Archive for the Federal Reserve Category

Litigation:  “Recreational”, “Sport” And  “Diversionary” . . . And The “Department Of Just-Us” (December 21, 2015)

Posted in Banks and Banking System, Courts, Department of, Federal Reserve, Russia, Sports, Wall Street on December 21, 2015 by e-ssay.org

. . .

K          “The definition varies yet ‘Recreational Litigation’ is usually defined as an unfounded claim or defense advanced by someone with unlimited funds who uses bullying techniques to harass and often bankrupt a small and often defenseless person or entity for grins.”

J          “Or for some ulterior purpose.  I call it ‘Sport Litigation’ because it is so unsporting.  The ‘Department of Just-Us’ is the richest and most powerful player in the American Legal Game.”

K          “FIFA is corrupt to the core.  So is Wall Street.  The United States has no business investigating and prosecuting FIFA corruption.  The United States does have legitimate business investigating and prosecuting Wall Street corruption.”

J          “‘Sport Litigation’ is the felicitous term.”

K          “I may be wrong, yet I have this nagging suspicion that the government may be trying to pressure FIFA not to allow Russia to host the 2018 FIFA World Cup.”

J          “Prostituting the Beautiful Game.  Ugly.”

. . .

K          “The ‘Department of Just-Us’ as you call it long ago served notice that the banksters are above and beyond the law.  The FIFA case may be a way for the ‘Department of Just-Us’ to serve notice that anyone who gets out of line will get it.  And also to distract us from the real problems and the real danger.”

J          “The ‘Department of Offense’ is engaged in endless wars and fear generation to distract us from the inevitable consequences of the actions and inactions of their friends and comrades at the ‘Department of Treasure’ and the Federal Reserve.”    

K          “What about describing it as ‘Diversionary Litigation’ designed to make the public believe that evil foreigners are being prosecuted while actually diverting attention from the real problems and the real danger.”

. . .  

[See the e-commentary at Schooling The Apparatchiks For The Kleptocrats (December 7, 2015).]

Bumper stickers of the week:

“The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobgoblins, all of them imaginary.”  H. L. Mencken

May the farce be with you.

Savor the solstice; Nature still sustains.

To Raise Or Not To Raise? (December 14, 2015)  

Posted in Bureaucracy, Federal Reserve, Interest Rates, Movie Reference, Sports, Wall Street on December 14, 2015 by e-ssay.org

. . .

1          “That is the answer.”

2          “They can’t raise it, they can’t maintain it, they can’t lower it.  They are not in a stalemate because they are in checkmate.”

1          “Game over?”

. . .

2          “A decision not to decide is a decision.  The Fed has been deciding not to decide and has decided to destroy the real economy since at least 2008.  If they decide to raise the rate a nominal .125 or .250 percent, they may be able to get away with it.  Anything more substantial will tip over this unreal and surreal economy of their contriving.  Interest rate derivative swaps will strain, fragile emerging markets will sag and the federal government will be forced to spend more of the budget on interest payments.”

1          “They are said to need to show that they are tough guys and gals who are trying to return to a real economy.  They are said to need to establish ‘Wall Street cred’.”

2          “They have no ‘Main Street cred’.  At least among the few dozen folks who give a cred.”

. . .

1          “So will they raise the interest rate?  Yes or no?  If they do, how much?  .125?  .250?”

2          “The question is not ‘will’ they but ‘should’ they raise the interest rate.”

. . .

1          “A betting pool.  There you go.  We might as well have fun.”

2          “No they should not.  .125 to appear to be doing something.  The effective rate now may hover near an average of .100, so they may be able to do something without doing anything.”

1          “Maybe.  .250 to feign cred.  And then be able to reverse gears.”

2          “See we shall.”

. . .

[See the e-commentary at Interest Rates ‘risin (March 30, 2015).]

Bumper stickers of the week:

“Do.  Or do not do.  There is no try.”  Yoda

What happens when you run out of altitude, airspeed and ideas all at the same time?

Otter:  “I think this situation absolutely requires a really futile and stupid gesture be done on somebody’s part.”

Bluto:  “We’re just the guys to do it.”

                                                    “Animal House” movie (1978)

Fed up yet?

“In life, unlike chess, the game continues after checkmate.”  Isaac Asimov

They Can Print Money (November 2, 2015)

Posted in Bail In, Bailout/Bribe, Bankruptcy, Banks and Banking System, FDIC, Federal Reserve, Kleptocracy, TARP, Wall Street on November 2, 2015 by e-ssay.org

. . .

Q          “The FDIC can simply print money.”

B          “Maybe.  However, the response to the Big Jolt may be . . . nuanced?  By the government?  Let me explain.  Or at least confuse the issue.”

. . .

Q          “By any metric – economically, morally, psychologically, ethically, metaphysically, generationally – TARP was a grand fraud perpetrated on the American people.  And the central message is crystal clear – everyone in power knows that there are no limits or restraints of any kind to government criminality at the top.  They can simply print money.”

B          “Maybe.  During what I call the Financial Crime of 2008, the government could have nationalized the banks, but those in power allowed the banks to nationalize the government, in particular the Federal Reserve and the Treasury Department.  The Fed and Treasury now have carte blanc to do anything that serves the interests of their Owners on Wall Street and with the Big Banks.  However, the FDIC may not have that absolute freedom and immunity from liability and accountability.  The bureaucrats in the bureaucracy at the FDIC bureaucracy may behave like bureaucrats.  Some risk-averse bureaucrat may seize up and say that she or he will not make the decision to commit the agency to exceed its authority because he or she may not have enough stroke to obtain immunity.”

Q          “The most risk-averse course of action still is to print money or create electrons.”

B          “Maybe.  The Owners have agreed that ‘bail ins’ are the answer to their self-created problem.  At some point, however, even J. Q. Public may say ‘bastante’ and swing by the bank and demand his or her deposits.” 

Q          “They will hand out a plastic card in lieu of physical cash.  Print money or produce plastic.  There is no difference.”

. . .

B          “Maybe.  Except that the fundamental problem today is not liquidity, it is solvency.  The system is insolvent.  Printing more money is akin to distributing cigarette butts.  The bucks, like butts, soon will not be cherished.”

Q          “At that point, we may be bartering cigarettes.”

B          “Maybe.  If they are available.”

. . .

[See the e-commentary at (M)End The Fed (July 11, 2011).]

Bumper sticker of the week:

Give a man a gun and he can rob a bank; give a man a bank and he can rob the world

USA, FDIC, Or NCUA? LCU? SPCU? (October 19, 2015)

Posted in Bail In, Bailout/Bribe, Banks and Banking System, Boycott Series, Collapse, Credit Unions, Debt/Deficits, Depression, Dollar - World's Reserve Currency, Federal Reserve, Gold, International Finance, Kleptocracy, Money, SDR - Special Drawing Rights, Silver on October 19, 2015 by e-ssay.org

. . .

B          “I want out of the Racket – the stock market Racket.  I want to hold my deferred compensation in the form of dollars, for what they are worth.  As I see it, Treasury Bills and Treasury Bonds are allegedly protected by the ‘full faith and credit’ of the United States.  What is that worth?  When the Big Jolt hits, what is Uncle Sam’s telephone number?  Or e-mail address?  unclesam@unclesam.gov?  A general promise by the Uncle when I have full faith that the credit of the United States is sketchy, provisional and conditional at best.  I won’t touch Treasury Bills or Treasury Bonds.”

C          “Another hollow and worthless promise.  I won’t touch Treasuries and refuse to deposit money in a bank.  The FDIC (Federal Deposit Insurance Corporation) allegedly provides insurance for banks, yet the agency is ‘stressed’ to put it mildly and will not pay all claims in the event of a significant bank run.  The NCUA (National Credit Union Association) allegedly provides insurance for credit unions and may provide some insurance protection for some time for some depositors.  I am willing to make a tentative commitment to the system and keep some of my funds in my Local Credit Union (LCU).”

B          “Depositing a healthy chunk of money in the Sealy Posturepedic Credit Union (SPCU) involves little counterparty risk and allows me to sleep peacefully at night.  When the Big Jolt hits, there will not be enough physical dollars.  Regular folks may accept regular dollars for two related reasons – inertia and habit – until the shock triggers them to do something and change their habits.  Regular folks will accept the few available physical dollars for four or six or eight weeks for transactions as long as other citizens accept dollars for transactions.  Then regular folks will only accept Sacagawea dollars and some coins for a few weeks, although coins like dollars of any kind are in short supply today.  After a few more weeks, some informed folks will accept silver coins minted before 1964 at a premium.”

C          “In the end, the Depression is our guide.  Twelve gauge shot gun shells may be another medium of exchange and twenty-two rounds may be used as change to support the emerging barter economy.  Cash of any kind is the threat to the those who run System.  The government now requires banks to obtain and record the identity of anyone making a cash deposit and are refusing to accept cash for some payments.”

B          “Banks do not need deposits to be able to loan money.  Yet today many banks are offering gimmicks and gewgaws to attract funds that they will be able to retain during a ‘bail in’ without any obligation to the depositor.”

. . .

C          “Junior’s paper route money stored in his piggy bank may be our only available liquid asset.”

B          “She may not stand for us withdrawing some of the Standing Liberty quarters from the collection she has accumulated with her baby sitting money.”

C          “We may need a bushel basket of Wheat Pennies to buy a pocketful of wheat.”

B          “When the banks are maneuvering to avoid a haircut, we may be required to go to our Barbers.”

. . . 

[See the e-commentary at Preserve Cash; Preserve (Some) Privacy (May 4, 2015), “Bail Ins” Are Globalized; “Bail Outs” Are Bailed Back In; No Bail For Bankers (December 29, 2014), Globalizing The Bail In (July 8, 2013), Bailouts: Out; Bail Ins: In; Slowly Boilin’ The Frog (April 15, 2013), Money “In The Bank” Or “Under The Mattress” (October 8, 2012), Boycott Big Banks – Vote Your Dollars (November 21, 2011), and Boycott Big Banks (February 1, 2010).]

Bumper stickers of the week:

The U.S. government is pursuing an international currency war and a domestic war on currency.

SPCU/You > LCU/NCUA > Bank/FDIC > Uncle Sam/FF&C

Interest Rates ‘risin’? (March 30, 2015)

Posted in Bail In, Banks and Banking System, Credit Unions, Debt/Deficits, Federal Reserve, Stock Market on March 30, 2015 by e-ssay.org

. . .

1          “Can they.”

2          “May they.”

1          “Could they.”

2          “Should they.”

. . .

1          “The Federal Reserve cannot allow interest rates to rise because the Federal Government would be obligated to pay staggeringly more interest to service the ever metastasizing National Debt.”

2          “Someone in the Bureaucracy must be sober enough to realize that a rise in rates will trigger profound and devastating economic and financial consequences.  Everyone will need to look up the word ‘derivatives’ in the dictionary.”

1          “I could see the Federal Reserve raising rates by ‘25 basis points,’ as they say, to show that they cannot do nothing.  If they appear effete, they are effete.” 

2          “Even a quarter percent rise may be enough to tip over the economic and financial game.  Perhaps in desperation the Fed can generate real inflation then the Federal Government can pay the interest on the National Debt with deflated dollars . . . which reduces the real cost to the Government.”

1          “The Federal Reserve does what it wants to do, but its primary mandate is to maintain price stability.  Inducing gross price instability is directly contrary to its raison d’etre.  But then, do they care?”

. . .

2          “The dollars may not be worth anything in a few years, yet I will not pay money to store my money in a bank and also risk having my money confiscated by the bank to pay the debts of the bank.”

1          “When they slither from the ZIRP – zero interest rate policy – to the NIRP – negative interest rate policy – and start charging me to keep my deposits in their failing financial institutions, I am tucking all of my money in the Sealy Posturepedic Credit Union.”

. . .  

[See the e-commentary at Money “In The Bank” Or “Under The Mattress” (October 8, 2012).]

Bumper stickers of the week:

Compound interest is described as the greatest invention of the 20th Century, yet it may be the most vexing challenge confronting governments in the 21st Century.

“The first panacea for a mismanaged nation is inflation of the currency; the second is war.  Both bring a temporary prosperity; both bring a permanent ruin.  But both are the refuge of political and economic opportunists.”  Ernest Hemingway, “Notes on the Next War:  A Serious Topical Letter,” Esquire, September 1935

What goes down must go up?

ZIRP (Zero Interest Rate Policy) = Official National Policy . . . for all time?

NIRP (Negative Interest Rate Policy) = the straw that breaks

Quantitative Easing = Money Printing (January 19, 2015)

Posted in Deflation, Economics, Federal Reserve, Inflation, INFORM Act, Money, Quantitative Easing on January 19, 2015 by e-ssay.org

. . .

A          “‘Quantitative Easing’ sounds so academic and antiseptic and . . . surely sound.”

B          “And nebulous enough to fool a frightened public that does sense that something is wrong.”

A          “When you cannot do anything positive and you feel a compulsion to do something, should you do something negative?”

B          “It is doing something.”

. . .

A          “The Federal Reserve has been ‘printing’ more money and passing it to the wealthy for a half-dozen years.  The money is not making a demand on resources right now, so there is no systemic inflation yet other than rises in the prices of basic necessities.  The general public does not have enough money to make substantial demands on resources, so some prices are even heading down.  The Federal Reserve ‘electrons’ are driving up the stock market and leading some to conclude that all is good in the land.  When the money meanders into the economy and begins to make demands on resources that also may be in short supply, prices will go up.”

B          “Limited deflation then inflation if not hyperinflation.  Coming to a nation near you.”

. . .

A          “When someone discovers that printing money is the problem, how will the Federal Reserve react?”

B          “‘Print’ more money.”

. . .

[See the “Intergenerational Financial Obligations Reform Act” (INFORM Act) discussed at http://www.theinpformact.org/.]

Bumper stickers of the week:

Quantitative Easing:  Coming (Back) To A Nation Near You

Quantitative Easing 4 = Money Printing (4th Edition) ?

Print, baby, print

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.

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