Liberty Forged

the State has no money of its own, so it has no power of its own. ` Nock

Posts Tagged ‘fed’

I heard that too…

Posted by Jesse on October 16, 2008

Rockwell posts this blog entry, Glenn Jacobs picked it up in a bloomberg article, I was at my mothers yesterday watching Bernanke give his speech/Q ‘n A to the Economic Club of New York….economic bubbles are a “phenomenon” Helicopter Ben claimed. Yeah, and the Fed is a blessing sent from God. Come on, tell us another one while people are still listening to this BS.

Anyone ever notice how nervous Ben and Paulson seem sometimes? Granted, it’s not as bad as McCain was at the most recent debate. But of course, The Financial Dictator Duo are pulling off the greatest heist ever in mankind, while McCain is just trying to suck up enough to get in on it.

Posted in Current Events, economy, Education, free market, Mine, Politics | Tagged: , , , , , , , , , , | 1 Comment »

Outstanding Statement to Bernanke

Posted by Jesse on February 27, 2008

This is what a leader is supposed to do.
A leader is not supposed to micromanage every aspect of human life.
A leader is supposed to lend guidance. Set examples and preach principle.
This is what Ron Paul does.

Below is Ron Paul’s opening statement

Ron Paul is right! Bernanke concede the point!

Posted in abortion, antiwar, Constitution, Current Events, democrat, economy, Education, election 2008, free market, Gold, healthcare, internet, Libertarian, mccain, obama, Politics, republican, Ron Paul, technology, Video | Tagged: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a Comment »

Bubble economy

Posted by Jesse on February 17, 2008

A little history and a little prophecy
February 2006 Peter Schiff U.S. Bubble Economy

February 28, 2006
Resistance…Denial…Debt
by Bill Bonner

Around the world, people are beginning to notice the signs. While no maturing economy can avoid some sag, bulges and lines, it is the resistance, denial and debt that produce the real problems.

The Russian newspaper, Pravda, reports:

“The United States is heading to financial crisis at top speed. That is correct, America will default on its foreign debt sooner or later if the actual trends remain unchanged. Consequently, the whole dollar-based world (including savings in U.S. currency) may crumble. The picture looks pretty grim this time around. Several factors will have an extremely detrimental effect on the dollar, according to U.S. Secretary of the Treasury John Snow who forwarded a letter full of ominous predictions to 21 members of U.S. Congress. The letter was made public after the markets had been closed for Christmas and New Year’s holidays – a rather appropriate precautionary move in terms of the international foreign exchange market, which is extremely sensitive to any sound produced by U.S. bureaucrats.

“Besides, the U.S. Federal Reserve is going to stop publishing the so-called ‘M 3 aggregate’ reports i.e., data on increase rates in money supply. Given the New Year’s predictions by John Snow, the Fed’s intentions look pretty suspicious. In other words, the international community will have no tool for measuring a real value of the dollar…

“The Fed is going to pull the plug on the data in March this year. Several events should occur in different countries more or less at the same time and thus damage credibility of the U.S. securities. Risk-averse investors get rid of speculative securities e.g., the dollar securities under the circumstances.

“All in all, the situation is quite alarming though it looks like a play being staged on purpose.”
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December 14, 2007
A Review of Peter Schiff’s Crash Proof
by Bob Murphy

Ever since I had my epiphany and realized that Peter Schiff had been right about the imminent collapse of the U.S. dollar, I’ve been meaning to write a review of his book. When the stock market became increasingly volatile, I thought, “I’d really better write that review soon!” But the final straw came today, when I read that wholesale prices in November rose at the fastest rate in 34 years. LRC readers need to learn how to protect their wealth, while they still have some left.

Schiff is president of Euro Pacific Capital, a broker-dealer specializing in foreign markets. He is very well read in Austrian economics, and his pessimistic analyses on CNBC and other outlets have earned him the nickname “Dr. Doom.” You might say that the maverick Schiff is the Ron Paul of investment analysts.
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Comedic Investment Banker explains the Subprime mess

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Republican establishment upset! in NJ!

Posted by Jesse on February 3, 2008

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Ah yes. The clairvoyant media. Yeah right.

Posted by Jesse on January 17, 2008

Worst inflation rate in 17 years.
Read all about it over in yahoo money.

I love how they start out. “higher costs for energy and food last year pushed inflation up”

Well they are catching on slowly. But lets go into that for a moment.
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Alan Greenspan: Gold and Economic Freedom
“The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit… In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value… Deficit spending is simply a scheme for the ‘hidden’ confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.”

Hmmmmmm……..

As Ron Paul points out here
“Mr. Greenspan has become one of those central planners he once denounced, and his views on fiat currency have changed accordingly………I had an opportunity to ask him about his change of heart when he appeared before the House Financial Services committee last week……….In short, he claimed he was wrong about his predictions of calamity for the fiat U.S. dollar, that the Federal Reserve does a good job of essentially mimicking a gold standard, and that inflation is well under control. He even made the preposterous assertion that the Fed does not facilitate government expansion and deficit spending. In other words, he utterly repudiated the arguments he made 40 years ago. Yet this begs the question: If he was so wrong in the past, why should we listen to him now?”

“It’s not enough to question the wisdom of Mr. Greenspan. Americans should question why we have a central bank at all, and whose interests it serves. The laws of supply and demand work better than any central banker to determine both the correct supply of money in the economy and the interest rate at which capital is available – without the political favoritism and secrecy that characterize central banks. Americans should not tolerate the manipulation of our economy and the inflation of our currency by an unaccountable institution.”
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All government spending represents a tax………..The “tax” is paid when prices rise as the result of a depreciating dollar. Savers and those living on fixed or low incomes are hardest hit as the cost of living rises. Low- and middle-incomes families suffer the most as they struggle to make ends meet while wealth is literally transferred from the middle class to the wealthy. Government officials stick to their claim that no significant inflation exists, even as certain necessary costs are skyrocketing and incomes are stagnating………The inflation tax, though hidden, only makes things worse. Taxing, borrowing, and inflating to satisfy wealth transfers from the middle class to the rich in an effort to pay for profligate government spending, can never make a nation wealthier. But it certainly can make it poorer..” The Inflation Tax by Ron Paul
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Jack Douglas has a few words as well. Lies about inflation.

The Real U.S. Economy, which is the Economy adjusted for all the inflation in prices produced by the vast tidal wave of paper dollars printed by the Fed over the past six years and more, has been declining for a great many months now. The Fed and other government agencies Lie about this by not counting the explosion in house prices, education costs, retirement, health and medical care, insurance, energy, and food in their official measure of inflation. The Consumer Price Index does not include house prices at all and this has been the most soaring inflation in the U.S. for about five years now, though the price increases are now down to almost zero because the Housing Bubble is breaking. Education and retirement costs (including the vast abandonment of retirement money owed by Corps. and so on) are grossly undercounted. The same is true of medical and health costs and insurance, which cover fewer of the full services they used to cover. The CPI does include the soaring costs of energy and food, so the Fed and the Big Media have cut them out by referring to the “Core CPI Inflation,” which is a totally ad hoc number they get by cutting out energy and food costs. But have you ever met an American, or any human being, who could live without food or energy? The Fed pretends it is cutting out the heart and core of inflation by cutting out food and energy because these are “variable.” But, of course, all prices are variable and this variability is the very reason one wants to keep measuring them: if they were not variable, it would be absurd to measure them more than one time.”
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and then over at the telegraph they report that the “experts” Goldman Sachs:

“Gold may smash the $1,000 barrier as soon as this summer should the dollar continue its slide and the woes of the US economy deepen”, Goldman Sachs said today.

Flight to gold as investors lose faith in money
The investment bank lifted its forecast for the yellow metal today on expectations of a recession in the US, which the bank expects to take hold in the second and third quarters of this year, could send the dollar to a record low of $1.51 against the euro.”
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Ron Paul
Before the U.S. House of Representatives, April 25, 2006

“The financial press, and even the network news shows, have begun reporting the price of gold regularly. For twenty years, between 1980 and 2000, the price of gold was rarely mentioned. There was little interest, and the price was either falling or remaining steady.

Since 2001 however, interest in gold has soared along with its price. With the price now over $600 an ounce, a lot more people are becoming interested in gold as an investment and an economic indicator. Much can be learned by understanding what the rising dollar price of gold means.”

“……Holding gold is protection or insurance against government’s proclivity to debase its currency. The purchasing power of gold goes up not because it’s a so-called good investment; it goes up in value only because the paper currency goes down in value. In our current situation, that means the dollar.

“Inflation, as exposed by high gold prices, transfers wealth from the middle class to the rich, as real wages decline while the salaries of CEOs, movie stars, and athletes skyrocket – along with the profits of the military industrial complex, the oil industry, and other special interests.”

A sharply rising gold price is a vote of “no confidence” in Congress’ ability to control the budget, the Fed’s ability to control the money supply, and the administration’s ability to bring stability to the Middle East.”

“…..Economic law dictates reform at some point. But should we wait until the dollar is 1/1,000 of an ounce of gold or 1/2,000 of an ounce of gold? The longer we wait, the more people suffer and the more difficult reforms become. Runaway inflation inevitably leads to political chaos, something numerous countries have suffered throughout the 20th century. The worst example of course was the German inflation of the 1920s that led to the rise of Hitler. Even the communist takeover of China was associated with runaway inflation brought on by Chinese Nationalists. The time for action is now, and it is up to the American people and the U.S. Congress to demand it.”
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Michael Rozeff givesa little insight. $10,000 Gold
“We the people have no possible use for the Fed that I can think of, but the State does. The Fed buys a lot of the debt that the State floats. It also seems to be a convenient way for the State to distribute its printing press money whenever it wants to. However, the U.S. government got along without the Fed until 1913.

“It seems that gold has risen in price about in line with other common goods and services. Some people say that it takes about the same amount of gold (about an ounce) to buy an off-the-rack average suit of clothes today as it did 75 years ago.

The cause of these declines in value of the dollar is that the Federal Reserve has shifted the supply of dollars upwards, well beyond the amounts that were warranted by the increases in demand for dollars that have occurred over this period. It bought a lot of things (mainly the debt of the U.S. government), created a lot of phantom reserves, and printed a lot of counterfeit currency called legal tender. These busy printing presses drove the value of the dollar down. The more dollars that were sitting in banks (because of cashing the Fed’s checks), the more that people borrowed and spent. Since the printing presses did not create any real goods or services, these dollars simply bid up the prices of the goods and services. That is (mainly) why a t-bone steak that cost $0.29 a pound in the 1920’s costs $7.99 today.”

“What’s inflation? Some economists define inflation in terms of price rises of goods and services. They use the CPI, but this measure is flawed for a variety of reasons. Alternatively, it may be more clear to say that inflation means excessive growth in the money supply, which then usually translates into rises in prices of various goods and services. Since in our system the State controls money via the Fed, the State is the sole cause of inflation because it controls the supply of fiat money. The Fed, usually doing what the President and Secretary of the Treasury want, causes inflation by increasing the supply of money. The public, however, can affect the rate of increase in prices by how intensively it uses this money (the money velocity).”

“All of these inflation scenarios cause stock and bond prices to decline. Since bonds are contracts that pay off in dollars, they are negatively impacted as dollars are depreciated by inflation. The effects on stocks are more complex and vary across different types of stocks. Usually the markets are disrupted enough by inflation that the overall net effect is negative.”

“Looked at this way, it is evident that gold in the portfolio is equivalent to insurance against some devastating contingencies. Complete or partial insurance are possible. The more gold you have, the more insurance you are buying. Over-insuring is costly because the overall rate of return of the portfolio goes down if nothing happens. That’s because gold historically provides no real return. Everyone has to decide for himself what the odds of these scenarios or ones like them are, how to insure against them as with gold or some other real assets, how high gold will go when other assets decline, and how much to insure against these events. There are no pat answers to these decisions, but they are within the realm of understanding and even sensible computation.

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