News & Analysis
Illustrated: The Incompetence of the Fed
Inside the Fed in 2006: A Coming Crisis, and Banter ... As the housing bubble entered its waning hours in 2006, top Federal Reserve officials marveled at the desperate antics of home builders seeking to lure buyers. The officials laughed about the cars that builders were offering as signing bonuses, and about efforts to make empty homes look occupied. They joked about one builder who said that inventory was "rising through the roof." But the officials, meeting every six weeks to discuss the health of the nation's economy, gave little credence to the possibility that the faltering housing market would weigh on the broader economy, according to transcripts that the Fed released Thursday. Instead they continued to tell one another throughout 2006 that the greatest danger was inflation — the possibility that the economy would grow too fast. – New York Times
Dominant Social Theme: The Fed gets it right ... eventually.
Free-Market Analysis: Wow, what an article. At a time when many in the alternative media were shouting out loud about an impending financial crisis, many of the top men at the US Federal Reserve could only make jokes about desperate discounts being given out by house-builders that found themselves saddled with an ever-growing inventory they literally couldn't give away.
And who provides this information? Why, the Fed itself as part of an ongoing "openness" about its deliberations. This is, for the Fed, not a generous move but a desperate one. We've been writing about the trouble that central banking is in and the moves that will have to be made to try to counteract the growing perception that the Fed in particular is a sinecure of the vastly wealthy.
This is a direct result, in our view, of the Internet Reformation that has made it impossible for the power elite to pretend its dominant social themes are grounded in reality. The Fed didn't used to release a narrative of its deliberations. But over time, the pressure to explain this mysterious mercantilist facility has increased significantly. Tens of millions believe in the fear-based promotions of the elite, but millions do not anymore.
Central banking is a good example of just such a fear-based promotion. Invented in England some 500 years ago, the privilege of printing money for the state has been jealously guarded and incrementally expanded by a tiny pool of "central banking" until it has reached its current perfection.
The idea behind central banking in the modern age is that the world's financial system is fragile and prone to breakdown and needs a central clearinghouse to guarantee solvency. The reality is that central banks – particularly the Fed – have garnered a franchise to print money-from-nothing.
The mechanism of the Fed is presented antiseptically in textbooks but the reality is far from bloodless. The few (Anglosphere) families that control the Fed and other central banks around the world have used the literally hundreds of trillions they control to create what is popularly called a New World Order.
They have fully purchased political, military, educational and media facilities in the West and elsewhere in order to propagate the gospel of globalism. They then manipulate current events up to and including wars in order to realize their aim of global governance.
But even as they have approached their goal of apparent total control of the world's political and military processes, they have received setback after setback from an unforeseen facility: The Internet. While it is true that the US's DARPA created the Internet, it was the unanticipated creation of the personal computer that turned a private military facility into a worldwide phenomenon.
The Internet, like the Gutenberg Press before it, has allowed an unfettered exchange of information about the Way the World Works. The result has been a gradual discovery by the masses of central banking and the essential insanity of a system that gives a handful of people the ability to direct trillions to their friends and colleagues.
The inevitable result of the collision of what we call the Internet Reformation and the memes of the elite – specifically central banking – is the gradual creation of a deep dissatisfaction with the Fed and central banking generally.
The elites rely on public acceptance of its memes to govern behind the scenes. If its main methodology of control – central banking – is foundering on the shoals of public skepticism, then the larger plan to create global governance is in jeopardy as well. Without the limitless money and control that central banking provides, the plans of the Anglosphere elite to run the world are not simply in jeopardy, they are likely ruined.
And thus it is that the elite attempts damage control at the Fed, the world's most important central bank and one integral to their plans. The New York Times, one of the most prestigious of the elite's mainstream mouthpieces, presents the elements of this limited hangout. Here's some more from the article excerpted above:
"We think the fundamentals of the expansion going forward still look good," Timothy F. Geithner, then president of the Federal Reserve Bank of New York, told his colleagues when they gathered in Washington in December 2006 ... As the year rolled along, however, Mr. Bernanke increasingly took the view that his colleagues were too sanguine. "I don't have quite as much confidence as some people around the table that there will be no spillover effect," he said.
As for Mr. Geithner, who became Treasury secretary in 2009, his spokesman, Anthony Coley, said, "Secretary Geithner was an early source of initiative at the Fed to reduce risk and make the financial system more resilient even before 2006." ...
For the Fed 2006 began with the departure of Mr. Greenspan, who presided in January over his final meeting as Fed chairman and was then widely regarded as the epitome of a central banker, a master who had guided the American economy through almost 20 years of remarkably consistent growth.
"I'd like the record to show that I think you're pretty terrific, too," Mr. Geithner said in adding his voice to the chorus of tributes at that final meeting. "And thinking in terms of probabilities, I think the risk that we decide in the future that you're even better than we think is higher than the alternative."
[Fed officer} Janet Yellen said: "It's fitting for Chairman Greenspan to leave office with the economy in such solid shape. The situation you're handing off to your successor is a lot like a tennis racquet with a gigantic sweet spot."
We long ago predicted that any damage control the elites attempted to do regarding the Federal Reserve would probably not do much good. The system is indefensible and relied on misdirection and ignorance for justification.
We can see from these article excerpts that a weak attempt is being made to shield Ben Bernanke from the worst excesses of the Fed's extraordinary destructiveness. He is being portrayed as a far-seer who had at least an inkling of what was to occur. Alan Greenspan, within the context of this narrative, is to play the part of the villain.
Yet none of this will make any difference, we believe. It is, to use the hoary cliché, like arranging deck chairs on the Titanic. Thousands of financial writers and bloggers on the Internet were far more prescient than Fed officials when it came to the looming financial crisis. The release of Fed conversations merely confirms the inadequacy of the current system.
In fact, the basic function of central banking is impossible. It is impossible to predict the future value of money. It not feasible to set the volume and value of money either. To do so is to fix the price of money. And price fixing never works. The price fixing of money inevitably leads to ruin.
In our view, ruin is, of course, what the power elite seeks. It intends, from what we can tell, to create a massive worldwide depression (and perhaps a world war of some sort) to usher in true world government with a true global money and worldwide central bank, perhaps the IMF.
Thus, we would hypothesize that the Fed's current "limited hangout" is nothing more than a delaying tactic. The elites at this point are playing for time, and ratcheting up global tensions (see Iran) as quickly as they can.
The trouble the elite families have is that in the context of the Internet they are dealing with a process not an episode. The Internet Reformation has yet to play itself out, in our view, and the results have yet to be fully explored.
Alternatively, it could be that by exposing the Fed to yet more opprobrium via this limited hangout, the powers-that-be intend to destabilize the system of central banking in order to generate a true, international gold standard controlled by some government entity, perhaps the UN.
Conclusion: This seems far-fetched to us as well, given the troubles the elites are having creating a current monetary consensus. If they do have this in mind, it seems to us they may end up outsmarting themselves. It's happened before.
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Posted by jjkorman1 on 01/16/12 11:08 AM
Of cource, I'm from the government here to help you!
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Posted by Hugh on 01/15/12 10:52 PM
A legal way to end the financial tyranny of the Old World Order?
Click to view link
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Posted by gitardood on 01/15/12 11:57 AM
St. Paul would agree, as he wrote, "Prove (verify) all things, hold fast to that which is good", and St. John said , "Beloved, believe not every spirit, but test the spirits to see if they be of God, for many LYING (deceptive) spirits are gone forth into the world" - even Jesus Himbelf said that the hallmark of the end of the ages would be massive deception. He exhorted us to be watchful, alert, and see that no one decieves us.
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Posted by Danny B on 01/15/12 01:26 AM
We all know that endless expansion in the West was on it's way out. Since the Anglo sphere had so much invested in the West, it blew bubbles as a STOPGAP measure. Greenspan knew very well what he was doing. Now, the various power groups are in a power struggle between the Dollar and The Euro camps. The Euro camp says that the dollar camp is going to crash.
http://www.leap2020.eu/GEAB-N-60-is-available-Global-systemic-crisis-USA-2012-2016-An-insolvent-and-ungovernable-country_a8481.html
The Anglo sphere says that the Euro camp is going to crash;
Click to view link
Under Summers and Rubin, the FED was / is able to control interest rates.Click to view link
Click to view link
It appears that this control will supply support for the Dollar bonds that won't be available for Euro bonds.
The FED is loaning $ zillions to Europe in the hopes that a continuation of dollar funding will give the Europeans the means to do a more complete job of self-destruction with the Euro.
So, while some cadre of elites may be pushing for centralization, the fight for survival at the state level is causing disintegration and giving centralization a bad name.
It may very well be that a world command economy is just too complex to ever work.
This is a great vid on the 6 principles of globalization.
Click to view link
It's entirely possible that the energy and precision needed to create and maintain a world command economy is far beyond earthly abilities.
So, while the elites may be able to conjure up a worldwide depression, it looks impossible to subdue the competition between power groups. NONE of the power groups can inspire confidence with investors. They will have to BUY the trust that they lost by their criminal actions. They can only buy it with something tangible,,, maybe gold.
There are MANY things that point to the American GOV being run by organized criminals.
The criminal mind / system is not of a productive nature.
The FED / banking system / bankers are not of a productive nature. Producers have been run into the ground by the parasites. This makes the future look a bit bleak.
Click to view link
With criminals and parasites running the show, I don't expect the West to recover trust or productivity any time in the near future.
Supposedly, the Obummer camp intended to use the "Cloward-Piven strategy to collapse GOV financially. The proponents claimed that, up out of the ashes would arise a more just and equitable system. History says that a demagogue will arise. If NWO expects a unified world to arise out of a global depression / crash / WW III , they are equally as deluded as our POS POTUS.
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Posted by BASILOVECCHIO on 01/14/12 12:00 PM
"Dominant Social Theme: The Fed gets it right ... eventually."
OBAMA,and Bernanke: A TWO PART PLAN TO A SECOND TERM, by justaluckyfool.
There is a fast and easy solution to the housing Click to view link is my daily prayer that Mr. Bernanke and President Obama choose to take this action because finally it is his second term election year.
Since the beginning of this crisis it was known,"Before the financial crisis could be solved ,the housing crisis must be solved !
Hope this is the way it will go: Give a small victorious battle to the enemy so you can continue to use "the most powerful weapon in the universe" to win the war.
PART ONE:
Jan 24-25 2012.
Bernanke announces QE3.The purchase of $1.26 trillion of MBS's !
Paying on average 87.5% of value. Financial institutions line up for sale,of course this is a solution to their nightmare and begins to save them from systemic failure.NO INCREASE in debt,this would be a simple transfer of assets,Treasury Bonds to Mortgage Notes.
Freddie Mac and Fannie Mae will service these new mortgages,loans.
New mortgages loans will be at 2% for 36 years for homeowers.85 % of whom (% who wish to remain in their property if possible) , should be those already in these homes and would gladly pay the 87.5% of face value,(an amount that will probably still leave them "underwater") because this new low, affordable payment mortgage will be an assumable mortgage (it can stay with the property) which will enhance the value of the property/loan over time. They would simply have to pay three payments and be on their way to security of home ownership.This transfer of assets will produce a revenue (income) to the US Treasury of $6 billion per month,that's $72 billion per year .This payment will also hold back inflation as it automatically withdraws money from circulation.
PART TWO:
President Obama to announce in the "State of the Union"
QE4.The total solution to the financial crisis,since the successful QE3 solved the housing crisis, we can go forward and solve the entire financial crisis by LENDING as much as is needed to bring the financial institutions to 50% Fractional Reserve Banking.With $235 Trillion (as per OCC) in derivetives this may require $100 trillion dollars.NO INCREASE IN DEBT !
This would be a purchase of assets by loans at 2% for 16 years.This would create an Income of $500 Billion per month for the US Treasury !Goodbye debt,?goodbye taxes ?
YES,they may be willing to buy off their demise by giving up portions of their "most powerful weapons", THE PRINTING OF THE SOVEREIGNTYS CURRENCY (FRACTIONAL RESERVE BANKING, AND COLLECTION OF COMPOUND INTEREST)
knowing that they will still gain all,just that it will only take a little longer.
"And the Truth Shall Set You Free.'Words" from "Social Media" to GOD'S ears.
PLEASE:
READ "THE AMERICAN REVOLUTION OF 2012" at Click to view link
"Don't End The FED, Amend the FED,bonus would be ZERO Income taxes.
On 60 minutes (12/11/11) ,President Obama said,'You can't raise revenues by lowering taxes unless you get the money from somewhere else.'
AMERICA SHOW HIM THE WAY!
"Believe nothing merely because you have been told it...
But whatsoever, after due examination and analysis,
you find to be kind, conducive to the good, the benefit,
the welfare of all beings -- that doctrine believe and cling to,
and take it as your guide."
-- Buddha
[Gautama Siddharta] (563 - 483 BC), Hindu Prince, founder of Buddhism
CHALLENGE IT-VERIFY, -MAKE IT BETTER-THEN CLING TO IT!_
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Posted by DarbyJie on 01/14/12 12:15 AM
Thank you for the link!
Darby
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Posted by Agent Pete 8 on 01/13/12 11:46 PM
I think what Ross (good fella) means is that when we think [insert actor here] is incompetent, it is often just a ruse to make it look like they dont know, so people don't blame them. But we know better nowadays don't we.
Elaborate Deceptions layered like trifle, to keep you addled.
Pudding anyone?
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Posted by Agent Pete 8 on 01/13/12 11:39 PM
It is a philosophical concept from a long time ago, inheriting the disease of lordly positionings of master and slave. It is NOT currently demonstrable that it is used in resolving civil conflict.
Click to view link
Follow the money.
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Posted by speedygonzales on 01/13/12 08:50 PM
All is very simple. If one fell sick goes to doctor and tell him syndroms. They RTG and so on to diagnose problems. But now we diagnose problems by ourself without needs of elite's magis.
No. We all did not grow on trees. But our world view was strictly limited to our circles. Thanx internet our circles became world wide.
In the past there was allowed just strictly narrowed vies 2b presented. Now, @ least, we have chance for diversified views.
Doug: Things we've said before: Set up foreign bank accounts in places you like to travel, while you can. Set up vault arrangements for physical precious metals outside the US. Buy foreign real estate that you'd like to own, because it can't be forcibly repatriated. Offshore asset protection trusts are a good idea too. Become an International Man. Let me emphasize that US taxpayers should stay within all US laws, because the consequences of breaking them are unbelievably draconian.
Generally, one simply must internationalize one's assets. The biggest danger investors face, by far, is not market risk - huge as that will be - but political risk. The only way to insulate yourself from such risk is to diversify yourself politically and geographically.
Click to view link
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Posted by speedygonzales on 01/13/12 08:37 PM
I do not know yo age. But check your hard drive. Where your knowledge was in 2000 and where you R now? Would you like to go back?
Realize that where you were mentaly in 2000 folx had been for centuries. Elites simply underestimated what internet means, since they are ancient brain folx. Elites are so scared that they do not alow free open elections in USA and majority of preisdents are blue blooded. For sure they also occupy US congress. They did not leave any space for free market and competition. NDAA reflect it
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Posted by speedygonzales on 01/13/12 08:27 PM
I just watch discusion about it on PBS. They use words: incompetence, misunderstanding of economy and so on.
As Standard Oil, elites can not operate in open, freemarket oriented, society with competition. So they created secret societies, CFR,Bilderbergs...
What internet did to them is ridiculous. They apear fine but they are not. Realize trilions of dollars fueled into propaganda industry which... ain't worx anymore. Internet rip em off of investment and their reputation. After their servants supossed to be named streets, airports... Their former servants who turned aginst their interest, Stalin/Hitler, are evils. All what we do is reverse engineering. What worx 4 elites must worx against 'em as well.100 times repeated lie became truth. Instead of elite folx live moral life. Once they see there is a lie folx abolish it. Lie must be pressed by power as was false christinity. Truth comes easy since truth is asociated with morality.
All what internet did was: 1,globalized news and infos 2,deleted distance 3,brought infos to living room 4,cut ties to elite controled media.
"The Central Intelligence Agency owns everyone of any significance in the major media."
--William Colby, former CIA Director, quoted by Dave Mcgowan, Derailing Democracy
"You could get a journalist cheaper than a good call girl, for a couple hundred dollars a month."
--CIA operative, discussing the availability and prices of journalists willing to peddle CIA propaganda and cover stories. Katherine the Great, by Deborah Davis
"There is quite an incredible spread of relationships. You don't need to manipulate Time magazine, for example, because there are [Central Intelligence] Agency people at the management level."
--William B. Bader, former CIA intelligence officer, briefing members of the Senate Intelligence Committee, The CIA and the Media, by Carl Bernstein
"The Agency's relationship with [The New York] Times was by far its most valuable among newspapers, according to CIA officials. [It was] general Times policy ... to provide assistance to the CIA whenever possible."
--The CIA and the Media, by Carl Bernstein
This simply aint worx anymore. Milions of indenpendent web pages and blogers world wide just made trilions of dollars invested into propaganda just dust in the wind.
Thanx Y'LL. Keep rollin'
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Posted by DarbyJie on 01/13/12 07:48 PM
Bill-
Force is necessary for SELF-DEFENSE, no?
I am thinking about my reply to the rest of your message. :)
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Posted by rossbcan on 01/13/12 07:41 PM
DB: "The Incompetence of the Fed"
Don't fall for it. The illusion of "incompetence" is useful for the illusionary "wrong men" are ruling, pawn sacrifice, place other pawns "in control", keep the "system" going, at all costs, blame failures on expendable individuals (useful idiots) and not a "designed to prey" system.
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Posted by rossbcan on 01/13/12 07:37 PM
... maybe "Click to view link" in my post above will be a clue:)
as to: "the control of physical force is not in our hands" is FALSE. "You control your own self, force included"
But, force is insufficient to build ANYTHING, only to threaten and actually destroy. It can be used to compel fools to build and hand over the fruits of their labor. But, even horses know better:
"you can lead a horse to water, but YOU cannot MAKE him drink"
leads to a generality: Those who control their OWN choice cannot be forced to make choices other than those they CHOOSE.
and, CHOICE is everything:
Click to view link
why are some so reluctant to follow links?
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Posted by taxesbyanyothername on 01/13/12 07:31 PM
All of the largest international organizations have completely failed at almost everything they have attempted. Anyone, those at the DB included, have any idea how the current crop of IOs could even help a NWO. I don't count being information/propaganda "sources" as help.
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Posted by DarbyJie on 01/13/12 07:21 PM
Rossbcan,
I have been looking for the Rule of Law but cannot seem to find it! I am looking for it so that I can figure out how we could go about restoring it, but find that it is as elusive as a wraith...
I wonder if you would agree that the 'Rule of Law' is simply a statement of Laws of Justice, Laws that the author(s) declare their intention of Seeing Implemented (ENFORCED). If this is true, and the US Constitution, for example, would be one example of such a document, (an example of a Rule of Law coming into existence), HOW would Americans go about restoring that implementation, of our own Constitution?
The problem is, the control of physical force is not in our hands. It is totally in the hands of the renegade (unconstitutional) bureaucracies, police departments, military and etc. And if I'm not mistaken, it is FORCE that determines whether or not any Law will or will not be enforced. Please comment; I am most eager to know your thoughts.
Thanks. :)
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Posted by rossbcan on 01/13/12 06:54 PM
DB: "The elites rely on public acceptance of its memes to govern behind the scenes"
Blood was shed in pursuit of freedom from slavers, for all of history, resulting in acceptance of "Consent of the Governed" ans a basic "necessity" for states to function, in any capacity at all, as elaborated on in "Social Contract":
Click to view link
with central control (subversion) of media and education, achieved over a century ago, we have been slowly manipulated and collectively lobotomized such that once established "Consent of the Governed" has morphed from:
Fully informed, lying politicians tarred and feathered by intelligent electorate, in control, assisted by hones media and excellent PRIVATE, market quality driven education.
TO:
"Terror - to dissent of the governed", current state.
Since predators are in control, there is no quid pro-quo if honest trade and property rights. Economies are collapsing planet wide, because, why be productive, for no gain and, risk attraction due to "something to legally steal".
So, the grim reaper of "Mathematics of Rule", silently and relentlessly collapses ability to collectively survive until the survival hits integrate to sufficient harm to collectively motivate us to "deal with the predators".
Hopefully, by collective insistence on restoration of the "rule of law" which once defined the civilization we are bound and determined to destroy:
Click to view link
/obvious
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Posted by seer on 01/13/12 06:33 PM
The mechanism of the Fed is presented antiseptically in textbooks but the reality is far from bloodless. The few (Anglosphere) families that control the Fed and other central banks around the world have used the literally hundreds of trillions they control to create what is popularly called a New World Order.
How about some specific examples of where the hundreds of trillions come from? The over rated US economy might account for 12 trillion and it is the largest in the world. I am confused as to where these " Hundreds of trillions" are located?
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Posted by KyfhoMyoba on 01/13/12 03:51 PM
I hate to be a nit-picker, but I question the word choice in paragraph 11: central banking as a method of control. Is it the method or the fount? Please elucidate, DB, if you will.
Reply from The Daily Bell
We think it is another tool among many, but perhaps the most important.
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Posted by Frank on 01/13/12 03:37 PM
"The few (Anglosphere) families that control the Fed and other central banks around the world ... have fully purchased political, military, educational and media facilities in the West and elsewhere in order to propagate the gospel of globalism. They then manipulate current events up to and including wars in order to realize their aim of global governance." - DB
More than anything else... more than just the loss of wealth we suffer via the manipulation of money & the markets... I now agree that these people bring on wars & violent revolutions, even starve people to death, all for the greed of money & power. We MUST get rid of these Central Bankers in the USA. Our Founding Fathers knew all too well we should avoid them (except Hamilton, who wanted it). Ron Paul has been on the cutting edge of this issue.
Please America, wake up. Check out your information & viewpoints on the internet. Do not be brain-washed or hoodwinked by the MSM & Power Elite.
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