Posts tagged monetary
By Pedro da Costa and Alister Bull
(Reuters) – The Federal Reserve is likely to deliver another round of monetary stimulus “fairly soon” unless the economy improves considerably, minutes from the U.S. central bank’s latest meeting suggested.
While the July 31-August 1 meeting occurred before some encouraging economic data, including a stronger-than-expected rise in July payrolls, policymakers were pretty categorical about their dissatisfaction with the outlook, according to the minutes released on Wednesday.
“Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery,” the Fed said.
Wall Street stocks erased most losses after the Fed released the minutes. Treasury bond prices, which have been under pressure from stronger economic figures, extended gains. The dollar fell and the euro surged to a seven-week high against the greenback at the prospect of the Fed providing more stimulus.
Judge Napolitano attacks the wisdom of central banking.
Now more than every we need the Champion of the Constitution that has been trying to defend We The People from the central Banks!
Please visit Ron Paul’s official campaign site by following the link below and donate today!
Thanks to (@sibzianna)
Media Blackout on Troops who Rallied for Ron Paul in Washington DC on President’s Day
I have never been as proud to be an American as I am now and that wouldn’t have been possible if it weren’t for our troops and their passion for Ron Paul.
Our troops were warned:
This was posted on the RON PAUL IS THE CHOICE OF THE TROOPS Facebook event page by Kevin Audrain, who claims to be active duty Navy and was leaked to me by multiple unconfirmed sources.
From: Weger, Joel A CIV OGC, Ethics [mailto:joel.weger@NAVY.MIL]
Sent: Thursday, February 16, 2012 8:17
Subject: [ETHICS] Partisan Political March
It has come to our attention that a partisan political march targeting
military personnel is being organized for February 20, 2012. See link
As a reminder, active duty personnel are prohibited by DoD Directive 1344.10
paragraph 220.127.116.11 from marching in a partisan political parade regardless
of whether they are in uniform or civilian clothes. Reservists not on
active duty and retirees may not march in uniform pursuant to paragraph
4.1.4. Reservists not on active duty and retirees may march in civilian
clothes provided that they do not otherwise act in a manner that could
reasonably give rise to the inference or appearance of official sponsorship,
approval, or endorsement.
The directive is a lawful general regulation. Violations of paragraphs 4.1.
through 4.5. of the Directive by persons subject to the Uniform Code of
Military Justice are punishable under Article 92, “Failure to Obey Order or
In addition, DODI 1334.01, paragraph 3.1.2 prohibits the wearing of the
uniform by members of the armed forces (including retired members and
members of reserve components) during or in connection with political
You may wish to advise your command regarding this particular event because
of the apparent solicitation of active duty personnel.
Joel A. Weger
Department of the Navy
Office of the Assistant General Counsel (Ethics)
More than 18,000 people were invited to attend to attend the “RON PAUL IS THE CHOICE OF THE TROOPS! (march on the White House)”. Two-thousand-one-hundred and fifty-one people committed to going to the march while 964 people clicked maybe.
I didn’t think the mainstream media could disappoint me anymore than they already have. When the special news report came in on the television they said nothing about what was going on in Washington DC with our troops and instead talked about war propaganda in Iran.
The troops stood up for our freedoms for the first time that I know of, inside our own borders and it wasn’t even considered newsworthy?
I don’t understand what is wrong with our media!
I was fortunate enough to watch this unfold live on the internet thanks to feeds available from livestream and Ustream.tv but not one word has been uttered on the television.
Here was my take on the thing.
On February 20, 2012, on Presidents Day, our troops gathered for a rally in Washington DC to march in support for their candidate of choice, Ron Paul.
I was moved to tears as our troops marched in formation on our nation’s capitol shouting “President Paul”, “end the FED”, “end these wars”, and “Ron Paul revolution legalize the Constitution”.
For the first time since 9/11 I felt American Pride! It is the most patriotic event I’ve ever saw in my life.
Our troops stood silent and saluted for eight straight minutes to honor those who committed suicide since the Obama Administration took office. It was eerie to think about because for every second that passed a veterans life was lost due to suicide was honored.
Our troops challenged the legal advice given to them and I am thankful they did.
“We the people” must stand against this tyrannical government and the corrupt monetary system that has wreaked havoc all over the world. We can no longer say nothing or what freedom we do have will be forever gone.
he stock market took a tumble this afternoon and bounced back up (the Dow closed up 400 points) following a much-anticipated Federal Reserve announcement that the central bank would keep interest rates low until at least mid-2013. A number of progressive economists had hoped the Fed would implement a third round of quantitative easing and accused it of sitting on its hands. As the headline from the Washington Post‘s liberal columnist Ezra Kleinreads: “Meet the new Fed policy, (mostly the) same as the old Fed policy.” So why didn’t the Fed take more drastic action to ease investor worries and combat unemployment? Here’s what finance experts are saying:
Bernanke didn’t act because he’s given up, writes Agustino Fontevecchia at Forbes. “The Bernanke Fed has admitted the economy continues to remain depressed, essentially admitting that both programs of long-term asset purchases, or quantitative easing, have failed to prop up output after what has been the worst recession since the Great Depression.” he writes. “They have realized that anticipated inflation for early 2012 isn’t going to happen,” adds Frank Fantozzi, CEO and chief investment strategist of Planned Financial Services. “[They’ve accepted] that we only received supply-side inflation from raw materials.”
There wasn’t enough internal support for more quantitative easing, writes The Atlantic’s Dan Indiviglio, noting that three members of the Fed’s monetary policy committee didn’t even want to pledge to keep interest rates low. “That’s some serious dissent from a committee that usually acts in unison, or near-unison. It also indicates that additional monetary stimulus probably never had a shot,” he writes. “If these three members weren’t even on board with something as comparably benign as altering the meeting statement’s language about policy, then it’s hard to see how there could have been near-sufficient support to inject additional money into the financial system.”
The Fed doesn’t have any tools left at its disposal, says Columbia Business School professor David Beim, in a statement to The Atlantic Wire. “They do not have any effective tools available to help the economy. The classic macroeconomic prescription of easy monetary policy has been used to the max, together with ‘quantitative easing,’ together with very loose fiscal policy, and these have not budged the economy. This is because the obstacles to economic recovery lie elsewhere: over-indebted consumers, over-built real estate and under-educated workers. Fixing these structural problems in a short time frame, however, is unlikely. Throwing more money at them is ineffectual.”
Dissent: actually, Bernanke had a number of tools at his disposal, says Joseph E. Gagnon, a senior fellow at the Peterson Institute for International Economics speaking with The Washington Post: “They should do a major QE3. It’s long overdue at this point. I think QE2 was just way too small to matter. You need big numbers in these things. It’s not like spending. It’s a swap of two different types of assets. So the effect is much, much smaller than if you were spending the same amount of money. So I would start with $2 trillion and say that we have an unlimited capacity to do this and we will do however much is necessary to get the economy moving. Build the expectation that this is just a downpayment. This is the problem the Bank of Japan had, where every time they did something, they immediately said this is the most we can do and we can’t wait to stop doing it. You want to be bold and say this is not our last bullet and we can and will do more if we need to.”
Ron Paul On “Debt Ceiling Drama” “We Need To Stop Allowing Secretive Banking Cartels To Endlessly Enslave Us”0
he barrage of political statements on the debt ceiling is reaching a crescendo. Following Eric Cantor, here is Ron Paul.
Debt Ceiling Drama
First of all, politicians need to understand that without real change default is inevitable. In fact, default happens every day through monetary policy tricks. Every time the Federal Reserve engages in more quantitative easing and devalues the dollar, it is defaulting on the American people by eroding their purchasing power and inflating their savings away. The dollar has lost nearly 50% of its value against gold since 2008. The Fed claims inflation is 2% or less over the past few years; however economists who compile alternate data show a 9% inflation rate if calculated more traditionally. Alarmingly, the administration is talking about changing the methodology of the CPI calculation yet again to hide the damage of the government’s policies. Changing the CPI will also enable the government to avoid giving seniors a COLA (cost of living adjustment) on their social security checks, and raise taxes via the hidden means of “bracket creep.” This is a default. Just because it is a default on the people and not the banks and foreign holders of our debt does not mean it doesn’t count.
Politicians also need to acknowledge that our debt is unsustainable. For decades our government has been spending and promising far more than it collects in taxes. But the problem is not that the people are not taxed enough. The government has managed to run up $61.6 trillion in unfunded liabilities, which works out to $528,000 per household. A tax policy that would aim to extract even half that amount of money from American families would be unimaginably draconian, and not unlike attempting to squeeze blood from a turnip. This is, unequivocally, a spending problem brought about by a dramatically inflated view of the proper role of government in a free society.
Perhaps the most abhorrent bit of chicanery has been the threat that if a deal is not reached to increase the debt by August 2nd, social security checks may not go out. In reality, the Chief Actuary of Social Security confirmed last week that current Social Security tax receipts are more than enough to cover current outlays. The only reason those checks would not go out would be if the administration decided to spend those designated funds elsewhere. It is very telling that the administration would rather frighten seniors dependent on social security checks than alarm their big banking friends, who have already received $5.3 trillion in bailouts, stimulus and quantitative easing. This instance of trying to blackmail Congress into tax increases by threatening social security demonstrates how scary it is to be completely dependent on government promises and why many young people today would jump at the chance to opt out of Social Security altogether.
We are headed for rough economic times either way, but the longer we put it off, the greater the pain will be when the system implodes. We need to stop adding more programs and entitlements to the problem. We need to stop expensive bombing campaigns against people on the other side of the globe and bring our troops home. We need to stop allowing secretive banking cartels to endlessly enslave us through monetary policy trickery. And we need to drastically rethink government’s role in our lives so we can get it out of the way and get back to work.