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On Eve Of Critical FOMC Decision, Republicans (Re)Send Letter To Bernanke Demanding No More QE
Nine months after the very same quartet of republicans, headed by John Boehner, sent a letter to Bernanke protesting the launch of QE2, this time the GOP has waited until a mere 24 hours before the actual announcement with an identical, if preemptive, message, namely: don't print, or stated differently, "we submit that the board should resist further extraordinary intervention in the U.S. economy, particularly without a clear articulation of the goals of such a policy, direction for success, ample data proving a case for economic action and quantifiable benefits to the American people." And while the political undertone of the letter is all too obvious: i.e. prevent any additional Obama-benefiting stimulus in the economy through the only conduit Obama has left, courtesy of Fiscal stimulus being snarled for good due to the republican majority in the House, Boehner et al bring up a valid point, which is that the Fed policy now accentuates market uncertainty and promotes trade wars: precisely the topics discussed in an earlier article today. As stated by Boehner: "Our long-term growth depends on restoring confidence and certainty in our fiscal, regulatory, and trade policies -- and not on government’s willingness to engage in additional stimulative measures. When asset prices increase due to anticipated Federal Reserve policy rather than economic fundamentals, it increases the potential for speculative action and erodes confidence in the economic outlook, making it more difficult to generate sustainable growth." Regardless of its actual merit, one thing is without doubt: QE3, and the Fed, just become once again critically politicized, and as such, even more market uncertainty is imminent. All that said, the theatrical optics of this action are quite glaring.
Full letter:
Dear Chairman Bernanke,
It is our understanding that the Board Members of the Federal Reserve will meet later this week to consider additional monetary stimulus proposals. We write to express our reservations about any such measures. Respectfully, we submit that the board should resist further extraordinary intervention in the U.S. economy, particularly without a clear articulation of the goals of such a policy, direction for success, ample data proving a case for economic action and quantifiable benefits to the American people.
It is not clear that the recent round of quantitative easing undertaken by the Federal Reserve has facilitated economic growth or reduced the unemployment rate. To the contrary, there has been significant concern expressed by Federal Reserve Board Members, academics, business leaders, Members of Congress and the public. Although the goal of quantitative easing was, in part, to stabilize the price level against deflationary fears, the Federal Reserve’s actions have likely led to more fluctuations and uncertainty in our already weak economy.
We have serious concerns that further intervention by the Federal Reserve could exacerbate current problems or further harm the U.S. economy. Such steps may erode the already weakened U.S. dollar or promote more borrowing by overleveraged consumers. To date, we have seen no evidence that further monetary stimulus will create jobs or provide a sustainable path towards economic recovery.
Ultimately, the American economy is driven by the confidence of consumers and investors and the innovations of its workers. The American people have reason to be skeptical of the Federal Reserve vastly increasing its role in the economy if measurable outcomes cannot be demonstrated.
We respectfully request that a copy of this letter be shared with each Member of the Board.
Sincerely,
Sen. Mitch McConnell, Rep. John Boehner, Sen. Jon Kyl, Rep. Eric Cantor
And here is the letter sent back on November 17, 2010, after QE2 was already in process:
The Honorable Ben S. Bernanke
Chairman
Board of Governors of the Federal Reserve System
20th Street and Constitution Avenue, NW
Washington, D.C. 20551
Dear Chairman Bernanke:
We firmly believe that monetary policy decisions by the U.S. Federal Reserve must be free and independent from political pressures. At the same time, the Federal Reserve should be open to receiving input and data from a wide range of sources. This combination preserves confidence in the credibility and effectiveness of decisions made by the Federal Reserve.
It is with that understanding that we write to express our deep concerns over the recent announcement that the Federal Reserve will purchase additional U.S. Treasury bonds, the so-called Quantitative Easing 2 (QE2). While intended to improve the short-term growth of the U.S. economy and help maintain a stable price level, such a measure introduces significant uncertainty regarding the future strength of the dollar and could result both in hard-to-control, long-term inflation and potentially generate artificial asset bubbles that could cause further economic disruptions.
The Federal Reserve’s recent move has also generated increased criticism and action from other central banks and governments. We appreciate that such comments must be examined within the context of which they have been offered. However, any action taken by our nation or foreign nations that impairs U.S. trade relations at a time when we should be fighting global trade protection measures will only further harm the global economy and could delay recovery in the United States.
Perhaps most damaging, we believe that QE2 is giving the impression that the Federal Reserve will keep making new and different attempts to boost the short-term prospects for the economy. Our long-term growth depends on restoring confidence and certainty in our fiscal, regulatory, and trade policies -- and not on government’s willingness to engage in additional stimulative measures. When asset prices increase due to anticipated Federal Reserve policy rather than economic fundamentals, it increases the potential for speculative action and erodes confidence in the economic outlook, making it more difficult to generate sustainable growth.
We hope you and the other Board Members will keep these concerns in mind as you review and discuss these issues in the coming months.
Sincerely,
Mitch McConnell
U.S. Senator
John Boehner
Member of Congress
Jon Kyl
U.S. Senator
Eric Cantor
Member of Congress
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Next, they'll go and charge him with treason or some crazy thing!
Damn Republicans trying to mess with my Silver.
Look, we are gonna hyperinflate anyhow, just get out of the way all you phony conservatives.
These dummies want no QE3 because they believe it might actually work. How utterly amusing.
Should these monkeys seriously cut spending Fed might have less incentive to launch QE.
P.S. - We the above also ask that the Bernank resign so that he be replaced by a much harder working chimpanze, that will work for banannas in the Bananna Republic the Fed has created.
This is just more kabuki theater, with the Repubs saying reasonable things about the Fed, while the Dems (Obama) blab about how the uber rich should get taxed more. None of that talk will amount to anything, but the sheeple of each appropriate stripe will gobble it all up and feel encouraged to continue voting for 'their' party. The talking heads on TV and in the press will either laud it or attack it, depending on the target audience, and indeed even here on ZH we'll write a bunch of comments on it.
Having a sold-out career politician speak (reasonably or not, it matters little) is as eventful and meaningful as a cow farting...
You are about an hour short.
Too bad.
Some updates and pictures from Ocuppy Wall Street.
http://goldandsilverlinings.com/?p=1647
Butakke theater....... don't eat the cookies
I couldn't have said it better myself... Christophe2 is on target.
I couldn't have said it better myself... Christophe2 is on target.
Where do I sign up?
The dummies think another round of herion for the stock market or QE3 might actually work to save Obummer's job. Now, that is amusing.
Ya right it might Effin Vodka work!!! LOL!!! Haven't we heard that 3 or 4 times before
off topic but did anyone else notice the similar red hammer/green hammer right shoulder we may be putting in?
You mean this?
http://imageshack.us/photo/my-images/208/blackswanchartael4.png/sr=1
LOL
Next anime to be added...the yaking of a corn husk
lets start calling it what it is.. QE5
1-QE with bush
2-with obummer
3-"QE light"
4-$16T european bank injection
...not to mention tax credits, corporate bailouts and debt-holes
Yes, another 20 QEs and it just might work. Just becuase the first 19 didn't work it doesn't mean the next one will not... At some point sombody has to take the toyes away from him or he is going to hurt himself and the rest of us.. he thinks it's a game...
Isn't that like telling an alcoholic to "PUT THAT BOTTLE DOWN" after he's already had the first 21 of a case. Yeah, good luck with that repubs.......
Damn Republicans trying to mess with my time line. If they don't print, the Enterprise will never exist. I hate farming.
The Enterprise always saves the day. Do you want to be beamed directly to the bridge captain?
The bridge to nowhere?
That was my concern, Scotty. Don't want to end up splattered all over the 23rd century.
+200 yr UST.
+200 yr FEDeration notes. Don't leave reality without 'em.
+200yr FEDeration CREDITS.
Thank god the "fiscally responsible" Republicans are here. I feel safer already.
Where the fuck were these same Republicans when Greenspan was flooding the markets with money during the housing bubble, and they ignored FBI reports of massive mortgage fraud?
Where the fuck were these same Republicans when Bush was trying slot best bud and arch-fraudster Enron CEO Ken Lay for energy secretary?
Where the fuck were these Republicans when Brooksley Born warned about the impending derivatives implosion, yet they told her to pound sand?
Where the fuck were these Republicans when former SEC Chairman Chris Cox (also a Republican, and arguably worst SEC chairman ever, though Harvey Pitt is close second) allowed these goddamn bankers to lever up 30 to 1?
Oh, and where the fuck were these Republicans when we had the kickoff to this entire party: Greenspan orchestrating the LTCM bailout?
http://money.cnn.com/1998/10/01/economy/greenspan/
Screw Republicans. Screw the Democrats as well, because goddamn if they haven't blown a budget hole as big as Bush, with zero enforcement against these banks.
relax and buy 10,000 shares of TZA and wait 9 months, you'll be fine. it's a game, learn to play.
Bitch as they want about not wanting QE's. None of them turned any Wall Street campaign cash away that came directly from the bailouts.
Si. Absolutamente Correcto!
Nice attitude, Seq. You got it right.
Rock the fuck on Sequitor and well said from start to finish.
They are waiting until their puppet gets elected. This is just political rhetoric and if the president was republican they would be stimulating the hell out of the economy(corporations & banks). Of course they don't want to stimulate on the chance that it might make Obama look good. The only thing the parties care about is who is going to make the big money which translates into whichever party is in power thats the one the corporations and banks are going to give the big bribes, favors, donations, ect.. to.
Paging Rick Perry, paging Rick Perry, the country is ready for your Texas fried bullshit now.
Nice voice Seq.
It's like everybody has the same brain damage in the memory area.
Including the '70s, there have never been such fucked Economy and Markets. Unfortunately, these charades can't subsist without asset and monetary artifice.
The most fucked thing about is that the Republicans believe if the whole thing collapses with Obummer in the WH, then it's his fault. And they get some kind of Assholes' Free Spin.
It's not government that is fucked, it's the Assholes who are in government.
The Democrats only claim to fame, after the Republicans had turned DC into a painful defecation, was that they looked at the curtains, and just loved what the Republicans had done with the place.
So let's be clear about the Economic and Markets BrainFart of All Time... because we are stuck with a plethora of geniuses who want to blame the current Shithole on some guy who died years ago named Keynes. He's dead and doesn't have a fucking thing to with what is going on. He's not even in an election year
The same Neo-Classical, Neo-Liberal, Neo-Conservatives who fucked the Economy are the same ones who had complete control over this fucked excuse for a Peter Pan/Tinkerbell Recovery. Of particular note are the twin Masters of Disaster.. Greenspan and Bernanke.
You can't get any more NeoClassical, Neo-Liberal than them.
When it was Gut-Check Time, the first thing The Industry of Assholes did was take their private distortions, and have the public pay for them. Next thing they did was blow so much air into the Markets, there is none left for sane people to breathe.
Whether Financial or Political, we don't need these people. We just need that which they are supposed to do.
And this entire crew has been up way past their bedtime for ten years.
Are there any options if/when Bernanke thumbs his nose at them and us. Can he be unconfirmed, maybe they pass the audit bill, do something to shake up the system? Other than giving free money to their owners one reason the Fed says they intervene is to create the perception of improvement in the economy. Perhaps they wouldn't be as inclined to do it so someone had the stones to make a scene about it. It would make a real nice election issue if nothing else.
Auditing the Fed would show how much money was given to the banks and would handcuff the FED in the future.The fed knows that amny politicians on both sides are very unhally with their interset rate manipulation;therefore there will be no action tomorrow not even operation twist
Sending auditors into the Fed is useless, they'll cook anyones books as they have done the Banks books since 2007 on... forget the crones of accountancy, just send the Police in
..afterall Bernank is now party to the biggest fraud criminal racket in American history, the Banks mortgage fraud and selling sugar coated turds (arrest the Ratings Agencies Executives too while you're at it). Benny bailed out this mass national criminal activity and the den of thieves who perpetrated it
...Benny is more than a stupid chump, he's a criminal too
NO the Republicans will await a reply to their letter. Bernie-Bob will write back to them and accuse them of BAD OPTICS> This is a bit ironic since the whole crew of them subscribe to the Helen Keller School of Economic Theory. I'm going long on White Canes and chirping WALK signals.
NO the Republicans will await a reply to their letter. Bernie-Bob will write back to them and accuse them of BAD OPTICS> This is a bit ironic since the whole crew of them subscribe to the Helen Keller School of Economic Theory. I'm going long on White Canes and chirping WALK signals.
Don't want to be a downer but compelled to point out that if you all are right and Ben does print tomorrow, you'll only have a year or two to spend your pm profits before they are either worthless or confiscated. Another round of printing will lead to a very real fiat collapse and at least temporarily,!the imposition of a totalitarian regime--pms will be confiscated and/or there will be no shit from china to buy due to embargoes. Personally I'm holding out hope that not even ben is quite that stupid. Careful what you wish for.
Excellent point.
I think the basic ZH view in terms of the Big Picture is that Ben is dangerous and the Fed a menace that should be disarmed and dismantled as soon as possible.
But there is also the ZH thread of trading and anticipating the moves by the Fed, and the consequences of their moves, in order to make money, which is not the same thing. At that level the Fed is a given and its actions of concern as they relate to trading profits and positions, which does not need to consider the Big Picture - at least not for the moment.
Yeah I get that-- dont get me wrong, I've had gld calls stacked to the roof since early 2010, just having a moment of clarity realizing this really isn't fun and games anymore. This next round of printing is going to have very real, very unpleasant long term consequences--and once they begin to manifest I believe we'll wish we'd spent our time here doing everything in our power to try and preempt the fed rather than scalping a few ephemeral profits off the last rounds of QE. And as far as the trade goes-- at the risk of committing sacrilege, I'm so convinced the Tylers are wrong on the timing of this one that I'm putting my money where my mouth is. There is a lot of merit to the argument that Ben will want to hold off on the bazooka until after Europe has imploded. Added to puts today and will hold them through the statement regardless of how giddy the market gets at the open. If I'm wrong I'll publicly bow to the tylers' wisdom.
Hyperinflation is going to happen. Their is already enough dollars out in the world to have it, as I am sure you know we just need something to happen to cause the velocity of money to increase.
Whether the Fed Prints today or in a year or 5 years it doesnt matter in regards to what happens in the end. The only thing is time, will it happen in a year or 3 years or 5 years?
I for one am sick of the wait, its slowly killing the country and delaying a reset. Whether that reset is our version of Hitler or the French Revolution, or world government or Seccession and Balkanization, I dont know, but it will be the next natural step in this disaster. The sooner we can move on to the next step the sooner we can heal this damn mess.
amen waffen
.
what ive been saying that years
great post!
Agreed-all this posturing is like having a kid w/ a really bad upset stomach, but no one want's to see how that ends up, so we keep giving the kid medicine when what is really needed is a good vomit. Putting off dealing w/ pain rarely leads to a clean resolution to the problem.
Sure and if he massively disappoints then what? I'm gonna go with THAT is the reason troops are doing a Homeland tour. I prefer staving things off a bit longer, my family isn't quite ready but are finally seeing the writing on the wall. I need another year...just like Obama.
I say he prints and to be honest, IMO it's the lesser of two evils for my situation because a catastrophic deleveraging event would probably crush my families income and render most of us unemployed. I also think it would have similar totalitarian impositions along with world war type side effects. Damned if he does, damned if he doesn't. If he prints he buys us all a year to prepare assuming he is in the 3 Trillion range or more.
I prefer that he prints for those reasons. Selfish? Well yeah, but making a principalled stand and allowing a market crash, sovereign default-orama and cascading derivatives black hole that sucks in everything into it's cavernous maw doesn't seem particularly appealing either. Especially not the likely more imminent nature of that event should he fail to print.
What you fail to see is how these satanic and Jewish (Kabbalistic) pukes believe in the power of numerology and have planned their false flag attacks for particular dates in the future (likely 11/11/11 and very likely 12/21/12). They don't wish the crash to happen before they get their excuse for WW3 and whatever else will 'warrant' further clamp-downs on our liberties. As an aside: did y'all notice how the recent 9/11/11 'al Qaeda' warnings mentioned how the Muslim enemy supposedly believes in numerology now?
As well, the longer this fraud/ponzi continues unabated, the deeper the hole and the greater the damage / cost to society. For sure we would be better off with a cleanup / adjustment NOW, rather than later, and it's not like anyone would need to starve or die for it, except for the fact that they won't ever give up the power to abuse willingly.
In any case, this is just more BS from the actors in Washington. The only time they ever speak truthfully is from behind closed doors, when they get their orders and script from their corporate / masonic masters and their think tanks...
@ Bring the Gold
"sovereign default-orama and cascading derivatives black hole that sucks in everything into it's cavernous maw"
This is pure poetry. You should write professionally if don't already.
Cheers
Thanks for your kind words Cliff!
[Another round of printing will lead to a very real fiat collapse...]---jdelano
Hi jdelano. I must disagree with your point about "one more QE" being the final straw. The final straw was a long time ago. The consequences are just playing out.
Even if the Fed never prints another USD, the US and global economies are collapsing---as we speak. The financial system is undone. Markets are disfunctional. Price discovery is impossible. Real human suffering is near untenable even here in the wealthy US of A. Nations are preparing their armies to combat social unrest.
PMs? A time-test way to park my money---where I can see it. Only a fool thinks he/she will live out a life of the Rich and Famous in the world of hyperinflation. More like he/she will spend all day and night protecting said PMs and outwardly pretending day and night that they don't have any.
With all due respect, where have you been for the past 4 years?
Point taken. Guess why I see this as the nail in the coffin has to do with the rumblings out of china--don't think that the QE we've done so far will necessarily lead to China abruptly dumping the dollar---thus far it's still in their best interest to gradually wean off the dollar, which gives everyone time to maneuver and acclimate to the new paradigm-- but another round or two of QE will, I'm convinced, lead to a rapid escalation of hostility and paranoia that will end when the first central bank decides to be the first to dump the buck, triggering an avalanche as all the others race to get out before the bottom. Thus a sudden collapse and all out war as opposed to a slow fade.
jdelano, I think you are wise to include China in your formulation.
I think most folks in-the-know are aware China is lying about their economic numbers. I don't think anyone in-the-know really believed China would be the engine of prosperity to pull the west out of a "recession."
China can maintain their inflated bubble economy a bit longer than the western world because their economy is highly centrally controlled. And they are a creditor nation. But in the end the Chicoms cannot avoid the laws of economics.
I agree the next step downward in the markets and economy will be breathtaking. IMO, the market/economy is working downward in steps. We're slipping over the edge of the next step now.
Now is a good time to catch up on last minute preps.
Best wishes.
This isn't the '30s ... it's a whole nuther world. For one, it's not anywhere US/wester-centric these days. Much of the gold holding is now outside the US; so what policies the US might adopt doesn't mean so much. Further more, an attempt to confiscate gold in the US would be crossing the rubicon .... many (with guns) would go postal. A moot point anyway due to my point #1. So too if the criminal US gov attempts draconion taxes on the buying/selling of PMs. Much of it is already outside the U.S, beyond its control.
Gold/PMs holding has gone worldwide, the U.S. (whose citizens hold percentage wise --relatively little) is but another player in the scheme of things.
As I said at the beginning .... this isn't the 1930s.
Isn't it? If there's no bread in the stores, what good is being a millionaire?
Same argument applies to the gold standard. The second it is implemented, china and the arabs will have something very shiny and heavy to send back in those container ships/tankers they send to the western shores.
Well for one I can pay off my house and all of my debts.
As for Bread, thats why you should already have flour, wheat etc and a hand grain mill at the ready.
If you need eggs, well as someone on zerohedge, you should already have chickens and or ducks.
As for milk, again as one on zerohedge who knows whats coming, then you should already have a goat or goats.
As for food, you should already have a shitload of food, vitamins etc stocked up.
One last thought-- I first started buying gold because of John Paulson. His original thesis was based solely on QE1--he believed that qe1 would be a success, igniting the recovery and boosting equities with the side effect of inflation. His initial target for gold, BASED ON QE1 ALONE was 2K. He didn't endorse QE2 and claimed to be startled by the Feds decision to proceed with it. I mention this just to illustrate that this is no longer the trade guys like Paulson wanted. The fed and the economy have indeed gone way off the rails and the new helter-skelter course the country is on was not "The Grand Plan" or some Machiavellian design of the all powerful elite. The events of this fall are a mistake--if the elite ever were in control they've lost it. To believe otherwise is a self-protective delusion. In a lot of ways it's easier to convince yourself that an evil-omnipotent group of shadow men are following some neatly-tailored design for the new world order than it is to accept the even grimmer reality--those shadowmen don't exist and Ben Bernanke has no idea what the hell he's doing. Within the privacy of his mind, the Bernank is terrified.
Short response +1.
Bernake does know what he is doing, but he is terrified. As WB7 illustrated recently, he is the Dean of a morally bankrupt ivy league college campus with two opposing fraternities in perpetual shennanegans with each other. (D/R) He can't kick either out, so he just has to clean up the messes.
The masters of the universe types like Wilbur Ross, T. Boone, Bill Gross, and Jack Welsh look completely washed out when they are on the MSM channels lately. When welsh did the circuit a couple of months ago, I think it was on Peirce morgan. He gave his speil about how awesome G.E. was, eyes sparkling, hands waving, jokes about "heh I put $5,000 in that guys pocket today. He and the wife are going to have a randy weekend." ... when they asked "What went wrong (the genreal collapse". I almost thought he was going to cry.
The partisan titans like Buffet, Clinton, Murdoch, Ted Turner, Trump, Koch Bros. are pretty much the same as they ever were. Hucksters who never grew up. Throw a temper tantrum here. Decide an election there, then walk away. No skin in the game after the glow wears off.
The evilest of the supposed "shadow men" in this cluster are the DSK/Eric Cartman from south park types, who are all of the above and just dont give a shit. "I do what I want."
The elite families stay elite through these cycles. They have been storing the ZH cornucopia for centuries. They are transnational. They coud give a rip if every soverign goes bankrupt. They would preffer Ben come up with the best solution, but they will be just fine if he doesn't. Let him take the stress. He volenteered.
Meh, PMs are for WEALTH PROTECTION, kinda like insurance, NOT for trading/investing.
Clearly theatrics but it's good to see this become part of the national conversation. This needs to be an election issue.
Except Boehner and pals have had too many martinis this late in the day to compose that letter. While it may be nice to have a discussion about the Fed's printing press, these Rebulican tools could care less about the economy, nor any of its participants, they just look desperate.
The letter is code for "fire up the printing presses".........since when does anyone in washington care about the American people?
these guys are whores to hedge funds and big money center banks and connected at the hip to the Military Industrial Complex.........print or die..........
ditto ghost. Not a spine among the bunch and not any within the circle of corrupt influence to kick the garbage to the curb. republiCONs or demonCRAPS. Two heads same snake.
These fuckers (not to be confused with Demfuckers) are really playing with fire. Telling a partial truth, only when it is convenient, and only when it is framed in a paradigm of deceit, is a character trait first invented by satan.
This metaphor also comes to mind:
http://www.ehow.com/info_8472214_do-widow-spiders-eat-mates.html
Mitch McConnel and John Boehner will Own the Coming Depression and Market Collapse with their vow to destroy Bambi.
Mitch McConnel already owns the debt downgrade. It seems these guys are not very smart.
Just Say No is not a really smart stance when they were the party of deficits don't matter and 6 million jobs lost.
Allthough I agree with your comments I am as frustrated as everyone else with Washington, however, what the hell do we do to shake up these misfits of the midway. We should call threaten a Gvt. shutdown, downgrade the debt, civil disobediance in the union halls, create class warfare, investigate a watergate type hearing(Solyndra), have entire countries declare bankrupcy, have 24 million people out of work and on food stamps and throw a pervert out of the House. If only these events would happen I bet Washington and the President would get to work and draft an awsome jobs bill and recovery act.
"Just Say No" only works when you're in the minority. They won the house and don't know what to do with it. Got the tiger by the tail.
Except Boehner and pals have had too many martinis this late in the day to compose that letter.
I count 335 words. No spelling mistakes and every sentence has a subject and a verb. Truly, an inspiration for us here.
I doubt dollar stability is the primary reason behind Boehner pressure on Bernanke. I suspect the primary reason is to make sure the economy is in terrible shape by Nov 2012 so O'bama's defeat is assured. That said, I am not an Obama support, nor a democrat. I've largely voted for GOP candidates.
Consider that the GOP praised Greenspan when he lowered rates to 1% in 2004 and when Bernanke bailed out the banks back in 2008.
Sounds about the size of it to me. This soul searching and angst just seems a tad contrived.
Elect Ron Paul and the issue becomes moot.
Wait. so the Republicans don't want more money in their pockets??
Or are they setting an example comparison for Big O?
The republicans make money<->power via the tax code, both corporate and personal. That is why they take an oath to grover norquist 1st and the us constitution 2nd. The tax industry is just as powerful as:
The democrats make thier money<->power via entitlements, including trial lawyers like john edwards abusing the tort system.
Third parties make dont make any one any money. that is why they cant get elected. The next 14 months are going to be knock down drag out of retarded polarizing crap 1. Buffet rule vs. 2. regulatory reform. The constitution tried to prevent this crap but failed. The Fed is just the "cut man" for both corners.
Vote for Ron Paul in 2012. His sound money policy is what a doctor would do. and tell them to not fight 'cause there aint gonna be no $50,000,000,000 gucci purse. The pubs are just writing this letter cause norquist is still hurting from the ethanol subsidy loss.
I got news for ya: Ron Paul is a Republican. Worse yet, he's a long time Washington insider who was partly responsible for foisting Ronald Reagan on us, apparently (his ads try to speak of this as if it were a positive!).
How about looking outside the two mainstream parties? I would vote for a libertarian or Pirate, only they would need to question the BS 'official story' on 9/11 and talk about putting Bush + Obama in jail for war crimes for me to believe in them. RP is milk toast and totally mainstream, no matter what the psy-ops try to make you believe.
In any case, this won't get fixed by any politicians: an honest one would get killed anyway. It's not until the vast majority of Americans is awake to the propaganda/matrix and seriously angry/revolting that things will ever change.
As others have mentioned. We are at the cusp of double digit, followed by hyperinflation. I am past the point of party, other than what it takes to get a candidate on the ballot in all 50 states. The only thing that is going to save the ship is
1) Remove water from the bottom six decks by implementing a sound money policy. Which Ron Paul will do. He will not implement a gold standard. He will not end the fed. But if he signs/vetos every bill that comes across his desk using a sound money compass, that is all he ever has to do. no speaches. no weekly radio address. no trips to marthas vinyard. no fund raising cause its one and done for him.
2) The other option is Hermain Cain. If we are going to be awash in capital, implement a 3 page tax code such that it forms properly.
The fed wants Ron Paul. But they would actually preffer Cain (he was one of them) They can say they staved off the wolves, and thier watch is over now. The fed truly despises the puppets in the establishment D/R frat houses. Check out what Timmy, Ben, And Greenspan have been saying since the collapse.
wisefool - do you know Hegel?
Let me help you out here. They both work for the banks. The rest is just window dressing for your entertainment.
Of course. Banks are just as nessecary as seed grain is in agriculture. They are required accomodate the human arc of life in the modern cultural paridgm.
When you are young and you need to work the night shift cause you dont have senority to get the day shifts, the bank will loan you money to buy heavy curtains so you can sleep during the day. However, when you do get seniority, and can work the day shift, you should not borrow more money for lace curtains because a politician/government tells you that you are entitled/required to upgrade.
But if you do want to borrow more money for lace curtains, the bank does not FORCE you to do it. You can say no to them, but unfortunatly you can not say no central planners/politicians. regardless of who works for who. That is the false dichotomy which created this moral hazard.
of course they do, this just gives them cover so they can pretend they are opposed to QE3 knowing that BB is out next go round anyway.
it didn't stop the bernank last time and it won't stop him tomorrow either.
Congress Critters are beholden to, and bought and paid for by the same masters as Ben serves. Ben doesn't take orders from subordinates like McConnell. Boehner should go have a good cry.
Wow! Boehner just keeps surprising me.
Bernanke's bar for more "action" just got raised. Will he really try to argue for the benefits provided by QE2 in terms of inflation and unemployment?
Will Ron Paul act on this opening?
Will Rick Perry stomp onto the FOMC "stage" and call it a Ponzi scheme?
And I was worried the next 24 hours were going to be dull!?!
barliman
This disingenuous barking of the right head of the beast almost makes me wish the central bernank cranks a quadrillion more clownbux into bananaconomy.
Almost.
I love that word CLownbux, it is so fitting.
Ah, political theatre, thought I think I've seen this production before.
Let's remind ourselves of the five big problems we are facing at the moment:
1. There is too much debt in the developed world, both public and private, and economic growth is insufficient to reduce it.
2. The budget cuts required to restore public finances in both Europe and America would damage growth and make matters worse.
3. Monetary policy is also exhausted.
4. Banks are under-capitalised, especially in Europe, where they hold about e400 billion worth of sovereign debt in countries that have no hope of paying it back.
5. Politics in America, Europe and Japan have become totally dysfunctional, so that the morons are constantly behind the curve and unable to rebuild public confidence with decisive action.
Have i missed anything?
The end?
Screen, meet scotch.
Moral Hazard has been unleashed and no one trusts anyone
You forgot the well-oiled propoganda machine that is the mainstream media.
Goddam right, how can they take themselves seriously?... and they do.
What are the Vegas odds on QE3? I'm actually thinking they may do nothing and wait.
Look out BelOOOOOOOOOOOooooooooooowwwwwwwwwwwwwwww.
Actually, I am hoping for that. Another deflationary scare. That will create a Stacking Sale!!
If there is a big surprise tomorrow that will be it. There are way too many negatives for a big QE IMHO, so it's Twist and maybe excess reserve interest cuts with continued QE lite. They'll throw in something for liquidity but nothing that's not priced in already. If things are going on behind the scenes (threats from China) we might get another delay.
So is there any indication that the in-the-know money is front running the decision?
so the supposed representatives of the american people, including the speaker of the house, now plead with a bunch of unelected bankers to make a decision that will affect the entire nation for generations...i'm sure the founding fathers would be proud
Post of the day.
Totally, agee. Well said, sir.
The ghost of General Jackson ain't exactly dancin' a jig. Pithy post indeed.
I would agree with the quality post, but just because ben prints doesn't mean the govt has to borrow. Why doesn't boener add that to his friggin letter.
Thomas Jefferson said it:
"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."
agree. Lexington concord
agree. Lexington concord
But but all our short positions are in
bother thing, why send that letter and what has been leaked to them...or what's the scuttlebutt on the hill?
this is just more rearranging of deck chairs on the titanic
Hilarious. "Representatives" of the People, begging the Central Bank to take/not take certain actions that will leave thousands, possibly millions, more impoverished at its conclusion.
The people need to elect representatives to effectively beg to not debase the currency? Interesting system.....
the world is not compartmentalized
They spoke out against the money printing before they voted for it.
You may have hit the nail on the head here. After the DOW tanks, they and everyone else will be "begging" for QE3.
Remember when America used to innovate and produce products? When price discovery was based on actual value and fundamentals actually meant something? That was so 5 long Bernak years ago.
I would have worded it a little differently.
Dear Chairman Bernanke and Board,
We are revoking your charter.
Sincerely,
nmewn
p.s. please don't let the door hit you on the way out...tip
The trap door.
down the rabbit hole
100+
We don't need a zero interest rate policy.
We need a "zero fed" policy.
Priceless.
If Bernake ignores them and does it anyway, what are they going to do? Call him in front of congress, again? He's like the Honey Badger. I think the bigger problem will be when they announce it tomorrow and then Europe sh*ts the bed next week and they have no more ammo to stop the freefall. I would think they'd want the problems of the world to be mostly fixed before hitting print to ramp up the markets rather than trying to stop a freefall. Who knows, I'm keeping an eye on commodities.
those nudniks ain't gonna do dick.
True, but, geez, they could arrest him for treason, if they had any morals or balls in the first place.
The honey badger:
http://www.youtube.com/watch?v=4r7wHMg5Yjg
This is funny, and I know the guy that narrated it, funny shit.
Funny is an understatement.
We could use some Original Narration by Randall for the FOMC meetings and/or Congressional hearings.
I don't think we're going to get the full QE treatment tomorrow mainly because Europe is such a basket case and could undermine its effects. Why blow his wad and throw his candy into a shit storm? I say he lets the market tank, but not too badly, say a 50% retracement to the 2009 lows. Then, when the dust has settled, he opens the flood gates, and voila: November 2012, new highs.
It doesn't matter if he prints 1 trillion, how did he lend 13 trillion and the balance sheet did not expand? He will support Eruo behind the curtains, that is why Timy went over there to give pointer on money printing.
Honey Badger don't care.
Supposedly Ron Paul would get "offed," just like JFK and Lincoln, if he tries to interfere or end the Fed.
So will Boehner get offed?
Hey Bevis,
Did Boner get off? huh huh huh
.
The Republicans have done and are doing everything they can to destroy confidence in the regulatory and fiscal policies of the United States. Who do they think is going to fix it - the magic fairy?
Lead, follow or get out of the freaking way.
Regulatory and fiscal policies as in I'll watch you while I watch porn?
The Magic Fairy might have a chance. Hopey the Clown, not so much.
"Confidence in regulatory and fiscal policies" of the federal government is what makes us prosper?? What a Washington / government centric world view -- how depressing. You honestly believe government knows whats best?
We need people to not look to government for their success and prosperity, to take care of themselves and their family and not be a burden on others (via government). We need the government to get out of the way with its redistributionist, know what's best for everyone central planning - what arrogance.
Give everyone a true mechanism to capture a 3-4% 30 yr fixed mortgage rate and you will begin to end this nightmare. Helping the banks is like giving and aids patient antibiotics.
I don't think that will work, but I gave you green for the picture and the name. Right on.
There will be no official QE3, anymore exported inflation to China (which is probably in the crashing stages i.e bubble to bust) and China will drop the big one, major dump of UST's. No problems at all.
We will get a rally, but muted, the EZ will start up again + China
yeah but gold will still be bid.
Wasn't it the idea behind the FED to remove politics from economic descicions process?
its not an idea, its part of the CHARTER. Read the law passed in 1913, I meant the FRAUD passed in 1913, NO AUDITS, influence, or pressure to be excerted on the PRIVATE BANK.
The idea behind the fed was to create an extra-legal entity beyond the grasp of voters (the public) therefore their representatives.
Our representatives (back then) abdicated their responsiblity to coin the nations money...something we did not empower them to do.
It is a fraud.
Gave authority to coin money to the Fed and they printed Clown Bux instead.
Its a fraud because we never gave them the authorization to abdicate their responsibility or to force an illegal currency on the states.
This goes back a very long time, to even before US Grant packed the court to benefit the bankers of the NE...it goes all the way back to the very founding of the republic...in stocks, the tulip principle I suppose...lol.
"They" have always been there my friend...Jefferson knew they were there, so did Jackson.
People who earn a wage in credit fiat should, by now, most certainly know they are still there.
I'm of the opinion the value of wheat never changes (aside from the scarcity of a poor harvest) only its price when measured in a devaluing fiat currency. Which should tell anyone all they really need to know about debt based paper fiat...that 1964 quarter still buys the same quantity, if not more.
good point, bro.
I'm still wondering what the total inflation rate has been since 1965?
Not just annual inflation rate.
the value of wheat never changes... only its price when measured in a devaluing fiat currency
And to trot out a tired old (but true) trope for the benefit of those just fresh to Tylers Joint. An ounce of gold still, as ever, buys one fashionable, bespoke suit. Just as an ounce of silver will always buy one gravid sow, a milch cow, a goat, or a mule. The so called "price" of gold is simply a measure of the current value of the fiat it's "priced" in.
TYVM, and now back to our regularly scheduled (non gold) thread. ;~p
great point!
an oz of gold is worth an oz. of gold
it doesnt go up in price, it just takes more fiat to buy it.
Dear Mr Bernanke and company,
Please don't listen to those Republicans who ask you not to ease.
You go ahead and print to help our failing economy. Besides I have every penny
I own tied up in physical PMs and have borrowed to the hilt
against my house to buy more PMs. So I and all my friends here at ZH ask
that you man up and not give in to whiney Republicans. You show them
who's boss and print til you run out of ink. Yours truly, Zorba
Hahaha! Zorba this is the funniest sh*t I have read all day. Thanks I needed the laugh!
Please make it rain!
Yawn.