Posts tagged Ben Bernanke
By Tyler Durden
In just under 30 minutes, Peter Schiff and Doug Casey muse on many facets of the crumbling edifice of the status quo that is our current world.
From Gold’s relatively imminent rise to $5,000 and beyond, to investor ignorance of reality, Casey & Schiff swing from discussions of the US as political entity going forward to ‘escape from America’ plans for personal and wealth assets, and the realization that the biggest casualty (of US indebtedness), aside from individual liberty, is the value of the dollar – as taxing the middle class is unpopular with both parties – leaving only one route for the government – the inflation tax. Owning gold, silver, and foreign assets is preferred and while the rest of the world is also printing, the US is likely to beat them all.
People “are clueless with respect to the true state of the global economy,” with regard to inflation, fiat currencies, and specifically what will happen to the dollar. The conversation is wide-ranging and absolutely must-see as they remind market-watchers that “the whole thing is artificial,” as you can’t just keep printing money and monetizing debt without the dollar imploding with monetary policy descending (along with its trillion dollar coin) into ‘Three Stooges’ comedy.
The conversation weaves to some endgame discussions which bring Peter to discuss his father, who he sees as a political prisoner, and his views on the future…
“the biggest change that is coming to the global economy is a realignment of global living standards.”
There is something here for everyone…
By Joseph Beck
The message of liberty has proven to be stronger than “9-9-9,” “Yes We Can,” or any other empty campaign rhetoric that has been incessantly repeated in today’s election cycle. Unlike the others that merely pander to our base instincts of “Hope and Change” or our desire to have a Dr. Evil-style Moon base, there is substance to the liberty message.
Congressman Ron Paul (R-Texas) has been delivering the same message of peace, sound money, and limited government for over 40 years. His entire political career has been devoted to the preservation of liberty and truth.
As George Orwell rightly said, “During times of universal deceit, telling the truth is a revolutionary act.” Unfortunately, we are in living under a state apparatus that is built on lies. Bailouts, wars, and other state-sanctioned interventions are always necessary to keep us safe from the evil economy or the evil bogeymen who reside in evil caves.
A rather significant characteristic of the message is the way it has spread: through the internet, alternative media, and grassroots movements like the Dec. 17, 2007, Tea Party money bomb that raised over $6 million in one day. That day marked the beginning of the modern day Tea Party, before it was co-opted by Fox News demagogues like Sean Hannity and other so-called conservatives in the mainstream media. The alternative media has propelled this revolution to the front lines of political discourse in this country. Thousands of students come to see Ron Paul speak on a regular basis. Paul supporters, both young and old, male and female, become students of Austrian economics and the Constitution.
An entire generation of Americans have become politically aware thanks to Paul’s efforts.
So, why has the mainstream media missed out on this intellectual, ideologically positive revolution?
Published on Apr 23, 2012 by channel4truth2012
Comparing side by side the words and political stances of Republican and Democratic presidential candidates Mitt Romney and President Barack Obama. Includes topics like universal health care, gun rights, energy, NDAA, the Patriot Act, Iran, sanctions, economic stimulus. bank and auto bailouts, civil rights, TARP, the Federal Reserve, Ben Bernanke, campaign donations, and more. Thanks for watching & please share! Compiled with videos from news, interviews, rally footage, and more, IN COMPLIANCE WITH THE FAIR USE ACT.
Hmmm, so do we even have a “choice”?
The time is NOW to take back our personal liberties and freedoms!
Ron Paul 2012: Restore America Now
Please visit Ron Paul’s official campaign site by following the link below and donate today!
By Steve Forbes
This article originally appeared int he Feb. 27, 2012 issue of Forbes magazine.
You thought socialism was dead, other than in miserable countries such as North Korea and Cuba? Think again. It’s alive and well at the Federal Reserve, and we and the world are paying a price for it.
Our central bank tries to manipulate our economy in ways befitting a Soviet commissar. Take interest rates. Fixing the price of money is a form of price control, pure and simple. Until Ben Bernanke our central bank was content to fix short-term interest rates, which he announced would be kept at virtually zero through 2014. But in the aftermath of the financial crisis Bernanke is, in effect, dictating the price of all money, regardless of duration.
By owning so many long-term government bonds, Bernanke has created an artificial shortage of these financial instruments. Like a good central planner, Bernanke is using his policies to subsidize the still rapidly growing, gargantuan debt of the U.S. government. He also holds a huge stash of mortgages so that mortgage rates can be kept low in order to revive the battered housing industry. Big companies also find credit abnormally easy to get.
All of this means the government is picking winners and losers. And in this case the losers are savers. Bernanke & Co. want to effectively force Americans to put their cash in riskier assets, such as stocks.
Another category that’s hurting is small business. Bernanke pays a nominal interest rate on reserves that banks leave at the Fed—a totally risk-free return. On paper an institution would do well lending to a local restaurant or dry cleaner, where rates are significantly higher. But if it does, it had best be prepared to undergo a regulatory third degree.
Ben and his apologists say that one of the Fed’s mandates is to bring about full employment; therefore, it must engage in these statist actions. History, however, shows us that the best thing a central bank can do to create prosperity is to keep the currency stable in value. Whenever the dollar veers in value, as it’s done chronically since the link to gold was severed 40 years ago, market distortions result and capital is misallocated.
The Fed’s socialist tendencies, as one would expect, ride roughshod over property rights. If you sold a bottle of wine for five loaves of bread and Washington came along and confiscated two of those loaves, that would be “takings.” The Constitution guarantees that the government would have to pay you for that seized property. Yet the Federal Reserve routinely confiscates people’s property when it undermines the value of the dollar.
One inconvenient fact Bernanke and his acolytes ignore is that before the creation of the Fed the U.S. economy grew at an average rate of 4%. Since then the average is just about 3%. But in this hyperactive Bernanke era we’ll be lucky to get a long-term average of 2%.
What would happen if the Federal Reserve was shut down permanently? That is a question that CNBC asked recently, but unfortunately most Americans don’t really think about the Fed much. Most Americans are content with believing that the Federal Reserve is just another stuffy government agency that sets our interest rates and that is watching out for the best interests of the American people. But that is not the case at all. The truth is that the Federal Reserve is a private banking cartel that has been designed to systematically destroy the value of our currency, drain the wealth of the American public and enslave the federal government to perpetually expanding debt. During this election year, the economy is the number one issue that voters are concerned about. But instead of endlessly blaming both political parties, the truth is that most of the blame should be placed at the feet of the Federal Reserve. The Federal Reserve has more power over the performance of the U.S. economy than anyone else does. The Federal Reserve controls the money supply, the Federal Reserve sets the interest rates and the Federal Reserve hands out bailouts to the big banks that absolutely dwarf anything that Congress ever did. If the American people are ever going to learn what is really going on with our economy, then it is absolutely imperative that they get educated about the Federal Reserve.
The following are 10 things that every American should know about the Federal Reserve….
#1 The Federal Reserve System Is A Privately Owned Banking Cartel
The Federal Reserve is not a government agency.
The truth is that it is a privately owned central bank. It is owned by the banks that are members of the Federal Reserve system. We do not know how much of the system each bank owns, because that has never been disclosed to the American people.
The Federal Reserve openly admits that it is privately owned. When it was defending itself against a Bloomberg request for information under the Freedom of Information Act, the Federal Reserve stated unequivocally in court that it was “not an agency” of the federal government and therefore not subject to the Freedom of Information Act.
In fact, if you want to find out that the Federal Reserve system is owned by the member banks, all you have to do is go to the Federal Reserve website….
The twelve regional Federal Reserve Banks, which were established by Congress as the operating arms of the nation’s central banking system, are organized much like private corporations–possibly leading to some confusion about “ownership.” For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.
Foreign governments and foreign banks do own significant ownership interests in the member banks that own the Federal Reserve system. So it would be accurate to say that the Federal Reserve is partially foreign-owned.
But until the exact ownership shares of the Federal Reserve are revealed, we will never know to what extent the Fed is foreign-owned.
Spoiler Alert: If there are any six year olds reading this blog, you can skip today’s post. It’s not written for you. Do the right thing and click the “x” on this tab right now. Santa’s watching.
I believed in Santa Claus a little longer than most children do. For some reason, as long as I couldn’t definitely prove that my parents were the ones leaving presents under the Christmas tree, I wasn’t ready to completely reject the possibility that it really was jolly old Saint Nick riding a sleigh pulled by reindeer and magically shrinking himself small enough to slip under the front door or through the key hole and into my house (we didn’t have a chimney).
And my parents were incredibly sneaky. I never once caught them. But when I finally told my dad I didn’t believe in Santa any more, he said, with a sly grin, “Santa doesn’t deliver presents to kids who don’t believe in him,” and I promptly responded, “I believe! I believe!” The matter was settled. I got some awesome Legos that year.
The Federal Reserve, fiat money, and inflationary stimulus policies are no different than the Santa Claus of our childhoods. The only problem is that so many adults still believe in them. Let’s examine just how similar the two really are: Santa magically gives you everything you wished for at no cost to you. Free stuff, created magically out of thin air by elves in the North Pole. Purportedly, so can the Fed. Its magical elves are accountants that create wealth out of thin air at the stroke of a pen.
You cannot read the description of the personal stock trading allegedly conducted by Rep. Spencer Bachus and other members of Congress during the financial crisis and conclude anything other than the following:
Our government is completely corrupt.
Yes, this behavior may be technically legal, because of an absurd loophole that makes insider-trading rules not apply to Congress.
Yes, this behavior may be widespread on Capitol Hill.
But there is no universe in which a reasonable person would consider this behavior ethical or okay. And for the 300+ million Americans who aren’t members of Congress, it would be just plain illegal
Many members of Congress seem guilty here, including John Kerry, Dick Durbin, and Jim Moran. But Spencer Bachus takes the cake.
According to a new book called Throw Them All Out by Peter Schweizer, as relayed by Dave Weigel at Slate, Rep. Bachus made more than 40 trades in his personal account in the summer and fall of 2008, in the early months of the financial crisis.
The fact that Bachus personally traded on private information he received as a result of his job is bad enough. The fact that he was the ranking member of the House Financial Services Committee at the time is simply outrageous.
In one case, the day after getting a private briefing on the collapsing economy and financial system from Ben Bernanke and Hank Paulson, Rep. Bachus effectively shorted the market (by buying options that would rise if the market tanked.)
A few days later, after the market tanked, Bachus sold his position and nearly doubled his money.
If a corporate executive or Wall Street trader did this–cashed in personally after getting private, non-public information from his work–Rep. Bachus and every other member of Congress would be screaming from the rooftops about how the financial system is deeply corrupt and how the executive should be charged with insider trading.
And they would be right.
Rep. Bachus should return whatever money he made by betting on the direction of the markets (or anything else) in the fall of 2008. He should apologize for his behavior and jaw-dropping lack of judgement. He should urge his fellow members of Congress to immediately enact legislation that defends the fairness of the markets by holding Congress to the same insider trading laws as everyone else. He should then resign in disgrace.
Cain is incorrect on so many points, do your homework and listen again if needed.
Texas Congressman and GOP candidate Ron Paul slammed Obama over the September unemployment report. The Bureau of Labor and Statistics reported that the unemployment rate remained steady at 9.1 percent for the third month in a row. While the economy added 103,000 jobs, 45,000 of those jobs were due to the return of striking Verizon workers to the telecommunications company’s payroll.
“The national unemployment rate of 9.1 percent for the month of September says nothing new about our failed experiment with Keynesian economics,” Paul said via a press release on Friday. Paul added that “all these years of Washington deficit spending and money printing did not move the labor market.”
On Wednesday, Federal Reserve Chairman Ben Bernanke delivered a speech to the Joint Economic Committee of Congress. “Monetary policy can be a powerful tool, but it is not a panacea for the problems currently faced by the U.S. economy,” Bernanke said in a prepared statement.
Paul slammed Bernanke and Geithner for suggesting that the US economy is “on the road to recovery.” Paul also announced that he will put forth his own economic plan in the coming weeks. Paul insisted that his plan will “return us to economic prosperity and get America working again.”
Former Massachusetts Governor and GOP candidate Mitt Romney also slammed Obama over the September unemployment report. “What you’re seeing now is the result of a failed economic policy by a president who has been in office three years and is looking for someone to blame,” Romney said on FOX News’ “FOX and Friends.”