The Movement To Abolish Central Banks Including The United States’ Central Bank : The Federal Reserve System — Videos

Posted on February 15, 2015. Filed under: American History, Banking, Blogroll, Books, British History, Communications, Constitution, Corruption, Crisis, Documentary, Economics, Employment, Energy, European History, Faith, Family, Federal Government, Federal Government Budget, Fiscal Policy, Food, Freedom, government, government spending, history, Law, Life, Links, Macroeconomics, media, Monetary Policy, Money, Money, Non-Fiction, People, Philosophy, Photos, Politics, Radio, Radio, Rants, Raves, Strategy, Talk Radio, Tax Policy, Television, Video, Wealth, Welfare, Wisdom, Writing | Tags: , , , , , , , , , , , , , |

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PDF of Book

http://mises.org/sites/default/files/The%20Case%20Against%20the%20Fed_2.pdf

Rothbard provides a succinct account of the origins of money, showing how money must originate from a commodity. Banking originated from goldsmiths, who issued warehouse receipts for gold deposited with them. From this a fractional reserve system developed, inherently prone to monetary expansion and panic.

In the late nineteenth century, a movement toward bank centralization arose among both “progressives” and bankers, the latter eager to increase their profits. From these plans, the Federal Reserve System developed. Rothbard shows the dominate influence of the banking House of Morgan at the Fed’s inception. During the New Deal, Rockefeller interests took first place in influence, with the Morgan interests reduced to a subordinate though still potent role.

The book concludes with an account of the Fed’s role in causing inflation and the business cycle. Abolition of this nefarious agency must be part of any agenda for genuine financial reform.

http://mises.org/library/case-against-fed-0

 

Milton Friedman – Abolish The Fed

Milton Friedman: The Purpose of the Federal Reserve

Milton Friedman teaches Monetary Policy

Milton Friedman on Money / Monetary Policy (Federal Reserve) Part 1

Milton Friedman on Money / Monetary Policy (Federal Reserve) Part 2

FIAT EMPIRE: Why the Federal Reserve Violates the U.S. Constitution

the creature

 

The Creature From Jekyll Island (by G. Edward Griffin)

G. Edward Griffin – The Collectivist Conspiracy

“If America Doesn’t ABOLISH the FED, the FED will ABOLISH America” | G. Edward Griffin

Thomas Sowell: Federal Reserve a ‘Cancer’

Experts Agree – The Fed Must End!

Establishment is Afraid of End The Fed Movement in Germany

Incredible Speech By Wall Street Protester End The Fed 2011

End the Fed

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G. Edward Griffin — The Creature from Jekyll Island — Interviewed By Glenn Beck — Videos

Posted on August 10, 2013. Filed under: American History, Banking, Blogroll, Books, Business, College, Communications, Economics, Education, Federal Government, Federal Government Budget, Fiscal Policy, government spending, history, History of Economic Thought, Inflation, Investments, Language, Law, liberty, Life, Links, Macroeconomics, media, Monetary Policy, Money, People, Philosophy, Politics, Public Sector, Raves, Resources, Tax Policy, Unions, Video, Wealth, Wisdom | Tags: , , , , , |

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Glenn Beck discuss the Fed w/ G. Edward Griffin about his book The Creature from Jekyll Island

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Banking–Videos

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The Coming U.S. Stock and Bond Market Crash of 2013-2014 — The Stock and Bond Big Bubble Burst — Central Banks Buying Gold! — Videos

Posted on April 27, 2013. Filed under: American History, Banking, Blogroll, Books, Business, College, Communications, Computers, Constitution, Crime, Demographics, Diasters, Economics, Education, Employment, Energy, European History, Federal Government, Federal Government Budget, Fiscal Policy, government, government spending, Health Care, history, History of Economic Thought, Immigration, Inflation, Investments, Law, liberty, Life, Links, Literacy, Macroeconomics, media, Microeconomics, Monetary Policy, Money, People, Philosophy, Politics, Private Sector, Public Sector, Radio, Rants, Raves, Regulations, Resources, Security, Strategy, Talk Radio, Tax Policy, Taxes, Technology, Television, Transportation, Unemployment, Unions, Video, War, Wealth, Wisdom | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

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Great_recessionGreat_Depression

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fed-dollars-2003-2012fed-balance-sheet-2016

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BREAKING 2013 Economic Collapse Peter Schiff

Overdose: The Next Financial Crisis

David Stockman: We’re in a Monetary Fantasy Land

Ben Bernanke Is The Most Dangerous Man In US History

US BOND BUBBLE’S READY TO BURST!

Max Keiser: Propped Up Bond Market Set To Burst In April

U.S. Government Bond Bubble to Burst, Faber Says 

James Grant and James Turk discuss gold, the Fed and the fiscal situation of the USA

USA Will Die – Economic Collapse 2013 – Jim Rogers

JIM ROGERS – 2013 to Be Bad, ‘God Knows What Will Happen in 2014’

Jim Rogers Predicts Global Depression In 2013-2014

Peter Schiff on Max Keiser – Stopping the Global Financial Crisis

Keiser Report: Psyops & Debt Diets

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MAX KEISER: Colossal Collapse Coming! Keiser Report

MAX KEISER: Colossal Collapse Coming! Keiser Report

ALEX JONES & Max Keiser 2013, Year of The GREAT CRASH!

Peter Schiff – Dollar Could Collapse This Fall 2013

Peter Schiff – Economic Collapse 2013

Fed Will Keep Printing Until The Dollar Collapses~ Jim Rickards

Jim Rickards  Gold is Money ($7,000 Gold Price)

James Rickards Predicts US Inflation in 2013 due to the Devaluation of the US dollar

Currency Wars: Jim Rickards

Financial Pearl Harbor’ is a Real Threat Warns a Pentagon Adviser

CNBC Global Recession Is Coming – Marc Faber

Dr. Marc Faber – US is in 50-100 trillion worth of debt!

Marc Faber ‘We Are in the End Game’ Part 1

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ECONOMIC CRASH WORLDWIDE STARTING

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Background Articles and Videos

Meltdown (pt 1-4) The Secret History of the Global Financial Collapse 2010

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Meltdown – pt 4-4 The Secret History of the Global Financial Collapse (2010) 

The Fall of Lehman Brothers

Goldman Sachs: Power and Peril – Documentary

The Ascent of Money: A Financial History of The World by Niall Ferguson Epsd. 1-5 (Full Documentary)

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The Fall of the Dollar – The Death of a Fiat Currency part 2

The First 12 Hours of a US Dollar Collapse

LIFE HIDDEN TRUTH 2013 GLOBAL FINANCIAL CRISIS

 

Billionaires Dumping Stocks, Economist Knows Why

 

Despite the 6.5% stock market rally over the last three months, a handful of billionaires are quietly dumping their American stocks . . . and fast.

Warren Buffett, who has been a cheerleader for U.S. stocks for quite some time, is dumping shares at an alarming rate. He recently complained of “disappointing performance” in dyed-in-the-wool American companies like Johnson & Johnson, Procter & Gamble, and Kraft Foods.

In the latest filing for Buffett’s holding company Berkshire Hathaway, Buffett has been drastically reducing his exposure to stocks that depend on consumer purchasing habits. Berkshire sold roughly 19 million shares of Johnson & Johnson, and reduced his overall stake in “consumer product stocks” by 21%. Berkshire Hathaway also sold its entire stake in California-based computer parts supplier Intel.

With 70% of the U.S. economy dependent on consumer spending, Buffett’s apparent lack of faith in these companies’ future prospects is worrisome.

Unfortunately Buffett isn’t alone.

Fellow billionaire John Paulson, who made a fortune betting on the subprime mortgage meltdown, is clearing out of U.S. stocks too. During the second quarter of the year, Paulson’s hedge fund, Paulson & Co., dumped 14 million shares of JPMorgan Chase. The fund also dumped its entire position in discount retailer Family Dollar and consumer-goods maker Sara Lee.

Finally, billionaire George Soros recently sold nearly all of his bank stocks, including shares of JPMorgan Chase, Citigroup, and Goldman Sachs. Between the three banks, Soros sold more than a million shares.

So why are these billionaires dumping their shares of U.S. companies?

After all, the stock market is still in the midst of its historic rally. Real estate prices have finally leveled off, and for the first time in five years are actually rising in many locations. And the unemployment rate seems to have stabilized.

It’s very likely that these professional investors are aware of specific research that points toward a massive market correction, as much as 90%.

One such person publishing this research is Robert Wiedemer, an esteemed economist and author of the New York Times best-selling book Aftershock.

Editor’s Note: Wiedemer Gives Proof for His Dire Predictions in This Shocking Interview.

Before you dismiss the possibility of a 90% drop in the stock market as unrealistic, consider Wiedemer’s credentials.

In 2006, Wiedemer and a team of economists accurately predicted the collapse of the U.S. housing market, equity markets, and consumer spending that almost sank the United States. They published their research in the book America’s Bubble Economy.

The book quickly grabbed headlines for its accuracy in predicting what many thought would never happen, and quickly established Wiedemer as a trusted voice.

A columnist at Dow Jones said the book was “one of those rare finds that not only predicted the subprime credit meltdown well in advance, it offered Main Street investors a winning strategy that helped avoid the forty percent losses that followed . . .”

The chief investment strategist at Standard & Poor’s said that Wiedemer’s track record “demands our attention.”

And finally, the former CFO of Goldman Sachs said Wiedemer’s “prescience in (his) first book lends credence to the new warnings. This book deserves our attention.”

In the interview for his latest blockbuster Aftershock, Wiedemer says the 90% drop in the stock market is “a worst-case scenario,” and the host quickly challenged this claim.

Wiedemer calmly laid out a clear explanation of why a large drop of some sort is a virtual certainty.

It starts with the reckless strategy of the Federal Reserve to print a massive amount of money out of thin air in an attempt to stimulate the economy.

“These funds haven’t made it into the markets and the economy yet. But it is a mathematical certainty that once the dam breaks, and this money passes through the reserves and hits the markets, inflation will surge,” said Wiedemer.

“Once you hit 10% inflation, 10-year Treasury bonds lose about half their value. And by 20%, any value is all but gone. Interest rates will increase dramatically at this point, and that will cause real estate values to collapse. And the stock market will collapse as a consequence of these other problems.”

Read Latest Breaking News from Newsmax.com http://www.moneynews.com/MKTNews/billionaires-dump-economist-stock/2012/08/29/id/450265?PROMO_CODE=110D8-1&utm_source=taboola#ixzz2RhO2R5ey
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Ron Paul’s Hunt For Delegates At State Conventions–Videos

Posted on May 19, 2012. Filed under: American History, Banking, Blogroll, Business, College, Communications, Demographics, Diasters, Economics, Employment, Energy, Federal Government Budget, Fiscal Policy, Health Care, history, Immigration, Inflation, Investments, Language, Law, liberty, Life, Links, Macroeconomics, media, Monetary Policy, Money, Music, People, Philosophy, Politics, Public Sector, Raves, Resources, Tax Policy, Taxes, Unemployment, Unions, Vacations, Video, War, Wealth, Weather, Wisdom | Tags: , , , , , , , , |

Fox Going Through Post manic Stress: Ron Paul A Major Threat 

40% Delegates are Ron Paul!!!!!!!!!! 

Breaking News: All Delegates Are Unbound!! Proof and Evidence

FOX News – Ron Paul Dominating State Conventions 5/7/12 

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Is Ron Paul electable? 

Ron Paul Has Not Suspended His Campaign!!

“Ron Paul Won Minnesota & Washington State!” Rachel Maddow (THIS IS HOW WE DO IT BABY!) 

Today Is a HUGE Day For The Ron Paul Campaign! 

Ron Paul’s Interview with CNBCs Larry Kudlow !!

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American People Are Waking Up–Time For A New Political Party–Ron Paul First President–Are You A 3 Percenter?–Videos

Posted on January 17, 2012. Filed under: Blogroll, Business, College, Communications, Economics, Education, Employment, Federal Government, Fiscal Policy, Foreign Policy, government, history, Inflation, Law, liberty, Life, Macroeconomics, media, Microeconomics, People, Philosophy, Politics, Psychology, Rants, Raves, Security, Talk Radio, Tax Policy, Taxes, Unemployment, Video, War, Wealth, Weapons, Wisdom | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

G. Edward Griffin – The Collectivist Conspiracy

“In this exclusive 80 minute video interview, legendary conspiracy author G. Edward Griffin explains how his research, which spans no less than 5 decades, has revealed a banking elite obsessed with enforcing a world government under a collectivist model that will crush individualism and eventually institute martial law as a response to the inevitable backlash that will be generated as a result of a fundamental re-shaping of society.

Griffin discusses the similarities between the extreme left and the extreme right in the false political paradigm and how this highlights a recurring theme – collectivism. Collectivism is the opposite of individualism and believes that the interests of the individual must be sacrificed for the greater good of the greater number, explains Griffin, uniting the doctrines of communism and fascism. Both the Republican and Democrat parties in the United States are committed to advancing collectivism and this is why the same policies are followed no matter who is voted in to the White House.

“All collectivist systems eventually deteriorate into a police state because that’s the only way you can hold it together,” warns Griffin.

Carroll Quigley, Georgetown University Professor and mentor to former president Bill Clinton, explained in his books Tragedy and Hope and The Anglo-American Establishment, how the elite maintained a silent dictatorship while fooling people into thinking they had political freedom, by creating squabbles between the two parties in terms of slogans and leadership, while all the time controlling both from the top down and pursuing the same agenda. Griffin documents how the Tea Party, after its beginnings as a grass roots movement, was later hijacked by the Republicans through the likes of Sarah Palin and Glenn Beck.

Pointing out how Republicans and Democrats agree on the most important topics, such as US foreign policy, endless wars in the Middle East, and the dominance of the private banking system over the economy, Griffin lays out how the left-right hoax is used to steer the destiny of America.

Griffin also talks at length on a myriad of other important subjects, such as the move towards a Chinese-style censored Internet, the demonization of the John Birch Society as a racist extremist group, the Hegelian dialectic, the power of tax-exempt foundations and the Council on Foreign Relations, the movement towards world government, and the question of whether the elite are really worried about the growing awareness of their agenda amongst Americans.”

An Idea Whose Time Has Come – G. Edward Griffin – Freedom Force International – Full

There is no point in worrying about the erosion of personal freedom that is the reality of our present era if we can do nothing about it. They say that knowledge is power, but that is one of the greatest myths of all history. Knowledge without action is useless and leads only to apathy and despair. So the question is: what type of action can reverse this trend? Writing letters and signing petitions to the same people who have created the problem is not going to do it. Voting for candidates selected by power brokers with hidden agendas will not do it either. There have been many proposals to reverse the tide of totalitarianism but, after decades of effort, none of them have worked. In this address, G. Edward Griffin, Founder of Freedom Force, tells us why; and the reason is so simple, it will astound you. Once we clear away that single barrier, the plan for a pro-active counter-force falls quickly into place. This is the missing piece of the puzzle, the ultimate solution we have been seeking. Visit http://www.freedom-force.org
The solution is simple. It is to take back control of the power centers of society, one-by-one, just the way they were captured in the first place. Replace the collectivists with people who have no personal agendas except to defend freedom. This will unleash the vast human potential for prosperity and happiness that can be realized only in the absence of government oppression. However, to reach that goal, it will be necessary for those who cherish freedom to do more than complain and far more than just casting a vote every few years. They must reach for power. That is the reason for the motto of Freedom Force: Impotentes defendere libertatem non possunt, which is Latin for “Those without power cannot defend freedom.”

G. Edward Griffin- On Individualism v Collectivism #1

G. Edward Griffin- On Individualism v Collectivism #2

G. Edward Griffin- On Individualism v Collectivism #3

G. Edward Griffin- On Individualism v Collectivism #4

The Best Enemies Money Can Buy – Prof. Antony C. Sutton

“…A classic interview by Professor Antony Sutton, who taught economics at California State University, and was a research fellow at Stanford University’s Hoover Institution. In this talk, Prof. Sutton goes into his impeccable research on how a close-knit group of Western financiers and industrialists (centered around Morgan and Rockefeller in the US, and around Milner and the City financiers, in the UK) created and sustained their three supposed enemies right from the very beginning: Soviet Russia, Nazi Germany, and FDR’s Fabian socialism.
Particularly, he goes into how Wall Street/City of London financiers used their banking institutions and their industrial enterprises to:
1) Help finance and sustain the Bolshevik Revolution. Build up Soviet industry during Lenin’s Five-Year Plans, both through finance, technology/industrial transfers and technical assistance. Continue to build the Soviets throughout the entire Cold War, through the same kinds of deals. This included the Korea and the Vietnam eras, during which American troops were being killed by… Western-made Soviet equipment.
2) Build up Nazi Germany, both financially and industrially;
3) Get FDR into power in America as their man, and even draw up the New Deal policies, especially FDR’s National Recovery Act — designed by Gerard Swopes of General Electric and deeply welcomed by Wall Streeters Morgan, Warburg and Rockefeller.
Sutton was not a wild speculator. He was a distinguished academic researcher who documented his conclusions impeccably in his several works. Not being able to counter his research, the establishment (including academia) simply attempts to ignore it, and pretend it isn’t there. The purpose for these Wall Street policies was very simple: to create, and globalize, what Sutton calls Corporate Socialism. A system under which everything in society is ruled by the state, and the state is, in its stead, controlled by financiers who, hence, get to rule and manage society, to their liking. In other words, to get society to work for the financiers, using a socialist state as an intermediary. This is what we now know as the globalization economic model. As a result of all the clashes of the 20th century, most notably WWII and the Cold War (fought between powers that were manipulated and controlled by these banker cliques), the world has been ‘globalized’. Meaning that it has been entirely taken over by these financiers, and is ever closer to being completely ruled by them, through not only the national states and national central banking systems, but mainly through supranational agencies and institutions.
Go into Professor Sutton’s books, most notably the Hoover Institute’s series on Western technological/industrial transfers to the Soviets and the ‘Wall Street’ trilogy. If you have a difficulty in purchasing the original books, you’ll find most of them are easily available online, on pdf form. …”

Capitalist Elites Funded the Bolshevik Revolution [Professor Antony Sutton] 

Socialism – A Tool of the Capitalist Elite [Professor Antony Sutton]

George Carlin -“Who Really Controls America”

Background Articles and Videos

The Creature From Jekyll Island (by G. Edward Griffin) 

Rare year 1982 video with G. Edward Griffin & Norman Dodds#1

Rare year 1982 video with G. Edward Griffin & Norman Dodds#2

Rare year 1982 video with G. Edward Griffin & Norman Dodds#3

Rare year 1982 video with G. Edward Griffin & Norman Dodds#4

Rare year 1982 video with G. Edward Griffin & Norman Dodds#5

Rare year 1982 video with G. Edward Griffin & Norman Dodds#6

Rare Carroll Quigley interview – 1974 (Full Interview) 

G. Edward Griffin on ‘Glen Beck’ Exposes Criminal Nature and Total Secrecy of Federal Reserve System

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The Big Swap: Federal Reserve Bails Out European Banks–American People Pay By Higher Prices-Inflation–Videos

Posted on December 1, 2011. Filed under: Banking, Blogroll, Business, College, Communications, Economics, Education, Federal Government, Fiscal Policy, Foreign Policy, government spending, Homes, Inflation, Investments, Language, Law, liberty, Life, Links, Macroeconomics, media, Microeconomics, Monetary Policy, Money, People, Philosophy, Politics, Public Sector, Rants, Raves, Strategy, Talk Radio, Taxes, Unions, Video, War, Wealth, Wisdom | Tags: , , , , , , , |

James Rickards the Latest on the IMF and the Fed

James Rickards on the IMF becoming a Central Bank and the Fed becoming a Hedge Fund

Angell Says Fed Not Pushing ECB to Lower Interest Rates

US to bail out Europe because Germans refuse to

US banks downgraded

Eurozone debt vs US debt

Is The US Bailing Out Europe ?

Soaring Markets Reveal Clues About Big Banks’ Levels of Trust, Comfort

Background Articles and Videos

Has the Fed saved Europe? – MoneyWeek Investment Tutorial

Central bank liquidity swap

“…Central bank liquidity swap is a type of currency swap used by a country’s central bank to provide liquidity of its currency to another country’s central bank. [1][2]

On December 12, 2007, the Federal Open Market Committee (FOMC) announced that it had authorized temporary reciprocal currency arrangements (central bank liquidity swap lines) with the European Central Bank and the Swiss National Bank to help provide liquidity in U.S. dollars to overseas markets.[3] Subsequently, the FOMC authorized liquidity swap lines with additional central banks. The swap lines are designed to improve liquidity conditions in U.S. and foreign financial markets by providing foreign central banks with the capacity to deliver U.S. dollar funding to institutions in their jurisdictions during times of market stress.[4]

As of April 2009[update], swap lines were authorized with the following institutions: the Reserve Bank of Australia, the Banco Central do Brasil, the Bank of Canada, Danmarks Nationalbank, the Bank of England, the European Central Bank, the Bank of Japan, the Bank of Korea, the Banco de Mexico, the Reserve Bank of New Zealand, Norges Bank, the Monetary Authority of Singapore, Sveriges Riksbank, and the Swiss National Bank. The FOMC authorized these liquidity swap lines through October 30, 2009.

The Federal Reserve operates swap lines under the authority of Section 14 of the Federal Reserve Act and in compliance with authorizations, policies, and procedures established by the FOMC.

Description

These swaps involve two transactions. When a foreign central bank draws on its swap line with the Federal Reserve, the foreign central bank sells a specified amount of its currency to the Federal Reserve in exchange for dollars at the prevailing market exchange rate. The Federal Reserve holds the foreign currency in an account at the foreign central bank. The dollars that the Federal Reserve provides are deposited in an account that the foreign central bank maintains at the Federal Reserve Bank of New York. At the same time, the Federal Reserve and the foreign central bank enter into a binding agreement for a second transaction that obligates the foreign central bank to buy back its currency on a specified future date at the same exchange rate. The second transaction unwinds the first. At the conclusion of the second transaction, the foreign central bank pays interest, at a market-based rate, to the Federal Reserve.

When the foreign central bank lends the dollars it obtained by drawing on its swap line to institutions in its jurisdiction, the dollars are transferred from the foreign central bank’s account at the Federal Reserve to the account of the bank that the borrowing institution uses to clear its dollar transactions. The foreign central bank remains obligated to return the dollars to the Federal Reserve under the terms of the agreement, and the Federal Reserve is not a counterparty to the loan extended by the foreign central bank. The foreign central bank bears the credit risk associated with the loans it makes to institutions in its jurisdiction.

Revenue and cost impacts

The foreign currency that the Federal Reserve acquires is an asset on the Federal Reserve’s balance sheet. In tables 1, 9, and 10 of the H.4.1 statistical release, the dollar value of amounts that the foreign central banks have drawn but not yet repaid is reported in the line “Central bank liquidity swaps.”[5] Because the swap will be unwound at the same exchange rate that was used in the initial draw, the dollar value of the asset is not affected by changes in the market exchange rate. The dollar funds deposited in the accounts that foreign central banks maintain at the Federal Reserve Bank of New York are a Federal Reserve liability. In principle, draws would initially appear in tables 1, 9, and 10 in the line “foreign and official” deposits. However, the foreign central banks generally lend the dollars shortly after drawing on the swap line. At that point, the funds shift to the line “deposits of depository institutions.”

When a foreign central bank draws on its swap line to fund its dollar tender operations, it pays interest to the Federal Reserve in an amount equal to the interest the foreign central bank earns on its tender operations. The Federal Reserve holds the foreign currency that it acquires in the swap transaction at the foreign central bank (rather than lending it or investing it in private markets) and does not pay interest. The structure of the arrangement serves to avoid domestic currency reserve management difficulties for foreign central banks that could arise if the Federal Reserve actively invested the foreign currency holdings in the marketplace.[4]

The Federal Reserve Board issues a weekly release that includes information on the aggregate value of swap drawings outstanding. With the onset of the Global financial crisis of 2008–2009 and the collapse of Lehman Brothers on September 15, 2008, the balance grew rapidly. As of April 2009[update] the balance was $293,533 million.[5] Central bank liquidity swaps have maturities ranging from overnight to three months. Table 2 of the H.4.1 statistical release reports the remaining maturity of outstanding central bank liquidity swaps.[5] …”

http://en.wikipedia.org/wiki/Central_bank_liquidity_swap

 

What Are Fed Swap Lines and What Do They Do?

By Phil Izzo

“…The Federal Reserve moved in coordinated action with foreign central banks this morning in order to provide a pressure-release valve for funding markets without exposing the U.S. central bank to much risk.

The Fed announced an expansion of its program that supplies dollars to overseas markets at a cheaper rate. Basically, the Fed lends dollars to foreign central banks in return for their local currency for a specific period. Since the Fed isn’t lending to banks directly, the risk is essentially nonexistent, and it also isn’t exposed to changes in currency rates since the exchange rate is set for the duration of the swap.

The liquidity swap arrangements have a history of use when there are tensions in funding markets. They were used following the terrorist attacks of September 11, 2001and were revived in 2007 and used extensively during the financial crisis, especially after the collapse of Lehman Brothers when credit markets dried up. As market conditions improved, they were shut down in February 2010, but revived in May 2010 as sovereign debt problems began to emerge in Europe. (The Fed has a useful Q&A you can find here, and New York Fed research noted the success of the lines during the financial crisis) …”

http://blogs.wsj.com/economics/2011/11/30/what-are-fed-swap-lines-and-what-do-they-do/

 

 

 

 

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The Lie That Failed–Ben Bernanke and The Federal Reserve Monetization Of Treasury Debt With Quantitative Easing–Robbing The American People–Videos

Posted on December 6, 2010. Filed under: Banking, Blogroll, Culture, Demographics, Economics, Education, Federal Government, Fiscal Policy, government, Investments, Language, Law, liberty, Life, Links, Monetary Policy, Money, People, Philosophy, Politics, Taxes, Technology, Video, Wisdom | Tags: , , , , , , , , , , , |

Fed Chairman Bernanke On The Economy

60 minutes Ben Bernenke Interview December 5 2010

Quantitative Easing Only Tool Left for Fed

Quantitative Easing Explained

Quantitative Easing — How Does it Work in the Real World?

Quantitative Easing, the Fed, Finance, and Inflation — QE

Quantitative Easing Bernanke — History & Objectives of QE

Quantitative Easing (QE) 2010 — 2011 Why is the Fed printing money?

Quantitative Easing Explained — Who Gets Fed’s Printed Money?

QE2: Quantitative Easing Investing & Stock Market Consequences

Kroszner Interview on Bernanke’s CBS Appearance – Video – Bloomberg.flv

 

Jim Rogers on QE2 – ‘It has never worked’

 

Federal Reserve Debt Monetization Explained.

 

“Looks Like Magic” – Ron Paul on the Fed’s Money Machine

 

Peter Schiff : Dollar not mighty any more

 

CNBC: Fed’s Big Gamble–What Could Go Wrong?

 

Peter Schiff Proves He Is A Baboon By Claiming QE2 A Government Conspiracy To Support Treasuries

 

Peter Schiff : It’s Scary How Clueless Bernanke Is!

 

The FED’s magic with money

 

FED Was Liquefying The World

 

Peter Schiff : Dollar not mighty any more

 

Fed Bank Documents Revealed

 

Background Articles and Videos

Introduction to Monetary Policy

The Chairman Part 1

 

The Chairman Part 2

 

 

 

 

FED using foreign banks to monetize debt behind closed doors

 

Reply to Quantitative Easing Explained

 

Black Friday, the Federal Reserve, & The Global House Of Cards

Money supply

 

“…Empirical measures

Money is used as a medium of exchange, in final settlement of a debt, and as a ready store of value. Its different functions are associated with different empirical measures of the money supply. There is no single “correct” measure of the money supply: instead, there are several measures, classified along a spectrum or continuum between narrow and broad monetary aggregates. Narrow measures include only the most liquid assets, the ones most easily used to spend (currency, checkable deposits). Broader measures add less liquid types of assets (certificates of deposit, etc.)

This continuum corresponds to the way that different types of money are more or less controlled by monetary policy. Narrow measures include those more directly affected and controlled by monetary policy, whereas broader measures are less closely related to monetary-policy actions.[6] It is a matter of perennial debate as to whether narrower or broader versions of the money supply have a more predictable link to nominal GDP.

The different types of money are typically classified as “M”s. The “M”s usually range from M0 (narrowest) to M3 (broadest) but which “M”s are actually used depends on the country’s central bank. The typical layout for each of the “M”s is as follows:

Type of money M0 MB M1 M2 M3 MZM
Notes and coins (currency) in circulation (outside Federal Reserve Banks, and the vaults of depository institutions) V[8] V V V V V
Notes and coins (currency) in bank vaults V[8] V
Federal Reserve Bank credit (minimum reserves and excess reserves) V
traveler’s checks of non-bank issuers V V V V
demand deposits V V V V
other checkable deposits (OCDs), which consist primarily of negotiable order of withdrawal (NOW) accounts at depository institutions and credit union share draft accounts. V[9] V V V
savings deposits V V V
time deposits less than $100,000 and money-market deposit accounts for individuals V V
large time deposits, institutional money market funds, short-term repurchase and other larger liquid assets[10] V
all money market funds V
  • M0: In some countries, such as the United Kingdom, M0 includes bank reserves, so M0 is referred to as the monetary base, or narrow money.[11]
  • MB: is referred to as the monetary base or total currency.[8] This is the base from which other forms of money (like checking deposits, listed below) are created and is traditionally the most liquid measure of the money supply.[12]
  • M1: Bank reserves are not included in M1.
  • M2: represents money and “close substitutes” for money.[13] M2 is a broader classification of money than M1. Economists use M2 when looking to quantify the amount of money in circulation and trying to explain different economic monetary conditions. M2 is a key economic indicator used to forecast inflation.[14]
  • M3: Since 2006, M3 is no longer tracked by the US central bank.[15] However, there are still estimates produced by various private institutions. (M2 +large deposits and other large, long-term deposits)
  • MZM: Money with zero maturity. It measures the supply of financial assets redeemable at par on demand.

The ratio of a pair of these measures, most often M2/M0, is called an (actual, empirical) money multiplier.Fractional-reserve banking

Main article: Fractional-reserve banking

The different forms of money in government money supply statistics arise from the practice of fractional-reserve banking. Whenever a bank gives out a loan in a fractional-reserve banking system, a new sum of money is created. This new type of money is what makes up the non-M0 components in the M1-M3 statistics. In short, there are two types of money in a fractional-reserve banking system[16][17]:

  1. central bank money (physical currency, government money)
  2. commercial bank money (money created through loans) – sometimes referred to as private money, or checkbook money[18]

In the money supply statistics, central bank money is MB while the commercial bank money is divided up into the M1-M3 components. Generally, the types of commercial bank money that tend to be valued at lower amounts are classified in the narrow category of M1 while the types of commercial bank money that tend to exist in larger amounts are categorized in M2 and M3, with M3 having the largest.

Reserves are deposits that banks have received but have not loaned out. In the USA, the Federal Reserve regulates the percentage that banks must keep in their reserves before they can make new loans. This percentage is called the minimum reserve requirement. This means that if a person makes a deposit for $1000.00 and the bank reserve mandated by the FED is 10% then the bank must increase its reserves by $100.00 and is able to loan the remaining $900.00. The maximum amount of money the banking system can legally generate with each dollar of reserves is called the (theoretical) money multiplier, and, following the formula for the sum of an infinite convergent geometric series, can be calculated as the reciprocal of the minimum reserve. For example, with a reserve of 20%, the money multiplier would be 5, as 20% divided into 100% makes 5.

Example

Note: The examples apply when read in sequential order.

M0

  • Laura has ten US $100 bills, representing $1000 in the M0 supply for the United States. (MB = $1000, M0 = $1000, M1 = $1000, M2 = $1000)
  • Laura burns one of her $100 bills. The US M0, and her personal net worth, just decreased by $100. (MB = $900, M0 = $900, M1 = $900, M2 = $900)

M1

  • Laura takes the remaining nine bills and deposits them in her checking account at her bank. (MB = $900, M0 = 0, M1 = $900, M2 = $900)
  • The bank then calculates its reserve using the minimum reserve percentage given by the Fed and loans the extra money. If the minimum reserve is 10%, this means $90 will remain in the bank’s reserve. The remaining $810 can only be used by the bank as credit, by lending money, but until that happens it will be part of the banks excess reserves.
  • The M1 money supply increased by $810 when the loan is made. M1 the money has been created. ( MB = $900 M0 = 0, M1 = $1710, M2 = $1710)
  • Laura writes a check for $400, check number 7771. The total M1 money supply didn’t change, it includes the $400 check and the $500 left in her account. (MB = $900, M0 = 0, M1 = $1710, M2 = $1710)
  • Laura’s check number 7771 is accidentally destroyed in the laundry. M1 and her checking account do not change, because the check is never cashed. (MB = $900, M0 = 0, M1 = $1710, M2 = $1710)
  • Laura writes check number 7772 for $100 to her friend Alice, and Alice deposits it into her checking account. MB does not change, it still has $900 in it, Alice’s $100 and Laura’s $800. (MB = $900, M0 = 0, M1 = $1710, M2 = $1710)
  • The bank lends Mandy the $810 credit that it has created. Mandy deposits the money in a checking account at another bank. The other bank must keep $81 as a reserve and has $729 available for loans. This creates a promise-to-pay money from a previous promise-to-pay, thus the M1 money supply is now inflated by $729. (MB = $900, M0 = 0, M1 = $2439, M2 = $2439)
  • Mandy’s bank now lends the money to someone else who deposits it on a checking account on yet another bank, who again stores 10% as reserve and has 90% available for loans. This process repeats itself at the next bank and at the next bank and so on, until the money in the reserves backs up an M1 money supply of $9000, which is 10 times the M0 money. (MB = $900, M0 = 0, M1 = $9000, M2 = $9000)

M2

  • Laura writes check number 7774 for $1000 and brings it to the bank to start a Money Market account (these do not have a credit-creating charter), M1 goes down by $1000, but M2 stays the same. This is because M2 includes the Money Market account in addition to all money counted in M1.

Foreign Exchange

  • Laura writes check number 7776 for $200 and brings it downtown to a foreign exchange bank teller at Credit Suisse to convert it to British Pounds. On this particular day, the exchange rate is exactly USD $2.00 = GBP £1.00. The bank Credit Suisse takes her $200 check, and gives her two £50 notes (and charges her a dollar for the service fee). Meanwhile, at the Credit Suisse branch office in Hong Kong, a customer named Huang has £100 and wants $200, and the bank does that trade (charging him an extra £.50 for the service fee). US M0 still has the $900, although Huang now has $200 of it. The £50 notes Laura walks off with are part of Britain’s M0 money supply that came from Huang.
  • The next day, Credit Suisse finds they have an excess of GB Pounds and a shortage of US Dollars, determined by adding up all the branch offices’ supplies. They sell some of their GBP on the open FX market with Deutsche Bank, which has the opposite problem. The exchange rate stays the same.
  • The day after, both Credit Suisse and Deutsche Bank find they have too many GBP and not enough USD, along with other traders. Then, To move their inventories, they have to sell GBP at USD $1.999, that is, 1/10 cent less than $2 per pound, and the exchange rate shifts. None of these banks has the power to increase or decrease the British M0 or the American M0; they are independent systems.

The Federal Reserve previously published data on three monetary aggregates, but on 10 November 2005 announced that as of 23 March 2006, it would cease publication of M3.[15] Since the Spring of 2006, the Federal Reserve only publishes data on two of these aggregates. The first, M1, is made up of types of money commonly used for payment, basically currency (M0) and checking account balances. The second, M2, includes M1 plus balances that generally are similar to transaction accounts and that, for the most part, can be converted fairly readily to M1 with little or no loss of principal. The M2 measure is thought to be held primarily by households. As mentioned, the third aggregate, M3 is no longer published. Prior to this discontinuation, M3 had included M2 plus certain accounts that are held by entities other than individuals and are issued by banks and thrift institutions to augment M2-type balances in meeting credit demands; it had also included balances in money market mutual funds held by institutional investors. The aggregates have had different roles in monetary policy as their reliability as guides has changed. The following details their principal components[19]:

  • M0: The total of all physical currency, plus accounts at the central bank that can be exchanged for physical currency.
  • M1: The total of all physical currency part of bank reserves + the amount in demand accounts (“checking” or “current” accounts).
  • M2: M1 + most savings accounts, money market accounts, retail money market mutual funds,and small denomination time deposits (certificates of deposit of under $100,000).
  • M3: M2 + all other CDs (large time deposits, institutional money market mutual fund balances), deposits of eurodollars and repurchase agreements.

When the Federal Reserve announced in 2005 that they would cease publishing M3 statistics in March 2006, they explained that M3 did not convey any additional information about economic activity compared to M2, and thus, “has not played a role in the monetary policy process for many years.” Therefore, the costs to collect M3 data outweighed the benefits the data provided.[15] Some politicians have spoken out against the Federal Reserve’s decision to cease publishing M3 statistics and have urged the U.S. Congress to take steps requiring the Federal Reserve to do so. Libertarian congressman Ron Paul (R-TX) claimed that “M3 is the best description of how quickly the Fed is creating new money and credit. Common sense tells us that a government central bank creating new money out of thin air depreciates the value of each dollar in circulation.”[20] Some of the data used to calculate M3 are still collected and published on a regular basis.[15] Current alternate sources of M3 data are available from the private sector.[21] However, some would argue[citation needed] that since the Federal Reserve has even less control over the fluctuations of M3 than over those of M2, it is unclear why this number is relevant to monetary policy.

As of 4 November 2009 the Federal Reserve reported that the U.S. dollar monetary base is $1,999,897,000,000. This is an increase of 142% in 2 years.[22] The monetary base is only one component of money supply, however. M2, the broadest measure of money supply, has increased from approximately $7.41 trillion to $8.36 trillion from November 2007 to October 2009, the latest month-data available. This is a 2-year increase in U.S. M2 of approximately 12.9%.[23] …”

http://en.wikipedia.org/wiki/Money_supply

 

 

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