SIC SEMPER TYRANNIS!!!
Mark Matheny
June 5, 2011
You can usually turn on the news and hear about the thousands of home seizures by banks everyday, but this story is a "one in a million" gem for those wanting to see the tables turned on the banksters for a change.
Peter Schiff: 'US economy heading for disaster'
RTAmerica
June 3, 2011
June 3, 2011
America's credit rating is at risk, the unemployment is up and the residential real estate market has double dipped. Is it time to change the way the world economy works? "We are heading for a huge disaster," says Euro Pacific Capital President Peter Schiff. As the US dips from a recession to a depression, Schiff says, America needs to stop borrowing money if they want to prevent driving off the proverbial cliff.
Follow Lauren on Twitter at http://twitter.com/laurenlyster
Follow Lauren on Twitter at http://twitter.com/laurenlyster
American Police State-To Protect & Serve The New World Order
Documentary Movie-Truth Radio Production
http://www.truthradio.cc/
http://www.truthradio.cc/
full 2hr documentary film exposing the NWO’s hellish policestate. Presented by We Are Change Blackstone Valley RI-MA & Truth Radio
NORAD to conduct (9/11 Style) exercise flights over Cape and Islands Wednesday
Jack Blood
Deadline Live
June 3, 2011
Between the hours of 10 a.m. and 12 a.m. Wednesday, June 8th, F-15 fighter jets from the 104th Fighter Wing out of Westfield will participate in an Alert Force exercise over Eastern Massachusetts, according to a MA Air National Guard release. Provincetown, Hyannis, Nantucket and Martha’s Vineyard are included in the exercise area.
According to the MA Air National Guard, along with the F-15s, low-speed civilian propeller aircraft will be flown by the Civil Air Patrol during exercise. The exercise, facilitated in partnership with the US Northern Command and the North American Aerospace Defense Command (NORAD), is intended to train alert pilots on intercept procedures. The purpose of the training is to prepare the MA Air National Guard to defend the Northeast airspace against any airborne threat.
NORAD continuously conducts such exercises to test responses, systems and equipment, according to the MA Air National Guard. The exercises are carefully planned and controlled and involve scenarios including airspace restriction violations, hijackings and response to unknown aircraft. Similar exercises have been conducted by NORAD throughout the United States and Canada since the inception of Operation Noble Eagle after the terrorist attacks on September 11, 2001.
An increase in aircraft activity may be experienced over Provincetown, Hyannis and the Islands during the exercise.
Source: MA Air National Guard.
Related:
Deadline Live
June 3, 2011
Between the hours of 10 a.m. and 12 a.m. Wednesday, June 8th, F-15 fighter jets from the 104th Fighter Wing out of Westfield will participate in an Alert Force exercise over Eastern Massachusetts, according to a MA Air National Guard release. Provincetown, Hyannis, Nantucket and Martha’s Vineyard are included in the exercise area.
According to the MA Air National Guard, along with the F-15s, low-speed civilian propeller aircraft will be flown by the Civil Air Patrol during exercise. The exercise, facilitated in partnership with the US Northern Command and the North American Aerospace Defense Command (NORAD), is intended to train alert pilots on intercept procedures. The purpose of the training is to prepare the MA Air National Guard to defend the Northeast airspace against any airborne threat.
NORAD continuously conducts such exercises to test responses, systems and equipment, according to the MA Air National Guard. The exercises are carefully planned and controlled and involve scenarios including airspace restriction violations, hijackings and response to unknown aircraft. Similar exercises have been conducted by NORAD throughout the United States and Canada since the inception of Operation Noble Eagle after the terrorist attacks on September 11, 2001.
An increase in aircraft activity may be experienced over Provincetown, Hyannis and the Islands during the exercise.
Source: MA Air National Guard.
Related:
NATO Uses Attack Helicopters for First Time in Libya
Fox News
June 4, 2011
Tripoli – NATO announced Saturday it had for the first time used attack helicopters in Libya, striking military vehicles, military equipment and forces backing embattled leader Colonel Moamar Qaddafi.
"Attack helicopters under NATO command were used for the first time on 4 June, 2011 in military operations over Libya as part of Operation Unified Protector," the Atlantic Alliance said in a statement. "The targets struck included military vehicles, military equipment and fielded forces" of the Qaddafi regime, said the statement, without detailing exactly where the strikes had taken place.
The Apaches hit two targets near the coastal city of Brega, according to a statement from the Ministry of Defense in London. It said they took off from HMS Ocean, stationed off the Libyan coast and returned safely after completing their mission in the early morning hours.
June 4, 2011
Tripoli – NATO announced Saturday it had for the first time used attack helicopters in Libya, striking military vehicles, military equipment and forces backing embattled leader Colonel Moamar Qaddafi.
"Attack helicopters under NATO command were used for the first time on 4 June, 2011 in military operations over Libya as part of Operation Unified Protector," the Atlantic Alliance said in a statement. "The targets struck included military vehicles, military equipment and fielded forces" of the Qaddafi regime, said the statement, without detailing exactly where the strikes had taken place.
The Apaches hit two targets near the coastal city of Brega, according to a statement from the Ministry of Defense in London. It said they took off from HMS Ocean, stationed off the Libyan coast and returned safely after completing their mission in the early morning hours.
Bill of Rights: An Endangered Species
Kurt Nimmo
Infowars.com
June 3, 2011
The Constitution and the Bill of Rights are under attack. From the Indiana Supreme Court ruling that citizens do not have the right to challenge invading SWAT goons to rampaging cops putting non-violent protesters at the Jefferson Memorial in chokeholds, our cherished liberties are being systematically trashed by government.
None of this is consequential. In order to usher in a one-world government with its attendant police state and high-tech control grid, the government must denigrate and eventually eliminate the Constitution. Rolling back liberties that stretch back to the Magna Carta and the Enlightenment and the Age of Reason is part of a concerted effort to establish global totalitarianism. Minus our heritage, we cannot resist the forays of the money and monopoly men as they consolidate their hold on the planet and humanity.
In the video here, Alex Jones addresses these crucial issues in stark terms. He notes that we have realized essential victories, most recently the push-back against the political machine in Texas attempting to sideline and cripple an attempt to prevent the feds and their TSA goons from sticking their hands down the pants of children under the guise of fighting phony terror supposedly perpetuated by cave-dwelling Muslims.
Our task is ongoing. Either we bravely stand up and resist tyranny or we go gently into the night – a darkened nightmare of FEMA concentration camps, high-tech surveillance, and the eugenics master plan of the elite that dead-ends in termination of the vast majority of humanity.
Infowars.com
June 3, 2011
The Constitution and the Bill of Rights are under attack. From the Indiana Supreme Court ruling that citizens do not have the right to challenge invading SWAT goons to rampaging cops putting non-violent protesters at the Jefferson Memorial in chokeholds, our cherished liberties are being systematically trashed by government.
None of this is consequential. In order to usher in a one-world government with its attendant police state and high-tech control grid, the government must denigrate and eventually eliminate the Constitution. Rolling back liberties that stretch back to the Magna Carta and the Enlightenment and the Age of Reason is part of a concerted effort to establish global totalitarianism. Minus our heritage, we cannot resist the forays of the money and monopoly men as they consolidate their hold on the planet and humanity.
In the video here, Alex Jones addresses these crucial issues in stark terms. He notes that we have realized essential victories, most recently the push-back against the political machine in Texas attempting to sideline and cripple an attempt to prevent the feds and their TSA goons from sticking their hands down the pants of children under the guise of fighting phony terror supposedly perpetuated by cave-dwelling Muslims.
Our task is ongoing. Either we bravely stand up and resist tyranny or we go gently into the night – a darkened nightmare of FEMA concentration camps, high-tech surveillance, and the eugenics master plan of the elite that dead-ends in termination of the vast majority of humanity.
Author: 'Birth certificate' prompts departure of White House counsel
Corsi says move 'marks beginning' of end of Obama eligibility cover-up
Posted: June 02, 2011
4:21 pm Eastern
© 2011 WND
The author of the best-selling "Where's the Birth Certificate? The Case That Barack Obama Is Not Eligible To Be President" charged today the resignation of White House counsel Bob Bauer is the result of his participation in the release of Barack Obama's "Certificate of Live Birth," which he fears would not stand up to the scrutiny of any serious investigation by the FBI, Congress or the media.
When the announcement about Bauer's departure was made today, the AP said he was returning to private practice and to represent Obama as his personal attorney and as general counsel to Obama's re-election campaign.
He's being replaced by Kathy Ruemmler, a former assistant U.S. attorney.
The AP reported Obama praised Bauer, who before his White House Post had defended Obama against lawsuits that challenged his eligibility to be president.
Read the entire article
Obama Tells BBC He Will Violate Pakistan Borders
US Economy: An Analysis
PressTVGlobalNews on Jun 2, 2011
As the US is involved militarily in four or five wars out of the country and is domestically entangled with the treasury and the health and human services, this edition of News Analysis discusses the US spending and dept.
Max Keiser, Paul Craig Roberts and Richard Becker comment on the issue.
Max Keiser, Paul Craig Roberts and Richard Becker comment on the issue.
The Collapse In U.S. Homeownership Is Much Greater Than Reported In The Media
Calculated Risk
June 2, 2011
CR Note: The following is from economist Tom Lawler. He points out that the homeownership rate in April 2010 was significantly lower than previously thought. Tom also notes that the age adjusted homeownership rate was lower in April 2010 than in April 1990! Yeah, 1990.
Economist Tom Lawler writes: Census 2010 and the US Homeownership Rate: Where’s the Media?
While the data released for Census 2010 on households and housing was probably the most important “macro” housing data released by Census over the last several years, media coverage was surprisingly scant. (I am not including blogs in my definition of “media.) Many newspapers and other media that religiously report on the quarterly Housing Vacancy Survey data, especially the homeownership rate, failed to run stories highlighting that the homeownership rate last April was in fact substantially lower than previous HVS estimates had suggested, and was significantly below the homeownership rate in 2000.
Indeed, a Bloomberg/Business Week story today entitled “Rising Rents Risk U.S. Inflation as Fed Restraint Questioned” noted that “the rate of homeownership has fallen to 66.4 percent, the lowest since 1998, data from the Census Bureau show,” citing HVS estimates for Q1/2011, but it failed to mention that new Census 2010 data indicated that the US homeownership rate in the middle of the first half of last year was 65.1%, far below the HVS estimate of 67%.
Read the entire article
June 2, 2011
CR Note: The following is from economist Tom Lawler. He points out that the homeownership rate in April 2010 was significantly lower than previously thought. Tom also notes that the age adjusted homeownership rate was lower in April 2010 than in April 1990! Yeah, 1990.
Economist Tom Lawler writes: Census 2010 and the US Homeownership Rate: Where’s the Media?
While the data released for Census 2010 on households and housing was probably the most important “macro” housing data released by Census over the last several years, media coverage was surprisingly scant. (I am not including blogs in my definition of “media.) Many newspapers and other media that religiously report on the quarterly Housing Vacancy Survey data, especially the homeownership rate, failed to run stories highlighting that the homeownership rate last April was in fact substantially lower than previous HVS estimates had suggested, and was significantly below the homeownership rate in 2000.
Indeed, a Bloomberg/Business Week story today entitled “Rising Rents Risk U.S. Inflation as Fed Restraint Questioned” noted that “the rate of homeownership has fallen to 66.4 percent, the lowest since 1998, data from the Census Bureau show,” citing HVS estimates for Q1/2011, but it failed to mention that new Census 2010 data indicated that the US homeownership rate in the middle of the first half of last year was 65.1%, far below the HVS estimate of 67%.
Read the entire article
Rep. Ron Paul warns against 'too much dictatorship' in Washington
WCF Courier.com
June 2, 2011
MASON CITY, Iowa --- Exclaiming "our rights come from our creator, not our government," U.S. Rep. Ron Paul, R-Texas, brought his conservative message to North Iowa Tuesday.
Making reference to the Old Testament, the congressman talked about how Samuel warned his people about the dangers of having a king who they wanted to take care of their needs. "Samuel told them it's not a good idea.
"We're not on the verge of having a king, but we are on the verge of having way too much dictatorship in Washington, D.C.," Paul said, receiving huge applause.
Emphasizing the need for less government control of people's lives, Paul said, "We should always believe families can opt out. Get the government out and let us take care of ourselves."
For that reason, the candidate, who is attempting to drum up support for the Iowa caucuses, said he favors home schooling and private schools as options to public schools and opposes government-mandated health programs.
"We should and can take care of ourselves. It's a moral issue as far as I'm concerned.
"You have a right to take care of your own life. You don't have a right to take care of someone else's life," said Paul.
A onetime Libertarian candidate for president, Paul, 76, is serving his 12th term in Congress.
He said he is aware that his conservative views are not considered "mainstream" by many people.
"The mainstream is changing," he said. "The mainstream wants balanced budgets, sound government and personal liberties --- that is mainstream.
"The shift is in our direction --- obeying the Constitution for a change," said Paul.
Read the entire article
MASON CITY, Iowa --- Exclaiming "our rights come from our creator, not our government," U.S. Rep. Ron Paul, R-Texas, brought his conservative message to North Iowa Tuesday.
Making reference to the Old Testament, the congressman talked about how Samuel warned his people about the dangers of having a king who they wanted to take care of their needs. "Samuel told them it's not a good idea.
"We're not on the verge of having a king, but we are on the verge of having way too much dictatorship in Washington, D.C.," Paul said, receiving huge applause.
Emphasizing the need for less government control of people's lives, Paul said, "We should always believe families can opt out. Get the government out and let us take care of ourselves."
For that reason, the candidate, who is attempting to drum up support for the Iowa caucuses, said he favors home schooling and private schools as options to public schools and opposes government-mandated health programs.
"We should and can take care of ourselves. It's a moral issue as far as I'm concerned.
"You have a right to take care of your own life. You don't have a right to take care of someone else's life," said Paul.
A onetime Libertarian candidate for president, Paul, 76, is serving his 12th term in Congress.
He said he is aware that his conservative views are not considered "mainstream" by many people.
"The mainstream is changing," he said. "The mainstream wants balanced budgets, sound government and personal liberties --- that is mainstream.
"The shift is in our direction --- obeying the Constitution for a change," said Paul.
Read the entire article
Market strategist: “We’re on the verge of a great, great depression”
Margo D. Beller
CNBC
June 1, 2011
Wall Street is having a hard time figuring out what to do now that the U.S. economy appears to be sputtering and yields are so low, Peter Yastrow, market strategist for Yastrow Origer, told CNBC.
“What we’ve got right now is almost near panic going on with money managers and people who are responsible for money,” he said. “They can not find a yield and you just don’t want to be putting your money into commodities or things that are punts that might work out or they might not depending on what happens with the economy.
“We need to find real yield and real returns on these assets. You see bad data, you see Treasurys rally, you see all bonds and all fixed-income rally and then the people who are betting against the U.S. economy start getting bearish on stocks. That’s a huge mistake.”
Stocks extended losses after the manufacturing fell below expectations in May and the private sector added only 38,000 jobs during the month.
Read more
CNBC
June 1, 2011
Wall Street is having a hard time figuring out what to do now that the U.S. economy appears to be sputtering and yields are so low, Peter Yastrow, market strategist for Yastrow Origer, told CNBC.
“What we’ve got right now is almost near panic going on with money managers and people who are responsible for money,” he said. “They can not find a yield and you just don’t want to be putting your money into commodities or things that are punts that might work out or they might not depending on what happens with the economy.
“We need to find real yield and real returns on these assets. You see bad data, you see Treasurys rally, you see all bonds and all fixed-income rally and then the people who are betting against the U.S. economy start getting bearish on stocks. That’s a huge mistake.”
Stocks extended losses after the manufacturing fell below expectations in May and the private sector added only 38,000 jobs during the month.
Read more
Intel report: Kenyans honor Obama's 'birthplace'
Posted: May 30, 2011
4:37 pm Eastern
By Jerome R. Corsi
© 2011 WND
An internal bulletin from the Kenyan National Security Intelligence Service, or NSIS, states that the Kenyan government in 2009 commissioned a cultural museum in the Obama home village of Kogelo to honor the "birthplace of President Barack Obama" and rededicate the tomb of his father, Barack Obama Sr.
The 2009 NSIS bulletin report said:
Read more: Intel report: Kenyans honor Obama's 'birthplace' http://www.wnd.com/?pageId=303165#ixzz1NvzcCIsM
4:37 pm Eastern
By Jerome R. Corsi
© 2011 WND
 Barack Obama in visit with Kenyan relatives |
The 2009 NSIS bulletin report said:
The ministry of national heritage this month hosted a cultural festival in Kogelo and commissioned a cultural museum on a plot donated by a member of the Kogelo community. The cultural festival was attended by the minister for national heritage, William ole Ntimama and U.S. ambassador, Michael Ranneberger.According to an article in the Kenyan Daily Nation newspaper July 5, 2010, the Kenyan government's plans to build a 112 million Kenyan Schilling ($1.3 million) cultural center at Kogelo was locked in a dispute over who should donate land to the government for the project.
This was to honour the birthplace of President Obama and re-dedicate the tomb of Barack Hussein Obama, Sr., the president's late father. But the project had been delayed because of ownership wrangles surrounding the plot.
Read more: Intel report: Kenyans honor Obama's 'birthplace' http://www.wnd.com/?pageId=303165#ixzz1NvzcCIsM
NOVO ORDO SECLORUM – NeoCon Hell on Earth
Sartre
Infowars.com
May 30, 2011
Now it will come about that instead of sweet perfume there will be putrefaction; Instead of a belt, a rope; Instead of well-set hair, a plucked-out scalp; Instead of fine clothes, a donning of sackcloth; And branding instead of beauty. Your men will fall by the sword, And your mighty ones in battle. And her gates will lament and mourn; And deserted she will sit on the ground.
–Anonymous
The 20th Century was the most destructive era in history. Deaths from all the wars and the genocides estimated at 160 million may seem small if the planet descends into the approaching holocaust. Globalization is the catchword of the ruling class. Sovereign nations are obsolete to the corporatists. Militarization for suppressing conflicts is the mission, since warfare among nations are passé. The old alliances based upon ethnic composition or ideology has vanished. Only dissenters against the New World Order pose a threat to the Novo Ordo Seclorum.
This New Order of the Ages has been in the works for over a millennium. Lest you forget the horrors of man’s inhumanity to man, a short vignette looks back at some of the worst practices of Totalitarian Collectivism.
Caution some of the images in this NOVO ORDO SECLORUM video are ghastly, but the chronological documentation deserves your viewing.
Statism is the common thread that links all totalitarian regimes. Most living souls do not believe that the Soviet, Lenin and Stalin gulag, is possible today. A diluted revulsion level of atrocities is characteristic of the media script of current events. Disconnect between what really happens and what is reported is so dramatic that reality is unknown to most people.
The term NeoCon, commonly used as a synonym for neoconservative begs the real issue. There is nothing conservative about a top down authoritarian central government. Originally, refugees from the liberal Marxist strain, the former Bush NeoCon cronies applied their perverted viewpoint to discredit the meaning of real conservatism. Now you have the Obama LibCons outdoing their statist cousins to advance the War Party outreach intervention, well beyond Iraq and Afghanistan.
Playing the political party label game never alters the fundamental foreign policy designed to use American youth as cannon fodder for the actual masters of the global hegemony. Under Obama and slated with designed regime change, were the countries of Tunisia, Egypt and Libya. Pakistan and Syria are next. Even the stern warning from China not to intervene or violate the sovereignty of Pakistan goes unheard. The march toward a Middle East conflagration rests upon a predictable attack on Iran. This is the obvious war plan. However, the evil empire has limits that superior targeting technology cannot predict a final outcome.
Read the entire article
Infowars.com
May 30, 2011
Now it will come about that instead of sweet perfume there will be putrefaction; Instead of a belt, a rope; Instead of well-set hair, a plucked-out scalp; Instead of fine clothes, a donning of sackcloth; And branding instead of beauty. Your men will fall by the sword, And your mighty ones in battle. And her gates will lament and mourn; And deserted she will sit on the ground.
–Anonymous
The 20th Century was the most destructive era in history. Deaths from all the wars and the genocides estimated at 160 million may seem small if the planet descends into the approaching holocaust. Globalization is the catchword of the ruling class. Sovereign nations are obsolete to the corporatists. Militarization for suppressing conflicts is the mission, since warfare among nations are passé. The old alliances based upon ethnic composition or ideology has vanished. Only dissenters against the New World Order pose a threat to the Novo Ordo Seclorum.
This New Order of the Ages has been in the works for over a millennium. Lest you forget the horrors of man’s inhumanity to man, a short vignette looks back at some of the worst practices of Totalitarian Collectivism.
Caution some of the images in this NOVO ORDO SECLORUM video are ghastly, but the chronological documentation deserves your viewing.
Statism is the common thread that links all totalitarian regimes. Most living souls do not believe that the Soviet, Lenin and Stalin gulag, is possible today. A diluted revulsion level of atrocities is characteristic of the media script of current events. Disconnect between what really happens and what is reported is so dramatic that reality is unknown to most people.
The term NeoCon, commonly used as a synonym for neoconservative begs the real issue. There is nothing conservative about a top down authoritarian central government. Originally, refugees from the liberal Marxist strain, the former Bush NeoCon cronies applied their perverted viewpoint to discredit the meaning of real conservatism. Now you have the Obama LibCons outdoing their statist cousins to advance the War Party outreach intervention, well beyond Iraq and Afghanistan.
Playing the political party label game never alters the fundamental foreign policy designed to use American youth as cannon fodder for the actual masters of the global hegemony. Under Obama and slated with designed regime change, were the countries of Tunisia, Egypt and Libya. Pakistan and Syria are next. Even the stern warning from China not to intervene or violate the sovereignty of Pakistan goes unheard. The march toward a Middle East conflagration rests upon a predictable attack on Iran. This is the obvious war plan. However, the evil empire has limits that superior targeting technology cannot predict a final outcome.
Read the entire article
The secretive workings of the central banking syndicate – Federal Reserve balance sheet reaches another record. Fighting monetary inflation by creating it.
MyBudget360.com
May 30, 2011
Central banks provide a mystical approach to solving economic problems although they were initially created to solve short-term financial panics. The first central bank was the Bank of England which was established in 1694. It started out as a private institution but eventually took on a monopoly over all banks in England (all private banks either joined or were forced out). The allure of the system is to even out the panics by centralizing power in one place. The central bank of the United States came over two centuries later in 1913 as the Federal Reserve. The Fed has a mission to help moderate inflation and keep unemployment in check. But what happens when the central bank goes from main protector of the economy and becomes a large reason for the financial problem itself? There is little debate that monetary policy at the hands of Alan Greenspan led to the housing bubble. The subsequent bust is leading to our current financial problems. What people forget is that the Fed is designed to protect the banking system even if this is contrary to the overall success of the economy and most people.
Fed balance sheet expands to record size again
Prior to the current financial crisis the Federal Reserve controlled financial panics primarily through the discount rate and the Federal Funds rate. These two tools of monetary policy were typically enough to even out certain bumps in the road, even it was only temporary. Yet monetary policy is worthless when interest rates hit zero:
Hitting the zero bound renders the discount rate and Fed Funds rate weak or even ineffective in managing banking disintegration. So Ben Bernanke decided to open up an alphabet soup of new programs like the Term Auction Facility (TAF), Term Securities Loan Facility (TSLF), and the Primary Dealers Credit Facility (PDCF) to help the banking system. So how did these programs work? Before this financial crisis the Fed was rather particular in what collateral it would exchange for U.S. Treasuries. The above programs and many others opened the door for member banks to dump their toxic collateral into the Fed balance sheet in exchange for U.S. Treasuries. If this sounds like a suspicious way of doing business, (that is bailing out bad bets from banks) then you would be right. That is why even in recovery the Fed balance sheet is up to a new record:
Source: DollarDaze
If you look at purchasing power of a dollar in 1800 and one in 1900 you see that it was relatively stable over time. Only after the Fed took hold in 1913 did we see a steady decline of the purchasing power of the U.S. dollar.
Read the entire article
May 30, 2011
Central banks provide a mystical approach to solving economic problems although they were initially created to solve short-term financial panics. The first central bank was the Bank of England which was established in 1694. It started out as a private institution but eventually took on a monopoly over all banks in England (all private banks either joined or were forced out). The allure of the system is to even out the panics by centralizing power in one place. The central bank of the United States came over two centuries later in 1913 as the Federal Reserve. The Fed has a mission to help moderate inflation and keep unemployment in check. But what happens when the central bank goes from main protector of the economy and becomes a large reason for the financial problem itself? There is little debate that monetary policy at the hands of Alan Greenspan led to the housing bubble. The subsequent bust is leading to our current financial problems. What people forget is that the Fed is designed to protect the banking system even if this is contrary to the overall success of the economy and most people.
Fed balance sheet expands to record size again
Prior to the current financial crisis the Federal Reserve controlled financial panics primarily through the discount rate and the Federal Funds rate. These two tools of monetary policy were typically enough to even out certain bumps in the road, even it was only temporary. Yet monetary policy is worthless when interest rates hit zero:
Hitting the zero bound renders the discount rate and Fed Funds rate weak or even ineffective in managing banking disintegration. So Ben Bernanke decided to open up an alphabet soup of new programs like the Term Auction Facility (TAF), Term Securities Loan Facility (TSLF), and the Primary Dealers Credit Facility (PDCF) to help the banking system. So how did these programs work? Before this financial crisis the Fed was rather particular in what collateral it would exchange for U.S. Treasuries. The above programs and many others opened the door for member banks to dump their toxic collateral into the Fed balance sheet in exchange for U.S. Treasuries. If this sounds like a suspicious way of doing business, (that is bailing out bad bets from banks) then you would be right. That is why even in recovery the Fed balance sheet is up to a new record:
“(Reuters) The purchase was part of its $600 billion program, dubbed QE2, aimed at stimulating investment and economic activity.
The balance sheet — a broad gauge of Fed lending to the financial system — expanded to $2.759 trillion in the week ended May 25 from $2.742 trillion the prior week.
The central bank’s holding of U.S. government securities grew to $1.519 trillion on Wednesday from last week’s $1.495 trillion total.”
It is nice to see this make a headline in the press, although a very small one and not with much splash. Ironically it is inflation that the Federal Reserve has caused even though it claims that this is something it fights against:
Source: DollarDaze
If you look at purchasing power of a dollar in 1800 and one in 1900 you see that it was relatively stable over time. Only after the Fed took hold in 1913 did we see a steady decline of the purchasing power of the U.S. dollar.
Read the entire article
When Faith In U.S. Dollars And U.S. Debt Is Dead The Game Is Over
Michael Snyder
The Economic Collapse
May 29, 2011
A day is coming when the rest of the world will decide that it no longer has faith in U.S. dollars or in U.S. debt. When that day arrives, the game will be over. Traditionally, two of the biggest things that the U.S. economy has had going for it were the U.S. dollar and U.S. Treasuries. The U.S. dollar has been the default reserve currency of the world for decades. All over the globe it was seen as a strong, stable currency that was desirable for international trade. U.S. government debt has long been considered the “safest debt” in the entire world. Whenever there was a major crisis, investors would flock to U.S. Treasuries because they were considered a rock. Sadly, all of this is now changing. Today the rest of the world is losing faith in the U.S. financial system. In fact, even the United Nations is now warning of the collapse of the dollar. But if the U.S. dollar and U.S. Treasuries collapse, that will be an absolute nightmare for the U.S. economy. If the rest of the world does not want our dollars someday, then what are we going to give them in exchange for all of the oil and all of the cheap imported goods they send us? If the rest of the world does not want our debt someday, then how in the world are we going to be able to continue to consume far, far more wealth than we produce?
The rest of the world is watching the U.S. government run up record-setting budget deficits and they are watching the Federal Reserve print money like there is no tomorrow and they realize that the U.S. financial system is slowly imploding.
As mentioned above, now even the United Nations is warning that the U.S. dollar could collapse. The following is a brief excerpt from a recent news report put out by Reuters….
On April 18th, Standard & Poor’s altered its outlook on U.S. government debt from “stable” to “negative” and warned that the U.S. could soon lose its prized AAA rating.
At one time, it would have been unthinkable for Standard & Poor’s to do such a thing.
But today it is amazing that it has taken them so long to make such a move. U.S. government finances are falling apart.
When the credit rating of U.S. government debt starts declining, interest rates will go up. Just ask the government of Greece how painful that can be. Today, Greece is paying over 16 percent on 10 year bonds.
Read the entire article
The Economic Collapse
May 29, 2011
A day is coming when the rest of the world will decide that it no longer has faith in U.S. dollars or in U.S. debt. When that day arrives, the game will be over. Traditionally, two of the biggest things that the U.S. economy has had going for it were the U.S. dollar and U.S. Treasuries. The U.S. dollar has been the default reserve currency of the world for decades. All over the globe it was seen as a strong, stable currency that was desirable for international trade. U.S. government debt has long been considered the “safest debt” in the entire world. Whenever there was a major crisis, investors would flock to U.S. Treasuries because they were considered a rock. Sadly, all of this is now changing. Today the rest of the world is losing faith in the U.S. financial system. In fact, even the United Nations is now warning of the collapse of the dollar. But if the U.S. dollar and U.S. Treasuries collapse, that will be an absolute nightmare for the U.S. economy. If the rest of the world does not want our dollars someday, then what are we going to give them in exchange for all of the oil and all of the cheap imported goods they send us? If the rest of the world does not want our debt someday, then how in the world are we going to be able to continue to consume far, far more wealth than we produce?
The rest of the world is watching the U.S. government run up record-setting budget deficits and they are watching the Federal Reserve print money like there is no tomorrow and they realize that the U.S. financial system is slowly imploding.
As mentioned above, now even the United Nations is warning that the U.S. dollar could collapse. The following is a brief excerpt from a recent news report put out by Reuters….
The United Nations warned on Wednesday of a possible crisis of confidence in, and even a “collapse” of, the U.S. dollar if its value against other currencies continued to decline.But it is not just the United Nations that is concerned about the U.S. dollar.
In a mid-year review of the world economy, the UN economic division said such a development, stemming from the falling value of foreign dollar holdings, would imperil the global financial system.
On April 18th, Standard & Poor’s altered its outlook on U.S. government debt from “stable” to “negative” and warned that the U.S. could soon lose its prized AAA rating.
At one time, it would have been unthinkable for Standard & Poor’s to do such a thing.
But today it is amazing that it has taken them so long to make such a move. U.S. government finances are falling apart.
When the credit rating of U.S. government debt starts declining, interest rates will go up. Just ask the government of Greece how painful that can be. Today, Greece is paying over 16 percent on 10 year bonds.
Read the entire article
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