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).