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The collapse of the Soviet Union should have been a lesson. The world should have learned that central planning cannot work, even in something simple like food or iron production. The USSR was plagued with shortages of everything.
America today does not have central planning of simple things like food. Farmers make the allocation decisions for corn, and ranchers determine the size of their herd for the most part.
We have central planning of the most complex thing of all, credit. Credit affects everything else including corn and beef.
It’s not only unstable, but it is moving inexorably towards collapse.   This disaster is way beyond the pay grades of the economists who would be our economic dictators, like Ben Bernanke and Janet Yellen.
The Fed is naught but a whole pile of perceptions.
One way or the other, we are going to rediscover the use of gold as money. When that happens, the perceptions that prop up the Fed will be dispelled.   Strip those away, and there is no case for the Fed to exist at all.

fedPeople who were sitting on the board of the NY Fed, were directing some of these bailout funds directly to their own banks in a blatant, absolutely undeniable conflict of interest that again represent the very heart of this system: it is a system run and operated by bankers, for bankers, and in which bankers tend to do very well, while the rest of the country MELTS DOWN.

fedNo new business can borrow Fed money for zero interest. The only entities that can borrow the Fed’s free money are banks and other financial parasites.
The truth is the Fed incentivizes and rewards the most parasitic, least productive sector of the economy and forcibly transfers the interest that was once earned by the productive middle class to the parasites.   Though the multitudes of apologists, lackeys, toadies, minions and factotums of the Fed will frantically deny it, the inescapable truth is that the nation and the bottom 99.5% would be instantly and forever better off were the Fed closed down and its assets liquidated.
The only way to eliminate the financial parasites is to stop subsidizing their skimming and scamming, and the only way to stop subsidizing the financial parasites is to shut down the Fed.

Bernanke-Dimon-Fed-TunnelAhead of today’s FOMC statement (and in light of Eric Sprott’s 2nd installment of Do Western Central Bankers Have Any Gold Left?), we thought it a good time to recall a conversation between Alan Greenspan and others made at a December 1992 FOMC meeting in which key secrets were revealed regarding manipulation of the gold market by Western Central bankers.

As The Doc discussed with Eric Sprott in our recent interview, the US exported $4 billion in gold in December.   Eric pointed out that $4 billion is 2.5 million ounces of gold exported in a single month, when the US produces 8.8 million ounces annually.  Eric asked rhetorically where 2.5 million ounces of gold were coming from.
Courtesy Former Chairman Alan Greenspan and the minutes from a Dec 1992 FOMC meeting, we just may have the answer for Mr. Sprott…

Jim Sinclair sent an email update to subscribers this afternoon regarding media reports that Fed Chairman Ben Bernanke will step down and retire when his current term expires in January of 2014.

Sinclair states that like former Chairman Alan Greenspan who retired immediately preceding the collapse of the housing bubble leaving Bernanke holding the bag, if Bernanke steps down a year from January, it will indicate a monetary mushroom cloud of EPIC PROPORTIONS looms on the immediate horizon and Bernanke has no tools to prevent it.