From Stark
In one of the least-surprising developments of the week, Federal Reserve Chairman Ben Bernanke’s economic stimulus actions, announced Thursday, Sept. 13, have triggered a lot of political commentary.
Writing in the Wall Street Journal, Stephen Moore suggests that Bernanke is injecting new financial stimulus to help Barack Obama’s reelection prospects and thereby save his own job. Republican challenger Mitt Romney has said he will replace Bernanke if he is elected.
If Romney is, in fact, elected and Bernanke is shown the door, I’m guessing Bernanke won’t be unemployed any longer than he wants to be.
Romney himself had this reaction to the Fed’s moves: He called the stimulus a “sugar high” for the U.S. economy, according to this AFP report.
Not that it wasn’t predicited:
“Peter Schiff, CEO of Euro Pacific Capital, says QE3 is coming, whether it’s this week, next week or in a couple months. And he doesn’t think that’s a good thing.
“The U.S. economy is addicted to QE,” Schiff tells Yahoo. “But if the Fed had any backbone it wouldn’t supply the heroin anymore. It would let the market restructure without QE, which is what we need.”..
The Fed can engender a phony recovery with QE, but it won’t last,” Schiff says.
“That’s what’s happening now, because QE2 is wearing off. … All this is counterproductive. It’s exacerbating the fundamental and structural imbalances that underlie the economy.”
Bottom line, he says: “as long as the Fed is doing QE, this recession, and I call it a depression, is going to get worse and worse and worse.”
Read more: Economist Schiff: QE3 is Coming and Will Worsen Our ‘Depression’
AFY!!theheelotsheepdog!!!
And where is the fed getting all this revenue? In my opinion, the fed AND obama, along with the Dem’s are running in full panic mode as the economy implodes!
The economy is like one of those air bags you see at the fair. Kids can bounce up and down all they want until the air stops flowing. In this case the children are American consumers. In order to keep bouncing along, the carney (in this case Bernanke) has to keep up the air flow.
“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….
….Like a good central planner, Bernanke is using his policies to subsidize the still rapidly growing, gargantuan debt of the U.S. government….
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….
http://www.forbes.com/forbes/2012/0227/fact-comment-socialism-ben-bernanke-steve-forbes.html
AFY!!theheelotsheepdog!!!
Things just keep getting better:
“Ratings agency Egan-Jones on Friday downgraded the U.S. country rating to AA-minus from AA, citing the Federal Reserve’s latest stimulus program to boost the sluggish economy….
“(The) Fed’s QE3 will stoke the stock market and commodity prices but in our opinion (it) will hurt the U.S. economy and, by extension, credit quality,” Egan-Jones said in a statement about the latest quantitative easing program….
http://www.reuters.com/article/2012/09/14/usa-ratings-eganjones-idUSL1E8KEGNA20120914
AFY!!theheelotsheepdog!!!
SCHIFF in 2009: You know, look, I know inflation is going to get worse in 2010. Whether it’s going to run out of control or it’s going to take until 2011 or 2012, but I know we’re going to have a major currency crisis coming soon. It’s going to dwarf the financial crisis and it’s going to send consumer prices absolutely ballistic, as well as interest rates and unemployment.
I suppose out of control inflation might kick in sometime before 2012 is up. But Schiff and other inflation warners have been very wrong for sometime now. But AFY feel free to run out and buy gold (Schiff is claiming it will go to $5,000/ounce) Perhaps Schiff is trying to stimulate the geology sector.
No inflation Dan?
When was the last time you bought gas or groceries?
If the same methodology that was used in 1980 to chronicle the double digit inflation of that era were in use today, we would have an inflation rate in double digits right now.
Currently the fed excludes food and fuel costs from its rate of “core inflation.”
Most all commodities have been going thru the roof not just gold btw.
“Yesterday the Fed announced QE 3: an open ended program through which the Fed will purchase $40 billion worth of Mortgage Backed Securities every month until it decides that the world is right again.
The implications of this are severe. However, the first question we have to ask is, “why now?”
After all, stocks were already at 4-year highs, food and energy prices were soaring, interest rates were at record lows, etc. On top of this, the Fed failed to announce QE 3 for over a year (QE 2 ended June 2011). Why announce it now?
There are only two reasons:
1) Things are in fact far worse behind the scenes than we know (the Fed HAD to do something to get more money into the system)
2) Politics…
http://www.zerohedge.com/contributed/2012-09-14/fed%E2%80%99s-qe-3-program-short-term-thinking-long-term-pain
IMHO it is both reasons!
AFY!!theheelotsheepdog!!!
“Whoever controls the volume of money in any country is absolute master of all industry and commerce.”(Paul Warburg, drafter of the Federal Reserve Act)
“Permit me to issue and control the money of a nation and I care not who makes its laws.”(Mayer Amschel, subsequently known as Mayer Rothschild)
The Fed is simply performing its real function, extracting economic rent from those who produce and transferring it to those who do not. No, not the unemployed, the masters of the universe.
If you believe that history will repeat itself if you don’t learn from the past than all you have to do is look at what happened to other currencies to see where our is headed when the printing presses were let run wild with zeroi to back them up like for example the Reichsmarks in Germany after World War I or even our very own Confederate dollars during the Civil War.
AFY!!theheelotsheepdog!!!
Yep the fed sure does have us on the road to serfdom, don’t ya know!
AFY!!theheelotsheepdog!!!
Where does the road to serfdom lead?
Again we can learn from history, there have been have previous democratic elected governments who have given man like those who run our fed the unlimited ability to plan their economy and what did they experience ultimately?
From “The Road to Serfdom”:
“…. There is no justification for the widespread belief that, so long as power is conferred by democratic procedure, it cannot be arbitrary; it is not the source of power which prevents it from being arbitrary; to be free from dictatorial qualities, the power must also be limited. A true “dictatorship of the proletariat”, even if democratic in form, if it undertook centrally to direct the economic system, would probably destroy personal freedom as completely as any autocracy has ever done.”
So where has this road to serfdom lead before in history, well maybe if I add in the sentence before this previous quote we may better understand;
“Planning leads to dictatorship because dictatorship is the most effective instrument of coercion and, as such, is essential if central planning on a large scale is to be possible.”
AFY!!theheelotsheepdog!!!
I have read so many content concerning the blogger lovers except this article is really a good paragraph,
keep it up.
Many of the founding fathers experienced the damage caused by fiat currency. Most of the revolutionary war was financed by worthless currency called “Continentals”.
# The Continental Currency (“Not worth a Continental”) that American colonists issued for the Continental Congress to finance the Revolutionary War was replaced by the US Dollar in 1785 when The Continental Congress adopted the dollar as the unit for national currency. At that time, private bank-note companies printed a variety of notes. After adoption of the Constitution in 1789, Congress chartered the First Bank of the United States and authorized it to issue paper bank notes to eliminate confusion and simplify trade. The U.S. Constitution (Section 10) forbids any state from making anything but gold or silver a legal tender. The Federal Monetary System was established in 1792 with the creation of the U.S. Mint in Philadelphia. The first American coins were struck in 1793. The U.S. Coinage Act of 1792, consistent with the Constitution, provided for a U.S. Mint, which stamped silver and gold coins. The importance of this Act cannot be stressed enough. One dollar was defined by statute as a specific weight of gold.
# The Act also invoked the death penalty for anyone found to be debasing money.
# President George Washington mentions the importance of the national currency backed by gold and silver throughout his initial term of office and he contributed his own silver for the initial coins minted.
# The purchase of The US Mint in Philadelphia, was the first money appropriated by Congress for a building to be used for a public purpose. It was purchased for a total of $4,266.67 on July 18, 1792.
Here’s the Coinage Act so everyone can read the truth for themselves:
“SEC. 19. And be it further enacted, That if any of the gold or silver coins which shall be struck or coined at the said mint shall be debased or made worse as to the proportion of fine gold or fine silver therein contained, or shall be of less weight or value than the same ought to be pursuant to the directions of this act, through the default or with the connivance of any of the officers or persons who shall be employed at the said mint, for the purpose of profit or gain, or otherwise with a fraudulent intent, and if any of the said officers or persons shall embezzle any of the metals which shall at any time be committed to their charge for the purpose of being coined, or any of the coins which shall be struck or coined at the said mint, every such officer or person who shall commit any or either of the said offences, shall be deemed guilty of felony, and shall suffer death.”
It’s great when you believe in democracy, as Plato explained in the BC Era, Greece on fire today?
Defining BC, and brought to you by…and when they had opened their treasures, they presented unto him gifts; gold, and frankincense, and myrrh.
“every officer?”
“…the stimulus programs themselves. Intended to inspire optimism by demonstrating government’s commitment to recovery, they could do the opposite. If consumers and companies interpret them as signaling that the economy is in worse shape than they thought, they might retrench even more. Some stimulus benefits would be offset.
There is a desperate air to Bernanke’s latest move. At best, it will reinforce a long-awaited housing revival. At worst, it will founder on obvious problems. How much lower can the Fed drive long-term interest rates? How much money can the Fed shovel into the economy without rekindling inflationary expectations and behavior? The Fed is on the brink of moving beyond what it understands and can control.”
http://articles.orlandosentinel.com/2012-09-17/news/os-ed-robert-samuelson-091712-20120917_1_interest-rates-funds-rate-jobless-rate
AFY!!theheelotsheepdog!!!
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