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 - 1:41pm
Sep 19, 2013 - 1:47pm

This can't be a good thing...

5.8 Magnitude Quake Shakes Fukushima

Submitted by Tyler Durden on 09/19/2013 - 13:29

How could the Fed have known?


Of course, we are sure Abe will just rebuild it all, ringfence it with another ice-wall, and welcome athletes from all around the world to his 'stable' nation.

Sep 19, 2013 - 1:49pm
Sep 19, 2013 - 1:50pm

Wait a second!!!!!

5.8 on a scale of 7?!?!?!?

That's terrible and horrific! What does 5.8 mean in Richter Scale?

Sep 19, 2013 - 1:52pm

And here you go...

5.8 on the "Shindo Scale"

6-lower (6弱) / 5.5–5.9 Difficult to keep standing. A lot of heavy and unfixed furniture moves and falls. It is impossible to open the door in many cases. All objects will shake violently. Strongly and severely felt outside. Light posts swing, and electric poles can fall down, causing fires. Less earthquake-resistant houses collapse and even walls and pillars of other homes are damaged. Apartment buildings can collapse by floors falling down onto each other. Less earthquake-resistant buildings easily receive heavy damage and may be destroyed. Even highly earthquake-resistant buildings have large cracks in walls and will be moderately damaged, at least. In some buildings, wall tiles and windowpanes are damaged and fall. Gas pipes and/or water mains will be damaged. Gas, water and electricity are interrupted. Small to medium cracks appear in the ground, and larger landslides take place.

Sep 19, 2013 - 1:54pm

Reading the info above

If the earthquake was THAT STRONG, how could all of those damaged reactor buildings withstand the shaking. And how about the buildings holding the spent fuel rods???

Sep 19, 2013 - 1:54pm

Sorry, I don't mean to panic but...

God only knows what's happening on the ground, right this minute...

Mr. Fix
Sep 19, 2013 - 1:59pm

Still think this is a coincidence?

As bad as Fukushima already was, it's been widely reported that only a moderate earthquake would be required to collapse the spent fuel rod cooling pools which are five stories in the air. Such an event would cause a radiation release that could literally wipe out the northern hemisphere, making it all uninhabitable.

We've known about this for a couple of years now, even if you don't subscribe to Jim Willie's theory that the original quake was initiated by a nuclear warhead, just the fact that nobody has done anything to secure those pools, tells me that this event was prearranged in order to cause a catastrophe.

This one's worth following closely, it's more relevant to the future of mankind than how big your stack is.

Sep 19, 2013 - 2:05pm

Another question to Sinclair re: pensions . . .

Might be important if we survive latest Fukushima event:

Dear Jim,

When you say that all IRA’s will eventually be confiscated do you also mean physical PM IRAs as well? I know an IRA is an IRA, but the logistics of confiscating physical PM in an IRA sends a huge red flag to the world, key markets and American citizens in general (who are as dumb as dirt anyway) that basically there is no personal property rights that exist any longer in the country formerly known as the United States.

The reason I ask is because there are some very reputable PM gurus and well known investment newsletters or so called gold bug entities that are promoting these vehicles very hard.

If the physical IRA vehicle is not safe from being confiscated right along with the general equities IRA, what’s the point in promoting this type of IRA if your reputation will be completely destroyed in the process with tens of thousands of your followers being bankrupted as a result?

Respectfully, CIGA Tim


Jim’s advice is that all retirement accounts, irrespective of the assets held within them, are at risk of nationalization. This is why he is strongly advising that we exit those accounts whilst there is still an opportunity to do so. In some countries such as in the UK and Australia that opportunity does not exist. Exiting now and paying the relevant penalties is the only way to protect yourself from what is coming. Before Cyprus and now Poland none of us would have believed such things were possible but it is a reality that we simply must face. Jim is a lone voice in advising of this danger and unlike so many others he has no self interest in the matter. Many advisers will eventually jump on the bandwagon but it will be too late by then. I think it is significant that Jim was unequivocal in stating that the FED would not taper whereas so many other commentators were hedging their bets. We should all heed Jim’s words and GOTS now.


Peter Mickelberg
Communications Consultant

Mr. Fix
Sep 19, 2013 - 2:10pm

Has anyone look that Murphy's Law lately?

“Anything that can go wrong, will go wrong”.

I'm seeing an awful lot of things that could go wrong here.

Sep 19, 2013 - 2:12pm


I always have the live webcam running on the side screen.

From the outside, unit 4 doesn't seem more damaged than before.

Sep 19, 2013 - 2:12pm

TF...Richter/Shindo EQ Scale

Unfortunately, you're correct about the Japan EQ scale.

I'm not sure what that translates to on the Richter but it's got to be pretty high. 7.5 maybe?

This is pretty bad news and it kind of sucked the wind out of my sails a little bit when I read it. Good time to mow the lawn.

Mr. Fix....I think it's totally coincidental and a natural occurence. The entire region has well known seismic issues.

I'd be interested to hear any alternative theories why it wasn't based on evidence indicating the contrary.

Ok, just found this...

Sep 19, 2013 - 2:17pm


An earthquake measuring 5.3 on the Richter scale has been recorded near the crippled Fukushima nuclear plant. There are no reports of damage to destroyed facilities and no spike in radiation levels in the area.

TEPCO, the company in charge of the cleanup operations at the site has said it is monitoring the plant and that so-far no irregularities have been discovered, according to the local media.

Japan straddles 4 major tectonic plates, the Pacific plate; North America plate; Eurasia plate; and Philippine Sea plate, meaning that it is highly vulnerable to earthquakes and tsunamis.

The tremors were felt in 17 prefectures around Japan including Tokyo, but the epicenter was 20 km beneath the surface on the Pacific coast but only 50 miles from the Fukushima plant.

Sep 19, 2013 - 2:24pm


Thanks...big difference between ZH's 5.8 on the Shindo Scale and 5.3 on the Richter. Hopefully it's the latter.

Mr. Fix
Sep 19, 2013 - 2:34pm

Maybe the next Fed chair will be the last. (Wishful thinking)

The Fed is in the End Game Posted by: Phoenix Capital... Post date: 09/19/2013 - 12:21 In plain terms, the Fed has proven beyond even a hint of a doubt that it is simply flying by the seat of its pants, with no clear game plan or eventual outcome in mind. The Fed is simply going to...

Mr. Fix
Sep 19, 2013 - 2:38pm

I guess it's okay to talk about gold here……

Gold Surges 4.3% As $1 Trillion QE Per Annum, Debasement Continues Posted by: GoldCore Post date: 09/19/2013 - 09:45 The Federal Reserve decision to refrain from and put off indefinitely a QE taper is very bullish. The Fed is struggling to keep interest rates low for as long as possible in a desperate attempt to...

Sep 19, 2013 - 2:43pm

RE: Possible Nuclear fallout, what to do?

If Radiaton was a risk--

Fill the bathtub with water and refresh your memory with this (or your favorite manual).

Old, but good, would also recommend a stash of iodine or iodine type supplements for the family.

Rec you read before an incident so you are adequately prepared, esp have hard copy/w necessary supplies if you live anywhere near a nuc plant.

Dagney Taggart
Sep 19, 2013 - 2:45pm

No More Fed Chairs

Bernanke is the last. That's my bet. Disclaimer: I don't bet.

PS. It's THE William Dudley, CL. New silver bears please.

Sep 19, 2013 - 2:51pm

Only man for the job

let's get it all over and done with niiice and quick

Sep 19, 2013 - 2:53pm


The LEAD story on the UK's Channel 4 News tonight was about Nigel Farage, he was being accused of being a racist and making racist remarks - coming from views he appears to have held .... when he a was a schoolboy 35+ years ago!

15 mins-worth (that's quite a lot for a lead story) of character-assassination.

Have tptb had enough of him speaking the truth? Has he got some info that he's looking to spill, and they've decided to try and destroy his credibility before he does?

Whatever it is, this was such a clear case of the use of smear-tactics. Absolutely disgusting.

tptb HATE anyone who speaks the truth. It's obvious they're trying anything to shut him up because the accusations are quite ridiculous.

Sep 19, 2013 - 3:06pm


I think everyone I went to school with was racist, homophobe. But that was as a child.

I do however admit that I got sucked into the anti Muslim thing. after extensive government brainwashing after 9/11. But I was just asleep.

Sep 19, 2013 - 3:11pm


I am surprised Nigel has made it this far without a bullet in his head. The money changers must hate that guy with a passion with all of his uppity truthiness.

Edit: Bugzy, I bought into the anti-muslim thing after 9-11 too. What is amazing to me is how many otherwise intelligent people still do.

Sep 19, 2013 - 3:30pm

from Burningplatform:

The implication of the concept described is, in case of a derivative crises virtually all the world's assets go to the banks, considering the enourmous nominal value of total derivatives held. anyone?




The Hidden Government Guarantee that Props Up the Shadow Banking System

According to Dutch economist Enrico Perotti, banks are able to fund their loans much more cheaply than any other industry because they offer “liquidity on demand.” The promise that the depositor can get his money out at any time is made credible by government-backed deposit insurance and access to central bank funding. But what guarantee underwrites the shadow banks? Why would financial institutions feel confident lending cheaply in the shadow market, when it is not protected by deposit insurance or government bailouts?

Perotti says that liquidity-on-demand is guaranteed in the SBS through another, lesser-known form of government guarantee: “safe harbor” status in bankruptcy. Repos and derivatives, the stock in trade of shadow banks, have “superpriority” over all other claims. Perotti writes:

Security pledging grants access to cheap funding thanks to the steady expansion in the EU and US of “safe harbor status”. Also called bankruptcy privileges, this ensures lenders secured on financial collateral immediate access to their pledged securities. . . .

Safe harbor status grants the privilege of being excluded from mandatory stay, and basically all other restrictions. Safe harbor lenders, which at present include repos and derivative margins, can immediately repossess and resell pledged collateral.

This gives repos and derivatives extraordinary super-priority over all other claims, including tax and wage claims, deposits, real secured credit and insurance claims. Critically, it ensures immediacy (liquidity) for their holders. Unfortunately, it does so by undermining orderly liquidation.

When orderly liquidation is undermined, there is a rush to get the collateral, which can actually propel the debtor into bankruptcy.

The amendment to the Bankruptcy Reform Act of 2005 that created this favored status for repos and derivatives was pushed through by the banking lobby with few questions asked. In a December 2011 article titled “Plan B – How to Loot Nations and Their Banks Legally,” documentary film-maker David Malone wrote:

This amendment which was touted as necessary to reduce systemic risk in financial bankruptcies . . . allowed a whole range of far riskier assets to be used . . . . The size of the repo market hugely increased and riskier assets were gladly accepted as collateral because traders saw that if the person they had lent to went down they could get [their] money back before anyone else and no one could stop them.

Sep 19, 2013 - 3:32pm


A reminder of his brilliance from 2010...

and from 2011...

and one of the best of all, from last year...

Sep 19, 2013 - 3:35pm


He's not well known enough to be knocked-off. He gets little UK MSM exposure and I'm sure they aim to keep it that way.

But if his popularity does substantially rise, I agree, he'd better watch out.

Sep 19, 2013 - 3:42pm


"I think everyone I went to school with was racist, homophobe."

Me too. If you didn't have some sort of extreme view there was something wrong with you and you'd be picked on.

That's why the Farage news item tonight was utterly ridiculous and a clear attempt to discredit and silence him.

Sep 19, 2013 - 3:54pm

My six year old

just lost his first tooth, and at my house, the tooth fairy does not bring fiat! I have to go scuba diving now.

Sep 19, 2013 - 4:00pm

TEPCO lied to RT...why am I not surprised?

TV: Officials concerned about 400 ft. tall pipe near Fukushima reactors collapsing during quake — 8 cracks found in support brace — Gov’t orders immediate investigation — Tepco unsure how to access area as radiation levels around it are 10 sieverts per hour (PHOTO & VIDEO)

Sep 19, 2013 - 4:17pm


IMO, and with respect to Ron Paul, I think there is a big downside to Janet Yellen as FedChair.

Not only was she blindsided by the Housing Bubble, she is in favor of negative interest rates.

This indicates a supreme level of detachment from reality, and so I would say, anyone BUT JY.

Sep 19, 2013 - 4:26pm

Subscribe or login to read all comments.


Donate Shop

Get Your Subscriber Benefits

Exclusive discount for silver purchases, and a private iTunes feed for TF Metals Report podcasts!

Key Economic Events Week of 6/17

6/18 8:30 ET Housing Starts and Building Permits
6/19 2:00 ET FOMC Fedlines
6/19 2:30 ET CGP presser
6/20 8:30 ET Philly Fed
6/21 9:45 ET Markit flash June PMIs

Key Economic Events Week of 6/10

6/11 8:30 ET Producer Price Index
6/12 8:30 ET Consumer Price Index
6/13 8:30 ET Import Price Index
6/14 8:30 ET Retail Sales
6/14 9:15 ET Cap Ute and Ind Prod
6/14 10:00 ET Business Inventories

Key Economic Events Week of 6/3

6/4 All day Fed conference in Chicago
6/4 10:00 ET Factory Order
6/5 9:45 ET Markit Services PMI
6/5 10:00 ET ISM Services PMI
6/6 8:30 ET US Trace Deficit
6/7 8:30 ET BLSBS
6/7 10:00 ET Wholesale Inventories