“The current world monetary system assigns no special role to gold; indeed, the Federal Reserve is not obliged to tie the dollar to anything. It can print as much or as little money as it deems appropriate. There are powerful advantages to such an unconstrained system. Above all, the Fed is free to respond to actual or threatened recessions by pumping in money.”
Another anniversary this year. This is the 100th straight year that the oil industry has received subsidies from the federal government. Congratulations on have the best politicians that money can buy!
At least we got rid of those pesky ethanol tax credits.
Certainly it is only a coincidence that these two began the same year, right? Damn, where’s my tin foil?
Funny that the steep part of the curve corresponds to my own lifetime. Currency debasement has been the principle tool of economic repression throughout my life. I cannot help but wonder if life might not have been far better without the “help” the Fed has contributed to our economic stability. What a con.
In Case There Was Any Confusion Just Who The Fed Works For…
Submitted by Tyler Durden on 01/07/2013 14:14 -0500
Today, to little fanfare, the Fed announced a major binding settlement with the banks over robosigning and fraudclosure, which benefited the large banks, impaired the small ones (which is great: room for even more consolidation, and even more TBest-erTF, which benefits America’s handful of remaining megabanks), and was nothing but one minor slap on the banking sector’s consolidated wrist involving a laughable $3 billion cash payment. As part of the settlement, the US public is expected to ignore how much money the banks actually made in the primary and secondary market over the years courtesy of countless Linda Greens and robosigning abuses. A guess: the “settlement” represents an IRR of some 10,000% to 100,000% for the settling banks. We are confident once the details are ironed out, this will be an accurate range.
Yet what is most disturbing, or not at all, depending on one’s level of naivete, is the response of Elijah Cummings, ranking member of the house Committee on Oversight and Government Reform. As a reminder, Congress had demanded that the settlement not be announced before there was a hearing on it. This did not even dent the Fed’s plans to proceed with today’s 11 am public announcement which can now not be revoked. It is Cummings’ response which shows, yet again, just who is the true master of the Federal Reserve.
From The Committee on Oversight and Government Reform:
Today, Rep. Elijah E. Cummings, Ranking Member of the House Committee on Oversight and Government Reform, issued the following statement regarding the public announcement of a new settlement between the Office of the Comptroller of the Currency (OCC), the Federal Reserve Board, and 10 mortgage servicers without first briefing the Oversight Committee as requested on a bipartisan basis last week:
“I am deeply disappointed that the OCC and the Federal Reserve finalized this settlement and effectively terminated the Independent Foreclosure Review process before providing Congress answers to serious questions about how this settlement amount was determined, who these funds will go to, and what will happen to other families who were abused by these mortgage servicing companies, but have not yet had their cases reviewed. I do not know what the rush was to make this settlement without answering these key questions, and although I look forward to obtaining information about how this deal may assist homeowners, I have serious concerns that this settlement may allow banks to skirt what they owe and sweep past abuses under the rug without determining the full harm borrowers have suffered.”
On Friday, Cummings and Oversight Committee Chairman Darrell Issa sent a bipartisan letter to Federal Reserve Chairman Ben Bernanke and Comptroller of the Currency Thomas Curry requesting a briefing before any new settlement was agreed to or announced publicly.
The statement concludes as follows:
In calls to the agencies this morning, agency officials stated that they
would not provide the briefing or answer additional questions before
going public with the announcement of the deal.
And that, folks, says it all, although it should not come as a surprise to anyone who has by now realized that the only goal the Fed has is to boost the Russell 2000 to new record highs, instead of giving any part of a rat’s anatomy about the US public or the broader economy.
TPTB have deliberately been rigging the game in their favor for generations, and still people proclaim this sort of nonsense “capitalism”.
At every turn they have endeavored to plunder all available wealth, power and resources for themselves. These things are not a means – they are an end, with the gold being to accumulate ALL. All the wealth. All the power. All the resources.
Try as they might, no sociopath in human history has ever been able to gather all three under their wings, but its certainly not for lack of trying.
Our current crop are not part of some larger world conspiracy, but rather are just greed incarnate. They’ll stop at nothing, and consequences be damned. They will rape, pillage and plunder all of EU/USA until nothing is left, then take their wealth and relocate to Russia or some other welcoming country and start all over again.
The Federal Reserve was just one step of many down the path to a US economic collapse. When I argue a case I like to be as thorough as possible, but when it comes to the big question “How did we get to this point?” its almost impossible to be thorough….TPTB have been so damned systematic in their destruction of our personal wealth that its a wonder I still have a pot to piss in and a window to throw it out of.
While I still do hold a feeble candle of hope in my heart, my brain is screaming at me to get the hell out of dodge before this all goes up in flames.
Shifting Mandates: The Federal Reserve’s First Centennial
It is probable that in 1913, while financial panics were not uncommon, high inflation was still largely seen by the founders of the Fed as a relatively rare phenomenon associated with wars and their immediate aftermath. Figure 1 plots the US price level from 1775 (set equal to one) until 2012. In 1913 prices were only about 20 percent higher than in 1775 and around 40 percent lower than in 1813, during the War of 1812. Whatever the mandates of the Federal Reserve, it is clear that the evolution of the price level in the United States is dominated by the abandonment of the gold standard in 1933 and the adoption of fiat money subsequently. One hundred years after its creation, consumer prices are about 30 times higher than what they were in 1913. This pattern, in varying orders of magnitudes, repeats itself across nearly all countries.
Paul Warburg, the mastermind of Jekyll Island, certainly delivered the ‘elastic currency’ that the people wanted. How far can you stretch a rubber band until it breaks?
Funny — Rep. Carter Glass was a co-sponsor of the Aldrich Plan for the central bank. Paul Warburg was appointed to the Federal Reserve Board in September, 1914 — and a director of the Council on Foreign Relations founded in 1921. His son, James, was the financial adviser to FDR.
Other highlights of 1913 — Sixteenth Amendment, income tax, and Seventeenth Amendment, direct election of senators. Federal Trade Commission Act. Federal Farm Labor Act. Eight hour workday for railroads. and more. Ol’ Woody was a busy man.