A week from now, the Federal Reserve System will celebrate the 100th anniversary of its founding.
We are reaping the noxious effects of a century of loose monetary policy, as our economy remains mired in mediocrity and utterly dependent on a stream of easy money from the central bank. A century ago, politicians failed to understand that the financial panics of the 19th century were caused by collusion between government and the banking sector. The government’s growing monopoly on money creation, high barriers to entry into banking to protect politically favored incumbents, and favored treatment for government debt combined to create a rickety, panic-prone banking system. Had legislators known then what we know now, we could hope that they never would have established the Federal Reserve System.
Today, however, we do know better. We know that the Federal Reserve continues to strengthen the collusion between banks and politicians. We know that the Fed’s inflationary monetary policy continues to reap profits for Wall Street while impoverishing Main Street. And we know that the current monetary regime is teetering on a precipice.
One hundred years is long enough. End the Fed. [Read more...]
A week from now, the Federal Reserve System will celebrate the 100th anniversary of its founding.
“The first panacea for a mismanaged nation is inflation of the currency: the second is war. Both bring temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists.” – Ernest Hemingway
Continuing QE is aimed mainly at propping up the Mega-Banks, but also is destroying the US$ as the World’s Reserve Currency.
A “No Tapering This Month” Decision some week soon may well be the Catalyst which launches Gold and Silver up, finally, into their Great Rally. Be prepared.
In this interview with Finance & Liberty’s Elijah Johnson, Mike Rivero discusses the potential for gold confiscation in the wake of a US dollar collapse, and drops the bombshell that the NSA has begun providing Central Banks Around the world with illegal confidential inside information, allowing the Fed & other friendly western central banks (& the TBTF banks that own them) to trade with illegal confidential information.
Rivero’s full interview is below: [Read more...]
With no meaningful Government and industry association economic reports due out, the Federal Reserve good cop/bad cop comedy routine will be in full force today. Three regional Federal Reserve Bank presidents will be out today making their empty rhetorical speeches either in favor or against reducing QE. But all three represent nothing more than a modified Abbot and Costello slap-stick comedy routine. [Read more...]
When QE1 ended there was a substantial stock market correction, and when QE2 ended there was a substantial stock market correction. And if you will remember, the financial markets threw a massive hissy fit a few months ago when Federal Reserve Chairman Ben Bernanke suggested that the Fed may soon start tapering QE3. Clearly Wall Street does not like it when their supply of monetary heroin is interrupted. The Federal Reserve has tricked the American people into supporting quantitative easing by insisting that it is about “stimulating the economy”, but that has turned out to be a massive hoax.
So what is going to happen when the Fed starts pulling back the monetary crack and the bubble bursts? [Read more...]
The USFed recently relented, they blinked, and when they briefly told the truth, they admitted the QE volume would continue forever and a day. Given the political pressures, and some reflection in corner office lavatories, they toy with the concept of tapering again. They realize the hyper monetary inflation has turned into a deadly toxic dependence. It is useful for the mere mortals among the 99% crowd to absorb the realities behind QE and its true nature, better described as QE to Infinity. The sidebar is Zero Percent Forever. The USFed is stuck in the destructive monetary policy.
Rudolph von Havenstein was head of the German Central Bank during the infamous Weimar hyperinflation/currency collapse period (1921 – 1923). As most of you know, every German who had their wealth denominated in German marks on the night of November 13, 1923 woke up the next day to discover that their paper wealth was worthless. Gold, for all intents and purposes, went to infinity as measured in the German mark (gold began the Weimar Republic period at 170 marks and peaked at 87 trillion marks).
I mention this as background because, despite the Fed’s lip service to the contrary about reducing QE (the “taper”), the Fed has no choice to not only continue printing money, but will soon be forced to increase its rate of printing. Make no mistake, this is going to get crazy and they will probably eventually start buying assets other than Treasuries and mortgages, such as municipal bonds, pension liabilities and equities. [Read more...]
One of the frustrating elements for traders since the 2008 credit crisis slashed value is the way markets have traded and reacted to fundamental news. There were no trends, just a constant risk-on/risk-off world where opportunity gave way to fear and fear to opportunity, not so much based on the analysis of market fundamentals but on how the Federal Reserve and other central banks would manage the so-called “new normal.” [Read more...]
Already beleaguered, gold suffered another sharp drop this week. When the minutes from the Federal Reserve’s latest policy meeting implied it might slow its QE3 bond-buying campaign “in coming months”, futures speculators responded with heavy selling. But their extreme gold bearishness is highly irrational, they are missing the forest for the trees. Taper or not, quantitative easing remains super-bullish for gold. [Read more...]
MONEY FOR NOTHING is a feature-length documentary about the Federal Reserve – made by a Team of AFI, Sundance, and Academy Award winners – that seeks to unveil America’s central bank and its impact on our economy and our society.
Current and former top economists, financial historians, and investors and traders provide unprecedented access and take viewers behind the curtain to debate the future of the world’s most powerful financial institution.
Digging beneath the surface of the 2008 crisis, Money For Nothing is the first film to ask why so many facets of our financial system seemed to self-destruct at the same time. For many economists and senior Fed officials, the answer is clear: the same Fed that put out 2008’s raging financial fire actually helped light the match years before.
As the global financial system continues to falter, the Federal Reserve finds itself at a crossroads. The choices it makes will greatly influence the kind of world our children and grandchildren inherit. How can the Federal Reserve steer our nation toward a more sustainable path? How can the American people – who the Fed was created to serve – influence an institution whose inner workings they may not understand?
The key tenet underlying Money For Nothing is the belief that a more fully and accurately informed public will promote greater accountability and more effective policies from our central bank – no matter the conclusions any individual draws from the film. [Read more...]
Two days before the Janet Yellen confirmation hearings, Andrew Huszar, an ex-Fed official, publicly apologized to the American people for his role in QE. Mr. Huszar called QE “the greatest backdoor Wall Street bailout of all time.”
As recently as five years ago, it would have been unheard of for a Wall Street insider and former Fed official to speak so bluntly about how the Fed acts as a reverse Robin Hood. But a quick glance at the latest unemployment numbers shows that QE is not benefiting the average American. It is increasingly obvious that the Fed’s post-2008 policies of bailouts, money printing, and bond buying benefited the big banks and the politically-connected investment firms. QE is such a blatant example of crony capitalism that it makes Solyndra look like a shining example of a pure free market! [Read more...]
Zerohedge recently drew attention to the growing level of foreign bank cash deposits, tucked away at the bottom of the Fed’s H.8 statement.
Foreign banks’ cash balances have increased by $518.7bn since September 2012, accounting for almost all of the increase in these banks’ total assets in the H.8 table. The implication is that these cash balances are held as reserves on the Fed’s balance sheet, the counterpart of quantitative easing.
This naturally raises the reasonable question posed by Zerohedge as to why the Fed appears to be benefiting foreign banks with QE.
The answer is either these deposits have been transferred to them from US banks in the normal course of business or the Fed is prepared to provide liquidity to foreign banks: after all the US dollar is the reserve currency. And this liquidity is most needed by the weakest banks in the international banking system, many of which are in the euro-zone. [Read more...]
Miss Old Yellen’s Senate Confirmation testimony Thursday?
Yellen discusses her plans for “unconventional monetary policy tools“, her plans (or lack thereof) of implementing a taper to QE, and how even a temporary US default would be “catastrophic” in this 2 minute recap of her Senate testimony.
“They need this healthcare money paid directly to them. It won’t go to a physician, it won’t go to a hospital, it will go to these Federal Reserve bankers so that they can keep their system functioning…”
Because it’s always a house of cards, it’s always on the point of collapse and that’s why this system, which is the Babylonian debt money system which is 5,000 years old, which Jesus Christ’ ministry, He preached against this, and it’s still being inflicted on us because we simply did not pay enough attention to Jesus’ words. We didn’t honor Him enough for going into the temple and turning over the money changer’s tables, and that’s why unfortunately the Christian Ministry today is itself a part of the Federal Reserve System… The Cult of Baal.” – Eustace Mullins [Read more...]