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Watch Kansas Fed's Hoenig Explain Why He Is Not A Fan Of QE3 And Why He Believes Buying Government Debt Is Dangerous
Watch Kansas Fed's (non-voting) Hoenig, long the only sane and dissenting voice at the Fed, discuss Fed monetary policy live at the House Financial Services subcommittee chaired by Ron Paul (and this time the audio actually works).
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Isn't this the same guy that rants on and on about how he hates QE then turns around and votes for more of it?
Hoenig was the only FOMC member who consistently voted against the Fed's idiocy
Hoenig = Controlled Opposition
If you choose to look at the world through that lens then we are all controlled opposition.
By whom is more important than if, but maybe why is even more so. When it comes down to it it's between the conscious mind and its maker. Those who serve darkness are aiding these forces whether or not they know it or want to, directly or indirectly. If you were given a position in the Fed, wouldn't you do the same thing instead of leaving it to one of the wolves. Whether he is a plant or not doesn't change what each self will do, and you can only control one.
Video not working for me.
(Mac OSX / Google Chrome browser)
http://www.videolan.org/vlc/download-macosx.html
without some form of qe, how has the fed been handling expansion?
I believe you're thinking of Dallas Fed Pres. Fisher. He criticizes it, then conssistently votes AYE to approve it! If am wrong, someone please correct me.
August 13th gonna be a fun day in Iowa.
http://www.ronpaul2012.com/
im perturbed to discover that mr. paul took a private jet for a trip that wouldve taken 2 hours by car.
By doing this, he can make 2-3 more stops per day on the campaign trail.
Time is the most valuable asset.
always make sure your candidate is a man of the people, not a man for the people.
Actually, it costs about the same to charter a private jet as it would to buy individual tickets for a team that travels along with him too. Plus, even if he was flying by himself it is still better because he can land at small airports major airlines would never serve. It allows him to reach more people and campaign more effectively if his time is managed well. Chartering private jets does save a lot of time, and again... depending on how many people are travelling with him it might be about the same or even cheaper than normal plane tickets.
Kito, do you smear Obama every time he uses taxpayer money to fly around in jet planes? At least the money Ron Paul is using was voluntarily given to him by people, and not stolen from taxpayers. But of course your goal here is only to agitate the Ron Paul fans.
Your avatar pic looks a lot like that Cenk douche.
As of November last year, AF1 costs $180k/hr to operate. I'm not sure if that includes the compliment aircraft, of which there are several, but I would assume so.
You can rent a Citation and carry 5 people around for about $800/hr. A 75-2 goes for about $5k/hr and you can sit over 180 people very comfortably. I'd say that's a better deal than individual tickets with an airline.
you dont use major airlines for a trip that takes 2 hours on the ground, so its not a question of public vs. private air travel. im not disparaging mr. paul on the whole, as he still by far the best of the lot, along with gary johnson . however, that does not mean i refuse to hear or see no evil. it becomes dangerous when you become so blindly amorous about a candidate as to not question any actions. as far as my avatar, he is the only leader with enough balls to expel the imf and world bank from his country. educate yourself.
Okay, well I'm sorry for making assumptions.
The thing is I don't get why this is worrying anyone... It should be encouraging actually... The fact he is using private jets to save time just shows how serious his campaign is this time around. Winning in Iowa would be a major boost to his campaign and he should be expending a good chunk of his resources trying to win in that state.
I'm preturbed that the Boss Lady took an entourage of something like 7 757's across the Atlantic for a few days holiday in Spain on the public's tab.
tyler, can you add a total up and down arrow score for your site. im curious to see if your commenters are providing more constructive or destructive criticism via the arrows.
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Right. I will only vote for a candidate making all his trips on horseback!
Unfortunately he and I have the same voting power now.
The FED are a huge bag of dicks.
He has a couple of votes left. Hoenig is President of the KANSAS CITY Fed until he retires in October. Unless I'm missing something, this one is a rare blooper by team Tyler.
It appears the headline has now been changed from "Atlanta fed' to "Kansas fed"; with all due respect, it should probably be "Kansas City fed". The amount of material that ZH puts out, and so flawlessly, never ceases to amaze me.
Much respect.
Kansas city is in Missouri.
The audio is not working for me.
Me niether...
It only works for me if I plug in earphones.
I inserted it rectally in order to gape my ass to get ready for QE3.
Well played Dick..you were correct and when inserted I can now not only hear brilliantly but for some reason I feel that QE3-17 and ZIRP for the next 4 years is actually the path to growth for the economy. These must be Fed issued headphones.
I remember when QE the First came through and the media and the Fed INSISTED further asset purchases wouldn't be needed. We all know how that played out.
The same story is rolling around about QE3, but history will indeed rhyme. I just wonder how many more rounds of hide the salami...fuck the middle and poor class....I mean hide the liabilities of the primary dealers...I mean "asset purchases" the bond market will take before interest rates rise and the Minsky Moment really shows itself.
We have been stading at the edge of this cliff for quite some time and I watch as the Federal Government is laying horizontal to the ground with only its toes attached to said cliff. Would someone fucking push him off the cliff already? Bond vigilantes? Anyone?
ponzi scheme rarely stop by themselves. They only stop when they blow up and run out of fools
im laughing so hard at your comments. You are wasted here try comedy central BY THE BY my friend was in a grocery store in the Cotswolds UK earlier and some elderly gent asked what she thought about the mess in the USA,I cannot remember when the American Governments decision on the debth ceiling mattered so much to the entire world!
It works - it´s just very bad.
Try using headphones.
Kansas City.
Kansas City, Missouri
Love the guy sleeping behind Hoenig
That sleeping man sure encapsulates the entire Amerikan public and their thoughts on monetary policy as it relates to asset purchases through primary dealers and created reserves.
If it ain't got titties, a football, or a beer involved, I don't know want to know about it. - Joe "Six" Pack
He'll know when he falls out of his chair.
21 minutes in and that guy has some sleeping talent. His ability to sleep while sitting rivals Benny's ability to print Notes....I am sorry......non-traditional money.
Hilarious. Love ZH readers.
Banks can borrow at 0.25 percent and buy Treasury bonds that yield 3 percent, keeping the difference. “It provides them a means to generate earnings and restore capital, but it also reflects a subsidy to their operations,” - Hoenig
It is strange to hear that sort of truth coming out of a fiat money master.
And demonstrates just how badly a banker has to fuck up in order to lose money in the first place.
Those auto accidents just keep missing him
No shit. Monetizing govn debt is bad? Who'd a thunk.
This country is so utterly fucked, just fucking crash already so we can all stop stressing out about it.
what the fuck is wrong with the sound?
In the 1990's, such a statement by a Fed Head would have sent the bond market locked limit down.
Instead, bonds remain well bid because nobody is strong or stupid enough to go toe to toe with Uncle Gorilla.
Bill Gross is finding out the hard way.
They are just hammering the currency this time around.
The Robot is just like the sheeple - he thinks because he's up 5% YTD he is winning. Dont waste your time explaining real and nominal with the sheeple. They think their Soya Milk Lattes are 25% more expensive because theyre trendy.
Are you some kind of shill/pigman for the U.S. Government?
actually the robotard has a more prestigious job than us government pigman. he's a part time 1099 processor for a commercial bank in los angeles. but his most useful purpose in life is being the ultimate contrarian indicator for the smart money crowd.
RT, BG has been investing in emerging market debt, which has kicked ass over the past 2 years, you know this but mislead intentionally
I am amused that everyone junks you.
Keep up the good work ;)
And you are right on the money about what would have happened in the 1990's. Before we had an economy by and for the stabilization of the financial system.
Interesting the Hoeing also said that "Great nations don't default on their debt". Which means that if the US defaults, it isn't so great anymore. Oddly, that wouldn't suprize anyone around these parts.
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July 23th, Peter Schiff: "The Dow priced in gold today is 6500, equivalent of the March 2009 lows. The ratio went below 8, to 7.8. This shows how the real value is going down as the market appears to be going up."
No junks from me RT. Just FYI why I am out of the market. They are playing games with which I am not familiar.
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Bullshit.
The single most important, salient factor driving bond prices is inflationary expectations. Ceteris paribus, the more debt monetized, the greater expectations, the higher go yields.
The evidence is clear within just the last several years. QE(s) announced, yields rise. QE(s) run out, yields fall.
If ya' don't believe it, don't trade bonds.
Or if ya' don't believe it and are gonna trade bonds, be my counterparty.
Mr. Hoenig is a Benedictine College, Atchison, Kansas graduate.
Last week I learned gold is not money- Ron Paul...lol
"Give me the definition of a dollar."
Lol
Ron Paul: " I just learned that Gold was not Money, so I'm confused"!!!
Benranke will NEVER live that comment down!
Someone stick that exchange up on youtube i missed it. Plus it sounds like Hoenig is talking from inside Bernankes colon.
Who's the fuck-head sleeping in the background???
The Bernak's hall monitor.
Lol at the dude sleeping behind Hoenig.
Hey Hoenig. We need a plauible opposition guy. You get up there and vote nay every time, and say how you think there may be some risk. We gotta keep 'em guessing!!!
Sorry to say, that's how I read it too. For a while I was sad at the thought I had become cynical and now I know I'm a realist. The semiotics of the 21st century are poisonous.
Ron Paul: Ask him how many pancakes it takes to shingle a roof since a football has no wheels.
dude, that was a total lol here in my office. nice one.
Off topic, but this was quite interesting. The video is quite long, but they synopisis gives you a good idea. http://www.dailykos.com/story/2011/07/26/998944/-VIDEO:-WI-DMV-Tells-Boy-His-Bank-Account-Doesn’t-Show-Enough-“Activity”-To-Get-a-Voter-ID
no way man, God kills a kitten whenever someone links to DailyKook.
Pass!
Talk about having a skunk at the garden party: maybe that's why regional Fed President Hoenig is not a voting member of the FOMC - but his words are a shocker all the same. Example :
Fed's Hoenig: US Banks Need to Get Back To Core Business |Fox Business |May 24, 2011
| Dow Jones Newswires
NEW YORK -(Dow Jones)- The U.S. financial industry needs to get "back to the business of banking," with regulations that promote a more competitive and stabilized landscape, said a regional Federal Reserve president Tuesday.
At a monetary and trade conference in Philadelphia, Kansas City Fed President Thomas Hoenig voiced his support for the Volcker Rule--a clause in the landmark Dodd-Frank financial reform act that prohibits banks from engaging in their own proprietary trading and involvement with hedge funds and private equity funds.
Instead, Hoenig said banks should be limited to their core business of taking deposits and extending loans. Other fee-based services such as underwriting securities, asset management and advisory services should also be allowed, he said.
Riskier activities that should be restricted include trade-related operations, ranging from propriety and customer trading, to brokerage and market-making services, Hoenig said. Trade as a means to make money is inherently risky, especially with a bank's funding source being long-term in nature misaligned with the short-term stakes in trading.
"Trading is an adversarial zero-sum game," Hoenig said in his speech. "The trader's gains are the losses of the counterparty, who is oftentimes the customer."
The U.S. financial system was able to reach this stage of complexity because the public safety net has been cast wider and wider through the years, Hoenig added. The industry went from 14,000 highly competitive commercial banks in the late 1980s, to a highly-concentrated environment where the five largest financial institutions control assets worth nearly 60% of U.S. gross domestic product.
"As risks intensified and new crises emerged, this safety net was continually expanded...to ensure systemically important institutions didn't bring down the economy," Hoenig said. "This process inevitably led to the picking of winners and losers--not through competition and performance, but through bureaucracy."
Hoenig added that the fear of U.S. banks losing competitiveness versus foreign lenders or fleeing to operate abroad would be an "unfortunate" but questionable outcome to the tougher U.S. regulation.
In fact, the regional Fed president supported extending the reform efforts to crack down on the shadow banking system as well. Hoenig suggested marking the net asset share value of money market mutual funds to market. That would give a more accurate reading on value of the short-term funding provided to shadow banks.
Furthermore, to prevent repo runs in the shadow banking system, bankruptcy law should be revised to eliminate the automatic stay exemption for riskier mortgage-related repo collateral.
"The proposal...will not take all risks out of the financial system," Hoenig said, but it will improve its stability "by clarifying where the risks reside...It also will promote a more competitive financial system."
Hoenig, who is a non-voting member of the Federal Open Market Committee, has been vocal in his concerns about inflation and the need to raise interest rates.
Read more: http://www.foxbusiness.com/industries/2011/05/24/feds-hoenig-banks-need-core-business/#ixzz1TF5Wr2n9
Thanks for the post. Seems like he really is the only sane member at the Fed.
It must be challenging to keep his sanity surrounded by insane crazies who call him the crazy one.
He might go "Norwegian" at the next Fed meeting.
If he did go norwegian at the next fed meeting he'd be called national hero
Excellent discussion, not likely to be reported on MSM. Following last week's revelation from BennyBucks that gold was not money, Ron Paul was able to continue his pursuit of what money is, by the definition of a dollar per "The Code" - which at one time (constitutionally?) defined the dollar as so many grains of silver. His question included the comment that a Federal Reserve Note is a debt instrument and not money. I don't think Hoenig's answer was satisfactory but perhaps I didn't listen closely enough. Some discussion on the US $ as global reserve currency by default - until an alternative becomes available. The Chinese are watching while we twiddle our thumbs, the Euro has problems but Hoenig thinks there's a generation and time for US to stablize the economic foundation of the nation. I'm not so sure, $ breakdown may possibly result in imported oil priced in gold and all of the hyperinflationary consequences that might result.
Hoenig basically confirmed that as long as people treat the Note as money that this charade will continue. Once that stops, so does the warfare, corporate welfare, nanny government ponzi will be dealt its death blow.
Ok, sell off happening with no Algo's stepping in......... What's with that??
Time to crash the market to get these congressman to do something?
Do something as in pad the corporate warloard's pockets a bit more - which is all a debt-ceiling hike would be.
Si. In the best interests of Wall Street to have debt ceiling raised in perpetuity, economy tank, QEBazillion.... lots of underwriting, flipping, dirt cheap (almost 0%) cost of carry, money flooding the system jacks up equities (Oh, goody Lloyd! Look what they gave us for bonus time!) Keeping the status quo as is, is as important as it can get.
Robbery is Job One
the guy is ready for his auto-pink slip..he is smart since he doesnt want on his whore resume a inconsistant voting record. a pink slip is better than a pink sore eye on Uranus.
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I had a wife who was expert at QE. She had three credit cards and she used each one to make payments to the other as they secretly spiraled up out of control behind my back. She could teach the Fed a thing or two. Her's were all also non-recourse.
The Fed is doing the same thing with the Squids, Euro CB's, and USTs. My ex could testify in Congress. She could show them how to stretch it out for years and years, and at much higher rates than these punks.
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what fed is doing is even crazier: imagine your wife creating her own credit card out of thin air to pay the other credit cards telling the bank that all debts has been paid. Then she buys bunch of guns with her credit card. Then she goes to the gas station and tries to pay for gas using her credit card. They wouldn't accept it, so she pulls out the gun. Repeat at all the gas stations.
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Excellent point.
But let's not give her any good ideas. Her specialty is extend and pretend. Last I heard she was still doing 5-10 in Woolworth, not Leavenworth. .
You know, Kansas City gave you William Black and now Hoenig. Perhaps the locus of the financial discussions from here on need to center in the midwest rather than New York or Washington.
Most of the exchanges are already in the midwest:
non-midwest
But the banksters are all in New York. The reason North Dakota has their own bank is that because they didn't trust New York focused banksters while producers/farmers are not.
Hoenig is in an extreme minority of Fed officials. Most senior officials at our Federal Reserve understand that fiscal stimulus is an essential catalyst for the global recovery.
The banks who are the owners of “our” Fed keep recovering and recovering until there’s nothing left in the U.S. economy for global recovery. i.e., for stealing.
Collis P. Huntingdon explains their philosophy: “Whatever is not nailed down is mine. What I can pry loose is not nailed down….”
Hoenig is to be respected.
Leaving with his reputation intact.
FYI Kansas City, MO and Kansas City, KS are close, but not the same cigar..........
Really? I don't notice the difference of morons and i've lived around here all my life. Thank god I live in the country, 50 miles outside of KC. Hard to believe standing in my front yard with no other houses in view of how close that shithole actually is.
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