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Dallas Fed's Fisher "Perplexed" By Wall Street "Fetish" With QE3 And Disgusted With The Addiction To "Monetary Morphine"

Tyler Durden's picture




 

And now for some pure irony, we have a member of the Fed, granted a gold bug, but a Fed member nonetheless, one of the same people who not only enacted ZIRP, but encourage easy money every time there is a downtick in the market, complaining about, get this, Wall Street's "continued preoccupation, bordering upon fetish" with QE3. The irony continues: "Trillions of dollars are lying fallow, not being employed in the real economy. Yet financial market operators keep looking and hoping for more. Why? I think it may be because they have become hooked on the monetary morphine we provided when we performed massive reconstructive surgery, rescuing the economy from the Financial Panic of 2008–09, and then kept the medication in the financial bloodstream to ensure recovery....I believe adding to the accommodative doses we have applied rather than beginning to wean the patient might be the equivalent of medical malpractice." So let's get this straight: these academic titans, who for one reason or another, are given free rein to determine the fate of the once free world with their secret decisions every two or three months, are completely unaware of classical conditioning, discovered by Pavlov nearly 90 years ago, also known as a salivation response. The same Fed is shocked, shocked, that every time the market dips, the red light goes off, and the "balls to the wall" crowd scream for more, more, more free money. Really Fisher? Really? Oh, and let us guess what happens the next time the S&P slides into the tripple digits: will the Fed a) do nothing, thereby letting the market slide to its fair value in the 400 point range, or b) print. Our money, in the form of hard yellow metal, is on the latter, just like we predicted, correctly, back in March 2009 in " Bailoutspotting (Or The Search For The Great Financial Methadone Clinic)" that nothing will ever change vis-a-vis the great market junkie until it all comes crashing down.

From the Dallas Fed

“Not to Be Used Externally, but Also Harmful if Swallowed”: Projecting the Future of the Economy and Lessons Learned from Texas and Mexico

Remarks before the Dallas Regional Chamber of Commerce
Dallas, Texas
March 5, 2012

 

I have been asked to speak about the economy. I am going to take a different approach than is typical for a Federal Reserve speech. I’ll eschew making the prototypical forecast, except to note that from my perch at the Federal Reserve Bank of Dallas, I presently see that: a.) On balance, the data indicate improving growth and prospects for job creation in 2012. However, the outlook is hardly “robust” and remains constrained by the fiscal and regulatory misfeasance of Congress and the executive branch and is subject to a now well-known, and likely well-discounted, list of possible exogenous shocks—the so-called “tail risks”—posed by possible developments of different sorts in the Middle East, Europe, China and elsewhere. And b.) While price stability is being challenged by the recent run-up in gasoline prices—which has yet to be reflected in the personal consumption expenditure and consumer price indexes but may well make for worrisome headlines when February data are released—the underlying trend has been converging toward the 2 percent long-term goal formally adopted by the Federal Open Market Committee (FOMC) at its last meeting.[1]

As to the outlook envisioned by the entire FOMC, you might wish to consult the forecasts of all 17 members, which include those of yours truly, that were made public after the January meeting—though I think a puckish footnote appended to the internal document laying out a component of the December 1966 FOMC forecast might still apply: “Not to be used externally, but also harmful if swallowed.”[2]

Speaking of harmful if swallowed, I might add that I am personally perplexed by the continued preoccupation, bordering upon fetish, that Wall Street exhibits regarding the potential for further monetary accommodation—the so-called QE3, or third round of quantitative easing. The Federal Reserve has over $1.6 trillion of U.S. Treasury securities and almost $848 billion in mortgage-backed securities on its balance sheet. When we purchased those securities, we injected money into the system. Most of that money and more has accumulated on the sidelines: More than $1.5 trillion in excess reserves sit on deposit at the 12 Federal Reserve banks, including the Dallas Fed, for which we pay private banks a measly 25 basis points in interest. A copious amount is being harbored by nondepository financial institutions, and another $2 trillion is sitting in the cash coffers of nonfinancial businesses.

Trillions of dollars are lying fallow, not being employed in the real economy. Yet financial market operators keep looking and hoping for more. Why? I think it may be because they have become hooked on the monetary morphine we provided when we performed massive reconstructive surgery, rescuing the economy from the Financial Panic of 2008–09, and then kept the medication in the financial bloodstream to ensure recovery. I personally see no need to administer additional doses unless the patient goes into postoperative decline. I would suggest to you that, if the data continue to improve, however gradually, the markets should begin preparing themselves for the good Dr. Fed to wean them from their dependency rather than administer further dosage.

I am well aware of the salutary effect of accommodative monetary policy on the equity and fixed-income markets—remember, I am the only member of the FOMC who used to be on the other side. My firms’ record of substantially outperforming the equity and fixed-income indexes over a prolonged period before I hung up my investment business and entered public service in 1997 was achieved by focusing on the long-term fundamentals of the real economy and the underlying value of the securities we purchased or sold—not by depending on central bank largesse. Counting on the Fed to perpetually float returns is a mug’s game.

From my present perspective on the side of the angels, as a member of the policymaking team on the FOMC, I believe adding to the accommodative doses we have applied rather than beginning to wean the patient might be the equivalent of medical malpractice. Having never before pursued this course of healing, we run the risk of painting ourselves further into a corner from which we do not know the costs of exiting. It is my opinion that we should run that risk only in the most dire of circumstances, and I presently do not see those circumstances obtaining.

So much for forecasting and monetary policy. Let me now walk you through an overview of the Texas economy to set the stage for a broader discussion of what I believe continues to bedevil a lasting recovery and more efficient job creation in the United States.

I will use some slides to illustrate key points.

The National Bureau of Economic Research, the arbiter of when recessions begin and end, dates the onset of the Great Recession as December 2007. The economic performance of Texas since December 2007 can be summarized with the chart projected on the screen. It depicts employment growth in the 12 Federal Reserve districts. In the Eleventh Federal Reserve District?or the Dallas Fed’s district—96 percent of economic production comes from the 25.7 million people of Texas. As you can see by the red line, we now have more people at work than we had before we felt the effects of the Great Recession. All told in 2011, Texas alone created 212,000 jobs.[3]

Chart 1

Only two other states can claim they surpassed previous peak employment levels: Alaska and North Dakota.

Readers of this speech abroad?say, in Washington or New York?might think our growth last year came only from the burgeoning oil and gas patch. They would be right to describe it as burgeoning: 30,000 jobs were added in oil and gas and the related support sector last year. Texas now produces 2.1 million barrels of oil per day, the same amount as Norway; we produce 6.7 trillion cubic feet of natural gas a year, only slightly less than Canada.[4]

With 25 percent of U.S. refinery capacity and 60 percent of the nation’s petrochemical production located in Texas, we most definitely benefit from both upstream and downstream energy production.

And yet other sectors gained more jobs than the oil and gas sector and its support functions in 2011: 58,000 jobs were added in professional and business services, nearly 46,000 in education and health services and more than 41,000 in leisure and hospitality. Manufacturing?which accounts for approximately 8 percent of total Texas employment?added over 27,000 jobs.

All told, the private sector in Texas expanded by 266,400 jobs in 2011, while the public sector contracted by 54,800, due primarily to layoffs of schoolteachers. In sum, Texas payrolls grew 2 percent, significantly above the national rate of 1.3 percent.

This performance is not unique to last year. As you can see from this graph of nonagricultural employment growth by Federal Reserve district going back to January 1990, the Eleventh District has outperformed the nation on the job front for over two decades. Note the slope of the top line, which depicts job growth in the Eleventh District compared with each of the other districts and, importantly, relative to employment growth for the U.S. as a whole?denoted by the black line, the seventh one down.

Chart 2

As was pointed out in high relief by the media when a certain Texas governor was briefly in the hunt for his party’s presidential nomination, we do have some serious deficiencies in the Lone Star State. We have a very large number of people earning minimum wage; we have an unemployment rate that, while trending downward, is still too high, abetted by continued inflows of job seekers from less-promising sections of the country. But I’ll bet you that those who constantly enumerate our deficiencies and are given to habitual Texas-bashing would give their right—or should I say, left—arms to have Texas’ record of robust long-term job creation instead of the anemic employment growth of other megastates such as California and New York. Or even the job formation record of many other countries! The following chart shows that over the past two decades, the rate of employment growth in Texas has exceeded that of the euro zone and its two anchors, Germany and France, as well as that of two natural-resource-intensive countries with populations comparable to Texas’, Canada and Australia.

Chart 3

Now, is all this just prototypical Texas brag, or are there lessons the nation can learn from the success that is enjoyed here? Texans are hardly given to modesty, but I believe there are some undeniable lessons being imparted here.

One lesson I draw from comparative state data is that monetary policy is a necessary but insufficient tonic for economic recovery. The Fed has made money cheap and abundant for the entire country. The citizens of Texas and the Eleventh Federal Reserve District operate under the same monetary policy as do our fellow Americans. We have the same mortgage rates and pay the same rates of interest on commercial and consumer loans, and our businesses borrow at the same interest rates as their brethren elsewhere in the country. Which raises an important question: If monetary policy is the same here as everywhere else in the United States, why does Texas outperform the other states?

The answer is no doubt complicated by the fact that Texas is blessed with a comparatively great amount of nature’s gifts, a high concentration of military installations and what some claim are other “unfair” advantages.

But many of these “unfair” advantages are man-made: They derive from a deliberate approach by state and local authorities to enact business-friendly regulations and fiscal policy. For example, if you examine the differences between Texas and two states that have been underperforming for a prolonged period—California and New York—you will note that these former power states have less-flexible labor rules. Due to local taxes, differences in zoning practices and myriad other factors, the cost of housing and the overall cost of living in California and New York are significantly higher than they are here. And due to differences in policies governing education, the scores measuring middle-school students’ proficiency in math are lower in both California and New York than they are in Texas, and in reading, are lower in California and only slightly higher in New York.[5]

Taken together, these factors, alongside whatever natural advantages we may enjoy (though it is hard to compete with the physical beauty of California and the Great Lakes region or the cultural splendor of New York), affect where firms choose to locate and hire and where people choose to raise their families and seek jobs.

I would argue that an additional factor favors Texas: We have a Legislature that under both Democratic and Republican governors has over time deliberately crafted laws and regulations, and tax and spending regimes, encouraging business formation and job creation.

Just last month, Fairfield, Calif.-based vehicle reseller Copart Inc. announced that it will move its headquarters to Texas, citing “greater operational efficiencies.”[6] The CEO for the owner of Hardee’s and Carl’s Jr. restaurants, Andy Puzder, claims it takes six months to two years to secure permits in California to build a new Carl’s Jr., whereas in Texas, it takes six weeks. These two anecdotes from California alone clearly illustrate that firms and jobs will go to where it is easiest to do business—not where it is less convenient and more costly.

Both state and federal authorities need to bear this in mind as they plot changes in the fiscal and regulatory policy needed to restore the job-creating engine of America. As an official of the Federal Reserve charged with making monetary policy for the country as a whole, I am constantly mindful that investment and job-creating capital is free to roam not only within the United States, but to any place on earth where it will earn the best risk-adjusted return. If other countries with stable governments offer more attractive tax and regulatory environments, capital that would otherwise go to creating jobs in the U.S.A. will migrate abroad, just as intra-U.S. investment is migrating to Texas.

Thus, even if one were to somehow have 100 percent certainty about the future course of Federal Reserve policy and be completely comfortable with it, without greater clarity about the future course of fiscal and regulatory policy and whether that policy will be competitive in a globalized world, job-creating investment in the U.S. will remain restrained and our great economic potential will remain unrealized.

I pull no punches here: We have been thrown way off course by congresses populated by generations of Democrats and Republicans who failed the nation by not budgeting ways to cover the costs of their munificent spending with adequate revenue streams. The thrust of the political debate is now—and must continue to be—how to right the listing fiscal ship and put it back on a course that encourages job formation and gets the economy steaming again toward ever-greater prosperity. No amount of monetary accommodation can substitute for the need for responsible hands to take ahold of the fiscal helm. Indeed, if we at the Fed were to abandon our wits and seek to do so by inflating away the debts and unfunded liabilities of Congress, we would only become accomplices to scuttling the economy.

I was in Mexico last week. Mexico has many problems, not the least of which is declining oil production, low school graduation rates and drug-induced violence. But on the fiscal front, the country is outperforming the United States. Mexico’s government has developed and implemented better macroeconomic policy than has the U.S. government.

Mexico’s economy contracted sharply during the global downturn, with real gross domestic product (GDP) plummeting 6.2 percent in 2009. But growth roared back, up 5.5 percent in 2010 and 3.9 percent in 2011, with output reaching its prerecession peak after 12 quarters—three quarters sooner than in the U.S. Mexico’s industrial production passed its prerecession peak at the end of 2010; ours has yet to do so.

Now hold on to your seats: Mexico actually has a federal budget! We haven’t had one for almost three years. Furthermore, the Mexican Congress has imposed a balanced-budget rule and the discipline to go with it, so that even with the deviation from balance allowed under emergencies, Mexico ran a budget deficit of only 2.5 percent in 2011, compared with 8.7 percent in the U.S. Mexico’s national debt totals 27 percent of GDP; in the U.S., the debt-to-GDP ratio computed on a comparable basis was 99 percent in 2011 and is projected to be 106 percent in 2012. Imagine that: The country that many Americans look down upon and consider “undeveloped” is now more fiscally responsible and is growing faster than the United States. What does that say about the fiscal rectitude of the U.S. Congress?

Here is the point: As demonstrated by the relative and continued, inexorable outperformance by Texas—which is affected by the same monetary policy as are all of the other 49 states—the key to harnessing the monetary accommodation provided by the Fed lies in the hands of our fiscal and regulatory authorities, the Congress working with the executive branch. As demonstrated by the fiscal posture of Mexico, a nation can effect budgetary discipline and still have growth.

One might draw two lessons here.

The first comes from Germany’s finance minister, Wolfgang Schäuble, who from my perspective was spot on when he said, “If you want more private demand, you have to take people’s angst away” by having responsible and disciplined fiscal and regulatory policy.[7] Clearly, there is less angst involved in conducting business in Texas.

The second is a broader, macroeconomic truism: that fiscal and regulatory policy either complements monetary policy or retards its utility as a propellant for job creation. Mexico is proof positive that good fiscal policy enhances the effectiveness of thoughtfully conducted monetary policy, which is what the Banco de México—whose independence, incidentally, was enshrined by a constitutional amendment in 1994—has delivered under its single mandate of inflation control and by applying the tool of inflation targeting.

I should be injecting some levity into the event, though it is hard to do so when one talks about our feckless fiscal authorities. But there are witty people who have found a way to do so. Take a look at this parody of Congress that my staff found on YouTube: www.youtube.com/watch?v=Li0no7O9zmE.

There you have the prevailing modus operandi of our fiscal authorities: pass the bill rather than the American dream to our children. What a sad tale!

You asked me to talk about the economy. In a nutshell, my answer is this: Monetary policy provides the fuel for the economic engine that is the United States. We have filled the gas tank and then some. And yet businesses will not use that fuel to a degree necessary to realize our job-creating potential and create a better world for the successor generation of Americans until Congress, working with the executive branch, does the responsible thing and pulls together a tax, spending and regulatory program that will induce businesses to step on the accelerator and engage the transmission mechanism of job creation so they and the consumers they create through employment can drive our economy forward.

 

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Mon, 03/05/2012 - 14:38 | 2224598 Death and Gravity
Death and Gravity's picture

Judging from some other Texas stat, the job growth will be in the liposuction sector...

Mon, 03/05/2012 - 14:41 | 2224610 redpill
redpill's picture

I'm rather weary of all this talk of "bubbles" - as if this economy is a pretty balloon at a child's birthday party, or a squeaky clean soap bubble waiting to be popped to a glee of young giggles.  Nonsense.  This isn't a bubble.  It's a festering, puss-filled boil desperately searching for a hot lance so that a half-century of fiat-fueled neo-Keynesianism can vomit out like the half-digested Kintner boy spilling out onto the dock from the belly of that shark.

Mon, 03/05/2012 - 14:44 | 2224632 Vincent Vega
Vincent Vega's picture

Bravo! Well said. +1

Mon, 03/05/2012 - 14:54 | 2224691 trav7777
trav7777's picture

Fisher is nuts. This is the problem with economists. Yeah, whoopdie shit there is all this money laying around....wtf is there to DO with it?

If Fisher had a brain, he'd realize why his bank can't charge more than .25% interest.

WTF would you do to "develop" the US?  At a profit, of course.  Name something.  We've already got a bazillion roads, buildings, all of that shit.  I can't think of much that will turn a profit reliably.  Labor is too expensive, taxes are too high, regulation is too costly.

WTF u gonna do, drill holes and hope oil pops out?  US interest rate regimes (and Japanese) are a study in saturation and depletion.  You get an exhausted horse, an exhausted well, an exhausted field, you can't fkin stimulate it anymore. 

The economists believe that because their world has no limits that the real world must not either.

Mon, 03/05/2012 - 14:58 | 2224699 Pladizow
Pladizow's picture

"We hang the petty thieves and appoint the great ones to office" - Asop

Why did god create economists?

      - to make weather men look good!

Mon, 03/05/2012 - 15:10 | 2224784 nope-1004
nope-1004's picture

Well said RP.  And I agree with Trav too..... the "economic models" are based on limitless growth.  Only problem is we live in a finite world.  At some point (now!), the system needs to be revamped.

 

Mon, 03/05/2012 - 15:38 | 2224957 centerline
centerline's picture

This makes the assumption that these numnuts believe their own bullshit.  I am not quite so sure of that.  These are really smart people.  Maybe blinded by ego.  Maybe not.  If not, this is nothing more than a very well crafted piece of work meant to fit into a bigger picture of swaying opinion and affecting some sort of change.  Maybe setting the stage for blame to come, or sowing the seeds of a planned CB implosion at the hands of stooge politicians.

Mon, 03/05/2012 - 23:46 | 2226822 Spirit Of Truth
Spirit Of Truth's picture

When the boil blows, here's Ben:

http://www.youtube.com/watch?v=8gciFoEbOA8

Quint's serenade to the Fed:

http://www.youtube.com/watch?v=GVmeeYwEiQw

Mon, 03/05/2012 - 15:14 | 2224799 Benjamin Glutton
Benjamin Glutton's picture

On a long enough crime line the value of all currencies reduces to nooses....

Mon, 03/05/2012 - 15:40 | 2224972 centerline
centerline's picture

[golf clap]

Mon, 03/05/2012 - 15:03 | 2224750 redpill
redpill's picture

If they were going to insist on blowing trillions of dollars, at the very least what they could have done is spend it on commercialized fusion that would actually help the energy situation, but instead it's going to take another 3 decades because it is moping along trying to get over massive barriers to entry every step of the way, and that's assuming there weren't energy competitors trying to prevent it from coming to market in an efficient way (which of course there are).

Mon, 03/05/2012 - 15:16 | 2224813 eatthebanksters
eatthebanksters's picture

trav, there are plenty of small businessmen, like me, that had 800+ credit scores until credit was taken away from us and we scrambled to save what equity we had in a quickly declining economy.  Small businesses historically are the greatest innovators and largest producers of job growth.  Like many other small business people, without access to credit, I'm dead in the water. And by merely denying credit to many smart people, as their businesses fail, so do their credit ratings, further damaging any prospect of obtaining credit.

Instead of pumping trillions into huge insolvent and failing institutions, I think the Fed would have been wiser to create credit for the millons of little guys on Main Street who would create profitable buisnesses.  Instead of sucking the world dry and asking for more QE perhaps there would be real productivity which could start growth in our economy.  It would not be worse than what we have right now.  

In a nutshell, our banking system has failed. Banks used to provide a safe place to put your money and lent money to people.  Now banks have become casinos with other peoples money and mostly loan to large corporations.  Banks used to be profitable working with small spreads and didn't need to create 30+% returns on originations, derivatives and fees to stay in business.  

I fear the pols and bankers have been arguing that they are doing what they are doing to support the engine of growth in our country, but growth is only good if the majority benefit from it, and clearly that is not currently what is happening.  It's time for major reform an change.

 

Mon, 03/05/2012 - 21:56 | 2226551 Bobbyrib
Bobbyrib's picture

I remember thinking they should have expanded the SBA and let more money, but people didn't like the idea and labeled it freaked out that it "socialism." It would have done more to help the economy than watching the Fed loan to banks.

Thu, 03/15/2012 - 00:00 | 2256744 sun tzu
sun tzu's picture

I don't believe that idea was ever considered. Besides, the loans should have come from banks, not the taxpayers. Don't the taxpayers have enough bad loans on their books from mortgages and student loans?

Mon, 03/05/2012 - 15:43 | 2224984 ihedgemyhedges
ihedgemyhedges's picture

Fisher owns a lot of GLD.  TD posted that about a month ago or so.  Bet you he owns some nice Texas acreage as well.....

He's hedged against whatever......................

Mon, 03/05/2012 - 16:52 | 2225473 cranky-old-geezer
cranky-old-geezer's picture

 

 

What makes you think financial people care about the economy? 

They obviously don't.   They've done nothing to fix problems in the economy. 

Borrowing and spending is the new economy in America, and the Fed is the source of all that borrowed money, by printing money, which slowly debases the currency (as Bernanke himself said in 2002).

So America is heading for currency collapse.  Nobody knows exactly when, because Fed has no control over sudden loss of confidence in the currency.

Mon, 03/05/2012 - 14:45 | 2224640 RSloane
RSloane's picture

I wish I could give a +20 to that post. As it is, thanks for putting so articulately what so many of us think.

Mon, 03/05/2012 - 14:50 | 2224670 uneducated minion
Mon, 03/05/2012 - 14:58 | 2224720 Catullus
Catullus's picture

Turns out "festering, puss-filled boil[s] desperately searching for a hot lance so that a half-century of fiat-fueled neo-Keynesianism can vomit out like the half-digested Kintner boy spilling out onto the dock from the belly of that shark" are bullish for AAPL.

Mon, 03/05/2012 - 15:02 | 2224741 alien-IQ
alien-IQ's picture

rarely have I seen so many grotesque images conspire to construct such a lucid thought.

well played.

Mon, 03/05/2012 - 15:13 | 2224794 Unprepared
Unprepared's picture

Euthanasia ... Euthanasia

Mon, 03/05/2012 - 15:25 | 2224875 stocktivity
stocktivity's picture

So this Fed official screwball fisher is "SHOCKED" that the markets are addicted to the free money. Wasn't Benny, the Fed Chairman sending Tiny Timmy G over to Europe every other week last fall to plead with them to start printing money like we are to jack up their system? Europe spanked Tiny Timmy and sent him hom telling him to mind his own business and get his own house in order. So ...what exactly did Europe end up doing? Why they started the printing presses ....just what Benny asked for. Now I ask....who is the most powerful man on this planet? And to think...Fisher is just "SHOCKED" that the markets have become addicted to the printing.

Mon, 03/05/2012 - 16:49 | 2225460 Jake88
Jake88's picture

Yeah shocked and so suddenly.

Mon, 03/05/2012 - 15:40 | 2224847 Cadavre
Cadavre's picture

Commonsense in the Loan Star State has finally realized price is a function of counterfeiting and ain't got nothing to do with the value (or valuelessness) of the underlying.

Texans don't need the other "lower" 47. But the lower 47 do need Texas. The only reason you be warm in Chicago Tonight is rail car fuel oil coming from Texas.

Besidesthe Texas border represents a "Texas Sized" shit load of drug, weapons and money laundering business for the DEA, DoJ and NYC Primaries, not to forget the drone and border security "sham wow" sales for the Chertoff Group and DHS.

Lot's of snakes, jack-o-lopes, Cessna-sized-squitos, and them fat tailed scorpions complimented by melt you dead summertime climate and poker faced playing dumb cowboys that can skin a carpet bagger's hide 'fore he put a dollar in the Titty Bar Dancer's waist band.

Strange that Dallas, referred to as "CUFI Central" by the rest of the state, is badmouthing The Protocols of the Talmudic Usury". Something up?

"Trillions of dollars are lying fallow, not being employed in the real economy. Yet financial market operators keep looking and hoping for more. Why?

Why are fiat hoarders begging the print?

Easy - somewhere in their overconfidence of the Titanic's double hull technology, they really believe that "when" US monetary policy moves from the current "full faith and credit" fairytale to a "physical" standard, they will be able to convert to a lions share of the physical because they got the biggest piles of counterfeits. Bunches more by orders than the schleps on W2s.

The world of the Money Center Tug Job Fantasies desperately clings to a hope that their little world will still be orbiting the sun when the conversion to physical is executed. The "little world" will still be there. But all it be then is a "lump of fresh shat dung".

Mon, 03/05/2012 - 22:03 | 2226573 Bobbyrib
Bobbyrib's picture

Texans need to get over their state. Saying Texas doesn't need the other lower 47 states is like saying Germany doesn't need the rest of Europe. Even if Texas was independent they would need to export their products to someone. Being that the US has more capital and a more stable political atmosphere than your neighbors to the south, naturally the products come north to the other lower 47. 

Tue, 03/06/2012 - 03:21 | 2227204 Cadavre
Cadavre's picture

The way you see it could be reality. An alternative position regarding EZ interdependency would argue Germany doesn't need the EZ, instead, asserts it is the EZ that needs Germany. Germany is one of "the", if not "the", largest exporting nations on the planet. Beats the export shit out of the US. German manufacturing stats, unlike the US pig in a poke stats, exclude jobs like fast food concessions and beer parlors and Taco Bell Taco Jockeys from its manufacturing count The US manufactures dollar bills, debt and omega 6 fatty acid laced soylent green monkey bars for exports to US suburban drive through feeding lots.

being the US has more capital ...

A cigar is in order! Your are absolutely correcto-mundo on that: Printing capital is our our largest industry! We beat the rest of the world in that particular manufacturing sector. It ain't no wonder we got more capital!

Mon, 03/05/2012 - 16:35 | 2225377 Freegolder
Freegolder's picture

I recall Fisher was often opposed to QE whilst a voting Fed member?

It is harsh of ZH to criticise someone for voicing more concerns about Fed policy, when ZH criticises the same policies every day. Fisher has been consistent in his opposition.

Mr Fisher needs our support, if the Fed had a few more like him I'd bet we'd never see another round of QE.

Worthy news for us readers, but could have been presented in a fairer manner, rather than a bitter attack.

 

 

Mon, 03/05/2012 - 17:44 | 2225772 Stax Edwards
Stax Edwards's picture

+1

Glad to see I am not alone in my thinking.  He actually exhibits sanity, logic and reason.  Something the FED desperately needs more of.

Tue, 03/06/2012 - 03:32 | 2227222 Cadavre
Cadavre's picture

Don't think it's Fisher's record as it is the fact he has stated the obvious but refuses to even offer a hint as to why the hoarders are hoarding.

The fiat hoarding is a "result". As smart as Fisher is you got to know he has a pretty good hunch as to why - he knows it's a setup - but ain't found that inner strength or ethics to go public.

He knows QE is market manipulation and an extortion to transfer value from the commons to the banks.  He knows it's price rigging and he hasn't found the ethic or courage or proper moral turpitude to say it outright.

What he said is already known. The crime is "why" its being done and he won't go on the record with the answer.

Mon, 03/05/2012 - 14:40 | 2224606 SeverinSlade
SeverinSlade's picture

What?  Hopium is just as addictive as crack cocaine?  Really?  Who'd have known?

Mon, 03/05/2012 - 14:57 | 2224711 The trend is yo...
The trend is your friend's picture

All this QE is, is a MORPHINE DRIP.  When the patient is dying in the ER or ICU and nothing can be done, all you can do is a morphine drip to ease the pain a little while longer until the patient flatlines

Mon, 03/05/2012 - 15:19 | 2224834 MsCreant
MsCreant's picture

Apt.

Or they foam the runway (QE) when they know the plane is going to crash. Maybe a few will survive, but it's going to be bad.

Mon, 03/05/2012 - 15:24 | 2224865 resurger
resurger's picture

You are wrong Sir,

Because Dr. Ben Bernanke is a great psychologist who understands Hopium Withdrawal Symptoms (HWS) if you may ehm, more than anybody else on ZH! His assistant is Dr. Paul Krugman, he also has experience in the treatment of the same condition.

The HWS condition can be treated by injecting a massive amount of QE in the junkies accounts.

Dr. Paul said that even if you are dead, you have to come "back to life" and buy Technology, like AAPL!!!!!!!!!!!

you say how?

i think you are underestimating the QE-injections

 

Mon, 03/05/2012 - 14:41 | 2224616 Jason T
Jason T's picture

Job growth..yes, but what about pay?

As of December 2011, New York had regained 154,300 of the 333,400 jobs that were lost in the recession. New York ranked 16th among the 50 states in jobs regained, performing well-above the national average of 34 percent. Job growth in New York, however, was weak in the second half of 2011, with the state losing 11,200 private sector jobs since July. In addition, the average salaries of the jobs created in the past two years is more than 40 percent lower than the average salaries of the jobs lost during the recession.

http://www.osc.state.ny.us/press/releases/feb12/020212.htm

Tue, 03/06/2012 - 06:54 | 2226617 Bobbyrib
Bobbyrib's picture

Watching the financial bubble in NY complete its collapse should be a relief to the rest of the country. Banker pay and bonuses decreasing should be seen as a good thing. Now the country can try to produce products with value.

Another tech bubble would be better than another financial bubble. At least watching people create software or hardware businesses could use to increase productivity would be better in the end. Which bubble collapse do we currently get more out of: the 90's technology bubble, or the 21st (edit) *century* financial bubble?

NY seems to be a place where software start ups happen. Software companies could start up anywhere, but the kind of people who work in software development usually prefer more urban environments like CA, or NY. I'm not knocking Texas, I'm just saying different parts of the country will have different "advantages" creating jobs.

Mon, 03/05/2012 - 14:42 | 2224625 It is a bargin ...
It is a bargin my friend's picture

Its still just a tad worrying that Dr Frankenstein still  cannot see the monster and is scoulding it for his own mistakes.

Mon, 03/05/2012 - 14:55 | 2224694 BoNeSxxx
BoNeSxxx's picture

+1

irony: read it, learn it, live it  (bitchez)

Mon, 03/05/2012 - 14:43 | 2224627 Aunty Christ
Aunty Christ's picture

Dick Fisher acts like a lion, but votes like a pussy cat. Another stuffed shirt who doesn't have the balls to defy the Chairsatan

Mon, 03/05/2012 - 14:58 | 2224719 trav7777
trav7777's picture

what...you act like his bank has takers for credit at more than .25%?  He doesn't.

He can only talk...the economists have no fucking clue.  Fisher thinks, what, that productivity and profitability will return if they raise rates? There's nothing the fuck to do in the US anymore that will generate growth.  The climate is saturated and depleted.

This HAPPENS.  Fuckin watch Gold Rush...the "Big Nugget" mine has produced on that show for years and years and now the gold is all depleted.  So...Parker's gonna do what, expend mountains of capital to move mountains of dirt to try to eke out some more?  NO amount of additional credit can make shit that is nonprofitable turn into something profitable.

The US's oil wells, mines, soil, all of it is functionally depleted to the point that it no longer can profitably return.  We are tapped out.

Mon, 03/05/2012 - 15:22 | 2224854 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Third Rule....the fight is over.

Mon, 03/05/2012 - 16:03 | 2225113 riphowardkatz
riphowardkatz's picture

Your argument makes sense until you watch the show that follows where they are mining for gold in the ocean. There are worlds and worlds out there of unexplored untapped resources. We are far from tapped out. Just look at Wyoming in the last 5 years and that is one of many examples.

Your main point that money does not create wealth is spot on. Productive people create wealth. As long as their wealth is taken and redistributed to non productive bankers. welfare recipients and unhealthy medicare gobbling boomers we will soon run out of the most valuable asset this country has, the wealth producer.

Mon, 03/05/2012 - 18:01 | 2225855 Random_Robert
Random_Robert's picture

Atlas, bitchez- shrugging like a mo-fo.

BTW I love your ZH handle... Katz was awesome. I miss reading his wisdom.

 

Mon, 03/05/2012 - 14:45 | 2224638 ziggy59
ziggy59's picture

It's the same story retold ...goldilocks and the 3 bearshits. . All FED members have selective amnesia when convenient. Green spam forgets he was the original monster bubble blower. Now the current scum bucketeers will also defer blame and won't believe the system collapsing is because of them.

Mon, 03/05/2012 - 14:45 | 2224641 q99x2
q99x2's picture

Donate him to Obama's campaign. NDAA the f'r.

Mon, 03/05/2012 - 14:49 | 2224654 rufusbird
rufusbird's picture

TRANSFUSION

Slip the juce to me Brucie...

ZZZZZZOOOOOOOOOOOOMMMMMMMMMMMM
Tooling down the hightway doing 79
I'm a twin pipe papa and I'm feelin fine
Hey man dig that was that a red stop sign
(Scrreeech-BANG, tinkle)
Transfusion, transfusion
I'm just a solid mess of contusions
Never, never, never gonna speed again
Slip the blood to me, Bud

I jump in my rod about a quarter to nine
I gotta make a date with that chick of mine
I cross the center line man you gotta make time-
(Scrreeech-BANG, tinkle)
Transfusion, transfusion
Oh, man, I got the cotton pickin convolutions
Never, never, never gonna speed again
Shoot the juice to me, Bruce

My foot's on the throttle and it's made of lead
But I'm a fast ridding daddy with a real cool head
I'ma gonna pass a truck on the hill ahead-
(Scrreeech-BANG, tinkle)
Transfusion, transfusion
My red corpsuckles (sic) are in mass confusion
Never, never, never gonna speed again
Pass the crimson to me, Jimson

I took a little drink and I'm feelin right
I can fly right over everything everything in sight
There's a slow poking cat I'm gonna pass him on the right
(Scrreeech-BANG, tinkle)
Transfusion, transfusion
I'm a real gone paleface and that's no illusion
I'ma never never never gonna speed again
Pass the claret to me, Barrett

A rollin down the mountain on a rainy day
Oh, when you see me coming better start to pray
I'm a cuttin' up the road and I'm the boss all the way
(Scrreeech-BANG, tinkle)
Transfusion, transfusion
Oh, doc, pardon me for this crazy intrusion
I'm never, never, never gonna speed again
Pump the fluid in me, Louie

I'm burning up the highway early this morn
I'm passing everybody oh nothing but corn
Man outa my way I don't drive with my horn
(Scrreeech-BANG, tinkle)
Transfusion, transfusion
Oh, nurse I'm gonna make a new resolution
I'm never, never, never gonna speed again
Put a gallon in me, Alan

Oh, barnyard drivers are found in two classes
Line crowding hogs and speeding jackasses
So rememmber to slow down today
Hey, daddy-o
A make that type O, huh
Atta-boy
(Scrreeech-BANG, tinkle)

Mon, 03/05/2012 - 14:49 | 2224660 Hedgetard55
Hedgetard55's picture

If easy money created the problem, even easier money will solve it. If you can't grasp that, then you are no Ben Bernanke. Remeber Ben's thesis, that FED tightening caused the GD.

Mon, 03/05/2012 - 15:01 | 2224737 trav7777
trav7777's picture

until they can print oil, money doesn't matter.

The crux of what the Fed was hoping would happen is that in the face of TOTAL lack of demand for credit to go do new things (growth) that if they lowered the price of it, shit would happen.

Maybe people would go drill wells previously unprofitable and growth could resume at a lower ROI.  It hasn't.  We're at zero percent.  There's nowhere to go from here.

The system is trying to delever but such a thing causes apocalyptic crash of the monetary system.  The liquidity trap isn't even acknowledged as possible by most schools of economics.

Because MONEY can grow to infinity, they assumed that real world activities and production/consumption could also grow to infinity.  If you are locked inside a safe and can print enough money, you can cause a sandwich to appear.

Sufficient demand will *always* cause more supply to appear.  This is precisely how their stupid theories conceive of the world.

Mon, 03/05/2012 - 15:09 | 2224777 Hedgetard55
Hedgetard55's picture

Trav,

 

     Certainly that was their cover story, but the real goal was merely to bail out their bankster masters and transfer the cost to the tax payers/holders of dollars and cash equivalents through a debased currency.

Mon, 03/05/2012 - 15:36 | 2224941 MsCreant
MsCreant's picture

Would you shit a brick if someone actually said all this stuff in the politcal arena? We know they won't, don't worry. 

You are, of course, dead on right. I cheer your posts on this thread.

So will you move to Africa, where the resources are not yet depleted? 

Mon, 03/05/2012 - 14:49 | 2224665 alexwest
alexwest's picture

# Not to Be Used Externally, but Also Harmful if Swallowed

is it me or this looks like some kind of Freudian Equivalent to
'dick sucking'

just a thought
alx

Mon, 03/05/2012 - 14:51 | 2224672 SheepDog-One
SheepDog-One's picture

But....but....we needs more free money crack!!

Mon, 03/05/2012 - 14:52 | 2224679 JohnKozac
JohnKozac's picture

St. Louis Adjusted Monetary Base (BASE)

http://research.stlouisfed.org/fred2/series/BASE

(I thank TD for this convemient linky.)

 

 

 

Mon, 03/05/2012 - 14:54 | 2224686 alien-IQ
alien-IQ's picture

Looks like Matt Taibbi just gave BAC the Vampire Squid treatment.

He kills them in this new article, which has this opening:

"There are two things every American needs to know about Bank of America. The first is that it’s corrupt.

This bank has systematically defrauded almost everyone with whom it has a significant business relationship, cheating investors, insurers, homeowners, shareholders, depositors, and the state. It is a giant, raging hurricane of theft and fraud, spinning its way through America and leaving a massive trail of wiped-out retirees and foreclosed-upon families in its wake."

Full Article here: http://www.informationclearinghouse.info/article30717.htm

Mon, 03/05/2012 - 15:20 | 2224838 nope-1004
nope-1004's picture

Good article.  BAC is a dead bank walking.  Did Buffet invest in Apple?  Dell?  Cat?

Kinda speaks for itself.  Obama's buffet helped send a lifeline to an insolvent bank.  LOL.

Good bye BAC.

And thanks for being the source of all the internet trolls:  http://www.youtube.com/watch?v=0AeM1WngEqg

Mon, 03/05/2012 - 15:27 | 2224890 resurger
resurger's picture

+1

AIQ, kindly take a look at their Off-Balance-Sheet

 

Mon, 03/05/2012 - 14:54 | 2224690 Catullus
Catullus's picture

Surely the stock market rally must be about the improving economy and not about liquidity!

Mon, 03/05/2012 - 14:56 | 2224702 CvlDobd
CvlDobd's picture

ZH is as bad as the next guy in incessant calls for QE3.

Mon, 03/05/2012 - 14:58 | 2224724 Tyler Durden
Tyler Durden's picture

Because unlike the Fed at least we realize that the market is hooked on liquidity. And we also realize that if the market does not get what it wants there will be murder. Although since that market collapse that will follow will result in the mother of all liquidity injections, which in turn will bring us one stop closer to the USD's reign, that is precisely what should happen. Alas it never will.

Mon, 03/05/2012 - 15:10 | 2224785 catacl1sm
catacl1sm's picture

Then let there be blood.

Mon, 03/05/2012 - 15:45 | 2224998 CvlDobd
CvlDobd's picture

I agree with this and trav7777 's highest post in this thread.

Mon, 03/05/2012 - 16:08 | 2224845 slewie the pi-rat
slewie the pi-rat's picture

i appreciate you not going to the "rats in the maze"

i can sense the struggle!

my fave ratso experiment is when the mad scientist put electrodes directly into the rats' brains' "pleasure center"

the learning involved a lever which, when depressed, delivered an electronic pleasure stimulus to the rat's brain

soon, the rats were observed passed out on the lever

now, that's leverage!

Mon, 03/05/2012 - 15:26 | 2224881 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

When most people hear market, they too think of stocks, but what if a, or, the whole, bond market capitulated?  What if fiat currency went bust?  Stocks are not the weakest link at this point.  They may in fact be the best horse in the glue factory.

Mon, 03/05/2012 - 15:47 | 2225010 CvlDobd
CvlDobd's picture

If your currency collapses what does that do to the shit stocks priced in that currency?

I argue there is no horse in the factory because it burned down and these QE calls are pointless.

Mon, 03/05/2012 - 15:21 | 2224843 kito
kito's picture

Forgive Tyler, qe3 put out a restraining order against him based on his obsession over it......

Mon, 03/05/2012 - 14:57 | 2224704 blu
blu's picture

It (the market) will never come crashing down.

Ever.

However it will become entirely irrelevant. Think about what the world will be like in an age when the stock market, financial markets, and a global economy have absolutely no relevance at all to anything of daily operational importance. No more importance than fairytales and unicorns and stories told to children.

I bet nobody here can imagine that. But we will all live it.

Mon, 03/05/2012 - 15:03 | 2224748 trav7777
trav7777's picture

there are still some productive ventures on the market that dutifully generate return or yield.  The stronger hands are progressively buying them up.  At some point, implied correlation will go to complete shit.

Mon, 03/05/2012 - 15:06 | 2224761 tickhound
tickhound's picture

Sounds like you're describing an end to "monetary-ism"

When/If/Unless that happens, financial markets will remain "relevant" to how one "operates" in life.

Mon, 03/05/2012 - 15:07 | 2224766 It is a bargin ...
It is a bargin my friend's picture

Actually I do, and more so than a total crash and reset that is more by far worst nightmare, yet every day I see it being the outcome

Mon, 03/05/2012 - 15:18 | 2224826 blunderdog
blunderdog's picture

It's irrelevant to most people now.  It's a fairly small segment of the population that really cares about market performance.  They're dramatically overrepresented because they're the ones who have money.

Mon, 03/05/2012 - 15:33 | 2224927 r101958
r101958's picture

Like 'Atlas Shrugged' where reality <> propaganda.

Mon, 03/05/2012 - 14:57 | 2224713 Madcow
Madcow's picture

I too wish they would stop with the QE -  Just pull the plug on Grannie - and let the whole thing collapse.  What we're doing now is sending contractors in to re-model a tear-down. 

Without QE - the whole mostrosity would collapse within a year.  Then the economy could re-build in earnest.

 

Mon, 03/05/2012 - 15:10 | 2224783 alfred b.
alfred b.'s picture

 

...do you really think the ny bankster mafia who owns Washington will just stand around and let them sink it while they can still cash in bigtime???

 

Mon, 03/05/2012 - 15:43 | 2224991 rqb1
rqb1's picture

Probably not until they can get the little guy in to buy them out, then watch out below. This has gone on so long, IMO, because the little guy has not come back.

Mon, 03/05/2012 - 14:59 | 2224727 kito
kito's picture

Not only will there no qe3 this year, gold will not hit 2000 in 2012........

Mon, 03/05/2012 - 15:02 | 2224740 LawsofPhysics
LawsofPhysics's picture

A fine rant Mr fisher.  I see Texas is very happy with all their debt slaves.  Just how sustainable is any of this again Mr. Fisher?

Mon, 03/05/2012 - 16:20 | 2225267 Sandmann
Sandmann's picture

Homestead Rule makes repossession a different matter and houses cannot collateralise anything but a mortgage

Mon, 03/05/2012 - 15:05 | 2224759 alfred b.
alfred b.'s picture

 

Slow-witted fisher likes to pretend that he's not a whore to his bankster masters.....

'hey dick, pick up the phone...I think they're calling you now!'

Mon, 03/05/2012 - 15:06 | 2224760 vh070
vh070's picture

Time for an Intervention.  Oh wait… I'm not a fan of pepper spray.  On the other hand, spring will spring.

Mon, 03/05/2012 - 15:08 | 2224774 chockl
chockl's picture

The drug border war is also good for the Texas economy Si.

Mon, 03/05/2012 - 15:10 | 2224781 oddjob
oddjob's picture

We must be nearing the bucket bottom for them to scrape out the good cop/bad cop routine.

Mon, 03/05/2012 - 15:28 | 2224894 MsCreant
MsCreant's picture

Meet the new Fed boss? Same as the old Fed boss. Long live the Fed boss?

Mon, 03/05/2012 - 15:53 | 2225045 centerline
centerline's picture

They played this game a few years back too.  Unfortunately I can't recall exactly when or what the circumstances were at the time to necessitate this sort of theater.

 

Mon, 03/05/2012 - 15:12 | 2224792 Everybodys All ...
Everybodys All American's picture

Fed governors make an art form out of playing stupid.

Mon, 03/05/2012 - 15:13 | 2224796 SmoothCoolSmoke
SmoothCoolSmoke's picture

Looks like they know it's gonna be too hard to hold up the R2000 all the way til Nov1.  So, bring it down now....and blow it back up starting on Labor Day with QE3.

14K by Election Day!

Fisher is just reading his lines.

Mon, 03/05/2012 - 15:15 | 2224805 tony bonn
tony bonn's picture

"...massive reconstructive surgery..."

pumping blood into a corpse is not reconstructive surgery except to those who believe the warrren commission report.

Mon, 03/05/2012 - 15:29 | 2224899 MsCreant
MsCreant's picture

But do you believe in Zombies? I do now.

Mon, 03/05/2012 - 21:35 | 2226477 malek
malek's picture

That statement only shows the doc is now as hooked (and high) as the patient.

Mon, 03/05/2012 - 15:16 | 2224811 Benjamin Glutton
Benjamin Glutton's picture

Pavlov's Banks...

Mon, 03/05/2012 - 15:17 | 2224824 thatsnotgood
thatsnotgood's picture

dow is red today........is this allowed??

Mon, 03/05/2012 - 15:46 | 2225004 I should be working
I should be working's picture

Forget about the dow, even AAPL is in the red.

Consumer staples are the only bright spot today.

Mon, 03/05/2012 - 15:25 | 2224877 Clowns on Acid
Clowns on Acid's picture

IMHO:

Fischer is floating the balloon for Benny boy. Trying to get Lagacy media ad the market to put pressure on Congress to well at least pass a budget.

All these guys were Obama shills, but now they realize that OB is going down. Slowly but surely they will demonize OB's policies (lack of a budget for 3 years, while Mexico passes one with only 2.3% deficit spending!!).

I suspect that Fischer and the rest in the bankster employ are now slowly backing away / floating the trial balloon, from QE3, or IMF funding for ECB. 

They are now hedging their bets..."We have done all we "constitutionallly" can", now it must be Congress to pass tax, regulations, and pass a budget that fills the US business with confidence to move forward."

Look out below....until the fat lady screams..." More money printing please" !

 

Mon, 03/05/2012 - 15:28 | 2224891 Zola
Zola's picture

It is so disheartening when in your own family you attempt to explain the situation and you are branded a doomer , a "dark" person and then the sheep try to steer you back into the fold "dont be negative become a part of the system" blabla...

Mon, 03/05/2012 - 15:42 | 2224982 YesWeKahn
YesWeKahn's picture

It doesn't matter, Mr BernANK doesn't listen to Mr Dallas.

Mon, 03/05/2012 - 15:44 | 2224994 I am a Man I am...
I am a Man I am Forty's picture

there's always big fucking talk from the non-voting members

Mon, 03/05/2012 - 15:51 | 2225026 alexanderstollznow
alexanderstollznow's picture

the only irony here is that ZH does not realise that it is the cheerleader of the obsession / fetish, of which he speaks.  he is just pointing out the bleeding obvious:  QE3 is not required; QE3 wouldnt do any good; QE3 is not politically viable;  the FED has NEVER hinted at imminent furher QE.

the only people who have been talking about QE3, QE4, QE5.. (sound familiar??) are those who are so obsessed with their anti-Fed views (sound familiar??) that they want to see QE3, just so they can criticize it.  and support their stagnant long gold position.

 

Mon, 03/05/2012 - 16:31 | 2225308 jmc8888
jmc8888's picture

Since science has no place in our advanced economy, society, educational institutions, or political policy and it's been this way for decades, we have hit a wall, where more fiat money printed out of thin air, won't create more supply.  Supply is the issue, and anyone that doesn't realize it should realize that we severely lack the supplies we need for the current population, not because of some artificial limit from the green idiots, but because we've chosen not to plan ahead  We've used up our cushion, and the way out of this is to go back to the base ideas that got us the cushion to begin with.  It is all about science and how it applies to better extraction, technquies, methods, whatever.

There are plenty of projects that can be done in America, let alone the rest of the world, that can get us underway.  But it'll never happen under this system.  It'll never happen without the fraudulent debt and the means for it to be created is ended. Then you need to create credit and allocate it for these measures.

Then science can be reclaimed by actual science.  Once our science actually consists of science, scientific progress can actually resume.

Scientific progress needs credit.  It needs capital investment.  Instead we cut any money flowing to it, and the fake science that has been created is taking a bigger portion of a decreasing pie.

We've only dug up a couple of percentage points of our crust (which is a very small sample of resources), it's just because science is limited to fossil fuels as the readily available energy source, under the scope of a monetary system, it is not profitable.  This does not mean it isn't possible to get to these materials, or that they don't exist, because they do.  It's just that we haven't invested or concentrated our scientific deveolopment into making it so it IS profitable to dig in these other areas.  Or to mine asteroids. Or the moon's surface, or capture gas from the gas gaint planets, so on and so forth.  There's plenty of supply out there....whether or this earth, or solar system, or universe....or even better yet with a fusion arc, the ability to create any of the base elements on Earth, because remember it is the fusion process that creates the elements, and in the various types of supernova explosions the rest are created.  Which means, through science, you can create any of the elements on Earth.

There are ways to do these things, we just haven't directed or funded the science to do them.  The answers are there, we just haven't discovered them yet, and in today's world have no desire to do so.  In today's world the 'desire' is to go the other way into fascist idiocy like sustainability, etc. 

So once the bullshit system is taken away from the monetarists we can resume the process of progress and coincidentally progress the ideas that previous generations thought up.  Because the ideas we have to progress ourselves are really from a few generations ago.  That's how far we've fallen off the wagon.  A drunken binge lasting many decades.

Fusion is no more pie in the sky than Flight was before the Wright brothers.  With flight you saw birds, you had hot air baloons.  It was pretty obvious that it was possible to fly.  We just hadn't discovered it yet.  With fusion...we can see the Sun, other stars, we've all seen the video of nuclear explosions.  We know it's possible for fusion to occur.  We just don't have the technology to create and control it at will. Thus those that say fusion is pie in the sky are really just using the same idiocy that previous generations would say manned flight was.  Or even horseless carriages.

There's plenty of water.  We just don't desalinize enough of it.  We don't capture rainfall very well.  We don't transport water through great canals.  All of which can be done.  All of which increase supply of water.  With such projects you can create arable land where it wasn't before.  You can over time create more top soil.  You can even research various aspects of it to better retain, use, or create it.

Since fusion is energy it's mastery creates supply.

Better machine tools create better products, a better supply.

Mag lev enables more goods to flow at a faster pace.

There's so much we can actually do to increase supply, if we simply had the will and plitical means to do it.  Plenty of projects are around.  Plenty can be drawn up.  The points to focus on are already known.  Much of the initial conceptual aspect of these were created decades ago.  We don't have to think up fusion, and then try to develop it.  It's already been thought up for many decades.  NAWAPA, aka The Parsons Project was a plan that JFK wanted to adopt and the plans still exist. 

The space program challenges us to overcome obstacles and in doing so creates the science and applicable technology to overcome these obstacles.  Better materials.  Better processes.  An overall increasein mankind's power over the universe.

It really is so easy a caveman eventually learned how to do most of it.  But today's mondern world? We forgot it.  We deny it.  So we used up our cushion.  Imagine that, a monetary system built on bullshit that is called science instead of an economic system that bases itself on the growth of actual science can get itself into such a situation. 

Impeach Obama

Glass-Steagall

American Credit System (the intent of our founding fathers like...Hamilton)

Mon, 03/05/2012 - 21:13 | 2226394 eatthebanksters
eatthebanksters's picture

JMC, when I was a boy there was a show with Walter Cronkite called '21st Century'.  It was all about what things were going to be invented by the new century.  One of the things scientists predicted was that we would have man made fusion energy by the 1990's.  I was dismayed when it did not happen.  I was further dismayed when the Clinton Administration cut funding for the construction of what was to be the worlds biggest cyclotron which was being build in Texas.  The cyclotron was to enable us to do heretofore impossible research to help us discover how to create a sustainable, energy producing fusion reaction.  CERN picked up the slack an may get us answers in my lifetime, but we lost 20 years of research time and the lead role regarding fusion technology.  Fusion power, when developed will be the cleanest most abundant form of energy imaginable. No radioactive waste or byproducts, no polluting smoke or greenhouse gasses and ultimately so cheap and abundant it will change the world.  I sometimes wonder if our plans were scuttled because of the fear of what would happen if the oil industry disappeared with all the industries supported by it. While energy would be cheap and abundant, where would the displaced jobs be replaced?  Just like fire created the body's ability to consume more calories by more easily digesting cooked meat which resulted in more energy going to develpment of the brain, cheap and clean energy woud free up many people to do so much more to further positive human evolution. Sometimes, as with NASA and the moon mission in the 60's, government spending to assist research is a good thing.  We got miniaturization, transistors and micro computers because of the moon mission, and they have changed our world.  Fire Obama, hang the TBTF CEO's, create sensible no-conflict-of-interest reforms in the financial markets and let's move forward together.  Nothing wrong with capitalism as long as you punish the crooks and keep the playing field level. 

Mon, 03/05/2012 - 21:38 | 2226489 malek
malek's picture

I think you're painting it in a little too bright colors, but for the general direction you are correct!

Mon, 03/05/2012 - 16:27 | 2225314 Stax Edwards
Stax Edwards's picture

I thought he was accurate on most of his points and it was a pretty good speech.  Fisher is the only FED gov that I know of who has come out saying TBTF need to be broken up too.  I think if he leads the charge and makes that happen history will reflect well on him.  We all know it needs to happen or we will continue to subsidize banks losses while they keep their profits. Some of you malcontents will continue to bitch no matter what happens in the future.

You might want to at least consider supporting those in power who are on the right track.  I would say Fisher is the most realistic we have in a FED full of academic loons. Just something to consider.

Mon, 03/05/2012 - 16:35 | 2225379 cranky-old-geezer
cranky-old-geezer's picture

 

 

Rising government debt needs rising tax revenue to service it.

Rising tax revenue isn't happening with the economy shrinking 7% / yr (adjusted for inflation).

So the government must borrow more money each month to make larger debt service payments (and fund rising government spending).

China and other traditional buyers of US govt debt have stopped buying it, leaving the Fed as the only significant buyer these days.

So QE3 is already happening in some shape form or fashion, and QE will continue in some shape form or fashion, non-stop. 

It's just not called QE.   So people think QE isn't happening.

Of course it's happening.  As we speak.

If QE ever stops, the market for Treasuries will collapse and yeilds will rise dramatically.

This isn't rocket science.  It's simple stuff.  It doesn't take a PhD economist to understand it.

PhD economists are trying to tell people these things aren't so.  They say rising debt doesn't matter.  They say the economy is growing. 

They're full of shit.

 

Mon, 03/05/2012 - 16:41 | 2225414 non_anon
non_anon's picture

no one, i repeat, no one, can resist printing money beyond their means. And of course in counterfeiting,which the fed does, the first ones with their hands on that freshly printed money make out and the rest of us are caught holding the bag.

Mon, 03/05/2012 - 16:45 | 2225440 Shizzmoney
Shizzmoney's picture

You mean the same guy who advocated debasing our currency in a private meeting (5 yrs ago) with Corporate CEOs, sitting there laughing at how we need to import MORE shit from China (exporting jobs in the process), at the expense of our homes, 401Ks, and wages/savings.......is the same guy who is "perplexed" that banks would prefer to sit on their cash the Fed just handed off to them rather than actually take risks on businesses and grow the economy?

You don't say. 

What a crock of shit.  Even these guys know we are finally onto them.  They don't give a fuck about you if you don't have 1 million in your bank account.  There interest rate debacle is proof of that.

Mon, 03/05/2012 - 16:54 | 2225494 Zola
Zola's picture

Wow jmc8888   

Brilliant expose. +1776

Mon, 03/05/2012 - 16:55 | 2225497 LongOfTooth
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"...until Congress, working with the executive branch, does the responsible thing and pulls together a tax, spending and regulatory program that will induce businesses to step on the accelerator and engage the transmission mechanism of job creation so they and the consumers they create through employment can drive our economy forward...."

------------

And the farmer hauled another load away.  In other words BS.

 

 

 

Mon, 03/05/2012 - 17:03 | 2225553 cranky-old-geezer
cranky-old-geezer's picture

 

 

"Trillions of dollars are lying fallow, not being employed in the real economy. Yet financial market operators keep looking and hoping for more. Why?

Because they don't care about the economy.

It's a big looting spree.  TBTF banks are looting the economy and looting the people in general.

Every time the Fed prints a billion dollars and gives it to some Wall Street bank, that's a billion dollars of wealth looted (stolen) from the people.

Mon, 03/05/2012 - 19:43 | 2226157 Bansters-in-my-...
Bansters-in-my- feces's picture

Central Terrorist Bankers...

All of them.

Mon, 03/05/2012 - 19:50 | 2226174 working class dog
working class dog's picture

Here is the new form of QE right in front of your eyes read on:

Ever wonder where the money is  coming from for the large corporations to buy back thier stock.

The fractional reserve system and ZIRP of course. Old Bernanke is keeping the interest rates low so the corporations and banks can borrow money on the cheap and use it to buy back thier stocks, because the pay off as we all know is when the inflation catches hold the equities will skyrocket and the loans will be paid back in cheaper dollars, but board of directors , and high level execs not to worry, you will take your bonuses and exit like elvis when the equities contract on the cycle just after you have gone, good work if you can get it!

Mon, 03/05/2012 - 22:13 | 2226602 miker
miker's picture

working class dog.........you are exactly correct on method for propping up the stock market....and one of the primary reasons Bernake is keeping interest at ~0 %.  Their reckogning being that screwing the citizen saver is the lesser of two evils.  The first being letting the stock market collapese and stay down. 

But the smart money (corporate insiders) know the score and they are pulling their own money out while they support or direct the buying of shares through corporate debt.  How long this can go on, I don't know.

Regarding this Fisher dude.  I don't know his past, but his admonitions for the Fed to tighten and for Congress to get their act together don't add up. 

There seems to be this LITTLE PROBLEM in the fact that we need $1.3 Trillion a year to sort of/kind of hold our own in the economy.   That's the deficit/which is also the stimulus if you will.

I'll say it again because it's the elephant in the room.  $1.3 Trillion is equivalent to 30 million jobs at $40K/year.  Take that spending away (either by tax increases or spending cuts) and you will reduce employment in this country by 30 million......or 20% of the workforce.

Of course, we will figure this out eventually and perhaps actually talk through a plan like grownups, on how to reduce this reasonably and gradually and get to 0 deficit.  Of course.

Mon, 03/05/2012 - 22:35 | 2226656 Pumpkin
Pumpkin's picture

Shocked?  Is this man's IQ 2.5?  Looks like a bad act to me.

Tue, 03/06/2012 - 00:07 | 2226891 jtg
jtg's picture

The US, along with the rest of the West, is racing headlong toward catastrophe. The West is on its death march.

Tue, 03/06/2012 - 02:16 | 2227138 cnhedge
cnhedge's picture

fisher is a hawk and has no voting power.

 

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