Howdy, Stranger!
It looks like you're new here. If you want to get involved, click one of these buttons!
Quick Links
WSJ [front page]: German Chancellor Merkel Suggests the Fed, ECB, and BOE Laying the Groundwork for
declaredemer
Member Posts: 2,698
It is rare, especially rare for a German leader, to publicly criticize central banks in public. The ECB has plans to buy 85 billion (US dollars) in corporate bonds, which is modest compared to the Fed and BOE. In the past several months, the ECB, Fed, and BOE "are increasingly vulnerable to criticism because they have played such a prominent role and cross so many traditional llines." The article further states, "some private economics --and a few inside the Fed-- say the Fed's aggressiveness is increasing the risks of an outrbeak of inflation."
BRIEFLY: I have tutored economics. Pursuing my M.B.A. I studied at the London School of Economics, which I only mention because of the word "Economics." I have said, repeatedly, that any gains created in a temporary deflationary recession through printing an excess of capital will undue any gains made through inflation. I make no apologies for my education. None at all. This is simple economics.
SOURCE: Joellen Perry, Germany Blasts "Powers of the Fed", Front Page, Wall Street Journal, A1, June 03, 2009, online.wsj.com/article/SB124398546796379239.html.
Also on the front page was an interesting article, which I made a post about a while ago. I will mention is ultra-super briefly: FASB is a heat-shield for the SEC and creates the generally accepted accounting principles (GAAP). Simply put, GAAP are accounting rules, and include when you can write-down losses, realize income, and so on and so forth. Very complex.
Well, the article mentions, "marshalling a multimilliion-dollar lobbying campaign, these firms persuaded key members of Congress to prssure the accounting industry to change teh rule in April." What rule? Financial firms, spending MILLIONS and MILLIONS --probably TARP (your) dollars?-- sought to change accounting rules that forced them to report billions of losses on assets of those pesky derivatives. Those securities are the hardest-to-value in the world, or at least among the hardest-to-value in the world. After MILLIONS and MILLIONS were spent, key members of Congress pressured the accounting groups to change the rules, notably FASB. Banks and insureres and securities firms had to use "market prices" --real prices-- for mortgage securities and other assets not traded on exchanges. When the market crashed, the financial firms used their clout, power, money (your money? I do not know. I only asked) to get the rules changed. It is like Prejean changing the rules. One set of rules for YOU and one set of rules for financial firms.
So, now, with the accounting rule changes, these financial firms might be showing . . . paper profits. Gasp! According to the Wall Street Journal, Rep Paul Kanjorksi (D), e.g., received $704,000 in campaign contributions to push for the change.
SOURCE: Susan Pulliam and Tom McGinty, Congress Helped Banks Defang Key Rule, Front Page, Wall Street Journal, A1, June 03, 2009, online.wsj.com/article/SB124396078596677535.html.
EDIT: I am working all day. And I usually read the Journal later. It is going to be very tragic when the Bail-Outs and changing of accounting rules --similar to the changing of regulatory rules-- blows-up in our faces, as the German Chancellor suggests.
Comments
Sorry.. I couldn't really follow all that, but when I see that many acronyms together generally it's a good bet that bad things are coming down. ^^
Summary:
Does that help?
It has been well documented that the Fed purposely created the crash and depression almost 80 years ago. That was to consolidate banks, smaller companies, land, and gold.
Hell, it's a private bank. It's a branch of the Bank of England.
But here's an interesting article about gold price manipulation if, you're the gold buyer type like me.
www.kitco.com/ind/Sabrin/may262009.html
Summary:
Does that help?
Yep, ^^ I gathered that much before, I was just trying to be cute and make a bad joke. I guess I am just about depress out as nothing seems to be going right these days.
Summary:
Does that help?
Yep, ^^ I gathered that much before, I was just trying to be cute and make a bad joke. I guess I am just about depress out as nothing seems to be going right these days.
The Fed: The Federal Reserve, www.federalreserve.gov/aboutthefed/default.htm
Structure of the Federal Reserve:
ECB: European Central Bank, www.ecb.int/home/html/index.en.html
BOE: Bank of England, www.bankofengland.co.uk/
Now, look up who the individuals are and what they have in common that are controlling all of these banks (don't forget the IMF). What is this? a replay of post-WWI? I seem to remember another German Chancellor pointing this out before. That's odd...
British govt in 'meltdown' as ministers quit
Published on 06-03-2009
British Prime Minister Gordon Brown lost his fourth minister within 24 hours on Wednesday as he faced taunts that his government was in meltdown on the eve of polls which could seal his fate.
Amid talk that the wave of resignations may be the beginning of the end of his premiership, Brown faced a rowdy Prime Minister's Questions session at which Conservative leader David Cameron urged a snap general election.
"The government is collapsing before our eyes," said Cameron, tipped by opinion polls to be elected as premier within a year.
"Why doesn't he take the one act of authority left to him: get down to the palace, ask for a dissolution (of parliament), call that election?"
Nick Clegg -- leader of the second opposition Liberal Democrats -- said Brown's Labour Party was "in total meltdown".
The premier tried to hit back by stressing his policies on pulling Britain out of recession and dismissing the Conservatives as nothing but "talk, talk and talk", prompting Cameron to charge that he was "in denial".
The exchanges came on the eve of Thursday's European Parliament and English local council elections, which are predicted to be a bloodbath for Labour -- and barely an hour after Communities and Local Government Secretary Hazel Blears said she was quitting.
And then China smartly planned its US exit strategy
Thanks for playing Americans.
Soon, we won't need you.
"What the Chinese are doing is moving some of their long-term assets into short-term so they can make a quick exit strategy," Peter Navarro, an economic at the University of California-Irvine, told CNBC this week. "Plus, they're setting up all these bilateral currency deals with countries around the world so they can back the dollar out. We are literally living on borrowed time."
In addition, "nationwide electricity consumption via major grids had fallen 4.3 percent in the first 10 days of May, also 0.7 percentage points sharper than that for the last 10 days of April, it said, confirming earlier local media reports. The power data is considered by some as more of a leading indicator than manufacturing and export data."
According to the London Evening Standard, a leading energy analyst found strong evidence that the run-up in oil prices in recent weeks stemmed from stockpiling, or hoarding, by the Chinese. Neil McMahon of Bernstein Research concluded that the rise "'reflects not strengthening demand, but rather China's efforts to boost its strategic petroleum reserve."
The Fundamentals are in the tank...Gas up...as Consumption is down..
Trade in material assumptions for spiritual facts and make permanent progress.
I read that the crowd in China that Timmy G. was addressing laughed out loud at him when he promised that the dollar was "strong".
All that I care for in all of this, is that they stop manipulating gold prices so I can sell, get a ton of money, then buy land. They just keep dragging it out, I feel like a dog in front of a deli window right now.
It all began with sub-prime mortgages. What they are really up to is beyond me, but the cogs are still turning. Maybe they're going to introduce some kind of new currency, or maybe it's just another transfer of welfare from the poor to the wealthy?
Time will tell all.
This is a sequence of characters intended to produce some profound mental effect, but it has failed.
The real irony and tragedy is that the supposed "rescue" or "cure" will result in a bigger and worse bubble and pop.
No one can know the exact timing, but I think gold is now exceeding 1,000 an ounce and the dollar has fallen around 30% in the past several weeks.
Frankly, I think it could be sooner than some predict (see Chancellor Merkel's prediction of a collapse in ten years).
Yup, some of us have been saying this since around last September or so.
fishermage.blogspot.com
Hmmmmm.......kinda reminds me of The illuminati symbol.......
Brief update: Dan Molinksi, WORLD FOREX: Dollar On Back Foot After ECB Holds Rates Steady, Wall Street Journal, online.wsj.com/article/BT-CO-20090604-715516.html.
It is horrible how the U.S. dollar, and the American way-of-life and standard-of-living, is on the decline . . . and today's values will look like heaven in a few years.
EDIT: I am seriously considering going to my bank and withdrawing a substantial amount of cash and going to my other bank and purchasing Euros and keeping my reserve money in Euros. This is * * * NOT * * * a joke/exaggeration. I am going to talk with my dad about doing it. (and I would be late doing it).
I was going to do that too but don't. Put your money in gold and silver coins to act as a hedge. Because if the Euro falls after the Dollar does, then what are you going to do?
You could sell your gold and silver coins for Euro after you know the Euro is safe. Or you can sell to buy the Amero after it replaces the Dollar.
They say that when the US declares, the Dollar is worth 0. Then it will take two weeks to get the Amero into the system, they will take your Dollars for Amero but it will be pennies on the Dollar when converting to the Amero. Your best bet for a 1:1 ratio is with gold and silver.
This is all assuming the armed riots don't break out when they declare the Amero. Which should considering that every American has been robbed of their wealth, but the reality is, if they haven't stood up yet, they won't later either. (especially if they keep cable tv running).
Keep at least 20% of your liquid wealth in gold and silver man. Even land, if you're lucky.
I just had a deal come my way literally today for a 19-unit (1 and 2 bedrooms) for 450k in a decent area of a major city. I requested a photo and going to look at it tomorrow. We think the price of the property is a typo, but you never know.
So much wealth was lost from property devaluation, and even more will be lost from currency devaluation.
EDIT: Just got the photo and apparently the units have been updated and has new windows. We will see tomorrow.
I just had a deal come my way literally today for a 19-unit (1 and 2 bedrooms) for 450k in a decent area of a major city. I requested a photo and going to look at it tomorrow. We think the price of the property is a typo, but you never know.
So much wealth was lost from property devaluation, and even more will be lost from currency devaluation.
EDIT: Just got the photo and apparently the units have been updated and has new windows. We will see tomorrow.
Yea as the other guy said go for gold as money can fail even the Euro.
Another great example of Moore's Law. Give people access to that much space (developers and users alike) and they'll find uses for it that you can never imagine. "640K ought to be enough for anybody" - Bill Gates 1981
I just had a deal come my way literally today for a 19-unit (1 and 2 bedrooms) for 450k in a decent area of a major city. I requested a photo and going to look at it tomorrow. We think the price of the property is a typo, but you never know.
So much wealth was lost from property devaluation, and even more will be lost from currency devaluation.
EDIT: Just got the photo and apparently the units have been updated and has new windows. We will see tomorrow.
I wouldn't do that.
If this was a normal situation, I would be buying one of those 700k houses in Cali for 250k as well. But this isn't a normal situation.
I would only buy land. No house or anything on it, just the land.
I would use that land to build later, but I would definately use it to grow food for my family. I would never own property in a city. For all we know and it is more than likely, cities will be in flames. Of course this depends on a couple of factors that I'm not allowed to discuss here.
There is nothing wrong with living outside the city. I wish I could right now. I can't sell my condo, but I'll never make this mistake again.
I want to have a small garden to subsidize food for my family. Food is going to be scarce when the Dollar crashes for good.
Not only can you grow food, but you can grow more than you need and trade food with others in your community that is doing the same thing. That way, you're not eating tomatoes everyday for the rest of your life lol.
But all of this is if you decide that you want to buy land. I can't buy any out right atm. But if they stop manipulating gold prices, I could buy land easily.
Silver is good too. Get in a habit of buying 2 ounces per week. Forget about watching the markets on silver, you'll go nuts. We're talking $30 per week, that's a drop in the bucket and it's a great cheap hedge during times like these.
Merkel for the Fed, Opinion, Wall Street Journal, June 04, 2009, A14, online.wsj.com/article/SB124407271719283173.html.
This was written by the editors at the Wall Street Journal:
"German Chancellor Angela Merkel, who in a Berlin speech Tuesday rebuked the world's central bankers, notably including the U.S. Federal Reserve, for being too politically accomodating. Hallelujah, sister."
Mrs. Merkel seeks to preserve the independence of the European Central Bank ("The independence of the European Central Bank must be preserved and the things that other central banks [the fed and bank of england] are now doing must be retracted," she said in a speech). Moreover, she said, "I view with a great deal of skepticism the extent of the Fed's powers." Is this woman courageous or what? Americans would not say such things about the Fed . . . even while in Germany.
The editors at the Journal continued,
"She [Chancellor Merkel] no doubt knows that the Weimer inflation of the 1920s paved the way for Hitler."
The editors at the Journal also mentioned how the Fed not only controls monetary policy but also fiscal policy when the Fed "elbowed its way into fiscal policy by buying housing and other dodgy assets, and it is also directly monetizing federal debt by buying Treasurys."
First, China.
Now, Germany.
We should heed their warnings about the collapse of the U.S. dollar, which Chancellor Merkel predicts will occur in ten years.
ANALYSIS: I find it fascinating, and deeply troubling, how the world is speaking-out against the U.S. It is strange how the Bank of England and the Fed, though, support these inflationary policies. I am surprised that so many people think that they are going to be "rescued" or "cured" or "saved" by these policies, similar to how I am shocked when people think they will "save" civilization or their own marriages by amending state constitutions. It is a seriously troubling time, and I think underestimating these grave challenges will result in more pain for more people.
Who would have thought U.S. consumerism would have turned out to be the most destructive U.S. narcotic? What will China and Germany do if Americans stop consuming like rabid animals? Germany will collapse and China will regress at least 20 years. The thing that got the U.S. into this mess is the only thing that can save them.
The Chancellor is right if U.S. consumerism was a fad and we truely become a more thoughtful cost conscience nation. In That case Germany will be in big trouble. Almost half of there GDP comes from exports. We spend this money now and don't return to our consumerism ways and Germany is left out in the cold.
Yes but in American it paved the way for the Great Society and a blueprint for how a nation reaches out to it's people. Rather ironic don't you think?
Interesting that you point that out. I see it happening too and by the very same people. I mean look it up it's all there (the names of these bankers). Amazing how history repeats itself.
As soon as people are no longer afraid of these people's negative labels that acts as a shroad, and points them out, the better.
Interesting that you point that out.
I would, if I may, be PERFECTLY CLEAR, more clear than clarity can be conveyed on any forum, in electronic communication, in space and time, that is NOT my thought, my words, or my sentiment.
THAT is the expression of the editors at the Wall Street Journal. The idea is that Merkel, as the editors see it, understand that Hitler rose in a period if depression WITH INFLATION. That is history. Not an opinion of MINE.
I have said the fixed-income, ordinary --sometimes called "little people" or "average" America-- better get tough or smart . . . quickly . . . my view is that they ought to get tougher and smarter more quickly.
Fair enough, but nobody can dispute that the very same people are behind this as they were in the past.
250: Carthage
415: Alexandria
554: Diocese of Clement (France)
561: Diocese of Uzzes (France)
612: Visigoth Spain : Visigoth Empire
855: Italy
876: Sens
1012: Mayence
1181: France
1290: England
1306: France
1348: Switzerland
1349: Hielbronn (Germany)
1349: Hungary
1388: Strasbourg
1394: Germany
1394: France
1422: Austria
1424: Fribourg & Zurich
1426: Cologne
1432: Savory
1438: Mainz
1439: Augsburg
1446: Bavaria
1453: Franconis
1453: Breslau
1454: Wurzburg 1485: Vincenza (Italy)
1492: Spain
1495: Lithuania
1497: Portugal
1499: Germany
1514: Strasbourg
1519: Regensburg
1540: Naples
1542: Bohemia
1550: Genoa
1551: Bavaria
1555: Pesaro
1559: Austria
1561: Prague
1567: Wurzburg
1569: Papal States
1571: Brandenburg
1582: Netherlands
1593: Brandenburg, Austria
1597: Cremona, Pavia & Lodi
1614: Frankfort
1615: Worms
1619: Kiev
1649: Ukraine
1654: Little Russia
1656: Lithuania
1669: Oran (North Africa)
1670: Vienna
1712: Sandomir
1727: Russia
1738: Wurtemburg
1740: Little Russia
1744: Bohemia
1744: Livonia
1745: Moravia
1753: Kovad (Lithuania)
1761: Bordeaux
1772: Deported to the Pale of Settlement (Russia)
1775: Warsaw
1789: Alace
1804: Villages in Russia
1808: Villages & Countrysides (Russia)
1815: Lubeck & Bremen
1815: Franconia, Swabia & Bavaria
1820: Bremes 1843: Russian Border Austria & Prussia
1862: Area in the U.S. under Grant’s Jurisdiction
1866: Galatz, Romania 77.
1919: Bavaria (foreign born)
1938-45: Nazi Controlled Areas
1948: Arab Countries
Here's a couple that predate any significant spread of Christianity (and certainly prior to Christians having any real power, which wouldn't have been at least until Emperor Constantine*):
70------------------------------Jerusalem
132-35-------------------------Bar Kochba
*Constantine's birth
Guess what? Seems the moneychanger bankers wear out their welcome eventually. Glad Merkel sees the pattern of history.