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Showing posts with label FED. Show all posts
Showing posts with label FED. Show all posts
Central Bank Bubble-Blowers and the Rehypothecation Inflation-Nation!!
http://youtu.be/UyqKA8KFIhA
Thomson/Reuters: "Considering that re-hypothecation may have increased the financial footprint of Eurozone bonds by at least four fold then a European sovereign default could be apocalyptic."
Geithner has approved plans for (IMF) to absorb the Fed ???
http://www.newswithviews.com/Barnewall/marilyn162.htm
http://www.newswithviews.com/Barnewall/marilyn162.htm
...There is word on the street that Secretary of the Treasury, Timothy Geithner, has approved plans for the International Monetary Fund (IMF) to absorb the Federal Reserve System with an eye to the IMF becoming a global central bank. A “basket of currencies” (which includes the Chinese renmenbi/yuan) is to be created to replace the dollar as the international currency of trade. Plans are for “the basket” to become America’s new currency.
Is it true? There’s no way to confirm the rumor. The same spark that lit the fire under the rumor also suggests it will not be long in coming. If true, I believe it is an act that borderlines Treason. I’m no lawyer, but it seems to this citizen of the United States that my Constitution (which defines government’s limitations) says the only authority for currency and coinage in this country is the United States Congress. I have a sovereign right to an American currency as determined by the United States Congress, and some jerk-o Treasury Secretary who can’t remember to pay his taxes doesn’t have the standing to rewrite the Constitution at will.
The Congress broke the constitutional bond regarding its responsibility for our currency and monetary policy when it created the Federal Reserve System and handed over to a private corporation what the Constitution says only the Congress has the right to do. I wonder if Congress set a precedent in 1913 when it approved the Federal Reserve Act. By rejecting its responsibility to manage currency, coinage and monetary policy, did Congress pave the road for individual states to reject their constitutional obligation to rely on the federal government for currency, coinage and monetary policy? Can states create their own currency? One could certainly make a good argument for – or, against – it. If one person to a contract violates the agreement, can the other party be bound by it? It’s a good question.
http://www.newswithviews.com/Barnewall/marilyn162.htm
The Coming Rout
Chris Martenson posts a warning on his pay-for website regarding the possibility of a Fed move to limit QE after QE2 finishes in May. You can read the first half of his post which includes some analysis and reasons for his warning - PART 1 is free on his site. You will not be able to read PART 2 which includes the Martenson opinion on "what to do" without a paid enrollment to the site. So you'll have to pay up, use your brains, or go to Zero Hedge for those answers. All aside, Martenson has a great site (advertisement free), a free e-mailing he puts out, and lots of compiled materials and benefits for his subscribers, not the least of which is his analytical input which I find to be very calmly presented and empirically derived. Recommended for your consideration. (Disclosure: I subscribe to the Freebies and do not get any kick-back for promoting his site.)
http://www.chrismartenson.com/blog/coming-rout/53869
http://www.chrismartenson.com/blog/coming-rout/53869
The Coming Rout
Tuesday, March 8, 2011, 9:37 am, by cmartenson
There's a scenario that could play out between May and September in which commodities (including my beloved silver) and the stock and bond markets could all sell off between 20% and 40%. The trigger will be the cessation of QE II and a multi-month pause before QE III.
First, on March 2, 2011 Bernanke said this:
Bernanke Signals No Rush to Tighten When Asset-Buying Ends
Upon the cessation of the QE efforts, and the cessation of $4 billion a day in Treasury buying pressure, it's a safe bet that market interest rates will rise. Bernanke is at least on record as saying that if this happens, it won't be because the Fed has taken the lead.
Bernanke was being a little bit sloppy in his statements, because stopping QE will serve to tighten credit simply because there will be a lot less liquidity sloshing around the system. It's a situation where the absence of excess is the same as the presence of tightness, if that makes any sense.
Then on March 5th, a much stronger and clearer signal was given, confirming my worries:
Fed Policy Makers Signal Abrupt End to Bond Purchases in June
The old saying 'sell in May and go away' might never be truer than this year, although with this sort of a warning, the cautious investor may want to get a head start on things and sell in March or April.
For some time there have been rumors that the Fed has been splitting into... SEE PART ONE HERE on Chris Martenson's Site
UPDATE - RELATED:
Advice On How To Trade Gross' Treasury Dump From A Former PIMCO Employee - ZeroHedge
First, on March 2, 2011 Bernanke said this:
Bernanke Signals No Rush to Tighten When Asset-Buying Ends
March 2, 2011The "no rush to tighten credit" statement is a signal that the Fed will neither raise rates at the end of the QE program nor perform reverse POMOs where it reels cash back in and pushes MBS and/or Treasury paper back out.
Federal Reserve Chairman Ben S. Bernanke signaled he’s in no rush to tighten credit after the Fed finishes an expansion of record monetary stimulus, seeing little inflation risk and still-slow job growth.
A surge in the prices of oil and other commodities probably won’t generate a lasting rise in inflation, Bernanke told lawmakers yesterday in semiannual testimony on monetary policy. A “sustained period of stronger job creation” is needed to ensure a solid recovery, and the Fed’s benchmark rate will stay low for an “extended period,” he said.
Upon the cessation of the QE efforts, and the cessation of $4 billion a day in Treasury buying pressure, it's a safe bet that market interest rates will rise. Bernanke is at least on record as saying that if this happens, it won't be because the Fed has taken the lead.
Bernanke was being a little bit sloppy in his statements, because stopping QE will serve to tighten credit simply because there will be a lot less liquidity sloshing around the system. It's a situation where the absence of excess is the same as the presence of tightness, if that makes any sense.
Then on March 5th, a much stronger and clearer signal was given, confirming my worries:
Fed Policy Makers Signal Abrupt End to Bond Purchases in June
March 4, 2011Whoa. This is important news. Not only a cessation of QE, but the possibility of a sudden stop is being telegraphed. This will change everything.
Federal Reserve policy makers are signaling they favor an abrupt end to $600 billion in Treasury purchases in June, jettisoning their prior strategy of gradually pulling back on intervention in bond markets.
“I don’t see a lot of gain to reverting to a tapering approach,” Atlanta Fed President Dennis Lockhart told reporters yesterday. “I don’t think that is necessary,” Philadelphia Fed President Charles Plosser said last month.
The old saying 'sell in May and go away' might never be truer than this year, although with this sort of a warning, the cautious investor may want to get a head start on things and sell in March or April.
For some time there have been rumors that the Fed has been splitting into... SEE PART ONE HERE on Chris Martenson's Site
UPDATE - RELATED:
Advice On How To Trade Gross' Treasury Dump From A Former PIMCO Employee - ZeroHedge
Ron Paul Plans on New Initiative to Reign In the FED
(Reuters) - Republican Representative Ron Paul on Thursday said he will push to examine the Federal Reserve's monetary policy decisions if he takes control of the congressional subcommittee that oversees the central bank as expected in January.
"I think they're way too independent. They just shouldn't have this power," Paul, a longtime Fed critic, said in an interview with Reuters. "Up until recently it has been modest but now it's totally out of control."
Paul is currently the top Republican on the House of Representatives subcommittee that oversees domestic monetary policy, and is likely to head the panel when Republicans take control of the chamber in January.
That could create a giant headache for the Fed, which earlier this year fended off an effort headed by Paul to open up its internal deliberations on interest rates and monetary easing to congressional scrutiny.
Paul, who has written a book called "End the Fed," has been a fierce critic of the central bank's efforts to boost the economy through monetary policy.
"It's an outrage, what is happening, and the Congress more or less has not said much about it," he said.
Paul said his subcommittee would also push to examine the country's gold reserves and highlight the views of economists who believe that economic downturns are caused by bad monetary policy, not the vagaries of the free market.
Global organizations like the International Monetary Fund also will come under scrutiny, he said.
"Eventually we're going to have monetary reform. I do not believe the dollar can be the reserve standard of the world," said Paul, who has called for returning the United States to a currency backed by gold or silver.
Many economists say that the Fed's decisive actions during the 2008 financial crisis prevented the deep recession that followed from turning into a depression. But grassroots outrage over the bank bailouts and other Fed actions helped propel many Republican candidates to victory in Tuesday's congressional elections -- including Paul's son, Rand Paul, who will represent Kentucky in the Senate.
"With a lot of new members coming and the problems getting worse rather better, there's going to be a lot more people who are going to be looking for answers," Paul said.
"I think they're way too independent. They just shouldn't have this power," Paul, a longtime Fed critic, said in an interview with Reuters. "Up until recently it has been modest but now it's totally out of control."
Paul is currently the top Republican on the House of Representatives subcommittee that oversees domestic monetary policy, and is likely to head the panel when Republicans take control of the chamber in January.
That could create a giant headache for the Fed, which earlier this year fended off an effort headed by Paul to open up its internal deliberations on interest rates and monetary easing to congressional scrutiny.
Paul, who has written a book called "End the Fed," has been a fierce critic of the central bank's efforts to boost the economy through monetary policy.
"It's an outrage, what is happening, and the Congress more or less has not said much about it," he said.
Paul said his subcommittee would also push to examine the country's gold reserves and highlight the views of economists who believe that economic downturns are caused by bad monetary policy, not the vagaries of the free market.
Global organizations like the International Monetary Fund also will come under scrutiny, he said.
"Eventually we're going to have monetary reform. I do not believe the dollar can be the reserve standard of the world," said Paul, who has called for returning the United States to a currency backed by gold or silver.
Many economists say that the Fed's decisive actions during the 2008 financial crisis prevented the deep recession that followed from turning into a depression. But grassroots outrage over the bank bailouts and other Fed actions helped propel many Republican candidates to victory in Tuesday's congressional elections -- including Paul's son, Rand Paul, who will represent Kentucky in the Senate.
"With a lot of new members coming and the problems getting worse rather better, there's going to be a lot more people who are going to be looking for answers," Paul said.
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