While election is going on...the real owners are printing more monopoly $

[Dig]

Federal Reserve to print $500 billion in massive shadow stimulus ordered by Goldman Sachs
http://www.rawstory.com/rs/2010/11/federal-reserve-print-billions-dollars-massive-shadow-stimulus/
By Agence France-Presse
Tuesday, November 2nd, 2010 -- 5:23 pm



The Federal Reserve's policy-setting panel began a crucial two-day meeting Tuesday, poised to cast aside its long-held reluctance to micro-manage the economy in a bid to avoid a lost decade of growth. The central bank's open market committee (FOMC) is expected to approve massive stimulus spending not seen since the depths of the economic crisis. At the conclusion of the meeting Wednesday, the Fed is expected to announce it will resume the large-scale purchase of long-term US bonds -- essentially printing billions of dollars -- in the hope of boosting a weak recovery. While the Fed took similar measures during the crisis, it is unprecedented when the economy is not teetering on the edge of collapse, raising protests from some Fed members who fear it is unnecessary and will fuel long-term inflation. Critics of the policy argue that although the recovery is painfully slow, markets should be allowed to do their work. They also worry that if the policy fails the Fed's credibility will be wrecked. "I think that this will quite possibly be the worst mistake by the Fed in a generation," said Stephen Stanley of Pierpont Securities. But supporters argue that the Fed is failing in both of the prongs of its dual mandate, with unemployment and inflation both at unsustainable levels and must act. Since Fed chairman Ben Bernanke first suggested the possibility in late September, and confirmed it in October, markets and most economists have penciled in another round of quantitative easing (QE) as a solid bet. Goldman Sachs analysts and others predicted the rate-setting Federal Open Market Committee would start with a purchase of about 500 billion dollars in Treasury bonds. The Fed already has poured in more than 1.5 trillion dollars to spark a recovery.

[Flur]

This is the real story.  Everyone's wrapped up in elections while this is taking place with virtually NO attention.

[America2]

This is the real story.  Everyone's wrapped up in elections while this is taking place with virtually NO attention.

Not me, I watched tonight's "NCIS" episode instead. Still a distraction, but not nearly as bad.

[citizenx]

Nov. 2 and thereabouts is an important time of year in occult circles.  It is a cross-quarter day on the solar calendar.  All-soul's Day, it was the original date of "Halloween"/"Samhain" -- originally the Celtic New Year, so auspicious for the inception of new projects: hence elections, major policy announcements from the Fed and so on.

Yes, we get a new government (CON-gress) and a new policy (though it had already started somewhat with small purchases -- under ten billion) by the real government (the "Fed") being announced to the public.

The markets have, of course, already largely anticiapated such a move.  So, any QE less than 500,000,000,000 USD would spook the markets somewhat at this point.  Hence, we are not likely to see a much smaller number:  one hundred billion or fifty billion, say.

Paul Krugman, our Nobel-prize winnning economist is calling for ten trillion USD in quantitative easing.  Say goodbye to the dollar if that happens.

This new QEII will likely have the effect, in time, of devaluing the dollar somwhere between 5-20%, according to different analysts.  Still not a very good thing for most of us.

QEII may only be in its beginning stages though.  The final number may be closer to the figure Krugman is aiming for.  The last time the entire money supply was counted (four years ago) it was only around ten trillion, so he is talking about increasing the money supply up to 100% -- maybe, nearly doubling it and, by extension, hence halving its value.

I think they will wait until tomorrow (the 3rd) to make the formal announcement.

[America2]

Even when I was "asleep", something just felt WRONG when watching these elections. The 2000 and 2004 ones come to mind - I mean it's no different from, let's say, watching your favorite football team in the NFL playoffs. At the very end, your flesh and desires are being appeased, and NOTHING MORE. It was as if you either came out feeling real great, or real depressed. You really didn't care about the direction of your country, nada.

All in all, it felt like your own emotions were being manipulated without even knowing it.

Nov. 2 and thereabouts is an important time of year in occult circles.  It is a cross-quarter day on the solar calendar.  All-soul's Day, it was the original date of "Halloween"/"Samhain" -- originally the Celtic New Year, so auspicious for the inception of new projects: hence elections, major policy announcements from the Fed and so on.

Yes, we get a new government (CON-gress) and a new policy (though it had already started somewhat with small purchases -- under ten billion) by the real government (the "Fed") being announced to the public.

The markets have, of course, already largely anticiapated such a move.  So, any QE less than 500,000,000,000 USD would spook the markets somewhat at this point.  Hence, we are not likely to see a much smaller number:  one hundred billion or fifty billion, say.

Paul Krugman, our Nobel-prize winnning economist is calling for ten trillion USD in quantitative easing.  Say goodbye to the dollar if that happens.

This new QEII will likely have the effect, in time, of devaluing the dollar somwhere between 5-20%, according to different analysts.  Still not a very good thing for most of us.

QEII may only be in its beginning stages though.  The final number may be closer to the figure Krugman is aiming for.  The last time the entire money supply was counted (four years ago) it was only around ten trillion, so he is talking about increasing the money supply up to 100% -- maybe, nearly doubling it and, by extension, hence halving its value.

I think they will wait until tomorrow (the 3rd) to make the formal announcement.

[citizenx]

Oh, and on the 6th Bernanke and his minions will be celebrating the hundredth anniversary of the meeting that started the Federal Reserve on Jekyll Island.

The dollar in that time has lost more than 95% of its previous value, BTW.

So, the dollar is the new penny -- and pennies are almost too expensive to mint (they were close to melt value before being changed to a zinc-copper alloy).



Woopee!


At least Rand won his Senate race.  I hope he uses his office to begin to challenge our un-elected rulers.  I'd be happy to see someone in the Senate try, as his father has tried in the house to challenge their monopoly on political power in the U.S.

[citizenx]

Monday, November 1, 2010

The Fed at Jekyll Island: 100 Years Later, They're Baaack!

Well isn't this cute?

Just days after the Federal Reserve will announce it has launched QE2, the Fed will hold a major conference at  Jekyll Island, celebrating the secret meeting held 100 years ago that resulted in the creation of the Fed.

The island is off the coast of the U.S. state of Georgia.

In November 1910, Senator Nelson W. Aldrich and Assistant Secretary of the Treasury Department A.P. Andrews, and other top financiers,arrived at the Jekyll Island Club to discuss monetary policy and the banking system. The secret meetings led to the creation of the Federal Reserve.

Forbes magazine founder Bertie Charles Forbes wrote several years later:

Picture a party of the nation's greatest bankers stealing out of New York on a private railroad car under cover of darkness, stealthily riding hundred of miles South, embarking on a mysterious launch, sneaking onto an island deserted by all but a few servants, living there a full week under such rigid secrecy that the names of not one of them was once mentioned, lest the servants learn the identity and disclose to the world this strangest, most secret expedition in the history of American finance. I am not romancing; I am giving to the world, for the first time, the real story of how the famous Aldrich currency report, the foundation of our new currency system, was written... The utmost secrecy was enjoined upon all. The public must not glean a hint of what was to be done. Senator Aldrich notified each one to go quietly into a private car of which the railroad had received orders to draw up on an unfrequented platform. Off the party set. New York's ubiquitous reporters had been foiled... Nelson (Aldrich) had confided to Henry, Frank, Paul and Piatt that he was to keep them locked up at Jekyll Island, out of the rest of the world, until they had evolved and compiled a scientific currency system for the United States, the real birth of the present Federal Reserve System, the plan done on Jekyll Island in the conference with Paul, Frank and Henry... Warburg is the link that binds the Aldrich system and the present system together. He more than any one man has made the system possible as a working reality.
EPJ has obtained the agenda of the Fed meeting that will celebrate the 100 year anniversary of the secret meeting.

On November 6 of this year, Federal Reserve Chairman Ben Bernanke will speak on 'Federal Reserve: Past and Present' before the 'A Return to Jekyll Island: The Origins, History, and Future of the Federal Reserve' conference hosted by the Federal Reserve Bank of Atlanta at the Jekll Island Club Hotel.

The conference opens a day earlier on Friday, November 5, when Federal Reserve Bank of Atlanta President Dennis Lockhart gives welcome remarks.

Also at the conference:


Federal Reserve Bank of Philadelphia President Charles Plosser will moderate a discussion of a paper, 'To Establish a More Effective Supervision of Banking: How the Birth of the Fed Altered Bank Supervision'

Federal Reserve Bank of Cleveland President Sandra Pianalto will moderate a discussion of a paper, 'The Promise and Performance of the Federal Reserve as Lender of Last Resort 1914-1933'.

Federal Reserve Bank of Dallas President Richard Fisher will moderate a discussion of a paper, 'Where It All Began: International Trade, the Market for Acceptances, and the Making of Lending of Last Resort in Britain'

Federal Reserve Bank of St. Louis President James Bullard will moderate a discussion of a paper, 'From Passing Legislation to Building an Institution: Perspectives on the Early Years of the Federal Reserve System'

Federal Reserve Bank of St. Louis President James Bullard will moderate a discussion of a paper, 'The Fed from the Treasury-Fed Accord (1951) until the End of Monetary Targeting (1982)'.

Federal Reserve Bank of Richmond President Jeffrey Lacker will moderate a discussion of a paper, 'The Recent Financial Turmoil: New Directions for Monetary Policy Analysis'.

Federal Reserve Bank of Chicago President Charles Evans will moderate a panel on 'The Role of Research in Monetary Policy Deliberations'.

Federal Reserve Bank of Minneapolis President Narayana Kocherlakota will speak on 'Policy and Asset Bubbles'.
 Needless to say, nothing good can come out of a conference of Fed members talking to each other after just launching QE2 and who will be "inspired" by the historic Jekyll Island location and the 100 year celebration.

Given that the current Fed chairman loves new "tools" by which to inflate the currency and that the conference will be about discussing new tools and old, these guys will be re-enforcing each others mad thinking that they can micro-manage the economy without creating dangerously high inflation. They will think that they were not directly responsible for the recent boom-bust cycle,even though Alan Greenspan created it with his mad money printing..

http://www.economicpolicyjournal.com/2010/11/fed-at-jekyll-island-theyre-baaack.html

[Satyagraha]

Bread & Circuses for all Americans... what would the media do without the left/right paradigm to keep us distracted?
Open the HuffPost website this morning, and you'll be greeted with a banner ad for "Circus"...

==========================



==========================

And more...
It's a three ring circus, spotlight on the center ring where the election will suck up everyone's attention ...
meanwhile, at Jekyll Island they're celebrating and planning the next phase...
but that's not 'in the ring'.... ladies and gentlemen, step right up to the greatest show on earth!

==========================

[Satyagraha]

Fed Easing May Mean 20% Dollar Drop: Bill Gross
Published: Monday, 1 Nov 2010 | 6:28 PM ET
http://www.cnbc.com/id/39957072

The dollar is in danger of losing 20 percent of its value over the next few years if the Federal Reserve continues unconventional monetary easing, Bill Gross, the manager of the world's largest mutual fund, said on Monday.

"Other countries and citizens are willing to work for less and willing to work harder—and we forgot the magic formula somewhere along the way," Gross said.

"I think a 20 percent decline in the dollar is possible," Gross said, adding the pace of the currency's decline was also an important consideration for investors.

"When a central bank prints trillions of dollars of checks, which is not necessarily what (a second round of quantitative easing) will do in terms of the amount, but if it gets into that territory—that is a debasement of the dollar in terms of the supply of dollars on a global basis," Gross told Reuters in an interview at his PIMCO headquarters.

The Fed will probably begin a new round of monetary easing this week by announcing a plan to buy at least $500 billion of long-term securities, what investors and traders refer to as QE II, according to a Reuters poll of primary dealers. (continued)

[Satyagraha]

Fed Will Probably Start $500 Billion of Bond Buys, Survey Shows
By Caroline Salas and Alex Tanzi - Nov 1, 2010 1:36 PM ET
http://www.bloomberg.com/news/2010-11-01/fed-likely-to-announce-500-billion-of-purchases-survey-shows.html



The Federal Reserve will probably begin a new round of unconventional monetary easing this week by announcing a plan to buy at least $500 billion of long-term securities, according to economists surveyed by Bloomberg News.

Policy makers meeting tomorrow and Nov. 3 will restart a program of securities purchases to spur growth, reduce unemployment and increase inflation, said 53 of 56 economists surveyed last week. Twenty-nine estimated the Fed will pledge to buy $500 billion or more, while another seven predicted $50 billion to $100 billion in monthly purchases without a specified total. The remainder said the Fed would buy up to $500 billion or didn’t quantify their forecast. (continued)

[Satyagraha]

Fed poised for biggest decision in decades
By Robin Harding in Washington
Published: October 31 2010 22:14 | Last updated: October 31 2010 22:14
http://www.ft.com/cms/s/0/f2625384-e516-11df-8e0d-00144feabdc0.html

This week’s meeting of the US Federal Reserve’s monetary policy committee will be one of the most important in decades as it prepares to launch a new round of quantitative easing.

It will not be a “saving the world on a Sunday night” occasion like the meetings during the financial crisis, but that only adds to its historical significance. The world’s most important central bank is about to use quantitative easing as a routine instrument of monetary policy for the first time.

The goal of QE2 – the nickname for this new round of easing – is to push down long-term interest rates by buying long-term Treasury bonds. On its success rests both the reputation of Ben Bernanke, the Fed chairman, and the chances that the US economy can avoid a decade of weak growth. At this week’s meeting, on Tuesday and Wednesday, the Fed’s rate-setting open market committee will assess just how badly it expects to miss its dual mandate of maximum employment and stable prices.

Each FOMC member will update economic forecasts for 2011 and 2012 and make a prediction for 2013 as well. The 2013 forecasts are vital to the case for action. They are likely to show that inflation will remain below the Fed’s 2 per cent objective in three years’ time and that unemployment will still be above the rate the Fed thinks is achievable in the long run. (continued)

[Satyagraha]

QE2 risks currency wars and the end of dollar hegemony
By Ambrose Evans-Pritchard, International Business Editor
Published: 9:56PM GMT 01 Nov 2010
http://www.telegraph.co.uk/finance/currency/8103462/QE2-risks-currency-wars-and-the-end-of-dollar-hegemony.html



As the US Federal Reserve meets today to decide whether its next blast of quantitative easing should be $1 trillion or a more cautious $500bn, it does so knowing that China and the emerging world view the policy as an attempt to drive down the dollar.

The Fed's "QE2" risks accelerating the demise of the dollar-based currency system, perhaps leading to an unstable tripod with the euro and yuan, or a hybrid gold standard, or a multi-metal "bancor" along lines proposed by John Maynard Keynes in the 1940s.
China's commerce ministry fired an irate broadside against Washington on Monday. "The continued and drastic US dollar depreciation recently has led countries including Japan, South Korea, and Thailand to intervene in the currency market, intensifying a 'currency war'. In the mid-term, the US dollar will continue to weaken and gaming between major currencies will escalate," it said.
 
David Bloom, currency chief at HSBC, said the root problem is lack of underlying demand in the global economy, leaving Western economies trapped near stalling speed. "There are no policy levers left. Countries are having to tighten fiscal policy, and interest rates are already near zero. The last resort is a weaker currency, so everybody is trying to do it," he said.
Pious words from G20 summit of finance ministers last month calling for the world to "refrain" from pursuing trade advantage through devaluation seem most honoured in the breach.

...

So the question that Ben Bernanke and his colleagues should ask themselves is whether they have thought through the global ramifications of their actions, and how the strategic consequences might rebound against America itself.


(continued)

[agentbluescreen]

More like time to completely give up on the Circus.

The tragic reelection of the Criminal Bush RepublicRAT neocons is a disaster that promises America 2 more years of deadly, self-destructive, leaderless, do-nothing hopelessness.

[Satyagraha]

More like time to completely give up on the Circus.

The tragic reelection of the Criminal Bush RepublicRATs is a disaster that promises America 2 more years of deadly, self-destructive, leaderless, do-nothing hopelessness.

While Americans watch the circus acts, the banker cartel will celebrate as they plot the next steps in the destruction of the economy, without worry - even though promises of 20% devaluation of the dollar are all over the news -- it's not appearing in any of the three rings spotlighted by the mass media. They will enjoy their cocktails and cigars on Jekyll Island.

[citizenx]

It's official now.  600$ billion for right now.  Possibly increasing the money supply by as much as 5-6%.  Reasonable to expect a drop in thte value of the dollar of approximately the same.  Will it be immediate or gradual?  No one can say.  Dollar drpped against the Euro and rallied against the Yen today.  I think it will be gradual, but I can't say over what sort of time frame.

I guess it will be help our exports of waste paper and metal to China.

Another crock o'shit and probably just the tip of the iceberg.  They may implement Krugman's plan slowly if allowed to.  This needs to be nipped in the bud.

Audit the Fed.

[citizenx]

Just wanted to add, since the markets (including currency/forex) are largely anticipatory, it is reasonable to expect the impact of this expansion of the money supply to take place even before all the purchases have been made -- ostensibly, within the next eight months.  So, we are talking about an additional weakening of the dollar of perhaps upwards of 6% within the next eight months.  That is in addtion to the loss of more than 23% of the value of the dollar versus the Yen, say, since the beginning of the "Financial Crisis of 07'/08'/09'/10'(?)".

Suggesting a total loss of the value of the dollar of around 30%, maybe, by mid-next year.  Much more if our honored loonies like Krugman, get their way.  The dollar will have lost an additional 30% of its value in four years.  It has, of course, lost 95%+ of its value since the Federal Reserve was started on Jekyll Island 100 years ago.  Happy Birthday, fu#%ers.

And, no.  I do not consider it impossible that we will experience "hyperinflation" by then -- or subsequently.  I consider the above analysis to be a conservative scenario/estimate, based on facts and reasonable assumptions I think any objective person would agree to.

[citizenx]

Thanks, letsbereal, again for this one:

Here's The New York Fed's $900 Billion Strategy For Quantitative Easing 2

Gregory White | Nov. 3, 2010, 2:33 PM | 2,141 |

The New York Fed plans to purchase securities worth $850 to $900 billion in the second round of quantitative easing. It works like this: There will be an additional amount of purchases worth $600 billion (that's the headline number from the Fed today). But there will also be a reinvestment of $250 to $300 billion from payments associated with other securities it already holds. That makes QE2 feel a whole lot bigger, and closer to the top end $1 trillion number that was mentioned.

http://www.businessinsider.com/new-york-fed-quantitative-easing-2-2010-11
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Of course, it could be closer to ten trillion, again, if Krugman and others get their way. Devaluation, then could be more on the order of another 9-10% then within the next eight months.  More, if things go wrong, and that is entirely possible. Basically, another hidden tax on everything an everybody.

[citizenx]

So, one trillion has already become two trillion (or four trillion) according to Goldman Sachs:

Goldman: Real Cost Of Fed “Easing” Will Exceed $2 Trillion – Gold Hits Record High        


Endless printing of money out of thin air will continue into 2012

Steve Watson
Prisonplanet.com
Thursday, Nov 4th, 2010

UPDATE: Gold has hit a new record high in response to the Fed’s openly stated plan to kill the dollar.

Goldman Sachs anticipates that the real cost of the second round of quantitative easing will be in excess of $2 trillion and will continue well into 2012, while other prominent economists have denounced the Fed’s actions.

The Fed announced yesterday that it would purchase $600 billion in Treasury securities in a statement that left open the possibility of the real cost rising much higher.

“The Committee will regularly review the pace of its securities purchases and the overall size of the asset-purchase program in light of incoming information and will adjust the program as needed to best foster maximum employment and price stability.” the statement read.

As pointed out by Tyler Durden at the Zero Hedge blog, Goldman Sachs has predicted that the real cost of the Fed’s plan will sky rocket.

“We believe that the program will grow significantly beyond the initial $600 billion” remarks Goldman’s Jan Hatzius.

“In practice, QE2 is likely to continue well beyond June 2011—at least well into 2012—if our forecasts for unemployment and inflation are close to the mark. We believe that purchases could ultimately cumulate to around $2 trillion…” she continues.

“Under our longer-term projections it is easy to come up with models that show no tightening until 2015 or later.”

In a report last month Hatzius concluded that the projections for QE could reach $4 trillion.

As we reported yesterday, the Fed no longer cares about hiding the fact that it is openly devaluing the dollar and forcing China and other major countries to move away from holding reserves of the currency.

Several prominent economists and even some of the Fed’s own members have warned that the resulting decline in the value of the dollar and rampant inflation could spell disaster for any possible economic recovery.

Meanwhile, influential professor of economics Nouriel Roubini today tweeted that the purchase of debt will continue into a third and fourth round. but will do nothing to revive the real economy.

http://www.prisonplanet.com/goldman-real-cost-of-fed-easing-will-exceed-2-trillion.html
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Ten triliion, here we come.