Posts Tagged ‘ Federal Reserve ’

The Federal Reserve’s inflation lie

August 24, 2014
posted by

Downsize DC Downsize DC
by James Wilson  

"The Federal Reserve claims inflation was just 1.6% in June. Is this a lie? Compared to a year ago ... * food prices are up 2.5% ... * gas prices are up 3.5% ... * while weekly earnings remain the same." (08/22/14)

https://secure.downsizedc.org/blog/the-federal-reserves-inflation-lie  

No Comments »

The Fed and the “Salvador Dali Effect”

August 20, 2014
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Dante Bayona  

"There is a story about the great Catalan surrealist painter Salvador Dali. It is said that in the last years of his life, when he was already famous, he signed checks knowing that they would not be submitted to the bank for payment. Rather, after partying with his friends and consuming the most expensive items the restaurants had to offer, he would ask for the bill, pull out one of his checks, write the amount, and sign it. Before handing over the check, he quickly turned it around, made a drawing on the back and autographed it. Dali knew the owner of the restaurant would not cash the check but keep it,put it in a frame, and display it in the most prominent place in the restaurant: 'An original Dali.'" (08/19/14)

http://mises.org/daily/6845/The-Fed-and-the-Salvador-Dali-Effect  

No Comments »

Fed’s Rosengren says brokerage rules need “major re-examination”

August 13, 2014
posted by

Business Week    

"Federal Reserve Bank of Boston President Eric Rosengren said brokerage regulation needs a 'major re-examination' to prevent funding shortfalls during a crisis and that brokers should have higher capital requirements. ... Firms that depend on unstable funding should be required to 'hold significantly more capital' than if they relied on more stable sources, Rosengren said. Such requirements should apply to large independent brokers, foreign firms with U.S. holding companies and banks with 'major' brokerages." (08/13/14)

http://tinyurl.com/p8hz8ux  

No Comments »

Central bank theater

July 28, 2014
posted by

The Dollar Vigilante
by Wendy McElroy  

"The myth that German gold is safe in American vaults is part of suppressing gold prices because discovery of the gold's absence could cause other vaults to be inspected and the general dearth of physical gold to be revealed. Then public opinion might force a government and central bank to demand gold back. A bullion bank would have to buy the physical gold it needs to return at what might be ruinous prices; big banks could fail. One question too many could topple the scam. And, so, the German government and BuBa 'trust' the NY Fed with their nonexistent gold even when they do not trust America in the slightest." (07/25/14)

http://dollarvigilante.com/blog/2014/7/25/central-bank-theater.html  

No Comments »

You can’t taper a Ponzi scheme

July 27, 2014
posted by

CounterPunch CounterPunch
by Ellen Brown  

"At one time, manipulating interest rates was the Fed’s stock in trade for managing the money supply; but that tool too has lost its cutting edge. Rates are now at zero, as low as they can go -- unless they go negative, meaning the bank charges the depositor interest rather than the reverse. That desperate idea is actually being discussed. Meanwhile, rates are unlikely to be raised any time soon. On July 23rd, Bloomberg reported that the Fed could keep rates at zero through 2015. One reason rates are unlikely to be raised is that they would make the interest tab on the burgeoning federal debt something taxpayers could not support. Higher rates could also implode the monster derivatives scheme." (07/25/14)

http://www.counterpunch.org/2014/07/25/you-cant-taper-a-ponzi-scheme/  

No Comments »

How to start reforming the Federal Reserve right now

July 24, 2014
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Brendan Brown  

"An essential component of monetary reform should be setting interest rates free. This means no more official pegging or guidance of short-term interest rates and no attempt to manipulate in various ways long-term interest rates. Markets can do a better job of discovering the neutral rates of interest (across different maturities) and positioning market rates at any time relative to these so as to guide the economy along an equilibrium path than any set of well-informed and even well-meaning Fed officials. This is all on the big assumption that the reformers can design a monetary system around a suitable firmly placed pivot." (07/23/14)

http://tinyurl.com/llxkxmm  

No Comments »

The Federal Reserve overreaches

July 22, 2014
posted by

Competitive Enterprise Institute Competitive Enterprise Institute
by Iain Murray  

"Is the Federal Reserve after your debit and credit cards? In a move little noticed except by those in the payments industry, the Federal Reserve last fall issued a consultation document about 'payment system improvement.' This suggests a desire by the Fed to introduce a new payments system, ostensibly to allow faster payments and reduce transaction costs. The Fed worries that other countries have moved ahead of the U.S. in payments efficiency, but their suggestion might mean that the central bank will compete with the entities it regulates." (07/21/14)

http://cei.org/content/federal-reserve-overreaches  

No Comments »

Reining in the Fed

July 14, 2014
posted by

Independent Institute Independent Institute
by J. Huston McCulloch  

"Interest on excess reserves has enabled the Fed to expand from its traditional pre-2008 role as a central bank that mainly just prints money and buys Treasury securities, to become a massive financial intermediary in its own right: Its $1.7 trillion MBS position means that it is acting as a huge savings and loan association, funding long-term mortgages with overnight deposits. In doing so, it is taking exactly the same risks that the S&Ls took in the 1960s and 70s, that led to their demise when short-term interest rates rose to more than they were making on their fixed-rate mortgages. And the $1.5 trillion in new Treasuries it has acquired in excess of currency creation under successive 'quantitative easing' programs amount to speculation that longer term bond rates will never go up – which of course they will." (07/13/14)

http://blog.independent.org/2014/07/13/reining-in-the-fed/  

No Comments »

The Fed’s stimulus is a chimera

June 30, 2014
posted by

Cato Institute Cato Institute
by James A. Dorn  

"The U.S. Federal Reserve Bank’s three rounds of quantitative easing and near-zero target for the federal funds rate have not provided the promised stimulus. The idea that dramatically expanding the Fed’s balance sheet and rapidly increasing the monetary base would revitalize the real economy is a fantasy. Printing fiat money does not lead to economic growth." (06/27/14)

http://www.cato.org/publications/commentary/feds-stimulus-chimera  

No Comments »

Why timid reforms of central banks won’t work

June 30, 2014
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Frank Hollenbeck  

"The Federal Reserve System of central banking was a response to the financial panics of 1903 and 1907 that rocked the US financial system. One of the key objectives, if not the only real one, was to counterbalance the nefarious nature of fractional reserve banking. We now have experienced a century of living with a central bank and we must only conclude that it has failed as a counterbalance while making fractional reserve banking an even bigger, more nefarious master. The evidence is clear and reform of the system is not the answer. Only the abolition of this institution will begin to set our economic system on the right path." (06/30/14)

http://tinyurl.com/q2lclo8  

No Comments »

Europe’s Mario Draghi now starring in Bernanke’s show

June 25, 2014
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Brendan Brown  

"Just as Professor Bernanke exits center stage at the end of Act I of the monetary comedy he created, the scene shifts to Frankfurt. The star of Act II is European Central Bank (ECB) chief Mario Draghi. As we pick up the story, Mr. Draghi has been launching a defense against a phantom threat of deflation." (06/24/14)

http://tinyurl.com/ogoxhyx  

No Comments »

Why the Fed is nothing to celebrate

June 24, 2014
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Benjamin M. Wiegold  

"The Federal Reserve System turned 100 years old last December and Fed supporters have been celebrating ever since. In recent months, the Dallas Fed opened an historical exhibit, the Kansas City Fed released a documentary, and the New York Fed even started a Facebook page, all to commemorate the date. The mainstream media has also been vocal, as CNN posted a piece claiming Janet Yellen's becoming the first female chair is an 'apt way to mark the anniversary,' while National Review published an article of their own. Although the two outlets differ on politics, it seems nearly everyone agrees the Fed has fulfilled its purpose: grow the economy and prevent economic downturns." 906/23/14)

http://mises.org/daily/6787/Why-the-Fed-Is-Nothing-to-Celebrate  

No Comments »

World stocks muted as investors await Fed

June 18, 2014
posted by

Houston Chronicle    

"World stocks were muted as investors awaited an update on the U.S. economy later Wednesday from the Federal Reserve following its two-day policy meeting, while Japanese markets rose on a weaker yen. Equity investors have been holding back this week as they looked ahead to the Fed's meeting and its implications for the economy. The central bank was expected to update its forecasts for the world's biggest economy and scale back economic stimulus another notch. It was less certain whether policymakers would give any hints on when they want to start raising short-term interest rates from record lows." (06/18/14)

http://tinyurl.com/kvsoulo  

No Comments »

Fed could inadvertently jolt markets this week

June 15, 2014
posted by

CNBC    

"The Federal Reserve is widely expected to announce another $10 billion monthly reduction in quantitative easing in Wednesday's FOMC statement. But the focus will be on the Fed's economic assessment, which could end up dramatically realigning investor expectations about when the Fed will hike rates. In its previous statement, issued in late April, the Federal Open Market Committee noted that 'growth in economic activity has picked up recently, after having slowed sharply during the winter,' but added that 'labor market indicators were mixed' and 'the unemployment rate ... remains elevated.'" (06/15/14)

http://www.cnbc.com/id/101751976  

No Comments »

US Senate confirms two Fed governors, makes Fischer vice chairman

June 13, 2014
posted by

Business Week    

"The U.S. Senate confirmed two nominees to the Federal Reserve board and made Stanley Fischer Fed vice chairman less than a week before policy makers gather to consider further tapering record accommodation. Lael Brainard, former U.S. Treasury undersecretary for international affairs, won approval yesterday as a Fed governor, while Jerome Powell gained a second term. With the confirmations, five of the seven seats on the Fed board are filled for the first time since Ben S. Bernanke stepped down at the end of his second term as chairman in January." (06/13/14)

http://tinyurl.com/p2uv54h  

No Comments »

The Fed won’t let the economy heal

June 8, 2014
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Frank Shostak  

"According to popular thinking, the Fed’s actions have bought time to allow the US economy to heal -- much like keeping a coma patient on life support. Consequently, popular thinkers are harshly criticizing commentators that advocate allowing economic recession to take its course. Contrary to popular thinking, economic recessions or economic busts are not about the end of the world but about the removal of various non-productive activities, also labeled as bubble activities brought about by previous loose monetary policies of the central bank." (06/06/14)

http://mises.org/daily/6773/The-Fed-Wont-Let-the-Economy-Heal  

No Comments »

There is no tradeoff between inflation and unemployment

June 5, 2014
posted by

Ludwig von Mises Institute Ludwig von Mises Institute
by Chris Casey  

"The Federal Reserve believes increasing the money supply spurs economic growth, and that such growth, if too strong, will in turn cause price inflation. But if the monetary expansion slows, economic growth may stall and unemployment will rise. So the dilemma can only be solved with a constant iterative process: monetary growth is continuously adjusted until a delicate balance exists between price inflation and unemployment. This faulty reasoning finds its empirical justification in the Phillips curve. Like many Keynesian artifacts, its legacy governs policy long after it has been rendered defunct." (06/05/14)

http://tinyurl.com/mby6r3c  

No Comments »

Speaking truth to monetary power

May 26, 2014
posted by

Lew Rockwell Ludwig von Mises Institute
by Llewellyn H. Rockwell, Jr.  

"Until Ron Paul raised the issue at the national level in 2007, the Federal Reserve System had been treated with the kind of lazy indifference or acquiescence with which the public gradually comes to accept any institution of long standing. To be sure, most of the public still treats it that way. They have not lost sufficient confidence in the so-called experts, despite the debacle of 2008, to give the Fed a second (or even a first) look. But a skeptical minority is growing sizable enough to influence the debate." (05/23/14)

http://mises.org/daily/6760/Speaking-Truth-to-Monetary-Power  

No Comments »

Yellen: Print more

May 8, 2014
posted by

Campaign For Liberty Campaign for Liberty
by Megan Stiles  

"Speaking today in front of the Joint Economic Committee of Congress, Janet Yellen called for continued action from the Fed to prop up the struggling US economy. ... Campaign for Liberty continues to push for a full audit of the Federal Reserve." (05/07/14)

http://tinyurl.com/m4hcvxc  

No Comments »

Yellen: Fed can’t regulate Bitcoin

February 28, 2014
posted by

USA Today    

"Federal Reserve Chair Janet Yellen told senators Thursday that the central bank can't regulate troubled digital currency Bitcoin because it operates outside the banking system. 'I think it's important to understand that this is a payment innovation that's taking place entirely outside the banking industry,' Yellen told Sen. Joe Manchin, D-WV. 'The Federal Reserve simply does not have the authority to supervise or regulate Bitcoin in any way.'" [editor's note: Manchin is the drooling moron who's calling for Bitcoin to be "banned." As for Yellen, it's refreshing to see a central banker acknowledge limits to authority! - TLK] (02/27/14)

http://tinyurl.com/mpr66wm  

Comments Off

Fed minutes point to continued paring of stimulus

February 19, 2014
posted by

ABC News    

"Federal Reserve officials agreed at their January meeting that further gradual reductions in their stimulus would be appropriate as long as the economy keeps improving. Officials weighed the need to stress to investors that the Fed's key short-term interest rate would remain near zero, according to the minutes of the Jan. 28-29 meeting released Wednesday. But Fed officials couldn't agree on how to modify their commitment to keep the rate near zero 'well past' the time the unemployment rate falls below 6.5 percent. The rate is now 6.6 percent." (02/19/14)

http://tinyurl.com/nlmduyu  

No Comments »

It’s time to grill the Federal Reserve about Bitcoin

February 11, 2014
posted by

Reason Reason
by Ira Stoll  

"The cashless economy, once a techno-utopian dream, is now approaching reality. Even Hillary Clinton’s spokesman Philippe Reines was recently quoted about how he hadn’t withdrawn any cash from the bank since June 2012. There are a whole variety of ways that Yell[e]n may want to break with Bernanke’s legacy at the Fed. But one point where continuity might inspire confidence would be if she were to convey that she shares his view that digital currency is a potentially promising development rather than a dangerous threat to the dollar’s monopoly." (02/10/14)

http://tinyurl.com/qz3zb8o  

No Comments »

Yellen sworn in as Fed chair, succeeding Bernanke

February 4, 2014
posted by

USA Today    

"Janet Yellen officially took over the leadership of the Federal Reserve on Monday -- and along with it a delicate task: Unwinding the Fed's extraordinary economic stimulus without spooking investors or slowing a still-subpar economy. Yellen, the first woman to lead the Fed in its 100 years, was sworn in during a brief ceremony in the central bank's board room." (02/03/14)

http://tinyurl.com/kj4mau3  

No Comments »

US Senate confirms Yellen as new Fed head

January 7, 2014
posted by

Washington Post    

"The Senate confirmed Janet Yellen on Monday as the next leader of the Federal Reserve, placing her in charge of ensuring that the nation’s economy makes a full recovery. Her nomination passed the chamber on its first day back in session after winter recess, despite opposition from some Republicans who have advocated for greater oversight of the central bank. Yellen is currently the second-in-command at the Fed and will be the first woman in the top job. She is slated to take office Feb. 1." (01/06/14)

http://tinyurl.com/osddusc  

No Comments »

Want to help the working poor? End the Fed

January 2, 2014
posted by

US Rep. Ron Paul (R-TX) Campaign For Liberty
by Ron Paul  

"Many so-called champions of economic equality and fairness for the working class are preparing to confirm Janet Yellen as next Chairman of the Federal Reserve. Yet Yellen is committed to continuing and even expanding, the upward redistributionist polices of her predecessors. Washington could use more sound economic thinking and less demagoguery." (01/02/14)

http://tinyurl.com/ny9uuym  

No Comments »

Our Sponsors




Making a living off your Drupal site?

Drupal Managed Hosting

Fed up with Maintenance and Hosting companies?