Chuckie Evans Goes Full QEtard: Tells Hilsenrath Fed Needs To Do "Much More" Easing

Tyler Durden's picture

Confirming that the Fed's doves, every single one of them, are genocidal sociopaths, we have a repeat appearance from Chicago's Chuckie Evans, who first sent stocks barreling in the latest algo driven, no volume meltup, earlier, this time dodecatupling down, by telling Fed lackey Jon Hilsenrath that "we need to do much more to increase the level of accomodation"... much more as in the ~$2.5 trillion of debt that needs to be monetized in the period before Obama's desperate reelection campaign. And by "we", he means the group of 12+1 madmen bundled up in a room in the Marriner Eccles building with or without padded walls, who unlike a simple unfunded blog, believed that Q4 GDP in the US would be about 4% instead of the negative print it is about to be in a few short months. Yes sure: lets give the sociopaths-cum-Econ Ph.D's another run at destroying the world: just because the Arab Spring was not enough to demonstrate just how efficient the Fed is at toppling regimes, this time around they will make sure that the revolutionary wave sweeps across Asia, through Europe, and ends on the banks of the Potomac. Of course, if in the process it also brings with it the much desired hyperinflation that will make the US banking sector whole, who cares if a few million people die - at least Wall Street, which has long since converted its fiat wealth into gold and other real money, will be spared, go on a 5 year vacation to non-extradition Libya, then come back when the shotguns have rusted, and the pitchforks have been dulled, and pick up where they left off. Because as we all know, nobody is more "intuitive" than an Econ. Ph.D, and nobody can create greater financial innovation, aka the primary export of the US, than someone from New York's Financial District.

More from the Fed's mouthpiece:

Mr. Evans, who stirred markets with similar comments earlier in the day on CNBC, said he felt the Fed needed to make an even stronger commitment to keep interest rates low. He worries the public has tended to be too quick to assume the Fed will raise interest rates whenever the economy perks up a little and says that view is undermining the recovery.


"I would want to nail down expectations about accommodation," he said. "By itself that would be very helpful."


Mr. Evans doesn't think the Fed should raise interest rates until the unemployment rate gets to 7% or 7.5%, or unless inflation threatens to move up to 3% in the medium-run. The Fed has a 2% long- run goal for inflation, but just as it undershot that by roughly a percentage point during the recession, he thinks it is OK to temporarily overshoot it, too.

A little hyperinflation never hurt anyone...

"Running a little bit above 2% is far from a catastrophe," he said, adding that the 2% goal is what inflation should average over time and it shouldn't be seen as an absolute ceiling.


Without stronger commitments to keep money easy or other efforts by the Fed to boost growth, there is a "tangible risk" the economy won't be any stronger two years from now than it is today, "and I think that would be a huge problem," he said.

Perhaps it is time to rename "doves" to "rabid middle class vultures"

Mr. Evans is part of a contingent of Fed doves -- officials who tend to be less worried about inflation and favor more action to boost growth and reduce unemployment. The hawks who worry about inflation and oppose more action tend to get a lot of attention because of their recent dissents from Fed decisions. Minutes of an August meeting by officials, released Tuesday, showed that the doves have been very vocal internally.


"A few members felt that recent economic developments justified a more substantial move at this meeting, but they were willing to accept (the measures taken) as a step in the direction of additional accommodation," the minutes said.


Mr. Evans declined in the interview to say whether he would support additional securities purchases by the Fed, also known as quantitative easing.

Of course he won't "support" it - he will demand it.

Next up: formal targets:

The idea of setting formal targets for the economy is an area that is getting more attention inside the central bank. Such a move, some argued in August, "would establish greater clarity regarding the (Fed's) intentions and its likely reaction to future economic developments," the minutes said.

Among the targets in question: gold in popular circulation in ounces: zero; middle east country to be nuked to prove Keynes was right after all: Iran; middle class expendable: 50-100 million (carry the 0); weapons to be confiscated: all; start-end curfew hours: 8pm - 6am, and so forth.

And since gold is about to be 6102'ed very soon, we urge readers to make a map of where they bury theirs, memorize it, and then swallow it (the map, not the inedible gold).

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Mike2756's picture

Could someone tell these guys we're a net importer?

WestVillageIdiot's picture

Could someone give these motherfuckers a real job for a year and then let them run those fucking mouths of theirs?  These assholes need a basket of humility for Christmas, or Hanukkah. 

IBelieveInMagic's picture

Tyler, you keep harping about Arab spring revolution as if this were true voluntary uprisings -- for example, it is hard to believe Libya was an internal revolution at all, just saying...

spiral_eyes's picture

If we're in a fucking liquidity trap the Fed could kill it in (Bernanke's words) less than 15 minutes by NOT PAYING INTEREST ON EXCESS RESERVES. No QE necessary. Dumbasses. But no — they just wanna print more, and then pay interest on it. It's robbery. Total robbery. Not just debasement, but interest on debasement. 

disabledvet's picture

with BofA near death "of natural causes" i'm not so sure about this. that's trillions in obliglations going "kaplooey." and with "the legal class" apparently baldly telling all Americans to not pay their mortgages you really have to wonder about the solvency of the attendant states know "need that revenue thingy."

TruthInSunshine's picture



QE3 is DOA, bitchez. Fade Goldman. They're fading their own (free) advice and prognostications.


  • Fed Divisions Led to a Compromise on Interest Rates New York Times By Published: August 30, 2011


Staff members slightly raised their forecasts for inflation for the rest of this year, indicating that the central bank might be especially unlikely to engage in another round of major asset purchases. These purchases generally raise prices, and the Fed has previously engaged in such quantitative easing in part because policy makers worried that prices might otherwise start falling.

traderjoe's picture

Reading these Fed posts oftentimes makes me sad. All of you people genuinely debating Fed actions are completely missing the boat:


Read that again. The Fed isn't there to actually help the economy. The Fed was specifically created by the mega-bankers to rob the people of their money - in part by creating inflation and in part by supporting the fractional reserve banking system. They are performing exactly to plan.

Wake the fuck up people.

trampstamp's picture

Like Marc Faber said, we'll know soon if Bernanke is an amateur or a true money printer

Raymond_K_Hessel's picture

Spiral_eyes, I was thinking the same thing until I read the article on ZH this morning from GS saying that the actual IOER is only 8 to 9 basis points. Now I question whether the banks will lend with a negative IOER. How can they lend with the lack of qualified and willing borrowers? Even if they lowered requirements, who wants to borrow to start a business or make investments in growing their existing operation? You're right though, if the money makes it out, it'll multiply ten-fold. Hello hyperinflation.

spiral_eyes's picture

Well it can only multiply up to the reserve requirement — and as I explain here, hyperinflation is really a non-monetary phenomenon caused by the severe degradation or stagnation in productivity, energy supply, food supply, etc (think the deindustrialisation of the Ruhr or Mugabe's destruction of farm land). Now that's not to say America isn't threatened by these things — think oil shocks, China starting a full trade war, etc — just that the hyperinflationary money printing tends to start after the supply shock.

I think we need to look deeper and harder at the phenomenon of biflation. The pressures are very assymetric — crushing inflation in food and fuel and other necessities (global-infrastructural phenomenon), and deflation in everything else. I am coming to believe that the overall trend is deflationary — let's assume gold is money, and look at the DJIA:AU ratio since 2001 — massive deflation, hidden underneath all the wads of QE funny money Benny has printed. Fiat currency, more than anything else, is good at fudging economics.

What this means is that PD's and non-PD's holding cash (whose food and fuel expenditures are lower as a percentage than say a Mom and Pop shop) still experience net-positive real rates above and beyond the IOER rate. Now, the weight of the debt and systemic problems is probably ultimately going to cause some kind of Great Crash, but up 'til then we can cushion the blow — massively slashing military spending and redirecting it at food, fuel, transport and commodities infrastructure. Those excess reserves could also be used for some kind of debt forgiveness program.... total debt is 360% of GDP...

theMAXILOPEZpsycho's picture

Great post...however, the idea of debt forgiveness doesn't sit right with me. My sence of justice tells me those folk who took out mortgages, student loans, maxed out their credit cards should pay back every penny...while those who worked hard, lived bellow their means, and put everything in gold and silver should buy up everything for pennies on the dollar

spiral_eyes's picture

It doesn't sit right with me either, and it's very unfair on the face of things. But it would be a mirror of what Wall Street got.

I own physical gold and silver. Even with a debt forgiveness program, the values of those metals will rise. Perhaps there won't be a blow out peak where we can buy a house for 20 ounces of silver, but if eliminating or lessening the crushing burden of debt is viable, then I am willing to give up that blow out peak to get America working again.

Medea's picture

Gee, I wonder which of these two types of people you think yourself to be. And I'm sure that has nothing to do with your "sence of justice."

spankfish's picture

Reminds me of asymmetric warfare.'s picture

The rebels are Al Qaeda who were previously in US custody then released to Libya and then trained by NATO forces to oust Qaddafi.


Libyan rebel commander admits his fighters have al-Qaeda links


In an interview with the Italian newspaper Il Sole 24 Ore, Mr al-Hasidi admitted that he had recruited "around 25" men from the Derna area in eastern Libya to fight against coalition troops in Iraq. Some of them, he said, are "today are on the front lines in Adjabiya".


Mr al-Hasidi insisted his fighters "are patriots and good Muslims, not terrorists," but added that the "members of al-Qaeda are also good Muslims and are fighting against the invader".


His revelations came even as Idriss Deby Itno, Chad's president, said al-Qaeda had managed to pillage military arsenals in the Libyan rebel zone and acquired arms, "including surface-to-air missiles, which were then smuggled into their sanctuaries".


Mr al-Hasidi admitted he had earlier fought against "the foreign invasion" in Afghanistan, before being "captured in 2002 in Peshwar, in Pakistan". He was later handed over to the US, and then held in Libya before being released in 2008.

US and British government sources said Mr al-Hasidi was a member of the Libyan Islamic Fighting Group, or LIFG, which killed dozens of Libyan troops in guerrilla attacks around Derna and Benghazi in 1995 and 1996.


Something very fishy about all this.


Bring the Gold's picture

No there hasn't been ANYTHING fishy that's happened in the past 10 years with US foreign or domestic policy and/or happenings. Someday people will look at the time period from Glass-Stegall getting repealed until whenever the pooh truly does hit the fan globally and it will all make alot of sense because they will be free from the current regime's omnipresent propaganda. At least one can hope.

That or the great Cockroach archaeologists 2,000,000 years from now will be really blown away at how stupid the common humans of this period were. "Wow they actually bought that shit? No wonder those stupid fuckers went extinct, they let completely psychotic people make decisions that effected the whole species and couldn't see past the BS, good freaking riddance."

Spirit Of Truth's picture

If you think world history is being significantly manipulated by "U.S. intelligence" (an oxymoron), you are suffering from wishful thinking IMHO.  The West is way behind the curve shaped by the East.

What you really need to ask yourself is, why did LEBANON table the U.N. resolution authorizing NATO military action against the Gaddafi regime?  After all, under Najib Mikati, Lebanon is just a proxy state of Syria and Iran, two states that seemingly had little incentive in opening the way for Western military action to overthrow a dictatorial Middle Eastern regime.

Hey....but who cares about the truth anymore anyways.  Everyone is above reality nowadays.

Hence: DJ Composite Hits 4K

disabledvet's picture

Actually if you're feeling under the thumb of a tin pot dictator type having the US overthrow one for you sounds like pure brilliance to me. Maybe they'll get luck and get a Syrian "two-fer."

candyman's picture

I'm so fuckin8 tired of the regulators changing the goalposts i'm going ballistic. How the fuc* can I make and investment  decision.; An investor playsplays the rules but gets fucke* on every turn. I'm so fed up I'm getting ourt the  AW G22 Arctic 7.62mm

dalkrin's picture

Calm down buddy, you are free to withdraw all monies from the rigged markets at your convenience.  Since fiat notes should be handled with considerable skepticism, go make a local coin shop owner happy and secure your wealth in physical precious metals.

wandstrasse's picture

cockroach archeologists.. lol! i am sure they will identify todays banking elite as their predecessors by genetic tests.

Pants McPants's picture

Fishy, yes.  Surprising, no.  Amazing how the script repeats aint it?

The best enemies money can buy.'s picture

While today NATO trains and supports admitted Al Qaeda rebels in Libya, it was only 8 years ago that the US used sanctions to force Qaddafi to hand over intelligence on Al Queda.

What the hell is going on?


Libya gives more on al-Qaeda    

December 21, 2003 - 5:34PM

Libya provided intelligence on hundreds of al-Qaeda and other Islamic militants, as well as renouncing attempts to develop weapons of mass destruction, in a bid to end its pariah nation status, a British newspaper reported.

Libyan leader Muammar Gaddafi's moves came as part of a deal to have crippling United States sanctions against his country lifted, said the Observer.

Bring the Gold's picture

You mean Mammon day right or perhaps if you are generous Moloch day?

As to baskets of humility, they DO like to throw baskets of humble children to roast over the fire as part of the festivities so that's about as close as you're gonna get.

cossack55's picture

Funny, I was thinking about baskets for these swine myself, only the kind one finds at the base os a chopping block.

Id fight Gandhi's picture

I don't like how they calc inflation. Its never realistic. They think iPads matter.

Mugatu's picture

At least one item has fallen in value - Pot prices!  According to CNN:

As further evidence of the drug war's failure to limit drug supply, U.S. government data clearly demonstrate that even as federal funding for anti-drug efforts has increased by more than an inflation-adjusted 600% from 1981 to 2002, marijuana's potency increased by 145% and its price has declined 58% from 1990 to 2007.


So at least we have that going for us!  Potency is up 145% and prices are down 58%.  Sounds like the drug lords are better at economic planning than the Fed.

disabledvet's picture


DonutBoy's picture

It's simpler really, it's not the genius of the drug lords - it's the magic of the free market.  Since the drug trade is illegal - it's not regulated.  Thus it is truly capitalist.  No one tells them what to plant, what to ship, and the market provides what people want at decreasing real cost.  You would think we'd try that approach on some of the things we'd like our country to have.

disabledvet's picture

Oh, sorry, I meant to say HOORAYYYY FOR THE FREE MARKET! Next stop...THE KUDLOW REPORT!

swissbene's picture

drug prohibition is quite separate from 'non regulation'.  rather it is hyper-regulation -- with guns, jails, and so forth.

US are moving toward sanity re mj: less criminalization != non regulation nor free market.

it is great to see high quality ganja coming down in price.

also: the core argument that free market capitalism is to credit for ganja quality & price gains implies that ganja is indeed a good that 'we' (US) would 'like country to have'.  unless there is some 'we' that supersedes the marketplace?

as for extending mj dynamic to other goods, do you suggest criminalizing such goods? or do you suggest that other trade be decriminalized?  the former clashes with free market principles espoused (and would fail to achieve desired price/quality gains).  the latter seems right on -- decriminalization is generally good where innocuous goods like mj are concerned.

summary: movement away from criminalization (ie hyper regulation) should not be confused with unfettered capitalism.

Bay Area Guy's picture

Exactly Mike.  All that further debasement of the dollar (which is what QE3 will provide) will do is to jack up the cost of our imports, including food and that pesky little thing called oil.  People that have no clue as to what's going on will blame big oil and big ag, saying they're gouging the little guy again, and the politician will pontificate about the evils of business again. 

Plain fact.....It will make our exports only marginally more attractive.  There's no way the US is going to be able to compete on price with products made in China, Vietnam or other manufacturing counties any time soon.  We're a service and consumption economy and the sooner that these bozos understand that, the sooner they may develop policies that have a chance in hell of working.

But to go after those rational policies would require the Fed and the political world in general to admit that the manufacturing jobs that made this country what it used to be are gone and they aren't coming back in any meaningful way, at least not at wages similar to what blue collar workers used to get.  And to admit that would be death to a politician's hope of courting big labor, so it'll never happen.

Rynak's picture

That's really only half of the story. Sure, if you cannot produce (in reasonable amounts relative to your imports and local needs), you're going to be a dependent.

However, this does not automatically mean, that production and export is a reasonable MAXIME.

See, i'm coming from germany, aka china-lite. A country that managed to go from a (trade-wise) someway balanced approach, to an all-out export economy, in just 10 years. Are germans happy about the consequences? Well, let me rephrase that: Do you think chinese (except of the top 5%) are happy about the consequences of their export-biased economy? After all, the lower-class (and middle class) workforce, has to take the burden of how to produce at wages, that are impossible to sustain regarding buying power, unless said goods are exported, since the local population produces so cheap, that it cannot afford it's own products anymore. Do you think they're happy about that?

Well, neither are most germans (though, they still until today have problems figuring out just what turned their "excessive" life into a that of a population that counts every cent they spend. So, they notice the effects, but are too stupid to understand the causes).

What i'm trying to get at: Import and export represent a local imbalance. After all, if you don't have overproduction, there is nothing to export, and if you don't have local shortages, you have no reason to import (i'm oversimplifying here). Sure, some importing and some exporting will almost always be needed, simply because nations (if only because of geography and ressources) are rarely totally selfsustainable - but this is NOT a reasonable argument, for MAXIMIZING existing imbalances. A population for "some reason" is not better off, by it's local economy being more out of balance.

swissbene's picture

it seems a stretch to link trade surplus (export economy) with low wages and economic hardship as a matter of fact.  unable to consume own products?

i trust your first hand experience in Germany -- but to outsiders there appears to be a high income level & relatively fair distribution of income at aggregate level [stats from].

a counter example is Switzerland - another export economy but without any appearance of the troubles you highlight.

swissbene's picture

US is a net exporter of food.  []

oil is pesky indeed but of course consumption is largely voluntary.  several advanced nations [Switzerland, Germany, UK] use ~1/2 or less per capita vs US so there is plenty of opportunity to use demand lever.  the scapegoats you predict sound about right and of course must exclude individual responsibility for consumption b/c voters just plain dislike it.  []

why exports only marginally more attractive?

what products (and what support) are tied to claim that US is unable to compete in manufacturing?  price is not the only dimension.  US manufacturing & exports have grown ~3x in the last 20 years [].

services are also exports.  hyper consumption is part of the problem not an intrinsic that needs requires (more) accommodation.

i blame the fed for many things but hard to pin the loss of manufacturing jobs there in my view.

mfoste1's picture

bring em to the gallows.......

WestVillageIdiot's picture

And if they can't find transportation bring the gallows to them. 

Sudden Debt's picture




lynnybee's picture

are these people crazy ? !    are they crazy !!   .........we're going to be destroyed.   i'm watching what little i've got dwindling !    thank god i've been reading & doing research the past couple of years & have purchased some precious metals / i don't have a lot, but at least i have something .     thank goodness for ZEROHEDGE education.     I actually went to my coin guy today (my newest bestest friend in the whole world ! )  & when i left his shoppe with my purchase of silver i felt much better & safer.

WestVillageIdiot's picture

I had a friend about 10 years ago that would go to Best Buy every Tuesday.  He would buy the latest DVD, even if he didn't care what it was.  He would buy all of the latest electronics, whether he needed them or not.  He would purchase "things", hoping that somehow they would make him happy. 

The best times I have are the simplest.  I like music, reading (ZeroHedge and history), eating decent food, playing an instrument and just spending simple times with friends.  I don't need to go to Best Buy every Tuesday.  That old friend can never be wealthy because no amount of money can make up for the big hole that runs the length and width of him. 

whstlblwr's picture

Come on lynnybee, and all Zero Hedge. Get to work. Time to spread word.

Just had debate on social media with someone who says gas price result of free market. Let people know what you know that Federal Reserve policies creating inflation.

A Lunatic's picture

There is no inflation. If we experience any inflation in the future it will be of the harmless, transitory variety.

rocker's picture

@whstlblwr   I hate to break the news to you.  But less than 1% of all Americans know or understand what the FED is doing.

My next door neighbor who are very well to be, they have at least a million+ in property, apartments and assets.

They do not even know  who Ben Bernanke is and care less.

They do not know what QE1, QE2 or Quantitive Easing is or means.  UnFuckingBelievable.

So, I asked them, don't you have investments in the markets?

Reply:  No, we don't have any investments in the markets except for what he gets through work.

So, I asked why not. They said because it is a Ponzi Scam. We like real estate rentals better. Explains why they like their rentals on the shore.  

You must realize:

 Rupert Murdoch and the likes with FOX, CNBC and CNN tell people how to think by orders of the Mind Control Police.

99% of the people have NO Clue.  Enough Said.  It is Sad, but True.    

Thank You Zero Hedge for being here.  The rest of us poor bastards need you.

Those of us who thought the markets might be a good place to invest.  Geeezzzz.  What some of us learn the hard way. 

 (Poor: not having 1 million dollar bonuses or more every year like Lord Blankfein)

lynnybee's picture

Get to work. Time to spread word.     most on ZEROHEDGE know my story.    i have spread the word, but, alas, my family & friends don't believe a word i say.    i've been laughed at, ridiculed, made fun of; i've been told to "get off that internet" by my own family & when i asked my adult son if he would help me stockpile bottled water & foodstuffs (lifting heavy items out of the car) he told me "no" .    my own son told me that he's not "buying into this insanity" .     NO ONE BELIEVES ME ....... I have begged my friends & family to stockpile, to swap out worthless pieces of paper for real silver ; no one does it & they think i'm nuts.       when the currency collapses, they'll all be knocking on my door & i can barely save myself let alone a family of 6 adults.    

Rynak's picture

If you're dealing with hardliners, and you - for whatever reasons - do not consider "giving up on them" an acceptable option, then try subtle infiltration. That is: Don't try to "convert" them.... actually, don't even try to convince them... just "seed" subtle infobits into discussions they start, without any intention of "winning" the discussion.

I.e., if they talk about something, just mention small infobits (data), without making the judgement and conclusion yourself.

In other words (anti-)poison their infopool, and leave it at that.