Category Archives: Federal Reserve Bank

On A New Trick From The Feds’ Funny-Money Bag of Tricks

Debt, Federal Reserve Bank, Inflation, Private Property

Its old tricks are bad enough, but when an wrecking-ball like the Federal Reserve Bank tries something “new,” there’s even more reason to be afraid:

“T]here is something new [and ominous] in the present [quantitative easing] cycle,” warns Murphy, Robert P. Murphy, in the latest Mises Institute “Austrian.”

“The Fed is trying to raise rates while simultaneously maintaining its bloated balance sheet. It is attempting to pull off a magic trick whereby it can keep all of the ‘benefits’ of its earlier rounds of monetary expansion (i.e., “quantitative easing” or “QE”) while removing the artificial stimulus of ultra-low interest rates. …”

“Raising interest rates without selling assets,” gives us “the worst of both worlds.

We still get the economic effects of “tighter monetary policy,” because the price of credit is rising as it would in a normal Fed tightening. Yet we don’t get the benefit of a smaller Fed
footprint and a return of assets to the private sector. Instead, the US taxpayer is ultimately paying subsidies to lending institutions to induce them to charge more for loans, while the big banks and Treasury still benefit from the effective bailout they’ve been getting for years. …

Important reading: “The Fed Can’t Save Us” by Robert P. Murphy.

RepubliKeynesian Ben Stein Froths At The Mouth About Trump

Debt, Donald Trump, Economy, Federal Reserve Bank, libertarianism

“Frightening, idiotic, nonsensical, insane, breathtakingly horrible, flabbergasting, makes me want to cry”: Does this spleen, vented by Ben Stein, resemble an “argument”? It was the sum total of Stein’s “case” against Donald Trump’s recent pronouncements about a foreseeable recession.

As an “expert” who despises Mr. Trump, Stein—an actor, comedian, lawyer and self-styled economist—holds sway with the liberal, malfunctioning media. Our establishment “RepubliKeynesian” appeared on the anti-Trump channel, CNN, to huff and puff about Mr. Trump’s alleged far-fetched doom-and-gloom about a troubled economy. If I recall, this expert was clueless about the previous bubble, not that errors prevent the pundit class from returning for encores.

“We’re not in a bubble, unemployment is not high, Trump needs to consult a real economist [take me, me, screams Stein silently] were some of Stein’s assertions to the smirking, vacuous looker, Pamela Brown. Naturally, Brown provided no counter perspective.

Suffice it to say that Trump’s warnings about the effects of the enormous national debt, the still bigger burden of unfunded liabilities owed, as well as his assessment of the real unemployment numbers would certainly comport with more distortions in the economy and more bubbles.

Oh, and Trump supporters are all idiots for not sympathizing with Stein’s outrage.

Anyhow, not one argument was advanced by Stein for his case against Mr. Trump, only ad hominem. Had the smirker in the anchor’s chair called in an economist, say, of the Austrian persuasion—or even Paul Craig Roberts, United States assistant secretary of the treasury for economic policy under President Reagan, in 1981—she would have heard a perspective more in agreement with Trump than with RepubliKeynesian Ben Stein.

UPDATE II: Making America Great Means Exposing ‘W’ (Readers Get IT)

Bush, Donald Trump, Federal Reserve Bank, Iraq, Neoconservatism, Politics, War

“Making America Great Means Exposing ‘W’” is the current column, now on WND (please Like, Tweet, and generally Share column on social media). An excerpt:.

Making America great again, the theme of Donald Trump’s 2016 campaign, depends on dispelling the myths and myth-making that made America bad.

Beginning with George W. Bush.

Said Saint Augustine: “The confession of evil works is the first beginning of good works.”

The Republican Party under Bush did the devil’s work. Bar the sainted Ron Paul, not a dog of a Republican lifted his leg in protest of the unjust war on Iraq.

To embark on the good, the GOP must come clean about the bad. To that end, Donald Trump has begun a vital process of expiation.

The 43rd president is categorized as “bad” and ranked 37th by Ivan Eland, author of “Recarving Rushmore: Ranking the Presidents on Peace, Prosperity, and Liberty.” Having undermined the republic at home and peace abroad, “Bush’s presidency,” avers Eland, “was one of the worst of all time.”

Coming to terms with the Bush legacy, moreover, ought to prevent the rise of another Bush. For the bogus Bush Doctrine is alive and well-exploited in the words and promises of each of the Republican candidates, other than Donald Trump.

The Bush dictum of fighting them over there so they don’t come here —as if Islamic State can’t, won’t and hasn’t attacked there and here—is alive and well-exploited by almost every fork-tongued politician in the Republican and Democratic races.

Other than Trump and Bernie Sanders, there’s a potatoes vs. spuds quality to the foreign policy articulated by both sides.

Each time the interchangeable John Kasich or Marco Rubio or Jeb Bush are asked about death by Muslim in the United States; they whip out that dumb “W” Doctrine, tethering attacks like San Bernardino in the US to wars the US should be waging over in the Middle East, and will be waging if these candidates have their way.

If you liked Bush’s willful and criminal war on Iraq; if you enjoyed watching aw-shucks “W” “Shock and Awe” Iraq to kingdom come with BLU-82s—boy, do you have a treat in store.

If you took pleasure in Bush unseating and executing law-and-order leader Saddam Hussein; you’ll love the plans Rubio, Kasich and Brother Jeb have for Bashar Assad and his family. As for Vladimir Putin, the not-so-comical three stooges have practically diarized conflagration with Russia.

I almost forgot: If you licked your chops when Bush disarmed dem little Iraqi boys by littering their playgrounds with cluster bomblets; your vampiric urges will be sated. In Bush’s Baghdad, hospitals teamed with limbless kids successfully disarmed. The Rubio-Kasich-Bush bandidos will similarly oblige their supporters. Happy times are ahead for their acolytes. …

… Read the rest. “Making America Great Means Exposing ‘W’” can be read in full on WND (please Like, Tweet, and generally Share column on social media).

UPDATE I (2/19): READERS GET IT:

Hi Ilana,

I loved your article reminding all the deaf, dumb and blind, card-carrying Republicans that their asshole (excuse my French) summa cum laude remains, GW Bush.

Jeb, to even mention W’s name let alone appear with him campaigning, shows the guy has no sense of history. W’s Presidency was a total train wreck from his Supreme Court handed Presidency to his final months in office, when the wheels came off the American economy and financial system.

The Republicans running for President are dangerous war mongers with zero understanding of what the Federal Reserve has been allowed to do to this country and the irreversible, unfixable nature of the problem. Clinton and Sanders, it goes without saying, are also clueless!

Hope this finds you well!

All the best,

Barry Downs

UPDATE II: Writes Ron S:

Please accept my heart-felt gratitude for this article. I have been struggling with my own concept of objective reality and the contradictory BS I see all around me. I have long believed that G.W. Bush was not only a horrible president, he may have been the worst in American history. When he was received warmly in SC it made me wonder if I was missing something.

A small list of faux pas by our first semi-literate president:
1. 2 unnecessary wars, fought simultaneously on different fronts
2. approximately $3 trillion thrown to the winds
3. Claims of WMDs that don’t exist
4. violations of any number of international treaties, the Geneva Accords, the Nuremberg principles, the Uniform Code of Military Justice, etc. on war crimes.
5. Lies by his administration include “America does not torture”; “The war (Iraq) will last weeks or months, certainly not years”; “The insurgency is on its last legs; “We will be greeted as liberators”; “Deficits don’t matter”; and, of course, WMD.
6. Bush plunged the economy into a near world wide crisis by allowing the banksters and market thieves to operate with virtually no oversight, then passed the bill onto the people.
7. Bush granted a huge tax break to the 1% who didn’t need it.
8. Bush doubled the national debt.
9. He refused to control our borders.

One foolish man was enough to plunge the entire Middle East into chaos and plunge the West into confusion and disarray. God deliver us from another like him. We cannot afford such a fool in the office of the President of the United States..

PAULI ON THE PILLARS OF REPUBLICAN & DEMOCRATIC POLITICS

BAB's A List, Democrats, Economy, Federal Reserve Bank, Inflation, libertarianism, Republicans

By Myron Pauli

The 2015 Republicans rest upon 3 fundamental pillars:

[1] SUPPORT OF “FAMILY VALUES”: whereby government promotes abstinence education, school prayer, and the old “Leave It To Beaver” lifestyle of sexual abstinent; of heterosexuals who married until death do us part with no drugs, abortions, or much booze. Those values were nostalgic and on the way out even in Beaver’s 1950s. While Bruce Jenner may no longer suffer gender confusion; many can appreciate that a nation that worships an Olympic athlete who is considering lopping off his manhood suffers moral confusion. The old time ideals still hold sway especially among the rural white Protestants in the “Red States”.

[2] CUTTING TAXES ON THE WEALTHY: In other words, “supply side economics” from the 1980s where tax rates of 70% were cut while the Federal Reserve jacked interest rates to 18% and led to renewed prosperity when inflation was finally conquered. People forget that Ronald Reagan and Bob Dole raised payroll taxes and that government spending skyrocketed. The “supply side” formula did not work under Bush-II and most people see that the bailouts enrich Wall Street megabanks and that billionaires like Donald Trump buy politicians of both parties, and don’t shy away from using eminent domain laws to grab private property and bankruptcy laws to default on $5 billion of debt. The middle-class treads water and the “working class” drowns (as its jobs disappear overseas or are lost to robots) while the Fiorinas come in, fire employees, tank the stock, and walk away with $100,000,000. Nevertheless, the “supply side” idea has enough libertarian appeal and sufficient economic common sense to garner political support.

[3] GLOBAL WARMONGERING: Where the neocons make war on demons intent on destroying us – Afghans, Yemenis, Libyans, Russians, Chinese, Syrians, Iranians, “terrorists,” and where we pump billions into defense contractors. The “bad guy” drumbeat never stops, with every beheading or “Russians expanding influence” or some or other existential threat to Peoria—such as Saddam Hussein’s nuclear-armed cruise missile “mushroom cloud”—constituting a reason to keep up the drumbeat. Fear is not only a great motivator but wins votes as well.

The 2015 Democrats have their basic pillars:

[1] TO BE THE MAJORITY OF THE “MINORITIES”: Immigrants, Hispanics, non-whites, non-Christians, non-heterosexuals, and feminists with enough identity grievances constitute a Democratic majority. Lesbians and Muslims may not have common cause, but do have a common enemy. Blacks and Asians have little love for one another, but the enemy of my enemy is my friend; and rural, heterosexual, anti-immigrant, white Protestant men are The Enemy.

[2] CIVILIAN GOVERNMENT EMPLOYEES/DEPENDENTS: Discounting the military and defense contractors who lean Republican, millions of academicians, Amtrak employees, elderly, students, welfare recipients, firefighters, Sallie Mae employees, social workers, TSA gropers, and their families get their compensation from the government. This forms an almost unstoppable bulwark even if a small percentage of that constituency are Republicans. Money means self-interest and money talks.

The libertarians, constitutionalists and non-interventionists who’re not into the Red and Blue- State identity politics only have apathy and cynicism to turn to. Also stuck in the middle of this muck are old rural white, gun-owning Jacksonians like Confederate descendant James Webb who started as a Democrat, left the party of McGovernization, worked as Reagan’s Navy Secretary, and then returned to the “old Democracy” after watching the neocon plutocrats of Bush-II screwing over his rural Virginian constituents.

Webb and others are as much political orphans as the libertarians.

The political season opens up with 2/3 of Republicans rejecting their own politicians for 3 candidates who never served in any public capacity. The Democrats are stuck with an openly corrupt ex-Secretary of State and Presidential spouse who raises billions from the Wall Street crowd. Or an aging Marxist who does not even belong to the party.

While a majority will stay home on election day, the only major motivation to vote is fear of the other party!

******************

Barely a Blog (BAB) contributor Myron Pauli grew up in Sunnyside Queens, went off to college in Cleveland and then spent time in a mental institution in Cambridge MA (MIT) with Benjamin Netanyahu (did not know him), and others until he was released with the “hostages” and Jimmy Carter on January 20, 1981, having defended his dissertation in nuclear physics. Most of the time since, he has worked on infrared sensors, mainly at Naval Research Laboratory in Washington DC. He was NOT named after Ron Paul but is distantly related to physicist Wolftgang Pauli; unfortunately, only the “good looks” were handed down and not the brains. He writes assorted song lyrics and essays reflecting his cynicism and classical liberalism. Click on the “BAB’s A List” category to access the Pauli archive.