Dallas Fed's Fisher Exhibits Peak Cognitive Dissonance And Self-Delusion

Tyler Durden's picture

For today's definitive example of peak cognitive dissonance and self-delusion among those who determine the monetary fate of the world no less, look no further than the Dallas Fed's Dick Fisher, who just said the following according to Reuters:

  • No one presently believes that the Fed is going to proceed with QE3 - is that because it will be called THE NEW QE?

Funny considering earlier, we got this from Goldman's Bill Dudley:

  • No decision yet on QE3, New York Fed's Dudley says

Finally, there is this pearl from Goldman's Jan Hatzius as reported here last week:

  • Not easing might be equivalent to tightening

And that is why central planning always fails. Because a room of these terminally confused people sits down and determines the fate of the world based on their naive academic interpretation of what they perceive is reality.

More from Reuters:

The U.S. financial system is well funded and needs no further injections of liquidity, a top U.S. central banker said on Monday.

"We have filled the tanks, there is plenty of liquidity. We need no more," Dallas Federal Reserve President Richard Fisher told a round table discussion at a business event in London.


Fisher is an outspoken policy hawk who has been critical of the Fed's last round of asset purchases,


In late 2008, the U.S. central bank slashed interest rates to near zero and has since bought $2.3 trillion in long-term securities in an unprecedented drive to spur growth and revive the economy after the worst recession in decades.


Last week it gave few clues on the prospects for further monetary easing, offering just a slight upgrade to its economic outlook while restating concerns about the high level of unemployment.

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GeneMarchbanks's picture

A warm feeling all around. I actually believe that, notional GDP targetting enters stage right.

LowProfile's picture

That warm feeling is the collective pants-pissing of those counting on more QE.

SheepDog-One's picture

So markets have ran up from DOW 9,000 to 13,000 based upon 'QE3 coming at any minute now people', and now that its not coming its no big deal? 

I get a real funny feeling one of these mornings soon will be a real huge market shocker.

ejmoosa's picture

And here I was thinking that the markets and oil have run up because the dollar is worth less, so it takes more dollars to buy them......


The awesome feeling of things getting better because of the market rise is just the icing on the cake.

knukles's picture

But but but but but remember, Little Dickie is but one member and the OMC with it's new voting roster is uber-liberal/inflationista

bernorange's picture

Jim Rogers says QE3 is happening right now:

"We already have QE 3. Get out the Federal Reserve‘s balance sheet. You’ll see that they’ve been pumping up – you can see unadjusted M2 is going through the roof. Look at their balance sheet.

All sorts of assets are suddenly appearing on their balance sheet. Where did they come from? They didn’t come from the Tooth Fairy; they came because they’re in there buying in the market as fast as they can. There Is QE 3 already. They don’t call it that but it’s there."


LawsofPhysics's picture

Hey numbnuts, ZIRP is QE!!!  There is a very real cost for creating capital without adding any real value to the system.

Zero Govt's picture

indeed no, that's Joe Bidens job

mayhem_korner's picture



Joe Biden's job is to repeat things others have said.  Sometimes legally, sometimes illegally.  And sometimes he gets it right, sometimes...not so much.

Zero Govt's picture


Indeed, Joe wasn't so clever here:


or here:


..agreed Joe "repeats" things.. he repeats his speeches and what i really like is how he repeats being genuine, warm and authentic


slaughterer's picture

Maybe Barack/Joe will follow John Corzine's advice/action once again (his last word of advice, really, with the MF Global BK just a prelim test case for the moment when the US debt supercycle swings into the abyss) when they decide to suddenly make all of our trading accounts vaporize into the Federal Reserve borg never to reappear again.  Corzine is really the evil mastermind of all of 21st century "finance." 

Die Weiße Rose's picture

Hey dumb nuts, Operation Twist is also QE!!!

at US $44.44 billion per month over 9 month until 12 June 2012 that's nothing to be sneezed at !

On the economic front today, the latest Australian Institute of Petroleum (AIP) report was issued today
and has shown that the national average price of petrol rose by 1.3 cents to 147.1 aussie cents a litre last week.And over the past five weeks, the Singapore unleaded fuel price has surged by almost US$12 a barrel and is holding at the highest levels in 3½ years” Due to higher wholesale prices, a 2 to 3 cent a litre rise is expected over the next fortnight.

On Thursday, Japan will issue its latest trade balance which is likely to be another trade deficit (trade has been weak following last year’s disasters).China’s latest manufacturing update will be delivered by HSBC on Thursday also and has the potential to be market moving. And...

In Europe tonight, the Greek credit default swap auction will be held.

The British Central Bank will be releasing its latest MPC (Monetary Policy Committee) minutes from its monthly meeting on interest rates on Wednesday night in addition to its latest Annual Budget Release at 11.30pm on that same night. The European Central Bank’s (ECB) President will be speaking on Thursday night
while the U.K’s latest retail sales result will be out that evening also.And...

I worked out that the national Debt of the UK is 11 trillion,

US 10 trillion or 480% of UK's 2.4 trillion GDP is public Debt (foreign Debt)

US1 trillion or    41% of UK's 2.4 trillion GDP is 2012 Government Debt (Budget deficit)

add it all up and.. UK national Debt is 11 trillion USD !

United Kingdom in the sheit :

According to the Financial Policy Committee "Any associated disruption to bank funding markets could spill over to UK banks." Bank of England governor Mervyn King declared that the UK is very much at risk from a domino-fall of defaults and called on banks to build up more capital when financial conditions allowed. This is because the UK has the highest gross foreign debt of any European country (€7.3 trillion; €117,580 per person) due in large part to its highly leveraged financial industry, which is closely connected with both the United States and the Eurozone.

please tell me I read that wrong !

Angela Merkel and her finance minister Wolfgang Schäuble will Not be happy !


HungrySeagull's picture

This tank was built when .29 gas and 30/hr American Jobs were it baby,

Feed me!

(A cookie for those who know this movie)

And I aint touching the rotted debt to buy a little golf cart that cannot survive the left lane for more than 10 miles on any form of power.

Gully Foyle's picture

Ho hum, everyone lies all the time.

Everybodys All American's picture

QE3 or interest rates going higher. That's the choice.

SheepDog-One's picture

And as gas blows past $4 avg right now, more 'QE' would mean $6 gas for their precious little elections? I dont see any of it happening.

Theyre just sticking to the original plan- 'Rumors of QE are JUST as good as QE itself'! Carrot and stick economic model, but that horse is lookin REAL tired.

Everybodys All American's picture

You're right ... but who will buy the treasuries if not the Fed? That is the problem and the bond market is tweeting like a canary right now.

SheepDog-One's picture

People assume the FED just buys Treasuries forever, but thats not true all they did was monetize the debt and theyre about done if not already done.

Everybodys All American's picture

They have a substantial amount on their balance sheet already and any small incremental move in interest rates severely impairs that balance sheet. So I suppose we are going to have to find buyers other than the Fed. The only way I see that happening is with a massive amount of fear buying or interest rates rising.

SheepDog-One's picture

No, thats not the point in monetizing the debt. They now own all the 'assets' for FREE so it doesnt matter what the price or interest rate is at all, the only point is now the FED/CB's own about every treasury and stock out there, enough for total control of it all.

Die Weiße Rose's picture

what about QE unlimited Deus ex Machina Japanese Style

together with higher production costs for producers and manufacturers

as well as higher CPI consumer prices (Oil,Gas,Electricity,Food and Energy )

for every woo-man and mouse on this planet ?

there is No choice !

Inflation and higher prices are already here !

Americans just don't feel the Inflation yet....because

the US FED has been too busy keeping Interest-Rates at 0% Zero

and devalue the absolute shit out of the US Dollar,

(the so-called "reserve currency") it's fucked!

one day you should get out a bit more!

then you see what I mean by QE Inflation...

The US Fed's QE unlimited Stiimulus is causing Inflation and hardship all over the world already!

so please don't piss down my back and tell me it's raining !


Cognitive Dissonance's picture

"Dallas Fed's Fisher Exhibits Peak Cognitive Dissonance And Self-Delusion"

Sorry. I was asleep at the wheel. What's up?

Oh, the Fed's Muppets are speaking out of both sides of their mouth again? That isn't Cognitive Dissonance. That is Orwellian Newspeak.


Dr. Engali's picture

And if anybody should know what Cognitive Dissonance is ,that's you CD. :>

Cognitive Dissonance's picture

Hell....I couldn't find it in the noon day sun if I tripped over it on my way to the Fed's discount window. :>)

mick_richfield's picture

There is an unlimited supply of Cognitive Dissonance, if we look for it hard enough and are not afraid of using all the technology available to us to find it. 

The real problem stems from two facts:

  1. New supplies of Cognitive Dissonance are of consistently lower quality than early "light, sweet" Cognitive Dissonance.  New supplies are dark and heavy.  We do not get as much GDP growth-per-unit-bullshit from these new sources of CD.

  2. Many nations in the developing world are beginning to consume much more of their own production of Cognitive Dissonance, thus rapidly decreasing the amount available for use in the US, just at a time when the US needs it more than ever.


Vampyroteuthis infernalis's picture

I always though Cognitive Dissonance fits into the same category as Social Distortion.

Cognitive Dissonance's picture

Excuse me.......but I am not overweight.

Just big boned. Ask my wife.

Vampyroteuthis infernalis's picture

My big bones are a glandular problem. ;)

kralizec's picture

The tanks are full?  Really?!  LOL!

Non Passaran's picture

I guess this partially explains the erratic behavior of stocks at open.

The algos are confused.

Quinvarius's picture

Maybe they should stop buying 50% of every Treasury auction so QE1 can actually end before telling us there will be no QE3.


Zero Govt's picture

Dallas Fed's Fisher Exhibits Peak Cognitive Dissonance And Self-Delusion

Chuckle :)

Eclipse89's picture

Good. Cheaper entry points on gold today.

HungrySeagull's picture

Gold has a entry point for decades. It's the watching paint dry as you age before seeing any sort of profits after the tax man and every other sort of man got through with it and leave you with a buncha 1099's to haul to the HR Block next year.

SheepDog-One's picture

Yea well golds 'entry point' just a few years ago was around $400 and everyone then said it was crazy to buy gold then too. But you have fun with your stocks, I guess thats what youre implying is better I dont know.

Cdad's picture

So...what you are saying is....that these two guys are the guys....behind the curtain...which is about to be swung wide to reveal...the wizard? 

It stands to reason that these Fed quotes would emerge now...and last week...as there are so many FUBAR charts this morning.  You can start with the CBOE VIX futures charts and work yourself backwards from there.  AAPL of course, too.  I caught an audio stream of J. Cramer on the BlowHorn [CNBC] this morning, and that stream literally sounded like eavesdropping on the day room of a mental institution, with conversation participants  overrunning  each other with "new and improved" reasons to buy THE ONE STOCK.  In my mind, the chart on Bloomberg TV viewership must be spiking this morning.  

The RoachMotel [SPY] was running at a LOL volume level of 4.5 million shares at market open

So...as soon as folks catch wind of how CBOE VIX futures are down 1.16 percent @ 21.32...after closing at 16.12 on Friday...ummm...unless everything is totally and completely broken...this should be a complete outside reversal day, and markets should sell off.

Of course, that is a pretty big "unless" up there.

Cdad tumbling down the rabbit hole....

SheepDog-One's picture

Peak monetizing...now they can 'QE' to get some more stock irrational exuberance, which by the way no one is believing anymore because no one can afford stocks any longer...also add on another $1.50 to gas prices and interest rates rise blowing the whole free money ponzi to smithereens. 

slaughterer's picture

They will gun the indices up via the futures/ETFs during the day session like they have been rinsing and repeating for weeks now.  Watch and see SPX close above 1410 today.  After all, it is AAPL divi announcement day!

mayhem_korner's picture

And that is why central planning always fails. Because a room of these terminally confused people sits down and determines the fate of the world based on their naive academic interpretation of what they perceive is reality.


I think they 'determine the fate of the world based on their view of what reality ought to be.'  These folks are sharp enough to discern reality if they actually want to see it.  They just don't.

MFL8240's picture

Where the fuck does it end with this group of liars?

mayhem_korner's picture



It doesn't...it just succumbs to the next group of liars.

Dr. Engali's picture

Once they can tell me how they are going fund a 1.3 trillion dollar deficit then maybe I will believe them. Until then I will keep buying gold.

mayhem_korner's picture



I hate to break it to you, Dr. E., but they are eventually going to pay for it with the gold you currently call "yours."

i-dog's picture

We're from the government and we're here to help ... you move your gold into the back of that there APC out front. Yes, that one with the license plate FDR-2012....

Saro's picture

Hey, if they can dredge it up from the lake bed, more power to them.