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"You're Welcome" - More Unintended Humor From The Economists At The St. Louis Fed

Tyler Durden's picture




 

Back in November 2014, when the Fed had not yet admitted its third and fourth mandates were keeping the stock market as levitated as possible and responding to economic volatility and market turbulence in China (as it did last week) we made what we thought at the time was a sarcastic tweet, yet one which captured the gist of the September FOMC statement, when we said:

While the accuracy of this tweet has since been confirmed by the Fed itself, one person took offense at the contents: the person - St. Louis Fed "vice president" David Andolfatto. This was his reply, before promptly deleting his tweet:

To be sure, Andolfatto promptly apologized after our post led to a bemused public outcry at the Fed's own dickheadery, which unlike ours, has resulted in a record wealth transfer from the middle class to the uber wealthy, the lack of any wage growth in 7 years, a bond and stock market that flash crashes almost on a monthly basis and an economy which can not even survive a 25 basis point hike.

We bring it up because the same vice-presidential Economist Ph.D. was the source of some unintentional humor when he sparred with none other than our friend "Rudy von Havenstein", the patron saint of money-printing central banks (which these days means all of them) everywhere.

The full twitter exchange, captured in images so it can't be deleted after the fact, is as follows. It needs to commentary.

 

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Tue, 09/22/2015 - 15:54 | 6580827 nuubee
nuubee's picture

I think his arrogance in tweeting that literally comes from ignorance.

They honestly cannot comprehend the damage they've caused. They truly believe that data will save them. Much like Robert McNamara thought data would help him win the Vietnam war instead of a thorough reading and studying of Sun Tsu's thousand-year-old "The Art Of War"... Ancient wisdom is lost on these people, they're so self-convinced of their abilities. They're about to see a shitstorm.

Tue, 09/22/2015 - 15:59 | 6580868 undertow1141
undertow1141's picture

"The Art of War" is my coffee table book.

Tue, 09/22/2015 - 16:02 | 6580884 SWRichmond
SWRichmond's picture

sonuvabitch wants "help"?

ECONOMIES CANNOT BE SUCCESSFULLY MANAGED OR MANIPULATED IN THE LONG TERM.  TRYING TO DO SO ONLY MAKES THINGS WORSE, ALWAYS.  Get a real job in the private sector bringing a useful product to market at a competitive price.

Tue, 09/22/2015 - 16:10 | 6580928 Bunghole
Bunghole's picture

David better start learning to take alternate routes home.

A roadside sniper just might be waiting.

Fuck this assmaggot.

Tue, 09/22/2015 - 16:12 | 6580954 camaro68ss
camaro68ss's picture

Get the bat out, we just need to bust more windows to get the economy rolling

Tue, 09/22/2015 - 16:59 | 6581241 JerseyJoe
JerseyJoe's picture

LOL I'm rolling...

Tue, 09/22/2015 - 19:00 | 6581680 SuperRay
SuperRay's picture

I don't know who this moron blew to get a Ph.D., but you don't need one to understand that when 1% of the population has the money, there's none available to the 99% to buy the shit that keeps the economy alive.  Maybe these assholes need to read, not The Art of War, the The Goose that Laid the Golden Egg.  Dumb shithead asshole arrogant self-satisfied turds, etc...

Tue, 09/22/2015 - 20:01 | 6581851 Keyser
Keyser's picture

The Fed would probably do a better job if they DID accept advice from 5 year olds... 

Tue, 09/22/2015 - 20:55 | 6582065 Gaius Frakkin' ...
Gaius Frakkin' Baltar's picture

Here's some constructive advise...

SUCKS TO BE YOU.

Wouldn't surprise me if more “cancers” and other medical issues crop up from here on out. The perfect excuse for checking out, retiring early, and withdrawing to the enclave.

Tue, 09/22/2015 - 16:13 | 6580970 hongdo
hongdo's picture

I recommend a 3 book set

Carl von Clausewitz, On War

Sun Tzu, The Art of War

Bruce Lee, Tao of Jeet Kune Do

 

Tue, 09/22/2015 - 16:19 | 6580975 tc06rtw
tc06rtw's picture

 The sad fact is  (and I suspect even THEY would admit it), they have only two choices:

Do we keep 1% wealthy
   or have  0% wealthy?

Tue, 09/22/2015 - 16:19 | 6581017 nuubee
nuubee's picture

Wealth is never destroyed, it is merely transferred. In our modern times we've come to consider a number in a bank or brokerage account as "wealth". This is nonsense. Such things are no different than a scorecard at a casino before you cash out. Wealth is the sum total of all available and desirable assets (perishable or not) that exist in the world.

 

When paper currency dies, that wealth still exists, and in order to cover paper debts, much of it will start moving around at warp speed.

Tue, 09/22/2015 - 16:32 | 6581101 Bryan
Bryan's picture

Almost.  I view wealth as an illusion of happiness.  One can be 'wealthy' with some minimal clothing and a straw roof over the dirt floor.  One can be wealthy with 5 palaces, 300 servants and 23 cars and jets.  Q: Who is happier?   A: Whoever is content with what they have.

Tue, 09/22/2015 - 17:01 | 6581250 JerseyJoe
JerseyJoe's picture

And who looks over their shoulder for the mobs with pitchforks?  

Wed, 09/23/2015 - 00:12 | 6582656 Boris Alatovkrap
Boris Alatovkrap's picture

Cattle, because is dinner time.

Tue, 09/22/2015 - 19:47 | 6581815 fiftybagger
fiftybagger's picture

6 But godliness with contentment is great gain. 7 For we brought nothing into this world, and it is certain we can carry nothing out. 8 And having food and raiment let us be therewith content. 9 But they that will be rich fall into temptation and a snare, and into many foolish and hurtful lusts, which drown men in destruction and perdition. 10 For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows.

1 Timothy 6 King James Bible

Tue, 09/22/2015 - 22:02 | 6582334 Bryan
Bryan's picture

Or this one:

 

"I am not saying this because I am in need, for I have learned to be content whatever the circumstances."  Phil 4:11

Tue, 09/22/2015 - 22:39 | 6582461 Billy the Poet
Billy the Poet's picture

"Never be embarrassed by your wealth. This recent contempt for money is still another trick of the rich to keep the poor without it." -- Godfather II

Wed, 09/23/2015 - 00:54 | 6582720 Booked
Booked's picture

Value is ALWAYS subjective!

Tue, 09/22/2015 - 17:38 | 6581410 Matthew John
Matthew John's picture

Wealth is never destroyed, it is merely transferred. In our modern times we've come to consider a number in a bank or brokerage account as "wealth". This is nonsense. Such things are no different than a scorecard at a casino before you cash out. Wealth is the sum total of all available and desirable assets (perishable or not) that exist in the world.

What happens in all-out war?

Some wealth may be hidden, such as great works of art that survived WWII, but much is truly destroyed.

 

Tue, 09/22/2015 - 18:35 | 6581595 Silky Johnson
Silky Johnson's picture

What is destroyed is waiting to be built again and is wealth for the builder. He was correct it is only transferred.

Tue, 09/22/2015 - 22:40 | 6582467 Billy the Poet
Billy the Poet's picture

Broken window fallacy writ large.

Wed, 09/23/2015 - 00:15 | 6582662 Boris Alatovkrap
Boris Alatovkrap's picture

Boris is prefer Paul Krugman broken face analogy. Break Doctor Krugman face and triage team, doctor, custodial staff is all now able to pay rent and monthly bill.

Wed, 09/23/2015 - 06:31 | 6582949 Arnold
Arnold's picture

I believe many derivatives, and other magic lacking firm collateral, will be destroyed.

Also what is left of "Full Faith and Trust" in many things in the best .gov interest.

 

Tue, 09/22/2015 - 19:03 | 6581692 Jack Napier
Jack Napier's picture

Currency is not wealth. Money is wealth. Federal reserve notes are not dollars. Debt is not money. Gold and silver are money.

When the debt bubble bursts, gold and silver and all other finite tangible assets will rise in price to absorb that debt.

When people talk about wealth transfer what they are referring to, whether they know it or not, is the global redistribution of gold and silver, but more so gold.

IOUs are merely a means to acquiring wealth, and while they have no real value, they are still redeemable for face value as long as the casino is running.

Tue, 09/22/2015 - 23:44 | 6582615 NoBillsOfCredit
NoBillsOfCredit's picture

Gold and Silver are not money any more than steel is a hammer. Money is a tool and the best money is made from gold and silver. The current FEDERAL RESERVE NOTES are not notes at all. They are a total scam, nothing but script i.e. pretend money. We the people are fools for accepting them but we all must be foolish until none of us are. Since the "debt" is actually just points in a game, when the game is over the points are gone. Since the "debt" is based upon fraud any contract based upon fraud is void ab initio. Oh, the old Federal Reserve Notes actually were Bills of Credit that truly were notes and debts which when paid the payee got gold or silver coin (money).

Wed, 09/23/2015 - 00:57 | 6582725 Booked
Booked's picture

A hard dick is money!!

 

Wed, 09/23/2015 - 06:35 | 6582958 Arnold
Arnold's picture

Only in the Nation's Capitol and some highend San Francisco bath houses.

Otherwise it is found for pocket change on most street corners.

Tue, 09/22/2015 - 20:25 | 6581913 Bro of the Sorr...
Bro of the Sorrowful Figure's picture

have to disagree. wealth is most certainly destroyed in a debt based moetary system: 

1) in war -- self explanatory. in fact i would say that more is lost during the destruction process than was initially created because we lose human and cultural capital as well. it has all sorts of ancillary negative consequences. 

and 

2) malinvestment -- an example might be instructive. a banking institution borrows money at 0% and uses the money to make a high risk loan to a fracking company. that company spends the money on a project that would never have cleared the hurdle rate in a free market interest rate environment. the fracking company then poisons some ground water, makes some profit for a while and manages to pay off its debt until the price of oil sharply drops. they cant make their interest payments, the bank comes to collect its collateral. in this scenario the initial wealth was from the taxpayer, stolen by the banks, lent to the frackers, then stolen back from the banks again. the wealth destruction is the widescale strip mining of the entire planet that comes from malinvestment. there is obviously a transfer of "wealth" from the taxpayers to the bank and partially to the fracking company, which on paper might come out, if it was all plotted out, to an equal transfer, but you fail to take into account all the externalities, destruction of natural resources as well as lives, families, health etc. this is the destruction of human capital and resources which are themselves a massively important measure of wealth for a country. 

 

Tue, 09/22/2015 - 16:38 | 6581139 roisaber
roisaber's picture

Don't forget the Tao te Ching, which The Art of War draws from philosophically.

Tue, 09/22/2015 - 17:44 | 6581441 r0mulus
r0mulus's picture

word up +1000

Wed, 09/23/2015 - 02:03 | 6582781 undertow1141
undertow1141's picture

The people suffer from famine because of the multitude of taxes
consumed by their superiors. It is through this that they suffer
famine.

The people are difficult to govern because of the (excessive)
agency of their superiors (in governing them). It is through this
that they are difficult to govern.

The people make light of dying because of the greatness of their
labours in seeking for the means of living. It is this which makes
them think light of dying. Thus it is that to leave the subject of
living altogether out of view is better than to set a high value on
it.

Tue, 09/22/2015 - 16:05 | 6580889 Sudden Debt
Sudden Debt's picture

You see that arrogance in a lot of companies in every sector. That's why most companies have a PR and communications departement to keep that under control.

Most people just shouldn't be allowed to talk to the public, let alone on social media.

And if you read it twice, you don't see the arrogance but defeatisme in his answers where they feel stuck in giving better economic insights.

Tue, 09/22/2015 - 16:56 | 6581228 mastersnark
mastersnark's picture

Nah, he's just plain arrogant, knowing he is a Eloi and the chance of him getting snatched by a Morlock is next to zero.

Tue, 09/22/2015 - 17:09 | 6581278 A Nanny Moose
A Nanny Moose's picture

Indeed. You describe our world, in a nutshell. We have "Big Data." We gather data, and data about data. Unfortunately the equations and collection methods are heavy on assumptions, low on observation. We think data will reduce, or resolve the unintended consequences. Good luck with this.

Back to my tumbleweed herding.

Tue, 09/22/2015 - 22:09 | 6582367 Clowns on Acid
Clowns on Acid's picture

Well...lets say their comp gets cut to 65k / year. Then they will have more to say .. believe me.

Wed, 09/23/2015 - 06:39 | 6582960 Arnold
Arnold's picture

Nice.

Where's that guy with the lay off list?

Gotta check the Chi town Fed layoff list.

Tue, 09/22/2015 - 23:37 | 6582599 NoBillsOfCredit
NoBillsOfCredit's picture

You have 52 up votes! I don't recall ever seeing more than about 20. How's that possible?

Wed, 09/23/2015 - 00:23 | 6582673 yogibear
yogibear's picture

The Federal Reserve's arrogance is digusting. The criminal bankster cabal in-your-face!

The day they get mob justice served is the day there will be celebration and free markets.

Tue, 09/22/2015 - 15:54 | 6580834 NoDebt
NoDebt's picture

Extra scratchy rope to be used when we make the noose for that one.

And just before you string them up, always remember to whisper "It's nothing personal." in their ear.  That really gets 'em.

Tue, 09/22/2015 - 15:56 | 6580849 madcows
madcows's picture

.... just "business"?

Tue, 09/22/2015 - 15:59 | 6580869 ghengis86
ghengis86's picture

No. It would be a just business, hanging criminal bankers

Also, did you run out of rusty spiral-shanked nails and switched to rope?

Tue, 09/22/2015 - 15:59 | 6580871 Rainman
Rainman's picture

just justice

Tue, 09/22/2015 - 16:04 | 6580883 NoDebt
NoDebt's picture

I'll explain it this way, since sometimes people misunderstand what I mean when I say that.

Does it look in any way to you like they give a crap what their hurtful monetary policies have done to us?  Clearly not.

They're not running the country down the shitter because they hate us.  They just don't give a shit about you or me or anybody.  In other words, they aren't doing it to us for some kind of personal reason.  Therefore, we repay them in kind when the time comes.  It sucks that they're going to have to be taken down that way, but that's the only way it's going to happen.  Not out of hate, but simple necessity.  I think it's important they understand that before the rope is pulled tight.  In other words, IT'S NOTHING PERSONAL, it's just something that has to be done.  Wrong time, wrong place, sucks being you, but that's how the cookie crumbles.  No hard feelings but you fucked up and now you pay the piper.

Tue, 09/22/2015 - 16:06 | 6580906 madcows
madcows's picture

It's a Godfather quote...  when the Dons are bumping each other off.

Tue, 09/22/2015 - 16:15 | 6580980 Utah_Get_Me_2
Utah_Get_Me_2's picture

Like smashing a spider that crawls under your door.. you aren't smashing it because you have anything against spiders.. you just can't have it crawling in your bed and biting you in the middle of the night. Some things just have to be done.  

Tue, 09/22/2015 - 23:35 | 6582594 NoBillsOfCredit
NoBillsOfCredit's picture

Why one downvote? Someone love spiders so much they would not kill them if they are in their house? If so, don;t go to their house! :)

Tue, 09/22/2015 - 17:07 | 6581280 gammab0y
gammab0y's picture

I'm not sure it's that simple.   I think the vast majority of Fed economists really, truly believe that the Fed is doing the right thing.  

I use the word "believe" there purposefully.  There is a element of religious zealotry in their behavior.   I have spent a lot of time talking to Fed economists and researchers.  They are smart, but not bright.   What I mean is that they thoroughly understand the economic "science" as they have been taught it and can apply its theories and models properly, but there seems to be very little intellectual hunger to challenge any of the core philosophies and principals that are foundation of the "science".   I don't know how much of that is due to the personalities  and educational grooming of Fed hires and how much is due an institutional culture that punishes challenging voices, but there is no question there is an a deep institutional faith that everything it is doing is the right thing to do.

I sat in the back of the room during a speech that the Jim Grant gave to a couple of hundred Fed economists.  To the Fed's credit, they had created a series of lectures called Listening to Our Critics or something like that, and Jim was an early invitee.   If I recall correctly, ZH published some part of this speech.  It was a beautiful and eloquent defense of sound money and a polite but utter evisceration of the Fed and its behavior.  

He might as well have been championing Mohammed to a audience of Southern Baptists.   There was lots of shaking heads, muttering in low voices, and looks of incredulity.   He was challenging their religion.   What I found most interesting was the follow-up questions.  Here he was challenging the vary underpinnings of their institution, and no one delved in to the philosophical arguments he had made.  The questions were uniformly technical and unremarkable.  I don't remember the details, but it was akin to having Gustave Eiffel unveil his tower and asking how he determined how many rivets to put in each joint.  

What I can tell you is that the average Fed economist thinks he's helping out America and believes he is championing economic truth just as fervently as any Bible thumper.  In that sense, he is innocent of all the crimes ZH would put on his shoulders.  If you put a blind man behind the wheel and allow him to drive, is it really his fault when he runs over somebody? 

Tue, 09/22/2015 - 19:17 | 6581737 commishbob
commishbob's picture

Very eloquent and insightful, gammaboy. Well-done. 

Tue, 09/22/2015 - 19:53 | 6581826 fiftybagger
fiftybagger's picture

"I'm not sure it's that simple.   I think the vast majority of Fed economists really, truly believe that the Fed is doing the right thing."

 

Kinda like the Masons.  The lower level ones think they're helping kids, while the higher ups know they really worship Satan.

Tue, 09/22/2015 - 22:08 | 6582360 Clowns on Acid
Clowns on Acid's picture

You done good.

Tue, 09/22/2015 - 23:30 | 6582583 NoBillsOfCredit
NoBillsOfCredit's picture

The road to Hell is paved with good intentions. I also think most of those bastard trators in the District of Criminals are sociopaths too.

Tue, 09/22/2015 - 20:12 | 6581877 Renfield
Renfield's picture

<<They're not running the country down the shitter because they hate us.  They just don't give a shit about you or me or anybody.  In other words, they aren't doing it to us for some kind of personal reason.  Therefore, we repay them in kind when the time comes.>>

It isn't personal. They'd have to know or care about us for that.

"The men didn't destroy the warren because they hate us for raiding their crops and gardens. It was just because we were in their way. They killed us to suit themselves. Men will never rest until they've spoiled the earth and destroyed all of the animals." -- Watership Down

Tue, 09/22/2015 - 15:55 | 6580844 madcows
madcows's picture

only assholes use twatter.

Tue, 09/22/2015 - 16:02 | 6580881 Ignatius
Ignatius's picture

I also have a problem with the description of the upward movement of wealth as a "trickle."  Afterall, have we not seen Blankfein become a billionaire before our very eyes?

Tue, 09/22/2015 - 16:46 | 6581184 tmosley
tmosley's picture

Yes, we use it to shit on people we don't like.

Tue, 09/22/2015 - 15:56 | 6580848 ssp2s
ssp2s's picture

#Religion

Tue, 09/22/2015 - 15:58 | 6580864 ssp2s
ssp2s's picture

They see themselves more of a religion than a science.  So I guess that means they are sending us to hell, but we already knew that.

Tue, 09/22/2015 - 15:59 | 6580872 undertow1141
undertow1141's picture

I took it that way too.

Tue, 09/22/2015 - 17:00 | 6581248 KingTut
KingTut's picture

Keynesianism is a reigious cult

Tue, 09/22/2015 - 15:57 | 6580855 Rigger
Rigger's picture

Fuckers. Will be deleted and a half assed apology given, but this right here is why I won't shed a tear as we impale bankers en masse in the revolution. They deserve it.

Tue, 09/22/2015 - 16:00 | 6580875 ebworthen
ebworthen's picture

Making fun of religion, and income disparity.

Pretty much admitting he is:  unethical, prejudiced, and bought.

Tue, 09/22/2015 - 16:24 | 6581043 SDShack
SDShack's picture

Title of the article should just have been "Tweets from a Sociopath".

Tue, 09/22/2015 - 16:02 | 6580885 Chuck Knoblauch
Chuck Knoblauch's picture

Your money invested with consensus or fundamentals?

The perception of fantasy can be a bitch.

Tue, 09/22/2015 - 16:07 | 6580912 buzzsaw99
buzzsaw99's picture

I think you guys should disband.

my thought exactly

Tue, 09/22/2015 - 16:12 | 6580951 SillySalesmanQu...
SillySalesmanQuestion's picture

The second "shot heard around the world" will be when us commoners will decide we need some live target practice and sight in these contemptuous bastards and start squeezing the trigger....
Personally, I like the idea of rusty, barbed wire as a hangmans noose.

Tue, 09/22/2015 - 23:47 | 6582617 wendigo
wendigo's picture

You will want to kill a man as painlessly and quickly as possible. Trust me on this. 

Tue, 09/22/2015 - 16:19 | 6581011 ZippyBananaPants
ZippyBananaPants's picture

What an asshole.

Tue, 09/22/2015 - 16:38 | 6581113 frank H
frank H's picture

This was my article that basically sums it all up:

http://www.zerohedge.com/news/2014-02-01/how-central-banks-cause-income-...

 

This is what i think of the economics profession:

https://mises.org/library/sad-state-economics-profession

There isn't one in 100 economists who really understands economics. The entire lot working for the government and most academic institution should be fired for incompetence!

Tue, 09/22/2015 - 16:35 | 6581118 Sam Spade
Sam Spade's picture

I find Andolfatto's tweets...unsavory.

Tue, 09/22/2015 - 16:38 | 6581141 Not if_ But When
Not if_ But When's picture

It's like the bemused look and impatience on Greenspan's face when Bernie Sanders was grilling him about having no clue whatsoever about the typical American.  Accusing him of not having one tidbit of thought about the middle or working class.  Greenspan responded with gooblygok of nothingness about statistics and how Americans have the highest living standard among developed nations, etc, etc, etc.  Sanders interrupted him to mention Scandinavia with a higher standard of living with free healthcare and education, at which point Greenspan acknowledged that before droning on about nothingness again.

All this is like the joke that Geithner, Paulson and Rubin thought was so hilariously funny at that conference not long ago.  I am using a photo of Paulson and Rubin laughing uncontrollably as my screensaver.

Tue, 09/22/2015 - 19:17 | 6581734 franciscopendergrass
franciscopendergrass's picture

All these fucks are a bunch of sociopaths.  These people have no ability to empathize.  

Wed, 09/23/2015 - 07:13 | 6583009 Wannabe_Oracle
Wannabe_Oracle's picture

Watch the documnetary "Inside The Meltdown" - I think PBS ran it. There is a scene when Geithner, Rubin, Paulson and the rest of the ilk appear to be amused with the "Credit Crisis". They are all smirking, as if its funny! Go watch it - sick a$$holes all of them!

Tue, 09/22/2015 - 16:39 | 6581146 centerline
centerline's picture

Is this even real?  Hard to believe.  Not saying it isn't.  It justs seems so out of place.

Tue, 09/22/2015 - 17:13 | 6581318 I Write Code
I Write Code's picture

God bless twitter, I never thought 140 characters could be so good.

Tue, 09/22/2015 - 18:18 | 6581543 hannah
hannah's picture

there is a wall of economic shit coming that beggers the mind and yet tell the average joe on the street and they think you are a fucking loon. maybe the central banks can print money forever....

hahaha.

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