The Fed Has Failed (and Will Continue to Fail), Part 1

Source: Banzai7

Source: Banzai7

The Fed’s policies have been an unqualified success for financiers and an abject failure for the bottom 99.5% who have to work for a living.
After five long years of politicos and the financial media glorifying the Federal Reserve’s policies as god-like in their power and efficacy, let’s take a quick look at the results of these vaunted policies: ZIRP (zero interest rates), (QE) quantitative easing, both of which are ways of shoving nearly limitless, nearly-free money ( a.k.a. liquidity) into the banking sector, where all this free money is supposed to filter into the global economy, working miracles of prosperity.
Let’s start with a chart of the Fed’s balance sheet, which reflects just how much money the Fed has created and pumped into the financial system. $4 trillion is larger than the entire GDP of Germany, and roughly 25% of U.S. GDP. 

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Ron Paul: At the Fed, Deja-Vu All Over Again!

deja vuLast week, Federal Reserve Chairman Janet Yellen testified before Congress for the first time since replacing Ben Bernanke at the beginning of the month. Her testimony confirmed what many of us suspected, that interventionist Keynesian policies at the Federal Reserve are well-entrenched and far from over. Mrs. Yellen practically bent over backwards to reassure Wall Street that the Fed would continue its accommodative monetary policy well into any new economic recovery. The same monetary policy that got us into this mess will remain in place until the next crisis hits.
Isn’t it amazing that the same people who failed to see the real estate bubble developing, the same people who were so confident about economic recovery that they were talking about “green shoots” five years ago, the same people who have presided over the continued destruction of the dollar’s purchasing power never suffer any repercussions for the failures they have caused? [Read more...]

Stewart Thomson: Gold And The Phillips Curve

Reuters/Tamara Abdul Hadi/Files

Reuters/Tamara Abdul Hadi/Files

Ben Bernanke believed that the financial crisis of 2008 produced the need for strong but temporary action to be taken by the Fed. His focus was on providing liquidity to the financial system, as a substantial but temporary strategy.
In contrast, Janet Yellen believes in the Phillips Curve. In the 1950s, William Phillips suggested that there is an inverse relationship between inflation and unemployment, and his ideas are used extensively by Keynesian economists.
The bottom line is that Dr. Yellen is a strong Keynesian who is now in charge of America’s central bank. She believes that real unemployment will fall significantly, if she raises the inflation rate. (Yes, you read that correctly)
That has the attention of powerful institutional money managers, and it should have the attention of everyone in the gold community. [Read more...]

Alasdair Macleod: Tapering Blues for Precious Metals

Bernanke taperThe second tapering reduction, a further $10bn per month, was announced this week. It was we are told by the news channels fully expected. This is probably the initial reason why US Treasury prices rose on the news, because bears would have bought back their positions. However, weakness in emerging market currencies indicates that there is a safe-haven element developing in US Treasury bond prices. [Read more...]

BILLIONAIRE HUGO SALINAS PRICE: Gold is the Fed’s Enemy!

In this outstanding interview, Billionaire silver advocate Hugh Salinas Price was asked if the gold & silver markets are manipulated:

Of course the gold and silver markets are manipulated. You have to be either blind or a Harvard Graduate with doctorate in Economics to ignore the fact.
The purpose of the manipulation is the same as the purpose of the French Revolutionaries in attacking gold when they were printing their “Assignats” paper money like crazy; to try to suppress the indicator which showed the destruction they were carrying out with unlimited printing of fiat money. Gold tells the Truth and so it is an enemy of those who wish to deceive their populations. Paul Adolph Volcker, famous former head of the Federal Reserve of the US, once stated: “Gold is my enemy”.
Gold will triumph over paper. It always has, ever since the Chinese invented paper money many centuries ago. But in the meantime, paper money is twisting the economic facts to such a degree, that enormous distortions are taking place in the markets. Enormous investment mistakes are being made. All this will become evident in due course; a gigantic collapse is going to take place and many who think they are very wealthy will find they have next to nothing.

Salinas Price’s full MUST READ interview on why Gold is The Fed’s enemy is below: [Read more...]

Central Bankers Know All About Gold

BernankeCentral Bankers like Allan Greenspan and Ben Bernanke know all about gold, they just don’t express it while they are central bank presidents in office.
When I asked former Dutch Central banker Nout Wellink what he would do if QE proved to be irreversible, in fear of a deflationary collapse, and QE III, IV, etc. would become apparent, he said that he would put his wealth in to physical gold because that would be the most prudent thing to do.
I thought that was a remarkable revelation from the man who in early 2011 forced a Dutch pension fund via a court order to sell most of its gold because it was “not in the interest of the people that were depending on the fund”. [Read more...]

Gold & Silver Smashed Through Support on Classic Post-FOMC Raid

fill and killGold and silver have been smashed below support at $1250 and $19 this morning on a classic post-FOMC day raid.
Gold has been smashed $30 to $1237, and silver is down nearly $1 from Wednesday’s trading with a low of $18.93 before bouncing back above $19. [Read more...]

Ben Bernanke’s Bankster Legacy

BernankeWith Ben Shalom Bernanke set to depart on the last day of January 2014, the critique and speculation of his tenure as Chairman of the Federal Reserve begins. The mainstream financial press is giving mostly favorable accounts. Heretofore, such praiseworthy acclamations strike a shape contrast with the actual record of the state of the economy. However, the admirers of the Fed and his specific enactments live in a time warp that only masters of the universe encounter. For the remaining population, an intense struggle for survival is the actual experience, remembered from the Bernanke years.
During the Bernanke era, the debt bubble entered the point of no return to solvency. His place in the history of shame sets the stage for further economic turmoil. The Fed is boxed into a pattern that is likely to escalate out of control. [Read more...]

The Summer of Recovery

Harken, if you will, to the glorious days of times gone past when the stimulus flowed like honey and the unicorns of government-created prosperity roamed the land dropping their spoor of jobs and skittles hither and yon.
Those were the halcyon days, where every newscaster breathlessly intoned that the Green Shoots of economic recovery were popping up all across the country like some kind of genetically engineered super-weed of wealth.
Little Timmy Geithner, flitting from news show to news show like a diminutive pixie of prosperity, was endlessly repeating the magical words in that child-like voice of his: recovery… recovery… recovery...
Yes, it was 2010. The fabled and legendarySummer of Recovery.  I recall its radiant splendor as if it were just four years ago.
The official unemployment rate, which everyone claims as the cornerstone piece of evidence for an improving economy, is only falling because the BLS fails to count discouraged workers who drop out of the labor force every month, pretending instead to the fiction that these people have found work.  Without this pathetic sleight-of-hand, unemployment is actually solidly in the double digits and has not appreciably improved for years now, despite trillions in deficit spending, ZIRP, the various QE’s, MBS purchases, POMO cash, etc.  Recovery my ass.
We should never forget:  The media was wrong, the economists were wrong, the administration was wrong, the Keynesians and their central banks were wrong.  Gold and silver were right.  And they will be again.  Stack while you can.
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Janet Yellen, the Nation’s New Chief Slumlord

yellenJanet Yellen’s role as the nation’s slumlord is masked by her apparent distance from the Fed’s money spigot and the resulting institutional ownership of the nation’s rental housing stock.
Please welcome the nation’s new chief slumlord, Janet Yellen. The previous top slumlord, Ben Bernanke, has retired from the position of Chief Slumlord (i.e. chair of the Federal Reserve) to the accolades of those who benefited from his extraordinary transfer of wealth from the many to the few.
Why is the chairperson of the Fed the nation’s top slumlord? Allow me to explain. [Read more...]

The Cremation of 2013

There were strange things done by fluorescent sun
By the Federal Reserve of old
From Treasury pops to secret swaps
That would make your blood run cold
The Wall Street nights have seen strange sights
But the strangest ever, I’m told
Was that year, oh so mean, known as twenty thirteen
When they crushed the price of gold. [Read more...]

Bernanke’s Golden Goat Rodeo

gold-dec-31-2013Uh, excuse me, but what the heck is this?
Tuesday Morning the cartel was thinking, it’s December 31st.  It’s time to paint the tape.  The cartel would like nothing better than to shoot for a greater than 30% down year in gold.   But a funny thing happened along that road.  The cartel got stuffed. [Read more...]

G. Edward Griffin: “If America Doesn’t ABOLISH The FED, The FED Will ABOLISH AMERICA!”

fedOn December 23rd 1913, Woodrow Wilson signed into effect the Federal Reserve Act. On the 100th anniversary of the Federal Reserve, author of “The Creature from Jekyll Island: a Second Look at the Federal Reserve,” G. Edward Griffin exposes the Fed’s hidden objective over the past 100 years and why “if America does not abolish the Federal Reserve, the Federal Reserve will abolish America. [Read more...]

On the 100th Anniversary of the Fed, The Great Fed Debate With Jim Grant!

Jim GrantOn the 100th anniversary of the creation of the Federal Reserve, we present a MUST WATCH historical discussion and debate on the Fed between the Interest Rate Observer’s Jim Grant, and NYU Professor Richard Sylla.  
Has the Fed, as Ben Bernanke said, “come full circle back to the original goal of preventing financial panics?   Or after 100 years, has the Fed nearly entirely destroyed the value of the dollar, to the enrichment of the banksters?
If the Fed was able to effectively control prices the Soviet Union would still be in business… The Fed has presided over the decay of finance, and the degradation of the dollar.  Retrogression in finance can be laid at the feet of the Fed & the regime behind it.  The Fed is the creation of a system of paper money, and socialized & subsidized credit.-Grant
Ironically, before the “debate” concludes, both Grant & Sylla end up harshly criticizing the Fed- particularly over manipulation of asset prices and the stock market in particular.
James Grant (at his finest) & Richard Sylla – The Great Fed Debate is below:

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The Doc Goes Out On a Limb- Gold & Silver to Bottom in Next 10 Days!

Play

gold bottomOn the latest SD Weekly Metals & Markets Wrap The Doc & Eric Dubin discuss:

  • The Taper and MOPE manipulation undertaken to introduce it
  • Gold breaks below $1200, silver holds at $19- why The Doc believes the metals will bottom by 12/31
  • Bloomberg’s admission: London gold vaults drainedThe SD Weekly Metals & Markets Wrap with The Doc & Eric Dubin is below: [Read more...]