THE FEDERAL RESERVE IS TRAPPED

THE FEDERAL RESERVE IS TRAPPED

The Federal Reserve is now trapped. As you may know, this cartel of private bankers is buying up most of the U.S. Treasury debt. When they even just hinted that they might taper off their $85 billion per month buying of our U.S. Treasury bonds, the financial markets freaked out. Big Ben (Bernanke) was then forced to contradict himself and state that the economy was not really doing that well, and that the Federal Reserve may have to continue buying bonds and printing money perhaps to infinity. The markets did a 180 and headed for the moon..

Fundamentals no longer matter to market participants. Genuine price discovery is a thing of the past. The stock market is addicted to quantitative easing (the printing of more and more dollars) by its enabler, the Federal Reserve. Bad news for the economy becomes good news for the market because it means that the Fed will have to continue creating dollars which, of course, gives the addict (the stock market) what it must have. The benefit to the real economy is negligible. While the market may go up for a few more months, you know that it's going to end in tears as it always does when the fundamentals are dispensed with.

Yes, Ben is in a box. If he tapers off his bond purchases, the bond market will crash, taking the stock market with it. If he continues or even has to intensify his creation of paper dollars, then he risks a savage inflation which destroys the U.S. dollar and leads to the world losing confidence in our currency. It's all about the dollar after all. If Bernanke lets the dollar fall in order to pay back the remarkable Federal debt with cheaper greenbacks, then he risks the crucial advantages that the petrodollar and the reserve currency of the world give to the USA. What's a chairman to do? Probably retire and hand over the insoluble problem to someone else.

July 13, 2013



WE ARE SINKING INTO A POLICE STATE

WE ARE SINKING INTO A POLICE STATE

Those who are willing to give up some liberty for safety don't deserve either one.  Benjamin Franklin.

With this past week's revelations that the Executive Branch has an arrangement with the country's three largest phone companies to obtain the phone records of almost all Americans, only to have it further disclosed that the same Executive Branch has transformed the Bush - Cheney  warrantless intrusions  into the Prism program which allows the intelligence services to mine all of the country's major Internet providers by direct access to the companies'  servers in order to be able to obtain: email, videos, photos, voice-over-IP (Skype, for example) chats, file transfers, social networking details, and more, then is it possible that Americans can remain in denial that our country is plunging into a police state? Is it not curious that Homeland Security will be purchasing 1.6 billion blunt-nosed bullets and 2,750 light-armored tanks? It is undeniable that one definition of Fascism is the merger of state and corporate power.

When I voted for Candidate Obama is 2008, it was because he promised change from the embarrassments and encroachments of the Bush years. Even before Inauguration Day it was obvious to me that the upcoming President Obama would be just another puppet in a long string of puppet presidents who took their marching orders from the Federal Reserve and their cohorts on Wall Street.

Besides surrounding himself with a Wall Street Cabinet and advisors, his statements that he would not look back, only forward, was a tip off that he and his do-nothing attorney general would not go after the Bush-Cheney war crimes nor would they bring a single case against the banksters whose greed and outright fraud came as close as you can to bringing down the global financial system

Instead of change we got intensification. Obama signed a bill into law which allowed the U.S. military to arrest Americans and hold them without trial. Internments camps have been built that can currently hold 80,000 Americans without having to charge them with any crime.

And then there is the militarization of police forces throughout the country where on a recent occasion 100 square miles of Boston was placed under martial law while armored tanks roamed the streets......all in an effort to find a 19-year-old kid.

Wake up, America. Write articles, call your so-called representatives in Washington, utilize your social networks to organize a groundswell of opposition to what is happening in this country. Rediscover the words: civil disobedience.

June 16, 2013