Category: US Federal Reserve Bank
The analysis published under this category are as follows.
Thursday, March 07, 2013
Who Profits From the Fed? / Politics / US Federal Reserve Bank
By: David_Howden
We recently looked at the Federal Reserve’s 2012 results. In particular, we pointed to some positive and negative developments. On a positive note, the Fed managed to shrink down the size of its balance sheet by approximately one-third of a percent. (Hey, it’s a start.) On a negative note, this decrease occurred because banks shifted their holdings of reserves into cash, thus forcing the Fed to sell off some of its assets. I explained that this is a potentially negative result, as the shift into cash brings with it inflationary pressure on prices.
Thursday, March 07, 2013
Bernanke the Crony Bureaucrat / Politics / US Federal Reserve Bank
By: Fred_Sheehan
The bureaucrat is similar to the cockroach. Both "species adapt readily to a variety of environments, but prefer warm conditions found within buildings." Both "are among the hardiest insects." (Wikipedia's descriptions, for interested entomologists) Madonna (the exhibitionist) captured the nexus: "I am a survivor. I am like a cockroach, you just can't get rid of me."
Tuesday, March 05, 2013
The Fed’s Monetary Policy of Zero Interest Rates / Politics / US Federal Reserve Bank
By: Prof_Rodrigue_Trembl
“If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered.” Thomas Jefferson (1743-1826), 3rd US President
“It is well enough that people … do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.” Henry Ford (1863-1947), American automobile industrialist
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Saturday, March 02, 2013
Bernanke the Comedian Addicted to Asset Bubbles / Politics / US Federal Reserve Bank
By: Joseph_T_Salerno
Ben Bernanke confided on January 14 that he is unaware of any new method of stimulating economic growth. Bernanke said: “As far as I’m aware, there’s no completely new method that we haven’t [already tapped].” So Helicopter Ben has run out of innovative and unconventional ways to create new money. Lest you be tempted to breathe a bit easier, however, rest assured that the now conventional method of quantitative easing, involving the Fed’s monthly purchase of $85 billion worth of mortgage-backed and U.S. government securities, seems to be working just fine according to Bernanke and he foresees its continuation. Noting the stubbornly high unemployment rate combined with the low inflation rate in the U.S. economy, Bernanke stated, “That is the case for being aggressive, which we are trying to do.” Although he is “cautiously optimistic,” he does promise to closely monitor the risks, efficacy, costs, and benefits of this inflationary policy.
Friday, March 01, 2013
The U.S. Fed's Tightening Pipe Dream / Interest-Rates / US Federal Reserve Bank
By: Peter_Schiff
Testifying before the US Senate this past Tuesday, Fed Chairman Ben Bernanke made an extraordinary claim about its bloated balance sheet: "We could exit without ever selling by letting it run off." What Bernanke means here is that the Fed could simply hold its Treasuries and agency bonds until they mature, at which point the government would then be forced to pay the Fed back the principal amount. Through this process, the Fed's unprecedented and inflationary position will be gradually and placidly unwound.
Friday, March 01, 2013
The Recent Fed FOMC Minutes Should Anger Every Investor / Stock-Markets / US Federal Reserve Bank
By: Casey_Research
With gold dropping nearly 3% on February 20, we at Casey Research had to look closely at the FOMC minutes, which were partially responsible for that movement. Since there are quite a few highlights, I have split this analysis into three sections: the confusion over the minutes in the market; the ambiguous language hinting at deep problems; and a few quotes to make your blood boil.
Wednesday, February 27, 2013
No Easy Escape for the Fed / Interest-Rates / US Federal Reserve Bank
By: Michael_Pento
I've said since the beginning of 2009 that any future "recovery" experienced by the markets and the economy would be derived through massive government spending and Federal Reserve debt monetization. Therefore, the logical conclusion must be that when or if fiscal and monetary austerity is eventually adopted, the economy and markets would crash.