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Larry Lindsey Crushes Steve Liesman's Dreams, "The Foolish Fed's Bubble Policy Always Ends Badly"
Former Fed member and National Economic Council director Larry Lindsey unleashed a barrage of uncomfortable truthiness on no lessor Fed apologist than Steve Liesman this morning. In the brief span of 4 minutes, Lindsey demolished Fed policy, "The idea of letting an asset bubble run is literally one of the most foolish things a central bank can do... they always end badly;" crushed the status quo, "Everyone loves the upside but the clean-up is tough... everyone loves a party... but they always end badly with a hangover... at 4am no one thinks the party is going to end but eventually they will have to drive home," and removed hope, "The Fed is out of ammunition after using too much for too long."
Ex-Director of Lindsey explains... (apologies for clip quality)...
Isn't it ironic how former economic policymakers begin to see reason once they leave the inner circle?
"The Fed needs a long-term focus...ignoring asset inflation leads to problems. And of course the third bubble, we deliberately tried to create asset inflation."
"Asset bubbles should not be a substitute for long-term policy."
"I dont think running a bubble-based monetary policy is appropriate."
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just want to punch him in the face! Happy Holidays!
Which one, the full time liar or the guy who only lied professionally (until he retired)?
I want to get out their and LIE LIE LIE....LIESMAN
Steve's large head must be filled with shit, i mean keynesian economics.
That would indicate that Liesman has thoughts?
I call him "Muttonhead" as I feel his big fat head must be full of mutton. See the definition:
a slow-witted, foolish, or stupid person; dolt.
Punch him in the face? I'd like to kick him in the nut sack & then beat him mercerlessly into submission
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I wish he would wipe his lip sometimes, and then fuck off
Bubbles stimulate aggregate demand obviously they're a good thing. The Fed has always shown they're capable of seeing bubbles rising and stablizing the economy afterwards. /sarc
And Obama the Fed puppet......happily screwing the US.
brilliant interview this morning. only thing i disagree with is this notion that the fed is "out of ammo". this "party" will go on so-long as nobody with a set of balls gets in the way of them & their F5 button. the fed is buying shit with $ that doesn't exist; they have no fear of redemptions or buying ceilings. obama NEEDS this party to go on as long as it can otherwise the mirage that is a "great economy & stock market" comes crashing down. an act of congress or a new, fiscally conservative president is going to be needed with NO TIE to this new way of running an economy because similar to a new NFL GM coming in, they can blow it up & start over without fear of ramification that a "policy mistake" was made IF they can properly sell to the american public that THE POLICY WAS THE MISTAKE and we need a COMPLETELY change of course if we are to gut & cut the debt which is the problem; financing it at 0 and negative interest rates are simply throwing a band-aid on a cancer patient's arm.
A cornered and desperate Fed is a threat to us all. They need to be place on a leash, and soon.
Leash? I believe ZH's are getting too soft. The Fed should be abolished & it's owners arrested for Crimies against The American People. Then repudiate all debt.
Was just thinking about how this game ends. . . As long as the fiat US dollar maintains reasonable relative value (vs other currencies), this papergame can continue indefinitely. Problem with commodity prices? Manipulate by printing/buying/selling. Problem with derivatives? NO PROBLEM. They are paper, too! Gold prices too high? No problem, manipulate 'em lower by manipulating paper gold markets.
The game ends IF AND ONLY IF 1 nation (or bloc) declares checkmate and links their paper currency to a tangibly finite, tangible asset. Then the other fiat currencies will dump and those .govs/central banks will no longer be able to pull their nuts from the fire by using said fiat to manipulate the markets. Of course, good luck to the nation/bloc that tries this, cuz they'll have the full US military/CIA complex coming down on their ass like an ICBM rain.
Agreed. However, the Lucerferian MIC / Pure Evil Criminal Psychopaths are becoming more irrelevant each & everyday on the World's stage as they're now working out in the open & more people are now awakening.
In other words, the powerful art of their PsyOp, False Narratives & Propagada no longer work. Well, not as much.
agree 100% with this statement. The reason why Krugman and Bernanke are so loved by the "elites" and their sycophant followers is because of the work they have done in Japan, who has been in a recession for 25+ years.
Japan, and the Nikkei, is the model. All the CBs are doing it now to cover up the fraud because they know as long as they prop up the markets , all of the pensioners/stockholders will be in their pockets and will support the military state that the governments and corporations bankroll to suppress the younger generations and others calling out the obvious fraud that is the reason why inequality is rising, oil is tanking, ISIS and Turkey are causing shit, and Russia is pissed.
Lies.man - enough said.
It's foolish only to the fools that are allowing themselves to be fooled. The Feds know exactly what they're doing and why, and it's NOT in your best interest. Only theirs. That's why I call it lyin' and stealin'.
anytime i hear someone say the Not so Federal Reserve is "foolish' or "clueless" my listening stops right there. No. Not quite.. They have known even before 2008 what they are doing ..Think QE/ZIRP Patriot act all the same. "Cures" or sold as, that were really known before and The Events orchestrated as ways to implement what was already known. Come on. Lets end this "the fed is stupid" mantra. Thats what these criminals want you to think
Exactly. They and the rest of the totalitarians are seeking to end all personal freedoms and all personal property. And their number one goal is to get us to willingly forfiet these rights!
Fuck them because they are the ones who will unleash the hellstorm upon the Earth. This shit won't end badly, it will end with the End.
What most just cannot fathom is that QE and low interest rates are means to an end, they never meant to fix anything, they are a bridge to facilitate the transition to a new global financial order and, by implication, social engineering and not at all incompetence or stupidity...
That's the short of it. However, I don't doubt for a second these Pure Evil Criminal Psychopaths have already restructured for the coming engineered collapse & fallout thereafter.
Liesman has done pretty well for a turd
Ya, he keeps getting flushed down, only to float back up...
Liesman's mother turned him down. Only the FED has a use for him.
I think he was raised by a pack of banksters.
Larry sounds like a control freak himself. Nowhere during the interview did I hear Larry say anything about letting the market set the rates. He wants to control asset bubbles, which is fed speak for controlling the markets.
Tylers,
"...on no lessor Fed apologist..." is wrong.
A lessor is someone who leases something, generally a property. Lesser is a qualitative term and the correct one to use here.
DavidC
Gee Wally, when have we heard all of this before? Oh yeah..... 1930
The problems with cheap money stimulus were warned about in 1930 by Austrian economist Dr. Benjamin Anderson Jr., right in the pages of the New York Times. The effects of withdrawl of the cheap money stimulus were refered to by Dr. Anderson as the "headaches which will follow." Excerpt:
"Cheap Money a Costly Panacea"
Dr. Anderson of Chemical Bank Says Remedy for Business Slump is Only Temporary; Boon to the Speculator; Interest Rate is Viewed as Just One Factor, Not Dominant in Circle of Trade.
SYRACUSE, N.Y., April 12, "Cheap Money is a stimulant, also an intoxicant," warned Dr. Benjamin M. Anderson Jr., economist of the Chase National Bank of New York City, in an address here tonight. "If the dose is large enough," he said, "a very substantial temporary effect can be brought about, but headaches will follow. It is not the sound way to do it."
After saying that cheap money was a costly and temporary panacea for business depression, Dr. Anderson said: "It is definitely undesirable that we should employ this costly method of buying temporary prosperity again. The world's business is not a moribund invalid that needs continuous galvanizing by an artificial stimulant."
The Federal Reserve System and the central banks of Europe are under heavy pressure from advocates of the cheap money panacea, Dr. Anderson said. The matter is exceedingly simple in the minds of its advocates, he added.
Cheap money will not induce manufacturers and merchants to increase their borrowings in an unsatisfactory business situation, Dr.Anderson declared. He cited the figures for commercial loans as reported by member banks of the Federal Reserve System in support of this contention.
But if merchants and manufacturers will not use cheap money, he said, speculators will. They will use cheap money in buying stocks, for the prospect of capital appreciation....
"In the second place, such methods are extremely costly in their effect upon the quality of bank credit. The ideal employment of bank credit is in financing the movements of goods, in financing short, self- liquidating commercial transactions. We have gone much too far in the substitution of bank investments in bonds, collateral loans against securities, bank holdings of real estate mortgages, and bank holdings of installment finance paper for the normal bank credit that represents goods in movement and that adjusts itself automatically to the volume of trade."
NY Times, April 13, 1930
Nice find. Hadn't seen that one. Prescient, then and now.
Good thing the government props up this shitfest or none of these assholes would have a job. Who watches this crap anyway. If there was REAL "terrorism" they would have bombed this place years ago
the illegal fed has never had any ammunition...what is so hard about it being illegal, just like illegal aliens...pfffft
end the fed, break up the banksters, flush DC of the 535 traitors there...we need to cull the herd of the traitors, fornicators (hollywierd) and money changers...
536 traitors... we can't forget the WH chimp, can we...
I've always thought that a fitting punishment for the moronic Keynesian scum in DC would be if they were beaten to death on live TV with a 400-oz gold brick. Or, for a longer punishment, get the Chinese to do the job with their kilo bars. Just a thought...
Was this video taken with a potato?
Haha...Larry Lindsay has been wrong for 5 years. Buy the dip. Fed and ECB have your back. Easy money.
One thing that never gets old is watching Liesamn's pro-QE/Fed ways get squashed. Makes one feel all Christmasy. Mind you, I wouldn't be following Lindsay's lead either
I stood up and applauded this video.
Steve Liesman and Joe Kernen need to wash the corporate cum out of their eyes