This page has been archived and commenting is disabled.

Dallas Fed: Why We Must End TBTF Now!

Tyler Durden's picture





 

"We're on the road to economic stagnation" is how the Dallas fed describes the status quo as Too-Big-To-Fail (TBTF) is forcing the US economy to suffer from the perpetuation of perverse incentives. We want to get back on the path to prosperity and they note that there are some things monetary policy can't fix (well we know that already) but in this case they demand an end to the TBTF paradigm now. In an excellent presentation of the costs and benefits of ending TBTF (defined rather tongue-in-cheekily: The unwillingness of a government entity to abruptly close an insolvent company and force its creditors to sustain sizable losses due to the company’s size, complexity, interconnectedness and general significance within the financial system), the ignorance of the process of creative destruction is critical as they note that a sick (or failed) bank cannot lend: "Undercapitalized banks gum up the working of the interdependent moving parts of the monetary policy engine". Dismissing the Dodd-Frank Act as a distraction that doesn't buttress market discipline, they summarize their guiding principles as: End banking oligopoly power; punish failure quickly; and change the do-or-die (M.A.D.) decision-making paradigm; ending with the threat promise suggestion that Restructuring isn't so radical, firms do it all the time.

How the Dallas Fed sees the world with TBTF...

 

Why TBTF is impacting everyone adversely...

And why we shoould feel bad for the Fed...(or not)

Full Presentation below

Dallas Fed

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 05/01/2012 - 12:02 | Link to Comment surfsup
surfsup's picture

They will always need artificial sustention with this system, period

 

 

What is "artificial sustention?"

Given that only legitimate credit-worthiness justifies the perpetual lending necessary to maintain a vital circulation subject to interest, and further given that the perpetual re-borrowing of interest and principal as subsequent debt (principal) inherently multiplies the sum of debt in proportion to a vital circulation... a system subject to interest inherently terminates itself by eventually engendering a sum of debt which exceeds the capacity of the circulation to service it.

 

 

Because usury can only prey upon a living host, in the late stages of this finite lifespan therefore, the intention to perpetuate usury is compelled to resort to artificial means for temporarily sustaining an interest-bearing monetary system beyond its legitimate capacity to sustain itself against its own, inherent, terminal multiplication of debt. Effectively then, artificial sustention is to break the rules of the system so that sufficient, unaccountable streams of money infuse the system with some capacity to continue servicing private debt, while of course the same unaccountable stream of circulation is only consumed in the continued servicing of private debt, to the sole benefit of the perpetrators of the imposed system. While artificial sustention artificially extends the lifespan of the system beyond the terminal conditions it imposes upon itself, artificial sustention ultimately comprises at the same time, a way both to extend peak volumes of usury and to publish money almost directly into the pockets of perpetrators and servants tied to their purse strings.

 

According to the designs of usury, the perpetually processed money of usury comes into existence upon virtually costless creation, whereupon it is loaned into circulation at falsely asserted risk, which purportedly justifies the initial and perpetually multiplying costs of interest, manifested in the escalating, eventually terminal indebtedness engendered by maintaining a vital circulation.

While the real risk to the purported central bank is no more than the publishing costs of the currency, and while this is typically recouped at great unearned profit from the first payment, hypocritically nonetheless, a necessary facade of diligence exists, which, to certify the purported risk that an incredibly profitable monetary obligation be fulfilled, establishes the credit-worthiness of the debtor, who is uniformly denied credit should they fail to meet the rising costs of servicing the multiplying sum of debt. While multiplication of debt by interest itself makes it ever more impossible to meet periodic principal and interest obligations engendered by the ever greater sums of debt, denial of credit — or due, vital circulation — upon failure to meet the artificially lofty standards of credit-worthiness, drives the subject sea of debtors to produce ever more, to borrow ever more, to service such sums of debt that they receive ever less of their own production.

As all this multiplies the sum of debt in proportion to a circulation, in the end of the finite lifespan of a monetary system subject to usury, the debtors struggle merely to tread water, as the costs of servicing the multiplying sum of debt come to exceed them. At the threshold of systemic failure under these maximum loads of usury, artificial measures can temporarily extend the lifespan of the failing system — with the notable and substantial motivations being to evoke a facade that there is no culpability, to perpetuate the necessary false impression (in the face of works such as this) that any magnitude of debt is magically sustainable, and not only to sustain usury, but to sustain usury across a period marked predominantly by peak volumes of unearned taking by usury.

Because the terminal stages of usury destroy the credit-worthiness of private subjects to maintain a vital circulation, if some other means of replenishing the circulation were not devised, the system would deflate in its natural manifestation of collapse, as the subjects paid their last revenue out of circulation, incapable of borrowing further. Necessarily then, artificial sustention involves replenishing a circulation by accumulating further debt which the subject system is in fact unfit to service. In other words, in the final stages of usury, usurers are compelled to issue credit which the central banking system cannot truly hope to recoup directly from the debtor. Instead, this stream of unaccountable credit sustains the vaster sum of private debtors to service their exceeding sum of debt, that the system can for the while continue.

Artificial sustention therefore is a pouring of money into the system as necessary to maintain a deception of seeming vitality in the face of an artificially extended period of maximum volumes of usury.

http://www.perfecteconomy.com/pg-artificial-sustention.html

Tue, 05/01/2012 - 12:07 | Link to Comment engineertheeconomy
engineertheeconomy's picture

Ask my children if "Usury is payable?" and they will laugh at you deeply and fully, deriving immense pleasure

The question is not how they're going to dismantle the european union, the question is how we're going to dismantle the United States

Which state has the most gold per capita?

Thats the state where I'm going

Tue, 05/01/2012 - 12:25 | Link to Comment carbonmutant
carbonmutant's picture

You might want a place with a state-owned bank...BND

Tue, 05/01/2012 - 14:37 | Link to Comment tomRapheal
tomRapheal's picture

Little OT but this is awesome:  Someone telling the Fed whats up.  He calls upon them to "leave the building"

http://mises.org/daily/6028/New-York-Fed-Leave-the-Building

Tue, 05/01/2012 - 16:44 | Link to Comment mkkby
mkkby's picture

Dallas Fed vs NY Fed is precisely Wall Street vs the entire world...  All the people in the world vs all the resources in the world.

Tue, 05/01/2012 - 11:57 | Link to Comment The trend is yo...
The trend is your friend's picture

close your eyes and buy

Tue, 05/01/2012 - 12:00 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

Joe Schumpeter, a child's doodle and a chart on the 'complexity' of decisions. That had something for everyone.

What can one really say? I laughed, I cried, I reached for the rope.

Tue, 05/01/2012 - 12:19 | Link to Comment vast-dom
vast-dom's picture

the doodle shows a road to prosperity....but before you can turn you need a great econ reset and that isn't in the picture.....or continue along status quo and get an even worse econ reset -- this is the problem with choices and pictures -- it seems the price is never truly factored in, even from those that want the real change.....oh well, pics....

Tue, 05/01/2012 - 11:58 | Link to Comment francis_sawyer
francis_sawyer's picture

Who put the purple micro dot in the Dallas Fed's coffee?

Tue, 05/01/2012 - 12:04 | Link to Comment SilverTard
SilverTard's picture

Even pathological liars eventually know when the "gig is up".  Now is time for the thought in their heads "hey, maybe I can still get out of all my lies. Hummm, how can I unwind this and get away with the least amount of personal damage."

 

Tue, 05/01/2012 - 12:34 | Link to Comment SemperFord
SemperFord's picture

Agreed, so in the future(probably for some political reason) they can say "Hey I wanted to end the TBTF policies"

Tue, 05/01/2012 - 12:43 | Link to Comment AnAnonymous
AnAnonymous's picture

Even pathological liars eventually know when the "gig is up".

______________________________________________

That is not that. Too inclusive. US citizens would like to sell US citizenism as all inclusive stuff for things like that, but it is.

The gig is up for some segments of the US citizen population.

The gig will keep on for quite some time for the rest.

Those excluded would like the gig to stop for everyone else because it was part of the US citizen group covenant from the start. So they thought.

But the gig will keep going. And US citizens who are no longer welcomed at the party will be invited to see if they can gig up elsewhere.

Tue, 05/01/2012 - 12:51 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

AnAnonymous said:

That is not that.

Easy for that you to be saying now is.

That is not that, for that is this. And because this is that, this is not this.

Chinese citizenism frog gigging, up to the stars and beyond.

 

Tue, 05/01/2012 - 12:02 | Link to Comment LawsofPhysics
LawsofPhysics's picture

How about simply prosecuting the the fucking fraud and letting bad business models and bad leadership fail for a change.  Of course, once again the issue of energy and the role of oil in the world economy is ignored.  FAIL.

The reason Nature works so well is because bad behavior has consequences, not so much in the human financial ponzi.  In the latter, bad behavior is rewarded.

Tue, 05/01/2012 - 12:16 | Link to Comment A Nanny Moose
A Nanny Moose's picture

That would require those government proscutors to get off their fat pension collecting, short timer asses and do their fucking jobs...wouldn't it?

Tue, 05/01/2012 - 12:19 | Link to Comment EscapeKey
EscapeKey's picture

Before you can address that, you need to address the revolving doors between the Treasury / Federal Reserve / investment banks / enforcers / rating agencies.

But obviously, since their tentacles reach into the White House as well, that's easier said than done.

Tue, 05/01/2012 - 12:22 | Link to Comment OldE_Ant
OldE_Ant's picture

lol.  you have to be kidding, prosecute my best buddy who I learned how to be a multimillionaire with?!  Please,  this is the good old boys club and new members are by INVITATION only. (we arn't invited)

This is the new world of how we are supposed to treat others how 'they' want to be treated.  A new world of 'if it looks and tastes good, IT MUST BE GOOD'.  Where failures must be assisted, risen up until the FOOLS are KINGS.  Where there is a fabulous 'BLUE' pill that will fix everything in a jiffy. (Heck we even have a rainbow of colors to satisfy all your sensory needs)

That same world where mean horrible evil nature is chopped into tiny little bits and processed into soylent green for everyone to put up as art, burn as fuel, or eat as yummy green meat cakes.  And lastly where the only law is "Finder keepers, losers weepers (until the next govt program rewards the losers)".   It doesn't matter that I stood on your head, with a loaded 9mm in your face until I found your wallet, RIGHT?!  Your insured?  RIGHT?  

You have been taking your blue pill intervals RIIIGHT!!!!

lol.  Really.   We have been chewing into our societal reserves so hard and fast now that even the slightest failure is TBTF, which means nothing will change, until it all does.  Printing money does not make an economy, having a war and destroying 1/2 of all buildings etc does not make a good economy.   Right now we really don't have markets, governments don't represent people, our economies suck, leaders don't have a clue what leadership means (nor any balls to stand up for anything) and not a lot is good.   The problem is nothing has gotten bad enough yet (we are still running on the fumes of the past few centuries).  Even a dead car at 70 will roll a good 1/4-1 mile before it stops.

Ooops.  Sorry. It's time for my Blue pill.

Tue, 05/01/2012 - 13:49 | Link to Comment ArkansasAngie
ArkansasAngie's picture

You know how we used to put in prison guys who came up with ways of defrauding the customer on the bases of taking the rounding error and pocketing it?

 

Today it is legal and in many ways encouraged.  The Fed is intentionally allowing banks to make billions so that they can slowly build capital through inflation being directly into them and not the rest of society … aka … a backdoor bailout that increases their ownership in proportion to those not receiving the bailout.  This is good?  How?

 

Break up the banks ... now is a good day.

Tue, 05/01/2012 - 12:02 | Link to Comment Milton Waddams
Milton Waddams's picture

Mmmm... What we need is an alien invasion, to introduce more credit worthy borrowers. Only then can the sick/failed banks take on prudent risk.

Tue, 05/01/2012 - 12:04 | Link to Comment GMadScientist
GMadScientist's picture

Would 100M economic refugees from the effects of The Bernank's monetary policy overseas with unsecured lines help?

Bring us your poor huddled masses, bitchez.

Oh,...you meant space. ;)

Tue, 05/01/2012 - 12:14 | Link to Comment j0nx
j0nx's picture

Already done. Every able-bodied Mexican or Central American male is already here in the states. They sold them all houses during the boom but now all of them have lost those homes and are destitute renters living 10 to a house in most blue collared communities along with the section 8 gimmedats. That worked out real well for us as a society didn't it...

Tue, 05/01/2012 - 12:02 | Link to Comment GMadScientist
GMadScientist's picture

Purge the blackholes or forever succumb to their (depra|gra)vity.

Tue, 05/01/2012 - 12:02 | Link to Comment ElvisDog
ElvisDog's picture

Fuck you, Dallas Fed. This is merely the same old "bad cop" bullshit that comes out every so often in a pathetic attempt to convince us that the Fed is balanced and looking out for the interests of the common man. How fucking stupid do you think we (the common men) are? That same Dallas Fed will fall into line and vote for more QE, more ZIRP forever when the time comes.

Tue, 05/01/2012 - 12:05 | Link to Comment SmoothCoolSmoke
SmoothCoolSmoke's picture

Could not agree more Sir.

Tue, 05/01/2012 - 12:06 | Link to Comment SilverTard
SilverTard's picture

LOL... You think?  ;)

 

Tue, 05/01/2012 - 12:57 | Link to Comment mendigo
mendigo's picture

You can tell when they are lying...

The issue is not TBTF rather is a government run amok and controlled by the actors that it is supposed to oversee. We should be greatful the we have these bureaucrats to act on our behalf and run these compnies and see that our children are properly educated and then offer them gainful emplyment hunting terrorists.

Tue, 05/01/2012 - 12:03 | Link to Comment Rathmullan
Rathmullan's picture

A glimmer of hope. Fisher for Fed Chairman. Can bubble boy ben, dudley and evans.

Tue, 05/01/2012 - 12:05 | Link to Comment Dr. Engali
Dr. Engali's picture

 

"We're on the road to economic stagnation"

 

Seriously? More like we are on the road to perdition.  Sometimes I think they throw these little tid bits like end the "too big to fail" out there just to make us think there is  semi sane person on the committee.

Tue, 05/01/2012 - 12:44 | Link to Comment espirit
espirit's picture

History has shown that the "sunk cost fallacy" ends in economic collapse.

You kick the can until it reaches the cliffs' edge.

Tue, 05/01/2012 - 13:11 | Link to Comment GCT
GCT's picture

The next presentation will be blame the politicians.  All the dicks want to do is pass the monkey around.  Next stop congress.  They are all lairs.  They will do whatever it takes to keep the status quo.  The Dallas Fed is setting the stage for the next frigging lie. 

Tue, 05/01/2012 - 13:28 | Link to Comment Debeachesand Je...
Debeachesand Jerseyshores's picture

Speaking of "the cliffs edge",we are heading for the "cliffs edge" on Dec 31st 2012 if the dipshits in Congress and the White House don't do something about the Bush Taxcuts sunsetting etc on that date.

Than the SHTF for sure.

Tue, 05/01/2012 - 12:05 | Link to Comment SmoothCoolSmoke
SmoothCoolSmoke's picture

Lying...... the new black.

Tue, 05/01/2012 - 12:07 | Link to Comment EscapeKey
EscapeKey's picture

Yes, let's end the TBTF now!

The Fed itself is surely TBTF, so that must be wound up. And one could make the same argument with regards to currency monopolies as well.

Tue, 05/01/2012 - 12:07 | Link to Comment Milton Waddams
Milton Waddams's picture

On second thought this looks like thinly veiled political propaganda. Note that inthe first image the status quo is slightly left of center while the road to prosperity takes a hard right turn. This is not by accident, IMO.

Tue, 05/01/2012 - 12:09 | Link to Comment HyperLazy
HyperLazy's picture

When the Dallas FED starts issuing currency without debt interest, then I will believe them. Otherwise, this rings of Red Herring.

Tue, 05/01/2012 - 12:35 | Link to Comment Widowmaker
Widowmaker's picture

The Dallas Fed? 

Who the fuck cares about the Dallas Fed - they are just for show.  

"Oh look daddy, the Dallas Fed is giving away free ponys to anyone that swallows the NY Fed load."

What's next, the Kansas Fed gonna tell it how it REALLY is!?

The Fed IS institutionalized fraud -- 100% money-monopolist bullshit.

Tue, 05/01/2012 - 12:38 | Link to Comment Bay of Pigs
Bay of Pigs's picture

Anyone who listened closely to Richard "Dick" Fisher yesterday knows he is a liar and completely full of shit.

He called Jamie "Legs" Dimon, "a good guy".

LOL. 

Tue, 05/01/2012 - 12:10 | Link to Comment j0nx
j0nx's picture

Good FED bad FED. Scammers, all.

Tue, 05/01/2012 - 12:21 | Link to Comment Eric L. Prentis
Eric L. Prentis's picture

I love the Dallas Fed for their 2011 Annual Report.

 

Choosing prosperity over TBTF is a no brainer, but difficult to say when you are part of the status quo.

Tue, 05/01/2012 - 12:37 | Link to Comment Widowmaker
Widowmaker's picture

They only want to close the barn door now that all the horses have been long gone for 4 years now, and record bonuses paid a few times over.  Robbing widows and orphans is the Fed solution to criminal banking.

END THE FED!

Tue, 05/01/2012 - 13:15 | Link to Comment Bay of Pigs
Bay of Pigs's picture
"Nobody has any more integrity than Ben Bernanke. He is like my brother" Richard "Dick" Fisher (direct quote today on BNN in Canada) The FED good cop blames Congress for all our problems. No doubt Dick...
Tue, 05/01/2012 - 12:25 | Link to Comment MFL8240
MFL8240's picture

Hahahaha!!  End it now after you gave these fucking criminals 5 Trillion tax payer dollars.  Give me a break!

Tue, 05/01/2012 - 12:25 | Link to Comment BandGap
BandGap's picture

They stole all that taxpayer money and now this steaming pile is presented as an "us against them" situation? Really? How many banks in the Dallas Fed district took money? Are they all going to give it back if they "fail"? They threatened banks that they had to take the money. They have set up conditions for a Federal Bank by choking the living shit out of the "too small to give a shit about" banks. the ones left standing are the ones that robbed us. Fancy that.

Help me out, who elects the Fed governors? NO ONE. These idiots treat us like we're too stupid to figure this shit out? Steal from us and then point at others in their group as thieves?

Unwind, yes, unravel even.

Tue, 05/01/2012 - 12:25 | Link to Comment semperfi
semperfi's picture

PROPAGANDA - lip service - scripted devil's advocate bullshit for the unwashed masses who still think the authorities are legitimate.

Tue, 05/01/2012 - 12:30 | Link to Comment jayman21
jayman21's picture

What are the banks in Texas that would benefit from the Dallas Fed shooting its mouth about NYC banks or Charlotte banks?  Trying to follow the money and corruption folks.

OR....It could just be bread and circus for smart people.

Whatever they are up to cannot be good and will not end the fractional reserve system.  That is the only thing to do, the other issues will sort themselves out.

Tue, 05/01/2012 - 12:31 | Link to Comment LawsofPhysics
LawsofPhysics's picture

With numerous energy resources and cheap labor already in place, I don't think Texas really gives a shit.  Texas will do its own thing soon enough.  A funny thing happens to federal governments when states/provinces figure out that the Fed is all bark and no bite.

Tue, 05/01/2012 - 12:39 | Link to Comment AnAnonymous
AnAnonymous's picture

A funny thing happens to federal governments when states/provinces figure out that the Fed is all bark and no bite.

_____________________________________________

Sheeple are everywhere. If only they would open their eyes and see...

US citizens are good people deep inside but they are misled by a heartless, selfish elite etc...

A bit like Peter Schiff's pulling the plug story back in the 2008s.

One day, all people around the world will figure out what scam the USD is and will pull the plug off.

Delay can not be because US citizens, the provinces, states and the rest know well they have the fairer deal possible while being under the umbrella of the federal government.

Tue, 05/01/2012 - 12:59 | Link to Comment The Alarmist
The Alarmist's picture

Nah, we'll all join you and flock to the RMB and the glories of Chinese Citizenism.

Tue, 05/01/2012 - 13:06 | Link to Comment AnAnonymous
AnAnonymous's picture

Well, as chinese citizenism is just fantasy invented by US citizens as they can not cope with the realities of US citizenism...

Tue, 05/01/2012 - 13:42 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

Ha, hahaha, ha, made me laugh.

US citizenism is just fantasy invented by Chinese citizenism citizens as they can not cope with the realities of Chinese citizenism...

 

Tue, 05/01/2012 - 12:30 | Link to Comment Buzzworthy
Buzzworthy's picture

"Concentration intensifies the impact of mistakes"

This is true for the concentration of political and military power in the federal government as well.  The reason for a federated system of states is to strengthen the whole.  When power is too concentrated it actually weakens the ability of a system to withstand shocks.

Tue, 05/01/2012 - 12:44 | Link to Comment Widowmaker
Widowmaker's picture

Great comment.

Concentration also dramatically increases the propensity of institutionalized crime, fraud, incompetence and self preservation by an order of magnitude.

It's no coincidence that Fed Inc is where all the systemic risk is concentrated, all the fraud rewarded and failure unpunished.

They are to be blamed for cataclysmic undermining of every individual in the USA by corporations for corporations.

Tue, 05/01/2012 - 12:38 | Link to Comment overmedicatedun...
overmedicatedundersexed's picture

until the jails are full of these leaders of finance..the economy can not regain health..when the system itself is corrupt the corrupt are kings. every single person at the fed, the treasury, the justice dept and most of congress and the judges are corrupt if not by actions then by in action.

Tue, 05/01/2012 - 12:42 | Link to Comment SemperFord
SemperFord's picture

And I really don't think they are going to start persecuting/prosecuting each other so we are Fucked.

Tue, 05/01/2012 - 12:45 | Link to Comment Shizzmoney
Shizzmoney's picture

Only a Fed Reserve Bank Branch report would come with a color book.

Tue, 05/01/2012 - 12:49 | Link to Comment AnAnonymous
AnAnonymous's picture

Prosperity has left?

 Lending money? To do what? To whom?

 Support more economical activity through higher injection of inputs?

 Where are the indian lands to sponsor the US citizen project? One will require a massive inflow of inputs to reset US citizen material debt.

Hint: US citizens planned the outer space to that space that would provide the inputs.

After the NASA grand fiasco, well, trapped on earth with economical papers that only mean if expansion in space had not been another US citizen pipedream.

Tue, 05/01/2012 - 12:55 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

AnAnonymous said:

Hint: US citizens planned the outer space to that space that would provide the inputs.

Made me laugh. Another Chinese citizenism strawsman construction.

 

Tue, 05/01/2012 - 13:07 | Link to Comment AnAnonymous
AnAnonymous's picture

A strawsman, it is not.

Big deal for US citizens as space was supposed to be what perpetuated their expansion ponzi.

Tue, 05/01/2012 - 14:01 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

Made me laugh.

Space perpetuated expansion ponzi is mere propagandized fantasy, mattering not if fantasy sprouting from seed of US citizenism or seed of Chinese citizenism.

Mere strawsman, nothing more or less.

 

Tue, 05/01/2012 - 14:03 | Link to Comment AnAnonymous
AnAnonymous's picture

That is indeed fantasy..

A costy fantasy. As often with US citizens.

Tue, 05/01/2012 - 14:16 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

AnAnonymous said:

That is indeed fantasy..

How nice of you being in agreement one time is.

A costy fantasy.

Is true words speaking you now.

As often with US citizens.

As always with US citizens when blindly following elite leadership, costly in money, costly in time, costly in reputation, costly in lives.

 

Tue, 05/01/2012 - 12:57 | Link to Comment The Alarmist
The Alarmist's picture

Osama, is that you?

Tue, 05/01/2012 - 12:56 | Link to Comment The Alarmist
The Alarmist's picture

Dallas is obviously full of crackpots ... time to find some porn on their computers.

Tue, 05/01/2012 - 12:56 | Link to Comment orangegeek
orangegeek's picture

And with all this, the Dow continues to climb.

You can take this hourly chart and tack on another 120 points.

 

The elliott wave count just went from Bearish to Bullish for the Dow.  I guess the depression is over.

http://bullandbearmash.com/index/djia/hourly/

 

Chart will be updated tomorrow.  U can get notified by email when it does:  http://bullandbearmash.com/members/signup/

Tue, 05/01/2012 - 16:20 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

I dismiss elliot waves and I dismiss your analysis.

Operation Twist doesn't end until June so that's the time to be ready for massive volatility likely bearish but could go the other way very quickly

Tue, 05/01/2012 - 13:04 | Link to Comment q99x2
q99x2's picture

Would have liked it better if he'd a said, "Why we Must end the FED now."

Tue, 05/01/2012 - 13:43 | Link to Comment tgatliff
tgatliff's picture

You forget that Ron Paul didnt make it... Nope, the Dallas FED is trying to appeal to Romney since he said that Big Ben is out...   To me, I think this "article" is more of a marketing document trying to promote a new FED chairman...

Tue, 05/01/2012 - 16:24 | Link to Comment Matt
Matt's picture

So, is this to foreshadow that under a Mittens Administration, all press releases will come in coloring book format?

Tue, 05/01/2012 - 13:28 | Link to Comment kevinearick
kevinearick's picture

Machine Operation

As designed, the Supreme Court stood between the manufactured majority and the wall of individual sovereignty at the cliff edge. Where did these justices come from?

So, legacy capital, generations removed from new family labor, employs the manufactured majority, guided by agency, of their own free will, to borrow, spend, and steal, according to increasingly inelastic, and therefore arbitrary, capricious, and malicious laws, hiding their true intent and implementation, to the end of maintaining the status quo of legacy non-performing assets. Agency size is the ramp; the assets are the rock.

Agency travels in a public, private, and non-profit circle, creating the accounting ratchet; the weight of the rock loads the spring. The relatively immobile contraption falls further and further behind in time, relative to the leading edge of mobile labor on the natural event horizon. The intelligent kids left behind are held hostage by legacy, in the catapult seat, on a platform built for the quantum occasion.

From the perspective of the machine, nothing changes, because it is designed to see/measure only itself, in a self-fulfilling prophesy. Its quantum operation depends upon what you leave behind for it to steal. When it reaches the limit of that technology, which activates the business cycle, liquidating the back end of new family formation and pumping the return to legacy capital, the cultural thread snaps and the catapult is released. Christianity is just the latest and greatest ponzi that can no longer sustain exponential growth. Surprise, surprise.

Each new mythology feeds upon the decay of previous mythologies. From the perspective of labor, the empire increases the no-sail zone in a distillation process. Regardless of the media hype, anytime you see exclusivity, complexity, and extravagance, you are looking at the empire. Just follow the money.

What do you see when you examine the hedge funds? Where are the hedge funds building their ponzi on the margin? Where is the currency ultimately coming from to keep the operation primed? How do you time their collapse? Relatively, how much did Apple pay in taxes and where is it building capital on the margin?

Women undermine women. Men undermine men, Jews undermine Jews, etc., and no one can screw you like your family. Empire misdirection simply creates the artificial divide and conquer amplifier to grow polarity, with the battle of the sexes at its core. Just swap the lines.

Within the empire, who provides most of the banking operations? Who provides most of the technology apparatus? Now go back and look at your empire History again. Tack on logic and/or emotion as required to travel right up the neutral; make the empire building revolve around nature’s elevator.

Heading against currency, you are going to zigzag roughly in 90s (45 to headwind), from the perspective of the empire. Time is collapsed by not waiting in line. The distance between the turns depends upon the amount of gravity you need, which the empire itself approximates with the ratio between return on capital and return on labor, as the empire becomes increasingly irrational, widening the no-sail zone to capture mature intelligent labor.

Herd behavior does the rest, and, because it cannot be altered in real time, the empire drives itself over the cliff, accelerating its outcome by the energy applied to avoid it, replacing GDP with G accordingly. As the operation becomes increasingly transparent, individuals jump off, forcing the empire to pump the exponential ponzi itself at ever greater cost.

If you turn before it goes over the cliff, it gets another business cycle, to build more gravity. Note the fiscal policy in Bernanke’s monetary policy. When the demographic fiscal policy loses pressure, the Bank steps in with the pump. Fiscal policy feeds stupid new family formation; monetary policy delivers its liquidation to legacy, which may only continue in a closed-loop ponzi formation. Whether you feed that circuit or not is completely up to you, because there is no intelligence on the closed side.

If you look at it from a plan view, you see an ac wave, traveling through a communication projector across dc event horizons. What does that remind you of? Draw a centerline. From that line, draw an ac wave, with increasing and decreasing frequency and amplitude. From the beginning of the centerline, connect the peak amplitudes with lines. Same for the troughs. Now add dimensions, as previously provided, and what do you see?

What you are looking for in a marriage, despite conventional wisdom, is the ability to steer through the noise, with energy from and returning to the noise, keeping in mind that neither capital nor labor may choose its children over time, despite capital’s every intent to do so in the short term. The best it can do is collapse the new family formation it sees, with increasing applied energy as it chases intelligence farther and farther out on the event horizon, until its assets have no basis in nature. Herding cats.

What you have is a circuit of circuits, made up of a series of delay devices, separated by the insulation of mythology perception (with parallel best business replication), with a looking glass relay of relays weaving parallel circuits between them, distilling out false assumptions faster than the empire can proliferate them. From the perspective of the empire, nothing is changed. The herd follows the same signs to the same trough, only in different vehicles.

The middle class grows and collapses with demographic acceleration and deceleration. When the demographics turn, the catapult is released and the intelligent kids are thrown onto the next ramp (event horizon orbit), as the old part of the centrifuge slows and the new part accelerates. From their perch on the catapult, they see the “new” world under construction and prepare accordingly. They may choose to build the necessary structures to catch peers and parents as they pop off the stack, assigning sunk cost value accordingly.

A constitution is a discretionary bridge to the old world. A new dimension is just a different way of looking at the noise, a different path through the projector, which alters the perception but not the noise. Empire operators are not equipped to design and install relays. They can only copy, add, and subtract existing delay devices in the stacks to create the desired business cycle misdirection.

They added education and energy departments, but look at the data. How far did it get them and at what demographic cost? You have your specific community development and you know the as-is. Just install the required rely when you are ready and the necessary empire mythology circuit will catalyze itself, to reflect the new circuitry.

The empire robots arm their kids with the same lies they were armed with and they wonder why their kids ask why not instead of why. Sound familiar?

Part of your program pursues trial and error, avoiding error repetition, and part repeats the same error until it is no longer an error. And it is a program of programs. Human beings, like all other critters, are incredible creatures, from the right distance.

Tue, 05/01/2012 - 13:33 | Link to Comment tony bonn
tony bonn's picture

"..End banking oligopoly power; punish failure quickly; and change the do-or-die (M.A.D.) decision-making paradigm; ending with the threat promise suggestion that Restructuring isn't so radical, firms do it all the time..."

i hear a symphony......bout fucking time

Tue, 05/01/2012 - 13:50 | Link to Comment Sturm und Drang
Sturm und Drang's picture

 

The ______ is a bank. Their objective isn't to control the conflict, it's to control the debt that the conflict produces. You see, the real value of a conflict, the true value, is in the debt that it creates. You control the debt, you control everything. You find this upsetting, yes? But this is the very essence of the banking industry, to make us all, whether we be nations or individuals, slaves to debt.

Umberto Calvini character, The International

“It is no coincidence that the century of total war coincided with the century of central banking.”- Ron Paul

 

Tue, 05/01/2012 - 13:51 | Link to Comment buzzsaw99
buzzsaw99's picture

The Dallas fed is a joke. Only New York matters.

Tue, 05/01/2012 - 14:31 | Link to Comment MrBoompi
MrBoompi's picture

I suppose you can say anything you want, even things like "We should end too big to fail", if you know the politicians in DC are paid by these very institutions to do nothing.

Tue, 05/01/2012 - 14:31 | Link to Comment verum quod lies
verum quod lies's picture

There is a slide (35 of 39) that states: “punish failure quickly”, that further states: “Specify, in advance, a set of harsh, non-negotiable consequences for requesting U.S. Treasury (taxpayer) assistance (or capital injections of any kind)”; and “removal of CEO and top executive team, replacement of Board …”, and finally “clawback of any bonus compensation (cash and stock) paid to the top management team in the two years prior to receiving federal assistance.” OMG, this is the first time they thought of this. After years of full on raping of the taxpayer to fund idiot investors and the Fedtards now tentatively recommend this (and as others have noted, the Dallas Fed is nearly the least important of the twelve district centers of idiocy). This is it, the Dallas Fed in CYA mode now debates the usefulness of TBTF and bailing out firms that weren’t even banks at the time of bailing out (hello vampire Squidward)? That’s it, years after the initial bailout with ZIRP seemingly forever in full effect and now they want to discuss this when easily more than 90% of the American taxpaying public was against it? Truly, WTF? Something that should have been day one, and certainly after a few months of reflection, now the Dallas f_ing Fed wants to go on record suggesting that they would recommend ditching TBTF as the economy trails off into depression. Now, now they want to go on record, yet slink away because shucks they have no real power to do anything? WTF?

Tue, 05/01/2012 - 16:48 | Link to Comment Tenshin Headache
Tenshin Headache's picture

The important thing for today, which is where we can actually trade, is that they *did* speak up. While not disputing the points you raise, they are irrelevant in the here and now. The question becomes what effect will we see now that they have spoken? Perhaps this will turn out to be a black cygnet, swan to follow. If so, full kudos to the Dallas Fed for getting the ball rolling. Simple truths, simply spoken. Yes, they are arguably late, but let's not get distracted by that.

Tue, 05/01/2012 - 14:43 | Link to Comment gaoptimize
gaoptimize's picture

More lithium in the water at the Dallas Fed?

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