Tag Archives | Federal Reserve
Does a Texas legislative session resemble a Yosemite Sam Looney Toons clip? Because that’s what I’m picturing. The Fort Worth Star-Telegram reports:
Call it the Rick Perry gold rush: The governor wants to bring the state’s gold reserves back from a New York vault to Texas. A bill from Rep. Giovanni Capriglione would establish the Texas Bullion Depository, a secure state-based bank to house $1 billion worth of gold bars owned by the University of Texas Investment Management Co. and stored by the Federal Reserve.
The idea isn’t entirely new. Gold-standard-backing Ron Paul has raised repeated concerns about the safety of states’ gold supplies. “If you think gold is a hedge, or a protection, you always want it as close to the individual and the entity as possible,” Paul told The Texas Tribune on Thursday.
“If we own it,” Perry said, “It’s not someone else’s determination whether we can take possession of it back or not.”
Ron Paul is going to be asking the “Fed Question” until the day he dies. Probably the day after too. But will anyone else pick up the mantle? From the Wall Street Journal:
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It has been a tough summer and fall for Ron Paul.
In June, he conceded the Republican presidential nomination. In August, he turned down a chance to speak at the Republican convention when he reportedly was told he would have to fully endorse Mitt Romney. A video tribute to Mr. Paul ran instead.
His delegates were barred from and accused of disrupting the party proceedings.
And now through three presidential debates, the Texas congressman’s pet issue, monetary policy, has been ignored. “They don’t want to talk about it,” Mr. Paul said in an interview Tuesday.
He added sarcastically: “It’s not important enough. It’s only half of every single transaction in the world.”
You would think that even if Ron Paul the presidential candidate has failed, Ron Paul the Fed critic would be alive and well, front and center in the national debate.
The digital rag Business Insider (run by Henry Blodget, the unabashed Wall Street Internet booster) goes for more SEO-friendly conspiracy bashing:
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The economy has sparked a wide variety of truly bizarre conspiracy theories. Despite the fact that they have no basis in truth, people continue to believe them with almost religious zeal.
The internet has given them a wider forum and audience, and has proved to be fertile ground for these ideas to spread.
These are the myths, conspiracy theories, and flat out falsehoods that just won’t die.
The Federal Reserve is a private corporation run for the profit of its shareholder banks.
Origin: This one’s been kicking around almost since the creation of the Federal Reserve in 1913. It’s the subject of a three hour documentary called “The Money Masters”.
The reality: Nationally chartered banks do hold stock in their regional Federal Reserve Banks, and receive a small portion (6 percent of their stock) of the profits of their regional banks, which is presumably the origin of this theory.
Via Yahoo! News:
While Ron Paul may not be the next president, he can chalk up one victory this year. The Texas Republican’s “audit the fed” bill has passed the house. Needless to say, Federal Reserve Chairman Ben Bernanke and his allies are not pleased:
“This bill would … jeopardize the Fed’s independence by subjecting its decisions on interest rates and monetary policy to GAO audit,” said House Minority Whip Steny Hoyer, a Democrat from Maryland. “I agree with Chairman Bernanke that congressional review of the Fed’s monetary policy decisions would be a ‘nightmare scenario,’ especially judging by the track record of this Congress when it comes to governing effectively.”
Despite the excitement of House Republicans, Paul’s victory can probably be considered a moral one only: Democratic Senator Harry Reid described the bill as “dead on arrival” once it arrives at the Senate.
Read more at Yahoo! News:
Probably not because their regulators are any smarter or scrupulous than those in the U.S. – more likely because they’re relatively powerless to conceal them. From Caroline Salas Gage and Joshua Zumbrun at Bloomberg:
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The Federal Reserve Bank of New York was aware of potential issues involving Barclays Plc (BARC) and the London interbank offered rate after the financial crisis began in 2007, according to a statement from the district bank.
“In the context of our market monitoring following the onset of the financial crisis in late 2007, involving thousands of calls and e-mails with market participants over a period of many months, we received occasional anecdotal reports from Barclays of problems with Libor,” New York Fed spokeswoman Andrea Priest said in an e-mailed statement.
“In the spring of 2008, following the failure of Bear Stearns and shortly before the first media report on the subject, we made further inquiry of Barclays as to how Libor submissions were being conducted,” the statement said.