This really shows the power of the Federal Reserve Bank.
|Bernanke Threatens Economic Collapse If Fed Audited|
Aaron Dykes, Friday, June 26, 2009
Federal Reserve chairman Ben Bernanke unleashed an alarming veiled threat of financial terrorism when he was questioned by Rep. Duncan on Thursday about his response to the fact that a majority of Congress co-sponsoring Ron Paul's H.R. 1207 bill to audit the Federal Reserve.
Bernanke clearly regarded the bill's intent as hostile to the institution he represents:
"My concern about the legislation is that if the GAO is auditing not only the operational aspects of the programs and the details of the programs but making judgments about our policy decisions would effectively be a takeover of policy by the Congress and a repudiation of the Federal Reserve would be highly destructive to the stability of the financial system, the Dollar and our national economic situation."
The brunt of Bernanke's statement is as crystal clear as a threat from a common street thug- back off from the Fed, or the economy gets it.
The chairman clearly implies that any attempt to restore monetary powers constitutionally granted to the Congress would be seen as a 'takeover" and that the defensive and "repudiated" Fed would respond destructively.
|The fact is, the history of the Federal Reserve is one that can be easily summarized with a foggy picture of Soviet-style central planning causing major booms and busts since the entity's inception in 1913. For example, in a recent WNO interview, Dr. Paul characterizes the Federal Reserve as being the creator of "the inflation of World War I, the depression of 1921, the inflation of the 1920s, and the Depression of the 1930s and on and on."|
Paul compares these events -- each caused at least in part by the Fed's loose money policies -- to the current situation with the credit and housing crises, which have put the nation into a deep recession.
The purpose of the Paul bill, now gathering support, is to help Congress and the American people prevent another financial disaster due to the Fed's constant policy of offering loose credit and encouraging bad lending practices. Plus, it will enable Congress to keep an eye on the current bailout money in order to prevent abuse and fraud.
One issue the bill's sponsors on either side of the aisle seem to be in lockstep agreement on: the government-granted monopoly over one of the most important units of currency is way too much power to leave to an unelected body that, in one swift action with the printing press, could destroy a nation.
Now the former 2008 Presidential candidate, who was characterized in the media as being insane for bringing up reform in the area of monetary policy, is finding plenty of support. Or as Dr. Paul said in his interview, all of a sudden more than a quarter century after he first proposed it, ". . . Now it is popular to get transparency of the Fed."
International Level: Ambassador / Political Participation: 595 59.5%
When Will the Recovery Begin? Never
By Robert B. Reich
This economy can't get back on track because the track we were on for years -- featuring flat or declining median wages, mounting consumer debt, and widening insecurity, not to mention increasing carbon in the atmosphere -- simply cannot be sustained. Ref. Source 7
Fed says it will end debt-buying program
WASHINGTON (AP) - The Federal Reserve is delivering a vote of confidence in the recovery, saying economic activity is "leveling out." The central bank also signaled that it would soon end one of its programs aimed at propping up the economy. The Fed said it would gradually slow the pace of its program to buy Treasury securities so that it will shut down at the end of October, versus September. Ref. USAToday
I hope that by then we are showing more signs of recovery. IF not I wonder if that is going to help or hurt us when they stop buying.
FR Leding Rate
WASHINGTON (AP) - The Federal Reserve on Wednesday held its bank lending rate near 0% and again pledged to keep it there for an "extended period" to foster the fragile economic recovery. The Fed also said economic activity has "continued to pick up" and that the housing market also has grown stronger, a key ingredient to a sustained recovery. Ref. USAToday
The Fed is Steering the Economy into Deflation
By Mike Whitney
It's a political calculation that will keep unemployment high, increase excess capacity, and deepen the recession. C.P.I. Continues to fall, bank lending is down 4 percent year-over-year, housing prices are slipping, business investment is off, and consumer credit continues to shrink. Ref. Source 7