Dallas Fed Admits "For The Next Eight Months, The Nation’s Central Bank Will Be Monetizing The Federal Debt", Opens Door To Bernanke Impeachment

http://www.zerohedge.com/article/dallas-fed-admits-next-eight-months-nation%E2%80%99s-central-bank-will-be-monetizing-federal-debt-op

It's time for a change America.
The interests of the "PEOPLE" are not being served, they are being denied by those who should have NO SAY in the choices "WE" decide.


Time to begin the Chairman impeachment proceedings. It is one thing for blogs like Zero Hedge to argue (rightly) for the past 1.5 years that the Fed's actions in the Treasury space are nothing but direct debt monetizations. After all, one can always argue semantics, as some peers have enjoyed doing in the past. Yet when an actual Federal Reserve Fed President, in this case Dallas Fed's Dick Fisher states it without any trace of hiding the underlying intent, then things get a little serious. To wit: "For the next eight months, the nation’s central bank will be monetizing the federal debt." It gets worse: even though Fisher realizes that what he is doing is unconstitutional, he also admits that the Fed's actions are now is effectively a policy tool: "Here is the message: The Fed is going out of its way to be a good citizen. It is time for the Congress to do the same." In other words, the myth of the Fed's political independence is now destroyed. All pretense has now gone out of the window as the Fed realizes this is the last "all in" bet. If this fails, it is over. Yet maybe someone in power can precipitate this much needed reset. After all it was Ben Bernanke who testified under oath that the "Federal Reserve will not monetize the debt." It is time he is impeached and prosecuted for this lie.

Dallas Fed's Fisher Rages Against TBTF, Says Only Way To Remove Systemic Risk Is Shrinking The Megabanks

http://www.zerohedge.com/article/dallas-feds-fisher-rages-against-tbtf-says-only-way-remove-systemic-risk-shrinking-megabanks



In a speech before the SW Graduate School of Banking, Dallas Fed's Richard Fisher comes out swinging, blasting his boss Ben Bernanke and his policy of globalized moral hazard: "Let me make my sentiments clear: It is my view that, by propping up deeply troubled big banks, authorities have eroded market discipline in the financial system. It is not difficult to see where this dynamic leads—to more pronounced financial cycles and repeated crises." And just in case listeners missed the point, he followed up: "Just this morning, the Washington Post summarized the impasse that inevitably blocks treatment of the TBTF pathology. In an article on preparation for this weekend’s Group of 20 talks on bank reform, it was noted that “some” participants “remain hesitant to lean too hard on banks they consider vital to their national economies.” This hesitancy only perpetuates the problem: The longer authorities delay the process, the more engrained behemoth financial institutions become; the more engrained they become, the less extricable they are. And so the debilitating disease of TBTF spreads. What appears “vital” becomes “viral” and grows ever more threatening to financial stability and economic stability."

Fischer implicitly supports Ted Kaufman's proposal, which failed in the corrupt and Chris Dodd subservient Senate, that had proposed a very sensible size limitation on banks: