Posts tagged Central Bank
I’ve posted before on the purchasing power of the silver quarter from 1964. Here’s an interesting item The Internet cooked up recently:
Here’s the breakdown:
The minimum wage in 1964 was raised to $1.15 in September; pretty close to the five quarters. The exact exchange would be four quarters and one and a half dimes, which today (March 4, 2013) equals $23.81, or more than three times the current federal minimum wage of $7.25.
Interestingly enough, those coins contain 0.83 oz. of silver (along with some copper), which is equal to $23.78; pretty close to the $23.81 above.
The same $1.15 of goods in 1964 would cost a consumer $8.54 today, an increase of more than 700 percent. So in order to provide the same purchasing power the minimum wage would have to be closer to fifty bucks an hour.
Something else to consider is that roughly 1/4 of the minimum wage at the time would buy a gallon of gas ($0.30/ gallon). Today it takes closer to 1/2 of the minimum wage to buy a gallon ($3.74/ gallon).
Of course the answer is not to raise the minimum wage, but instead to put an end to central bank money creation and allow competition in currency.
Posted by SchiffReport
Peter Schiff on Fox Business (2/18/13)
By CBC News
Venezuela’s government announced Friday that it is devaluing the country’s currency, a long-anticipated change expected to push up prices in the heavily import-reliant economy.
Officials said the fixed exchange rate is changing from 4.30 bolivars to the dollar to 6.30 bolivars to the dollar.
The devaluation had been widely expected by analysts in recent months, though experts had been unsure about whether the government would act while President Hugo Chavez remained out of sight in Cuba recovering from cancer surgery.
It was the first devaluation to be announced by Chavez’s government since 2010, and it brought down the official value of the bolivar by 46.5 percent against the dollar. By boosting the bolivar value of Venezuela’s dollar-denominated oil sales, the change is expected to help alleviate a difficult budget outlook for the government, which has turned increasingly to borrowing to meet its spending obligations.
Planning and Finance Minister Jorge Giordani said the new rate will take effect Wednesday, after a two-day banking holiday. He said the old rate would still be allowed for some transactions that already were approved by the state currency agency.
Venezuela’s government has had strict currency exchange controls since 2003 and maintains a fixed, government-set exchange rate. Under the controls, people and businesses must apply to a government currency agency to receive dollars at the official rate to import goods, pay for travel or cover other obligations.
While those controls have restricted the amounts of dollars available at the official rate, an illegal black market has flourished and the value of the bolivar has recently been eroding. In black market street trading, dollars have recently been selling for more than four times the official exchange rate of 4.30 bolivars to the dollar.
The announcement came after the country’s Central Bank said annual inflation rose to 22.2 percent in January, up from 20.1 percent at the end of 2012.
The oil-exporting country, a member of OPEC, has consistently had Latin America’s highest officially acknowledged inflation rates in recent years. Spiraling prices have come amid worsening shortages of some staple foods, such as cornmeal, chicken and sugar.
Seeking to confront such shortages, the government last week announced plans to have the state oil company turn over more of its earnings in dollars to the Central Bank while reducing the amount injected into a fund used for various government programs and public works projects.
Giordani said the government had also decided to do away with a second-tier rate that has hovered around 5.30 bolivars to the dollar, through a bond market administered by the Central Bank. That rate had been granted to some businesses that hadn’t been able to obtain dollars at the official rate.
It was the fifth time that Chavez’s government has devalued the currency since establishing the currency exchange controls a decade ago in an attempt to combat capital flight.
Republished with permission
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…
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US President Barack Obama demanded from Congress immediate action to prevent America from falling of a so-called fiscal cliff, but Rep. Ron Paul (R-Texas) says it might be too late to keep the country afloat.
Speaking with Bloomberg Television on Thursday, the lawmaker who ran against Pres. Obama during the last two elections said he expects that America’s financial woes are beyond repair.
“We’re so far gone,” said the congressman, who will retire from the Hill this year after serving 12 terms in the House. “We’re over the cliff. We cannot get enough people in Congress in the next 5 to 10 years who will do the wise things. We have to prepare for having already fallen off the fiscal cliff.”
On the campaign trail leading up to the Nov. 6, 2012 election, Rep. Paul proposed an array of ideas he said would save the country from economic disaster, including returning to a gold standard and abolishing the Federal Reserve, America’s central bank. On his part, Pres. Obama vowed to keep the company in tact if elected to a second term, and Friday told reporters at the White House that he expects Congress to come to his side and do what’s right to prevent what Rep. Paul says is inevitable now.
Just two days ago Zerohedge had an article about the German court demanding, Germany’s gold be viewed and accounted for.
Portions from above:
Germany has the second largest gold reserves in the world, nearly 3400 tons. Supposedly, anyway. Because stocks have never been checked for authenticity and weight. Now, the Federal Court has asked the Bundesbank to examine the gold reserves abroad regularly.
The German central bank gold is safely stored in vaults in Frankfurt, New York, Paris and London. Checked really but apparently no one. The Federal Court has the Bundesbank now anyway required regular inspection and inventory of the vast gold reserves abroad. The auditors explain this in a report on Monday has become known to the budget committee of the Bundestag with the “high value of gold holdings.”
The samples stored at other German banks stocks were also never by the Bundesbank itself or by other independent auditors “added physically and for authenticity and weight” checked. Actually talk on the subject numerous theories – so should the U.S. gold reserves at Fort Knox have long been looted.
With the implementation of this recommendation, the Bundesbank has begun according to the report. They also decided to bring in the next three years to 50 tons each of the past at the Fed in New York gold to Germany to get it here to undergo a thorough examination.
Bundesbank had been slammed for not auditing nor ever confirming Germany’s gold is where it is suppose to be.
Well it seems the German Parliament has been denied that right by the Central bank, Bundesbank. Bundesbank has denied the Parliament access to view the gold due to “lack of visiting rooms.”
German Federal auditors handed in a report slamming the Bundesbank for not inspecting their foreign held gold reserves to verify their book value. The report says the gold bars “have never been physically checked by the Bundesbank itself or other independent auditors regarding their authenticity or weight.” Instead, it relies on “written confirmations by the storage sites.” The lion’s share of Germany’s gold reserves (nearly 3,400 tons estimated at $190 billion) are housed in vaults of the US Federal Reserve, the Bank of England and the Bank of France since the post-war days, when they were worried about a Cold War Soviet invasion. The Bundesbank stated, “There is no doubt about the integrity of the foreign storage sites in this regard”. In contrast with best industry practices Germany’s gold reserves do not seem to be independently verified by a third party. Philipp Missfelder, a politician from Merkel’s own party, has asked the Bundesbank for the right to view the gold bars in Paris and London, but the central bank has denied the request, citing the lack of visitor rooms in those facilities, German’s daily Bild reported. The Bundesbank won’t let German parliament members inspect the German gold vaulted abroad because the central bank vaulting facilities supposedly lack “visiting rooms.“ And yet one of those vaults, the Federal Reserve Bank of New York, offers the public tours that include “an exclusive visit to the gold vault”.
So, the game goes on. A country is not even being allowed access to their gold,will the gold actually be audited by Bundesbank or will they ignore the court order? Will they test it for tungsten?
* Sources say coalition discussed removing governor
* Bank chief’s firing could worry investors
* Tensions between bank, ministers over inflation
* Sacking is prerogative of interim parliament
By Tarek Amara
TUNIS, May 27 (Reuters) – The parties that make up Tunisia’s coalition government have proposed removing the governor of the central bank, two party sources said, a step which could alarm investors already jittery after last year’s revolution.
Tunisia, struggling to emerge from recession, has held a steady course on inflation, interest and exchange rates even in the turmoil that followed the ousting of its president, but talk of firing the central bank chief suggests it may be hard to hold that line.
Tensions have emerged in the past few months between the government and the central bank over who has the last say on monetary policy.
The government unveiled a target for inflation but bank governor M ustapha Kamel Nabli responded by saying this figure was set by the bank and that he would not accept political interference in its work.
Removing Nabli is the prerogative of the constitutional assembly, Tunisia’s interim parliament. The government therefore cannot itself fire him, but it has a majority in the assembly.
“There is a proposal from the three parties to replace the central bank governor,” said an official with Ennahda, the moderate Islamist party which dominates the coalition.
“We are leaning towards discussing this …(proposal) in the constitutional assembly, which has the right to make this change,” he said.
A source from the second-biggest party in the coalition, the Congress for the Republic, confirmed that removing Nabli has been discussed at a meeting of the coalition, but he declined to give any details.
A spokesman for the central bank said he knew nothing about any plan to remove Nabli and that the bank was functioning as normal. There was no immediate comment from Ettakatol, the third party in the governing coalition.
The central bank chief is an academic who used to be chief Middle East economist for the World Bank.
He was appointed a few days after the revolution which forced out long-standing Tunisian leader Zine al-Abidine Ben Ali and inspired the wave of upheavals that swept aside veteran heads of state in Egypt, Libya and Yemen.
The violence and upheaval of the revolution scared off tourists and foreign investors. They are slowly returning, but the financial crisis in the euro zone, Tunisia’s biggest trading partner, is now taking its toll.
Government ministers, with their eyes on winning a round of elections scheduled to take place in 2013, want to restore growth as fast as possible. The central bank though is worried by inflation which accelerated to 5.7 percent in April.
In a statement issued after its board met earlier this month, the bank said it would have to raise interest rates if inflationary pressures persist, a step that risks hurting the country’s tentative economic recovery. (Writing by Christian Lowe; Editing by Louise Ireland)
You have probably seen the images by now. Athens on fire, the city literally burning as politicians within parliament voted to pass tough austerity measures to meet the demands of the EU and IMF, Greece’s international lenders. This story is about more than just austerity and riots – it’s wealth-extraction amidst economic collapse at work. The Greek economy is in the 5th year of a recession, which is a nice way of saying that it is in a depression. Money supply continues to contract, deposits are being drained and liquidity has dried up. The economy is in a free fall, and there is no bottom in sight. The proposals for recovery through “austerity” are just another way to keep the political system in place for as long as possible with the hope that the elites will be able to ride this storm out and come out the other end richer and more powerful than every before. We break down how exactly that works with Capital Account producer Demetri Kofinas.
And while we’re on the issue of debt, let’s take a look at how the US is dealing with it. US President Barack Obama released his 2013 budget today. While it will be analyzed, touted, and attacked, why should you care, or rather, why should you not care? We’ll tell you. And more economists come out saying the Federal Reserve is making a big mistake if it sticks to keeping interest rates near zero for the next three years. We look at how the Fed got here – it’s evolution into central planner, buyer of junk, war enabler, and firefighter of the economic fires it creates itself. We speak to G. Edward Griffin whose been opposing the Fed since at least the 1960s. G. Edward Griffin is author the bestselling book The Creature from Jekyll Island, which has been recommended by Republican Presidential hopeful Ron Paul on his reading list and which reportedly informed Dr. Paul’s writing on the Fed in his own books on the subject.
Griffin also takes us back in time, and reminds us how the Fed even came to be — the money trust meeting in secret on Jekyll Island in order to draft a cartel agreement that would eventually be known as the “Federal Reserve Act.”
This is my daughter. She gave this speech at a businees meeting in front of 600 people. Her eyes have been opened to a scam that is being perpetrated upon Canadians and the rest of the world.
I am the owner of this video.
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and add “Corrupt Canadian Banking System” to the description if you choose to re-upload
Feel free to use it freely without altering the content in a manner that would draw conclusions unintended by the speech but please redirect people back to the original post.
Please also see these great resources for more information and people who are trying their best to enact the necessary change in our country and the world:
Documentary (really good)
Bill Abram;’s mini documentary (really good)
The Case against the Bank of Canada (lawsuit to have the BOC reinstated as our lender)
Torie’s Interview with Dan Dicks from Press For Truth: