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RedditIn just 10 months, the Federal Reserve has handed trillions of taxpayer dollars to the banks without telling taxpayers who got the money and whether we'll ever get it back. The Fed colluded with the banks to inflate bubbles and helped spark the biggest crash since the Great Depression. Since then it has been funding billion dollar CEO bonuses for the banks that sit on their boards of directors.
Moreover, in some important respects, the Fed seems to not even know what it's doing itself, as this Congressional questioning of Federal Reserve Inspector General Elizabeth Coleman seems to suggest.
While the Fed operates in virtual secret and opposes legislation that would audit their performance, Treasury Secretary Tim Geithner is proposing legislation to expand the powers of the Fed by making the organization the "supercop" for system-wide risk throughout the economy. This is exactly the wrong approach. In order to be accountable to the public which it theoretically serves, the Fed must be reformed, not given dramatic new powers.
That's the message of a new campaign from A New Way Forward, a grassroots group determined to spark a fundamental re-making of Wall Street. I last wrote about ANWF back in April on the cusp of the group's national protests calling for an alternative bailout that would break up the financial oligarchy.
Now, ANWF is sponsoring a "Say No to New Powers for the Fed" petition. Add your name, learn more about the alternatives to the financial status quo, and tell all your friends about the positive solutions.
PS: If you have extra time on your hands and want to follow me on Twitter -- a micro-blog -- click here. You'll find (slightly) more personal posts, breaking news, basketball and lots of links.
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Peter Rothberg
Your guide to expressing informed dissent to war, racism, sexism, environmental degradation and market-based solutions to social problems.
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We may be in agreement Peter.
I'd love to see Congress repeal the authority for the existence of the Fed and return control of our monetary system to the US government.
Posted by antisocialist at 09/11/2009 @ 11:47am
I believe the Federal Reserve is a bad actor here, and should not be granted any further powers. History speaks volumes about the underhanded way in which this "Private Bank" was created. It is controlled by the wealthiest people on Earth, some not even US citizens, should be disbanded. It is not necessary for our country to have a Fed. President Andrew Jackson came the closest in history to actually doing away with this leech-like entity.
Posted by stylenease at 09/11/2009 @ 11:51am
Makes that me too, Peter!
At this very moment, and all the moments since the official launch of the the Magic Era, the Fed has been engaged in another collusion "with the banks to inflate bubbles"....it's a proven way to balance the books.
Seen what the inter. rates on money market funds have been? A pure income transfer to the banks...though I do agree they need the money; it's just that I really hate to have them do it w/my money when I wasn't in on the gravy train of loose lending forced on by Barney & Chris (meaning I haven't walked out on any of my loans).
The low-rate environment is forcing those w/liquidity, to go into hard assets....yep....I'll have to help to inflate gold, real estate, commodities, etc.....and bail before the herd.
Posted by Happy at 09/11/2009 @ 12:07pm
This is the real change we were promised, albeit unspecified.
Posted by sloper at 09/11/2009 @ 12:09pm
This is the real change we were promised, albeit unspecified.
Posted by sloper at 09/11/2009 @ 12:09pm
Gold Climbs to 18-Month High as Dollar Weakens; Silver Gains
By Halia Pavliva and Claudia Carpenter
Sept. 11 (Bloomberg) -- Gold surged to the highest price since March 2008, heading for a fourth-straight weekly gain, as a dollar slump lengthened, boosting demand for the metal as a hedge against inflation. Silver climbed to a 13-month high.
The U.S. Dollar Index, a six-currency gauge of the greenback's value, has dropped for six consecutive sessions, the longest slump since March, to an 11-month low....
"The dollar is going down because of inflation fears" and that pushes gold up, said Leonard Kaplan, the president of Prospector Asset Management...."There is too much money and everything is going up. It's not about supply and demand, it's not about common sense."
Gold futures for December delivery advanced $15.10, or 1.5 percent, to $1,011.90 an ounce at 10:45 a.m. on the New York Mercantile Exchange's Comex division, bringing this week's gain to 1.5 percent.
Earlier, the metal touched $1,013.70, the highest price for a most-active contract since March 17, 2008.....
Posted by Happy at 09/11/2009 @ 12:13pm
It is not necessary for our country to have a Fed. President Andrew Jackson came the closest in history to actually doing away with this leech-like entity.
Posted by stylenease at 09/11/2009 @ 11:51am
president jackson was 146 in 1913
Posted by frosty zoom at 09/11/2009 @ 12:17pm
gold is useless.
Posted by frosty zoom at 09/11/2009 @ 12:18pm
http://market-ticker.denninger.net/archives/1414- 2009-Labor-Day-Ponderings.....html
We must force the outstanding credit levels down to sustainable levels. This will cause a huge number of bankruptcies, especially among the financial "heavy hitting firms" on Wall Street and the pension and insurance funds of Americans as the true "value" of their so-called assets are exposed.
The problem is that there is no alternative - we squandered the ability to rebuild our safety margins over the previous 30 years, and now we're into the maw of the parabola with no remaining margin available to exploit. The longer we wait to do the right thing the worse the outcome will be, and if we wait too long we will lose our nation - literally.
History has shown that the 2000-01 recession "avoidance tactic" of more than doubling outstanding consumer credit in mortgages and increasing it by 60% in other debt while income only rose 23% during the same period bought us seven years of delay and a collapse far worse when we hit the wall - unemployment only reached 6.3% during the 00-01 recession (in 2003) while we are now at 9.7% (officially) and climbing. Consumer spending and defaults were a non-factor in 00-01 - today they are the feature of our recession.
Today we simply have no more "forward debt capacity" in our economy.
Posted by frosty zoom at 09/11/2009 @ 12:24pm
Posted by Happy at 09/11/2009 @ 12:13pm | ignore this person | warn this person
Hap - you think BO is going to extend $270 billion corporate debt guarantees (under FDIC) set to expire October 31?
Is it time to short some stocks?
Posted by OneVote at 09/11/2009 @ 1:13pm
Today we simply have no more "forward debt capacity" in our economy.
Posted by frosty zoom at 09/11/2009 @ 12:24pm | ignore this person | warn this person
Good news is that Fed (if you can believe them) has stated that they are going to stop printing money (buying Treasury debt with dollars that Treasury is printing). Bad news is going to be higher interest rates.
Posted by OneVote at 09/11/2009 @ 1:17pm
Great post Peter.
Unbelievable.
The conspiracy theory of the day is that we still have a government.
Posted by OneVote at 09/11/2009 @ 1:26pm
Posted by OneVote at 09/11/2009 @ 1:26pm |
http://www.youtube.com/watch?v=WljVyj-40Dw
Posted by snowball777 at 09/11/2009 @ 1:32pm
Posted by snowball777 at 09/11/2009 @ 1:32pm | ignore this person | warn this person
"What can a poor boy do - except to sing for a rock 'n' roll band"
Posted by OneVote at 09/11/2009 @ 2:32pm
>>>Geithner is proposing legislation to expand the powers of the Fed by making the organization the "supercop" for system-wide risk throughout the economy. This is exactly the wrong approach.<<<
I think transparency AND independence are important for the Fed, because if you are only concerned with transparency and "accountability", you may encroach on their independence through the guise of "reform". Such encroachment on Fed independence could be disastrous because then you end up with the same short-term, election cycle driven decision making that you have with Congress.
The few agencies that can afford to take the "long-term view" because of their independence should be cherished.
As for a new "super-cop" role to monitor economic risk and intervene when necessary, what group are you proposing as an alternative to the Fed to play this role, PETER ROTHBERG?
Posted by Metteyya at 09/11/2009 @ 2:33pm
Some more good news.....
The projected Fed. deficit for this FY is being reduced by the Magic Admin....due to the `recovery' of the banking sector which negates the `need' to pump in $250 Billion (of earlier-anticipated Bailout).
OV, I'd seldom preach the shorting of stocks even though it's in my repertoire....but it's not been one of my stronger suits for a long time. I tend to cover fairly quickly when I'm right (taking small gains) while not having the stomach to really tough it out those I'm wrong (but eventually right, like Google). I think one has to have, overall, a short-sellers' mindset to do well consistently.
Posted by Happy at 09/11/2009 @ 2:36pm
Posted by Happy at 09/11/2009 @ 2:36pm | ignore this person | warn this person
With all the market manipulation going on, it is a tough game to short to be sure.
BTW: BHI - $37.55/share today. Yippee!
Posted by OneVote at 09/11/2009 @ 2:42pm
Such encroachment on Fed independence could be disastrous because then you end up with the same short-term, election cycle driven decision making that you have with Congress.
Posted by Metteyya at 09/11/2009 @ 2:33pm
met,
the fed plays with interest rates EVERY election, especially when a republican is pres.
por favor.
Posted by frosty zoom at 09/11/2009 @ 2:45pm
Posted by OneVote at 09/11/2009 @ 2:32pm |
"...or steal my daddy's cue and make a livin' outta playin' pool..." - Rod Stewart
Posted by snowball777 at 09/11/2009 @ 2:50pm
I think transparency AND independence are important for the Fed, because if you are only concerned with transparency and "accountability", you may encroach on their independence through the guise of "reform". Such encroachment on Fed independence could be disastrous because then you end up with the same short-term, election cycle driven decision making that you have with Congress.
Posted by Metteyya at 09/11/2009 @ 2:33pm | ignore this person | warn this person
Oblivious to the notion that it is our fricking money.
Posted by OneVote at 09/11/2009 @ 2:50pm
"...or steal my daddy's cue and make a livin' outta playin' pool..." - Rod Stewart
Posted by snowball777 at 09/11/2009 @ 2:50pm | ignore this person | warn this person
Lol....yep!
&
Gasoline Alley
http://www.youtube.com/watch?v=Sn5j0mbhrhc
Posted by OneVote at 09/11/2009 @ 2:55pm
Posted by OneVote at 09/11/2009 @ 2:50pm
I am WITH YOU on greater transparency, but putting the Fed under the same short-term political pressure as Congress is a bad idea.
Posted by Metteyya at 09/11/2009 @ 3:06pm
Posted by OneVote at 09/11/2009 @ 2:50pm |
Yep.
C'mon, Mett...are you seriously saying that the Fed has proven themselves competent in the long-term planning department?
Note: I don't oppose the US having a central bank (I think bank runs and illiquidity suck too), but I think the Fed needs to have more oversight and input from Congress...perhaps control over their ever-expanding 'book' would be a good start.
They have no business being in regulatory roles and we DO need to have a consolidated government agency responsible for the various aspects of the economy that have, to this point, been doled out to a number of different agencies with competing jurisdictions, budgets (see how the CTFC was gutted during Dubya's reign), and degree of infiltration by insiders.
Short of the outright abolishment of the Fed, is fixing it.
Posted by snowball777 at 09/11/2009 @ 3:08pm
Here we go again! By Paul Caron, the TaxProf:
September 11, 2009
Home Office Deduction Trips Up Treasury Department Nominee
President Barack Obama's nominee for the top international post at the Treasury Department has been sidetracked by a Senate committee's investigation into her personal tax returns.
Lael Brainard, nominated in March as Undersecretary for International Affairs, is the latest Obama appointee to be tripped up by the Senate Finance Committee. Of particular concern is Ms. Brainard's use of a home-office tax deduction, according to people familiar with the inquiry.
The delay in considering her nomination has left empty a treasury position responsible for negotiating with foreign governments as the U.S. gears up for the Group of 20 summit later this month, a meeting expected to focus heavily on financial regulation and economic stimulus programs....
Treasury's top tax policy job also remains vacant after University of Southern California law professor Elizabeth Garrett withdrew her nomination for undisclosed reasons amid vetting by the finance committee....
Posted by Happy at 09/11/2009 @ 3:14pm
I am WITH YOU on greater transparency, but putting the Fed under the same short-term political pressure as Congress is a bad idea.
Posted by Metteyya at 09/11/2009 @ 3:06pm | ignore this person | warn this person
And the current lack of transparency explanations - you are buying into this?
Jesus, these guys do a "bojangles" everytime WallStreet barks. Are you kidding!
I am not convinced that their interest is our interest - sorry.
Alan Greenspan - now he wasn't beholden to political interests at all was he??
So first the bailout money was to benefit homeowners being foreclosed (didn't happen), then the bailout money was to inject liquidity so as to ease credit constraint (didn't happen), and now we find that the bailout money is being parked by bailout in recipients in Federal Reserve whom pays bailout recipients interest on taxpayer money. All that liquidity - has increased profit spreads for banks whose cost of funds has decreased dramatically (thanks to Fed flooding the market with liquidity so that cash is trash), but not translated into a commensurate decrease in lending rates for consumers. Now, I am not advocate for loose lending standards, but exactly what the hell is this money being used for? The Fed is simultaneously encouraging banks to lend and simultaneously giving them the risk free option of parking taxpayer money in interest bearing accounts which is presumably being used to prop up Treasury purchase on which the Treasury has to pay interest. You don't have at least a vague feeling that you aren't being hosed here?
Posted by OneVote at 09/11/2009 @ 3:34pm
Posted by OneVote at 09/11/2009 @ 3:34pm |
"Now, I am not advocate for loose lending standards, but exactly what the hell is this money being used for?"
Money Fight!!!
Posted by snowball777 at 09/11/2009 @ 3:53pm
Money Fight!!!
Posted by snowball777 at 09/11/2009 @ 3:53pm | ignore this person | warn this person
Ah....the storm clouds draw near. That must be why the Fed has "lent out" nearly $500 million to foreign borrowers at very cheap interest rates - something that apparently they have never done before the "Full Faith & Credit" crisis.
I think you are right. And guess who controls our currency exchange? Why, the bailout recipients of course.
Posted by OneVote at 09/11/2009 @ 4:09pm
My God...I actually agree with "LOVELIBERTY" (antisocialist)! The Fed should be dissolved by Congress. It is a creature of the private banks. But wait...your boy Obama just reappointed Bernanke (like Clinton reappointing Greenspan). Two Democrat Presidents serving the interests of the Banks. Read Willian Greider's "The Secrets of the Temple". It is the best book ever on the Fed.
Posted by philbq at 09/11/2009 @ 4:13pm
Financial reforms are long overdue. And the mega-banks have to be stabilized, they are too interconnected in the financial system we are all dependent on. After they are well, they should be broken up into smaller pieces so this cannot happen again - -- found a cool site; Balkingpoints ; incredible satellite view of earth
Posted by reg373 at 09/11/2009 @ 5:17pm
Andrew Jackson actually did kill the bank. Most other attempts proved to be lethal. Garfield announced his intent--was shot a week later. Kennedy actually took action (google his executive order: EO 11110) and we all know what happened to him. Other Presidents have acted in Big Money's best interests for their own preservation. Certainly President Obama knows this--walks a thin line between implementing progressive ideals and the reality of working under their scrutiny and at times, their direction (his largest private campaign contributor was Goldman Sachs). Big Money is and has always been the biggest and most significant enemy of We the People. The only real solution is a grass roots surge--Big Money needs to suffer a Bastille Day that can only result from a widespread awareness of their scam--regardless of political view, race, class, etc. ANWF has the right idea. We must spread the word and be outspoken about it. As the song says: "We'll never be free until we break the bank!"
Posted by sirmalcolm at 09/11/2009 @ 7:24pm
President Andrew Jackson came the closest in history to actually doing away with this leech-like entity. Posted by stylenease at 09/11/2009 @ 11:51am | ignore this person | warn this person
just absurd. 100 years separate the Fed from Jackson.
Posted by emile duBois at 09/12/2009 @ 08:30am
Posted by OneVote at 09/11/2009 @ 4:09pm |
In a sick fit of irony, you could run out and buy a ton of these AIG bonds and get back some of the money (that you gave to the government and the government gave to AIG) back to yourself!
CUSIP 026874AV9
Not sure I have the huevos for this particular 'issue'.
Posted by snowball777 at 09/12/2009 @ 08:33am
Not sure I have the huevos for this particular 'issue'.
Posted by snowball777 at 09/12/2009 @ 08:33am | ignore this person | warn this person
A- rating too!! Unsecured.
'all that money makes such a succulent sound'
Watch out for Oct. 31. 270 billion of corporate bonds may lose their government backstop. This could drive overall bond market lower. Also warning: higher interest rates ahead.
Huevos indeed. Very confusing. Is this corporate debt or government debt (no doubt a strange socialistic hybrid)?
Short term maturity Bond ETFs may be the better play.
Posted by OneVote at 09/12/2009 @ 10:18am
PS:
'By subtracting the yield of TIPS (Treasury Inflation Protected Securities) of a particular maturity from the yield of an ordinary Treasury note/bond of the same maturity, you obtain the implied annualized inflation over the time to maturity'
It is very weird. Take a look at the spread between a 30 year TIPS and an ordinary TBond. You see much spread?
Now do the same thing for 3 year maturity.
On the AIG bond, I do like the 2010 maturity (short term). The coupon rate on this bond is compelling compared to Treasury yields. However, risk must be understood.
My concern with the TIPS versus Ordinary Spreads is that both government and commercial markets are artificial and unrealistic.
When you have you own Treasury (via Federal Reserve and bailout recipients) as major market participants in debt offering (essentially the borrower is buying its own debt with printed money), you don't have a "normal market."
What to do........................
Posted by OneVote at 09/12/2009 @ 11:24am
Posted by OneVote at 09/12/2009 @ 11:24am |
IIRC, TIPS are annualized to inflation using CPI which is notoriously unrepresentative of inflation proper, but any adjustment in the right direction is better than watching your dollars shrink helplessly.
We've only begun to see the tip of the inflation iceberg.
They should take some of the money and invest in printing press equities!
Posted by snowball777 at 09/12/2009 @ 6:11pm
They should take some of the money and invest in printing press equities!
Posted by snowball777 at 09/12/2009 @ 6:11pm | ignore this person | warn this person
Not a bad idea SB!
I hear money printing presses with C-Note plates included are big sellers overseas as well.
Posted by OneVote at 09/13/2009 @ 12:52am
Posted by OneVote at 09/13/2009 @ 12:52am |
The NKoreans LOVE em!
I can't wait to see what Moody's et al make of the unsupported corp bond market, if your prediction above becomes reality.
My guess: they'll get an extension passed mid-Oct; the recovery is too unstable, like a new colt on spindly little 'grass-shoot' legs.
I don't want to see what kind of 'force shaping' this induces in the private sector during our already-jobless recovery.
Posted by snowball777 at 09/13/2009 @ 07:21am
Treasury's Debt Plan: More Sales of TIPS Article Comments (5) more in Markets Main » BY ROB COPELAND - Wall Street Journal - Excerpt
'The Treasury Department, seeking new ways to help fund its budget deficit, is likely to announce on Wednesday a plan to ramp up sales of inflation-protected bonds, according to people familiar with the matter.
China, the largest holder of U.S. government debt, is among investors that have indicated to the Treasury that they want to buy more of the securities, which offer protection against rising inflation, the people said.
Officials from the U.S. and China discussed TIPS issuance at high-level talks in Washington last week. U.S. officials assured their Chinese counterparts that they remained committed to TIPS sales, according to...'
Very interesting indeed. Agreed that TIPS spread analysis is worthless as to projection of inflation, but it is of interest from the standpoint of government's make believe pricing mechanisms.
Posted by OneVote at 09/13/2009 @ 10:21am
'Right now, TIPS represent just a fraction of the overall market for Treasurys. Of $6.66 trillion of government bonds issued between Oct. 1 2008 and June 30 of this year, just $44 billion were inflation-adjusted.
After the tepid response to auctions of fixed-rate bonds last week, Treasury officials asked some primary dealers whether they would be amenable to a new issue of 30-year TIPS -- which haven't been sold since October 2001 -- instead of five-year or 20-year TIPS, according to people familiar with the matter.
Demand for TIPS auctions this year has been robust, with last week's $6 billion reopening of 20-year TIPS garnering the highest demand in two years. The TIPS didn't entice only traditional Treasurys investors, but also those investing in stocks and commodities.
"There is growing demand for TIPS among investors who see them as an important asset class to diversify their portfolio," said Donald Ellenberger, who helps oversee $8 billion in assets as co-head of government and mortgage-backed bonds in Pittsburgh at Federated Investors Inc.
The growing attention lavished on TIPS is turning what used to be a steady hedge into a more volatile bet. The gap between TIPS and a comparable nominal note has seen unprecedented swings that are three times as extreme as in years past, according to Jefferies & Co. The current 1.88 percentage-point gap means that investors expect annualized inflation of 1.88% over the next decade.
In the past three weeks, the gap has climbed from 1.52 percentage points to as high as 1.90 percentage points, with swings of 0.10 percentage point each day common.'
cite to above.
As this market grows, TIPS spread will tend to be set more by "the market" and less by Treasury.
Posted by OneVote at 09/13/2009 @ 10:23am
Do check out articles such as below. Private debt versus government debt competition and interplay will be very interesting to watch.
Special corporate bonds offer protection from inflation
by Alexander Anderson, Jr.
May 27, 2008 - FiLife
http://www.filife.com/stories/special- corporate-bonds-offer-protection-from-inflation?printview=true
This is making me very nervous. Adjustable rate unsecured debt - similar to adjustable rate mortgages? Have we gone down this road before?
Posted by OneVote at 09/13/2009 @ 10:51am
Demand for TIPS auctions this year has been robust, with last week's $6 billion reopening of 20-year TIPS garnering the highest demand in two years. The TIPS didn't entice only traditional Treasurys investors, but also those investing in stocks and commodities.
Posted by OneVote at 09/13/2009 @ 10:23am
Special corporate bonds offer protection from inflation
by Alexander Anderson, Jr.
Posted by OneVote at 09/13/2009 @ 10:51am
Early in the year, I had mom cash out some of her equities into inflation-protected bonds.....her adviser put her into "corporate bonds offer protection from inflation" due to the dearth of TIPS.
About 10 days ago, I did the same.....cashed out some equities but put them into TIPS. My first!
Ya know, being real estate heavy, and moving some financials into gold and TIPS, maybe I ought to start rooting for Magic's hyper deficit-spending, printing press overdrive, bending the entitlement cost curve UPWARD policies....hmmmmm, could be just the ticket I need to cash out in 4~7 years.......LOL!
I can compromise my principals for guaranteed 50% inflation in 7 years.....make that promise, Mr. Obama, I may even vote for your reelection.
Posted by Happy at 09/13/2009 @ 11:22am
BTW, domestic inflation is one sure way to bring the real cost of labor down relative to the world's wage rates....Left-wing populists are quite good at this, esp. running printing presses, cheap and easy.....like a lay-away plan; except they won't be around when the payments are due (Reagan/Volker will be needed again)!
Posted by Happy at 09/13/2009 @ 11:28am
I can compromise my principals for guaranteed 50% inflation in 7 years.....make that promise, Mr. Obama, I may even vote for your reelection.
Posted by Happy at 09/13/2009 @ 11:22am | ignore this person | warn this person
Lol....the house always wins Hap! Think SHORT TERM and LIQUID.
What is funny is that theoretically, they (the gov) will have to deflate the economy in order to keep debt service (interest) low - essentially ruin the economy to save the economy?????
Posted by OneVote at 09/13/2009 @ 11:54am
What is funny is that theoretically, they (the gov) will have to deflate the economy in order to keep debt service (interest) low - essentially ruin the economy to save the economy?????
Posted by OneVote at 09/13/2009 @ 11:54am
You remember what Biden said.....paraphrasing here.....we've got to borrow more in order to grow our prosperity (or avoid a depression).....
Yep, we've got the RIGHT crew in the WH to "ruin the economy to save the economy".....John Kerrish!
Posted by Happy at 09/13/2009 @ 12:18pm
Well Droop is against the Fed because he is not in on the gravy train. I am against the Fed because they have been the driver of the "Ditch Rover". I simply want to know how much toxic debt is hidden in their books. They have helped the big corporations screw the American public. I agree with Ron Paul and Bernie Sanders in wanting to see an audit of their books.
Posted by whatizz at 09/13/2009 @ 9:46pm
Like mentioning "Roswell" at a Star Trek Convention...
nothing drives it out of the woodwork on a political blog than mention of the Federal Reserve System.
Posted by Mask at 09/14/2009 @ 07:41am
nothing drives it out of the woodwork on a political blog than mention of the Federal Reserve System.
Posted by Mask at 09/14/2009 @ 07:41am | ignore this person | warn this person
Maskie - I hear that BO is pushing for a generic "Blue Pill" in the health plan. Not sure if you have medical insurance or not, but maybe conspiracy theories will die out once blue pills are more affordable. The marketing pitch is as compelling, as it is disturbing.
"So what are the advantages of taking the blue pill? As one of the characters in the film says, "ignorance is bliss" Essentially, if the truth is unknown, or you believe that you know the truth, what is there to question or worry about?
By accepting what we are told and experience life can be easier. There is the social pressure to 'fit in', which is immensely strong in most cultures. Questioning the status quo carries the danger of ostracism, possibly persecution. This aspect has a strong link with politics. People doing well under the current system are not inclined to look favourably on those who question the system. Morpheus says to Neo "You have to understand that many people are not ready to be unplugged, and many of them are so inured, so hopelessly dependent on the system that they will fight to protect it."
The system also has a place for you, an expected path to follow. This removes much of the doubt and discomfort experienced by a trailblazer.
Another argument on the side of the blue pill is how does anyone know that the status quo is not in fact the truth? The act of simply questioning does not infer a lack of validity on the questioned. Why not assume that your experience is innocent until proven guilty? Just accept everything?"
Dave Droar - arrod.uk.co - excerpt
In the Matrix, which pill wou
Posted by OneVote at 09/14/2009 @ 10:29am
Posted by OneVote at 09/14/2009 @ 10:29am |
If ignorance is bliss, then knock the smile off my face. - RATM
As a percentage, how many people who are "against the Fed" do you believe can even define "central bank" or understand monetary policy?
I see a good chunk of this anti-Fed ranting as residual hatred of the money trust that formed the original Fed, passed down from generation to generation as the bugaboo that's been keeping us down all this time...like conspiracy theories about freemasons.
I'm not saying that the Fed hasn't done a horrible job managing our currency at times (Greenspan, I'm looking at you), but there's a difference between "the Fed should operate correctly" and "the Fed should be abolished".
Posted by snowball777 at 09/14/2009 @ 10:39am
As a percentage, how many people who are "against the Fed" do you believe can even define "central bank" or understand monetary policy?
Posted by snowball777 at 09/14/2009 @ 10:39am | ignore this person | warn this person
Very good question SB.
Alan Greenspan probably doesn't even know. Note, he couldn't explain the mathematics (valuation) behind a credit default swap being peddled by the very dealers who sell the government's debt and is also held in the Federal Reserve and classified by a balance sheet ASSET.
The cloak of secrecy and lack of transparency (you'll will note that we were promised transparency which has not been delivered) fuels the fire wouldn't you agree?
How does our Central Bank differ from Central Banks in other nations? Please explain in 25 words or less. And when you tell us the difference, please indicate to us why there is a difference in structure, first and foremost. Hint: three words....first letters of the three words are C, O, I.
Posted by OneVote at 09/14/2009 @ 10:52am
Posted by OneVote at 09/14/2009 @ 10:29am
How about THIS bitter pill, OV....
20 years from now, you'll still be talking about the Federal Reserve, because it will still exist.
30 years from now...
40 years from now....
likely 50+ years from now....
Posted by Mask at 09/14/2009 @ 11:07am
Posted by Mask at 09/14/2009 @ 11:07am | ignore this person | warn this person
Jumping the gun a little aren't you?
Again, those who question aren't necessary in the same boat as those who advocate tearing down the system.
When a question is treated as a threat, the natural inference is that you have something to hide.
Posted by OneVote at 09/14/2009 @ 11:24am
'ICE Trust is a limited purpose trust company that serves as a central clearing facility for credit default swaps (CDS). Membership in ICE Trust is open to institutions that meet objective financial and eligibility standards. As a New York Trust Company and a member of the Federal Reserve System, ICE Trust is subject to direct regulation and supervision by the Federal Reserve and the New York State Banking Department. Subject to compliance with certain conditions, ICE Trust operates under an exemption from the Securities and Exchange Commission (SEC) and the U.S. Treasury Department'
ICE Trust: Credit Default Swap Clearing
Hmmmm.......credit default swaps can be traded back and forth, even by parties out of the loop, credit default swaps are issued on US Treasury debt, but, ICE Trust is exempt from SEC and Treasury??? ICE Trust is a member of the Federal Reserve & NY Banking Dept.?????
Can anybody out there explain this one?
Maskie - how about you?
Posted by OneVote at 09/14/2009 @ 11:42am
Posted by OneVote at 09/14/2009 @ 11:24am
No, just anticipatory, OV. Again, like mention UFOs or "Who REALLY killed JFK?"....it eventually turns into a conspiracy fest and claims of "the imminent demise of the Cabal as the people are waking up!!!!"?
And it'll keep going...year after year, well after Ron Paul passes on (Many years to him, of course)....and even likely beyond the lives of the ones who dream of the Fed's demise.
Remember...they've been talking about it for nearly...
ONE HUNDRED YEARS now.
Posted by Mask at 09/14/2009 @ 12:47pm
'The structure of the central banking system in the United States is unique compared to others' in the world, in that an entity outside of the central bank creates the currency. This other entity is the United States Department of the Treasury.'
Posted by OneVote at 09/14/2009 @ 12:57pm
ONE HUNDRED YEARS now.
Posted by Mask at 09/14/2009 @ 12:47pm | ignore this person | warn this person
I will agree with you that conspiracy theories have the potential for good and evil, and the in-between.
NAZI conspiracy theories fueled hate, but garnered support. The evil.
But, taking a walk down memory lane.
McNamara's Fog of War.
Would you agree that the Government weaves conspiracy theories as well?
Or Bush's weapons of mass destruction? Look what they did to Joe Wilson and Valerie Plame.
Given the record, how can you put your absolute trust in the media and government, even your beloved Democratic Party? You can't.
But to juxtapose questions about the Federal Reserve next to Roswell is the oldest trick in the book Maskie, and you really need to find a better way to express your confidence that the Federal Reserve is doing just fine. Positing something serious with something ridiculous is sophistry.
Posted by OneVote at 09/14/2009 @ 1:20pm
July 25, 2008 After Facing Scrutiny, Commodities Trading Accepts Regulations By DIANA B. HENRIQUES
Correction Appended
'Lawmakers have leveled some scathing adjectives at the IntercontinentalExchange, known as the ICE, a technology company whose electronic markets are at the center of fierce debates about commodity speculation raging in Congress recently.
It has been called shadowy, conspiratorial, unregulated and opaque. There have been hints, too, of links to market manipulation and even the Enron scandal.
"To be clear, ICE is a dark market," Senator Maria Cantwell, Democrat of Washington, said during a Senate debate in May.
The vitriol seems to roll off the back of Jeffrey C. Sprecher, the 53-year-old founder of the ICE, which started as a private, high-ticket eBay for market professionals to trade esoteric electricity and natural gas derivatives.
In eight years, the ICE has purchased three regulated futures exchanges, built its own clearinghouse and invested in its compliance operations. With profit of $240.6 million on 2007 revenue of $574.3 million, it has a market value of more than $6.5 billion, even after the battering financial stocks have taken this year -- and has been included in the Standard & Poor's 500-stock index since last September.
Yet, time and again, Mr. Sprecher has sat at polished tables in Washington and listened as his brainchild was described as a murky bazaar where prices have been manipulated, and where speculators have run wild and driven up oil prices to the detriment of consumers and the global economy.'
Now, in 2009, the honorable Mr. Sprecher via ICE is a member of the Federal Reserve, and is peddling CDS. Clearing members to date are Bank of America/Merill Lynch, Barclays Capital, Citi, Goldman.....
Posted by OneVote at 09/14/2009 @ 1:35pm
OV....DNDN up over $3/share...almost a new high!
Dendreon (DNDN) Higher On Renewed Takeover Talk
12:15PM ET - StreetInsider
Shares of Dendreon Corp. are jumping higher on healthy volume today on resurfaced rumors the company could be the target of a takeover bid. Takeover talk has been swirling around Dendreon since April when the company announced that its Phase III trial of Provenge met its primary endpoint.
Posted by Happy at 09/14/2009 @ 1:46pm
Posted by Happy at 09/14/2009 @ 1:46pm | ignore this person | warn this person
Thanks Hap. Here I am asleep at wheel.
Great call! Kudos!
Posted by OneVote at 09/14/2009 @ 1:52pm
The Fed should be run properly and allow an audit of its books.These are the people that loaned money to the pillars of our communities. It used to be if someone loaned money at 20-25% it was called usury. The guys that did it were prosecuted as organized crime figures. Now the people who do it are called VISA or MASTERCARD. So with associates such as those why shouldn't we audit the FED.
Posted by whatizz at 09/14/2009 @ 11:34pm
Posted by OneVote at 09/14/2009 @ 1:20pm
Give me a figure and a date, OV.
The "figure" being how much money you'd be willing to bet....the "date" when the Federal Reserve System will be abolished, even to a vague 'No later than the year 20__".
And I'll match it and bet against it.
Posted by Mask at 09/15/2009 @ 07:34am
Why doesn't the FED have to be accountable? Do we need monetary policy to be secret?I am not asking for the minutes of their meetings,I want to see how they are expanding or contracting our money supply.
Posted by whatizz at 09/15/2009 @ 08:07am
And I'll match it and bet against it.
Posted by Mask at 09/15/2009 @ 07:34am | ignore this person | warn this person
What I envision is change from without rather than from within. September 2008 was just the beginning.
Posted by OneVote at 09/15/2009 @ 08:50am
Posted by whatizz at 09/15/2009 @ 08:07am |
http://www.federalreserve.gov/monetarypolicy/ bst_fedfinancials.htm
Posted by snowball777 at 09/15/2009 @ 09:23am
Posted by OneVote at 09/15/2009 @ 08:50am
Fine...give me a DATE.
"No later than 20__, and the power of the Fed will be diminished greatly" or however you want to phrase it and with as much time as you want.
And again, be "conservative" if you want...5-6-10 years after what you really THINK the "maximum" is....if you think "No later than 2012"..say "2020" if you want.
I'm very patient.
Posted by Mask at 09/15/2009 @ 09:51am
Posted by Mask at 09/15/2009 @ 09:51am |
Somewhere between when Ron Paul wins a primary and when pigs fly, give or take a decade.
Posted by snowball777 at 09/15/2009 @ 10:01am
I'm very patient.
Posted by Mask at 09/15/2009 @ 09:51am | ignore this person | warn this person
I think 2020 will do. The "change" should be manifest by that time. Incidentally, that is about the time that medicare and social security are anticipated to be in the red - literally.
You need to understand the global power play going on right now. Lots of folks overseas very tired of the status quo with NY and London calling the shots.
I think what is going to happen is something akin to imposed structural adjustments on our system by our creditors in exchange for workout and partial debt forgiveness. Fed isn't going to be calling the shots on this one. The process will be similar to IMF imposed structural adjustments.
Posted by OneVote at 09/15/2009 @ 10:16am
BTW - the bailout's of Sept. 2008 are workout imposed by foreign creditors in case you haven't figured that out yet.
Posted by OneVote at 09/15/2009 @ 10:28am
Posted by OneVote at 09/15/2009 @ 08:50am Fine...give me a DATE. "No later than 20__, and the power of the Fed will be diminished greatly" or however you want to phrase it and with as much time as you want. And again, be "conservative" if you want...5-6-10 years after what you really THINK the "maximum" is....if you think "No later than 2012"..say "2020" if you want. I'm very patient. Posted by Mask at 09/15/2009 @ 09:51am | ignore this person |
--the "sound and fury" of Mask (i.e., "wanna bet") when the precious status quo is challenged!
Posted by urmygyro at 09/15/2009 @ 10:58am
--the "sound and fury" of Mask (i.e., "wanna bet") when the precious status quo is challenged!
Posted by urmygyro at 09/15/2009 @ 10:58am | ignore this person | warn this person
Waiting to see how much he is willing to bet?....lol...........
Posted by OneVote at 09/15/2009 @ 11:14am
--the "sound and fury" of Mask (i.e., "wanna bet") when the precious status quo is challenged! Posted by urmygyro at 09/15/2009 @ 10:58am | ignore this person | warn this person Waiting to see how much he is willing to bet?....lol........... Posted by OneVote at 09/15/2009 @ 11:14am | ignore this person | warn this person
---he has to wait for the right-wing media to give him the go ahead...right now he's on all fours wagging furiously seeking their attention...heheh
Posted by urmygyro at 09/15/2009 @ 11:54am
I think 2020 will do. The "change" should be manifest by that time.---Posted by OneVote at 09/15/2009 @ 10:16am
Cool...make it a grand ($1000).
Now, just for honesty sake, care to lay out the SPECIFIC parameters of the changes in the Federal Reserve System that you think will occur in 11 years???
Posted by Mask at 09/15/2009 @ 2:03pm
I think 2020 will do. The "change" should be manifest by that time.---Posted by OneVote at 09/15/2009 @ 10:16am Cool...make it a grand ($1000). Now, just for honesty sake, care to lay out the SPECIFIC parameters of the changes in the Federal Reserve System that you think will occur in 11 years??? Posted by Mask at 09/15/2009 @ 2:03pm | ignore this person |
LONG LIVE THE STATUS QUO!
Posted by urmygyro at 09/15/2009 @ 2:47pm
Cool...make it a grand ($1000).
Now, just for honesty sake, care to lay out the SPECIFIC parameters of the changes in the Federal Reserve System that you think will occur in 11 years???
Posted by Mask at 09/15/2009 @ 2:03pm | ignore this person | warn this person
Only a $1000 Maskie, and trying to hedge your bet with SPECIFIC parameters which will allow you to weasel out on a technicality??
Not too confident are you?
Posted by OneVote at 09/15/2009 @ 4:06pm
Posted by Mask at 09/15/2009 @ 2:03pm | ignore this person | warn this person
New York, March 4, 2009 – IntercontinentalExchange® (NYSE: ICE), a leading operator of regulated global futures exchanges and over-the-counter (OTC) markets, today announced that ICE US Trust, LLC (ICE Trust), a New York limited liability trust company, has received regulatory approval from the Board of Governors of the Federal Reserve System to become a member of the Federal Reserve System and to serve as a clearing house and central counterparty for credit default swap (CDS) transactions. Pending the receipt of all required regulatory approvals, ICE anticipates closing its acquisition of The Clearing Corporation (TCC) within a week. On March 2, ICE and TCC received early termination of the Hart-Scott-Rodino waiting period from the U.S. Department of Justice.....
About IntercontinentalExchange IntercontinentalExchange® (NYSE: ICE) operates regulated global futures exchanges and over-the-counter (OTC) markets for agricultural, energy, equity index and currency contracts, as well as credit derivatives. ICE® offers these markets to participants around the world through its technology infrastructure and trading platform, together with clearing, market data and risk management services. ICE Futures Europe® is ICE's regulated energy futures exchange. ICE's regulated North American exchanges, ICE Futures U.S.® and ICE Futures Canada™, offer markets for agricultural and financial contracts. Creditex, a market leader in trade execution and processing for credit derivatives, is also a wholly-owned subsidiary of ICE. A member of the Russell 1000® and S&P 500 indices, ICE is headquartered in Atlanta, with offices in New York, London, Chicago, Winnipeg, Calgary, Houston and Singapore. www.theice.
Posted by OneVote at 09/15/2009 @ 4:15pm
Posted by Mask at 09/15/2009 @ 2:03pm | ignore this person | warn this person
Okay Maskie.....let me see. Credit default swap trade and allowing a trading platform (also involved in commodity futures trade) to become a member of the Federal Reserve is spelled out where exactly in the Federal Reserve Act?
Now who do think put the pressure on develop a central CDS clearing house with ability of trading members to use one another's balance sheets as reserve margin, backed up by the Federal Reserve's resources (read Treasury Taxpayer) and hush hush secrecy and lack of transparency? And this baby was given an exemption from the Hart Scott Rodino Act....lol.........Answer = Foreign Creditor Nations.
Posted by OneVote at 09/15/2009 @ 4:31pm
Cool...make it a grand ($1000). Now, just for honesty sake, care to lay out the SPECIFIC parameters of the changes in the Federal Reserve System that you think will occur in 11 years??? Posted by Mask at 09/15/2009 @ 2:03pm | ignore this person | warn this person Only a $1000 Maskie, and trying to hedge your bet with SPECIFIC parameters which will allow you to weasel out on a technicality?? Not too confident are you? Posted by OneVote at 09/15/2009 @ 4:06pm | ignore this person | warn this person
--Mask wants to make money (via a bet) on the fed's continued existence...seems fair to say he's FOR the fed! he believes in it! all's fair--right Maskerade?
Posted by urmygyro at 09/15/2009 @ 5:41pm
--Mask wants to make money (via a bet) on the fed's continued existence...seems fair to say he's FOR the fed! he believes in it! all's fair--right Maskerade?
Posted by urmygyro at 09/15/2009 @ 5:41pm | ignore this person | warn this person
Note the minimalization of issue by Mask.
Not one word from him demonstrates any fricking knowledge of the Fed, nor his views on the partnering up with the cretins who brought us to brink of financial disaster, monopolization of the CDS market without anti-trust review, removal of the CDS market from the purview SEC and TREASURY, conflict of interest between Treasury and the Fed, use of taxpayer money to prop up the likes of Goldman Sachs, Citi, and foreign "banks" such as Barclays and Credit Suisse, Deutsche Bank, and UBS.
If this isn't Corporate Fascism and a Financial Cabal, I surely don't what is.
Posted by OneVote at 09/15/2009 @ 7:25pm
minimalization of issue is Mask's go-to move. Substance ain't his thang! He just wants to bet. He's a degenerate gambler who needs his fix!
Posted by urmygyro at 09/15/2009 @ 9:21pm
Posted by OneVote at 09/15/2009 @ 4:06pm
No, trying to get specifics from you so YOU won't weasel out.
Lay out any you like...and I'll keep my bet as is.
"By 2020, The Federal Reserve will be significantly altered by ___, ___, and ____ being implemented."
Now you and my pet urmy can discuss ME...or put your money where your mouth is.
Posted by Mask at 09/16/2009 @ 07:50am
Posted by OneVote at 09/15/2009 @ 4:06pm No, trying to get specifics from you so YOU won't weasel out. Lay out any you like...and I'll keep my bet as is. "By 2020, The Federal Reserve will be significantly altered by ___, ___, and ____ being implemented." Now you and my pet urmy can discuss ME...or put your money where your mouth is. Posted by Mask at 09/16/2009 @ 07:50am | ignore this person |
--beck's gotta get a better leash...there's a lotta barking going on!
Posted by urmygyro at 09/16/2009 @ 1:21pm
--beck's gotta get a better leash...there's a lotta barking going on!
Posted by urmygyro at 09/16/2009 @ 1:21pm | ignore this person | warn this person
Mask loves to make unenforceable internet blog bets - "put your money where your mouth is" - but you will never be able to collect on the bet if I am wrong. Very Beckian indeed.
Okay Mask, please give me your real name and address, your telephone number, and your banking reference, and give me a choice or two on an escrow account where we can keep your bet safe and sound through 2020....lol...........
Whatta a guy......
Posted by OneVote at 09/16/2009 @ 3:17pm
--beck's gotta get a better leash...there's a lotta barking going on! Posted by urmygyro at 09/16/2009 @ 1:21pm | ignore this person | warn this person Mask loves to make unenforceable internet blog bets - "put your money where your mouth is" - but you will never be able to collect on the bet if I am wrong. Very Beckian indeed. Okay Mask, please give me your real name and address, your telephone number, and your banking reference, and give me a choice or two on an escrow account where we can keep your bet safe and sound through 2020....lol........... Whatta a guy...... Posted by OneVote at 09/16/2009 @ 3:17pm | ignore this person | warn this person
--woah woah woah--anonymity is precious!...especially when you have no desire to back up your claims!
Posted by urmygyro at 09/17/2009 @ 12:52pm