Federal Reserve System

Clueless Ben?

The following is an excerpt from Gary North’s article on Clueless Ben?: Bernanke is facing a slowing economy. All those green shoots he said he could see in 2009 have begun to die. Unemployment remains high. It shows no sign of coming down. But consumer prices have been flat, which allows him some breathing room. The adjusted monetary base in [...]

Dracula Government Meets Its Nemesis

There is no greater scam than that being perpetuated by fiat money. It is plausible that the gold market might be manipulated because of its critical importance to the current economic crisis. Gold is to Central Bankers and governments as The Cross was to Dracula. It threatens their existence. Before governments got into the state of bankruptcy, gold hindered them [...]

Crowding Out Your Future

“Crowding out” is an effect claimed to occur when governments run deficits and have to borrow to finance the deficits. It refers to the government using funds via borrowing that otherwise would go to private borrowers. Hence, they are “crowding out” the private borrowers. In normal times, when government deficits are small relative to the economy, crowding out probably has [...]

Tough Guy Bernanke Blows Smoke

Tough Guy Bernanke Blows Smoke Fed Chairman Ben Bernanke appeared before Congress this week wearing his “bad guy” face. I did not watch his testimony either day. Apparently, based on news reports and blogs, nothing of significance happened on the second day. The Washington Times reported on Bernanke’s Wednesday testimony: With uncharacteristic bluntness, Federal Reserve Chairman Ben S. Bernanke warned [...]

FED Bunkum

A Wall Street Journal article reported: “The Treasury said it will borrow $200 billion and leave the cash proceeds on deposit with the Federal Reserve, reviving a program that will make it easier for the Fed to raise interest rates when the time comes.” I had to read that sentence several times to try and understand what it said. I [...]

History: Monetary Cranks

Image via Wikipedia “Monetary Crank” was a derogatory term used in the past to refer to crazy monetary theories and/or schemes. Its use has fallen out of favor, yet its applicability today is as relevant as it was in the past. Unfortunately what used to be subsumed under the term, now appears to be considered normal monetary policy. Lawrence Reed [...]

The Fed Feints

Great hoopla over the Federal Reserve’s surprise decision to raise the discount rate 0.25 % fills the media and the markets. Pundits discuss earnestly the spice has been added to the tea leaves. Barry Ritholtz lists three possible motivations behind the Fed’s move: Response to political pressures; Proof the Economy is improving; Inevitable ending of extraordinary accommodation. The relevance of [...]

Free Markets Don’t End Like This

“My long view for the US is high inflation which will not show up in the government’s fraudulent statistics, along with a declining standard of living, increasing decay and ultimately leading to chaos, societal and government collapse in the US within a decade or two, maybe sooner.” Craig Harris The following article will seem extreme to some. The above quote [...]

John Williams Warns of Imminent Hyperinflation

One of the better economic analysts is John Williams at Shadowstats.com. When he speaks, one should listen carefully. He has just done so: The U.S. economic and systemic solvency crises of the last two years are just precursors to a Great Collapse: a hyperinflationary great depression. Such will reflect a complete collapse in the purchasing power of the U.S. dollar, [...]

Grownups, Principles and Revolt

Are the adults starting to stir? In a post entitled Volcker a Tipping Point? written on September 21, 2009, I speculated whether or not a particularly influential grownup, Paul Volcker, was breaking with the Obama Administration. On subsequent occasions, Volcker expressed various degrees of disagreement/dissatisfaction. According to Barry Ritholtz: “Mr. Volcker has become quite vocal lately. Be sure to check [...]

Bernanke Takes Heat Again

Bernanke under fire from Jim DeMint. Both Bunning and DeMint excoriated Bernanke. The pushback against Bernanke’s renomination comes from both sides of the aisle. At this point, that renomination may be in doubt.