The Failure of the Federal Reserve System
It´s really hard to understand what Ben Bernanke the chairman of the FED was doing in the last months. Hasn´t it always been the main priority of this facility to ensure price stability? Things have changed ostensibly, but which reasons had Ben when he lowered the prime rate constantly ? Did he want to be nice to the stockholders , beware the U.S. economy of a recession, or just help to allay the U.S. foreign depts ? To be honest I don´t know his intention but I can imagine that the government wanted to have a working economy ahead of the coming elections.
The phantom of the stagflation
But the problems which this policy implicated now slowly appear, because the coming recession is not the same like the one in 2001. The difference is that the inflation rate is much higher as it was in 2001 and so America now faces a stagflation. Stagflation a really accused word by every economist, fundamentally means nothing else as recession and inflation to the same time. Sounds funny but that´s a really nasty thing because when you want to fight the inflation you raise the prime rate but that is toxic for the conjuncture. So it´s a doom loop and the only way to solve this problem is to raise the prime rate and to sit out the recession.
The Low Dollar as a slide effect
A few month ago the international top-model Gisele Buendchen properly the best paid model in the word, said that from now she only accepts Euro for her work.
The reason was that the government didn´t want to have a recession now, and so the only thing the FED could do is to pour more and more money into the banking system with the hope to boost the economy. But this had slide effects, the Dollar was loosing in value more and more, because when the society has more money for the same amount of goods the money is loosing it´s value and that´s what we call an inflation. This again has effects on the international economy for example the high oil price can definitely be affiliated to the low dollar, the reason Oil is noted in USD and when the money is loosing in value you have to pay more for it. But there are also positive facts especially for the U.S. export economy here you can list very high rates of growth cause for example me as a European can afford more goods for my euros when I buy it in the U.S.
All in all we can say that the coming months won´t be easy, but in my opinion the fight against the inflation is definitely more important as the one against the recession.
I think your conerns about our current financial
picture are warranted.
But,and pardon me for saying so, i think you’re missing the forest for the trees.
The seeds of the financial debacle we are witnessing were sown over a decade ago, possibly further back than that.
There have been financial “safety nets” in place for ages…actions the Fed could have taken and chose not to…THIS TIME AROUND. Actions the International Bank for Settlements could have taken and never did THIS TIME AROUND, so on, so on. BUT, NO!! AS A RESULT OF SOME MYSTERIOUS HAPPENSTANCE, OUR ECONOMIC LEADERS TOOK STUPID PILLS IN THE SUMMER OF ‘07 (WELL, ACTUALLY BEFORE THAT, BUT IT REALLY PAID OFF IN ‘07.)
We are all witnessing the premeditated dismantling of the us banking system to promote the unconscienable greed of the PEOPLE WHO OWN
The Federal Reserve…
AND THEIR “LOOSE” AFFILIATIONS WITH ORGANIZATIONS PROMOTING GLOBALIZATION FOR PROFIT AND PLUNDER.
THE VICIOUS, CIRCULAR SELF-ADVANCING GREED WORKS LIKE THIS: CORPORATES FUND THINK TANKS, WHO FORWARD POSTULATES OF FOREIGN AND DOMESTIC POLICY TO CONGRESS, WHICH HAS ALREADY BEEN BOUGHT OFF BY THE CORPORATES. VERY SIMPLE…VERY EFFECTIVE.
AS IS BEING MORE FREQUENTLY REVEALED THESE DAYS, THE FEDERAL RESERVE HAS NO AFFILIATION WHAT-SO-EVER WITH THE U.S. GOVERNEMNT. COLLUSION IS ANOTHER MATTER.
THE FED IS PRIVATELY OWNED..AND DOMINATED BY SOME DOZEN INTERNATIONAL BANKING FAMILIES, ALONG WITH MAYBE A COUPLE OF HUNDRED INDIVIDUALS, INCLUDING MR. BERNANKE.
HHMMMMMMMMMMM. I WONDER WHOSE INTERESTS THEY PLAN TO PROTECT?
I WILL LEAVE YOU WITH A FEW THOUGTHS:
while speaking before the United States Senate, February 17, 1950, James Paul Warburg:
“We shall have World Government, whether or not we like it. The only question is whether World Government will be achieved by conquest or consent.”
HOW ABOUT THIS:
Amsel (Amschel) Bauer Mayer Rothschild, 1838:
“Let me issue and control a Nation’s money and I care not who makes its laws”.
AND YET ANOTHER:
Nathan Rothschild said (1777-1836): “I care not what puppet is placed on the throne of England to rule the Empire. The man who controls Britain’s money supply controls the British Empire and I control the British money supply.”
[...] Facts? No, they are parsed facts. There is more to the picture than just mission statements. The Failure of the Federal Reserve System | Politics | World Financial Blog It
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