Monday, January 5, 2015
IN PROFILE: The Second (?) Most Powerful Banker in America
In the EPJ Daily Alert, I point out that Fed chair Janet Yellen regularly wanders far off the money printing reservation giving absurd politically correct speeches on inequality and women's work "issues." At the same time, vice chairman Stanley Fischer actually delivers speeches on monetary policy. My thesis is that Fischer is really running the show from the second chair. He didn't get the chairmanship because he would have had trouble passing confirmation as a dual American-Israeli citizen and because he was formerly head of Israel's central bank. But, as far as I am concerned, he is in charge.
It makes sense to pay attention to him. Kate Davidson has a soft profile of Fischer in Politico. Read between the lines.
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This makes sense to me. After all, Bernanke & Draghi were students of his at MIT, and the Bernank and Meryvn King shared an office at MIT around that time as well.
ReplyDeleteWhat an incredible crony circle...it seems apropos that the Four Horsemen of money printing complete the circle by putting their dark leader in charge behind the scenes.
The whole thing reminds me of Palpatine.
These evil banksters will scurry like cockroaches when their insane Keyensian policies destroy the world economy. Prison is far too good for them.
ReplyDeleteThat makes sense. I thought she seemed like a nit.
ReplyDeleteIs The Brown Stuff About To Hit The Fan?
ReplyDeleteRecall that Henry Paulson was Treasury Secretary when Goldman de facto collapsed. Paulson was the former CEO of Goldman and had been appointed Treasury Secretary in July 2006. As it turns out, Goldman had been impaled on AIG’s nuclear mortgage -derived credit default swaps, to which GS was the main counter-party. I have always suspected that Paulson was inserted into the Treasury post because “they” knew that eventually the big banks – led by Goldman – were going to hit the derivatives wall and a Wall Street bank representative inside the Treasury would be needed to fix the problem.
Fast-forward to today. Who is the Treasury Secretary? Jack Lew. Jack Lew worked at Citibank up until late 2010, when he was moved into Government “service” as Director of the OMB. After that he was appointed Obama’s Chief of Staff. In 2013 Obama appointed him to be Treasury Secretary. Lew is clearly a political beast but I find it interesting that a former Citi employee is now Treasury Secretary at a time when Citi is now the largest derivatives owner in the U.S. and the 2nd largest in the world (Deutsche Bank is #1).
And, Zerohedge points out, Citibank was the primary force behind the recent legislation passed by Congress – legislation that was buried into the controversial budget Bill – which allows banks to move their derivatives into their FDIC insured subsidiary. This legislation, by the way, is a de facto bailout-in-advance for the Too Big To Fail Banks. Remember, Obama promised no more bank bailouts. Once again he lied.
http://investmentresearchdynamics.com/is-the-brown-stuff-about-to-hit-the-fan/