Tag Archives: Federal Reserve

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Vytautas

Time To Shut Down The US Federal Reserve?

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You can read this article at:

http://www.patriotthoughts.com/2010/07/16/time-to-shut-down-the-us-federal-reserve/

Thank You, Vytautas

USDA Reports Food Shortages

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You can read this article at:

http://www.patriotthoughts.com/2010/07/12/usda-reports-food-shortages/

Thank You, Vytautas

7.9 Million Jobs Lost, Many Forever

The Obama and the Democrats have killed off 7.9 million jobs. It’s increasingly likely that many will never come back.

The government jobs report issued Friday shows that businesses have slowed their pace of hiring to a relative trickle.

“The job losses during the Great Recession were so off the chart, that even though we’ve gained about 600,000 private sector jobs back, we’ve got nearly 8 million jobs to go,” said Lakshman Achuthan, managing director of Economic Cycle Research Institute.

One of the big problems is that many of workers who have lost jobs were in industries that are not likely to recover their former strength.

“We’ve got the wrong people in the wrong place with the wrong skills,” said John Silvia, chief economist with Wells Fargo Securities. He said construction workers in California or Florida and auto workers in Michigan will have to relocate and retrain to find new jobs.

“As many as half the people who lost their jobs will have to find something else to do,” said Silvia.

Home building lost nearly 1 million jobs since the start of 2008, while the auto industry shed 300,000 manufacturing jobs due to plant closings. The finance and real estate sectors lost more than 500,000 jobs.

“Those are the areas with the biggest bubbles, and so it’s not a surprise that those are the areas with some of the biggest job losses,” said Scot Melland, CEO of Dice Holdings, a provider of specialized career web sites. “Many of the jobs we lost are never coming back.”

The nation’s working-age population grows by about 150,000 people a month. So the hole is deeper than it looks.

It would take the creation of 10.6 million jobs immediately for the same percentage of the population to be working as was the case three years ago.

Of course, it will take time to create jobs. If it takes three years, more than 3.5 million additional jobs will be needed because of continued population growth.

The unemployment rate is currently 9.5%. A return to the 4.4% rate is out of reach. The Federal Reserve, in its latest forecast, predicts that unemployment will stay around 7% or above through 2012, and in the 5% to 5.3% range in the long-run.

If You Are Looking For A Way To Make Money In This Lousy Economy, Full-Time or Part-Time, Please Check This Out

Bernanke Created Half of Our Money Supply

“The U.S. turned 234 years old yesterday, and yet over half of the nation’s money supply was created since Helicopter Ben took over the flight controls four years ago. No wonder gold is in a full fledged bull market . . .”

-David A. Rosenberg  Chief Economist & Strategist
Gluskin Sheff + Associates Inc.

http://www.ritholtz.com/blog/2010/07/half-of-234-years-worth/

Dallas Fed Chairman: White House & Congress “Dead Wrong” on Financial Reform

Richard Fisher, president of the Dallas Federal Reserve Bank, has long been a proponent of serious financial sector reform. As a former commercial banker, he sees quite clearly that the legislation now headed into “reconciliation” between House and Senate versions amounts to very little. He also knows that pounding away repeatedly on this theme is the best way to influence his colleagues within the Fed and across the policy community more broadly.

He is now taking his game to a new, higher level. Couched in the diplomatic language of senior officials, his speech on June 3 to the SW Graduate School of Banking was both a carefully calibrated assault on the administration’s general “softly, softly” approach to the big banks and a direct refutation of arguments put forward by Larry Summers in particular.

As the title of Mr. Fisher’s speech implies, if the legislation is not real financial reform (and it is not, according to him), then our current policy trajectory amounts to facilitating further rounds of financial dementia.

You Own the Red Roof Inn, Thanks to the Fed

Explanation of Derivative Markets

Heidi is the proprietor of a bar in Detroit . She realizes that virtually all of her customers are unemployed alcoholics and, as such, can no longer afford to patronize her bar. To solve this problem, she comes up with a new marketing plan that allows her customers to drink now, but pay later.

Heidi keeps track of the drinks consumed on a ledger (thereby granting the customers’ loans). Word gets around about Heidi’s “drink now, pay later” marketing strategy and, as a result, increasing numbers of customers flood into Heidi’s bar. Soon she has the largest sales volume for any bar in  Detroit .

By providing her customers freedom from immediate payment demands, Heidi gets no resistance when, at regular intervals, she substantially increases her prices for wine and beer, the most consumed beverages. Consequently, Heidi’s gross sales volume increases massively.

A young and dynamic vice-president at the local bank recognizes that these customer debts constitute valuable future assets and increases Heidi’s borrowing limit. He sees no reason for any undue concern, since he has the debts of the unemployed alcoholics as collateral.

At the bank’s corporate headquarters, expert traders figure a way to make huge commissions, and transform these customer loans into DRINKBONDS, ALKIBONDS and PUKEBONDS. These securities are then bundled and traded on international security markets.

Naive investors don’t really understand that the securities being sold to them as AAA secured bonds are really the debts of unemployed alcoholics. Nevertheless, the bond prices continuously climb, and the securities soon become the hottest-selling items for some of the nation’s leading brokerage houses.

One day, even though the bond prices are still climbing, a risk manager at the original local bank decides that the time has come to demand payment on the debts incurred by the drinkers at Heidi’s bar. He so informs Heidi.

Heidi then demands payment from her alcoholic patrons, but being unemployed alcoholics they cannot pay back their drinking debts. Since Heidi cannot fulfill her loan obligations she is forced into bankruptcy. The bar closes and the eleven employees lose their jobs.

Overnight, DRINKBONDS, ALKIBONDS and PUKEBONDS drop in price by 90%. The collapsed bond asset value destroys the banks liquidity and prevents it from issuing new loans, thus freezing credit and economic activity in the community.The suppliers of Heidi’s bar had granted her generous payment extensions and had invested their firms’ pension funds in the various BOND securities. They find they are now faced with having to write off her bad debt and with losing over 90% of the presumed value of the bonds. Her wine supplier also claims bankruptcy, closing the doors on a family business that had endured for three generations, her beer supplier is taken over by a competitor, who immediately closes the local plant and lays off 150 workers.

Fortunately though, the bank, the brokerage houses and their respective executives are saved and bailed out by a multi-billion dollar no-strings attached cash infusion from their cronies in Government.. The funds required for this bailout are obtained by new taxes levied on employed, middle-class, non-drinkers who have never been in Heidi’s bar.

Now do you understand?

Ron Paul: Inside Sources Told Me Fed Is Panicking At Mass Awakening

Appearing on The Alex Jones Show yesterday, Congressman Ron Paul revealed that through his inside sources he had learned that the people who control the Federal Reserve are panicking about the fact that Americans are waking up to the fact that the U.S. is controlled by the central bank.

“I had some information passed on to me, sort of inside information, somebody who knew somebody who was well tuned to the people at the Federal Reserve – and they said they are really really concerned about our movement to expose the Fed for what they’re doing,” said Paul, adding, “What they’re upset or worried about is the fact that more and more people are aware of the Federal Reserve now like never before,” explaining that exposure will lead to change and a reform of the Federal Reserve.

Paul attributed the success of the freedom movement in the last decade to the growing awareness of the power that the Federal Reserve wields over America.

“Even those who defend the Fed are very frightened about it,” added Paul, noting that a growing number of Americans were knowledgeable about the central bank despite the fact that the subject is rarely covered by the education system.

Host Jones made reference to a recent Council on Foreign Relations speech by Trilateral Commission and regular Bilderberg attendee Zbigniew Brzezinski in which he warned that a “global political awakening,” in combination with infighting amongst the elite, was threatening to derail the move towards a one world government.

“I hope he has some real reasons to be worried about that,” responded the Congressman.

Despite the Senate voting down Ron Paul’s version of the audit the fed bill earlier this month, a weaker version was passed which will mandate the central bank to reveal which financial institutions received bailout money at the peak of the economic crisis, something the Fed has desperately tried to avoid divulging.

Paul expressed his own disappointment at the watered down bill, but his colleague Congressman Alan Grayson expressed confidence that the stronger provisions of the original House amendment could be added in Committee, ensuring the Federal Reserve doesn’t get off the hook, as Congressman Paul has warned.

Paul told host Jones that people should look into which Senators did not vote for the original audit the Fed bill, characterizing the weakened version as “A bailout for the system and for the Federal Reserve.”

Paul said he was going to try and influence the bill in conference by adding stronger provisions.

“I think right now the cards are stacked against us but we’re going to keep fighting because the more attention we get and the more people know, I ink we can be proud of how far we’ve gotten already,” said Paul.

http://www.infowars.com/ron-paul-inside-sources-told-me-fed-is-panicking-at-mass-awakening/

Ron Paul Discusses The Political Re-Alignment on Alex Jones

Part One

Part Two