Bernanke Speaks In Jackson Hole Redux: "Fed Has Range Of Tools For More Stimulus"

Tyler Durden's picture

The embargo has been lifted and here are the headlines, which are eeriely reminiscent of the Jackson Hole speech, courtesy of Bloomberg:


Full speech:

The following is a text of Federal Reserve Chairman Ben S. Bernanke’s remarks to the Economic Club of Minnesota in Minneapolis:

Good afternoon. I am delighted to be in the Twin Cities and would like to thank the Economic Club of Minnesota for inviting me to kick off its 2011-2012 speaker series. Today I will provide a brief overview of the U.S. economic outlook and conclude with a few thoughts on monetary policy and on the longer-term prospects for our economy.

The Outlook for U.S. Economic Growth
In discussing the prospects for the economy and for policy in the near term, it bears recalling briefly how we got here. The financial crisis that gripped global markets in 2008 and 2009 was more severe than any since the Great Depression. Economic policymakers around the world saw the mounting risks of a global financial meltdown in the fall of 2008 and understood the extraordinarily dire economic consequences that such an event could have. Governments and central banks consequently worked forcefully and in close coordination to avert the looming collapse. The actions to stabilize the financial system were accompanied, both in the United States and abroad, by substantial monetary and fiscal stimulus. Despite these strong and concerted efforts, severe damage to the global economy could not be avoided. The freezing of credit, the sharp drops in asset prices, dysfunction in financial markets, and the resulting blows to confidence sent global production and trade into free fall in late 2008 and early 2009.

It has been almost exactly three years since the beginning of the most intense phase of the financial crisis, in the late summer and fall of 2008, and a bit more than two years since the official beginning of the economic recovery, in June 2009, as determined by the National Bureau of Economic Research's Business Cycle Dating Committee. Where do we stand? There have been some positive developments over the past few years. In the financial sphere, our banking system and financial markets are significantly stronger and more stable. Credit availability has improved for many borrowers, though it remains tight in categories--such as small business lending--in which the balance sheets and income prospects of potential borrowers remain impaired. Importantly, given the sources of the crisis, structural reform is moving forward in the financial sector, with ambitious domestic and international efforts under way to enhance financial regulation and supervision, especially for the largest and systemically most important financial institutions.

Nevertheless, it is clear that the recovery from the crisis has been much less robust than we had hoped. From recent comprehensive revisions of government economic data, we have learned that the recession was even deeper and the recovery weaker than we had previously thought; indeed, aggregate output in the United States still has not returned to the level that it had attained before the crisis. Importantly, economic growth over the past two years has, for the most part, been at rates insufficient to achieve sustained reductions in the unemployment rate, which has recently been fluctuating a bit above 9 percent.

The pattern of sluggish economic growth was particularly evident in the first half of this year, with real gross domestic product (GDP) estimated to have increased at an annual rate of less than 1 percent, on average, in the first and second quarters. Some of this weakness can be attributed to temporary factors, including the strains put on consumer and business budgets by the run-ups earlier this year in the prices of oil and other commodities and the effects of the disaster in Japan on global supply chains and production. Accordingly, with commodity prices coming off their highs and manufacturers' problems with supply chains well along toward resolution, growth in the second half looks likely to pick up. However, the incoming data suggest that other, more persistent factors also have been holding back the recovery. Consequently, as noted in its statement following the August meeting, the Federal Open Market Committee (FOMC) now expects a somewhat slower pace of recovery over coming quarters than it did at the time of the June meeting, with greater downside risks to the economic outlook.

One striking aspect of the recovery is the unusual weakness in household spending. After contracting very sharply during the recession, consumer spending expanded moderately through 2010, only to decelerate in the first half of 2011. The temporary factors I mentioned earlier--the rise in commodity prices, which has hurt households' purchasing power, and the disruption in manufacturing following the Japanese disaster, which reduced auto availability and hence sales--are partial explanations for this deceleration. But households are struggling with other important headwinds as well, including the persistently high level of unemployment, slow gains in wages for those who remain employed, falling house prices, and debt burdens that remain high for many, notwithstanding that households, in the aggregate, have been saving more and borrowing less. Even taking into account the many financial pressures they face, households seem exceptionally cautious. Indeed, readings on consumer confidence have fallen substantially in recent months as people have become more pessimistic about both economic conditions and their own financial prospects.

Compared with the household sector, the business sector generally presents a more upbeat picture. Manufacturing production has risen nearly 15 percent since its trough, driven importantly by growth in exports. Indeed, the U.S. trade deficit has narrowed substantially relative to where it was before the crisis, reflecting in part the improved competitiveness of U.S. goods and services. Business investment in equipment and software has also continued to expand. Corporate balance sheets are healthy, and although corporate bond markets have tightened somewhat of late, companies with access to the bond markets have generally had little difficulty obtaining credit on favorable terms. But problems are evident in the business sector as well: Business investment in nonresidential structures, such as office buildings, factories, and shopping malls, has remained at a low level, held back by elevated vacancy rates at existing properties and difficulties, in some cases, in obtaining construction loans. Also, some business surveys, including those conducted by the Federal Reserve System, point to weaker conditions recently, with businesses reporting slower growth in production, new orders, and employment.

Why has this recovery been so slow and erratic? Historically, recessions have tended to sow the seeds of their own recoveries as reduced spending on investment, housing, and consumer durables generates pent-up demand. As the business cycle bottoms out and confidence returns, this pent-up demand, often augmented by the effects of stimulative monetary and fiscal policies, is met through increased production and hiring. Increased production in turn boosts business revenues and increased hiring raises household incomes--providing further impetus to business and household spending. Improving income prospects and balance sheets also make households and businesses more creditworthy, and financial institutions become more willing to lend. Normally, these developments create a virtuous circle of rising incomes and profits, more-supportive financial and credit conditions, and lower uncertainty, allowing the process of recovery to develop momentum.

These restorative forces are at work today, and they will continue to promote recovery over time. Unfortunately, the recession, besides being extraordinarily severe as well as global in scope, was also unusual in being associated with both a very deep slump in the housing market and a historic financial crisis. These two features of the downturn, individually and in combination, have acted to slow the natural recovery process.

Notably, the housing sector has been a significant driver of recovery from most recessions in the United States since World War II, but this time--with an overhang of distressed and foreclosed properties, tight credit conditions for builders and potential homebuyers, and ongoing concerns by both potential borrowers and lenders about continued house price declines--the rate of new home construction has remained at less than one-third of its pre-crisis peak. Depressed construction also has hurt providers of a wide range of goods and services related to housing and homebuilding, such as the household appliance and home furnishing industries. Moreover, even as tight credit for builders and potential homebuyers has been one of the factors restraining the housing recovery, the weak housing market has in turn adversely affected financial markets and the flow of credit. For example, the sharp declines in house prices in some areas have left many homeowners "underwater" on their mortgages, creating financial hardship for households and, through their effects on rates of mortgage delinquency and default, stress for financial institutions as well.

As I noted, the financial crisis of 2008 and 2009 played a central role in sparking the global recession. A great deal has been and continues to be done to address the causes and effects of the crisis, including extensive financial reforms. However, although banking and financial conditions in the United States have improved significantly since the depths of the crisis, financial stress continues to be a significant drag on the recovery, both here and abroad. This drag has become particularly evident in recent months, as bouts of sharp volatility and risk aversion in markets have reemerged in reaction to concerns about European sovereign debts and related strains as well as developments associated with the U.S. fiscal situation, including last month's downgrade of the U.S. long-term credit rating by one of the major ratings agencies and the recent controversy surrounding the raising of the U.S. federal debt ceiling. It is difficult to judge how much these events and the associated financial volatility have affected economic activity thus far, but there seems little doubt that they have hurt household and business confidence, and that they pose ongoing risks to growth.

While the weakness of the housing sector and continued financial volatility are two key reasons for the frustratingly slow pace of the recovery, other factors also may restrain growth in coming quarters. For example, state and local governments continue to tighten their belts by cutting spending and reducing payrolls in the face of ongoing budgetary pressures, and federal fiscal stimulus is being withdrawn. There is ample room for debate about the appropriate size and role for the government in the longer term, but--in the absence of adequate demand from the private sector--a substantial fiscal consolidation in the shorter term could add to the headwinds facing economic growth and hiring.

The prospect of an increasing fiscal drag on the economy in the face of an already sluggish recovery highlights one of the many difficult tradeoffs currently faced by fiscal policymakers. As I have emphasized on previous occasions, without significant policy changes to address the increasing fiscal burdens that will be associated with the aging of the population and the ongoing rise in health-care costs, the finances of the federal government will spiral out of control in coming decades, risking severe economic and financial damage. But, while prompt and decisive action to put the federal government's finances on a sustainable trajectory is urgently needed, fiscal policymakers should not, as a consequence, disregard the fragility of the economic recovery. Fortunately, the two goals--achieving fiscal sustainability, which is the result of responsible policies set in place for the longer term, and avoiding creation of fiscal headwinds for the recovery--are not incompatible. Acting now to put in place a credible plan for reducing future deficits over the long term, while being attentive to the implications of fiscal choices for the recovery in the near term, can help serve both objectives.

The Outlook for Inflation
Let me turn now from the outlook for growth to the outlook for inflation. Prices of many commodities, notably oil, increased sharply earlier this year. Higher gasoline and food prices translated directly into increased inflation for consumers, and in some cases producers of other goods and services were able to pass through their higher costs to their customers as well. In addition, the global supply disruptions associated with the disaster in Japan put upward pressure on motor vehicle prices. As a result of these influences, inflation picked up significantly; over the first half of this year, the price index for personal consumption expenditures rose at an annual rate of about 3-1/2 percent, compared with an average of less than 1-1/2 percent over the preceding two years.

However, inflation is expected to moderate in the coming quarters as these transitory influences wane. In particular, the prices of oil and many other commodities have either leveled off or have come down from their highs. Meanwhile, the step-up in automobile production should reduce pressure on car prices. Importantly, we see little indication that the higher rate of inflation experienced so far this year has become ingrained in the economy. Longer-term inflation expectations have remained stable according to the indicators we monitor, such as the measure of households' longer-term expectations from the Thompson Reuters/University of Michigan survey, the 10-year inflation projections of professional forecasters, and the five-year-forward measure of inflation compensation derived from yields of inflation-protected Treasury securities. In addition to the stability of longer-term inflation expectations, the substantial amount of resource slack that exists in U.S. labor and product markets should continue to have a moderating influence on inflationary pressures. Notably, because of ongoing weakness in labor demand over the course of the recovery, nominal wage increases have been roughly offset by productivity gains, leaving the level of unit labor costs close to where it had stood at the onset of the recession. Given the large share of labor costs in the production costs of most firms, subdued unit labor costs should be an important restraining influence on inflation.

Monetary Policy
Although the FOMC expects a moderate recovery to continue and indeed to strengthen over time, the Committee has responded to recent developments--as I have already noted--by marking down its outlook for economic growth over coming quarters. The Committee also continues to anticipate that inflation will moderate over time, to a rate at or below the 2 percent or a bit less that most FOMC participants consider to be consistent with the Committee's dual mandate to promote maximum employment and price stability.

Given this outlook, the Committee decided at its August meeting to provide more specific forward guidance about its expectations for the future path of the federal funds rate. In particular, the statement following the meeting indicated that economic conditions--including low rates of resource utilization and a subdued outlook for inflation over the medium run--are likely to warrant exceptionally low levels for the federal funds rate at least through mid-2013. That is, in what the Committee judges to be the most likely scenarios for resource utilization and inflation in the medium term, the target for the federal funds rate would be held at its current low level for at least two more years.

In addition to refining our forward guidance, the Federal Reserve has a range of tools that could be used to provide additional monetary stimulus. We discussed the relative merits and costs of such tools at our August meeting. My FOMC colleagues and I will continue to consider those and other pertinent issues, including, of course, economic and financial developments, at our meeting in September and are prepared to employ these tools as appropriate to promote a stronger economic recovery in a context of price stability.

Let me conclude with just a few words on the longer-term prospects for our economy. As monetary and fiscal policymakers consider the appropriate policies to address the economy's current weaknesses, it is important to acknowledge its enduring strengths. Notwithstanding the trauma of the crisis and the recession, the U.S. economy remains the largest in the world, with a highly diverse mix of industries and a degree of international competitiveness that, if anything, has improved in recent years. Our economy retains its traditional advantages of a strong market orientation, a robust entrepreneurial culture, and flexible capital and labor markets. And our country remains a technological leader, with many of the world's leading research universities and the highest spending on research and development of any nation. Thus I do not expect the long-run growth potential of the U.S. economy to be materially affected by the financial crisis and the recession if--and I stress if--our country takes the necessary steps to secure that outcome. Economic policymakers face a range of difficult decisions, and every household and business must cope with the stresses and uncertainties that our current situation presents. These are not easy tasks. I have no doubt, however, that those challenges can be met, and that the fundamental strengths of our economy will ultimately reassert themselves. The Federal Reserve will certainly do all that it can to help restore high rates of growth and employment in a context of price stability

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Nothing To See Here's picture

What? Bernanke says that the Fed is 'a bunch of tools'? Can't agree more with helicopter Ben this time!

B9K9's picture

     You fight with the strength of many men, Sir Knight.
     I am Arthur, King of the Britons.
     I seek the finest and the bravest knights in the land to join me in my court at Camelot.

     You have proved yourself worthy. Will you join me?
     You make me sad. So be it. Come, Patsy.
     None shall pass.
     None shall pass.
     I have no quarrel with you, good Sir Knight, but I must cross this bridge.
     Then you shall die.
     I command you, as King of the Britons, to stand aside!
     I move for no man.
     So be it!
     Aaah!, hiyaah!, etc.
     [ARTHUR chops the BLACK KNIGHT's left arm off]

     Now stand aside, worthy adversary.
     'Tis but a scratch.
     A scratch? Your arm's off!
     No, it isn't.
     Well, what's that, then?
     I've had worse.
     You liar!
     Come on, you pansy!
     [ARTHUR chops the BLACK KNIGHT's right arm off]

     Victory is mine!
     We thank Thee Lord, that in Thy mer--
     Come on, then.
     Have at you!
     Eh. You are indeed brave, Sir Knight, but the fight is mine.
     Oh, had enough, eh?
     Look, you stupid bastard. You've got no arms left.
     Yes, I have.
     Just a flesh wound.
     Look, stop that.
     Look, I'll have your leg.
     [ARTHUR chops the BLACK KNIGHT's right leg off]

     Right. I'll do you for that!
     You'll what?
     Come here!
     What are you going to do, bleed on me?
     I'm invincible!
     You're a looney.
     The Black Knight always triumphs! Have at you! Come on, then.
     [ARTHUR chops the BLACK KNIGHT's last leg off]

     Oh? All right, we'll call it a draw.
     Come, Patsy.
     Oh. Oh, I see. Running away, eh? You yellow bastards! Come back here and take what's coming to you. I'll bite your legs off!

MillionDollarBonus_'s picture

Professor Bernanke is my hero! I will never forget this!

TradingJoe's picture

More Carrot, No Money, was right to go all in Long Carrot Futures :)))

Racer's picture

The ChairSatan is a tool

zerohandle's picture

EURO getting beat up, how is the compression trade looking?

digitlman's picture

Bernanle can go fuck himself.

whstlblwr's picture

Can't he be stopped? Class action lawsuit. He just lying on question answer about dollar value. We need to sue fucker.

alien-IQ's picture

I think Bernanke should take Simon Black's advice and seek employment in the middle east.

rosiescenario's picture mean he isn't already so employed by a certain country there? I thought he was aiding and abetting the doing of "God's work"....

RobotTrader's picture




The mighty, mighty U.S. Dollar is soaring on this news.

Wow, perhaps Bernanke needs to start printing in overdrive, that will surely send the dollar to heights now reached by the Yen.

Man, with the 10-yr. tanked to 2% and the dollar surging, the green light is now burning brighter than ever for him to outright monetize and take over the entire U.S. mortgage indusrty.

SheepDog-One's picture

What 'news making the dollar soar', you moron? You mean the Euro collapse? 

I Told YOU So's picture

keep posting robo, they just dont get your brilliance here.

ElvisDog's picture

It makes sense for the dollar to soar. Duplicating his previous Jackson Hole speech means no new goodies coming from the Fed in the near-term anyway. Part of the dollar's decline was the expectation of continued and expanding Fed intervention.

Cone of Uncertainty's picture

Bernanke, go eat a dick bitch.

SheepDog-One's picture

Bernanke has ONE tool box, crammed full of hammers.

There will be no further stimulus, it is polled as the most unpopular thing among the public today with 80% saying it is 'bailouts for the rich' and theyre right.

FED painted into a corner here big time. There will be no QE3 trillions which accounts for the DOW 9,800-12,700 move already priced into the markets.

Firearms bullets coins and beans.

Helix6's picture

Re: "[further stimulus]... is polled as the most unpopular thing among the public today with 80% saying it is 'bailouts for the rich'"


TruthInSunshine's picture

Ben S. Bernanke, King of the Ph.D shit theory mouthbreathers. Anyone listening to Bernanke speak should wear a full Hazmat suit, because they're nearly guaranteed to be exposed to toxic effluent, the likes of which few men in history have spewed forward from every hole, orifice and pore in their body.

You're doing a heckuva job, Bernank. Why don't you go and print some more FRNs, since Mark Faber is correct inasmuch as that's the only thing that your reptilian brain knows how to do. You managed to break all markets, you Harvard/MIT genius.

SheepDog-One's picture

He's carrot and sticking this shit with a song and dance routine Ginger and Fred couldnt top.

BurningFuld's picture

Never attribute to malice what can be explained by stupidity.

Poetic injustice's picture

It's not malice or stupidity, just deliberate actions as per script.

Cdad's picture

T plus 9 cents on the Dixie to the macro sell signal...when the studman USD breaks through the door in Lloyd Blankfein's office with his lube in hand, Bidless following with a hand held digital camera, ready to make niche adult films to be released later today on the Internet.


Rinpocheinp's picture

Reads fine in translation:

Money is the IOU. Whether it is gold and silver, or bill, or electronic money, in essence, are the IOUs.

Assuming the world, only two people, the old couple and the old Chinese couple United States, began their two all of the dry, self-sufficiency. One day, Americans caught four fish, the old Chinese arrest of eight birds, birds taste Americans want to try the old Chinese seafood products like products, they exchanged the old United States with 2 fish for the old China of 4 birds. After that they often exchanged.

One day, Americans lazy, not to catch fish, at home Shuiliaoyitian. Night, the old China catch a bird home, Americans do not eat, they find the old China by birds. Americans looking for a bark, and to write on: 2 fish. To the old Chinese home, the old Chinese saying: "I exchange for you 4 birds, but today I was sick and did not go to catch fish, I give you 2 fish of IOUs." The old Chinese saying: "This to say. "accept the IOUs, the 4 birds to the Americans. Americans go back to eating flattered.

Americans have tasted the sweetness of sleep at home the next day day, night and took 2 fish of IOUs to exchange for 4 birds. Exchange is completed, the Americans were the old Chinese saying: "After the IOUs do not write on the 2 fish, and this is my IOU to fight Americans, and later wrote two dollars on it." The old Chinese readily agreed. After the IOUs to use dollars that so day after day.

Is in accordance with the principle of commodity exchange, commodity exchange is barter, goods for goods, rather than money and material exchange. Americans to spend money for the old Chinese bird, the old China to get the money, this is not the whole process of exchange of commodities, only half the process. Old China hands of Americans' money, it shows that Americans still owe the old Chinese fish. So, money is the essence of IOUs. The old Chinese Americans get money to buy the fish, the whole process of commodity exchange until the end. This process is for Americans to use the old Chinese fish, birds. If China still does not spend money older Americans enchant the bird, then Americans accounted for a great deal, and freeload old Hua. But here, Americans will try to always keep the old Chinese money to redeem him in kind.

Day long, the old China hands have accumulated a lot of money. Americans fear that the old China to exchange in kind, on the old Chinese saying: "Now we are transactions between you is a surplus, the surplus is very beneficial for you, you have to be maintained." The old China was very pleased, could not bear kind of exchange. Thought up on the old Chinese ask: "You are deficit, since the deficit negative, why do you always keep the deficit it?"

After another day, not enough Americans feel that 4 birds to eat, write three dollars, to the old Chinese family bought six birds. Americans eat the day with six birds, the old China but only 2 birds to eat, hungry hungry. But the thought of the hands of so much money to house Americans can buy many, many things, enough for their retirement, and will feel worth it.

Previously, the state of Qin to use its authority, often to countries to develop a traitor. Foreign nobility to the state of Qin to the Qin to educate them: "In the future your country as long as the Qin and fight, you will cede territory, which your country is most favorable." The nobility, after returning to their country because it is the students back from the state of Qin, learning and ability, are appointed positions. Later, Qin's soldiers as long as a pressure or a crusade against the letter arrived, these countries will immediately cede territory.

Today, the United States, this "surplus advantage" theory to be international students to the world, have become a mainstream economic theory, countries in the United States by printing money to buy things, like all countries, like guarding the dollars keep the baby, bear flowers, the United States secretly proud dead.

Then, after a long period ofTime, The old China the United States to find the old moth-eaten some of his money, and think of Americans at home these IOUs redeemed in kind. Americans said to him: "The money is wealth, how you can easily spend it? You are asking too much and you do not worry I can not afford to redeem you, I am rich, you see I eat and drink, Which will lead to better than Hello? "said as he pointed to the house of a pocket a pocket bird meat, said:" You see I have so much wealth, you worry about? I am fully able to afford to redeem you, do not you worry, I Take my personality swear, I do not breach of contract. but what do you, you are a pauper, every day, hungry to play straight Akira, I looked at all the poor. As the saying goes, the poorer the more depends, I'd worry about your reputation then. "Americans finished, I suddenly felt not good, but immediately corrected himself and said:"

Of course, you are just on the surface was poor, in fact you are very wealthy, you have so many foreign exchange reserves. You see what I have, due to a ass debt. I feel you on my backWorldThe first serious threat to the status of the rich do. "Old China was what he said, as a drink twenty-two Laobaigan, suddenly feel Yunyunhuhu of the old United States has said:" This shows you which road to take. In the future you have to continue along this road, trade between us is mutually beneficial. We want to shared prosperity. "Old China grateful, Mangxiang old U.S. position:"

Rest assured, I am a responsible person, definitely not promises! "Old China hands of the United States pointed to the old money, said:" Since the money was moth-eaten, and I will give you re-write a bond it. I suppose I borrow your debt, pay you generous interest, pay back the money after one year. "Old Chinese one, the cost-effective, the change of a bond back, and their trading and normal to continue.

Finally one day, a little wake up the old China. He thought: "What Americans live every day, this guy not do, eat and drink, all me, still moist than I can live, I get nothing more than bark, while he was always by all means to compile the various theories will not let me redeem in kind, if not converted, it can only fire when the wood. Well, not later, and he traded. "

Night, the Americans and took three dollars to buy a bird. Old China not to him. Americans say: "If you do not sell to me, I would have starved to death, then your hand dollars and bonds on all scrap it. You know, save me now is to save yourself." Listening to the old China, last resort, and he had to deal.

What Americans have to continue trading and not trading? China Chousi old, but had to pretend in front of his wife, a very wise way.

Blink of an eye a year later, the wife pulls out the old Chinese Americans goes bonds, urging China to the old debts. China is also a great hold upon their old dollars, so the way to his home Americans buy more stuff. Reduce the fear of old China's foreign exchange reserves, do not want to buy something, the couple began to argue for that matter. Old Chinese wife shouted: "do not buy things, leaving what Piyong these dollars? The future you are not allowed then to his dollars, but also allowed you to be his bond again!"

Sound spread next door, Americans scared to death. His wife said: "I would not afraid of them to collect debts, paying the money he wants to make me, how many how many. To be honest, I do not need to borrow them, no matter what to buy, I pay for directly making money on the line. In fact, whether I go to the bond issue, or dollars, in essence, are the bonds, are the kind that I owe people, while the reason I want them to borrow more money, is acting, let them know that I am very careful of making money, not easily making money, I do not buy things made in order to maintain the trust of their dollars, I suspect that I fear most is that they create chaos money, make money to buy something, do not trust dollars, do not accept dollars. the next thing I fear is that they take dollars in exchange for real so we should not hollowed out, we can not account for their cheap white and we have to find a way so that they continue to believe and accept dollars, does not compel them to redeem in kind. "

So the couple whispered for a while, and then loud noise from the frame to. Americans wife loudly scolded the Americans: "You do-nothing, you know eat and drink, I will let you save money you do not save, all debts owed, which is also what means, my good God, this day I have, however, and I was hanging to go! "Americans are loudly scolded his wife:" You Saozhou Xing, blame me know, you whitewash every day, wearing a red green, I will let you save money you listened to? Do you know me every day to borrow, on which I borrow? Man you old Chinese family, it will be called housekeeper, people and more affluent, more money was moldy. stalls you this woman, I count down the mold of eight life and I not live, I have to go hang! "

Old Chinese couple next door could hear clearly, wants to: "You must not die, you die, we ask who to go to debt! If you had money to spend on the hurry to take it, by how much there is absolutely no restrictions, to save you is to save ourselves. "finish like the old China, it said to his wife:" They are too poor, can not let them down so they embarrassed to borrow, we take the initiative to send go. there is a home birds, but also give them it. "nodded the old Chinese wife.
So the couple picked up a big hold dollars and a bird remaining at home, go home to Americans, said to them: "You should give it emergency." Then the couple turned away.

The old couple behind the United States, looking at their backs, turned the music days. Americans, said: "This life and death of the poor fool!

docj's picture

All I can see is "blah blah blah"

RobotTrader's picture



Bernanke says there is no inflation worries.

I agree.

SheepDog-One's picture

Thats because youre a moron.

James's picture

RoboTrader says -

Bernanke says there is no inflation worries.

I agree.

SheepDog-One says -

Thats because youre a moron.

I agree

tickhound's picture



ie: "These are not the droids you're looking for..."

"These are not the droids we're looking for..."

"Move along"

"Ok, move along"

FEDi mind tricks don't work on me

alien-IQ's picture

of course you're a clueless dickhead.

english serf's picture

its coming. Here inthe uk they claim its 4.5%, when its really 6-10%

YesWeKahn's picture

you can suck his brown ass, i agree.

warchopper's picture

Bravo! His policies have been working sooooo well. Let's continue them!

Dick Darlington's picture



Ahahahaa, oh boy, the man with the beard is too funny.


caerus's picture

stocks just got the "bernank spank"

Comay Mierda's picture

there wont be (B) more easing until (A) another major american bank (C) fails...

jdelano's picture

EUR almOst on Point thEre

baby_BLYTHE's picture

No mention of the "tail risk" gold is clearly signaling. Perhaps the Chaircreature has a bit more to be worried about than his "transitory" inflation.

Dick Darlington's picture

The man with the beard doesn't understand gold. Tradition, remember? ;-)

IAmNotMark's picture

Dr. Paul :  "Is gold money?"

Dr. Ben : "No.  Gold is not money."

Either he's lying through his teeth or he really does have no clue.

raki_d's picture

ZH has to correct this post:

To inaccurately say Rick said Friedman was idiotic, instead of what he really said ('your answer is idiotic', in response to Friedman's "Your question is idiotic"), makes Rick look like a rude guy (which he isn't).
So there is a difference, it's more than semantics.  
And when you put up a transcript, it should be accurate(it was in every other instance), so I doubt this is a case of sloppy editing).
It's misquoted in both the title of this post and the transcript, it clearly was intentional (probably to be more provocative).  
For a blog that prides itself on truth telling, that's a double standard, and unsettling.

Robslob's picture

Raki_d you will make a fine politician...?

There are more spelling errors on ZH posts than gold ounces in the West Point vault....wait, maybe that isn't a good comparison...

raki_d's picture

It may not be gold if its not a spelling error... How about this comparison ?

WSP's picture

Civility is overrated and that is our problem---being nice to these criminals.  I think saying the guy was an "idiot" (even if he did not say that) is playing it quite conservative.  Friedman is a treasonous, lying, criminal kleptocrat.  How about that?

Belarus's picture

"Range of tools," you mean like the "other" column on the Fed's balance sheet where no good American can know the details of? Or plain vanilla duraation extension? Or sending overnight funding down to .oo? Or waving an empty gun? 

You decide.

TruthInSunshine's picture


"Range of tools,"...


It should be Reign of Tools, with The Bernank as Chief Tool.

King_of_simpletons's picture

Ah good to know that things are bad and that the tools (the fed) has tools.