The Next Fed Chairman?

Thu, Sep 19, 2013 - 12:59am
In light of the absorbing Federal Reserve developments of today, let us stay on that theme: who will be the next Federal Reserve chairman?
Lawrence H. Summers, Nope. He withdrew from consideration. Despite the Fed chairman not being a political position, it seems the Senate Democrats pressured Summers to withdraw his nomination, fearing that the Senate would never vote to confirm Summers as chairman. So, it was political. But was this the real reason? Not a chance. Summers got the back of the limousine conversation. The one where a limo pulls up, Summers gets in. A scary looking guy tells Summers to withdraw from consideration as Fed Chief. Summers says he wants the position and will not withdraw his name. The scary guy pulls out a photo of JFK and tells Summers: "Look at the picture of the last guy who said no." The limo pulls over, Summers gets out, pukes, and promptly resigns. That's why.
Timothy Geithner, a life long public servant, an insiders-insider, will it be him? Nope. Despite his perfect credentials, central banker, 75th secretary of the treasury, previous president of the Federal Reserve Bank of New York, why NOT him? Umm, because he looks like Beavis? Or is it because he is subject to withering criticism of the past TARP bailouts, or is concerned that the deficit is too high? Neither. He used up his time in office to good effect, and he has no more use to the elite. He also is almost certainly aware that this Fed Chair gets to preside over the western bankster collapse, and wants no part of that historical problem or baggage. He may be counted on by the banksters to do the right thing, but Tiny Tim has a way of screwing things up. Remember the USA downgrade: "No chance of that" is what he said. Oops, seems Geithner forgot his lines. That’s why.
What about Janet Yellen, She is perfect. In every sense of the word. Harvard assistant professor (so she is smart). Professor of economics at Berzerkely, so she is a perfectly fine Keynesian economist, who probably completes Krugman’s sentences from time to time. She’s been with the Fed since 1994, and is the current Vice Chairwoman of the Fed. Sheesh, wikipedia has even updated its page on her, naming her as frontrunning contender for the Fed Chair as of YESTERDAY! She is a woman, too, duly emphasized by the New York Times, making her, according to the New York times, “historical” in the event she is appointed to the post. I wonder if the New York Times would consider convicted felon Bernie Madoff an “historical” selection for Fed Chief because he would be the first convicted felon to hold the post? Oh well, political correctness aside, Janet Yellen is absolutely perfect, from a political, Keynesian point of view, and that is exactly and precisely why Janet Yellen will not be the next Fed Chair.
William C. Dudley, will be the next Fed Chair. You heard it here first. He will not be the next Fed Chair because he is more qualified, or looks like a bankster, or happens to hold a PhD from Bezerkely. No. He will not be the next Fed Chair because he is the president of the Federal Reserve Bank of New York, or Vice Chairman of the FOMC. Nope.
Dudley will be the next Fed Chair because he is a former Goldman Sachs bankster. It is as simple as that.
The elite western banksters need Dudley in position to forestall erosion of power from the western banking elite to the east for as long as possible, and then, when collapse is imminent, the western elite need Dudley to help usher in the new currency. That’s why.
While Yellen gets the press, Dudley is choosing office decor.
You heard it here first. Prepare accordingly.

About the Author


Sep 19, 2013 - 9:03am

Next Fed chair

I think Cal Law's reasoning for Dudley is very good, and under normal circumstances I would completely agree... but I have a suspicion that Goldman may not want "one of their own" to go down in history as the next Fed chair, or have the events that are coming be presided over by someone linked directly to them. The next Fed chair will be a patsy, someone to take the brunt of the blame for what comes next.

Given that thought, I discovered something interesting when I was searching for material for a photoshop a few months ago. I did a google search for images of Yellen, and I was struck by how truly poorly she comes off visually- in 70 or 80% of the images out there of her, she has her mouth agape in a confused, slightly dithering way. I know this woman is not dumb - I may disagree vehemently with her economics, but she has to be very, very smart to have done what she has done - but she sure doesn't look that way. Check out a partial screen-capture of google images for this woman:

She looks slack-jawed and confused, perhaps in over her head and trying to grasp what she should do... and this seems to be her default facial setting. It appears over and over in images of this woman, and it communicates the exact opposite of the cool, commanding competence people desire in important leadership posts during difficult times. It is obviously unfair to judge her by her appearance alone, but the reality of a media-driven society is that the visual image is everything. Now, imagine this expression in the following scenarios being played-out in live congressional hearings:

"Madam Chairwoman, gasoline prices have risen five-fold since you assumed office, creating an enormous drag on the economy. Why should people not question your current policies?"

"Madam Chairwoman, the American middle class has seen it's net worth cut in half in the last three years, and GDP has been negative for six straight quarters now. How confident are you that the Fed's approach to Quantitative Easing is the correct policy choice?

"Madam Chairwoman, many are blaming the policies of the Federal Reserve for the crippling inflation we are facing, inflation which was a major factor in the recent food riots in Cincinnati and and Buffalo, could you comment on this"?"

If the choice is Yellen, we will know for certain that the endgame is near, and they want an easy mark to pin it all on. That's my 2c.

Sep 19, 2013 - 9:04am


Every comment I have about that McCain piece is self evident. Stunning!

Be Prepared
Sep 19, 2013 - 9:09am


I'm telling you... Alien... that's all. :-)

Like you said, though, she is certainly intelligent, but the last thing we need is another liberal academic with a Spendomics emphasis and a minor in Print-o-matic leading this journey. The patsy idea fits.

Sep 19, 2013 - 9:12am

Renminbi still seen as weak currency:Further Devaluation Coming?


Renminbi still seen as weak currency despite rising global status

  • 2013-09-19 / 12:23 (GMT+8)

Renminbi banknote and coins. (Photo/CFP)

The renminbi is more popular than ever but continues to be considered as a weak currency in the international market, reports the Beijing-based Economic Observer.

On Sept. 6, the Bank for International Settlements (BIS) unveiled a report about foreign exchange turnover, saying the turnover of the renminbi has jumped to ninth from 17th in 2010, surpassing the Swedish krona and the New Zealand dollar.

The internationalization of the renminbi has continued to push up the currency's turnover, rising to No. 4 after only the US dollar, the euro and the Japanese yen in three years, said Hu Wentao, senior director of JP Morgan Chase RMB transactions.


>>>Hua Xia Bank introduces five gold and silver coin ATMs in Beijing<<<


With such a background, international investment banks have been confidently promoting their renminbi business, with JP Morgan Chase even setting its China policy to promote the renminbi to multinational companies.

According to the BIS report, based on figures compiled in April, the renminbi's daily turnover tripled to US$120 billion this year compared to the past three years, accounting for 2.2% of the global foreign exchange turnover. Though its turnover is still far behind that of the US dollar's daily average of US$4.7 trillion, the renminbi's turnover growth has become an apparent uptrend.

In addition to foreign exchange transactions under the current account, investors also hope to invest in and hold the renminbi, thus gradually pushing up its turnover, Hu said. Some central banks, sovereignty funds, mutual funds, insurance companies, financial institutions, enterprises and individuals are also interested in investing in the renminbi, Hu added.

In the past, most central banks and investors chiefly invested in the US dollar and euro, but after the 2008 global financial crisis and the euro debt crisis in 2011 they need to diversify some of their assets into more stable currencies such as the renminbi. The currency is seen as stable as China's inflation is always controlled within 3%, making the nation's real interest rate pretty high, Hu said.

Since Sept. 9, the central parity rate for the yuan against the US dollar rose for four consecutive days to 6.1575 on Sept. 12, a record high since China conducted its foreign-exchange reform in 2005.

Insiders said that China's central bank recently actively intervened in the foreign exchange market, having bought about US$10 billion worth of US dollars since August. But the non-delivery-forward market showed expectation of a renminbi depreciation, quoting the one-year renminbi at 6.2170/6.2200 on Sept. 12. Hu estimates that the yuan's central parity rate will reach 6.13 by the end of this year.

The renminbi has appreciated more than 10% against the US dollar over the past three years, however it is still seen as a weak currency compared with its economic size. China's GDP accounted for 11.75% of the world's total, next only to 22.4% of the US, but among the foreign exchange turnover, the renminbi accounted for just 1.1%, far behind 43.5% of the US currency, the paper said.

Sep 19, 2013 - 9:19am

Breaking News...

Just out and just a headline at the moment...'s a bit more starting to come out... JPMorgan makes deals to pay $920 million for Whale probes

A U.S. and JPMorgan flag fly in front of the headquarters of JPMorgan Chase & Co bank in New York, March 15, 2013.

Credit: Reuters/Lucas Jackson

Thu Sep 19, 2013 9:08am EDT

(Reuters) - JPMorgan Chase & Co the biggest U.S. bank, will pay approximately $920 million in penalties to regulators in two countries to settle some of its potential liabilities from its $6.2 billion London Whale derivatives loss last year, according to terms made public on Thursday.

The penalties include $300 million to the U.S. Office of the Comptroller of the Currency, $200 million to Federal Reserve, $200 million to the U.S. Securities and Exchange Commission and 137.6 million pounds ($219.74 million) to the United Kingdom's Financial Conduct Authority.

The regulators' citations focus on failures in risk management and financial reporting systems. JPMorgan was also cited for failing to tell its board of directors and regulators about deficiencies in its risk management systems that had been identified by management.

Mr. Fix
Sep 19, 2013 - 9:21am

Excellent article, California Lawyer.

Deciding the next Fed chair, is probably not as important as knowing that the next Fed chair is on a mission to destroy the dollar.

That is the plan, and ushering in the new SDR is also part of it.

In between, things are going to be very nasty.

Prepare accordingly.

Sep 19, 2013 - 9:29am

@Pining-If you think she looks bad in pix....

I noticed the same thing about her pix, but she's even worse on film!

Janet Yellen, S.F. Federal Reserve Bank, discusses US recovery from recession - Haas School
TreeTop Dweller
Sep 19, 2013 - 9:34am

McCain -DPH

Jeez, can there be a better example of how low our politician's are willing to stoop?

This thing is spinning out of control and they are trying every school boy trick to buy time.

I believe you deserve the opportunity to improve your lives in an economy that is built to last and benefits the many, not just the powerful few. You should be governed by a rule of law that is clear, consistently and impartially enforced and just. I make that claim because I believe the Russian people, no less than Americans, are endowed by our Creator with inalienable rights to life, liberty and the pursuit of happiness..."

Now try saying that in front of the mirror 3 times fast without breaking out laughing.

Sep 19, 2013 - 9:37am

Next Fed-head Dudley?

Cal Lawyer, I like how you think. Dudley has that over-arching experience as a GS alum.

Yellen is the front-runner, therefore she will not be chosen. Never do what the public expects. And, not an alum of GS or JPM.

Remember a few years ago, when Tiny Tim was chosen, Jamie Dimon's name was mentioned in some circles, as I recall.

Now, there's a dark horse!

Of course, JPM has taken on a bad-boy image with the likes of Turdites, but most people never heard of him. Since he actually runs the government's day-to-day funding ops, maybe, just maybe he ekes out over Dudley.

Mr. Fix
Sep 19, 2013 - 9:42am

The destruction of capitalism, another ironclad goal.

Why Obama Allowed Bailouts Without Indictments

Submitted by Tyler Durden on 09/18/2013 - 23:11

"The government’s bailout plan destroyed capitalism. In a capitalist system, those who stood to gain–and already made off with large gains—would have to bear the risk. The bailouts represented a corruption of capitalism. Crony capitalism violates the spirit of democracy established by the Founding Fathers of the republic known as the United States." - Janet Tavakoli

All of the suffering and hardships the majority of Americans are experiencing today are directly related to the coup pulled off by the crony financial oligarchs in the fall of 2008, and all of the media and political minions that helped them do it.People realize we have become a Banana Republic and they have now lost all hope.

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