Tag Archives | Federal Reserve

Federal Reserve Smackdown: Bunning vs Bernanke

I spent a good part of today driving from New York to Philadelphia and back. It was a fantastic opportunity to listen to Ben Bernanke being grilled by the United States Senate and struggling to defend his record as Chairman of the Federal Reserve during a period that has been likened to the Great Depression. The very best part was a blistering attack on Bernanke by Senator Jim Bunning, a man who is definitely not afraid to tell it like it is. Respect Mr. Bunning! Felix Salmon obviously enjoyed it too, writing on his Reuters blog:
I wonder what it was like to be Ben Bernanke today, on the receiving end of an absolute lashing from Senator Jim Bunning. Here’s a taster:
Chairman Greenspan’s attitude toward regulating banks was much like his attitude toward consumer protection. Instead of close supervision of the biggest and most dangerous banks, he ignored the growing balance sheets and increasing risk. You did no better. In fact, under your watch every one of the major banks failed or would have failed if you did not bail them out.
Bunning then quoted Bernanke’s own words from his own confirmation hearing, when he said that “no bank is too big to fail”. No, Bunning wasn’t laughing either:
Rather than making management, shareholders, and debt holders feel the consequences of their risk-taking, you bailed them out. In short, you are the definition of moral hazard.
This is the sort of parliamentary rhetoric which we Brits are quite used to, but which is electrifying in the normally-staid confines of the US Senate. Good for Bunning for taking the gloves off.
Amen.
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Audit The Fed Effort Wins Support From An Unusual Coalition

fed_sealvia HuffPo:

“An unusual coalition of progressive economists, labor leaders, and bloggers has decided to fight back against a congressional amendment that would allow the Federal Reserve to continue operating in secrecy.”

November 18, 2009

House Financial Services Committee
2129 Rayburn House Office Building
Washington, D.C. 20515

Dear Chairman Frank, Ranking Member Bachus, and Members of the Committee,

During the past two years, the Federal Reserve dramatically changed its operating procedures. Instead of simply setting interest rates to influence macroeconomic conditions, it rapidly acquired a wide variety of private assets and extended massive secret bailouts to major financial institutions.

There are still many questions about the Fed’s behavior in these new activities, including potential cronyism and favoritism in its distribution of many trillions of dollars. As the Special Inspector General for the Troubled Assets Relief Program recently wrote about their bailout of AIG, the Fed’s “strategy to pursue concessions from counterparties offered little opportunity for success, even in light of the willingness of one counterparty to agree to concessions.”

The Federal Reserve balance sheet expanded to more than $2 trillion, along with implied and explicit backstops to Wall Street firms that could cost even more.

Read the rest
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“Bones” in the Money Pit

By Robert Singer

“Things do not happen. Things are made to happen.”—JFK.

Our consumer society didn’t just happen, it was planned. Not in 1910, or 1954, but in the year 1832, the year William Huntington Russell and fellow classmate Alphonso Taft at Yale University founded the Skull and Bones society, a branch of the Bavarian Illuminati.

According to most of the available biographical data on its early members, the money required to sustain the secret order’s campus affairs and its broader role in placing its members into key positions of influence upon their graduation from Yale was derived from the opium trade in the Far East.

Members, known as “Bonesmen,” include Rockefeller, Kuhn, Loeb and Morgan all connected to the House of Rothschild’s global financial empire. They are founders of the Federal Reserve, the Bank of England, France, and Germany or, for that matter, any central bank anywhere in the world.… Read the rest

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Silver, But No Silver Lining

By Robert Singer

The end of our consumer society is on the horizon, which should be no surprise to anyone who took Economics 101. Do we really expect to spend our way out of this mess by buying and selling each other useless cheap stuff from China?

As the financial collapse gathers steam, gold and silver oracles like Butler, Friedman, Morgan and Turk who have been predicting for years the launch of the price of silver to the moon will see their prophecy fulfilled, but a celebration is not in order.

Being wealthy during the last 60 years of unprecedented prosperity at the expense of the Third World and the environment is one thing, but profiting from a bull market in silver when millions of hungry Americans are living in tent-cities next door is quite another.

A default at the Comex that will ignite the explosion in the price of silver and gold is in progress.… Read the rest

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Meat, Milk and Motors: The New China Syndrome

By Robert Singer

August 21, theatres around the nation screened the documentary I.O.U.S.A. and a live discussion with America’s most notable financial leaders and policy experts, including Warren Buffett; William Niskanen, chairman of the Cato Institute; Pete Peterson, senior chairman of The Blackstone Group and former U.S. Comptroller General, Dave Walker.

August 25, Mr. William Niskanen, CEO of the Cato Institute, confirmed his remarks on the I.O.U.S.A. post-broadcast panel discussion.

Dear Mr. Singer,

I do not have a tape of my remarks last Thursday evening. As I remember, however, I expressed being puzzled why the central banks of China, Japan, and South Korea have continued to invest so much in U.S. Treasury securities.  For these central banks have earned a negative real return on these securities, for which the interest rate has been lower than the depreciation of the dollar.

I would value your judgment about this puzzle… William A. Niskanen

China is a “Hot Topic” at the nationally and internationally recognized Center for Trade Policy at Mr.… Read the rest

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2008 Financial Collapse: An Inside Job

By Robert Singer

Maybe it’s the smoke from Mt. Vesuvius that keeps Arianna Huffington and the financial community from seeing that the economic collapse has nothing to do with the Fed “missing” the warning signs leading up to the October meltdown.

“Things do not happen. Things are made to happen.”   John F. Kennedy

The Fed didn’t miss anything; the October meltdown was an inside job.

Capitalism never made sense

Professor Ebeling, the Ludwig von Mises professor of Economics at Hillsdale College, understood something was wrong when he wrote: “the perverse development and evolution of historical capitalism, the institutions necessary for a truly free-market economy have been either undermined or prevented from emerging.”

But when he claimed, “it is the principles and the meaning of a free-market economy that must be rediscovered” in order to overcome the burden of historical capitalism and save liberty, he should have written that principles must be rediscovered in order to prevent the planet from attempted murder (ecocide).… Read the rest

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Who is “Rewriting the Rules of American ‘Capitalism’”?

“We don’t want your tired, poor, huddled masses yearning to trash the planet” The Federal Reserve, 2009.

By Robert Singer

Having trouble understanding the events since the October 2008 financial crisis?

Any of this sound familiar:

  • Banks hoarding their TARP funds
  • Gas prices going up when they should be going down
  • Automobile dealerships closed without regard to profitability
  • Health Care reform: The Kevorkian is out of jail early

What’s going on?

Bush Sr. said our way of life wasn’t negotiable in 1992 but as of October 2008, it’s all over but the weeping and gnashing of teeth.

And in one of those coincidences that don’t happen very often: like all four financial meltdowns in history occurring in October, the October 2008 financial meltdown guaranteed Barack Obama, an unknown senator 4 years ago, would be the 44th president of the United States. [1]

October 2008, to anyone not in denial, marked the last day the men behind the Federal Reserve, all connected to the House of Rothschild, gave up what’s left of their wealth so the huddled middle class can trash the planet.… Read the rest

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