Fed's John Williams: "The Global Financial System Is Experiencing Great Stress"

Tyler Durden's picture

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TruthInSunshine's picture

San Francisco Fed's John Williams = Captain Obvious, and he's here to save the day, too.

This is why the braniacs at the Federal Reserve get paid the big bucks (and ultimately migrate to corner offices at Goldman & JPM's Headquarters when their 'public service' is done).

CrashisOptimistic's picture

Odds are pretty high he was paid a speaking fee for this drivel.


Herd Redirection Committee's picture

No doubt.  Gotta love this crap about 'SIFI' systematically important financial institutions, meaning 'the status quo', and 'don't try to change anything or we will be forced to deal with you most unpleasantly".

Come on, what we need is a Great Reset.  For all these banks and billionaires to be wiped out, and we start from scratch, using sound money.  Jubilee 2016, here we come!

BTW, check out the latest from the Capital Research Institute "BiMetallic Standard, FAQ":


"Here at the CRI we have been calling for a return to ‘sound money’. What does that mean? What does it entail? What does CRI think this would accomplish, exactly?

First, it is crucial to understand, as more and more people are everyday, that our current money system is dishonest and crooked. We are talking about the fiat fractional reserve system, whereby new money comes into existence when banks extend credit (out of thin air). Fiat can only be exchanged for more fiat (unbacked).
The major differences, then, under a sound money system would be in terms of where NEW money comes from. Currently private banks get to decide when new money should be created, and hence, business conditions for THOSE private banks will determine the money environment FOR EVERYBODY. This is the current situation, where banks are so illiquid and insolvent that they plainly refuse to extend credit on reasonable terms. This results in a feedback loop such as the world experienced in 2008 (when credit dried up) as well as what we are experiencing currently.

Under a gold/silver BiMetallic Standard the price of gold and silver would both be fixed..."

AldousHuxley's picture

"Great Stress" = "No Money"


When cops go to the Fed to ask Bernanke the superman for more money: http://www.youtube.com/watch?v=JRzifyG7G9E&feature=related

Pituary Retard's picture

Read the headline too fast. Thought it was insight from John Williams of Shadow Stats.


TruthInSunshine's picture




***Breaking News Alert***


San Francisco Fed's John Williams urges parents not to let toddlers place plastic bags over their heads for extended periods of time.


***This Has Been A Breaking News Alert***

Oh regional Indian's picture

Notice all the Fed poodles are making end of world speeches. poole yesterday, Williams today, Brrrrrrrnanke Panky just the udder day.

I think we can all count on a crash filled week coming up. And a rumor filled wek-end.  No weekend for Zh, gotta stay on the ball.

Memes for the Imemine crowd, the end is nigh. Don't cry, baby, the Beard will save us all.


YUCK, only in America?

PY-129-20's picture

That Austrian lady killed the ending - ORF! But the Imperial March was a good selection, Tyler.

TruthInSunshine's picture

In other news, The Bernank is blaming consumers for the shitty economy (from the truly WTF files):

WASHINGTON —Ben S. Bernanke, the Federal Reserve chairman, offered a new twist on a familiar subject Thursday, revisiting the question of why growth continues to fall short of hopes and expectations:

Fed Chief Describes Consumers as Too Bleak


You really can't make this shit up. It's just...not.....possible.

I wonder if The Bernank has a working theory of econometric model hazarding a guess as to why consumers are "bleak"? Maybe he could plug 18.7% U6 unemployment, depression level housing values and record number of underwater mortgages, trillions of taxpayer extracted monies literally given to Wall Street/Banks, 20% to 50% household wealth destruction, 11% rate of real inflation, surging tax/permit/license fees and rates that are growing like crazy, prolific government deficits and a growing national debt, crashing currencies, etc. etc. into a model and come up with a theory.

RSloane's picture

I cannot understand how someone this moronic is the Fed chair. I just don't get it. Surely he has to leave his ivory tower once in awhile to buy some milk and butter thusly mingling with said bleak population. Did he ever ask once why they were so bleak?

Jeremy Roenick's picture

If by "great stress" he means with a loaded gun, chambered round pointed at one's head.... Then yes, great stress...



Idiocracy's picture

Yes, don't you just love the term "public service" as self-applied by uber bureaucrats and politicians?  No doubt Attila the Hun congratulated himself for his widspread public service as he smoked his pipe in genteel retirement

GeneMarchbanks's picture

Great stuff. The other John Williams would be proud. This "Bizarro" John Williams is an academic ponce.

Shadowstats rules!

Irish66's picture

the decisions we make as macroprudential supervisors will be hard to get right

caerus's picture

they should play that when the bernank appears before congress

doomandbloom's picture

"This is the end...
Beautiful friend..
This is the end..
My only friend, the end
Of our elaborate plans, the end
Of everything that stands, the end
No safety or surprise, the end
I'll never look into your eyes...again..."

Clorox Cowboy's picture


"The global financial system is experiencing great stress as it adapts to the new, post-crisis rules of the game.  Those new rules are both explicit and implicit.  They call for more capital, reduced leverage, lower risk appetites, more thorough supervision, and stronger regulation, at both the systemic and individual institution level"


I'm sorry, but which game is he talking about...??  I'm not aware of anything financial with rules like that.


Poetic injustice's picture

He is talking about small and medium businesses. Regulating them 10x more will save economy and revive American miracle.

j0nx's picture

Duh. Another ivy leaguer here to tell us what we have known for 4 years now. Where would we be without these geniuses..

Robslob's picture

So have we gone from Hopium to Stressium?

dick cheneys ghost's picture



dont tell that to the whores in washington..........

Cdad's picture

News flash...BlowHorn [CNBC]...Why Are We Falling?....

"We were expecting clarity out of the Obama speech [lol], but things are now even more unclear."  Gordon Charlop  Who is anyone, including Gordo, kidding with this crap?  

MORE FUCKING PINK SLIPS IN THE BANKER ZONE!  NOW!  Not next quarter, not next year....NOW!  Capital will not form under the leadership of this sick assed group of group think, HFT scalping, lying, morally challenged people.  If Gordo actually believes what he just said, he should be offered early retirement.

The S&P is not even worth 900...not with this crew at the helm.  In fact its true value is absolutely zero until integrity is restored.  And that means these folks have to go.


Cdad's picture

J. Najarian throws his cred on the same funeral pyre...talkiing about the same high expectations for the Obama speech, and then announcing he has no long positions...this after he just argued for a higher market and a lower VIX LAST NIGHT...and is now offering his S&P put spread...for sale.

All of them...need to go.  Zero cred actors, zero cred BlowHorn network, zero cred computer manipulated market.  There is nothing left here for capital to invest in.  Turn out the lights at the NYSE...you know, after asking Germany's permission.  

Sancho Ponzi's picture

The problem with the Central Bankers is that sooner or later you run out of other peoples' liquidity.

MsCreant's picture

The challenge is to design a regime of macroprudential supervision that maintains financial stability and maximizes long-term economic growth.

What would happen if we didn't do this? Hmmm?

What if we dumped the whole thing? Would we be any worse off than we are now?


Robslob's picture

No "we" wouldn't but "they" would be...

MsCreant's picture

Robslob, "we" let "them" decide for us. It can be no other way.

We were born into it. I was told this is just the way it is. You probably were too. Each of us has decided to question how and why this is happening. But every time we participate in the system without the goal of dismantling it, we comply.

But your point is delicious and stands, "they" would not be okay.

slewie the pi-rat's picture

ya think we hava choice?  i sure hope so, msC/Z!  as one "insignificant" peon at a time gets tf outa "dodge" and stays out

otherwiZe, the Council on Foreign Relations will just keep "winning" by establishing so much chaos, confusion, poverty, illness, and death, that the hypnotiZed will demand rockefeller et. al,'s NWO to become the legal fascist owners of the whole damned plantation

MsCreant's picture

It sounds so paranoid, but what is an SDR? What are these regulations they speak of? Crash it hard and we beg them to rebuild it better, stronger, faster, more centralized. It will be a lean mean stealing machine, baby.

What needs to happen is for everything to become more localized. It will save resources and make all the decisions about the environment, regulations, etc., personal rather than one size fits all and/or depersonalized. Nature abhors centralized systems, they are too fragile. She likes redundancies and small, intricate, interconnected parts that flow together. Destroy one part and you do not take down the whole system in nature. Destroy one part and apparently you can take out most of the economy.

I am afraid we/they will have to make the mistake to learn the lesson.

Bicycle Repairman's picture

"What needs to happen is for everything to become more localized."

It will reduce the too powerful.  It will make the opaque more transparent.  It will increase accountability. 

Never mind the "ism", just decentralize.

TruthInSunshine's picture

I'm waiting for The Bernank to step in and start buying NFLX, PCLN & LULU, because it's critically important for the health and welfare of the bulk of the American Population, whether employed or (increasingly likely) unemployed/underemployed, that The Bernank Virtuous Circle™ Econometric Model be given full support.

NuYawkFrankie's picture

Re: "The global financial system is experiencing great stress as it adapts to the new, post-crisis rules of the game...."

POST CRISIS?  Uuughhh?

Must be the FEDs way of saying that we have gone from the CRITICAL stage - to the TERMINAL stage.

Hephasteus's picture

No. The rules of the game are not reduced risk.

IBM, Amazon, HP, AMD and everybody else are charging forward with cloud when people are telling them to go get stuffed.

Phones are tracking, spying when people are telling them go get stuffed.

Credit is shut off because nothing the centralized planners do not want is going to get any attention or resources.

This is end of empire risk levels with no path forward.

Idiocracy's picture

Bill, please don't show us your O face, nnnn'kay?

Bill Lumbergh's picture

You know I save that just for Joanna.

caerus's picture

jim rogers on cnbs

Irish66's picture

He is right.  I wish they would let him keep talking

The Count's picture



ON another note.... look at this link.... http://consultingbyrpm.com/wp-content/uploads/2011/09/ron-paul-gets-it-a...

Don't you just LOVE how the mainstream media is using every dirty trick in the book to make sure Ron Paul gets no traction? Look at his bar compared to Romney.....

MsCreant's picture

I am not sold on Ron Paul but that is so blatant it is criminal enterprise. Ron Paul's people need to be suing someone. Holy hell, Count. They are not journalists, they are criminal clowns.

Abiotic Oil's picture

When the same people that own the banks own the media and someone comes along who endangers their counterfeiting operation...

Operation Mockingbird Bitchez!

iDealMeat's picture


Who is Ron Paul?





@ MsCreant, I'm not necessarily sold on him either because of his pro-life views. But, MSM and the establishment can stand him..  So I'd vote for him.. If I even bother voting this time. 

PulauHantu29's picture

How long do you think it would take the median household to save $231,000?



PulauHantu29's picture

Amazing Stats. Why doesn't the Gubberment encourage people to save more instead of cheering thejm on to spend and take on more debt?

TruthInSunshine's picture

Because the Ponzi that is any economy built upon the foundation of fractional reserve banking practices depends on debt issuance, at an exponentional (truly exponential, and not just figure of speech or rough use of language) increase, for its very survival.

When debt issuance, whether due to reluctance to loan fiat or reluctance to borrow fiat, stops growing at an exponential rate, the system has already begun its process of collapse.

Segestan's picture

Step one..... Stop out sourcing American jobs, close the borders. All the rest of the  problems will subside in due time.


PS... throw the Fuckin UN out!!!