printAs Terence Corcoran of Canada’s National Post puts it, “The Fed’s claim … is that all that is happening in the world economy—rising commodity prices, a falling dollar, rising bond yields, price increases in developing nations and Europe—have nothing whatever to do with the Fed’s unprecedented trillion-dollar quantitative easings and monetary expansion.”
“The Fed has a bit of a credibility problem,” concludes Corcoran. My countrymen (I’m a naturalized Canadian) are known for the understatement. Corcoran continues:
It wouldn’t be the first time in economic history that growth and employment dragged while prices -due to monetary inflation -rose. This year, U.S. consumer prices in March rose at an annual rate of 6% and were 2.7% higher than a year ago. In a recent speech, Fed vicechairman Janet Yellin called the CPI gains “transitory” inflation. Meantime, producer prices are up almost 6% year over year and import prices -thanks to a falling dollar -are up almost 10%.
Despite this evidence, the Fed sees no real inflation and is waiting to see if price increases begin showing up in “inflation expectations.”
[SNIP]
The enormous increase in the stock of money—a deliberate and destructive policy pursued by Ben Bernanke, the man with the reverse-Midas touch—is responsible for the steady rise in the prices of all commodities, crude included.
Prices are rising because mounds of paper money are printed and credit expansion policies promoted in order to fund the government’s profligacy. More fiat currency in the system means that every unit is worth less. This is the essence of inflation—it is a hidden tax, another way for government to steal your wealth by stealth.
According to the post hoc illogic of others (Bill O’Reilly and Attorney General Eric Holder, for instance), you ought to blame gas speculators, “profiteers” or foreign producers for gas prices—anyone but your government. Apparently, they believes that the price of fuel is causing prices to rise.
This topsy-turvy chain of causality should not make a lick of sense to a sane individual.
UPDATE: Herschel, on Facebook, wants to know, “who has all this new money? Certainly not the people who are suffering under high prices.”
Exactly: When money markets are flooded, the first counterfeit down payment goes into the coffers of the selected government contractors and employees. And also to all the DC hacks. It spurs artificially created demand, causing suppliers to raise prices. It’ll take time, but the new money will generate price hikes throughout the economy. By the time you and I, politically unconnected suckers that we are, experience a meager rise in money income (but not in tangible wealth), rising prices will have obliterated the tiny gain.
Fed Reserve == War Department
WWIII is being waged monetarily.
Once you understand this it all makes sense.
The problem is that we’re trying to do it WITHOUT explaining it to our own citizens.
High Gas prices, for example, allow the Fed to do QE, but then suck the excess cash right BACK OUT of the flow. They’re trying to exert localized control over the velocity – speed UP for China’s reserves (render them valueless) and at the same time keep the American economy somewhat chugging along.
It is a tightrope walk. If we do not SUCCEED, then the shooting war will being just as WWII began when we screwed Japan over oil, and just as the Civil War started over tarrifs. We’ve got to get China to play ball monetarilly and at the same time keep 10’s of millions of excess Chinese men from going on a rampage. Not fun.
The printed “money” went off to erase the malinvestments of GoldmanSachs, Citigroup, and the rest to the Banksters – hence, it formed a trillion dollars of financial “whiteout”. Another trillion or so goes to bomb Pushtuns, fund Medicare fraud, pay Archer Daniels Midland to burn up the corn crop in your car (hence rising food prices), and pay for greens fees at the Boca Raton Country Club for the retirees to whom we “promised” Socialist in Security. Other funds go to high speed rail links for empty trains, incompetent teachers, malpractice lawyers, dope smoking adolescents listening to Marxists pedagogues in “universities”, and bureaucratic “managers” whose productivity consists of building up empires of more staff and writing memos to each other.
Sadly, if interest rates rise, housing prices will drop because while there are N people who can pay 5% interest on a $600,000 home, there are much much less who can pay 10% interest on a $ 600,000 home. And if housing prices tanks, defaults will rise, and if defaults rise ….
MAN THE LIFEBOATS!!!!
Open naked short Silver contracts by JP Morgan Chase, in the Silver markets with the cheap money from the Fed is out right theft.
These are the same folks who became the Midnight hour banks, back when
Goldman Sachs, alumni Paulson was in power. Now Goldman is running for cover as Greece prepares the international criminal lawsuits.
When will the people learn to use their
cash and or credit unions….
More of the smoke and mirrors…
from Zach Carter of the Huff & Puff Post
http://www.huffingtonpost.com/2011/04/29/geithner-blocks-regulatio_n_855634.html
The Treasury Department plans to exempt foreign exchange derivatives from new Wall Street reform regulations, a Treasury official said Friday, dismissing concerns that the market prompted $5.4 trillion of emergency support from the Federal Reserve in late 2008.
Assistant Secretary for Financial Markets Mary Miller told reporters on Friday that the foreign exchange market already functions effectively and would not benefit from new rules. Subjecting the market to new rules, she claimed, would introduce a new and unnecessary “process” into “a very well-functioning market.”
During last year’s financial reform bill debate. CFTC Chairman Gary Gensler warned that exempting FX derivatives would allow firms to disguise other trades as FX, enabling large portions of the broader $600 trillion derivatives market to evade regulation.
The Treasury will accept public comments on its plan to exempt FX derivatives from new regulations, and make a final determination afterwards.