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Note to self:
Learn more about the Federal Reserve.
It's important.
I dont know the relevancy of this, or if it is as rare as its made to sound, but for what its worth, here it is...
http://info.detnews.com/redesign/blo...m?blogid=11567Gotcha! The Fed has been bailing out banks without telling us
Reuters now has a report from The Financial Times explaining that banks have quietly borrowed roughly $50 billion from the Federal Reserve the past few weeks.
Please note that on February 7, this blogger noted that the report on the Federal Reserve website showed that more than $40 billion had disappeared from the books in just the past few weeks. (Thanks again to all my paranoid (but eagle-eyed) buddies at the Godlike Productions forum for spotting the strange goings on.)
The Fed site shows that its reserves had tumbled from $42,281 billion in the black during November to -$8749 billion in the red by February 7. As of February 13, they are now down to -$18,009 billion. According to the records on the Fed site, nothing like this has ever happened before.
Aren't these the reserves designed to protect us against bank runs and insolvency? Does this mean we're broke but nobody has bothered to tell us yet?
I do want to thank the vigilant citizen journalist watchdogs who are keeping on eye on the big boys for us. But I also want to know how a meltdown of these proportions could go unnoticed by the mainstream financial press.
Even now, with word of the bailout beginning to leak out, where is the analysis telling us what it means?
The Financial Times fails to answer my bottom-line question - is it time to put my money in gold -- or in my mattress?
Note to self:
Learn more about the Federal Reserve.
It's important.
EVERYTHING I've read says the situation is gonna get so much worse and last a couple more years, or more.
The elites will take care of the elites. The rest of us could be pretty much ed.
Corps will walk away from bad deals, break contracts as per their lawyers, etc and just write them off and keep on truckin.
Indivduals who do that have their credit records blackened indefinitely. "A deal is a deal" only if you're an individual. If you're corp, a deal is, well, not at all binding, no obligation whatsoever.
Guess who pushed for tightening the personal bankruptcy regs a couple years ago. Yep, the very same financial geniuses who have ed up with the subprime et al messes.
I saw an article calling for Bernanke's head, since he's considered to have been and still is asleep at the wheel since he was installed at the Fed, like dubya and head were in the summer of 2001. dubya just can't win for the all the losers and losings happening, because dubya is the biggest loser ever in that office.
Well, you have a whole new education coming. Folks
have been studying it for years and obviously they
haven't been able to figure it all out.
It has always been in the interest of the central banks to cut all ties between gold and the currencies that they issue. Cutting that tie allowed them to issue endless loans (because a finite supply of gold no longer restricts their reserve requirements), but it also allowed for endless bailouts when many of the loans made by the big banks that own the central banks inevitably become unserviceable. This is exactly what has happened numerous times over recent decades. Either they are bailed out by the Fed through inflation, or there is some combination of debt monetization with a tax payer bailout. This is done by both political parties. The politicians, at least the big ones, know who is running the show.
The general public has no idea that they pay for these bailouts, and if they are aware of it then they are told that it is necessary to the stability of the economy. And in that statment lies the beauty of the system; it isn’t a lie. If these big banks are forced to write off these massive loans then it would be disastrous to the economy (the little lenders don’t get the same treatment). So what is the incentive for these big banks to lend with restraint? There isn’t any – the public will always foot the bill in the form of inflation or a taxpayer bailout or both.
This thread reminded me of something from Quigley’s Tragedy and Hope. Of all the jaw-dropping revelations in that book, this one is one of the most shocking:
The powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences.
The apex of the system was to be the Bank for International Settlements in Basle, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations. Each central bank sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world.
Carroll Quigley, Tragedy and Hope pg. 324
And always keep in mind that the author of that book actually SUPPORTS the elite who own and operate the central banks and belong to the Round Table groups that run the West from behind the scenes. It’s an unbelievable statement, but there it is; that’s the world we live in. Many political arguments like left vs. right, or this candidate vs. that candidate, are largely an exercise in futility.
Think about that if you plan on voting for "change". You are voting for a word and nothing more.
.
You cannot be happy living in America . . .
Excellent post, Brad. I posted this hoping you'd weigh in. I dont pretend to be educated on the Fed, but I know someone who is, so thats worth something.
Don't concern yourself with my happiness, smegma. My happiness certainly doesn't depend on the elites and their cabals.
Yeah, just the failure of anything American.
if you can't stand the heat, if you need to believe in all the false myths about America, stay out of the kitchen.
The vast majority of American failures in the past 7 years have been created by dubya and head.
Auctions Yield Chaos for Bonds
http://www.nytimes.com/2008/02/20/bu...rssnyt&emc=rss
So, is it over?
Seriously, is there anything left to do?
Yup...
Burn this mother er down!
Stop printing money and adjusting the interest rates....because if we don't we are in for a very tough, next ten years.
Thanks. I actually had the goal of working for the Dallas Fed branch when I was in school. I decided to study it on my own during my last year to get a head start on grad school, and I ended up figuring out that our monetary system is really an elaborate pyramid scheme during grad school. After being taught that central banking is God’s gift to humanity for years, I lost my ambition for banking after that revelation.
The Round Table groups and central bank owners that Quigley talks about in Tragedy and Hope feed on ignorance. So there really isn't much to do about the situation as long as people are ignorant of the power that these groups and banks have over the West and much of the world.
It's going to take alot of people deciding to read a very dry 1300 page book, along with other books, reports and publications like the CFR's Foreign Affairs magazine, before any major change can occur. I'm not holding my breath, but still, awareness is increasing.
Banks want "an epic rescue plan"
Good morning again. Weekend reading, worth checking out, though I am sure it will not sit well with many of you:
--The New York Times notes the banks are now pushing "an epic rescue plan": "A confidential proposal that Bank of America circulated to members of Congress this month provides a stunning glimpse of how quickly the industry has reversed its laissez-faire disdain for second-guessing by the government — now that it is in trouble."
More: "Bank of America suggested creating a Federal Homeowner Preservation Corporation that would buy up billions of dollars in troubled mortgages at a deep discount, forgive debt above the current market value of the homes and use federal loan guarantees to refinance the borrowers at lower rates. "We believe that any intervention by the federal government will be acceptable only if it is not perceived as a bailout of the bond market,' the financial ins ution noted. In practice, taxpayers would almost certainly view such a move as a bailout.
The NYTimes reports that the Bush administration -- yes the same crowd that said "absolutely not" to a bailout earlier in the week -- "has expressed interest" in hearing about bailout plans.
Meantime the ever-alert Westside Bubble links to reports of another bailout in the making: This one for the homebuilders, in the form of a $10,000 tax credit for buyers of brand-new homes. You may recall the homebuilders' lobby has been sulking, and withholding political donations, because it didn't get what it wanted in the first stimulus package.
"A substantial tax credit for home buyers is likely to be part of any second economic stimulus package enacted by Congress," Marke ch reports. Who knew there is already a second stimulus package being discussed?
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