fedhed

The Fed: Why I'm Worried about Where It's Headed

John, I am going to assume you are worried about the banking sector in general, since you do not specify a particular stock or ETF as Seeking Alpha Editors supposedly require.

But worrying isn't helpful as I am sure you would agree unless used as a catalyst to stimulate real discussion about other ideas. Since you don't know what the Fed will do (none of us do) what are some ideas that effectively counter what you are afraid they'll do?

You used to work at the Fed; does your worrying stem from thinking they do not have any real options and that the only workable outcome can be a failure of "their" banking system? I say workable because if they can buy enough time AND set up an alternative system that keeps major survival flows of money (20/80 rule applies here as at least 80% of us are not important when the money cartel is in survival mode), then they can let the current system crash, albeit at great costs to many globally, and start anew.

Doesn't mentioning the Fed as "independent" really mean they are a private banking cartel which is controlled by private banking family dynasties? Much like OPECis for the oil families. But unlike OPEC (which is not looking for a bailout), the Fed NEEDS the American people (and others around the world) to subsidize their losses first and foremost.

Seems to me the Fed wants its cake and to eat it. Its families have amassed untold wealth since Richard Nixon took us off the gold standard but their staggering sums in fiat monies around the globe pale in comparison to the power they’ve held to move things their way. I would imagine they control most, or enough, of the gold and other precious metals which has allowed them free reign until now.

But the cartel would be in a real bind now if their banking system crashes before they can unload their bad debt on us and other countries. “Depression” would not describe the ensuing chaos. Now I’m thinking my assumption of your worrying about the banking sector was way off base; that you aren’t concerned about the stock prices or dividends of any particular bank or group of banks. Maybe you are concerned that the jig is up on the cartel’s fractional reserve banking system. If you are, then we might agree that the Fed is starting to resemble a hyena (normally docile, but never pleasant to look at) that’s been backed into a corner and the only way out is over or through whatever is in the way). Which leads me to ask the question; how did the hyena get into this predicament?

The only answer I can conjure is that some other powerful force in the world does not appreciate the money cartel and what it promotes. Or perhaps it is a co-op of smaller forces with differing ideologies but a common mission to lay the hyena low. Seems like if we follow the oil to who has most of it and then to who needs more and more of it, we’ll start to get an inkling of how the hyena got cornered. Oil and Israel are the reasons I believe we built the enormous US embassy/fortress compound in Baghdad and why we aren’t leaving the middle east any time soon; Israel and NYC are one in the same in the eyes of the Islamentalists and so we are in the same foxhole. And we are fighting…

Oh yeah, Al Qaeda; their attacks on 9/11 struck the heart of the money cartel (and our way of life, on credit) and the perception required to keep the fractional reserve system operational. The perception required of course is that all is well, for if it weren’t every single bank in the network would be insolvent should the depositors want all their money. Mr. Greenspan over reacted some say and kept interest rates too low, too long. I think he and the cartel knew just how bad the wound was on 9/11 and that going all in was the only way to keep the patient alive. They figured they’d fight the next battle when it came. Instead of hitting the US directly though, Al Qaeda went on to hit Bali, Britain, Spain, Iraq, India (financial capital of Mumbai) and now again Afghanistan. And so when Paulson told us the sky was falling, it was. On the money cartel that is, which by extension, means our sky is falling. So, just like Reagan wore down the Soviets and bankrupted them with a costly arms race, the Islamentalists are making a similar progress with major battle expenses for the US and allies in the Middle East, enormous security costs around the globe and enough terror induced insecurity sprinkled around to shake the house of cards that is our global fiat money system.

And since I mentioned a co-op, let’s bring in China; they cannot be allowed to grow unfettered as the US wanted to during the Industrial Revolution. We fought wars then to grow where and as we wished (Nazism and Communism) and are fighting now (Islamentalism and again, Communism)), for the right to lend and grow. The money cartel can weaken OPEC and China but until the US truly is energy independent there is no such a thing as a sure thing. There is the issue of China owning much US debt, but I guess we’ll inflate that away before they become a military force to be reckoned with.

And so here we are watching from the sidelines. I’ll go out on a limb and recommend that no one should buy the stock of any bank. If they short a bank or the sector they are not causing demise, merely hastening. Keep oneself as liquid and mobile as possible; maybe learn to find and sterilize water for drinking and to grow and kill your own food. If I thought owning gold could help if the chaos does begin I would say get some, but I don’t.

I do not think it will come to chaos, and certainly hope not. But it really could. More than likely though, our system will change (already is before our very eyes, with a scared and willing President and Congress) as we know it, the rules will change, the money will look different (but more alike around the world this time) and most people will be out of the loop just as they are today.

If you disagree about the nature of the Fed and what it faces John, then please offer another explanation, or recommend going long on a bank stock or two. I think the only way the US leads the rest of the civilized world forward is to be honest about the threats, the nature of our financial system, and elicit the support of the people by letting them grow unfettered themselves. Empowered, the masses will put down any ideology that threatens their peace and security. Kept in the dark though, they’ll revolt, sooner or later. I wonder if this is a scenario you’ve been thinking about.

It's All a Matter of Incentives

It is always good to view large problems from 40,000 feet as the author has done here, so as to hopefully avoid knee-jerk reactions (short sighted solutions). I agree with the point about humans being humans.

But I am not sure I understand the premise of the author and question what incentive has him writing this article. I would ask the author whether he thinks the Federal Reserve, and those in favor of perpetuating its ability to shape human behavior with incentives not aligned with our US constitution, should be reigned in by Congress (the only US governmental institiution with the power to print/coin money). My premise is that the Fed is owned by, and operated for the benefit of, the global families owning controlling interest in the 12 regional Fed banks, and that the "private" influence in our "public" Fed is unconstitutional.

A respone by the author would be appreciated by all I think. I've inquired similarly though directly to his e-mail address in the past but got no reply. Fair enough between us. Hopefully asking in this public forum will elicit a response.

What If What Economists Taught Us Is Wrong?

There are more than enough enterprising people to get this country back on track. The "rottenness" is just starting to be purged, at the top, with the bankers and finance men. When it finally is purged from the working man, and it will be, the creative and enterprising moral characters will rebuild, and re-shape this country.

The Fed's Secret Guests

The Fed is owned by the bankers who sat down for lunch. The bankers themselves are JP Morgan/Chase, Bank of NY, et al... The Fed has never, ever been a US government institution, nor will it ever be.

Here's a research project for you: Find out which banks own the Fed and their respective shares. Then see if there is any "public" ownership interest. I think you'll find there is none.

Has the Federal Reserve Become Too Powerful?

Mr. Mason, you are saying things I have been thinking and talking about for quite awhile. I think the Fed has had way too much power since its inception in 1913. And the current state of things is pushing more control their way, not less. I think it is by design though, not being "put upon" them.

Do you agree the Fed is not a government institution, but instead owned by public/private banks which are controlled by wealthy families, i.e., Rockefellers, Warburgs, Rotschilds, etc...?

Only Congress can take power away from the Fed; as I understand it was they who handed over their power to print money to the Fed. Is it realistic to think anyone in Congress knows enough to consider such a challenge much less take a stand and actually do something?

I think our country has been slowly hollowed out by the Fed's actions over the years, including getting Nixon to abandon the gold standard in 1971. Our money is worth so little compared to then with the continual devaluing of the dollar. Very few people know the true effects of inflation on our standard of living.

Do you agree that the JPM/Chase buyout of Bear Stearns was the Fed trying to prevent the credit default swaps counter-party house of cards that was going to tumble if Bear went bankrupt? And didn't JPM/Chase get to "cover" any trades they surely had which were tied to Bear?

I keep thinking the other "big" shoe is yet to drop in all this ($46 trillion in swaps where many unknown counter-party disasters have to be festering) and the Fed is going to wind up with more control than ever before.

Your bio says you had a stint at the Fed. Am I off base in thinking that Mr. Dimon, because he is a member of the Fed committee, was "too close" to put the "rescue" deal together? Or am I incorrect that JPM Chase is one of the largest, if not THE largest, shareholder of the very private Federal Reserve?

If I am wrong about JPM/Chase ownership, can you tell me how any US citizen can determine with certainty the ownership of the Fed? Where are the records and details of ownership?

I think most Americans are clueless about the nature of the Fed and "monetary" policy. I also think the US is just a tool for an overarching global group of families that control the Fed. But you've worked there- can you explain the ownership and intent of the Fed?

Just because a group's actions are a called a conspiracy doesn't mean it isn't true. I think the more one plumbs the depths of the Fed, the murkier things get. And for good reason. These are things we aren't supposed to know, or even ask about.

I think if enough Americans would ask their representatives in Washington, why the Fed has the authority it does to print our money, and keep asking the question repeatedly when they get the same wrong answer(s)over and over again, we might just start a process that unravels the mystery.
I ask everyone I meet to ask this question of their representatives, and would ask you to do the same. "Why is the Fed printing our money, when according to the US Constitution only Congress has this authority?"

Once an honest answer is finally revealed, the next would be "Why did Congress lend this power?".

And I think the next question would be "Should Congress consider taking back some, or all, of the power to print US dollars?"

And somewhere, in all of the discussion might come the answers to who owns the Fed, why we've been on/off/on/off again the gold standard, and probably some nuggets on our dependence on foreigners for energy and capital.

Is it possible our country could start talking about the truth in these issues, and how our standing in the world is being manipulated for the benefit of the true owners of the Fed and manipulators of global money supply?

I get labeled a conspiracy theorist because no one I have ever talked to, or heard/seen on TV or other media, can answer these basic questions. People think I’m crazy to even care about such things. I don’t think they are crazy, but have just been blissfully ignorant until now. So many very strange things are happening economically now, and the inflation we’ve been swept up in for 40 years is finally starting to be known as the sickness it is and even joe citizen is starting to say we’re in way over our heads.

Any chance you have any answers? If not, our country desperately needs some people that are respected in the field of economics to step up and lead the questioning. I’m hoping you can help out.

Backroom Bear Stearns Deal Exposed

People. The fed is owned by private banks.

Congress shirked their duty to control issuance of our money when President Wilson signed their Federal Reserve Act bill. That bill was created by Paul Warburg (came all the way over from Germany just to help out), and NY Bankers (MellonMorganChase, et al...), and the Fed from day one was unaccountable to joe US citizen. They spread regional fed-banks around the country to make people feel safe. They really pulled off the mother of all hijinks when it was deemed the President would have the "responsibility" of naming the Fed Chairman. The President is told though, don't you know, which wizard to hire when. It all seems legit, especially when so much is made about how the Fed operates independently of the White House. So the Fox (independent contractor status Fed) guards the chickens. The Chickens in this case are greenbacks, and yes the Fed (not Congress), gets to keep them penned in (deflationary-Paul Volcker style) or let them out (inflationary- Greenspernanke style). Greenspan sowed the seeds of inflation, Bernanke is watering and fertilizing them, and when the last value is wrenched from the pawns (investors in BS), and holders of world-wide of Treasuries (mostly China, but amazingly the arabs too, again) finally capitulate and sell, the next Fed chairman will grind what's left of the US economy into a cheap burger and sell it for amazingly high rates of interest to any returns-starved fool with any money.

Most in Congress would be shocked to know they could change the situation by holding the Fed accountable. But the few who do know were "grilling" Bernanke on 4-15/16 and then capitulating because the bailout of BS was sooooo needed to avoid worlwide economic doom. Those few congress people are merely world banker aides, getting to sit in on a "transparent" pow-wow with Big Ben and the Big Banks, all for our financial security. Don't ever forget though that money, creating too much or too little, is a terrible weapon. It makes people look like heroes (even turkeys can fly in a tornado), and goats (your local banker about to lose his job because some of his best clients can't pay their mortgage). These winners and losers are small potatoes though- the guys on TV with Big Ben play at another level. But they are pawns too. It's the families that own subsantial shares of the major banks, and therefore own major shares of the Fed, that do battle at the global level.

What you are witnessing is a global money war.

Roosevelt made owning gold illegal then future monetary policy decimated the value of the dollars he paid the honest people who turned it over. Anyone in the world owing US treasurys then got "paid back" with "worth-less" dollars.

Nixon stuck it to Arab nations when he took us off the gold standard in 1971. They owned Treasurys and saw the dollar's subsequent crash wipe out much of what we "paid back". This hurt them dearly. Then they hurt us dearly; we paid back at the pump, with Iran hostages then, and beligerent Iran now. Sure, oil is key and so is protecting Israel (and Israel's keepers in the US)

China is trying to fight back for us decimating the value of their US notes, by owning Gold (and pushing it higher). All well and good but we'll still win because gold won't feed their newly emerging middle class, which will make a mess of things in another 12-18 months when we've cut our purchases of cheap goodies by 30-50%. The uprising we see in Tibet will pale in comparison. The inflation rate in China is ratcheting up wildly, and is just getting started.

And don't belive that our inlation is a modest 4-5%. We stopped reporting M3 so the average joe wouldn't know our real inflation rate has been more like 8-10% over the last few years. Which is another reason Gold is up. Looks like everyone's a sucker. Except the EU central bank. They're on inflation-watch and will win this global battle in the war. Yep, you'll hear less about NY and more about the UK regarding being the world's financial clearinghouse.
Remember Paul Warburg? Well, he came to the US because the European system was in shambles and this country "prospered" most of the years since 1913.
People forget that the prosperity came between events of WW1, 1930's, WW2, Korea, Vietnam, Iran, Iraq, Iran (not much between the last 2). Whose wars were we fighting? And fighting still? Answer that and you'll know who tells the President which person to pick as the new FedHed.

So now the IMF says the only way to escape a world money crisis is for governments around the globe to pony up their citizen's tax dollars to bail out the banking system. That's right. This is the same IMF that got Mexico, Japan, Argentina and countless other fool countries to behave stupidly against their own citizen's best interests by adopting IMF protocol that wreaked havoc with their currency and economies.

So they're in on it, along with the World Bank. If you could dig deep enough into the ownership of these institutions you'd find the people that will fire Bernanke and install the next inflation hawk. Good luck!

If you don't believe what I've said about the Fed, ask your Senators and Congressmen. When you don't get a clear answer, ask them again. And keep asking, all the while looking for a candidate that will take the Fed to task. And do what you can to vote them in, and the others out. Tell them you want back on the gold standard and you are sick and tired (weary) from working your butt off, and getting raises that get you nowhere. And when people say things like "stop consuming more than you produce", know they are only partly right and their mantra is so loud it drowns any other discussions about the inflationary cycle wiping out more and more good people. Ask them to consider this; if they just yell louder, you'll know they are part of the conspiracy. And don't forget that just because "educated money and political people" poo-poo the idea of a conspiracy, doesn't mean there isn't one.

Think Ron Paul is a Kook? Ross Perot too? I can assure you the media will always help you think that way about anyone who challenges this system. That's why change must come from within Congress. There are a few in Congress who probably see their fault in going along- we need to lend them support with more like them. And we need to keep asking "why is the Fed printing our money?" Money backed by the full faith and credit of the U.S. With no gold to check the value, just paper and more of it.
"Why is the Fed printing our money? Why have we never really controlled our country, even after the American Revolution? Why does democracy in the US mean 2 partys, that just keep people agitated, then hopeful, then agitated again? And why is the Fed printing our money? If I could only get this one of my many questions answered, all the others would start falling into place.