
This ain't funny- ain't funny at all.
Thanks FED! My currency may be down to three cents on the dollar from when you started but at least we can lock in home loans at three and a quarter for thirty years. That is awesome seeing as most cant even afford the 20% down payment for an average house let alone buy one outright; what with them trading 5-10x book value in most places due to the low interest rates and money printing....
Fuck the impotent Federal Reserve already.
The man (or woman) behind the curtain is a humbug.
Richard Werner explains how Fed interest rates follow private bank credit creation.
It is a positive correlation. Credit driven economy expands, FED raises rates to slow it down. Credit driven economy contracts, FED lowers rate.
Private bank system creates "credit" upon debtor becoming hypothecated. Private banks are the money factory.
Fed does have power over banking system in that private bankers need their ledgers to balance, and the FED controls reserve market. (Reserves are how credit banks settle imbalances.)
But, proper way to see it, is that private banks lend first and find reserves later. Fed is creation of private bankers, so tail does not wag the dog.
See at 11 min 20 seconds into speech, where Werner explains interest rate mechanism:
https://www.youtube.com/watch?v=UkTflCPe0qI
"EVEN IF YOU DON'T AGREE WITH THOSE NUMBERS, IT'S WORTH ASKING WHO'S REALLY IN CHARGE"
Actually, it may not be worth asking.
To employ an aphorism "Wrong questions get wrong answers."
So for those who still want to ask, it's simple: ask with a solution.