[lbo-talk] The Fed has gone Rogue

[Jordan]

I thought this might pique some interest.  Don't worry, I'm not a ronpaulite. I know this is from a gold bug site, but they seem to be well-connected and frequently interview financial heavy-hitters. I haven't googled Eric King, so who knows, maybe this is laughable to people, but once you get past his annoying hard-sell  voice on the audio, he shuts up for the most part and lets his guests speak - and I know that Doug has debated at least one of them before, so that's credibility, right?  
I'm throwing this out because I think it's interesting to get a quick burst of what these hedge fund dudes are thinking - from a social and dismal science POV...There also seems to be a strange current of populism running through the narrative some of these people spin. Ok, maybe not populism, but at least sympathy with main street...Many are saying wall street is ripping people off - and they have concrete examples that don't often get thrown around in the media. Are they eating their own now or what?  
Very much connected to that was an eye-opening interview with Harry Markopolis, the guy who helped bust Madoff.  He says the Bank of New York Mellon is going down because they worked out a foreign exchange scheme to steal (through pension fund investments) billions of dollars from millions of americans over many decades - and that it is a common practice...If so, this seems ripe for the ows picking...Interestingly, another guest (Jim Rickards) mentioned something Markopolis didn't.  He doesn't think the Bank of New York Mellon will go down because they are actually the largest clearing venue for the government securities market.  Taking down the bank would take down the government securities market, so the government won't let them go down.  He says it will be finessed, and oh by the way, he thinks "they should be in handcuffs." As I said, this seems like a topic worthy of discussion at ows...  

Ok, slightly longer preface to the Rogue Fed link than I wanted.  Here it is:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/10/19_Michael_Pento_-_Own_Gold,_The_Fed_%26_ECB_Have_Gone_Rogue.html

If nothing else, people here may enjoy the photoshopped Bernanke photo...
So, question: There are many facts in here, but is this mostly bullshit? For example, tying the unemployment rate to inflation makes sense in a way, but doesn't he have a causation/correlation problem on his hands with statements like this? (Not that he would care if he did.)  I like the central-banks-counterfeiting-their-own-currency line.  Do you agree?  And what about this whole dual mandate thing..?  Anyway, I could ask questions about every statement this guy makes, but I will leave it there.

Aloha, 

J

P.S. I am not a social or dismal scientist, so go easy on me. ;)