Archive for the Federal Reserve Category

The Federal Government, In Practice (September 15, 2014)

Posted in Banks and Banking System, CIA, Civil Rights/Civil Liberties, Congress, Courts, Federal Reserve, Judges, Judicial Arrogance, Judiciary, National Defense Authorization Act / FY 2012, Presidency, USA PATRIOT Act on September 15, 2014 by e-ssay.org

. . .

S          “So the Founding Fathers are blamed for and credited with many things.  Everyone agrees they were inspired by Montesquieu’s notion of the separation of powers providing for executive, legislative and judicial functions.  The division of labor and duties seems so clean and elegant in your civics class.  Yet, in practice, the process is so tainted and untidy.”

T          “In my class, I try to tidy up the mess.  I present this outline of the grand plan on the board to spark discussion:

Post 1787:          Theory:     Practice:

President            34%           30% (implement laws)
Congress             33%           60% (make laws)
Judiciary             33%           10% (interpret laws)
National Bank      0%             0% (inspire debate)

The judiciary was little more than an administrative agency with possibility until the Supreme Court developed the doctrine of judicial review in Marbury v. Madison in 1803.  The political plate tectonics shifted and now we have:

2014:

President                             44% (determines most major domestic and foreign policy initiatives)

Congress                              21% (drives economic activities via substantial ad hoc spending largely for defense, interest and entitlements)

Judiciary                              35% (makes laws)

Federal Reserve                 33% (the private bank with the misleading name establishes monetary policy and directs fiscal policy by default because of Congressional grid lock and thus effectively runs the economy, with little public participation)

National Security State    39% (shapes domestic and foreign affairs via a motley and myriad montage of agencies, contractors, sub-contractors and others with little oversight)

S          “So sixty-eight percent of government policy is imposed by federal judges and the Federal Reserve Board of Governors/Big Bankers who are not elected.”

T          “The Founding Fathers are said to have been anti-democratic.  I know they would be surprised at what has emerged in practice in America.”

S          “So thirty-nine percent of domestic and foreign surveillance and activities are determined by unknown and unaccountable agents and operatives.”

T          “Who knows.”

. . .

S          “So we need to track the federal Debt which is now over 17 Trillion dollars and also the Federal Reserve Debt which is now over 4 Trillion dollars.”

T          “While you are at it, try to fathom the 100s of Trillions of dollars in derivatives that were never on the Founding Fathers’ radar and are off the public radar today.”

S          “That fraud will doom the Republic some day.”

. . .

S          “So the Big Bankers favor war because it is so profitable, so the large number of Big Bankers in power results in an over-production of war.”

T          “Accord.”

. . .

T          “Republicans want a powerful ‘unitary’ President when a Republican is in the White House and an effete President when a Democrat is in the White House.”

S          “And everyone agrees that federal judges are politicians in black robes.”

T          “Accord, young scholar.  See why this is so much fun.”

. . .

[T:  Teacher; S:  Student]

Bumper stickers of the week:

The Declaration of Independence is America’s Original Organic Poem.  The Constitution is America’s Owners’ Manual.  Signed on September 17, 1787.

There is no law.  There is only ideology.

Don’t Fight The Fed; Fight The Fed (August 4, 2014)

Posted in Federal Reserve, Society, Stock Market on August 4, 2014 by e-ssay.org

. . .

K          “As an investor, ‘Don’t Fight the Fed.’  The Fed is creating and flooding the market with digital dollars and spawning an otherwise unfounded rise in the price of stocks.  Surf the collective delusion, but gauge when the Fed has played its hand and then beat the flood of funds out of the market.”

J          “Ya gotta know when to fold ‘em.”

. . .

K          “As a citizen, ‘Fight the Fed.’  The Fed is the banker’s private club that profoundly and often negatively impacts the economy and lives of every ordinary American with desperately little public input.”

J          “Ya gotta know when to hold ‘em.  Accountable.”

. . .

J          “So just when do I fold ‘em?”

. . .

Bumper stickers of the week:

Don’t End The Fed, Do Mend The Fed

The Fed:  Lifting the yachts but not the tugboats and rowboats.  Since 1913.

Unemployment Insurance = Welfare 2.0 (June 23, 2014)

Posted in Federal Reserve, Insurance, Journalism, Military, Newspapers, Pensions, Personal Story, Press/Media, Unemployment, War, Welfare, Work on June 23, 2014 by e-ssay.org

. . .

E          “They are not coming back.”

U          “And they keep coming.”

. . .

E          “After the War, he moved the family westward from the homestead bequeathed to his older brother to a community with no friends and no connections and moved upward from one manufacturing job to another and then retired as a floor manager.  He put food on the table and kids through college.  He said that all the companies he worked for have gone out of business or moved overseas.  Most of the pension funds were dissipated or disappeared.”

U          “Those returning from the current wars are not finding opportunities.  Those who stayed have not found opportunities.”

E          “Years ago, some guys worked at a service station checking the tires and washing the windows and graduated to a mechanics job for life.  Now there is no service and far fewer mechanics positions.”

U          “Yesterday’s grease monkey with a G.E.D. is today’s barista with a B.A.”

. . .

E          “Many of the jobs are undertaken by a robot that may never craft an inspiring poem or participate in a parent-teacher conference, yet it produces a consistently high quality product very efficiently.”

U          “A company can use the robots to fine-tune the built-in obsolescence.  The product can be designed and manufactured to fail ten minutes after the limited warranty expires.  And robots are not the most efficient consumers of their own products.”

. . .

E          “The Federal Reserve is untethered by the Constitution, Congress or common sense except for a mandate in the Humphrey-Hawkins Full Employment Act to address unemployment in its decision-making.  The Fed has knowingly pursued decisions that do nothing to promote employment and do much to transfer wealth to the wealthy.”

U          “The Republicans respond with the obscene lie that a reduction in the capital gains rate will reduce unemployment.  The Press almost always gives them a pass.”

. . .

E          “Unemployment insurance originally covered thirteen weeks and then twenty-six weeks and then up to seventy-three weeks in many jurisdictions.  Some are calling for further extensions of unemployment insurance.”

U          “The insurance is becoming a tenuous version of ‘Welfare 2.0.’”

. . .

E          “What happens when thoughtful people realize that the jobs are never coming back.”

U          “The unemployed are categorized under the ‘U6 Unemployment’ category and forgotten.”

. . .

Bumper stickers of the week:

Get a job

Where?

Debasing The Dialogue (April 14, 2014)

Posted in Federal Reserve, Foreign Policy, Greenspan, Journalism, Newspapers, Press/Media, Yellen on April 14, 2014 by e-ssay.org

. . .

C          “Too much commentary today is an ‘elbow-jerk’ cut and paste operation.  The citizen who questions whether the government should subsidize and encourage the crimes of the bankers and financial brigands is branded a ‘populist’ and a promoter of ‘populism’.”

D          “Populist notions should be more popular.  The dismissive missives also include a subtext that the person does not really understand economics, business and finance.  Just trust that the emperor is sporting natty attire and doing good and go on your way.”

C          “The blue serge suit hides the red devil.  Time magazine published a fawning piece in February, 1999 about three brigands – Summers, Greenspan and Rubin – and failed to warn the reader let alone even acknowledge the fraud these characters were fomenting on the public.”

D          “At least Yellen is a gal.  God and others know that the boys just do not get economics, business and finance.  They know how to exploit and plunder, but not how to contribute and develop.”

C          “She is doing things the same old way without acknowledging the fundamental problems.”

D          “The same old, same old is getting old.”

. . .

C          “The citizen who questions whether the United States should be aggressively engaged in a variety of wars with no real goal or strategy is dismissed as an ‘isolationist’ and a promoter of ‘isolationism’.”

D          “And of course not a realist or a highly coveted Realpolitiker.  And not someone whose contentions should be considered by reasonable folks.”

C          “Some people want to drop bucks and some people want to drop bombs.”

D          “We dump bucks and bombs.  Some folks are troubled that we finance dictators and then in time attack them.”

. . .

D          “Kill ‘em all and let God sort ‘em out seems to be the policy.”

C          “For some characters, blind ideology controls.  The issue turns on whether God is in the public sector or in the private sector.”

D          “Now there is one for you. God qua contractor.  Miller Act bonds and Davis-Bacon wage scales would drive God batty.  I can see the headline now: ‘God Overbills For Sorting Them Out: Congressional Inquiry Scheduled.’”

. . .

Bumper stickers of the week:

Kill ‘em all and let God sort ‘em out

Keep calm and panic

The Fed at 100 (December 23, 2013)

Posted in Bailout/Bribe, Banks and Banking System, Bernanke, Federal Reserve, Kleptocracy, Stock Market on December 23, 2013 by e-ssay.org

. . .

A          “We celebrate the birthday of our financial savior today and of our spiritual savior on Wednesday.”

B          “Birthday cards and candles are flying off the shelf.” 

A          “Congress passed the Federal Reserve Act on December 23, 1913 a few seconds before heading home for the holidays and a few minutes before President Wilson signed the legislation.  You wonder if they had a clue.”

B          “Most folks don’t have a clue, but what do you do.  Most folks look uncomfortably bewildered if you even allude to the Fed.  Someone who is uncomfortable with a topic does not readily come around.”

A          “They are more comfortable talking about the Football League than about the Federal Reserve.”

B          “The great debate on a national bank was lost a hundred years ago.  We need a great debate today.”

A          “The Fed is really out of control, but the wealthy are getting wealthier, so no one cares.”

B          “Congress provided some policy direction when it required to Fed to consider the level of employment in its calculus.  The Fed’s policies and decisions over the last decade have done nothing to improve employment, yet there is no sanction or penalty in the Congressional legislation.”

A          “The Fed has done more to promote the greatest transfer of wealth to the already wealthy than at any other time or in any other place in history.”

B          “The money is collecting in the Swiss bank accounts of the wealthy.  When and as the money slips from the virtual into the real economy, measured inflation will go up.”

A          “Seems to me that inflation will be exacerbated by a reduction in the supply of goods brought about by a breakdown in production and distribution.”

. . .

A          “The Fed is not the fourth branch of government, it is the first branch.”

B          “The To-Big-To-Fail-Or-Jail Banks are the first branch of government and they own the Fed and the government.”

. . .

A/B       “What will blow out the candles?”

. . .

[See the “e-ssays” collected in the Category “Federal Reserve” at http://e-commentary.org/category/federal-reserve/.]

Bumper stickers of the week:

Now that the banks have privatized the government, the government will never nationalize the banks.

If one person amassed 99.999999999999999999999999 percent of the income and wealth in America, would anyone notice?

Capitalize the gains; socialize the losses.

Kleptocracy, Inc.: Rebranding America (November 18, 2013)

Posted in Awards / Incentives, Bailout/Bribe, Banks and Banking System, Bernanke, Economics, Economics Nobel, Federal Reserve, Kleptocracy, Stock Market on November 18, 2013 by e-ssay.org

. . .

A          “‘Go Kleptocracy, Inc. Go’ doesn’t have the same ring as ‘Go U.S.A. Go.’”

B          “You could replace the stars with dollar signs and the stripes with universal product codes to reflect the monetization of America.  Rally ‘round the ‘Dollar Signs and Bar Codes’ does not alliterate the way rally ‘round the ‘Stars and Stripes’ does.”

A          “And doesn’t sound right, does it.”

B          “To say that everything is a lie and a fraud is an understatement.”

A          “Almost everything is a lie.”

B          “That may be closer to the truth.”

. . .

B          “A kleptocracy is an oligarchy that no longer is even vaguely concerned about even the pretense of evenhandedness or equality.”

A          “That’s it; that’s us.”

. . .

B          “And yet so many commentators point to the Dow that topped 16 Grand for a time today.”

A          “It’s over the top.  The rise is so tightly correlated with the monthly eighty-five billion dollar ($85,000,000,000.00) bribe paid by the Federal Reserve to the Big Banks.”

B          “What if they doubled the bribe to one hundred and seventy billion dollars ($170,000,000,000.00) each month paid to the Big Banks.  Why not.  Everything is a fraud and a lie and a fraud.”

A          “The crash will be even more epic.”

. . .

A          “One of the former Federal Reserve officials confessed and apologized for the program known as ‘quantitative easing’ as the ‘greatest backdoor Wall Street bailout of all time’ with little real economic expansion.  Bernanke* is a nice guy who has really done little more than dispense bribes to Big Banks.”

B          “Like Bernanke*, Jellen may be the best this talent-starved kleptocracy can produce.  She will continue the official Federal Reserve policy of dispensing bribes to Big Banks.”

A          “In her testimony, she assured Wall Street and the Big Banks that she will maintain their primacy and hegemony.”

B          “Congress charged the Federal Reserve with considering employment.”

A          “The Fed is mindful of the impact of its bribes on employment on Wall Street.”

. . .

A          “What if he went out like former President Eisenhower and delivered a warning about the perniciousness of the financial industrial complex?”

. . .

A          “The answer is so obvious and so easy.  Preclude any bank from holding more than one hundred billion dollars ($100,000,000,000.00) in assets.”

B          “The Big Banks will never approve that action by the Federal Reserve.”

. . .

A          “The Norwegians do not help when they dispense their trophy to the cheer leaders who put a cheery façade on the fraud.”

B          “And the e-con-omics departments oblige by providing a steady pipeline of obedient sycophants.”

. . .

[See the article titled “Andrew Huszar: Confessions of a Quantitative Easer” at http://online.wsj.com/news/articles/SB10001424052702303763804579183680751473884.].

[See the “e-ssays” titled Greenspan’s Legacy – Apres moi, Le Meltdown (January 30, 2006), The Dow Jones (the Murdoch ?) Hits 14 K In A Hollow Economy (July 23, 2007), A Bleak Day: The Trillion Dollar Tragedy (October 6, 2008), The TARP Is A Trap (January 19, 2009), The Bush Grand Slam (February 14, 2011) and (M)End The Fed (July 11, 2011) concluding with a draft Federal Reserve Enforcement Order that Janet Jellen could issue in her first few weeks on the job.]

Bumper sticker of the week:

In Greed We Trust

September 15, 2008 – The Date That Should Live In Infamy (September 16, 2013)

Posted in Bailout/Bribe, Banks and Banking System, Economics, Federal Reserve, Kleptocracy, Occupy Movement on September 16, 2013 by e-ssay.org

. . .

C          “Five years ago in the morn, Senator McCain, the pundits and the powerful proclaimed that the fundamentals of the economy were sound.”

D          “Didn’t seem that way to me then.  Doesn’t seem that way to me now.”

C          “Didn’t seem that way even to them in the afternoon.  Those running the game realized that the hollow economy could not be propped up with lies and smoke and mirrors.  September 15 is the date that should live in infamy.”

D          “If market forces had been allowed to continue without the TARP and other interventions, the current generation would have endured its excesses rather than heaping them on the younger generations.”

. . .

C          “And two years since the emergence of the Occupy movement.  The folks shared a concern that something is wrong with the economic and political game even if they could not explain the problems or advance the solutions.”

. . .

D          “No one has ever audited the Federal Reserve.”

C          “Some companies claim to have paid back some of the government loans, but who really knows.”

D          “No one has ever been prosecuted except a few unconnected fools and Madoff who made the mistake of purloining from the powerful.”

. . .

C          “The Dow’s new highs are a sign of peril not of promise.  As long as the Federal Reserve keeps fabricating phony funds, the Dow will keep providing phony figures.”

. . .

C          “All the counterparty agreements are essentially insurance policies.  An insurance company is required by law to provide adequate reserves to satisfy possible claims.  Every concerned citizen should have reservations about an insurance scheme with no regulation or even reserves.”

D          “Insurance companies have historically been regulated by states.  The most likely state to regulate the financial industry – New York – has no incentive to regulate and every incentive to allow unregulated criminality.  New York is profiting handsomely from the criminality,”

C          “Laissez faire, they say.  Those in power are too lazy to create a fair economic system.”

D          “The same old same old.”

C          “The same old same old.”

D          “The same old same old is getting old.”

. . .

[See the “e-ssays” under the Category “TARP” at http://e-commentary.org/category/tarp/ and any of a few dozen “e-ssays” presented in the last nine years on the economy.  See the “e-ssays” under the Category “Occupy Movement” at http://e-commentary.org/category/occupy-movement/.]

Bumper stickers of the week:

A system that cannot go on forever will not go on forever.

“Twenty-five years ago, I worked there during the summers for $7 an hour and now my son works there part-time for $7.75 an hour.”

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