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It’s Official: Ron Paul is Head of Monetary Policy Subcommittee

Posted on Dec 09, 2010 in Political Issues

Source: Zero Hedge

Despite rumors that various splinter forces within the Republican party are attempting to block Ron Paul’s fateful chairmanship of the Monetary Policy Subcommittee, we now have confirmation that the only sane politician left will now be Ben Bernanke’s direct nemesis during any and all future Congressional spectacles starring the printing unchallenged one. And with US debt creeping ever closer to the debt ceiling, coupled with the dollar for dollar monetization of the US deficit, such spectacles will soon be plenty.

Fast forward to 3:30 in the clip for the announcement.


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What if the Federal Reserve Buys California’s Municipal Bonds?

Posted on Nov 19, 2010 in Economic News

Source: MSNBC

California’s delay of a $10 billion municipal bond sale has only fueled existing chatter on trading floors that the Federal Reserve would take the extraordinary step of buying these securities just as it has with Treasuries. Chairman Ben Bernanke would pursue this unprecedented route, if he thought necessary, even after the vocal criticism he’s received for his second round of quantitative easing, they said.

“Given the recent bond offering by California appears to have been given the cold shoulder by the public, might they turn to the Fed?” asks Art Cashin, director of NYSE floor operations at UBS Financial Services, in his widely-read morning note to clients.

Cashin has often referred to a 2002 speech by Bernanke on deflation, where the Chairman hints at buying all kinds of securities as a playbook for the current crisis.

“The Fed has the authority to buy foreign government debt, as well as domestic government debt,” said then-Governor Bernanke, to the National Economists Club in Washington D.C.

“Because some of these alternative policy tools are relatively less familiar, they may raise practical problems of implementation and of calibration of their likely economic effects,” he added....

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Bernanke’s Worst Nightmare: Ron Paul

Posted on Nov 15, 2010 in Political Issues

Source: CNN Money

Ben Bernanke has had his hands full since his first day on the job as Federal Reserve chairman nearly five years ago. It’s about to get even tougher.

His harshest critic on Capitol Hill, Rep. Ron Paul of Texas, is about to become one of his overseers.

With the Republicans coming to power, Paul, who would like to abolish the Fed and the nation’s current monetary system, will become the chairman of the House Subcommittee on Domestic Monetary Policy.

If you’ve never heard of the committee before, you’re not alone. But Paul promises you’ll be hearing a lot more from it.

“It’s basically been a committee that’s dealt with commemorative coins. I’m going to deal with monetary policy,” he said.

Paul doesn’t think he’ll be able to move his proposal to eliminate the Fed, or to allow Americans to use gold instead of paper money as currency. But he said he does intend to use his new position as “a mini-bully pulpit” to criticize Fed policy and call more attention to what he sees as its negative consequences....

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China says US Fed Reserve Needs G20 Approval Before Taking Future Actions

Posted on Nov 09, 2010 in Economic News

Kevin Hayden

China says G20 should monitor US Fed

China’s state media has issued a new broadside at the US Federal Reserve’s move to prime the US economy, suggesting the Group of 20 should monitor policy shifts by the US central bank.

The Xinhua news agency said in a commentary the Fed was “risking the global recovery by following its own track for economic revival” by spending an extra $US600 billion ($A593.65 billion) buying Treasury bonds to stimulate the US economy.

“There is an urgent need for the G20 … to set up a new mechanism that effectively monitors the issuer of the international reserve currency, especially when it is not able to carry out responsible currency policies,” Xinhua said.

“It is necessary for the issuer of the international reserve currency to report to and communicate with the G20 group before it makes major policy shifts.”

Hayden’s Note:

So now China is demanding the Federal Reserve confer and seek approval with the G20 – a global governing body – before making financial decisions, good or bad.  Hmmm, maybe this is what was planned all along. ...

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Dallas Fed Admits, “For the next 8 months, the Nation’s Central bank will be monetizing the Federal Debt”

Posted on Nov 08, 2010 in Economic News, Federal Reserve & Bankers

Kevin Hayden


Dallas Fed Admits “For The Next Eight Months, The Nation’s Central Bank Will Be Monetizing The Federal Debt”, Opens Door To Bernanke Impeachment

Time to begin the Chairman impeachment proceedings. It is one thing for blogs like Zero Hedge to argue (rightly) for the past 1.5 years that the Fed’s actions in the Treasury space are nothing but direct debt monetizations. After all, one can always argue semantics, as some peers have enjoyed doing in the past. Yet when an actual Federal Reserve Fed President, in this case Dallas Fed’s Dick Fisher states it without any trace of hiding the underlying intent, then things get a little serious. To wit: “For the next eight months, the nation’s central bank will be monetizing the federal debt.” It gets worse: even though Fisher realizes that what he is doing is unconstitutional, he also admits that the Fed’s actions are now is effectively a policy tool: “Here is the message: The Fed is going out of its way to be a good citizen. It is time for the Congress to do the same....

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Ron Paul and The Judge Discuss Bringing Down the Federal Reserve

Posted on Nov 06, 2010 in Featured Articles, Federal Reserve & Bankers, Political Issues

Kevin Hayden

Taken in part from Paul Joseph Watson –

The blame for this financial turmoil can be laid firmly at the feet of Ben Bernanke, acting at the behest of the Fed’s owners, who having promised in June last year that they would not monetize the debt of the U.S. government.  They have now embarked upon a “mad experiment” that will precipitate “the collapse of the US dollar paper standard,” as CLSA’s Chris Wood describes it.

As the Honorable Louis McFadden, Chairman of the House Banking and Currency Committee, warned in 1933, the Fed does not care that it is killing the dollar because its role is to represent the interests of its international owners and its Wall Street cronies, not the American people.

“Some people think that the Federal Reserve Banks are United States Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders,” said McFadden.

So while the happy clappers on Wall Street are drunkenly celebrating the fact that their artificially inflated stock market is surging solely as a result of the value of the dollar being eviscerated, Main Street is hunkering down for a long winter, beset by worries about hyperinflation, rising food prices and gas price hikes, as oil follows gold’s meteoric rise, again solely as a result of the Fed’s decision to debase the greenback....

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Ron Paul Vows Renewed Effort to Audit the Fed and the IMF

Posted on Nov 05, 2010 in Political Issues

Source: 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....

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9 Reasons Why Quantitative Easing Is Bad For The U.S. Economy

Posted on Nov 04, 2010 in Economic News

Source: BlackListed News

By Michael Snyder 

Buckle up and hold on – a new round of quantitative easing is here and things could start getting very ugly in the financial world over the coming months.  The truth is that many economists fear that an out of control Federal Reserve is “crossing the Rubicon” by announcing another wave of quantitative easing.  Have we now reached a point where the Federal Reserve is simply going to fire up the printing presses and shower massive wads of cash into the financial system whenever the U.S. economy is not growing fast enough?  If so, what does the mean for inflation, the stability of the world financial system and the future of the U.S. dollar?  The Fed says that the plan is to purchase $600 billion of U.S. Treasury securities by the middle of 2011.  In addition, the Federal Reserve has announced that it will be “reinvesting” an additional $250 billion to $300 billion from the proceeds of its mortgage portfolio in U.S. Treasury securities over the same time period.  So that is a total injection of about $900 billion. ...

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QE2 – The Day After, Silver Breaks $26 on the Heels of a RICO Lawsuit & High Grade Monetary Heroin

Posted on Nov 04, 2010 in Economic News, Featured Articles

Kevin Hayden

Gold and Silver are moving like a freight train today.  Silver is sitting at $26.33 currently with no signs of slowing down and Gold is about to break $1,400.

QE2 – The Day After: Entire World Blasts Deranged Madman’s Uncheckable Insanity

Yesterday’s Ben Bernanke penned an Op-Ed in which he essentially said: “I am doing whatever I interpret my mandate to be, which right now means only thing: Dow 36,000. I am only accountable to the private bank that is the Federal Reserve, a few Wall Street CEOs, and no one else. Congress has no power over me. Try to stop me.” And while the stock market is so far in love with this exhibition of outright hubris which promises record bonuses even as a record number of Americans subsist on foodstamps and real, not BLS, unemployment is over 20%, putting the Chairman in a long-overdue strait jacket will ultimately require an outright clash between those who still believe in that piece paper called the constitution and the kleptocratic cartel to whom the trade-off between a senior bond impairment and their first born is never all that clear....

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Ron Paul vs Ben Bernanke, How to Create $850 Billion from Thin Air and GM’s IPO

Posted on Nov 03, 2010 in Economic News, Federal Reserve & Bankers

 Kevin Hayden

Ron Paul To Chair Monetary Policy Subcommittee

Here is why an open-ended QE2 may be a very moot point: Slate reports that Ron Paul, Ben Bernanke’s greatest nemesis, will chair the all important monetary policy subcommittee. In other words, Bernanke vs Paul theater will soon be a weekly feature. Too bad Alan Grayson will be no longer present.

And now back to the popcorn.


GM Files 500 Page Paperweight-cum-Prospectus, Hopes To Sell $10 Billion In Stock To Hapless Lemmings

GM has filed its IPO prospectus. At 276 pages, 240 F-pages, and 53-A pages, it is just slightly shorter than the entire text of healthcare reform. And since the fate of ponzi crony capitalism rest on the successful pricing of this dogshit, every single underwriter in the world (20 banks) is a participant, with Morgan Stanley lead left. In a nutshell, Government motors hopes to sell 365 million shares, with an expected price of $26-29/share. Now if only GM could focus on making good cars as much as they care about paying lawyers millions for writing the biggest paperweight in history, all would be well....

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The Fraud Started at the Very Top

Posted on Nov 02, 2010 in Constitutional & Liberty Issues, Economic News, Featured Articles, Federal Reserve & Bankers

Kevin Hayden

The Fraud Started At the Very Top: With Government Leaders

The government’s entire strategy now – as during the S&L crisis – is to cover up how bad things are (“the entire strategy is to keep people from getting the facts”).

But it is not only a matter of covering up fraud that has already happened. The government also created an environment which greatly encouraged fraud.

Here are just a few of many potential examples:

  • Business Week wrote on May 23, 2006:

“President George W. Bush has bestowed on his intelligence czar, John Negroponte, broad authority, in the name of national security, to excuse publicly traded companies from their usual accounting and securities-disclosure obligations.”

  • Tim Geithner was complicit in Lehman’s accounting fraud, (and see this), and pushed to pay AIG’s CDS counterparties at full value, and then to keep the deal secret. And as Robert Reich notes, Geithner was “very much in the center of the action” regarding the secret bail out of Bear Stearns without Congressional approval.

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Federal Reserve Most Brazen Of All Ponzi Schemes, US Economy Compared to a Black Hole

Posted on Oct 27, 2010 in Economic News, Federal Reserve & Bankers

Source: Zero Hedge

Bill Gross Calls Fed “Most Brazen” Of All Ponzi Schemes, Says 30 Year Bond Market Is Ending, Compares US Economy To Black Hole

Whatever the conclusion, not only investors, but the American people should recognize that Wednesday, even more than Tuesday, represents a critical inflection point in determining our future prosperity. Of course we’ve tried it before, most recently in the aftermath of the Lehman crisis, during which the Fed wrote $1.5 trillion or so in “checks” to purchase Agency mortgages and a smattering of Treasuries. It might seem a tad dramatic then, to label QEII as “critical,” sort of like those airport hucksters, I suppose, that sold whale blubber for a living. But two years ago, there was the implicit assumption that the U.S. and its associated G-7 economies needed just an espresso or perhaps an Adderall or two to get back to normal.

The Fed’s second round of QE, therefore, more closely resembles an attempted hypodermic straight to the economy’s heart than its mood elevator counterpart of 2009. If QEII cannot reflate capital markets, if it can’t produce 2% inflation and an assumed reduction of unemployment rates back towards historical levels, then it will be a long, painful slog back to prosperity....

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Bernanke Plans on Inflation, Treasuries Sell at Negative Yield and China Accuses US of Dollar Printing

Posted on Oct 26, 2010 in Economic News, Federal Reserve & Bankers

Kevin Hayden


Bernanke Asset Purchases Risk Unleashing 1970s Inflation Genie

For the second time since he became chairman in 2006, Ben S. Bernanke is leading the Federal Reserve into uncharted monetary territory.

Bernanke next week is likely to preside over a decision to launch another round of large-scale asset purchases after deploying $1.7 trillion to pull the economy out of the financial crisis, comments from policy makers over the past week indicate. This time, with interest rates already near zero, the Fed will be aiming to increase the rate of inflation and reduce the cost of borrowing in real terms. The goal is to unlock consumer spending and jump-start an economy that’s growing too slowly to push unemployment lower.

Estimates for the ultimate size of the asset-purchase program range from $1 trillion at Bank of America-Merrill Lynch Global Research to $2 trillion at Goldman Sachs Group Inc., with economists at both firms agreeing the Fed will likely start by announcing $500 billion after the Nov. 2-3 meeting. The danger is that once the Fed kindles price increases, inflation will be difficult to control....

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France to Run Out of Fuel as Protests Escalate, Bernanke’s Latest Moves and Violent Sell-off in the Stock Market

Posted on Oct 18, 2010 in Economic News, Federal Reserve & Bankers

Kevin Hayden


France to Run Out of Fuel in Days as Strikes Escalate

Petrol pumps could run dry in France by Wednesday, experts warned yesterday, as the stand-off over pension reforms reached crisis point.  Striking workers continued to block the Fos-Lavera fuel terminal near Marseille, where 61 ships and 47 petrol tankers are unable to offload.

Airlines advised pilots to refuel abroad and UFIP, the country’s oil industry association, said that if strikes continued at all 12 of France’s refineries, then national shortages would follow.

“We ran out of gas yesterday already. There’s nothing left,” said Alpha Sysavane, a worker at a BP station in Paris. “All we have left are a few litres of diesel fuel.”

One motorist from a village near Fontainbleau said she had driven 30 miles to Paris in order to buy fuel. “At home, the filling stations are closed,” said Emilia Scoubel (30), an office worker.

On Saturday, more than 825,000 protesters hit the streets in the fifth such demonstrations in a little over a month, though the government suggested that the movement was losing steam. ...

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Future Corn Rations, Continued French Protests & Poverty in the Suburbs

Posted on Oct 17, 2010 in Economic News, Federal Reserve & Bankers

Kevin Hayden


Bank of America Downgraded by Bonds Market: Junk

Bondholders are penalizing Bank of America Corp. the most of any of the largest U.S. financial firms as the investigation into the foreclosure crisis expands.

Credit-default swaps on the country’s largest bank by assets rose above those of its peers by a record margin, according to data provider CMA. The contracts, which imply Bank of America has lost its investment-grade rating, exceed Citigroup Inc.’s by the most ever and surpassed Morgan Stanley’s this week for the first time in a year.

Attorneys general from all 50 states joined to open an investigation into whether lenders and mortgage companies falsified documents as they sought to repossess homes.


How High Will Corn Prices Go Before Usage is Rationed?

Panic at the pumps: French motorists swamp petrol stations

US Cities Face Half a Trillion Dollars of Pension Deficits

Dollar Keeps Falling As Investors Await Fed Action


Swazi Salaries ‘can’t be paid’

Swaziland’s government may run out of money to pay government employees before the end of the financial year if no funding is forthcoming from international finance institutions, various role players in the country said this week....

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