Wednesday, July 31, 2013

Betting on Larry Summers

I'm betting on Larry Summers as the next FED chairman. I do not think Yellen vs. Summers equates to much of a philosophical difference. I know the media is pushing for Yellen hard, bringing out the big gun of sexism if you oppose her. Like gender means anything to the banks. Hard money vs. soft money? You think that means anything right now? Nope. What matters is that the money printing continue. Even taper talk is a joke as tapering still doesn't shut off the spigot. Candidates may have a history of being one way or the other, but they will deal with the bernanke bubble situation. It isn't pretty.

Here are my two reasons for predicting Summers as FED chair.

1. He's a Robert Rubin guy. Until I see otherwise, we're still living in Rubin's world. Rubin's the head of the CFR, and just pulled Tim Geithner back into his orbit. He's still the money man behind the Dems, and his proteges still lord over us. There is definitely a battle for supremacy of the bankster racket between the Whale (JP Morgan Chase) and the Squid (Goldman Sachs). This doesn't change the bankster game, just slightly alters who has the upper hand.

2. Summers was a huge proponent of the FED being the ultimate lender of last resort. This is critical. This might differentiate him vs. Yellen, whom the real decision makers may distrust on this subject. What if her experience at the FED has made her fed up with the TBTF banks, leaving her inclined to say 'no' next time they hit a crisis point? Summers won't hesitate. As I said in the run up to election 2012, forget Wall St donations; watch the Dow + S&P 500. Rank and file donations were for Romney over Obama, but tell me what the stock market did in October/November? It held up, therefore the leadership was fine with Obama. Polls may show Wall Street boys support Yellen, but they do not call the shots. Even the hot shots on Wall Street do not matter in comparison to their bosses' bosses, the masters of the universe.

Update 8-1-13 - NY Times reports Summers is now the frontrunner.
Update 8-2-2013 - Geithner now advising Obama on picking the next FED chair. They made their pick; this is political cover. Summers promoted Geithner throughout the '90s wherever he went despite his young age. Geithner will steer things his way. Both are Bob Rubin men.

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