Volcker Feigning FED Criticism

When J P Morgan and John D. Rockefeller pushed through the Federal Reserve Act of 1913 they both came out in public statements against it while funding it on the sly. Deception 101. In 1968 David Rockefeller funded the Black Panthers in an effort to terrorize America into "bartering a little liberty for a little order". According to Howard Zinn the Church hearings into crimes of the CIA was no more than a cover up disguised as an investigation, an act we will all see again when the housing hearings begins playing in a comedy near you soon. Deceit is commonplace! And right now it's Paul Volcker wearing the disguise of FED critic and playing to befuddled houses everywhere. Befuddled, because the phoney critics disguise is misty and ubiquitous among the Street elite and by its very nature usually impenetrable, but paradoxically the phoney critic can be recognized by the that very disguise.

With brilliant simplicity in Phoney Street Critics Juan Carlos Arroyo Calderon shows how the act plays in just three paragraphs when applied to the Wall Street Bailouts.

The first paragraph is one meant to gain your trust and empathy. Classic sales 101. The author rips into the Street to gain street credibility that he is one of you, referring to himself and his readership as “the rest of us.” Then he tries to schmooze your respect by trying a neat mental trick that you can relate to:

The second paragraph launches into the author’s true agenda: even though you may laugh at Wall Street for screwing over investors worldwide, you should actually feel bad for them. “For all its fault and egos,” Wall Street should be loved.

You can also tell a phoney by the solutions he advocates. In this particular passage, our phoney believes that despite the enormous losses from bad underwriting risk, Wall Street needs to keep trading and lending to “keep America moving again.” The other solution our phoney advocates is bailout. The last sentence is key: more financial institutions may need to be bailed out or fail before this is over.

Next Mish gets it right on when he outs Paul Volcker as a fake critic of the FED by an analogous argument applied to that cabal.

It is that third paragraph You can also tell a phoney by the solutions he advocates which is most telling and it tells you that Paul Volcker is not "one of you", but now at least we all recognize the disguise.

Volcker said the Fed should have the lead role in financial regulation, but to take that on, it needs a reorganization with a senior administrator and a stronger staff if it's to fulfill that role.

Read what Mish has to say about that.