metastar

The Single Most Important Thing to Understand About the Fed

I can see how one might argue that an independent fed would not be blown by the political winds of the day. I can also see how an elastic money supply is useful. What I cannot see is how the most powerful institution on earth is run in complete secrecy and is accountable to nobody. When there is no transparency, there is no truth.

In its simplest form, it is the state which gives our money its value. If you don’t pay your taxes you will go to jail. This is the basic premise which gives these little scraps of paper money any value. From there the concept grows until it is firmly implanted in people’s minds that paper has value.

It is a brilliant scheme. Central banks can manipulate paper money far greater than they can manipulate a precious metal based currency. While I am not necessarily advocating a gold standard, I find it amazing that people are so mind washed that they actually argue that the Fed should NOT be audited! Whoa!

Sorry folks, our constitution clearly empowers congress “to coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures”. But, since we are slowly burning our constitution away anyway, why not just let the central bankers continue to secretly manipulate our money supply.

Oh dear, I sound like a conspiracy theorist!!!

The Most Expensive US Market Of All Time

It appears to me that money has been created. This money is not being lent. Where is it going? It could be going to the market. Big money banks have nothing to lose as they are backed by the faltering tax payers.

The real question is "where is the market ultimately going"? S&P P/E and P/OE mean nothing when bubble money keeps filling the balloon.

The Next Major Crisis Brewing

Generally, if you vote for a Democrat or a Republican you will lose. They are two different faces on the same coin. A new party is desperately needed which actually represents the people.


On Oct 01 12:07 PM Depressionitis wrote:

> BTW, Next election I'm voting for whomever is NOT currently in office.
> If I lived in his Congressional District - they only incumbent I
> would vote for is Ron Paul (I live in NY).
>
> Our governments (local, state & Federal) have let our country
> down. I see two ways to get our government to responsibly run our
> country - A. Revolution or B. Until our elected politicians perform
> responsibly, keep changing them - ALL of them.
>
> We have a 90% re-election rate in our country. Why do we allow the
> same people who cause us problems to stay in office and continue
> causing us problems?

Strange Inconsistencies in the $134.5 Billion Bearer Bond Mystery

Excellent article and perspective. Fortunately, we don't have to worry about internal counterfeiting to secretly expand monetary supply without public transparency or accountability. We have the FED!

Write, call fax and e-mail your local representative. Ask them to support the “Federal Reserve Transparency Act of 2009” (H.R. 1207). Audit the Fed. We need more transparency, not less. For more info visit www.opencongress.org/b...

Fed Fuels Inflation Worries to Avoid Deflation? Whatever Works

Stop complaining and get involved. Write, call fax and e-mail your local representative. Ask them to support the “Federal Reserve Transparency Act of 2009” (H.R. 1207). Audit the Fed. We need more transparency, not less. For more info visit www.opencongress.org/b...

The Geithner-Summers Proposal: Today's Foundation, Tomorrow's Crisis

www.opencongress.org/b...

The Geithner-Summers Proposal: Today's Foundation, Tomorrow's Crisis

Stop complaining and get involved. Write, call fax and e-mail your local representative. Ask them to support the “Federal Reserve Transparency Act of 2009” (H.R. 1207). Audit the Fed. We need more transparency, not less.

Bankers & Brokers Have Learned Nothing From the Current Crisis

Speedspirit makes a good point about the lesson the taxpayers should have learned. What I find disappointing with the whole situation is that the vast majority of Americans were screaming at the tops of their lungs to their representatives to NOT bail out the banks. And, at the end of the day congress overwhelmingly approved this action. Now, how can the taxpayers teach any lessons to the banks when they own our government? The people have been trampled. The system is corrupt.

I believe that we do have a fairly educated and intelligent population. Unfortunately, most people are so busy trying to make a living that they have no time to follow the steady steam of crimes being perpetrated. So, they rely on the main stream media to keep them informed about current events. Thank god for the media. Right now the top article on Yahoo news is “'Model' judge axed for 'ego'”.

The parasites will continue to feed off the general population taking enough to keep themselves fat and bloated while not taking so much as to completely kill the host.

Is it obvious that I am angry? I hope so. You should be too!

The Federal Reserve Can Not Account for $9 Trillion in Off-Balance Sheet Transactions?

To user396040,

When someone controls the supply of money, they can potentially/essentially control the value of the money in your pocket. So, I would definitely say that any money printed by the FED is taxpayer money!

Commercial Real Estate Likely to Usher In Next Leg of Financial Crisis

What would be interesting to see is the value of the expected default rate and how that maps against the bailout money that banks have/will receive. I would hope that the "stress test" takes commercial loans into consideration. But, I suppose that too depends on how much you can trust the results of the test.

Plunge Protection Team Attacks BofA: This Ends Now

Wow, you're one angry dude! Its good to see. It's only because you walk with eyes opened. If more Americans were angry we would actually have some hope for real meaningful change. Now that's what animal spirits mean to me.

Why BAC Will Beat: Understanding a New Bull Market Is Not Underway

While I agree that the markets and regulating agencies have always been corrupt, NEVER in my lifetime have I ever witnessed the amazing and unbelievable theft which is taking place. I sometimes worry about a thief entering my house in the night and stealing all my possessions. Yet, if the thief took everything from my home, they would not have stolen anywhere near the wealth the government is taking from me with their bailout actions.

The media draws our attention to pirates, but they purposefully avoid the real story which has been put into play by both democrats and republicans. We are being robbed and we must keep the focus where it belongs.

Good article. I couldn’t agree more.

On Jim Rogers and False Statements

Jim is absolutely right.

I am a simple man with basic skills. I can add, subtract, multiply, and divide. I even know something about compounding interest. With these basic skills I could tell that something was not right in the housing market.

The banks, insurance companies, fed, etc. have MBAs. They have an army of MBAs. They employ teams of financial Einsteins to monitor every aspect of our economy. They have access to Googlebytes of economic data lighting up screens in control rooms which make Nasa’s mission control look like an elementary school computer lab. The computational power these systems possess is awesome. They have the WOPR. They play financial war games all day running scenario after scenario in less time than it takes to blink an eye.

Am I really supposed to believe that the leaders of banks, insurance companies, and government did not see something serious like the housing bubble coming?

I am one of those homeowners who lived a very modest life in a very modest home. I watched the economy. I studied. I planned and saved. I played by the rules as an honest, hard working, tax paying citizen. I waited patiently for the day that the bubble would burst so that I could pick up the pieces. Meanwhile, I personally know several people who lived large on credit, had a good time, and owned huge houses with huge mortgages. They laughed that I lived so conservatively. They sneered as though they were somehow better than me because of all the material possessions they had amassed (on credit).

Now they are underwater and I AM BAILING THEM OUT AGAINST MY WILL! They are keeping their houses (which are much more luxurious than mine) and so they still laugh at me. To add insult to injury, it is us tax payers who bail out banks and insurance companies whose management walk away from all this with staggering amounts of cash still in their pockets.

The moral hazard here is that responsible, good natured people will begin to realize that crime really does pay and will start looking for ways to game our corrupt system.

It is no longer about losing confidence. It is about losing hope in the legitimacy of our system.

I do not believe we can just let everything fail outright. But we do need a controlled demolition of our insolvent institutions and those responsible must be made to pay.