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So Much For The Republic: Plosser Admits Fed Is Now In The "Fiscal Policy" Business
Philly Fed dissenter and rebel Charles Plosser, said something stunning during a Q&A session at the Zell/Lurie Real Estate Center at Wharton. When asked what he thought of Operation Twist, his response: "it is fiscal, not monetary policy, and does not have much credibility ....Treasury debt issuance could undo much of the effect of the Fed's attempt to lower borrowing costs, known as 'Operation Twist', Plosser said. "It doesn't have a whole lot of credibility attached to it." While we have no doubt that Twist has no credibility and both the Fed and the market will figure this weakest link out within a month, forcing the Fed to proceed, over the 3 dissenters pseudo-dead bodies, with much more LSAP, it is somewhat shocking to hear confirmation that the Fed itself now sees its duties as those of the legislative, or the body tasked with writing America's laws and funding required amounts of money via debt issuance. Granted, it is well known that America's congress is now in a state of perpetual impasse with no further stimulus likely to come as long as the GOP controls the Congress and Obama is president. But at least the American people (deserving as they are of their representatives and president) pick those in congress. The last time we checked, the "popular election" of the Fed chairman is not in the purvey of the US constitution, and the only capacity given to public representatives is to veto his nomination. Everything else is decided in a banker-filled conclave. Which then begs the question: has the Fed admitted the archaic concept of the US republic is now over and done with?
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It's been over and done with for a while; now 'they're' just rubbing our faces in it.
I thought we all lived in Oligarchies in the West ?
"..and to the corporations for which it stands..."
"...one nation, under skynet..."
" ...with RFID chips and brown shirts for all."
Die Fahne Hoch!
America has two choices right now: default & default by debasement.
If the fiscal side wants to keep up the pretense, the monetary side will just print to hell. It's in their nature. Austerity = Less demand.
The REAL choice is a system of money not based on debt.
But with donkeys (Bernanke) and carnivores (Blankfein) like these, I don't hold out much hope.
http://azizonomics.com/2011/10/12/fractional-reserve-banking-fragility/
OK, I give up.
That Russell Napier guy said it: “one must do precisely what everyone else does.”
I’m closing all my puts now and it’s nothing but SPY calls for me from now on.
This is totally irresponsible. The Federal Reserve is there to conduct MONETARY policy only, not fiscal policy. Fiscal stimulus programs should be passed by congress or via executive order by the president. I thought America had better standards of decency than this.
The POTUS is not supposed to have any fiscal policy powers. Those are supposed to be reserved to Congress but we get executive orders, executive killings, the unitary executive and a private Federal Reserve bank now performing fiscal policy.
Since the Supreme Law of the Land is now null and void does that also mean that we can now go about the hanging of these fuckers from street posts en masse?
POTUS has much higher job approval rating than Congress. Senators from small backward states are the worst. They want to preserve their backwardness at all costs.
But we are talking about mafia henchmen versus the don. They are all shysters who are bought and paid for by their overlords.
Huxley, I think your comments about us small backward states are unfair
and so does my sister/wife.
and for someone as prescient or at least paying attention as tyler d. : http://www.hussmanfunds.com/wmc/wmc101122.htm
Bravo, A non satiracal sarcastic and intelligent remark, Must have been hard. Greenie 4 u
Manthong: looks like you might have picked the top.
I was kind of hoping a public proclamation of capitulation would help things along.
At least the SPY P104's I picked up at 1:00 pm are green.
at least.
We're all living in Amerika
Amerika ist wunderbar
We're all living in Amerika
Amerika
Amerika
Amerika ist wunderbar
Wenn getanzt wird will ich führen
(Where there's dancing, I want to lead)
Auch wenn ihr euch alleine dreht
(Even if you turn [dance] alone,)
Lasst euch ein wenig kontrollieren
(Let yourself be controlled a little)
Ich zeige euch wie's richtig geht
(I show you how it's done right)
Wir bilden einen lieben Reigen
(We're lining up nicely)
Die Freiheit spielt auf allen Geigen
(Freedom plays on all violins)
Musik kommt aus dem Weißen Haus
(Music comes from the White House)
Und vor Paris steht Mickey Maus
(And before Paris stands Mickey Maus)
(We're all living in Amerika)
This is not a love song
This is not a love song
---> I don't sing my (mother's) tongue
No, this is not a love song
We're all living in Amerika
Coca-Cola, sometimes war
We're all living in Amerika
Amerika
Amerika
Love it! I only wish I could go play pinball on the moon with those guys!
pods
Great, just great...now I've gotta listen to that whole album. Thanks.
I thought we all lived in Oligarchies in the West ?
Oligarkistan is the place i believe you are mentioning
nothing new here
http://expose2.wordpress.com
HAHAHAHAHA!!! Just heard the idiot on Fox Business state, "From Last Monday to today, the Dow Jones is up 1000 points, and that's the greatest gain in seven trading days in nearly three years!"
Okay, this proves that these people simply parrot what they're told to say. Hmmmm...what happen almost 3 years ago...this is a tough one!!! OH YEAH, THE FINANCIAL MARKETS WERE IMPLODING!!!
The only difference this time is that the financial cheerleaders, uh I mean "media", isn't going to make the same mistake of letting the silly little public know how bad it is this time around.
next it will be we haven't seen bullish action like this since the 1930s.
L M F A O
Well.....that run after the first crash was pretty good, before it went kerplop.
Need shirts that say, "Banks got $2T and all I got was a lousy 600 points".
How about "... and all I got was this lousy t-shirt."
Nominally even for the year... and for the decade.
Cramer releases new book... "How to get back to even III"
Who cares if it is good or bad?
EWZ is up about nine percent from where i got in a couple of weeks ago and as usual i announce my trades at the time of the trade ( 53.74 or 73...hey I was stoned give me a break).
It should hit 70 before the year is out.
Santa is coming early!
don't get too excited. what you are seeing is just inflation thanks to UK QE3.
remember QE is just to save banksters' asses from their mistakes of not doing their risk analysis job properly and getting out of bankruptcy.
im buying DOG and SH hand over fist as this market rises
Might want to throw in some IT (Gartner Inc.) to balance out that portfolio.
there is nothing balanced about the market, nothing i need to balance....
Christ. DOG.SH.IT. Tough crowd.
very nice...wayyyyy over my head
http://www.amazon.com/TOBAR-Fake-dog-poo/dp/B001T2RGGO
Shit ain't free no more....literally. FAKE Dog shit costs $8 + shipping + tax these days.
Real dog shit is free. You can take all you want from my front lawn,
and I don't even have a dog.
agree, its not a great low, but without much interest under 42.75 don't need to risk much to know you are wrong. This thing trades like shit anyway, what the hell am I talkin about? Maybe some options as well, upside calls don't seem to rich, if there is some extreme lockdown situation, you wont be able to trade it outright anyway!
WOW yea and its so normal having markets swing + - 10% in a few days! Real stable lookin!
Lindsay Williams warned we'd be seeing this in the fall in a speech last Feb., right before the big rug pull-out.
load up sheepie, keep the whiskey and bourbon comin.........
The time is getting closer
Our time is now.
Sounds like we need to End the Fed.
When your patient has a tumor, you don't fix the tumor, you cut it out.
no, the new normal is you pay it's hospital bills, pump it with steroids, support it's family, put it's kids thru college, replace his heart and liver, give the nurses a raise, tax the doctor and medical device maker and when he dies blame Bush.
I blame Tree.
2 good! Personally I am blaming everybody. Ctrl/Sarc
the FED is telling congress that the richest 1% of fat cats gotta pay up
I am sorry but I strongly disagree: FUCK. THAT. SHIT. Everyone should STOP paying their taxes. STOP FUNDING THIS SHIT!
the FED is demanding fiscal responsibility, what you suggest isn't sound fiscal policy, is it?
It worked for what? 130 years? Andrew Jackson?
I doubt a lack of funding would stop it. There are already not enough funds it just keeps going.
the fed is free to say that shit because they know there's no way in hell it will happen. the joo bankers are practiced liars, deceivers, chiselers.
End the Fed.
The Fed is inherently biased toward banks. To expect them to act otherwise would be stupid.
We must demand that our congressional representatives do their duty and excersize control of the purse. And by golly ... you better believe that includes not allowing the Fedury (Fed Treasury) to spend American Tax payer money.
Little Ole Fayetteville Arkansas will be having a OWS rally on Saturday. I'll be there.
not biased...the banks are branches of the Fed. The Fed is a bank (the biggest). No bias, just business.
And while all the robots are pushing the stock market up, they're also pushing oil back up... just in time for Bennie boy to NOT BE ABLE to announce any kind of QE in early November because of higher commodity prices.. Suckers. Shooting themselves in the foot once again.
To the great despair of fringe libertarians, redneck goldbugs, nerdy anarcho-capitalists and other circus animals, the Federal Reserve Bank System will still be alive and kicking in one thousand years -- because the American people likes it and wants it.
I suggest the "Ron Paul" worshippers to read some elementary books about monetary history and Banking Panics before accusing a system which has worked perfectly so far.
whre ya been Hamy? threads lacked a certain "punch" lately... har har har
The Fed ...a system thats worked perfectly? at least we know who the class clown is now.
Enriching a small, select intellectual elite of Professors and PhDs is a small price to pay for the tremendous stability and economic benefits brought by a unified central bank.
I do admit that the FED owners can basically buy whatever they want in the whole world with counterfeit money. And so what? These men deserved their place.
I read this comment first and almost thought old ham had gone sarc-ola on us. Then I saw the one above it. Last time I heard of any country saying they would be around for a thousand years.......... how did that work out? We've been at war with Eurasia for longer than that Hamster.
"...system which has worked perfectly so far." spoken like a true hypocrite you must be part of the kleptocracy. we are suppose to be capitalists, we accumulate capital we are not 'debtists' so go screw your FED
Doesn't the FED 100 year charter run out next year?
crazy talk!
it does indeed expire in 2012 as far as I know. Ron Paul has got the veto pen ready. I sure do worry about his safety if he does in fact get the party's nomination.
Hey its hamy!
What was it you said about no greek default?
hellz ya fed... let them crooks have it!
[quote]Everything else is decided in a banker-filled conclave.[/quote]
When The Bernank needs to be replaced, will we be seeing white or black smoke come out of the chimney?
Oh well, and the markets continue to move higher.
Though being knowledgeable and informed seems to be the right thing and best investing strategy, it doesnt change how the market reacts and the reality of how to make money investing in this market. While all can say it is just time before it crashes, those are still realized gains being made out there this last week.
Bernanke for Shadow government Prez 2012
It is sad to say but I think the only way things will be different will be the day someone takes out a banker or a politician which will slowly change the minds of the other cronies whether its worth it for them to continue this game of raping the middle class for another day or to just quit and take all they have stolen for the past few years and leave this game entirely to save their sorry asses.
Yep.
Divided States says: It is sad to say but I think the only way things will be different will be the day someone takes out a banker or a politician which will slowly change the minds of the other cronies whether its worth it for them to continue this game of raping the middle class for another day or to just quit and take all they have stolen for the past few years and leave this game entirely to save their sorry asses.
Not really. The Banksters and their Political whores have already bought protection vis a vis the military and local and federal police forces. Homeland Security is already drawing up a list of continental terrorists. The Media are also at the ready to scare the populace into submission with 24/7 stories of homegrown terrorists...."IS YOUR NEIGHBOR A TERRORIST.....10 SURE SIGNS TO LOOK FOR" tonight on FOX/CNN/MSNBC/CNBC/NANCY GRACE..etc.
Welcome to Prison Planet.....welcome to Fortress Amerika.
good cop, bad cop, plosser trying to give some "cred to the fed" in light of the political whoop-ass its receiving. hes a FED OFFICIAL. PLOSSER WORKS FOR THE FED. when he steps down and calls for the end of the fed, maybe i might start listening to him....maybe....
GEE the country is actually a fascistic centrally planned Bankster Kleptocracy? NOOOOO you dont say!
I knew it I knew it, Bernanke wants to be president, but he is too ugly.
Holy Crap!!! You really mean this is NOT a republic here in the USSA anymore? Ctrl/sarc
Vodka anyone?
They might think the Republic is over and done with but a future jail term awaits those who ignore the will of the people.
Jail? If you review your history, you will likely discover that a far more fitting end awaits the bastards.
Isn't that the same as insider trading? They have the largest checkbook, push the market in the direction they want, can digitize more money when needed, etc., etc................... What's wrong with this scenario?
End the Fed. We don't need no stinkin' Fed!
A shock to hear some Fed members suggest the Fed has gone beyond the pale. Many others here at ZH also agree that the unelected, unaccountable Fed is really the driver of all US policy, foreign and domestic. Hot wars? Currency wars? Global warming agenda? New Taxes? It is the shadow government in plain sight causing wars and domestic strife. Fed is a private entity of the banks, by the banks and for the banks. But then, everyone here already knows that. Not a tin foil conspiracy theory, a RICO worthy conspiracy fact.
It's become clear that the Fed is by far the biggest threat to national security.
#OCCUPY-THE-FED!
Oh yeah, BTW --- Bank of New York was just caught stealing billions from pension funds and accounts. They illegally charged exorbidant fees on client fund's foreign transactions over decades and it was never called out. Now it has been called out and this was no technical glitch. This was just deliberate, systematic theft.
But no one will go to jail. Nothing will happen to them. Why? Because Bank of New York is the biggest clearing house of government bonds. They will not go down because the banking system is "too fragile" and it would jeopardize the US government itself. TBTF so they are immune. Well, good to know the firemen's pension fund situation in the US is not fragile and can take it.
CYA -- another reason the TBTF may decide to have their subsidiary, GOV.CO, confiscate private pensions and 401Ks to co-mingle with insolvent SS and public employee pension systems.
Off Subject: I think the group "Anonymous" is officially full of shit!!!!! How do you make these bullshit threats of shutting down facebook, or the NYSE and do nothing? I really don't care what they do, but fool me once shame on you..fool me twice then fuck you!
How is Twist fiscal policy?
I agree with everyone but who is to say we even know the whole story? The Fed already has an unusual amount of control.....they only move their asses when they absolutely have to, and look at them running now. Even not having all the information, to see them taking such actions ought to be very fucking telling.
Hugo Stinnes would be proud!
+1913
"We are anonymous and we a are full of complete shit"...."on Nov 12 we will bring down the entire power grid (in robot voice) in all OWS cities as a reminder of who is really in charge. Pay no attention that we have never followed through on any other threat of this kind. We are Anonymous, we are legion" we are full of shit!!!
We all have our pet peeves around here, yours is "Anonymous", apparently.
Hi mister 7 weeks on zerohedge and think you can achieve anything with your useless trolling?
P.S. You might want to thank the other shameless troll that put a green on your "full of complete shit" post
The fed has over-reached their capacities as a central bank and now it's time to put an end to this nonesensical degradation of our economy. End the fed.
Mark these dates....
February 3, 1913
December 23, 1913
These are the dates of the ratification of the Federal Income Tax and the Federal Reserve respectively
1913 is the year that the American Republic got double-tapped in the head. This is the year by which crony-capitalism, corporatism and/or fascism began its inexorable march to victory.
There should be, along with Occupy Wall Street protests...if they last that long...days of mourning for the Republic, especially on these days in the year 2013.
another reason for Germany to buck up
http://www.globalpost.com/dispatch/news/regions/europe/italy/110915/berlusconi-calls-merkel-unfuckable-lard-arse
Bring out the guillotines
I'm stacking silver, food, water, other necessities, pitch forks and torches.
...and an extra Guy Fawkes mask.
Speaking of pitchforks and torches...
http://www.timesfreepress.com/news/2011/oct/01/economic-trends/?opinionc...
Madoff whistle blower, Harry Markopolos, catches Bank of New York Mellon and State Street Bank stealing billions from pensions.
Business insider October 7, 2011. ZH done this yet?
And Now We Know Why Nobody Took Madoff Whistleblower Harry Markopolos Seriously... - Business Insider
Hmm, the Federal Reserve Act of 1913 was to create a private central banking system to avoid the politicizing and corruption of monetary policy of the United States. Now the Federal Reserve Banking system wants to be able to direct government policy and go nuts with corruption to maintain the Federal Reserve System.
End the Fed.
I think that current irrational exuberance epxressed in buying stocks of EUR is like denial, Feast in the time of plaque. Greece will default, Eur move into inflationary recession, banks suffer, USA stok market down, confidence and wealth effect out of the window, rdeflationary recession q1 2012. Anyway, I think, this is the last time ( may be whole october or november) to get into USD cash, out of stocks. Not as good as at 12800, but 11500 is not bad either. And buy silver or whatever is related to it and can not be overtaxed or confiscated,or nationalized. Not gold, yet- silver will return 300% in 2012, while gold almost nothing. If the markets function still normally in 2012 ( recession, who knows) , the best bet is get fast profits and get them out before someone taxes them 100% or declares illegal.
I have made also a correct short term ( 1 week) prediction about sharp increase in USD per EUR after October 5th, whose consequences I would like to expand upon. The area of correct short term ( 2 weeks ) prediction is encircled to make it visible in the long term graph.
http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&start=640#p34521
So what I have predicted on October 5th is , that USD per EUR will go up from 1,325 to 1,40-1,425-1,45 till the end of the year 2011. We see the first week of this movement already (of course, it will not move up in straight line, with hiccups, the line is to thick, but the general trend is clear):
Now, where is the logic? Eurozone debt crisis comes to its conclusion, Greece will default in November, that has negative impact on banks which has negative impact on stocks worldwide which has negative impact on business confidence and growth , leading to inflationary recession in Eurozone in q1 2012, and deflationary in the USA in q1 2012.
Why would anyone now buy EURos or Stocks?
I think here we have clear case of psychological denial of what pain is coming so soon, and irrational exuberance of short lived and temporary type impacting the investor behavior. If nothing can be done why not have some fun ( with irrational expectation that somehow things will turn out well).
I think one name for such behavior is (coming from Russian): "Feast in Time of Plague". There must be English saying with similar message.
Looking in the charts, what will happen next:
Greece will default, and from January 2012 there are less and less USD per EUR. As USDx grows, and so does quite a few PM/commodity vs USD, EURozone after dismissing Greece and who else will get inflationary, and in recession. Stocks (DJIA) will fall sharply after this last hiccup, and USA will enter recession in q1 2012, deflationary, with increasing dollar index.
1) For those with EUR, this period Oct-Dec 2011 may be the last one at least for 4-5 years either to buy USD or invest directly into PM, other commodities at good price levels given high USD per EUR ratio ( 1,38-1,45 is as high as it will go).
2) For people with investment in stock indexes, especially in USD, this is the last time to get out into cash at decent levels ( DJIA 11600 is not as good as 12800 but its only 10% below post Lehman USA stock market peak);
3) Once in USD cash, there is still time to buy Silver around 33 till April 2012;
4) For gold , there will be another opportunity window in late January 2012 for about a month to buy it at 1580-1620 USD again.That corresponds with the next dip in USD per EUR in early 2012 to 1,325.
No matter how large or clean a toilet bowl you have, people shit enough in it, there comes a time to flush it.
Fed system is not perfect, but there's too much shit in it, so it is time to flush it out of banking and start a new. Otherwise the productive citizens themselves will go seek a better, newer toilet bowl.
Pat Buchanan wrote about the end of the Republic a decade ago...Oswald Spengler saw this coming a century ago. Looks like the predictions are finally catching up the USA. I think the clock has stopped ticking and the alarm bell's been ringing for a minute or two. The voting public is groping for the snooze button.
The Fed is now in the "Fiscal Policy" business.
Of course. This is what happens when a branch of the government cowardly and unlawfully delegates their constitutional responsibility to another entity.
Inflation is taxation. The Fed Resv creates inflation. The Fed Resv is not elected by the people, nor is it's existence permited by the Constitution. Hence, we're back to taxation without representation.
July 4, 1776 The Founders signed a great document and pledged " their lives, wealth, and Honor to defend what they knew to be a great experiment in human history. Despite great odds, they fought, and won Liberty and Freedom for themselves and their posterity. And I fear if we don't defend those same principles,now, it will be us that lose what they pledged.