Tag: End The Fed

From Birch Gold Group

According to “big economic players” cited in the Fed’s Financial Stability Report (FSR) from November 15, trade frictions are the highest risk to the U.S. economy.

We have reported on that grave risk several times this year, so it’s somewhat old news. But what’s truly alarming is what the Fed’s report identified as the second-highest risk to the U.S. economy…

Continue reading “Fed Says “Reversal Rates” Are the Second Highest Risk to the U.S. Economy”

Guest Post by Ron Paul

Lost in the media’s obsession with the impeachment circus last week was Federal Reserve Chairman Jerome Powell’s testimony on the state of the economy before the Joint Economic Committee. In his testimony, Chairman Powell warned that when the next recession inevitably occurs, the US Government’s over $23 trillion debt would prevent Congress from increasing spending to revive the economy.

Powell also said that the Fed’s current low interest rate policies would prevent the Fed from using its traditional methods of increasing the money supply and further lowering interest rates to jump-start economic growth in a recession. Hopefully, Powell is correct that when the next recession hits the Federal Reserve and Congress will be unable to “stimulate” the economy with cheap money and new spending.

Continue reading “Federal Reserve: Enemy of Liberty and Prosperity”

Guest Post by Ron Paul

When the New York Federal Reserve began pumping billions of dollars a day into the repurchasing (repo) markets (the market banks use to make short-term loans to each other) in September, they said this would only be necessary for a few weeks. Yet, last Wednesday, almost two months after the Fed’s initial intervention, the New York Federal Reserve pumped 62.5 billion dollars into the repo market.

The New York Fed continues these emergency interventions to ensure “cash shortages” among banks don’t ever again cause interest rates for overnight loans to rise to over 10 percent, well above the Fed’s target rate.

Continue reading “Is The ‘Mother of all Bubbles’ About to Pop?”

“People with advantages are loathe to believe that they just happen to be people with advantages. They come readily to define themselves as inherently worthy of what they possess; they come to believe themselves ‘naturally’ elite; and, in fact, to imagine their possessions and their privileges as natural extensions of their own elite selves.”

C. Wright Mills, The Power Elite

“Instead of flooding the entire economy with liquidity, and thereby increasing the danger of inflation, the Fed could support the stock market directly by buying market averages in the futures market, thereby stabilizing the market as a whole.”

Robert Heller, Federal Reserve Board, 1989

Now, we don’t have the legal right to sell gold but I’m just frankly curious about what people’s views are on situations of this nature because something unusual is involved in policy here. We’re not just going through the standard policy where the money supply is expanding, the economy is expanding, and the Fed tightens. This is a wholly different thing.”

Alan Greenspan, Federal Reserve Minutes from May 18, 1993

“We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake. Therefore at any price, at any cost, the central banks had to quell the gold price, manage it. It was very difficult to get the gold price under control but we have now succeeded. The US Fed was very active in getting the gold price down. So was the U.K.”

Eddie George, Governor Bank of England, in a conversation with the CEO of Lonmin, September 1999

“Through pride we are ever deceiving ourselves. But deep down below the surface of the average conscience a still, small voice says to us, something is out of tune.”

Carl Jung

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From Birch Gold Group

As expected, the Federal Reserve cut rates a quarter point on Wednesday.

CNBC reported on the specifics, saying, “In a vote widely anticipated by financial markets, the central bank’s Federal Open Market Committee lowered its benchmark funds rate by 25 basis points to a range of 1.5% to 1.75%.”

If another Fed rate cut was all that happened, there wouldn’t be much to talk about. But as usual, that isn’t the case here.

The first question that arises is, “Will the Federal Reserve keep cutting rates after nine rate hikes?”

Continue reading “Fed Cuts Rates Again While Walking Back Key FOMC Language”

Authored by Chris Martenson via PeakProsperity.com,

“When it becomes serious, you have to lie”

The recent statements from the Federal Reserve and the other major world central banks (the ECB, BoJ, BoE and PBoC) are alarming because their actions are completely out of alignment with what they’re telling us.

Continue reading “The Fed Is Lying To Us”

Guest Post by Ron Paul

The Federal Reserve, responding to concerns about the economy and the stock market, and perhaps to criticisms by President Trump, recently changed course on interest rates by cutting its “benchmark” rate from 2.25 percent to two percent. President Trump responded to the cut in already historically-low rates by attacking the Fed for not committing to future rate cuts.

The Fed’s action is an example of a popular definition of insanity: doing the same action over and over again and expecting different results. After the 2008 market meltdown, the Fed launched an unprecedented policy of near-zero interest rates and “quantitative easing.” Both failed to produce real economic growth. The latest rate cut is unlikely to increase growth or avert a major economic crisis.

Continue reading “Endgame for the Fed?”