The Fed needs to be abolished!
By Daniel at 12 August, 2009, 10:58 pm
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The Federal Reserve is, unfortunately, a slush fund for the big, mostly New York based, but also foreign and other domestic investment and commercial banking interests. They use it as such. Bernanke was placed into office by them because they knew that their fraudulent real estate schemes were going to go bust.
Mr. Bernanke was the biggest advocate on the Fed Board of Governors for the proposition of lowering rates below 1% in 2003. He wanted to continue these low rates for much longer even than the error-ridden Fed actually kept them. The low rates that prevailed, at that time, caused a real estate bubble, and the collapse of that real estate bubble was the catalyst that initiated the world financial Crisis. Now, of course, the Crisis has a life of its own.
The bottom line is that Fed Chairman Benjamin Bernanke is as guilty as any other person, including Alan Greenspan, for causing this depression. All that being said, it is not just one man at fault here. It is the system of allowing an institution, like the Fed, owned and controlled by banks, dictate what interest rates will be and how much money will be printed up. Thus, the banks that control the Fed, in turn, now control the government, by controlling the economy.
A new article, running at CNN/Money, but originally from Fortune Magazine, titled “Stocks: The Latest Fed Bubble” covers the situation rather well. See, http://money.cnn.com/2009/08/11/news/economy/bubbly.fortune It notes that stock prices have been floating on a sea of Fed-created so-called “liquidity”, which means cash injections into the stock market.
The article doesn’t acknowledge the full truth, however. The Federal Reserve printed up a huge sum of money in 4Q 2008. It has now injecting it, over and over again, using the manipulative Goldman Sachs proprietary trading software to buy index futures, and goose stock prices up at critical points, creating a fake bubble-rally that, in the long run, will morph into hyperinflation if they do not stop. Indeed, the intense greed of these banks has resulted in the fake rally being continued far longer than any rational manipulator would have sustained it.
The Federal Reserve has been a big negative for the U.S. economy for 95 years, since it was created. It has failed its original mission, for which it was created. It has not eliminated the business cycle of booms and busts. Instead, the Federal Reserve has acted repeatedly to delay them, until both the bubbles and busts are less frequent but of far greater magnitude than before. This is what resulted in the Great Depression and the current depression. All of it, however, has always been done with an eye to helping certain favored banks coin high profits, while non-favored banks are left high and dry.
John
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Bernanke was the only cause, I proved, of the Great Recession and probably acted on purpose. He had the knowledge (Bernanke is a renown specialist of The Great Depression he even wrote a book on the subject: Essays on the Great Depression.), the means, motive (The vast increase of personal powers he earned thanks to The Great Recession.), and opportunity.
Worse, in light of the exercise of the central bank extraordinary power by Bernanke, I argue that he poses a real immediate threat to democracy, peace, privacy and individual freedom.
Given the immediate dangers that are evoked in these lines I strongly suggest that you revoke Bernanke.
“I will argue here that, to the contrary, there is much that the Bank of Japan, in cooperation with other government agencies, could do to help promote economic recovery in Japan.
Most of my arguments will not be new to the policy board and staff of the BOJ, which of course has discussed these questions extensively.
However, their responses, when not confused or inconsistent, have generally relied on various technical or legal objections—- objections which, I will argue, could be overcome if the will to do so existed.“
Prof. Ben Shalom Bernanke
Japanese Monetary Policy: A Case of Self-Induced Paralysis?
For Presentation at the ASSA Meetings,
Boston MA,January 9th, 2000.
“The slowdown in economic activity, together with high interest rates, was in all likelihood the most important source of the stock market crash that followed in October.
In other words, the market crash, rather than being the cause of the Depression, as popular legend has it, was in fact largely the result of an economic slowdown and the inappropriate monetary policies that preceded it.
Of course, the stock market crash only worsened the economic situation, hurting consumer and business confidence and contributing to a still deeper downturn in 1930.”
Governor Ben S. Bernanke
Money, Gold, and the Great Depression.
At the H. Parker Willis Lecture in Economic Policy, Washington and Lee University,
Lexington, Virginia.
March 2nd, 2004
Revoke Bernanke: Sign the Petition to Request from President Barack Obama That Ben ‘Systemic Risk’ Bernanke be Removed From Office.
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