Screw Bernanke and the Federal Reserve

[Mauiboy86]

How come people dont wake up and put two and two together. Just listening to the Senate Banking committee talk to Bernanke today is reason enough to abolish the federal reserve! WAKE UP SHEEPLE!!!!!!!!!!!!!!

 

[Fyretrohl]

Let me see...

1 - The economy is okay, but slowing, so we will lower interest rates.
2 - The economy is barely growing, but okay, so we will lower interest rates
3 - The economy is looking bad, so we will lower interest rates
4 - The economy is in bad straights, guess we should lower interest rates again.

OH...And another beauty I found somewhere, They are removing a government site that provides economic data. Maybe if they hide it, it won't hurt us?


http://thinkprogress.org/2008/02/13/...ic-indicators/

The economy is so bad, that we can't even afford to tell you how bad it is anymore.

 

[m72mc]

Here in Sweden they up the opposite

http://www.forbes.com/markets/2008/...rates-markets-equity-cx_ll_0213markets13.html

 

[hillertexas]

maybe we should do a billboard campaign with things on it them like "the Federal Reserve is a private company" "What is inflation?", etc.

We could create an enlightening website to direct people to.

 

[nullvalu]

Wait, but the government is sending us all free money checks in the mail! If they have $168 BILLION just laying around, we must be doing great! Right?

 

[Smiley Gladhands]

maybe we should do a billboard campaign with things on it them like "the Federal Reserve is a private company" "What is inflation?", etc.

We could create an enlightening website to direct people to.

+a hundred

Instead of trying to increase Ron's name recognition with Google Ron Paul billboards, we need to start focusing on these issues. When people see Ron Paul they just see another guy running for president...they just see another politician. If people are sitting in front of a billboard that says "You OWE $440,000. Why? The Federal Reserve Bank."....they start to question whether Bernanke is the God that he's made out to be on TV. Another billboard saying "Your taxes pay interest to a private corporation so it can continue to counterfeit money," might switch on a lightbulb or two.

Attack the issues 1 by 1....I'm confident that's the strategy we need.

 

[Bradley in DC]

maybe we should do a billboard campaign with things on it them like "the Federal Reserve is a private company"

Maybe because the Federal Reserve BOARD isn't private?

 

[kathy88]

THIS is an excellent idea.

 

[Cleaner44]

Maybe because the Federal Reserve BOARD isn't private?

Really? Then why is the President not allowed to sit in on the board meetings?

 

[Cleaner44]

I often call into local talk radio and bring up the Fed and encourage listeners to read on the subject. I suggest more of us do this in an effort to make the public aware of the dangers of the central bank.

 

[Fox McCloud]

and some people say we aren't on a march to 0....if he lowers it as much as predicted (50 basis points) the interest on the dollar will only be 2.5%.

This won't work either....the market has already shown that these interest cuts only last a day or two, or, in the last cut's case...the bonus ended the same day.

What are you trying to do, Bernanke? Turn this into the Weimar Republic?

 

[jonahtrainer]

What are you trying to do, Bernanke? Turn this into the Weimar Republic?

Yes, but that is better than the US Great Depression.

I think we have already crossed the threshold of the next Kondratieff Winter and Bernie can't do anything about it.

 

[HOLLYWOOD]

MORON BUSH (in his infinite wisdom as an economist) in the White House says...

Let me see...

1 - The economy is okay, but slowing, so we will lower interest rates.
2 - The economy is barely growing, but okay, so we will lower interest rates
3 - The economy is looking bad, so we will lower interest rates
4 - The economy is in bad straights, guess we should lower interest rates again.

OH...And another beauty I found somewhere, They are removing a government site that provides economic data. Maybe if they hide it, it won't hurt us?


http://thinkprogress.org/2008/02/13/...ic-indicators/

The economy is so bad, that we can't even afford to tell you how bad it is anymore.

And as that MORON BUSH (in his infinite wisdom as an economist) in the White House says, "The basics in the economy are good, it's just 'SPOTTY' in certain areas."

WTF? See childern, this what happens when you SNIFF GLUE most of your life!

 

[liberty_Forever]

Yes, but [hyperinflation] is better than the US Great Depression.

I'm not sure I agree with your statement entirely (ie. the choice is "Wiemar vs Great Depression"). I think the macroeconomics are much more complicated this time around. I do agree that Kondratieff Winter will be the end result. Here is how I see things...

The Great Depression was deflationary depression when the US was on the gold standard and was one of the largest creditors in the world. The value of "money" (cash, gold, etc) went up and the value of "credit" (debt) become worthless.

This time around we are net debtor to the world and most of our inflation has been exported to foreign soverign nations. Credit and equities are rapidly deflating, but there are an inflationary net worldwide food and energy effects. And all those dollars are stacked up in China, Japan, UAE, Saudi Arabia, etc just waiting to come home.

The Federal Reserve cannot prevent credit deflation because it cannot print confidence. Nor they can prevent the slowdown in the velocity of "money". At a certain point the paper will park itself in precious metals or tangible assets, which in a sense is a decrease in monetary velocity (deflation) as gold and silver begin functioning as money. You can also view this trend as the "crack-up" and an increase in the velocity of 'cash (paper)'. On the other end of the scale , 'Debt' (ABCP, CDO, etc) velocity will grind to a halt. The Fed can only control the macroeconomic "see-saw" effects to a very superficial extent. So we will see extremely powerful inflationary AND deflationary forces. The Fed really cannot do much here except slash interest rates and pray to Lucifer or whatever evil they worship.

Why the Fed is powerless and what is net effect?:

1) The shadow banking system (much of the banking system is non-depository institutions such as hedge funds which cannot borrow from the Fed). [Deflation]

2) The problem is not one of liquidity but one of solvency (the entire system is bankrupt). [Deflation]

3) Consumers attitudes towards debt are changing. (you cannot force people to borrow). [Deflation]

4) Credit derivatives >$600 trillion (credit default swaps, based on confidence). [Deflation]

5) Counter-party risk (Will your 401k go under? Will the 'other bank' pay up?) [Deflation]

6) America's monsterous debt requires foreign cooperation to service (Will China play nice?) [Hyperinflation]

7) Will there be national bailouts of the major banks? ("Citibank: Too big to fail") [Hyperinflation]

8) Will there be nationalization of MBIA, Freddie Mac, Fannie Mae, etc? ("Implied guarentee") [Hyperinflation]

9) Will worldwide grain shortages continue to persist ("thanks chemtrails") [Hyperinflation]

10) Will foreign nations stop buying our debt? (rising long term yields) [Hyperinflation]

11) Will the Fed monetize the long end of the yield curve (print money to buy 10y notes) [Hyperinflation]


So you see there are many factors at work here... some are dependent on the Fed, some are dependent on Congress, some are dependent on foreign nation-states, and some are a bit random.

The effects are going to be very difficult to predict, but suffice to say the global economy is in very deep shit.