Former Fed Governor Heller: "Fed Will Not Act Before Fiscal Cliff Resolved"

Tyler Durden's picture

Perhaps it is the weight that is lifted from having to tow the propaganda life while under the influence of the Fed, but Robert Heller (ex Fed Governor) just laid out the 'translated' version of Bernanke's speech this morning. "I don't think the Federal Reserve will take any action, certainly not until the fiscal cliff, the fiscal uncertainties are actually addressed," which is similar to our interpretation of Bernanke's comments as he added "if they're not addressed and the economy falls off the cliff; yes, then you may get QE3," but "I don't see that happening before the election!" This great interview - somewhat stunningly truthy for CNBC - is well worth five minutes of your time (on this ever-so-hectic Friday before Labor Day) as Heller discusses teh fading impact of QE, the risk of enormous losses for the Fed, and the danger of believing in a 'safe' exit strategy.


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Precious's picture

Capitalism's beauty is that investors are punished for misallocation of capital.

The FED removed causation and thus destroyed American capitalism.


diogeneslaertius's picture

removed causation = decoupled from reality = economic deathstar hologram

Pladizow's picture

CNBC, MSM, Washington, Wall St: BLAH BLAH BLAH!

Just buy PM's!

stocktivity's picture

Just more of the same ....they stand ready to fire up the printing presses and hopium is kept alive. Now the count down starts for the next Fed meeting. Will he or won't he.  It's all Bullshit!

theXman's picture

I've seen a few Robert Heller interview on CNBC and l have always liked it. His view is very close to common sense.

DoChenRollingBearing's picture

Yes, Pladizow.  

+ 1

Just buy PMs.  Best diversification and best store of wealth in town.  Shelter from the coming storm.  Pb is also another friend you should get to know as well.

Race Car Driver's picture

I dunno... I think there are better preps than Peanut butter. Espescially since peanuts are now a GMO product and Pb is no longer packed in glass jars (I'd rather risk breakage than poisoning from plastic leaking toxins into the Pb).

jekyll island's picture

Pb is the atomic symbol for lead, not peanut butter.  Pb doesn't come in glass jars, it is in boxes with 50 single use units per carton.  

LawsofPhysics's picture

I'd say it is a bit more complicated than that.  All any truly free market is supposed to do is serve as a place where prices are truly discovered.  Good management, good ideas and good behavior is rewarded in the pricing and bad management, bad ideas, and bad behaviored is allowed to fail.  Sure, investors, like the corporate owners and management should be the ones paying back the creditors and not the fucking taxpayer.


Now when is the last time this market worked like that.  Ah the smell of fascism and "mark to fantasy" accounting.

Stupid fucking sheep.

Nobody For President's picture

But LOP, that would require Rule of Law and the end of moral hazard - ain't gonna happen when TPTB own the so-called lawmakers... 

Nice sentiments, though.

vast-dom's picture

gold and oil outperforming the fake SP 500 hopium levitation today. what a bad joke this all is. and the hot hopium air is slowly seeping out of the indices....

DoChenRollingBearing's picture

vast-dom said:

"and the hot hopium air is slowly seeping out of the indices...."

Nice!  + 1

Zero Govt's picture

Precious : "The FED removed causation and thus destroyed American capitalism."

Agreed.... but the Fed IS the destruction of capitalism even before policy begins.. the Fed is a monopoly on money (tokens for trading value)... capitalism requires the competition mechanism (a more technical word for freedom) to operate at its most efficient and effective

The Fed, like Govt, is the enemy of freedom/competition, it is a stinkingly corrupt private cartel monopoly 

Republi-Ken's picture




Geeeeeezus F Christ.

Why is everyone Republican so oblivious to the obvious???

malikai's picture

Translation: We will not act until the S&P is at 1100.

Zero Govt's picture

"the Fed will Not Act before Fiscal Cliff is Resolved"

Translation: the private cartel behind the Fed will not act to save the stupid politicians until they introduce budget cuts that secure their interest payments (ie. blood sucking vampires/bankers of whole nation States)

it's 'who blinks first' time ...the dumb US Govt blackmailed by the private cartel they gave the monopoly to

...oh the irony, musn't laugh

slewie the pi-rat's picture

oh, bullshit, mal_i, old sport!

the FED-Treas acts every day (and twice on sunday!); stop pretending that isn't ALL you are watching and trying to "perceive";  the checks will be in the mail next month too

maybe the tooth fairy handles that in yer world, but not in slewie's

their vigilance covers every nano you see and three dimensions beyond your fledgling fascinations of their machinations

this is the civil dialogue slewie has ears to hear:>  the FED sez:  we're doing our JOB;  fuk everybody that doesn't get it or "like" it!  any extra monetary koolAid will not even be considered before my bosses, [the congress] address the fuking mess

:>  the congress sez:  you are doing great too!  and these huge fuking checks we get for ourselves and our cronies are the cat's me-OW!  we promise to address everthing just as soon as we sober up from the inaugural ok?  that would be sometime early next year;  if it isn't too cold, of course


malikai's picture

You're right. We should never forget who the FED crones work for.

Just one thing.. Where's my check?

slewie the pi-rat's picture

i haven't been getting mine long myself

never played "disabled";  just a personal choice b/c i was always thankful to be relatively healthy and in the game of life for a while with some pretty cool people and times, too

so ya hafta "work" and get a "FICA deposit" for 40 quarters (ten years)

so for a 25 year-old, 1/4 per year over the next 40 years ya hafta get a paycheck.  once a year, basically, for 40 years;  one PAYCHECK a year!  'work' 1 week a year for 40 years, BiCheZ!

then depending on whosie & whatsis, when you get to be 65, m/l,  depending on whatever, ya getsa check!

i hope it is bigger than slewie's!

i started in 1960 and had a coupla years mandatory military enslavement, er, "service" which, of course, didn't "count"

any other questions, please contact yer friendly federal goobermint!

Cognitive Dissonance's picture

Stuff a gage in him pronto. Who let him out of his cage? Did you see what he did to the Ponzi market?

Bicycle tube repair kit on aisle 3 stat. And why aren't the emergency pumps coming on?


JohnKozac's picture

yes, he just drove FB down another 5%.

smlbizman's picture

how about that fella williams from san fran, not that theres anything wrong with that...


How long till' all these Fed heads have the word "former" in front of their names? 

CPL's picture

When they figure out how to print gold and silver so they retire with something worth something

LoneStarHog's picture

"Fed Will Not Act Until Fiscal Cliff Resolved" -- Wile E. Coyote

diogeneslaertius's picture

the austerity train does not need to go off a cliff


and the real story is the Economic Tyranny all of this represents - we are literally like the NWO piss boys (mel brooks reference)


a basic translation of both talking points is better as "we will quietly continue to run a massive pipeline off the books and we will not have a pleb slush funding mechanism until such time as the people get really desperate and are ready to take it in the ass even harder (i.e. whatever policy is next)"


my gut says maybe firearms or something else, anyways, why waste a perfectly good political leverage mechanism, drink no wine before its time


and the underlying reality that is bursting bottles like a new wine is that all the volume is institutional algos (the economic deathstar hello mcfly) and QE at this point is like dry humping your cousin

Spastica Rex's picture

History of the World Part I = +1

"They are my people, I am their sovereign; I love them! PULL!"

Snidley Whipsnae's picture

Where oh where did I put that SAFE EXIT STRATEGY? I was toying with it a few months ago... hmmm

Maybe it's put away in the hopium bin? ... gotta find it

slewie the pi-rat's picture

why?  who put you in charge snide?

the "exit strategy" was way more than a few monts ago at least from the FED altho "people" whom you read & respect may have been jacking you off about it.  do ya have a link to the FED which is under 3 months young?  talking about "exit strategy"? 

a year ago last May we were blogging on this and even before that on the agora sites

and of course, there was NO WAY the FED could ever fail to destroy everything then, either...

b.c you see thet didn't have en exit strategy from "QE"

they can just stay at ZIRP until the pols decide things;  isn't that the "plan"

wtf does the FED care at this point?

they can only do so much.  that IS the point, ya know!

they are a bank and they make loans and regulate the "finacial system"

what the hell does an "exit stretegy" have to do wth their ACTUAL JOB?  can you find it in dodd/frank?  the FED Reserve Act?

why don't you tell whomever is preaching this that you might be looking for another church?  see if he has a better "exit strategy" for YOU to follow?

slewie the pi-rat's picture

or perhaps i could ask you to think of it this way: 

if the FED's job can be viewed as maintaining systemic stability and enabling the Treasury to keep the checks in the mail without bankster-generated further BK problems, how does "exit strategy" make any sense?


maybe one of the "talking FED-heads" threw it out, but i follow this pretty closely myself and i don't recall the chairSatan mentioning this recently

but i probably just missed that part today, so a paste or a recent link and you win!

but if ya can't find one, maybe ya ought to consider what i'm trying to tell some people here, ok?


Vincent Vega's picture

Mr Heller, Who specifically do you expect to address the fiscal cliff? Obomney? CONgress? We are so fucked.

viahj's picture

China will do it for us, when they're ready.

DoChenRollingBearing's picture

@ Vincent Vega  + 1

STOMP on the accelerator!

slewie the pi-rat's picture

ain't it awful?

that is an 11th-grade question where i came from


do you recall?  it is in theConstitution;  the fiscal cliff is not covered, but spending bills are;  for some reason, they didn't worry about fiscal cliffs even though they were centainly on one;  they just took care of #1 & 2 & the kids as best they could

and they elected people to congress and those poeple didn't take care of mary & joe & the kids, they just wrote spending bills and tried to figure how to pay for them


and when the "centralBanker" tried to tell them what to do and how to do it, i believe he got called out and shot

twice;  by a poilitician

so maybe that was the banker's "fiscal cliff"?

if you are constantly afraid, you might need to get away from here for a short time and seek some help

you don't want to be quite so negaive now, do ya?  L0L!!!

teahouse's picture


Milton Waddams's picture

Everyone knows that the New QE is one, contrived flash crash away.  A threat to the recovery of the fortunes of the 'investor class' is the only way Bernanke will put the credibility of the Fed in jeopardy.  Everyone else can suck it up and cope.

Meremortal's picture

Heller is right. And congress won't act until the last second, just like congress always handles the debt ceiling inevitable raise parties.

The election just got more important, as it will influence the deals that get made on the fiscal cliff. Not more important in saving the economy etc., it's too late for that.

Just more important in how to trade between now and January 1.


slaughterer's picture

John Bohner will have a large margin account packed with SPY shorts ahead of the fiscal cliff debate--he is no dummy.  

madcows's picture

They are all guilty of insider trading.  Not just Boner.  They are all crooked.

HyperLazy's picture

Heller sez that the Fed will stay on the sidelines... HA

MSM shines the hopium spotlight on 'em every fucking day.

Beyond farcical...

disabledvet's picture


rufusbird's picture

I like Mr. Heller. There is nothing oily about him. He speaks with credibility.

madcows's picture

secede.  We've been voting them out for years and it's only gotten worse.  It's time to withdraw from the union.  They no longer represent the people.  They represent their own interests.  They have willfully bankrupted the country in order to preserve the position at the top.  What's the point in putting another crooked vote swapping special interest serving money laundering totalitarian in place.


Dr. Engali's picture

Does anybody really believe congress is going to do anything about the "fiscal cliff"? I don't..even if the elections shake things up (which it won't and doesn't matter if it does) the lame duck congress isn't going to do anything. he real question now is ..when does the "market" acknowledge that?