Posts Tagged ‘fed’
pt 2/4 FED sued over Gold Price manipulation | GATA roundtable on KWN
March 2nd, 2010 | 
Author: 
http://www.kingworldnews.com
The Gold Anti-Trust Action Committee was organized in January 1999 to advocate and undertake litigation against illegal collusion to control the price and supply of gold and related financial securities. The committee arose from essays by Bill Murphy, a financial commentator, and by Chris Powell, a newspaper editor in Connecticut, published at Murphy’s Internet site, lemetropolecafe.com. In this GATA roundtable interview we will have Chris Powell, Bill Murphy and Adrian Douglas.
GATA today brought suit against the U.S. Federal Reserve Board, seeking a court order for disclosure of the central bank’s records of its surreptitious market intervention to suppress the monetary metal’s price.
The suit was filed in U.S. District Court for the District of Columbia and targets Fed records involving gold swaps, exchanges of gold with foreign financial institutions. In a letter dated September 17 this year to GATA’s law firm, William J. Olson P.C. of Vienna, Virginia, (http://www.lawandfreedom.com) Fed Board of Governors member Kevin M. Warsh acknowledged that the Fed has gold swap agreements with foreign banks but insisted that such documents remain secret:
http://www.gata.org/files/GATAFedResp…
The lawsuit follows two years of GATA’s efforts to obtain from the Federal Reserve and the U.S. Treasury Department a candid accounting of the U.S. government’s involvement in the gold market. These efforts parallel those of U.S. Rep. Ron Paul, R-Texas, who long has been proposing legislation to audit the Fed. The Fed has wrapped in secrecy much of its massive intervention in the markets over the last year, and Paul’s legislation recently was approved by the U.S. House of Representatives.
Duration : 0:10:0
Posted in foreign markets | 
Tags: Adrian, audit, ben, Bernanke, bill, celente, china, civil, Crisis, deception, Douglas, Fall, fed, federal, FIAT, food, GATA, gerald, Germany, gold, hyperinflation, Inflation, Investment, King, lawsuit, market, money, Murphy, News, obama, of, oil, Paul, peter, Powell, report, republic, reserve, Ron, schiff, silver, soros, stagflation, stated, stock, The, United, unrest, weimar, World | 
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pt 1/4 FED sued over Gold Price manipulation | GATA roundtable on KWN
http://www.kingworldnews.com
The Gold Anti-Trust Action Committee was organized in January 1999 to advocate and undertake litigation against illegal collusion to control the price and supply of gold and related financial securities. The committee arose from essays by Bill Murphy, a financial commentator, and by Chris Powell, a newspaper editor in Connecticut, published at Murphy’s Internet site, lemetropolecafe.com. In this GATA roundtable interview we will have Chris Powell, Bill Murphy and Adrian Douglas.
GATA today brought suit against the U.S. Federal Reserve Board, seeking a court order for disclosure of the central bank’s records of its surreptitious market intervention to suppress the monetary metal’s price.
The suit was filed in U.S. District Court for the District of Columbia and targets Fed records involving gold swaps, exchanges of gold with foreign financial institutions. In a letter dated September 17 this year to GATA’s law firm, William J. Olson P.C. of Vienna, Virginia, (http://www.lawandfreedom.com) Fed Board of Governors member Kevin M. Warsh acknowledged that the Fed has gold swap agreements with foreign banks but insisted that such documents remain secret:
http://www.gata.org/files/GATAFedResp…
The lawsuit follows two years of GATA’s efforts to obtain from the Federal Reserve and the U.S. Treasury Department a candid accounting of the U.S. government’s involvement in the gold market. These efforts parallel those of U.S. Rep. Ron Paul, R-Texas, who long has been proposing legislation to audit the Fed. The Fed has wrapped in secrecy much of its massive intervention in the markets over the last year, and Paul’s legislation recently was approved by the U.S. House of Representatives.
Duration : 0:10:0
Posted in foreign markets |
Tags: Adrian, audit, ben, Bernanke, bill, celente, china, civil, Crisis, deception, Douglas, Fall, fed, federal, FIAT, food, GATA, gerald, Germany, gold, hyperinflation, Inflation, Investment, King, lawsuit, market, money, Murphy, News, obama, of, oil, Paul, peter, Powell, report, republic, reserve, Ron, schiff, silver, soros, stagflation, stated, stock, The, United, unrest, weimar, World |
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Ron Paul: The Big Guns Have Lined Up Against H.R. 1207 (House Floor 7/30/09)
http://www.house.gov/paul
http://CampaignForLiberty.com
Mr. Speaker, the big guns have lined up against H.R. 1207, the bill to audit the Federal Reserve. What is it that they are so concerned about? What information are they hiding from the American people? The screed is: “Transparency is okay–except for those things they don’t want to be transparent.”
Federal Reserve Chairman Ben Bernanke argues that H.R. 1207, the legislation to audit the Federal Reserve, would politicize monetary policy. He claims that monetary policy must remain “independent,” that is, secret. He ignores history, because chairmen of the Federal Reserve in the past, especially when up for reappointment, do their best to accommodate the President with politically driven low interest rates and a bubble economy.
Former Federal Reserve Board Chairman Arthur Burns, when asked about all the inflation he brought about in 1971, before Nixon’s re-election, said that the Fed has to do what the President wants it to do, or it would “lose its independence.” That about tells you everything. Not by accident, Chairman Burns strongly supported Nixon’s program of wage and price controls, the same year; but I guess that’s not political. Is not making secret deals with the likes of Goldman Sachs, international financial institutions, foreign governments and foreign central banks, politicizing monetary policy? Bernanke argues that the knowledge that their discussions and decisions will one day be scrutinized will compromise the freedom of the Open Market Committee to pursue sound policy. If it is sound and honest, and serves no special interest, what’s the problem?
He claims that H.R. 1207 would give power to Congress to affect monetary policy. He dreamt this up to instill fear, an old statist trick to justify government power. H.R. 1207 does nothing of the sort. He suggested that the day after an FOMC meeting, Congress could send in the GAO to demand an audit of everything said and done. This is hardly the case. The FOMC function, under 1207, would not change. The detailed transcripts of the FOMC meetings are released every 5 years, so why would this be so different, and what is it that they don’t want the American people to know? Is there something about the transcripts that need to be kept secret, or are the transcripts actually not verbatim?
Fed sychophants argue that an audit would destroy the financial market’s faith in the Fed. They say this in the midst of the greatest financial crisis in history, brought on by none other than the Federal Reserve. In fact, Chairman Bernanke stated on November 14, 2007, that “a considerable amount of evidence indicates that central bank transparency increases the effectiveness of monetary policy and enhances economic and financial performance.”
They also argue that an audit would hurt the value of the U.S. dollar. In fact, the Fed, in less than 100 years of its existence, has reduced the value of the 1914 dollar by 96 percent. They claim H.R. 1207 would raise interest rates. How could it? The Fed sets interest rates and the bill doesn’t interfere with monetary policy. Congress would have no say in the matter; and besides, Congress likes low interest rates. It is argued that the Fed wouldn’t be free to raise interest rates if they thought it necessary. But Bernanke has already assured the Congress that rates are going to stay low for the foreseeable future, and, again, this bill does nothing to allow Congress to interfere with interest rate setting.
Fed supporters claim that they want to protect the public’s interest with their secrecy. But the banks and Wall Street are the opponents of 1207, and the people are for it. Just who best represents the “public’s” interest? The real question is, why are Wall Street and the Feds so hysterically opposed to 1207? Just what information are they so anxious to keep secret? Only an audit of the Federal Reserve will answer these questions.
Duration : 0:4:38
Schiff Report August 14, 2009
Schiff discusses retail sales, CPI, the markets, unfair political attacks.
Check my blog out at: http://ragingreport.blogspot.com/
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Duration : 0:10:0
Posted in foreign markets |
Tags: 14, 2009, 500, and, aug, ben, Bernanke, bubble, china, collapse, crash, Currencies, deficits, deflation, depression, dollar, doom, dow, down, Economic, economy, euro, faber, fed, foreign, gold, Inflation, jones, lending, Markets, oil, Paul, peter, recession, report, rogers, Ron, schiff, silver, spending, The, up |
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Where does the money go when prices collapse….
Feb 2009
Here’s a headline I believe we will be seeing more of….. “Stocks fall on grim company earnings”.
A few thoughts as to why, and maybe what to do about it……..
1. Not only is the economy continuing to slump, but the appetite for risk and speculative endeavour has been castrated. Is a P/E of 10 really still cheap…. or is it actually sinking in that it means paying ten times what a company earns in a full year just for the privilege of owning a paper stock certificate?
And if the company doesn’t pay a dividend, just how does one expect to realize those earnings? Step from behind the curtain ‘greater fool theory’, you are exposed at last as being the hidden engine behind extended bull (bubble) markets.
2. The dollar strength is killing (even unchanged) foreign earnings in dollars, subduing many of the commodity stocks over and above the economic effects. This is the opposite of what we saw when the dollar was in freefall and earnings were trumpeted as being tremendous.
3. There is less money chasing more stock – companies are issuing stock to raise cash just when vast amounts of capital are disappearing into ‘money heaven’. I have read several debates about what happens to money when stocks and assets decline, “for every buyer there is a seller”, etc. The key to understanding this, I believe, is to value paper and speculative assets at zero, which is ultimately what contribution they might be making to the money in circulation.
Take four people…. A, B, C, D. Each has $100 to create a mini-economy of $400, There is $400 in circulation.
Mr A paints a picture. Mr B likes it and pays him $100 to own it.
Mr A now has a picture – he values this picture at $100. He thinks he has $100 (‘invested’).
Mr B has $200 – his original $100, plus the $100 he received from art-enthusiast Mr A.
Messrs B & C have $100 each.
Apparent total – $500 if you include Mr A’s piece of art (stock investment, house, boat, etc) but no, there is just $400 in money and a gentleman who hopes that someone, someday, will exchange at least $100 of their dollars for his investment asset.
So, if the ‘art’ market crashes and no-one wants the picture then where does Mr A’s invested money go? What about the investment dollars he is holding in that wonderful canvas that nobody wants to buy?
The economy has collapsed, from $500 (the value including the picture as an asset) back to $400 (the fundamental value of the money and assets in the economy, as nobody now wants to speculate in art)
The $100 value of the painting never existed – it was a figment of imagination and assessment of the market. The picture is worth what someone will exchange for it. The dollars to pay come from the $400 in circulation…..unless new money is borrowed into the economy to increase it.
It takes just ONE transaction to revalue assets – all the other holders of such assets are affected even by doing nothing.
Apply that to the markets, real estate, art, cars and consumer goods and bingo – the money lost in asset values beyond their fundamental value is simply gone.
Add to that the cancelled debt (by repayment or default) which has sucked billions of dollars from the merry-go-round and it is easy to see how the amount of money chasing stocks is simply not what it was.
For sure, as the pundits assure us, there is cash waiting to reenter the market, but is it sufficient to regain old highs, or even recent rally peaks?
4. What to do (imo).
Be cautious, be patient, be independent in thought and deed. Don’t trust the opinions of experts above your own common sense, and don’t chase losses. Start again, enriched by the experience of taking a beating rather than be demoralised by it.
And, (here we go again 
)…. if in doubt, sell at least half.
5. Enjoy life. “Its just a ride” according to Bill Hicks – well worth viewing the short video of Bill’s closing speech…
6. I’m still thinking about a number 6. Maybe someone can add one.
best of luck.
Duration : 0:6:15
Posted in money markets |
Tags: collapse, deflation, economy, fed, housing, Inflation, money, prices |
1 Comment »
RANsquawk 24th February Morning Briefing – Stocks, Bonds, FX
A snapshot of the 24th February Morning Briefing covering Stocks, Bonds, FX etc.
Duration : 0:3:11
Posted in stocks and bonds |
Tags: bank of england, boe, bonds, bonus, bonuses, bunds, Clinton, CPI, fed, fixed income, fsa, fx, Germany, Housing Starts, inventory, Italy, oil, Philadelphia Fed, SNB, stocks, stress test, UK, us |
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Lehman Brothers collapse. Sep. 15, 2008. Stock Market Reactions
Sep 15, 2008.
The venerable Lehman Brothers investment bank said early Monday that it will file for bankruptcy, while Bank of America unveiled plans to buy Merrill Lynch — two pieces of news that profoundly alter the American financial landscape.
The fast-paced changes capped a roller-coaster Wall Street weekend and threatened to stir up U.S. financial markets already reeling from woes at other major financial firms and mortgage financing titans Fannie Mae and Freddie Mac.
“This crisis is clearly deeper than anybody had imagined only a short time ago,” Peter Stein, an associate editor at The Wall Street Journal in Asia, told CNN.
Lehman Brothers said in a statement early Monday that it plans to file for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code. The 158-year-old investment bank had been undermined by bad bets on real estate — the value of its shares declined 94 percent this year.
The fall of Lehman followed a wild, three-day scramble by top Wall Street executives and federal regulators, who worked around the clock to come up with a solution to a still-unfolding financial crisis.
By the end of the weekend, the Federal Reserve had stepped in to try to calm the markets by announcing plans to loosen its lending restrictions on the banking industry.
A consortium of 10 leading domestic and foreign banks agreed to create a $70 billion fund for loans to troubled financial firms.
Source:
http://edition.cnn.com/2008/US/09/15/banks.bigchanges/index.html
Duration : 0:2:20
59. How the Fed Changes Interest Rates
http://www.informedtrades.com/
A lesson on open market operations and how the federal reserve increases and decreases the money supply in order to move interest rates and what this means for traders of the stock, futures, and foreign exchange markets.
In our last lesson we looked at the structure of the Federal Reserve and the components of the FOMC, the portion responsible for implementing Monetary Policy. Now that we have an understanding of this, we can look further into exactly how monetary policy is facilitated and what happens to markets under differing scenarios.
Monetary Policy very simply is anything which relates to action by the Federal Reserve to influence the amount of money and credit available in the economy. To understand exactly what this means, one first must understand the concept of fiat monetary systems.
Fiat Monetary Systems: The United States, like most major economies, has what is known as a fiat monetary system. A Fiat Monetary system very simply is any system which uses a monetary unit (in this case the US Dollar) which is not convertible to some commodity, in general a precious metal such as gold.
Fiat money, is money that is backed by the credit of some entity, normally a government, and the value for which is derived from its relative scarcity and the faith placed in it by the population which uses it.
This is important to us as traders because the fact that the Dollar is not convertible to a commodity such as gold gives the Federal Reserve the ability to increase or decrease the money supply as it sees fit, or in other words to enact Monetary Policy.
With this in mind the 3 tools available to the Fed for enacting monetary policy are:
• Open Market Operations
• The Discount Rate
• Reserve Requirements
The most common tool that the Fed uses, and therefore the one that we will cover, is Open Market Operations. Once we have an understanding of this and how increases or decreases in the supply of money affect demand and prices, the other two less commonly used tools will be more easily understood.
Through something which is known as the Open Market Committee, the Fed increases and decreases the supply of money by buying and selling US Government securities.
When The Fed wishes to reduce interest rates they will increase the supply of money by buying government securities using money that was not available in circulation before they made their purchase. As with anything, when additional supply is added and everything else remains constant, price normally falls. In this case the price that we are referring to is the cost of borrowing money or interest rates.
Conversely, when the fed wishes to increase interest rates they will instruct the open market committee to sell government securities thereby taking the money they earn on the proceeds of those sales out of circulation and reducing the money supply.
Duration : 0:4:6
Posted in foreign markets |
Tags: Business, daytrade, economy, fed, federalreserve, Forex, futures, howto, informedtrades, investing, stockmarket, Trade, trading |
16 Comments »
RANsquawk 22nd February Morning Briefing – Stocks, Bonds, FX
A snapshot of the 22nd February Morning Briefing covering Stocks, Bonds, FX etc.
Duration : 0:2:31
Posted in stocks and bonds |
Tags: bank of england, boe, bonds, bonus, bonuses, bunds, Clinton, CPI, fed, fixed income, fsa, fx, Germany, Housing Starts, inventory, Italy, oil, Philadelphia Fed, SNB, stocks, stress test, UK, us |
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Food Crisis 2010 and US Dollar Impact
Thanks to ‘tradergee1″ for bringing attention to this video: http://www.youtube.com/user/tradergee1
Link to article: http://www.marketskeptics.com/2009/12…
2010 Food Crisis for Dummies
If you read any economic, financial, or political analysis for 2010 that doesnt mention the food shortage looming next year, throw it in the trash, as it is worthless. There is overwhelming, undeniable evidence that the world will run out of food next year. When this happens, the resulting triple digit food inflation will lead panicking central banks around the world to dump their foreign reserves to appreciate their currencies and lower the cost of food imports, causing the collapse of the dollar, the treasury market, derivative markets, and the global financial system. The US will experience economic disintegration.
The 2010 Food Crisis Means Financial Armageddon
Over the last two years, the world has faced a series of unprecedented financial crises: the collapse of the housing market, the freezing of the credit markets, the failure of Wall Street brokerage firms (Bear Stearns/Lehman Brothers), the failure of Freddie Mac and Fannie Mae, the failure of AIG, Icelands economic collapse, the bankruptcy of the major auto manufacturers (General Motors, Ford, and Chrysler), etc In the face of all these challenges, the demise of the dollar, derivative markets, and the modern international system of credit has been repeatedly forecasted and feared. However, all these doomsday scenarios have so far been proved false, and, despite tremendous chaos and losses, the global financial system has held together.
The 2010 Food Crisis is different. It is THE CRISIS. The one that makes all doomsday scenarios come true. The government bailouts and central bank interventions, which have held the financial world together during the last two years, will be powerless to prevent the 2010 Food Crisis from bringing the global financial system to its knees.
Financial crisis will kick into high gear
So far the crisis has been driven by the slow and steady increase in defaults on mortgages and other loans. This is about to change. What will drive the financial crisis in 2010 will be panic about food supplies and the dollars plunging value. Things will start moving fast.
http://www.youtube.com/watch?v=AFvRpIQULMc Original video uploaded so that it will reach other people.
Duration : 0:8:13
Posted in foreign markets |
Tags: 1207, 2100, abc, and, audit, bankers, Beck, Campaign, cap, civil, collapse, Copenhagen, criminal, death, debate, dollar, economy, elite, Everson, fed, federal, flag, for, Freedom, Glenn, Greg, Healthcare, hr, Judge, Law, liberty, martial, Napolitano, of, officer, patriot, patriotic, peter, police, Quayle, Rand, recession, reserve, schiff, sheeple, SHTF, State, Steve, Townhall, Trade, Treaty, trooper, unrest, up, us, usa, wake |
7 Comments »