Up Up and Away Interest Rates Will Go — Until The Next Recession Hits — Fed Debates Use of Word Patient — It Is The Economy Stupid, Not The Stock Market and Wealth Effect — The Coming Deflation Caused By The Fed? — The Failure of Command and Control of Money’s Price — Interest Rates — Videos

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The Pronk Pops Show Podcasts

Pronk Pops Show 427: March 16, 2015

Pronk Pops Show 426: March 6, 2015

Pronk Pops Show 425: March 4, 2015

Pronk Pops Show 424: March 2, 2015

Pronk Pops Show 423: February 26, 2015

Pronk Pops Show 422: February 25, 2015 

Pronk Pops Show 421: February 20, 2015

Pronk Pops Show 420: February 19, 2015

Pronk Pops Show 419: February 18, 2015

Pronk Pops Show 418: February 16, 2015

Pronk Pops Show 417: February 13, 2015

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Pronk Pops Show 415: February 11, 2015

Pronk Pops Show 414: February 10, 2015

Pronk Pops Show 413: February 9, 2015

Pronk Pops Show 412: February 6, 2015

Pronk Pops Show 411: February 5, 2015

Pronk Pops Show 410: February 4, 2015

Pronk Pops Show 409: February 3, 2015

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Pronk Pops Show 407: January 30, 2015

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Pronk Pops Show 404: January 27, 2015

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Pronk Pops Show 402: January 23, 2015

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Pronk Pops Show 400: January 21, 2015

Pronk Pops Show 399: January 16, 2015

Pronk Pops Show 398: January 15, 2015

Pronk Pops Show 397: January 14, 2015

Pronk Pops Show 396: January 13, 2015

Pronk Pops Show 395: January 12, 2015

Pronk Pops Show 394: January 7, 2015

Pronk Pops Show 393: January 5, 2015

Pronk Pops Show 392: December 19, 2014

Pronk Pops Show 391: December 18, 2014

Pronk Pops Show 390: December 17, 2014

Pronk Pops Show 389: December 16, 2014

Pronk Pops Show 388: December 15, 2014

Pronk Pops Show 387: December 12, 2014

Pronk Pops Show 386: December 11, 2014

Pronk Pops Show 385: December 9, 2014

Pronk Pops Show 384: December 8, 2014

Pronk Pops Show 383: December 5, 2014

Pronk Pops Show 382: December 4, 2014

Pronk Pops Show 381: December 3, 2014

Pronk Pops Show 380: December 1, 2014

Story 1: Up Up and Away Interest Rates Will Go — Until The Next Recession Hits — Fed Debates Use of Word Patient — It Is The Economy Stupid, Not The Stock Market and Wealth Effect — The Coming Deflation Caused By The Fed? — The Failure of Command and Control of Money’s Price — Interest Rates — Videos

Janet Yellennot completeFederal Reserve Board Of Governors Commemorates 100th Anniversary Of Federal Reserve Act
stay the3 coursefederal funds rate

Fed-Funds 03_Fed Balance SheetCentral-bank-balance-sheetsfed_funds_rate_qe_1_2_3Fed-AssetsFed-Balance-sheetFed-Balance-Sheet-SP500-010815 Fed-Balance-Sheet-VS-SP500-112013Federal-Reserve-Asset-Composition-QE (1)
gold federal balance sheet Mortgage-Backed-Securities-held-by-the-Federal-Reserve-All-Maturities.1 peter-catranis-fed-funds1 sp federal balance sheet

Up Up and Away

Fifth Dimension – Up Up & Away , My Beautiful Balloon

Janet Yellen’s Senate Testimony in Two Minutes

The Fed is Trapped in ZIRP World

Keiser Report: Derp-like policy of ZIRP and NIRP (E613)

Federal Reserve Chair Janet Yellen: 5.7% Unemployment Rate Paints Rosier Picture Than U-6 Rate

Yellen Says Fed Still ‘patient’ on Raising Rates

Peter Schiff on The Strong Dollar, U.S. market risk and Fed Chair Janet Yellen

Jim Rickards on Fed Chair Janet Yellen and The Strong Dollar

What is QUANTiTATIVE EASING | Federal Reserve (Central Banks)

Fed Caused Oil Crash, Stocks Next

The Fed, interest rates, and the markets

When will the Fed raise interest rates

Plosser: Deflation not a risk to US economy

Michael Snyder- Deflation then Inflation Through the Roof

ECONOMIC COLLAPSE Gold Manipulation, Wages Decline, Inflation, Deflation. Print

Milton Friedman – Abolish The Fed

Peter Schiff: Why We Should END the Fed?

Milton Friedman Explains the Cause of the Great Depression

Milton Friedman On John Maynard Keynes

Murray Rothbard on Economic Recessions

Deflation the Biggest Risk of the Economic Crisis? – Janet Yellen

Fed Reserve Janet Yellen Wont Raise Interest Rates To Fight Bubbles

The Fed and Fractional Reserve Banking Caused the Great Depression – Milton Friedman

Milton Friedman – Money and Inflation

Milton Friedman – Monetary Revolutions

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

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

Booms and Busts, Mises vs Keynes – And Religion As a Bulwark against Tyranny

NEW WORLD ORDER 2015 ECONOMIC COLLAPSE

Colorful Time-Lapse of Hot Air Balloons in New Mexico

Abba – Money, Money, Money

WHAT IT MEANS IF FED NO LONGER SAYS IT’S ‘PATIENT’ ON RATES

For the Federal Reserve, patience may no longer be a virtue.

Surrounding the Fed’s policy meeting this week is the widespread expectation that it will no longer use the word “patient” to describe its stance on raising interest rates from record lows.

The big question is: What will that mean?

Many economists say the dropping of “patience” would signal that the Fed plans to start raising rates in June to reflect a steadily strengthening U.S. job market. Others foresee no rate hike before September. And a few predict no increase before year’s end at the earliest.

Complicating the decision is a surging U.S. dollar, which is keeping inflation far below the Fed’s target rate and posing a threat to U.S. corporate profits and possibly to the economy. A rate increase could send the dollar even higher.

In a statement it will issue when its meeting ends Wednesday and in a news conference Chair Janet Yellen will hold afterward, the Fed isn’t likely to telegraph its timetable. Yellen has said that any decision to raise rates will reflect the latest economic data and that the Fed must remain flexible.

Still, nervous investors have been selling stocks out of concern that a rate increase – which could slow borrowing and spending and weigh on the economy – is coming soon.

“I think the odds are better than 50-50 that the Fed … will drop the word `patient’ at the March meeting, and that would put an initial rate hike in play, perhaps as early as the June meeting,” said David Jones, author of several books about the Fed.

Historically, the Fed raises rates as the economy strengthens in order to control growth and prevent inflation from overheating. Over the past 12 months, U.S. employers have added a solid 200,000-plus jobs every month. And unemployment has reached a seven-year low of 5.5 percent, the top of the range the Fed has said is consistent with a healthy economy.

The trouble is that the Fed isn’t meeting its other major policy goal – achieving stable inflation, which it defines as annual price increases of around 2 percent. According to the Fed’s preferred inflation gauge, prices rose just 0.2 percent over the past 12 months. In part, excessively low U.S. inflation reflects sinking energy prices and the dollar’s rising value, which lowers the prices of goods imported to the United States.

It isn’t just inflation that remains below optimal levels. Though the job market has been strong, the overall economy has yet to regain full health. The economy slowed to a tepid 2.2 percent annual rate in the October-December quarter, and economists generally think the current quarter might be even weaker. Manufacturers are struggling with falling exports, partly because of the strong dollar, and consumers – the drivers of the economy – have seemed reluctant to spend their windfall savings from cheaper energy.

What’s more, pay for many workers remains stagnant, and there are 6.6 million part-timers who can’t find full-time jobs – nearly 50 percent more than in 2007, before the recession began.

For those reasons, some analysts think it would be premature to raise rates soon.

“The last thing the Fed wants to do right now is spook the markets and the economy into an even slower growth trajectory,” said Brian Bethune, an economics professor at Tufts University.

After it met in December, the Fed said for the first time that it would be “patient’ about raising rates. Yellen said that meant there would be no increase at the Fed’s next two meetings. And in testimony to Congress last month, she cautioned that even when “patient” is dropped, it won’t necessarily signal an imminent rate hike – only that the Fed will think the economy has improved enough for it to consider a rate increase on a “meeting-by-meeting basis.”

Some economists say the Fed may tweak its policy statement this week to signal that a higher inflation outlook would be needed before any rate hike. And they expect the Fed to go further in coming months to ready investors for the inevitable.

“The process is going to be glacial,” said Diane Swonk, chief economist at Mesirow Financial in Chicago. “They want to prepare the markets for change, but they don’t want to scare them.”

Though Swonk thinks the Fed will drop “patient” from its statement this week, she doesn’t expect a rate hike before September. Even then, she foresees only small increases in its benchmark rate.

Sung Won Sohn, an economics professor at the Martin Smith School of Business at California State University, suggested that the Fed’s strategy in beginning to raise rates won’t be to slow the economy. Rather, he thinks the goal will be to manage the expectations of investors, some of whom weren’t even in business in 2004, the last time the Fed began raising rates.

“The Fed is just trying to send a message that the world is about to enter a new age after a long period of low interest rates to a period of rising rates,” Sohn said.

http://hosted.ap.org/dynamic/stories/U/US_FEDERAL_RESERVE?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2015-03-16-12-46-02

Fed Watch: The End of “Patient” and Questions for Yellen

Tim Duy:

The End of “Patient” and Questions for Yellen, by Tim Duy: FOMC meeting with week, with a subsequent press conference with Fed Chair Janet Yellen. Remember to clear your calendar for this Wednesday. It is widely expected that the Fed will drop the word “patient” from its statement. Too many FOMC participants want the opportunity to debate a rate hike in June, and thus “patient” needs to go. The Fed will not want this to imply that a rate hike is guaranteed at the June meeting, so look for language emphasizing the data-dependent nature of future policy. This will also be stressed in the press conference. Of interest too will be the Fed’s assessment of economic conditions since the last FOMC meeting. On net, the data has been lackluster – expect for the employment data, of course. The latter, however, is of the highest importance to the Fed. I anticipate that they will view the rest of the data as largely noise against the steadily improving pace of underlying activity as indicated by employment data. That said, I would expect some mention of recent softness in the opening paragraph of the statement. I don’t think the Fed will alter its general conviction that low readings on inflation are largely temporary. They may even cite improvement in market-based measures of inflation compensation to suggest they were right not to panic at the last FOMC meeting. I am also watching for how they describe the international environment. I would not expect explicit mention of the dollar, but maybe we will see a coded reference. Note that in her recent testimony, Yellen said:

But core PCE inflation has also slowed since last summer, in part reflecting declines in the prices of many imported items and perhaps also some pass-through of lower energy costs into core consumer prices.

Stronger dollar means lower prices of imported items. The press conference will be the highlight of the meeting. Presumably, Yellen will continue to build the case for a rate hike. Since the foundation of that case rests on the improvement in labor markets and the subsequent impact on inflationary pressures, it is reasonable to ask:

On a scale of zero to ten, with ten being most confident, how confident is the Committee that inflation will rise toward target on the basis on low – and expected lower – unemployment?

Considering that low wage growth suggests it is too early to abandon Yellen’s previous conviction that unemployment is not the best measure of labor market tightness, we should consider:

Is faster wage growth a precondition to raising interest rates?

I expect the answer would be “no, wages are a lagging indicator.” The Federal Reserve seems to believe that policy will still remain very accommodative even after the first rate hike. We should ask for a metric to quantify the level of accommodation:

What is the current equilibrium level of interest rates? Where do you see the equilibrium level of interest rates in one year?

A related question regards the interpretation of the yield curve:

Do you consider low interest long-term interest rates to be indicative of loose monetary conditions, or a signal that the Federal Reserve needs to temper its expectations of the likely path of interest rates as indicated in the “dot plot”?

Relatedly, differential monetary policy is supporting capital inflows, depressing US interest rates and strengthening the dollar. This dynamic ignited a debate of what it means for the economy and how the Fed should or should not respond. Thus:

The dollar is appreciating at the fastest rate in many years. Is the appreciating dollar a drag on the US economy, or is any negative impact offset by the positive demand impact of looser monetary policy abroad? How much will the dollar need to appreciate before it impacts the direction of monetary policy?

Given that the Fed seems determined to raise interest rates, we should probably be considering some form of the following as a standard question:

Consider the next six months. Which is greater – the risk of moving too quickly to normalize policy, or the risk of delay? Please explain, with specific reference to both risks.

Finally, a couple of communications questions. First, the Fed is signaling that they do not intend to raise rates on a preset, clearly communicated path like the last hike cycle. Hence, we should not expect “patient” to be replaced with “measured.” But it seems like the FOMC is too contentious to expect them to shift from no hike one meeting to 25bp the next, then back to none – or maybe 50bp. So, let’s ask Yellen to explain the plan:

There appears to be an effort on the part of the FOMC to convince financial markets that rate hikes, when they begin, will not be on a pre-set path. Given the need for consensus building on the FOMC, how can you credibly commit to renegotiate the direction of monetary policy at each FOMC meeting? How do you communicate the likely direction of monetary policy between meetings?

Finally, as we move closer to policy normalization, the Fed should be rethinking the “dot plot,” which was initially conceived to show the Fed was committed to a sustained period of low rates. Given that the dot-plot appears to be fairly hawkish relative to market expectations, it may not be an appropriate signal in a period of rising interest rates. Time for a change? But is the Fed considering a change, and when will we see it? This leads me to:

Cleveland Federal Reserve President Loretta Mester has suggested revising the Summary of Economic Projections to explicitly link the forecasts of individual participants with their “dots” in the interest rate projections. Do you agree that this would be helpful in describing participants’ reaction functions? When will this or any other revisions to the Summary of Economic Projections be considered?

Bottom Line: By dropping “patient” the Fed will be taking another step toward the first rate hike of this cycle. But how long do we need to wait until that first hike? That depends on the data, and we will be listening for signals as to how, or how not, the Fed is being impacted by recent data aside from the positive readings on the labor market. http://economistsview.typepad.com/economistsview/fed_watch/

Fed Watch: ‘Patient’ is History

Tim Duy:

Patient’ is History: The February employment report almost certainly means the Fed will no longer describe its policy intentions as “patient” at the conclusion of the March FOMC meeting. And it also keep a June rate hike in play. But for June to move from “in play” to “it’s going to happen,” I still feel the Fed needs a more on the inflation side. The key is the height of that inflation bar. The headline NFP gain was a better-than-expected 295k with 18k upward adjustment for January. The 12-month moving average continues to trend higher:

NFPa030615

Unemployment fell to 5.5%, which is the top of the central range for the Fed’s estimate of NAIRU. Still, wage growth remains elusive:

NFPb030615

Is wage growth sufficient to stay the Fed’s hand?  I am not so sure. Irecently wrote:

My take is this: To get a reasonably sized consensus to support a rate hike, two conditions need to be met. One is sufficient progress toward full-employment with the expectation of further progress. I think that condition has already been met. The second condition is confidence that inflation will indeed trend toward target. That condition has not been met. To meet that condition requires at least one of the following sub-conditions: Rising core-inflation, rising market-based measures of inflation compensation, or accelerating wage growth. If any were to occur before June, I suspect it would be the accelerating wage growth.

I am less confident that we will see accelerating wage growth by June, although I should keep in mind we still have three more employment reports before that meeting. Note, however, low wage growth does not preclude a rate hike. The Fed hiked rates in 1994 in a weak wage growth environment:

NFPg030615

And again in 2004 liftoff occurred on the (correct) forecast of accelerating wage growth:

NFPf030615

So wage growth might not be there in June to support a rate hike. And, as I noted earlier this weaker, I have my doubts on whether core-inflation would support a rate hike either. That leaves us with market-based measures of inflation compensation. And at this point, that just might be the key:

NFPe030615

If bond markets continue to reverse the oil-driven inflation compensation decline, the Fed may see a way clear to hiking rates in June. But the pace and timing of subsequent rate hikes would still be data dependent. I would anticipate a fairly slow, halting path of rate hikes in the absence of faster wage growth. Bottom Line:  “Patient” is out. Tough to justify with unemployment at the top of the Fed’s central estimates of NAIRU. Pressure to begin hiking rates will intensify as unemployment heads lower. The inflation bar will fall, and Fed officials will increasingly look for reasons to hike rates rather than reasons to delay. They may not want to admit it, but I suspect one of those reasons will be fear of financial instability in the absence of tighter policy. June is in play.

https://www.youtube.com/watch?v=pvYh53vbD3g

The Pronk Pops Show Podcasts Portfolio

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Read Full Post | Make a Comment ( None so far )

No Tapering! — Spending Addiction Disorder (SAD) — Fed Must Continue Massive Financing of Deficits and Debt of Federal Government — Digital Electronic Money (DEM) Creation Continues At $85 Billion Per Month or $1,020 Billion Per Year Pace — U.S. Economy Stagnating Below 3 Percent GDP Growth Trend Line — U.S. Dollar Devalued — Currency War Continues — Abolish The Fed Videos

Posted on September 19, 2013. Filed under: American History, Banking, Blogroll, College, Communications, Economics, Education, Employment, European History, Federal Government, Federal Government Budget, Fiscal Policy, government spending, history, History of Economic Thought, Inflation, Investments, IRS, Law, liberty, Life, Links, Macroeconomics, media, Microeconomics, Monetary Policy, Money, People, Philosophy, Photos, Politics, Programming, Psychology, Raves, Regulations, Resources, Security, Strategy, Talk Radio, Tax Policy, Taxes, Technology, Unemployment, Video, Wealth, Wisdom | Tags: , , , , , , , , , , , , , , , , , , , , , |

5-reasons-the-fed-taper-will-kick-off-in-september

Tracking-the-Fed-September

U.S. National Debt Clock

BUREAU OF THE FISCAL SERVICE
                                                  STAR - TREASURY FINANCIAL DATABASE
             TABLE 1.  SUMMARY OF RECEIPTS, OUTLAYS AND THE DEFICIT/SURPLUS BY MONTH OF THE U.S. GOVERNMENT (IN MILLIONS)

                                                        ACCOUNTING DATE:  08/13

   PERIOD                                                                     RECEIPTS                OUTLAYS    DEFICIT/SURPLUS (-)
+  ____________________________________________________________  _____________________  _____________________  _____________________
   PRIOR YEAR

     OCTOBER                                                                   163,072                261,539                 98,466
     NOVEMBER                                                                  152,402                289,704                137,302
     DECEMBER                                                                  239,963                325,930                 85,967
     JANUARY                                                                   234,319                261,726                 27,407
     FEBRUARY                                                                  103,413                335,090                231,677
     MARCH                                                                     171,215                369,372                198,157
     APRIL                                                                     318,807                259,690                -59,117
     MAY                                                                       180,713                305,348                124,636
     JUNE                                                                      260,177                319,919                 59,741
     JULY                                                                      184,585                254,190                 69,604
     AUGUST                                                                    178,860                369,393                190,533
     SEPTEMBER                                                                 261,566                186,386                -75,180

       YEAR-TO-DATE                                                          2,449,093              3,538,286              1,089,193

   CURRENT YEAR

     OCTOBER                                                                   184,316                304,311                119,995
     NOVEMBER                                                                  161,730                333,841                172,112
     DECEMBER                                                                  269,508                270,699                  1,191
     JANUARY                                                                   272,225                269,342                 -2,883
     FEBRUARY                                                                  122,815                326,354                203,539
     MARCH                                                                     186,018                292,548                106,530
     APRIL                                                                     406,723                293,834               -112,889
     MAY                                                                       197,182                335,914                138,732
     JUNE                                                                      286,627                170,126               -116,501
     JULY                                                                      200,030                297,627                 97,597
     AUGUST                                                                    185,370                333,293                147,923

       YEAR-TO-DATE                                                          2,472,542              3,227,888                755,345

http://www.fms.treas.gov/mts/mts0813.txt

civilian_labor_participation_rate

InflationAug2013

US-Fed-Funds-Target-Rate

savings

fed_taper_bets

When-To-Taper

fed_taper

wrong_way

US Chairman of the Federal Reserve Ben Bernanke listens to questions as he testifies before a House Budget Committee on Capitol Hill in Washington

2013-09-17-bernanke-hands-over-control

janet_yellen

Tracking-the-Fed-September

Federal Reserve Vice Chair Janet Yellen addresses a conference in Washington

No Fed Taper: What Does It Mean for Your Money? (9/18/13)

Federal Reserve: No Taper (9/18/13)

Ron Paul: Fed Decision To Not Taper Is A Really Bad Sign

Ron Paul: Taper Fakeout Means Fed Is Worried

Breaking News: Federal Reserve Will Not Taper

Rick Santelli Reacts to Federal Reserve No Taper

Why The Fed. Will INCREASE, NOT DECREASE, It’s QE/Money Printing. By Gregory Mannarino

In Business – Fed Taper Pause Fuels Commodities Rally

To Taper, or Not to Taper

FED Says No Taper — We Need A War, Gun Confiscation And Control Of Internet First — Episode 166

JIM RICKARDS: Fed Will TAPER in September or Never, and the Looming MONETARY System COLLAPSE [50]

James Rickards on “Why The Fed Will NOT Taper Quantitative Easing”

Peter Schiff: “The party is coming to an end”.

JIM ROGERS – When the FED stops PRINTING FIAT CURRENCY the COLLAPSE will be here. PREPARE NOW

Fed decision Just idea of tapering caused huge ruckus

Background Articles and Videos

Milton Friedman – Abolish The Fed

Milton Friedman On John Maynard Keynes

Free to Choose Part 3: Anatomy of a Crisis (Featuring Milton Friedman)

Murray Rothbard – To Expand And Inflate

The Founding of the Federal Reserve | Murray N. Rothbard

The Origin of the Fed – Murray N. Rothbard

Murray Rothbard on Hyperinflation and Ending the Fed

Murray N. Rothbard on Milton Friedman (audio – removed noise) part 1/5

Keynes the Man: Hero or Villain? | Murray N. Rothbard

WASHINGTON (AP) — The Federal Reserve has decided against reducing its stimulus for the U.S. economy, saying it will continue to buy $85 billion a month in bonds because it thinks the economy still needs the support.

The Fed said in a statement Wednesday that it held off on tapering because it wants to see more conclusive evidence that the recovery will be sustained.

Stocks spiked after the Fed released the statement at the end of its two-day policy meeting.

In the statement, the Fed says that the economy is growing moderately and that some indicators of labor market conditions have shown improvement. But it noted that rising mortgage rates and government spending cuts are restraining growth.

The bond purchases are intended to keep long-term loan rates low to spur borrowing and spending.

The Fed also repeated that it plans to keep its key short-term interest rate near zero at least until unemployment falls to 6.5 percent, down from 7.3 percent last month. In the Fed’s most recent forecast, unemployment could reach that level as soon as late 2014.

Many thought the Fed would scale back its purchases. But interest rates have jumped since May, when Fed Chairman Ben Bernanke first said the Fed might slow its bond buys later this year. But Bernanke cautioned that the reduction would hinge on the economy showing continued improvement.

In its statement, the Fed says that the rise in interest rates “could slow the pace of improvement in the economy and labor market” if they are sustained.

The Fed also lowered its economic growth forecasts for this year and next year slightly, likely reflecting its concerns about interest rates.

The statement was approved on a 9-1 vote. Esther George, president of the Federal Reserve Bank of Kansas City, dissented for the sixth time this year. She repeated her concerns that the bond purchases could fuel the risk of inflation and financial instability.

The decision to maintain its stimulus follows reports of sluggish economic growth. Employers slowed hiring this summer, and consumers spent more cautiously.

Super-low rates are credited with helping fuel a housing comeback, support economic growth, drive stocks to record highs and restore the wealth of many Americans. But the average rate on the 30-year mortgage has jumped more than a full percentage point since May and was 4.57 percent last week — just below the two-year high.

The unemployment rate is now 7.3 percent, the lowest since 2008. Yet the rate has dropped in large part because many people have stopped looking for work and are no longer counted as unemployed — not because hiring has accelerated. Inflation is running below the Fed’s 2 percent target.

The Fed meeting took place at a time of uncertainty about who will succeed Bernanke when his term ends in January. On Sunday, Lawrence Summers, who was considered the leading candidate, withdrew from consideration.

Summers’ withdrawal followed growing resistance from critics. His exit has opened the door for his chief rival, Janet Yellen, the Fed’s vice chair. If chosen by President Barack Obama and confirmed by the Senate, Yellen would become the first woman to lead the Fed.

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Bernanke and Federal Reserve Will End The Keyboarding of Money and Buying Bonds in 2014 and May Lower Unemployment Threshold Below 6.5% — Videos

Posted on June 19, 2013. Filed under: American History, Banking, Blogroll, Business, Communications, Economics, Education, Employment, Federal Government, Federal Government Budget, Fiscal Policy, Foreign Policy, government spending, history, Inflation, Investments, Law, liberty, Life, Links, Literacy, Macroeconomics, media, Monetary Policy, Money, People, Philosophy, Politics, Radio, Raves, Resources, Reviews, Security, Talk Radio, Tax Policy, Taxes, Unemployment, Video, War, Wealth, Wisdom | Tags: , , , , , , , , , , , |

Senate Holds Hearing To Re-Nominate Ben Bernanke As Fed Chairman

Steve Forbes  Bernanke Has Failed   CNBC

Bernanke Says FOMC May Lower Unemployment Threshold

Press Conference with Chairman of the FOMC, Ben S. Bernanke 

FOMC Meeting: Does Fed, Ben Bernanke Fear QE Is Creating An Asset Bubble?

    Ben Bernanke’s Message Was Pro-Growth: Bill Gross

The Next Fed Chief: Who’s Best to Replace Ben Bernanke?

Peter Schiff Predicts Economic Crisis That Makes 2008 Look Like NOTHING!

Bernanke Says Fed on Course to End Asset Buying in 2014

Federal Reserve Chairman Ben S. Bernanke said the central bank may start dialing down its unprecedented bond-buying program this year and end it entirely in mid-2014 if the economy finally achieves the sustainable growth the Fed has sought since the recession ended in 2009.

The Federal Open Market Committee today left the monthly pace of bond purchases unchanged at $85 billion, while saying that “downside risks to the outlook for the economy and the labor market” have diminished. Policy makers raised their growth forecasts for next year to a range of 3 percent to 3.5 percent and reduced their outlook for unemployment to as low as 6.5 percent.

“If the incoming data are broadly consistent with this forecast, the committee currently anticipates that it would be appropriate to moderate the pace of purchases later this year,” Bernanke said in a press conference in Washington. If later reports meet the Fed’s expectations, “we will continue to reduce the pace of purchases in measured steps through the first half of next year, ending purchases around mid-year.”

Stocks and Treasuries slid as Bernanke’s comments raised the prospect of an end to the quantitative easing that has fueled a rally in financial markets and helped keep the world’s largest economy expanding in the face of federal budget cuts, a slowdown in China and a recession in the euro area.

Connecting Dots

“The Fed is out of the closet,” said Ward McCarthy, chief financial economist at Jefferies Group LLC in New York and a former Richmond Fed economist. “They expect to end these QE purchases. Bernanke wasn’t more specific than later this year, but connecting all the dots suggests he is thinking in the fourth quarter.”

The Standard & Poor’s 500 Index declined 1.4 percent to 1,628.93. The yield on the 10-year Treasury note jumped to 2.36 percent, the highest since March 2012, from 2.19 percent late yesterday.

Still, Bernanke tried to temper his message by saying that the Fed has “no deterministic or fixed plan” to end asset purchases.

“If you draw the conclusion that I just said that our policies — that our purchases will end in the middle of next year, you’ve drawn the wrong conclusion, because our purchases are tied to what happens in the economy,” he said. “If the economy does not improve along the lines that we expect, we will provide additional support.”

Open-Ended

Bernanke is expanding the Fed’s balance sheet toward $4 trillion as he seeks to reduce a jobless rate that stands at 7.6 percent after four years of economic growth. The Fed’s open-ended purchases, started last September and expanded in December, are unprecedented. In two previous rounds, it specified total purchases in advance.

“I’m surprised at how badly the Fed wants to taper” to a slower pace of purchases, said Julia Coronado, the chief economist for North America at BNP Paribas SA in New York and a former Fed economist. The Fed has “greater confidence than the average private sector forecaster in the outlook.”

The economy will grow 1.9 percent in 2013 and 2.7 percent in 2014, according to the median estimates in a Bloomberg survey. The economy has not grown more than 3 percent over the course of 12 months since the four quarters ending in June 2006.

The Fed also left unchanged its statement that it plans to hold its target interest rate near zero as long as unemployment remains above 6.5 percent and the outlook for inflation doesn’t exceed 2.5 percent.

Unemployment Threshold

Bernanke said policy makers might aim for a lower unemployment threshold before considering an increase in short-term interest rates.

“In terms of adjusting the threshold, I think that’s something that might happen,” he said in response to a question. “If it did happen, it would be to lower it, I’m sure, not to raise it.” He said an interest-rate increase is still “far in the future.”

Fed officials lowered their forecasts for the unemployment and inflation rates this year.

They now see a jobless rate of 7.2 percent to 7.3 percent, compared with 7.3 percent to 7.5 percent in their March forecasts. They predict the jobless rate will fall to 6.5 percent to 6.8 percent in 2014.

“Labor market conditions have shown further improvement in recent months, on balance, but the unemployment rate remains elevated,” the FOMC said in its statement. “Partly reflecting transitory influences, inflation has been running below the committee’s longer-run objective, but longer term inflation expectations have remained stable.”

Target Rate

Fifteen of 19 policy makers expect no increase in the federal funds rate before 2015, according to today’s forecasts. In March, 14 policy makers had that expectation.

The Fed repeated that it will keep buying assets “until the outlook for the labor market has improved substantially.” Bond purchases will remain divided between $40 billion a month of mortgage-backed securities and $45 billion a month of Treasury securities. The central bank also will continue reinvesting securities as they mature.

St. Louis Fed President James Bullard dissented for the first time in his tenure on the FOMC, saying the committee should “signal more strongly its willingness to defend its inflation goal in light of recent low inflation readings.”

Kansas City Fed President Esther George dissented for the fourth meeting in a row, continuing to cite concern that keeping the benchmark interest rate near zero risks creating “economic and financial imbalances,” including asset price bubbles.

Economists’ Forecasts

No change in policy was expected at today’s meeting. Fifty-eight of 59 economists in a June 4-5 Bloomberg Survey predicted the central bank would maintain the pace of purchases.

Inflation is providing little impetus for a tapering in bond purchases. A gauge of consumer prices excluding food and energy that is watched by the Fed rose 1.1 percent in the year through April, matching the smallest gain since records started in 1960. Officials expect inflation to slowly rise in coming years, with core prices climbing to 1.5 percent to 1.8 percent in 2014 and 1.7 percent to 2 percent in 2015.

Speculation that an improving economy will prompt Fed policy makers to reduce bond buying last month triggered the biggest jump in 10-year Treasury yields since December 2010.

About $2 trillion has been erased from the value of global equities since Bernanke told U.S. lawmakers on May 22 that the FOMC “could” consider reducing bond purchases within “the next few meetings” if officials see signs of improvement in the labor market and are convinced the gains can be sustained.

Mortgage Rates

Mortgage rates have soared the most in a decade on speculation the Fed’s purchases may slow. The interest rate on a 30-year fixed home loan climbed to a 14-month high of 3.98 percent last week, according to data compiled by Freddie Mac.

Bernanke is nearing the end of his second four-year term, a period marked by unprecedented measures to battle the deepest recession since the 1930s and then to keep the economy growing at a pace that’s brisk enough to put millions of unemployed Americans back to work.

The former Princeton professor cut the Fed’s target interest rate almost to zero in December 2008 and has led the central bank in three rounds of large-scale asset purchases that have swelled the Fed’s balance sheet to a record $3.41 trillion.

President Barack Obama, in an interview on PBS this week, provided one of the clearest signals yet that Bernanke may not remain beyond the end of his term on Jan. 31. Bernanke “already stayed a lot longer than he wanted or he was supposed to,” Obama said.

Bernanke declined to discuss his future at today’s press conference.

“We just spent two days working on monetary policy issues and I would like to keep the debate, discussion, questions here on policy,” he said in response to a question. “I don’t have anything for you on my personal plans.”

http://www.bloomberg.com/news/2013-06-19/fed-keeps-85-billion-pace-of-bond-buying-sees-risks-waning.html

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97% Owned–Video

Posted on January 2, 2013. Filed under: American History, Banking, Blogroll, Business, College, Communications, Economics, Education, government, government spending, history, History of Economic Thought, Inflation, Language, Law, liberty, Life, Links, Macroeconomics, media, Microeconomics, Monetary Policy, Money, People, Philosophy, Politics, Raves, Video, Wealth, Wisdom | Tags: , , , , , , , |

money

97% Owned – Monetary Reform documentary

97% owned present serious research and verifiable evidence on our economic and financial system. This is the first documentary to tackle this issue from a UK-perspective and explains the inner workings of Central Banks and the Money creation process.

When money drives almost all activity on the planet, it’s essential that we understand it. Yet simple questions often get overlooked, questions like; where does money come from? Who creates it? Who decides how it gets used? And what does this mean for the millions of ordinary people who suffer when the monetary, and financial system, breaks down?

Produced by Queuepolitely and featuring Ben Dyson of Positive Money, Josh Ryan-Collins of The New Economics Foundation, Ann Pettifor, the “HBOS Whistleblower” Paul Moore, Simon Dixon of Bank to the Future and Nick Dearden from the Jubliee Debt Campaign.

Political philosopher John Gray, commented, “We’re not moving to a world in which crises will never happen or will happen less and less.  We are in a world in which they happen several times during a given human lifetime and I think that will continue to be the case”
If you have decided that crisis as a result of the monetary system is not an event you want to keep revisiting in your life-time then this documentary will equip you with the knowledge you need, what you do with it is up to you.

Background Articles and Videos

The American Dream – Understanding Money and the Banking System

Money, Banking and the Federal Reserve

The Ascent of Money: A Financial History of The World by Niall Ferguson Epsd 1-5

The Ascent of Money:  A Financial History of The World by Niall Ferguson Epsd 6

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James Grant–Videos

Posted on August 3, 2012. Filed under: American History, Banking, Blogroll, Books, Climate, College, Communications, Economics, Education, Employment, Energy, Federal Government, Fiscal Policy, government, government spending, history, History of Economic Thought, Inflation, Investments, Language, Law, liberty, Life, Links, Macroeconomics, media, Microeconomics, Monetary Policy, Money, People, Philosophy, Politics, Raves, Resources, Unemployment, War, Wealth, Wisdom | Tags: , , , , , , , , , , , , , , |

Jim Grant explains how Central Banks are Waging War on Supply and Demand

James Grant Explains a World without the Federal Reserve – Capital

James Grant: Gold, the Refuge of the Idiots 

“What Does the Fed Do?” with James Grant — Ron Paul Fed Lecture Series, Pt 2/3

Q&A: Author James Grant

Value Investing Conference 2010 – Part 2

James Grant – on Bernanke, bank capital & lack of capitalism 

Jim Grant 

Never before has the Fed done what it’s doing now” 

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Thomas M. Hoenig–Is The Federal Reserve Following The Appropriate Monetary Policy?–Videos

Posted on June 4, 2011. Filed under: Agriculture, Banking, Blogroll, Books, Business, College, Communications, Economics, Education, Employment, Federal Government, Fiscal Policy, government, government spending, Investments, Law, liberty, Life, Links, media, Monetary Policy, Money, People, Philosophy, Politics, Psychology, Rants, Raves, Regulations, Security, Taxes, Video, War, Wealth, Wisdom | Tags: , , , , , |

Federal Money Manipulation just more lies.

Fed’s Hoenig Says More QE May Spark Bubbles, Inflation

 

Dr. Thomas M. Hoenig – Sowing the Seeds: Monetary Policy and  the Ag Economy

Background Articles and Videos

Web Extra: Fed Official Calls for Rate Hike

 

Thomas Hoenig, Federal Reserve Bank of Kansas City President

Thomas Michael Hoenig

“…Thomas Michael Hoenig[1] (born September 6, 1946) took office October 1, 1991, as the eighth chief executive of the Tenth District Federal Reserve Bank, in Kansas City, United States. He is currently serving a full term that began March 1, 2001. In 2010, he is serving as a voting member of the Federal Open Market Committee, as one of five of the twelve Federal Reserve Bank presidents that sit on the Committee on a yearly rotating basis. He is known as an inflation hawk.[2] …”

Hoenig was born in Fort Madison, Iowa, where his father owned a plumbing business. He was raised Catholic and attended Catholic schools.[3][4] Hoenig earned a B.A. in economics and mathematics from St. Benedict’s College (now Benedictine College), Atchison, Kansas, and M.A. and Ph.D. degrees in economics from Iowa State University.[5]

Hoenig joined the Federal Reserve Bank of Kansas City in 1973 as an economist in the banking supervision area. He was named a vice president in 1981 and senior vice president in 1986.

According to Fed salary figures released for 2010, Hoenig earns $374,400 per year, in the mid-range for the twelve regional bank chairs and considerably more than Fed chair Ben Bernanke ($199,700), whose pay is limited by law.[6]

He has served as an instructor of economics at the University of Missouri-Kansas City and lectured on the U.S. banking and regulatory system for the People’s Bank of China. Dr. Hoenig is a member of the Board of Trustees of the Ewing Marion Kauffman Foundation and serves on the boards of directors of Midwest Research Institute and Union Station.

On March 25, 2011 Hoenig announced his intent to retire on October 1, 2011, as required under the Federal Reserve Board’s mandatory retirement rules for Federal Reserve Bank Presidents. The retirement marks 20 years as president for Hoenig whose first day as Bank president was October 1, 1991, and 38 years of total service to the Federal Reserve.[7] …”

http://en.wikipedia.org/wiki/Thomas_M._Hoenig

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Francisco d’Anconia’s ‘Money Speech’ from Atlas Shrugged, by Ayn Rand–Videos

Posted on April 17, 2011. Filed under: American History, Banking, Blogroll, College, Communications, Economics, Education, Employment, European History, Foreign Policy, government, government spending, history, Language, Law, liberty, Life, Links, media, Monetary Policy, People, Philosophy, Psychology, Public Sector, Raves, Regulations, Resources, Technology, Unions, Video, War, Wealth, Wisdom | Tags: , , , , , , , , |

Francisco’s Money Speech Part 1

Francisco’s money speech Part 2

1 of 2 Money, the root of all evil? Francisco d’Anconia

2 of 2 Money, the root of all evil? Francisco d’Anconia

Francisco d’Anconia’s ‘Money Speech’ from Atlas Shrugged, by Ayn Rand

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Paul McKeever On Understanding Money and Banking–Videos

Posted on April 17, 2011. Filed under: American History, Banking, Blogroll, Business, Communications, Economics, government, government spending, history, Language, Law, liberty, Life, Links, media, Monetary Policy, Money, People, Philosophy, Politics, Psychology, Raves, Taxes, Video, Wealth, Wisdom | Tags: , , , , , |

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Posted on April 2, 2011. Filed under: American History, Biology, Blogroll, Chemistry, Communications, Diasters, Economics, Education, Employment, Energy, European History, Federal Government, Fiscal Policy, Foreign Policy, government, government spending, Health Care, history, Law, Life, Links, media, Nuclear Power, People, Philosophy, Physics, Politics, Rants, Raves, Resources, Science, Security, Technology, Transportation, Video, Wealth, Wisdom | Tags: , , , , , , , , , , , , , , , , , , , , , |

 

 

“Now, legal plunder can be committed in an infinite number of ways. Thus we have an infinite number of plans for organizing it: tariffs, protection, benefits, subsidies, encouragements, progressive taxation, public schools, guaranteed jobs, guaranteed profits, minimum wages, a right to relief, a right to the tools of labor, free credit, and so on, and so on. All these plans as a whole—with their common aim of legal plunder—constitute socialism.”

“We have tried so many things; when shall we try the simplest of all: freedom.”

~Frederic Bastiat

 

Give it a listen!

Pronk Pops Show 22 (Part 2)

April 08, 2011 11:16 AM PDT

Pronk Pops Show 22, April 7, 2011

Segment 1: 3,500,000 Million Americans Unemployed in March 2011 Still Exceeds Great Depression High of 13,000,000 In March 1933–The Obama Depressions Continues–Bureau of Labor Statistics: 8.8% Official Unemployment Rate (U-3) vs. Gallup Unemployment Rate of 10.0%–Nonfarm Payroll Increased By 216,000–The Government Makes The Depression Worse!–Videos

Segment 2: Obama’s Anti-American, Anti-Capitalist, Anti-Growth, Anti-Jobs, and Anti-Security Energy Policy–Videos

Segment 3: Republican Establishment Will Propose A Ten Year $6,200 Billion Cut In Spending Over Ten Years–The Problem Is It Does Not Balance The Budget For Another Five Years At The Earliest–Tea Party Movement Demands Balanced Budgets Starting In 2012 For The Next Ten Years!–A Jet Plane To Prosperity Not A Path To Prosperity–Videos

Segment 4: Just One More Thing Congressman Ryan: When Does The Republican’s Path To Prosperity Balance The Budget?–The Twelth of Never!–Videos

For additional information and videos on the above segments:

http://pronkpops.wordpress.com/2011/04/04/pronk-pops-show-22-april-5-2011-segment-113500000-million-americans-unemployed-in-march-2011-still-exceeds-great-depression-high-of-13000000-in-march-1933%E2%80%93the-obama-depressions-contin/

Pres. Obama Unveils Energy Plan: Full Speech

 

Media “On Board” With Skyrocketing Energy Prices Under Obama


 

http://www.wtrg.com/prices.htm

 

Crude Oil, Gasoline and Natural Gas Futures Price

NYMEX Prices for April 1,
2011

NYMEX Light Sweet Crude +1.22
$107.94
ICE Brent +1.34
$118.70
RBOB Gasoline NY Harbor +0.0436
$3.1513
Heating Oil NY Harbor +0.0220
$3.1345
NYMEX Natural Gas -0.027
$4.362

http://www.wtrg.com/index.html

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“…Crude oil, refining, distribution & marketing, and taxes are the four major cost components for estimates of the retail price of a gallon of gasoline:

  • Crude oil – the major feedstock used to produce gasoline. This portion of the gasoline price is represented by the cost of crude oil purchased by refiners.
  • Refining – processing the crude oil into gasoline. The refining portion of the gasoline price is the spread between the cost of crude oil purchased by refiners and the wholesale price of gasoline. This spread represents both the costs and profits associated with the refining process.
  • Distribution & Marketing (Retail) – the part of the supply chain where wholesale gasoline is brought to a retail station and sold to the final consumer. This portion of the gasoline price is the retail price minus the other three price components. It represents both the costs and profits associated with selling retail gasoline to the final consumer.
  • Taxes – The Federal Government levies a tax of 18.4 cents on each gallon of gasoline, and the States levy an average tax of 22 cents on each gallon. This does not account for all State and local taxes, such as sales taxes, so this component, ranging from 7.5 to 37.5 cents per gallon across States, is probably understated (and the Distribution and Marketing component correspondingly overstated). …”

http://www.eia.gov/todayinenergy/detail.cfm?id=470

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Forget about trying to decrease the demand for energy by wage, price and production controls and government regulations and executive orders.

Forget about trying to decrease the supply of energy by banning drilling and not approving permits to drill for oil and gas and build electrical power plants and oil refineries.

The United States government should not be in the energy or real estate business by trying to pick winners and losers with government subsidies and regulations.

The government is the problem by it pervasive interference and intervention into both the energy,  transportation, agriculture and real estate sectors of the economy.

Government produces nothing but uncertainty, inflation and massive debt.

If the Federal and state governments simply got out of the way the United States economy could double its rate of growth with a full employment.

Instead the United States economy now has more government employees than employees in the manufacturing sector.

Both Federal and state governments collect more in taxes from energy suppliers than the profits earned by energy companies.

The professional politicians of both political parties together with the government bureaucracies have become a drag on the economy and a threat to the liberties of the American people.

Get Federal and state governmenst out of business and businesses out of goverments.

First, permanently shut-down the Department of Energy, Department of Transportation,  Department of Interior and Department of Agriculture.

Second, sell off Federal lands to the highest bidders.

Third, lift all bans on oil and gas exploration on land and at sea.

Fourth, end all subsidies and mandates starting with ethanol.

Obama and Ethanol

 

PA Approves Higher Ethanol Fuel Blend for More Cars

 

Myth: Corn Ethanol is Great

 

The Ethanol Myth

 

Biofuels & Ethanol: The Real Story

Food Prices Rise to ‘Dangerous Levels’

 

Fifth, drill, drill, drill.

Dramatically increase the supply of all forms of energy fuels including coal, nuclear, natural gas,and  petroleum used for electrical power generation, transportation and heating.

 

The United States does not need an energy policy.

The United States and the American people are perfectly capable of producing all of the energy it needs from domestic sources.

This requies Federal and State governments to stop government intervention into the economy in the form of regulations, taxes, subsidies, and endless lawsuits.

What the United States needs to do is unleash free enterprise to produce the cheapest energy possible whatever the fuel source.

If wind and solar energy cannot make it in the market place without government subsidies, then stop the subsidies now.

If ethanol requires a government mandate to force Americans to use have it in their gasoline, then repeal the mandate now.

 

Obama Hates US…

DRILL! DRILL!! DRILL!!!

Take decisions about energy, transportation, agriculture and real estate out of the hands of the government and put these decision in our hands–the hands of the American people.

In Our Hands: American Free Enterprise, Anti-Communism, and the Cold War (1950)

 

With less than 5% of the world population and less than 6% of world’s land, the United States today produces over 20% of the world’s gross domestic product.  Sixty years ago the United States produced nearly 50% of the world gross domestic product!.

Put the American people back to work in a peace and prosperity economy and a constitutional republic.

Vote progressive radical socialists out of office including President Obama with his so-called energy policy with his master plan.

 

” In spite of the anticapitalistic policies of all governments and of almost all political parties, the capitalist mode of production is still fulfilling its social function in supplying the consumers with more, better and cheaper goods.”

~Ludwig von Mises, Planned Chaos, page 15


“Capitalism means free enterprise, sovereignty of the consumers in economic matters, and sovereignty of the voters in political matters. Socialism means full government control of every sphere of the individuals life and the unrestricted supremacy of the government in its capacity as central board of production management.”

~Ludwig von Mises, Bureaucracy, page 10

 

 

Background Articles and Videos

President Obama on Green Energy

Taking lawmakers to coal plants and a coal mine in 2010

How a coal power station works

Oil Crises and History

By Ed Wallace

“…Then the most overlooked story of all came out: Oil Movements, the British firm that tracks oil shipments worldwide, pointed out that OPEC nations were already shipping less oil last month. Not because of any uprisings or closures of oil fields as in Libya, but because oil shipments always fall this time of year. Refineries worldwide go down for maintenance, preparing to switch to summer fuels for the northern hemisphere and winter fuels for the southern regions.

In a nutshell, the system already has some slack because refineries don’t want as much oil right now.

Here in America, oil marketers have not picked up oil in certain Texas counties because there’s a shortage of tankers and rail cars to carry all of the crude available. That’s because refiners want oil from the Midwest and EF Sour Crude. Those carry a discount right now, which improves refiners’ profits.

Basically, oil prices are once again being over-hyped based on speculation. This time the only legitimate fear is that, if Saudi Arabia comes undone, a real oil crisis might break out. But that possibility is remote. …”

Oil Prices and History

“…

http://www.wtrg.com/prices.htm

Oil reserves

“…The total estimated amount of oil in an oil reservoir, including both producible and non-producible oil, is called oil in place. However, because of reservoir characteristics and limitations in petroleum extraction technologies, only a fraction of this oil can be brought to the surface, and it is only this producible fraction that is considered to be reserves. The ratio of producible oil reserves to total oil in place for a given field is often referred to as the recovery factor. Recovery factors vary greatly among oil fields. The recovery factor of any particular field may change over time based on operating history and in response to changes in technology and economics. The recovery factor may also rise over time if additional investment is made in enhanced oil recovery techniques such as gas injection, water-flooding,[1] or microbial enhanced oil recovery.

Because the geology of the subsurface cannot be examined directly, indirect techniques must be used to estimate the size and recoverability of the resource. While new technologies have increased the accuracy of these techniques, significant uncertainties still remain. In general, most early estimates of the reserves of an oil field are conservative and tend to grow with time. This phenomenon is called reserves growth.[2]

Many oil-producing nations do not reveal their reservoir engineering field data and instead provide unaudited claims for their oil reserves. The numbers disclosed by some national governments are suspected of being manipulated for political reasons.[3] …”

Summary of Reserve Data as of 2010
Country Reserves [16] Production [17] Reserve life 1
109 bbl 109 m3 106 bbl/d 103 m3/d years
Venezuela 297 47.2 2.7 430 301
Saudi Arabia 267 42.4 9.7 1,540 127.5
Canada 179 28.5 2.1 330 188
Iraq 143 22.7 3.5 560 112
Iran 138 21.9 4.0 640 95
Kuwait 104 16.5 2.6 410 110
United Arab Emirates 98 15.6 2.9 460 93
Russia 60 9.5 9.9 1,570 17
Kazakhstan 47 7.5 1.4 220 93
Libya 41 6.5 1.7 270 66
Nigeria 36 5.7 2.4 380 41
United States 21 3.3 7.5 1,190 8
China 16 2.5 3.9 620 11
Qatar 15 2.4 0.9 140 46
Algeria 12 1.9 2.2 350 15
Brazil 12 1.9 2.3 370 14
Mexico 12 1.9 3.5 560 9
Total of top seventeen reserves 1,243 197.6 63.5 10,100 54

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

List of countries by population

Rank↓ Country / Territory↓ Population↓ Date of estimate↓ % of World population↓ Source
World 6,909,700,000 April 3, 2011 100.00% US Census Bureau’s World Population Clock
1 People’s Republic of Chinan2 1,341,000,000 December 31, 2010 19.41% Official Chinese Population Estimate
2 India 1,210,193,422 March 1, 2011 17.51% Provisional 2011 Indian Census result
3 United States 311,092,000 April 3, 2011 4.5% Official United States Population Clock
4 Indonesia 237,556,363 May 2010 3.44% 2010 Indonesian Census
5 Brazil 190,732,694 August 1, 2010 2.76% 2010 Official Brazilian Census results
6 Pakistan 175,636,000 April 3, 2011 2.54% Official Pakistani Population clock
7 Nigeria 158,259,000 2010 2.29% 2008 UN estimate for year 2010
8 Bangladesh 150,314,000 April 3, 2011 2.18% Official Bangladeshi Population Clock
9 Russia 142,905,200 January 1, 2011 2.07% 2010 Russian Census
10 Japan 127,960,000 March 1, 2011 1.84% Official Japan Statistics Bureau
11 Mexico 112,336,538 June 12, 2010 1.63% 2010 final census result
12 Philippines 94,013,200 Mid-2010 1.36% National Statistics Office medium projection
13 Vietnam 86,930,000 April 1, 2010 1.26% Official estimate
14 Germany 81,802,000 December 31, 2009 1.18% Official estimate
15 Egypt 80,025,000 April 3, 2011 1.16% Official Egyptian Population clock
16 Ethiopia 79,455,634 July 2010 1.15% Official estimate
17 Iran 75,078,000 2010 1.09% 2008 UN estimate for year 2010
18 Turkey 73,722,988 December 31, 2010 1.07% Turkish Statistical Institute
19 Dem. Rep. of Congo 67,827,000 2010 0.98% 2008 UN estimate for year 2010
20 Thailand 67,070,000 December 1, 2009 0.97% Official estimate
21 Francen3 65,821,885 January 1, 2011 0.95% Official INSEE estimate
The population figure for metropolitan France alone (without its
overseas departments and oveseas collectivities) is 63,182,000.[4]
22 United Kingdom 62,041,708 January 1, 2010 0.9% Eurostat estimate
23 Italy 60,605,053 November, 2010 0.88% Official ISTAT estimate
24 Myanmar (Burma) 50,496,000 2010 0.73% 2008 UN estimate for year 2010
25 South Africa 49,991,300 July 1, 2010 0.72% Statistics South Africa
26 South Korea 48,988,833 2011 0.71% Statistics Korea
27 Spain 46,152,925 January 1, 2011 0.67% Official INE estimate
28 Colombia 45,919,000 April 3, 2011 0.66% Official Colombian Population clock
29 Ukraine 45,778,500 January 1, 2011 0.66% Official UKRSTAT estimate
30 Sudan 43,192,000 2010 0.63% 2008 UN estimate for year 2010
31 Tanzania 43,187,823 2010 0.63% Official estimate
32 Argentina 40,091,359 October 27, 2010 0.58% Provisional census results
33 Kenya 38,610,097 August 24-25, 2009 0.56% Official census results
34 Poland 38,092,000 mid-2010 0.55% Official estimate
35 Algeria 36,300,000 January 1, 2011 0.53% Official estimate
36 Canada 34,406,000 April 3, 2011 0.5% Official Canadian Population clock
37 Morocco 32,107,000 April 3, 2011 0.46% Official Moroccan Population clock
38 Uganda 31,800,000 2010 0.46% Official estimate
39 Iraq 31,467,000 2010 0.46% 2008 UN estimate for year 2010
40 Peru 29,461,933 June 30, 2010 0.43% Official INEI estimate (in Spanish)
41 Venezuela 29,167,000 April 3, 2011 0.42% Official Venezuelan Population clock
42 Afghanistan 29,117,000 2010 0.42% 2008 UN estimate for year 2010
43 Nepal 28,584,975 2011 0.41% Official estimate
44 Uzbekistan 27,794,000 2010 0.4% 2008 UN estimate for year 2010
45 Malaysia 27,565,821 2010 0.4% The 2010 Population and Housing Census (Census 2010)
46 Saudi Arabia 27,136,977 2010 0.39% Official Saudi estimate
47 Ghana 24,233,431 September 26, 2010 0.35% Provisional 2010 census results
48 North Korea 23,991,000 2010 0.35% 2008 UN estimate for year 2010
49 Republic of China (Taiwan)n4 23,164,457 February 28, 2011 0.34% Official National Statistics Taiwan estimate
50 Australian5 22,608,000 April 3, 2011 0.32% Australian Official Population Clock
51 Yemen 22,492,035 2009 0.33% Official estimate
52 Mozambique 22,416,881 2010 0.32% Official estimate
53 Côte d’Ivoire 21,571,000 2010 0.31% 2008 UN estimate for year 2010
54 Romania 21,466,174 January 1, 2010 0.31% Eurostat estimate
55 Syria 20,995,000 April 3, 2011 0.3% Syrian Official Population Clock
56 Sri Lanka 20,410,000 2010 0.3% 2008 UN estimate for year 2010
57 Madagascar 20,146,000 2010 0.29% 2008 UN estimate for year 2010
58 Cameroon 19,406,100 January 1, 2010 0.28% Official estimate
59 Angola 18,993,000 2010 0.27% 2008 UN estimate for year 2010
60 Chile 17,211,200 April 3, 2011 0.25% Official INE projection (page 36)
61 Netherlands 16,659,100 April 3, 2011 0.241% Official Netherlands population clock
62 Kazakhstan 16,433,000 January 1, 2011 0.24% National Statistics Agency estimate
63 Burkina Faso 15,730,977 July 1, 2010 0.23% Official estimate
64 Malawi 15,692,000 2010 0.23% 2008 UN estimate for year 2010
65 Niger 15,203,822 2010 0.22% Official estimate
66 Mali 14,517,176 April 1, 2009 0.21% Preliminary 2009 census result
67 Guatemala 14,361,666 2010 0.21% Official estimate
68 Ecuador 14,306,876 November 28, 2010 0.21% Preliminary 2010 Ecuadorian census result
69 Cambodia 13,395,682 March 3, 2008 0.19% Cambodian 2008 Census
70 Zambia 13,046,508 October 16, 2010 0.19% 2010 Zambia Census result
71 Senegal 12,861,000 2010 0.19% 2008 UN estimate for year 2010
72 Zimbabwe 12,644,000 2010 0.18% 2008 UN estimate for year 2010
73 Chad 11,506,000 2010 0.17% 2008 UN estimate for year 2010
74 Greece 11,306,183 January 1, 2010 0.16% Eurostat estimate
75 Cuba 11,240,841 December 31, 2010 0.16% Official estimate
76 Belgium 10,827,519 January 1, 2010 0.16% Eurostat estimate
77 Portugal 10,636,888 January 1, 2010 0.15% Eurostat estimate
78 Tunisia 10,549,100 July 1, 2010 0.15% National Statistics Institute of Tunisia
79 Czech Republic 10,515,818 June 30, 2010 0.15% Official estimate
80 Bolivia 10,426,154 2010 0.15% Official estimate
81 Rwanda 10,412,820 2010 0.15% Official estimate
82 Guinea 10,324,000 2010 0.15% 2008 UN estimate for year 2010
83 Haiti 10,085,214 2010 0.15% Official estimate
84 Hungary 10,014,324 January 1, 2010 0.14% Official estimate
85 Belarus 9,481,100 January 1, 2011 0.14% National Statistical Committee
86 Sweden 9,418,732 January 31, 2011 0.14% Statistics Sweden
87 Dominican Republic 9,378,818 December 1, 2010 0.14% Preliminary census result
88 Somalian7 9,359,000 2010 0.14% 2008 UN estimate for year 2010
89 Azerbaijan 8,997,400 January 1, 2010 0.13% State Statistical Committee of Azerbaijan
90 Benin 8,778,646 2010 0.13% Official estimate
91 Burundi 8,519,000 2010 0.12% 2008 UN estimate for year 2010
92 Austria 8,396,760 2010 0.12% Official estimate
93 United Arab Emirates 8,264,070 2010 0.12% Official estimate
94 Honduras 8,215,313 2011 0.12% Official estimate
95 Switzerland 7,782,900 December 31, 2009 0.11% Official Switzerland Statistics estimate
96 Israeln8 7,708,400 January 31, 2011 0.11% Israeli Central Bureau of Statistics
97 Bulgaria 7,528,103 2010 0.11% Official estimate
98 Serbian6 7,306,677 January 1, 2010 0.11% Official estimate
99 Tajikistan 7,075,000 2010 0.102% 2008 UN estimate for year 2010
100 Hong Kong 7,061,200 July 31, 2010 0.102% Hong Kong Census and Statistics Department
101 Papua New Guinea 6,888,000 2010 0.1% 2008 UN estimate for year 2010
102 Togo 6,780,000 2010 0.098% 2008 UN estimate for year 2010
103 Libya 6,546,000 2010 0.095% 2008 UN estimate for year 2010
104 Jordan 6,472,000 2010 0.094% 2008 UN estimate for year 2010
105 Paraguay 6,460,000 2010 0.093% 2008 UN estimate for year 2010
106 Laos 6,230,200 2010 0.09% Official estimate
107 El Salvador 6,194,000 2010 0.09% 2008 UN estimate for year 2010
108 Sierra Leone 5,836,000 2010 0.084% 2008 UN estimate for year 2010
109 Nicaragua 5,822,000 2010 0.084% 2008 UN estimate for year 2010
110 Denmark 5,560,628 January 1, 2011 0.08% Statistics Denmark
111 Slovakia 5,435,273 December 31, 2010 0.079% Statistics Slovakia
112 Kyrgyzstan 5,418,300 2010 0.078% Official estimate
113 Finlandn9 5,379,800 April 3, 2011 0.078% Official Finnish Population clock
114 Eritrea 5,224,000 2010 0.076% 2008 UN estimate for year 2010
115 Turkmenistan 5,177,000 2010 0.075% 2008 UN estimate for year 2010
116 Singapore 5,076,700 June 30, 2010 0.073% Statistics Singapore
117 Norwayn10 4,932,700 April 3, 2011 0.007% Official Norwegian Population clock
118 Costa Rica 4,563,538 2010 0.066% Official estimate
119 Central African Republic 4,506,000 2010 0.065% 2008 UN estimate for year 2010
120 Ireland 4,470,700 April 2010 0.065% Irish Central Statistics Office estimate 2010
121 Georgian11 4,436,000 January 1, 2010 0.064% National Statistics Office of Georgia
122 Croatia 4,425,747 January 1, 2010 0.064% Eurostat estimate
123 New Zealand 4,406,000 April 3, 2011 0.064% Official New Zealand Population clock
124 Lebanon 4,255,000 2010 0.062% 2008 UN estimate for year 2010
125 Liberia 4,102,000 2010 0.059% 2008 UN estimate for year 2010
126 Palestinian territories 3,935,249 2009 0.057% Palestinian Central Bureau of Statistics
127 Bosnia and Herzegovina 3,843,126 June 30, 2010 0.056% Official estimate
128 Republic of the Congo 3,759,000 2010 0.054% 2008 UN estimate for year 2010
129 Puerto Rico 3,725,789 April 1, 2010 0.054% 2010 census
130 Moldovan12 3,563,800 January 1, 2010 0.052% National Bureau of Statistics of Moldova
131 Panama 3,405,813 May 16, 2010 0.049% Final 2010 census results
132 Mauritania 3,366,000 2010 0.049% 2008 UN estimate for year 2010
133 Uruguay 3,356,584 June 30, 2010 0.049% Official estimate
134 Armenia 3,254,300 September 2010 0.047% Monthly official estimate
135 Lithuania 3,249,400 December 2010 0.047% Monthly official estimate
136 Albania 3,195,000 January 1, 2010 0.046% Institute of Statistics INSTAT Albania
137 Kuwait 3,051,000 2010 0.044% 2008 UN estimate for year 2010
138 Mongolia 2,798,000 April 3, 2011 0.04% Official Mongolian population clock
139 Jamaica 2,730,000 2010 0.04% 2008 UN estimate for year 2010
140 Oman 2,694,094 December 12, 2010 0.039% Preliminary census results
141 Latvia 2,229,500 January 1, 2011 0.032% Official Statistics of Latvia
142 Namibia 2,212,000 2010 0.032% 2008 UN estimate for year 2010
143 Lesotho 2,084,000 2010 0.03% 2008 UN estimate for year 2010
144 Republic of Macedonia 2,052,722 January 1, 2010 0.03% Eurostat estimate
145 Slovenia 2,046,930 April 3, 2011 0.03% Official Slovenian population clock
146 Botswana 1,800,098 2010 0.026% Official estimate
147 Gambia 1,751,000 2010 0.025% 2008 UN estimate for year 2010
148 Qatar 1,696,563 April 20, 2010 0.025% Preliminary 2010 Census Results
149 Guinea-Bissau 1,647,000 2010 0.024% 2008 UN estimate for year 2010
150 Gabon 1,501,000 2010 0.022% 2008 UN estimate for year 2010
151 Estonia 1,340,122 January 1, 2011 0.019% Official estimate
152 Trinidad and Tobago 1,317,714 July 1, 2010 0.019% Official estimate
153 Mauritius 1,280,925 July 1, 2010 0.019% Official estimate
154 Swaziland 1,202,000 2010 0.017% 2008 UN estimate for year 2010
155 East Timor 1,171,000 2010 0.017% 2008 UN estimate for year 2010
156 Djibouti 879,000 2010 0.013% 2008 UN estimate for year 2010
157 Fiji 854,000 2010 0.012% 2008 UN estimate for year 2010
158 Bahrain 807,000 2010 0.012% 2008 UN estimate for year 2010
159 Cyprusn14 801,851 January 1, 2010 0.012% Eurostat estimate
160 Guyana 784,894 2010 0.011% Official estimate
161 Bhutan 695,822 2010 0.01% Official estimate
162 Equatorial Guinea [5] 693,000 2010 0.01% 2008 UN estimate for year 2010
163 Comorosn15 691,000 2010 0.01% 2008 UN estimate for year 2010
164 Montenegro 641,966 2010 0.009% Official estimate
165 Macau 542,200 December 31, 2009 0.008% Macau Statistics and Census Service
166 Solomon Islands 530,669 2010 0.008% Official estimate
167 Western Sahara 530,000 2010 0.008% 2008 UN estimate for year 2010
168 Suriname 524,000 2010 0.008% 2008 UN estimate for year 2010
169 Luxembourg 502,100 2010 0.007% Official estimate
170 Cape Verde 491,575 June 16, 2010 0.007% Official estimate
171 Malta 416,333 January 1, 2010 0.006% Eurostat estimate
172 Brunei 407,000 2010 0.006% 2008 UN estimate for year 2010
173 Bahamas 353,658 May 3, 2010 0.005% Official estimate
174 Belize 333,200 Mid-2009 0.005% Statistical Institute of Belize
175 Iceland 318,452 January 1, 2011 0.005% Statistics Iceland
176 Maldives 317,280 2010 0.005% Official estimate
177 Barbados 257,000 2010 0.004% 2008 UN estimate for year 2010
178 Vanuatu 246,000 2010 0.004% 2008 UN estimate for year 2010
179 Samoa 187,032 2010 0.003% Official estimate
180 Guam 180,000 2010 0.003% 2008 UN estimate for year 2010
181 Saint Lucia 166,526 May 10, 2010 0.002% Preliminary census result
182 São Tomé and Príncipe 165,000 2010 0.002% 2008 UN estimate for year 2010
183 Curaçao 142,180 January 1, 2010 0.002% Official estimate
184 Saint Vincent and the Grenadines 109,000 2010 0.002% 2008 UN estimate for year 2010
185 U.S. Virgin Islands 109,000 2010 0.002% 2008 UN estimate for year 2010
186 Aruba 107,000 2010 0.002% 2008 UN estimate for year 2010
187 Grenada 104,000 2010 0.002% 2008 UN estimate for year 2010
188 Tonga 104,000 2010 0.002% 2008 UN estimate for year 2010
189 Federated States of Micronesia 102,624 April 4, 2010 0.001% Preliminary census results
190 Kiribati 100,000 2010 0.001% 2008 UN estimate for year 2010
191 Jersey 92,500 December 31, 2009 0.001% Official estimate
192 Antigua and Barbuda 89,000 2010 0.001% 2008 UN estimate for year 2010
193 Northern Mariana Islands 88,000 2010 0.001% 2008 UN estimate for year 2010
194 Seychelles 86,525 July 1, 2010 0.001% Official estimate
195 Andorra 84,082 December 31, 2009 0.001% Official estimate
196 Isle of Man 80,000 2010 0.001% 2008 UN estimate for year 2010
197 American Samoa 69,000 2010 0.001% 2008 UN estimate for year 2010
198 Dominica 67,000 2010 0.001% 2008 UN estimate for year 2010
199 Bermuda 64,566 July 1, 2010 0.001% Official estimate
200 Guernsey 62,274 March 31, 2009 0.001% Official estimate
201 Greenland 56,452 2010 0.001% Official estimate
202 Cayman Islands 54,878 October 10, 2010 0.001% Preliminary census result
203 Marshall Islands 54,305 2010 0.001% Official estimate
204 Saint Kitts and Nevis 52,000 2010 0.001% 2008 UN estimate for year 2010
205 Faroe Islands 48,585 January 1, 2011 0.001% Official statistics of the Faroe Islands
206 Turks and Caicos Islands 40,357 2010 0.0006% Official estimate
207 Sint Maarten 37,429 January 1, 2010 0.0005% Official estimate
208 Liechtenstein 36,157 December 31, 2010 0.0005% Official estimate
209 Monaco 33,000 2010 0.0005% 2008 UN estimate for year 2010
210 San Marino 31,887 December 31, 2010 0.0005% Monthly official estimate
211 Gibraltar 31,000 2010 0.0004% 2008 UN estimate for year 2010
212 British Virgin Islands 28,213 2008 0.0004% Official estimate
213 Cook Islands 23,400 September 2010 0.0003% Official monthly estimate
214 Palau 21,000 0.0003% 2008 UN estimate for year 2010
215 Anguilla 15,236 2011 0.0002% Official estimate
216 Nauru 10,000 0.0001% 2008 UN estimate for year 2010
217 Tuvalu 10,000 0.0001% 2008 UN estimate for year 2010
218 Montserrat 6,000 0.0001% 2008 UN estimate for year 2010
219 Saint Helena, Ascension and Tristan da Cunha 4,000 0.0001% 2008 UN estimate for year 2010
220 Falkland Islands 3,000 0.00005% 2008 UN estimate for year 2010
221 Niue 1,500 0.00003% UN estimate
222 Tokelau 1,200 0.00003% UN estimate
223 Vatican City 800 0.00002% UN estimate
224 Pitcairn Islands 50 0.000001% UN estimate

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

List of countries by GDP (nominal)

“… This article includes a list of countries of the world sorted by their gross domestic product (GDP), the market value of all final goods and services from a nation in a given year. The GDP dollar estimates presented here are calculated at market or government official exchange rates.

Several economies which are not considered to be countries (world, the EU, Eurozone, and some dependent territories) are included in the list because they appear in the sources. These economies are not ranked in the charts here, but are listed.

The first list includes 2010 data estimates[nb 1] for members of the International Monetary Fund. …”

http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)

Rank↓ Country↓ GDP (millions of USD)↓
World 61,963,429[4]
European Union 16,106,896[4]
1 United States 14,624,184
2 People’s Republic of China 5,745,133
3 Japan 5,390,897
4 Germany 3,305,898
5 France 2,555,439
6 United Kingdom 2,258,565
7 Italy 2,036,687
8 Brazil 2,023,528
9 Canada 1,563,664
10 Russia 1,476,912
11 India 1,430,020
12 Spain 1,374,779
13 Australia 1,219,722
14 Mexico 1,004,042
15 South Korea 986,256
16 Netherlands 770,312
17 Turkey 729,051
18 Indonesia 695,059
19 Switzerland 522,435
20 Belgium 461,331
21 Sweden 444,585
22 Poland 438,884
23 Saudi Arabia 434,440
24 Republic of China (Taiwan) 426,984
25 Norway 413,511
26 Austria 366,259
27 South Africa 354,414
28 Argentina 351,015
29 Iran 337,901
30 Thailand 312,605
31 Greece 305,005
32 Denmark 304,555
33 Venezuela 285,214
34 Colombia 283,109
35 United Arab Emirates 239,650
36 Finland 231,982
Hong Kong 226,485
37 Portugal 223,700
38 Malaysia 218,950
39 Singapore 217,377
40 Egypt 216,830
41 Nigeria 206,664
42 Ireland 204,144
43 Israel 201,254
44 Chile 199,183
45 Czech Republic 195,232
46 Philippines 189,061
47 Pakistan 164,792
48 Algeria 158,969
49 Romania 158,393
50 Peru 153,549
51 New Zealand 138,003
52 Ukraine 136,561
53 Hungary 132,276
54 Kazakhstan 129,757
55 Qatar 126,518
56 Kuwait 117,316
57 Bangladesh 105,402
58 Vietnam 101,987
59 Morocco 91,702
60 Slovakia 86,262
61 Angola 85,808
62 Iraq 84,136
63 Libya 77,912
64 Sudan 65,930
65 Ecuador 61,489
66 Croatia 59,917
67 Syria 59,633
68 Oman 53,782
69 Belarus 52,887
70 Luxembourg 52,433
71 Azerbaijan 52,166
72 Dominican Republic 50,874
73 Sri Lanka 48,241
74 Slovenia 46,442
75 Bulgaria 44,843
76 Tunisia 43,863
77 Guatemala 40,773
78 Uruguay 40,714
79 Lebanon 39,149
80 Serbia 38,921
81 Uzbekistan 37,724
82 Lithuania 35,734
83 Burma 35,646
84 Costa Rica 35,019
85 Kenya 32,417
86 Ethiopia 30,941
87 Yemen 30,023
88 Panama 27,199
89 Jordan 27,129
90 Latvia 23,385
91 Cyprus 22,752
92 Tanzania 22,434
93 Côte d’Ivoire 22,384
94 Cameroon 21,882
95 El Salvador 21,796
96 Bahrain 21,733
97 Trinidad and Tobago 21,195
98 Estonia 19,220
99 Bolivia 19,182
100 Ghana 18,058
101 Paraguay 17,168
102 Uganda 17,121
103 Afghanistan 16,631
104 Bosnia and Herzegovina 16,202
105 Zambia 15,691
106 Honduras 15,340
107 Nepal 15,108
108 Equatorial Guinea 14,547
109 Jamaica 13,737
110 Iceland 12,767
111 Senegal 12,657
112 Democratic Republic of the Congo 12,600
113 Gabon 12,563
114 Botswana 12,501
115 Brunei 11,963
116 Republic of the Congo 11,884
117 Albania 11,578
118 Namibia 11,451
119 Cambodia 11,360
120 Georgia 11,234
121 Mozambique 10,212
122 Macedonia 9,580
123 Mauritius 9,427
124 Mali 9,077
125 Armenia 8,830
126 Papua New Guinea 8,809
127 Burkina Faso 8,672
128 Madagascar 8,330
129 Malta 7,801
130 Chad 7,592
131 The Bahamas 7,538
132 Haiti 6,495
133 Benin 6,494
134 Nicaragua 6,375
135 Laos 6,341
136 Mongolia 5,807
137 Kosovo 5,728
138 Rwanda 5,693
139 Niger 5,603
140 Tajikistan 5,578
141 Zimbabwe 5,574
142 Moldova 5,357
143 Malawi 5,035
144 Kyrgyzstan 4,444
145 Guinea 4,344
146 Barbados 3,963
147 Montenegro 3,884
148 Mauritania 3,486
149 Suriname 3,297
150 Swaziland 3,165
151 Fiji 3,154
152 Togo 3,074
153 Eritrea 2,254
154 Guyana 2,197
155 Central African Republic 2,113
156 Sierra Leone 1,901
157 Lesotho 1,799
158 Cape Verde 1,573
159 Burundi 1,469
160 Maldives 1,433
161 Belize 1,431
162 Bhutan 1,397
163 Djibouti 1,139
164 Antigua and Barbuda 1,099
165 The Gambia 1,040
166 Saint Lucia 1,000
167 Liberia 977
168 Seychelles 919
169 Guinea-Bissau 825
170 Vanuatu 721
171 Solomon Islands 674
172 Grenada 645
173 East Timor 616
174 Saint Vincent and the Grenadines 583
175 Saint Kitts and Nevis 562
176 Comoros 557
177 Samoa 550
178 Dominica 375
179 Tonga 301
180 São Tomé and Príncipe 187
181 Kiribati 152

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Time To End The Federal Reserve System For Failing To Maintain Price Stability or The Purchasing Power of The U.S. Dollar–End The Federal Reserve Banking Cartel For Currency Debasement!–Videos

Posted on February 13, 2011. Filed under: Banking, Blogroll, College, Communications, Computers, Demographics, Economics, Education, Employment, Federal Government, Fiscal Policy, government, government spending, Investments, Language, Law, liberty, Life, Links, media, Monetary Policy, Money, People, Philosophy, Politics, Quotations, Rants, Raves, Regulations, Resources, Taxes, Technology, Transportation, Video, War, Wealth, Wisdom | Tags: , , , , , , , , , , , , |

http://www.aier.org/research/briefs/1826-the-long-goodbye-the-declining-purchasing-power-of-the-dollar

Behold What The Fed Hath Wrought!

“…The chart pretty much says it all. The incessant, relentless increase in the money supply by the central bank has paralleled the rise in the CPI. With very few exceptions, notably the years 1982-1985 under the Reagan administration when the U. S. economy was coming out of the stagflation brought on by the Carter administration’s dubious policies and the attempt to bring inflation under some sort of control, and then the bursting of the stock bubble in 2000, the central bank has embarked on a systematic expansion of the money supply that has decimated the value of the U. S. Dollar.

For the benefit of those who might be a bit uncertain as to the cause/effect relationship between the money supply and prices think of it this way. The more dollars that the Fed creates, the more dollars there are chasing the same amount of goods. For example – if there are 5000 dollars in circulation chasing a basket of goods and the Fed increases the money supply resulting in another 5000 dollars being created, there are now 10,000 dollars chasing the same amount of goods. The result is that we now have twice the number of dollars competing for the same amount of goods. The effective result is that it now takes 2 dollars to buy the same number of goods that 1 dollar previously was able to purchase prior to the money supply being increased. This is properly termed “inflation.’ It is not so much that prices are going up as it is that the value of the dollar is going down because there are more of them competing for the same number of goods. In real life of course, the number of items in the basket of goods would be increasing as the economy grows. The problem is no economy in the world can increase the production of goods anywhere near the rate at which the central bank can expand the money supply. The result should now be evident – the increase in the money supply at the near parabolic rate as evidenced on the graph MUST of necessity erode the value of the dollar and usher in further inflationary pressures. More dollars = higher prices.

In other words, the expression used by Alan Greenspan in his speech quoted at the beginning of this article:

As recently as a decade ago, central bankers, having witnessed more than a half-century of chronic inflation, appeared to confirm that a fiat currency was inherently subject to excess.”

That is an understatement of cosmic proportions. If we are to believe the change in tone coming from the Fed these last few weeks as signaled by both Alan Greenspan and Fed Governor Bernanke, the incessant flood of dollars rolling off of government printing presses has only just begun. …”

http://www.gold-eagle.com/editorials_04/norcini080604.html

 http://www.mebanefaber.com/2010/11/17/the-dollar-and-purchasing-power/ 

END THE FED!

 

End The Fed!

 

Ben Bernanke was Wrong

 

Bernanke was wrong while Peter Schiff was right

 

End The Fed! – Why the Federal Reserve Must Be Abolished! Share with your friends

 

Paul Ryan: No sugar high economics; need to restore foundations for growth

 

Paul Ryan on the need to focus on price stability

 

Charlie Rose – Rep. Paul Ryan, Wisconsin (R)

 

Bernanke’s Opening Remarks to Paul Ryan

 

FED rates manipulation – Paul Ryan Questions Bernanke

 

Rep. Campbell Questions Chairman Bernanke On QE2

 

House Budget Committee Hearing

 

Congressman Woodall questions Federal Reserve Chairman Bernanke

 

Bernanke: Broader base, lower rates are key to pro-growth tax reform

 

Peter Schiff comments on Ben Bernanke Testimony [onlyhedge.com].mp4

 

Bernanke Threatens Congress

 

Bernanke Speaks on Economy (Part 1) – Bloomberg

 

Bernanke Speaks on Economy (Part 2) – Bloomberg

 

Quantitative Easing Explained

 

Ron Paul: Bernanke Deliberately Destroying Dollar

 

End the Fed | Ron Paul 

 

Background Articles and Videos

 

Tracing the Fed’s Vital Role in the Decline of the US Dollar

“…The purchasing power of a one dollar bill has plummeted more than 95% since the Federal Reserve first began printing its legal tender in 1914. Although the dollar’s epic decline began glacially, it has gathered luge-like momentum.

The greenback’s value dropped only 50% during the first 33 years of the Fed’s stewardship – i.e. between 1913 and 1946. But the 1946 dollar would lose half its value in just 24 years, while the 1970 dollar would lose half its value in just nine years. The rate of decay slowed somewhat during the Volcker years, as the 1979 dollar did not lose half its value until 14 years later.

Nevertheless, the dollar’s progression toward zero since 1913 feels more geometric than arithmetic.

In 1914, the year the Federal Reserve began conjuring dollar bills into existence, 700,000 shimmering new $10 Indian Head Gold Eagles rolled out of the Philadelphia, San Francisco and Denver Mints. Once in the hands of a working stiff, each $10 coin would buy $10 worth of goods and services. Likewise, the Fed’s crisp, new McKinley $10 bill would also buy $10 worth of goods and services.

Over the ensuing 98 years, a succession of Federal Reserve Chairmen labored to “preserve” the purchasing power of their McKinleys, Washingtons and Lincolns. The Gold Eagles had to take care of themselves. The results are in; the unprotected Gold Eagles flourished, while the “protected” Mckinleys withered. Based on its metal content, a 1914 $10 Indian Head Gold Eagle is worth $643.45. A 1914 $10 bill is still worth ten dollars. …”

http://vinceseconomicblog.wordpress.com/2011/02/04/tracing-the-feds-vital-role-in-the-decline-of-the-us-dollar/

Edwin Vieira, Jr. on the Fed’s Transfer of Wealth

 

Zeitgeist Addendum

 

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Posted on December 18, 2010. Filed under: Banking, Blogroll, Communications, Demographics, Economics, government, history, Investments, Language, Law, liberty, Links, Monetary Policy, Money, People, Philosophy, Politics, Raves, Religion, Resources, Taxes, Video | Tags: , , , , , , , , |

The History of Money – Part 1

 

The History of Money – Part 2

The History of Money – Part 3

 

The History of Money – Part 4

 

The History of Money – Part 5

 

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Deflation, Inflation and Uncertainty–Videos

Posted on October 22, 2010. Filed under: Blogroll, Business, College, Demographics, Economics, Education, Employment, Federal Government, Fiscal Policy, government, government spending, history, Investments, Language, Law, liberty, Life, Links, media, Monetary Policy, People, Philosophy, Politics, Rants, Raves, Taxes, Video, Wisdom | Tags: , , , , , , , , , , , |

Ron Paul 2012

Ron Paul: If Obama wants us to be “grateful” he should just leave us alone

 

Peter Schiff on FOX News 10/22/10

 

Nassim Nicholas Taleb – ‘Things are getting worst’ (12-May-10)(NWO ECONOMICS series)

 

Should We Be Concerned About Deflation?

 

Peter Schiff says DEFLATION will be BIG . . . . . . . . . . . . . . . . when you mesure it in gold !

 

Inflation, Deflation Debates

 

Default Vs. Inflation

 

What is Inflation or Deflation?

 

David Morgan Talks Dollar Default Risk, Deflation, Hyperinflation, & More, Pt. 1

 

David Morgan Talks Dollar Default Risk, Deflation, Hyperinflation, & More, Pt. 2

David Morgan Talks Dollar Default Risk, Deflation, Hyperinflation, & More, Pt. 3

 

Background Articles and Videos

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Hedge Funds – Paul Solman

 

The Trillion Dollar Bet 1

The Trillion Dollar Bet 2

The Trillion Dollar Bet 3

The Trillion Dollar Bet 4

The Trillion Dollar Bet 5

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Posted on October 13, 2010. Filed under: Blogroll, Communications, Demographics, Economics, Employment, Energy, Federal Government, Fiscal Policy, Foreign Policy, government spending, history, Investments, Language, Law, liberty, Life, Links, media, Monetary Policy, People, Philosophy, Politics, Quotations, Raves, Resources, Security, Strategy, Taxes, Technology, Video | Tags: , , , , , , |

“True, governments can reduce the rate of interest in the short run. They can issue additional paper money. They can open the way to credit expansion by the banks. They can thus create an artificial boom and the appearance of prosperity. But such a boom is bound to collapse soon or late and to bring about a depression.”

“The gold standard alone makes the determination of moneys purchasing power independent of the ambitions and machinations of governments, of dictators, of political parties, and of pressure groups.”

~Ludwig von Mises

Jim Rogers Currency Wars

“IMF Meeting Stokes Fear of Currency War”

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Global Currency War Brewing

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IMF Meeting Stokes Fear of Currency War

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Heller Says `Very Difficult’ for Fed to Boost Growth: Video

Feldstein Predicts Dollar to Weaken, Boosting Exports: Video

Japan cooperates with US on international currency issues – NHK 101010

US House committee approves China currency bill – NHK 100925

US criticizes China, Japan over currency interventions – NHK 100917

 

Clyde Prestowitz discusses valuation of Chinese currency

Mar 24 10 Hearing on China’s Exchange Rate Policy, C. Fred Bergsten Opening Statement

Mar 24 10 Hearing on China’s Exchange Rate Policy, Clyde Prestowitz Opening Statement

The Truth About The Economy: Total Collapse

Ron Paul in September 14, 2007

The Federal Reserve System is a banking cartel that benefits the large banks at the expense of the American people.

Cartel economists and so-called experts  cannot replace the market by attempting to fix the price of money or the dollar.

Abolish the Federal Reserve System.

Abolish fiat paper currency.

Establish a new United States currency backed by gold.

Milton Friedman on Monetary Policy – 1/3

Milton Friedman on Monetary Policy – 2/3

Milton Friedman on Monetary Policy – 3/3

This is necessary to stop the financing of massive Federal Government deficits by the Federal Reserve that is purchasing U. S. Treasury bills and notes with Federal Reserve Notes by printing money or  the monetarization of government debt.

Money printing or quantitative easing decreases the purchasing power of the money supply–debasing of the currency– robbing the American people.

Will the Federal Reserve System and fiat paper money be abolished?

Not any time soon.

The result will first be a longer and deeper recession lasting well into 2013.

In 2013 the Federal Reserve System will be 100 years old.

The Federal Reserves System will celebrate by achieving by then the devaluation of the dollar by 99%.

In other words one dollar in 1913 will be worth 1 cent.

If this is monetary stability, one wonders what inflation really is.

Time to do away the Federal Reserve System for incompetence.

I do not expect unemployment rate to fall below 8%  for U-3 until 2013 at the earliest.

As the unemployment slowly declines in 2011 and 2012, there will be at first a gradual increase in the general price level that will accelerate in 2013.

This will be due the inability of the Federal Reserve to reverse quickly enough its very aggressive expansive  monetary policy.

In 2011 and 2012 import prices will rise as the Federal Reserve attempts to devalue the dollar compared with other national currencies in an attempt to expand exports by making them cheaper.

The price of a gallon gasoline in the United States  will first rise above $3 in 2011 and $4 in 2012 mainly due to the devaluation of the U.S. dollar.

As Communist China gradually lets the value of its currency rise in value relative to the U.S. dollar, exports from China will rise in price. This means higher prices for goods imported into the U.S. from China.

The decline in the value or purchasing power of the dollar in 2011 and 2012 combined with unemployment rates exceeding 8% will mean further losses for the Democratic Party in 2012 including the Presidency.

The American people are rightfully mad as hell at the ruling class and political elites in Washington D.C.

 

 

 

Ron Paul on the Federal Reserve and Government Deficit Spending

 

The Gold Standard in Theory and Myth by Joseph Salerno

 

“The gold standard has one tremendous virtue: the quantity of the money supply, under the gold standard, is independent of the policies of governments and political parties. This is its advantage. It is a form of protection against spendthrift governments.”

“Inflationism, however, is not an isolated phenomenon. It is only one piece in the total framework of politico-economic and socio-philosophical ideas of our time. Just as the sound money policy of gold standard advocates went hand in hand with liberalism, free trade, capitalism and peace, so is inflationism part and parcel of imperialism, militarism, protectionism, statism and socialism.”

~Ludwig von Mises

9. Consolidated Statement of Condition of All Federal Reserve Banks

Millions of dollars
Assets, liabilities, and capital Eliminations from
consolidation
Wednesday
Oct 6, 2010
Change since
Wednesday
Sep 29, 2010
Wednesday
Oct 7, 2009
Assets  
Gold certificate account   11,037 0 0
Special drawing rights certificate account   5,200 0 0
Coin   2,114 + 3 + 124
Securities, repurchase agreements, term auction
credit, and other loans
  2,101,199 + 7,113 + 216,329
Securities held outright 1   2,051,716 + 7,403 + 456,429
U.S. Treasury securities   819,072 + 7,403 + 49,887
Bills 2   18,423 0 0
Notes and bonds, nominal 2   752,832 + 7,390 + 52,364
Notes and bonds, inflation-indexed 2   42,318 0 – 2,270
Inflation compensation 3   5,499 + 13 – 207
Federal agency debt securities 2   154,105 0 + 20,294
Mortgage-backed securities 4   1,078,539 0 + 386,248
Repurchase agreements 5   0 0 0
Term auction credit   0 0 – 178,379
Other loans   49,483 – 290 – 61,721
Net portfolio holdings of Commercial Paper
Funding Facility LLC 6
  0 0 – 41,059
Net portfolio holdings of Maiden Lane LLC 7   28,510 + 40 + 2,206
Net portfolio holdings of Maiden Lane II LLC 8   15,674 – 201 + 1,213
Net portfolio holdings of Maiden Lane III LLC 9   22,782 – 258 + 2,616
Net portfolio holdings of TALF LLC 10   601 0 + 601
Preferred interests in AIA Aurora LLC and ALICO
Holdings LLC 11
  26,057 + 324 + 26,057
Items in process of collection (84) 463 + 98 + 310
Bank premises   2,222 – 7 + 1
Central bank liquidity swaps 12   61 0 – 49,770
Other assets 13   95,313 + 2,248 + 11,389
 
Total assets (84) 2,311,231 + 9,358 + 170,016

 

 

 

 

 

 

Note: Components may not sum to totals because of rounding. Footnotes appear at the end of the table. 9. Consolidated Statement of Condition of All Federal Reserve Banks (continued)

Millions of dollars
Assets, liabilities, and capital Eliminations from
consolidation
Wednesday
Oct 6, 2010
Change since
Wednesday
Sep 29, 2010
Wednesday
Oct 7, 2009
Liabilities  
Federal Reserve notes, net of F.R. Bank holdings   918,609 + 4,849 + 42,489
Reverse repurchase agreements 14   64,440 – 2,930 + 1,540
Deposits (0) 1,253,413 + 6,593 + 113,645
Term deposits held by depository institutions   2,119 0 + 2,119
Other deposits held by depository institutions   1,000,014 + 15,875 + 33,477
U.S. Treasury, general account   49,530 – 8,299 + 18,525
U.S. Treasury, supplementary financing account   199,962 + 1 + 70,006
Foreign official   1,345 – 1,066 – 540
Other (0) 444 + 84 – 9,940
Deferred availability cash items (84) 2,598 + 410 – 182
Other liabilities and accrued dividends 15   15,029 + 91 + 6,468
 
Total liabilities (84) 2,254,089 + 9,014 + 163,961
 
Capital accounts  
Capital paid in   26,687 + 1 + 1,798
Surplus   25,881 + 6 + 4,500
Other capital accounts   4,575 + 338 – 242
 
Total capital   57,142 + 344 + 6,055

 

 

 

 

 

 

 

Note: Components may not sum to totals because of rounding.

1. Includes securities lent to dealers under the overnight and term securities lending facilities; refer to table 1A.

2.Face value of the securities.

3. Compensation that adjusts for the effect of inflation on the original face value of inflation-indexed securities.

 

4. Guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. Current face value of the securities, which is the remaining principal balance of the underlying mortgages.

 

5.Cash value of agreements, which are collateralized by U.S. Treasury and federal agency securities.

 

6. Includes the book value of the commercial paper, net of amortized costs and related fees, and other investments held by the Commercial Paper Funding Facility LLC.

 

7. Refer to table 4 and the note on consolidation accompanying table 10.

 

8. Refer to table 5 and the note on consolidation accompanying table 10.

 

9. Refer to table 6 and the note on consolidation accompanying table 10.

 

10. Refer to table 7 and the note on consolidation accompanying table 10.

11. Refer to table 8.

 

12. Dollar value of foreign currency held under these agreements valued at the exchange rate to be used when the foreign currency is returned to the foreign central bank. This exchange rate equals the market exchange rate used when the foreign currency was acquired from the foreign central bank.

 

13. Includes other assets denominated in foreign currencies, which are revalued daily at market exchange rates, accrued dividends on the Federal Reserve Bank of New York’s (FRBNY) preferred interests in AIA Aurora LLC and ALICO Holdings LLC, and the fair value adjustment to credit extended by the FRBNY to eligible borrowers through the Term Asset-Backed Securities Loan Facility.

14. Cash value of agreements, which are collateralized by U.S. Treasury securities, federal agency debt securities, and mortgage-backed securities.

15. Includes the liabilities of Maiden Lane LLC, Maiden Lane II LLC, Maiden Lane III LLC, and TALF LLC to entities other than the Federal Reserve Bank of New York, including liabilities that have recourse only to the portfolio holdings of these LLCs. Refer to table 4 through table 7 and the note on consolidation accompanying table 10.

 

 

Minutes of the Federal Open Market Committee September 21, 2010″…At the conclusion of the discussion, the Committee voted to authorize and direct the Federal Reserve Bank of New York, until it was instructed otherwise, to execute transactions in the System Account in accordance with the following domestic policy directive:

“The Federal Open Market Committee seeks monetary and financial conditions that will foster price stability and promote sustainable growth in output. To further its long-run objectives, the Committee seeks conditions in reserve markets consistent with federal funds trading in a range from 0 to 1/4 percent. The Committee directs the Desk to maintain the total face value of domestic securities held in the System Open Market Account at approximately $2 trillion by reinvesting principal payments from agency debt and agency mortgage-backed securities in longer-term Treasury securities. The System Open Market Account Manager and the Secretary will keep the Committee informed of ongoing developments regarding the System’s balance sheet that could affect the attainment over time of the Committee’s objectives of maximum employment and price stability.”

The vote encompassed approval of the statement below to be released at 2:15 p.m.:

“Information received since the Federal Open Market Committee met in August indicates that the pace of recovery in output and employment has slowed in recent months. Household spending is increasing gradually, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit. Business spending on equipment and software is rising, though less rapidly than earlier in the year, while investment in nonresidential structures continues to be weak. Employers remain reluctant to add to payrolls. Housing starts are at a depressed level. Bank lending has continued to contract, but at a reduced rate in recent months. The Committee anticipates a gradual return to higher levels of resource utilization in a context of price stability, although the pace of economic recovery is likely to be modest in the near term.Measures of underlying inflation are currently at levels somewhat below those the Committee judges most consistent, over the longer run, with its mandate to promote maximum employment and price stability. With substantial resource slack continuing to restrain cost pressures and longer-term inflation expectations stable, inflation is likely to remain subdued for some time before rising to levels the Committee considers consistent with its mandate.The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels for the federal funds rate for an extended period. The Committee also will maintain its existing policy of reinvesting principal payments from its securities holdings.The Committee will continue to monitor the economic outlook and financial developments and is prepared to provide additional accommodation if needed to support the economic recovery and to return inflation, over time, to levels consistent with its mandate.”

Voting for this action: Ben Bernanke, William C. Dudley, James Bullard, Elizabeth Duke, Sandra Pianalto, Eric Rosengren, Daniel K. Tarullo, and Kevin Warsh.Voting against this action: Thomas M. Hoenig.Mr. Hoenig dissented, emphasizing that the economy was entering the second year of moderate recovery and that, while the zero interest rate policy and “extended period” language were appropriate during the crisis and its immediate aftermath, they were no longer appropriate with the recovery under way. Mr. Hoenig also emphasized that, in his view, the current high levels of unemployment were not caused by high interest rates but by an extended period of exceptionally low rates earlier in the decade that contributed to the housing bubble and subsequent collapse and recession. He believed that holding rates artificially low would invite the development of new imbalances and undermine long-run growth. He would prefer removing the “extended period” language and thereafter moving the federal funds rate upward, consistent with his views at past meetings that it approach 1 percent, before pausing to determine what further policy actions were needed. Also, given current economic and financial conditions, Mr. Hoenig did not believe that continuing to reinvest principal payments from SOMA securities holdings was required to support the Committee’s policy objectives.It was agreed that the next meeting of the Committee would be held on Tuesday-Wednesday, November 2-3, 2010. The meeting adjourned at 1:10 p.m. on September 21, 2010. …”

http://www.federalreserve.gov/monetarypolicy/fomcminutes20100921.htm

Background Articles and Videos

 

 

  

 

 

    

 

 Marc-Faber– FedsPrinting to Create Final Crisis 8-3-2010

  

Quantitative easing

 

 

Marc Faber Sees Fed Introducing `Massive’ Quantitative Easing

 

 

Ron Paul: If You Care About The Poor You Have To Look At Monetary Policy

The Gold Standard Before the Civil War | Murray N. Rothbard

Monetary Policy, Deflation, And Quantitative Easing

“…Aren’t the excess bank reserves inflationary?

Potentially yes, but currently no. Even though banks are earning a meager 25 basis points on their reserves, that is not sufficient incentive to keep large quantities of excess reserves uninvested or unloaned. As they were in the mid-1930s, massive excess reserves are the result of banker fear and uncertainty. The banking system has been saved, but it hasn’t been made whole yet. Bankers continue to worry about reserve levels and liquidity levels and capital levels. They are willing to lend, but only very conservatively to credit-worthy borrowers. Also, much of the slowdown in bank lending comes from low demand for loans by highly qualified borrowers.

The idea that the excess reserves held on banks’ balance sheets should be “mopped up” to prevent them being used in inflationary ways later is a very dangerous idea. They are there voluntarily because bankers feel they are needed. To remove them would cause further bank retrenchment, as it did in the 1930s when the Fed decided to “mop up” the excess reserves of that time.

As the economy and confidence improves, banks will begin using their excess reserves more aggressively. At that point, the Fed will have to be very careful not to stifle that desirable activity on the one hand or let it get out of hand and become inflationary on the other hand. Since they have lots of good, two-handed economists, I think they can pull it off. ..”

http://www.dailymarkets.com/economy/2010/07/30/monetary-policy-deflation-and-quantitative-easing/

The Founding of the Federal Reserve | Murray N. Rothbard

If you work to earn money you need to watch this

Quantitative Easing

“…The term quantitative easing (QE) describes a monetary policy used by central banks to increase the supply of money by increasing the excess reserves of the banking system. This policy is usually invoked when the normal methods to control the money supply have failed, i.e the bank interest rate, discount rate and/or interbank interest rate are either at, or close to, zero.

A central bank implements QE by first crediting its own account with money it creates ex nihilo (“out of nothing”).[1] It then purchases financial assets, including government bonds, agency debt, mortgage-backed securities and corporate bonds, from banks and other financial institutions in a process referred to as open market operations. The purchases, by way of account deposits, give banks the excess reserves required for them to create new money, and thus hopefully induce a stimulation of the economy, by the process of deposit multiplication from increased lending in the fractional reserve banking system.

Risks include the policy being more effective than intended, spurring hyperinflation, or the risk of not being effective enough, if banks opt simply to sit on the additional cash in order to increase their capital reserves in a climate of increasing defaults in their present loan portfolio.[1]

“Quantitative” refers to the fact that a specific quantity of money is being created; “easing” refers to reducing the pressure on banks.[2] However, another explanation is that the name comes from the Japanese-language expression for “stimulatory monetary policy”, which uses the term “easing”.[3] Quantitative easing is sometimes colloquially described as “printing money” although in reality the money is simply created by electronically adding a number to an account. Examples of economies where this policy has been used include Japan during the early 2000s, and the United States, the United Kingdom and the Eurozone during the global financial crisis of 2008–the present, since the programme is suitable for economies where the bank interest rate, discount rate and/or interbank interest rate are either at, or close to, zero.

Concept

Ordinarily, the central bank uses its control of interest rates, or sometimes reserve requirements, to indirectly influence the supply of money.[1] In some situations, such as very low inflation or deflation, setting a low interest rate is not enough to maintain the level of money supply desired by the central bank, and so quantitative easing is employed to further boost the amount of money in the financial system.[1] This is often considered a “last resort” to increase the money supply.[4][5] The first step is for the bank to create more money ex nihilo (“out of nothing”) by crediting its own account. It can then use these funds to buy investments like government bonds from financial firms such as banks, insurance companies and pension funds,[1] in a process known as “monetising the debt“.

For example, in introducing its QE programme, the Bank of England bought gilts from financial institutions, along with a smaller amount of relatively high-quality debt issued by private companies.[6] The banks, insurance companies and pension funds can then use the money they have received for lending or even to buy back more bonds from the bank. The central bank can also lend the new money to private banks or buy assets from banks in exchange for currency.[citation needed] These have the effect of depressing interest yields on government bonds and similar investments, making it cheaper for business to raise capital.[7] Another side effect is that investors will switch to other investments, such as shares, boosting their price and thus creating the illusion of increasing wealth in the economy.[6] QE can reduce interbank overnight interest rates, and thereby encourage banks to loan money to higher interest-paying and financially weaker bodies.

More specifically, the lending undertaken by commercial banks is subject to fractional-reserve banking: they are subject to a regulatory reserve requirement, which requires them to keep a percentage of deposits in “reserve”,[citation needed]: these can only be used to settle transactions between them and the central bank.[7] The remainder, called “excess reserves”, can (but does not have to be) be used as a basis for lending. When, under QE, a central bank buys from an institution, the institution’s bank account is credited directly and their bank gains reserves.[6] The increase in deposits from the quantitative easing process causes an excess in reserves and private banks can then, if they wish, create even more new money out of “thin air” by increasing debt (lending) through a process known as deposit multiplication and thus increase the country’s money supply. The reserve requirement limits the amount of new money. For example a 10% reserve requirement means that for every $10,000 created by quantitative easing the total new money created is potentially $100,000. The US Federal Reserve‘s now out-of-print booklet Modern Money Mechanics explains the process.

A state must be in control of its own currency and monetary policy if it is to unilaterally employ quantitative easing. Countries in the eurozone (for example) cannot unilaterally use this policy tool, but must rely on the European Central Bank to implement it.[citation needed] There may also be other policy considerations. For example, under Article 123 of the Treaty on the Functioning of the European Union[7] and later the Maastricht Treaty, EU member states are not allowed to finance their public deficits (debts) by simply printing the money required to fill the hole, as happened, for example, in Weimar Germany and more recently in Zimbabwe.[1] Banks using QE, such as the Bank of England, have argued that they are increasing the supply of money not to fund government debt but to prevent deflation, and will choose the financial products they buy accordingly, for example, by buying government bonds not straight from the government, but in secondary markets.[1][7]

HistoryQuantitative easing was used unsuccessfully[8] by the Bank of Japan (BOJ) to fight domestic deflation in the early 2000s.[9] During the global financial crisis of 2008–the present, policies announced by the US Federal Reserve under Ben Bernanke to counter the effects of the crisis are a form of quantitative easing. Its balance sheet expanded dramatically by adding new assets and new liabilities without “sterilizing” these by corresponding subtractions. In the same period the United Kingdom used quantitative easing as an additional arm of its monetary policy in order to alleviate its financial crisis.[10][11][12]

The European Central Bank (ECB) has used 12-month long-term refinancing operations (a form of quantitative easing without referring to it as such) through a process of expanding the assets that banks can use as collateral that can be posted to the ECB in return for Euros. This process has led to bonds being “structured for the ECB”[13]. By comparison the other central banks were very restrictive in terms of the collateral they accept: the US Federal Reserve used to accept primarily treasuries (in the first half of 2009 it bought almost any relatively safe dollar-denominated securities); the Bank of England applied a large haircut.

In Japan’s case, the BOJ had been maintaining short-term interest rates at close to their minimum attainable zero values since 1999. With quantitative easing, it flooded commercial banks with excess liquidity to promote private lending, leaving them with large stocks of excess reserves, and therefore little risk of a liquidity shortage.[14] The BOJ accomplished this by buying more government bonds than would be required to set the interest rate to zero. It also bought asset-backed securities and equities, and extended the terms of its commercial paper purchasing operation.[15]

RisksQuantitative easing is seen as a risky strategy that could trigger higher inflation than desired or even hyperinflation if it is improperly used and too much money is created.

Quantitative easing runs the risk of going too far. An increase in money supply to a system has an inflationary effect by diluting the value of a unit of currency. People who have saved money will find it is devalued by inflation; this combined with the associated low interest rates will put people who rely on their savings in difficulty. If devaluation of a currency is seen externally to the country it can affect the international credit rating of the country which in turn can lower the likelihood of foreign investment. Like old-fashioned money printing, Zimbabwe suffered an extreme case of a process that has the same risks as quantitative easing, printing money, making its currency virtually worthless.[1]

…”

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

Federal Open Market Committee

“…About the FOMCThe term “monetary policy” refers to the actions undertaken by a central bank, such as the Federal Reserve, to influence the availability and cost of money and credit to help promote national economic goals. The Federal Reserve Act of 1913 gave the Federal Reserve responsibility for setting monetary policy.The Federal Reserve controls the three tools of monetary policy–open market operations, the discount rate, and reserve requirements. The Board of Governors of the Federal Reserve System is responsible for the discount rate and reserve requirements, and the Federal Open Market Committee is responsible for open market operations. Using the three tools, the Federal Reserve influences the demand for, and supply of, balances that depository institutions hold at Federal Reserve Banks and in this way alters the federal funds rate. The federal funds rate is the interest rate at which depository institutions lend balances at the Federal Reserve to other depository institutions overnight.Changes in the federal funds rate trigger a chain of events that affect other short-term interest rates, foreign exchange rates, long-term interest rates, the amount of money and credit, and, ultimately, a range of economic variables, including employment, output, and prices of goods and services.

Structure of the FOMC

The Federal Open Market Committee (FOMC) consists of twelve members–the seven members of the Board of Governors of the Federal Reserve System; the president of the Federal Reserve Bank of New York; and four of the remaining eleven Reserve Bank presidents, who serve one-year terms on a rotating basis. The rotating seats are filled from the following four groups of Banks, one Bank president from each group: Boston, Philadelphia, and Richmond; Cleveland and Chicago; Atlanta, St. Louis, and Dallas; and Minneapolis, Kansas City, and San Francisco. Nonvoting Reserve Bank presidents attend the meetings of the Committee, participate in the discussions, and contribute to the Committee’s assessment of the economy and policy options.The FOMC holds eight regularly scheduled meetings per year. At these meetings, the Committee reviews economic and financial conditions, determines the appropriate stance of monetary policy, and assesses the risks to its long-run goals of price stability and sustainable economic growth.For more detail on the FOMC and monetary policy, see section 2 of the brochure on the structure of the Federal Reserve System and chapter 2 of Purposes & Functions of the Federal Reserve System.

2010 Members of the FOMC

  • Members
    • Ben S. Bernanke, Board of Governors, Chairman
    • William C. Dudley, New York, Vice Chairman
    • James Bullard, St. Louis
    • Elizabeth A. Duke, Board of Governors
    • Thomas M. Hoenig, Kansas City
    • Sandra Pianalto, Cleveland
    • Sarah Bloom Raskin, Board of Governors
    • Eric S. Rosengren, Boston
    • Daniel K. Tarullo, Board of Governors
    • Kevin M. Warsh, Board of Governors
    • Janet L. Yellen, Board of Governors …”

http://www.federalreserve.gov/monetarypolicy/fomc.htm

FEDERAL RESERVE statistical release
H.4.1
Factors Affecting Reserve Balances of Depository Institutions and
Condition Statement of Federal Reserve Banks

 

Why Chinese Currency Manipulation Is America’s Fault by: Ian Fletcher April 15, 2010

“…Unfortunately, the token appreciation that is probably now in store won’t help very much. For one thing, Beijing has played this game before. China first started diversifying its currency reserves away from the dollar (which weakens currency manipulation) in July 2005, and from then until July 2008 allowed the yuan to rise from 8.28 to the dollar to 6.83, where it has since been held nearly steady. But this appreciation, while showcased by China, was purely nominal; after adjusting for inflation, the change was far smaller: about two percent.

How does China manipulate its currency? Mainly by preventing its exporters from using the dollars they earn as they wish. Instead, they are required to swap them for domestic currency at China’s central bank, which then “sterilizes” them by spending them on U.S. Treasury securities (and increasingly other, higher-yielding, investments) rather than U.S. goods. As a result, the price of dollars is propped up — which means the price of yuan is pushed down — by a demand for dollars which doesn’t involve buying American exports.

The amounts involved are astronomical: as of 2008, China’s accumulated dollar-denominated holdings amounted to $1.7 trillion, an astonishing 40 percent of China’s GDP. The China Currency Coalition estimated in 2005 that the yuan was undervalued by 40 percent; past scholarly estimates have ranged from 10 to 75 percent.

Why is this America’s fault? Because China’s currency is manipulated relative to our own only because we permit it, as there is no law requiring us to sell China our bonds and other assets. We could, in fact, end this manipulation at will. All we would need to do is bar China’s purchases, or just tax them to death.

This would be neither an extreme nor an unprecedented move. It is roughly what the Swiss did in 1972, when economic troubles elsewhere in the world generated an excessive flow of money seeking refuge in Swiss franc-denominated assets. This drove up the value of the franc and threatened to make Swiss manufacturing internationally uncompetitive. To prevent this, the Swiss government imposed a number of measures to dampen foreign investment demand for francs, including a ban on the sale of franc-denominated bonds, securities, and real estate to foreigners. Problem solved. (It did not even damage Switzerland’s standing as an international financial center, a key worry at the time.) …”

“…So the real underlying problem is that America doesn’t generate enough savings on its own to meet its voracious appetite for borrowing. China’s savings rate, thanks to deliberate suppression by the Chinese government of its people’s opportunities to spend what they earn, is an astonishing 50 percent. Ours was negative four percent in the last Federal Reserve report on the subject. We are—Oh, how Mao would have loved this!—decadent. …”

http://seekingalpha.com/article/198825-why-chinese-currency-manipulation-is-americas-fault

 


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Pushing On A G-String–No Job Recovery And Declining Prices Results In Federal Reserve Buying Govenment Debt To Spur Economic Growth By Expanding Money Supply–Videos

Posted on August 10, 2010. Filed under: Blogroll, College, Communications, Economics, Education, Employment, Federal Government, Fiscal Policy, government, government spending, history, Investments, Language, Law, liberty, Life, Links, media, Monetary Policy, People, Philosophy, Politics, Quotations, Rants, Raves, Strategy, Video, Wisdom | Tags: , , , , , , , , |

“…Pushing on a string is a metaphor for influence that is more effective in moving things in one direction than another – you can pull, but not push.

If something is connected to you by a string, you can move it toward you by pulling on the string, but you can’t move it away from you by pushing on the string. It is often used in the context of economic policy, specifically the view that “Monetary policy [is] asymmetric; it being easier to stop an expansion than to end a severe contraction.”[1]
…”

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

G-string humor

http://www.shadowstats.com/

http://www.shadowstats.com/alternate_data/inflation-charts

http://www.shadowstats.com/alternate_data/money-supply-charts

http://nowandfutures.com/key_stats.html

http://money.cnn.com/2010/08/10/news/economy/fed_decision/index.htm

Fed To Buy More Government Debt; Rates Remain Low

Federal Reserve to buy long-term Treasury debt, keeps target rate unchanged

Bob McTeer – FOMC Meeting

Bob McTeer – Deflation

Quantitative Easing Only Tool Left for Fed

Paulsen Says Tech, Consumer Stocks May Be Poised to Rise: Video

http://www.youtube.com/watch?v=-vdnZ5GNMnY

Fed Looks to Spur Growth by Buying Government Debt

http://www.bloomberg.com/news/2010-08-10/fed-to-reinvest-principal-on-mortgage-proceeds-into-long-term-treasuries.html

O’Sullivan Sees Pressure on Fed to Signal Policy Easing: Video

http://www.youtube.com/watch?v=kJ4hMc8QTY8

Reinhart Sees New Round of Quantitative Easing by Fed: Video

http://www.youtube.com/watch?v=ECF9B3zQIv8

David Rovelli Discusses Investment Strategy, Fed Policy: Video

http://www.youtube.com/watch?v=HFTXR7WHa0Y

Jim Rogers on The Federal Reserve

Inflation Is A Sinister Beast – If You Uncage It, It Will Decimate The Economy 

http://www.youtube.com/watch?v=zTxouHJ98i0

 

The Federal Reserve recognizes that a jobless recovery is not a recovery at all and the Bush Obama Depression is only continuing and getting worse.

The Federal Reserve statement is misleading when it comes to the state of the economy and future prospects:

Information received since the Federal Open Market Committee met in June indicates that the pace of recovery in output and employment has slowed in recent months. Household spending is increasing gradually, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit. Business spending on equipment and software is rising; however, investment in nonresidential structures continues to be weak and employers remain reluctant to add to payrolls. Housing starts remain at a depressed level. Bank lending has continued to contract. Nonetheless, the Committee anticipates a gradual return to higher levels of resource utilization in a context of price stability, although the pace of economic recovery is likely to be more modest in the near term than had been anticipated.

http://www.federalreserve.gov/newsevents/press/monetary/20100810a.htm

Fully expect unemployment rates measured by U-3, the official unemployment rate, to exceed 9% and by U-6, the real unemployment rate, to exceed 15% for the next two to three years.

This means that between 14 and 24 million Americans will be unemployed over the next two year.

During the worst months of the Great Depression in 1933, the number of unemployed Americans was about 13 million.

This would indeed be a very modest recovery in the near term.

Actually it means the Bush Obama Depression will last well into 2014.

Yes there will be positive economic growth in terms of output or production numbers.

No there will not be a recovery in terms of jobs for the “near term”–two or three years!

Disregard all the nonsense about a double dip recession, we are in a depression with over 20% of the American work force looking for full time work.

The Federal Reserve bears much of the responsibility for creating this mess or financial crisis by having an expansionary or easy money policy to promote the profits of the commercial banks during the real estate “boom” or “bubble.”

Bernanke: Why are we still listening to this guy?

Peter Schiff on Ben Bernanke Confirmation

The Federal Reserve will leave the Federal Funds rate at a target rate of between 0% to .25% for the foreseeable future.

The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period.

http://www.federalreserve.gov/newsevents/press/monetary/20100810a.htm

This statement only confirms that the Federal Reserve fully expects the Bush Obama Depression to last another two years or more.

The Federal Reserve will gradually expand the money supply by engaging in open market operations by buying Government Treasury Notes with Federal Reserve Notes on the interest earned from its existing portfolio of assets.

To help support the economic recovery in a context of price stability, the Committee will keep constant the Federal Reserve’s holdings of securities at their current level by reinvesting principal payments from agency debt and agency mortgage-backed securities in longer-term Treasury securities.1 The Committee will continue to roll over the Federal Reserve’s holdings of Treasury securities as they mature.

http://www.federalreserve.gov/newsevents/press/monetary/20100810a.htm

Over the last two years the Federal Reserve purchased over $1 trillion in debt securities backed by mortgages and government-sponsored mortgages from such firms as Fannie Mae and Freddie Mac.

Debt and Deficits

On Tuesday the Federal Reserve announced it would reinvest principle payments from these maturing securities into long-term Treasurys by purchasing 2-year and 10-year Treasury Notes. The amount purchased over the next year will amount to about $100 billion in additional purchasers of Treasurys.

Unfortunately, this expansionary monetary policy is not going to work.

The Fed is pushing on a string, the G-string of Giant Government.

The real problem is the uncertainty being generated by the Obama Administration in the form of government intervention into the U.S. economy including mandated health care plans, financial regulation, energy regulation, and proposed new taxes on energy and higher tax rates by letting the Bush tax rate cuts expire at the end of 2010.

Both small and medium size businesses see that the Obama Administration is expanding the size and scope of government.

The only conclusion is this can only lead to more and higher taxes that will largely come from small and medium size businesses that create the jobs and wealth.

As a result most small and medium size businesses are simply not hiring and many are still laying-off employees as business declines.

What will it take for an expansionary monetary policy to work.

Fundamental changes in fiscal policy on both the spending and tax revenue side.

A major reduction in Federal expenditures would require the shutting down of ten Federal Departments.

Milton Friedman on Libertarianism (Part 4 of 4)

 

President Obama simply will not cut spending by closing down entire Federal Departments.

President Obama wants to do the exact opposite by expanding or increasing the budgets of most Federal Departments.

Obama lacks both the constrained vision and courage to even attempt such a fiscal policy.

The only thing left then is tax reform.This would require the replacement of all existing income and payroll taxes with a broad based national consumption sales tax such as the FairTax.

The FairTax: It’s Time

Again President Obama simply does not have the courage to take on the base of the progressive radical socialist Democratic Party.

Instead President Obama wants to add new taxes, either a cap-and-trade energy tax and/or a value added tax on top of all existing taxes.

These taxes if passed would only make the Bush Obama Depression last well into 2014.

This is much like what President Franklin D. Roosevelt did in the 1930s by increasing income tax rates and expanding consumption taxes on certain goods and service.

As a result the U.S. economy did not recover from the Great Depression until 1946.

Robert Higgs on Economic Prospects for 2010

To summarize, the Obama Administration’s fiscal policies will only make the recession last much longer.

Thus Obama’s fiscal policy dooms to failure the Federal Reserve’s expansionary monetary policy.

Until the current political regime is change, expect no progress and little confidence by businesses and consumers.

More taxes and more government spending is not a plan, it is an economic catastrophe.

The result will be an inflationary depression–The Bush Obama Depression!

Time to end the banking cartel of the Federal Reserve System whose only function is protect banking profits and pass along banking losses to the American people.

Gary North knows and understands that the Federal Reserve System is a banking cartel and really does love to push the string while over 30 million Americans look for a full time job:

“…The FED knows it is pushing on a string. It loves that string. Why? Because that limp string – no commercial bank lending – delays the advent of price inflation. This has enabled the FED to achieve the following by doubling the monetary base (the FED’s balance sheet):

1. Bail out the big banks (asset swaps)
2. Keep the banking system from imploding
3. Bail out the Federal government
4. Bail out Fannie Mae and Freddie Mac
5. Keep real estate from collapsing
6. Slow price inflation to close to zero
7. Keep T-bill rates under 0.5%

At what cost? Unemployed workers. That is a small price to pay if you are a high-salary central banker with a fully funded pension.

The FED’s policies have not failed. They have succeeded beyond Bernanke’s wildest expectations. Greenspan’s bubbles are all popped. Price inflation is gone. There is no price deflation, either. For the first time since 1955, the FED has attained its mandate from Congress: price stability. …”

End The Fed Now!

The Cash Drop

Background Articles and Videos

Pushing on a String

by Gary North

“…The FED knows it is pushing on a string. It loves that string. Why? Because that limp string – no commercial bank lending – delays the advent of price inflation. This has enabled the FED to achieve the following by doubling the monetary base (the FED’s balance sheet):

1. Bail out the big banks (asset swaps)
2. Keep the banking system from imploding
3. Bail out the Federal government
4. Bail out Fannie Mae and Freddie Mac
5. Keep real estate from collapsing
6. Slow price inflation to close to zero
7. Keep T-bill rates under 0.5%

At what cost? Unemployed workers. That is a small price to pay if you are a high-salary central banker with a fully funded pension.

The FED’s policies have not failed. They have succeeded beyond Bernanke’s wildest expectations. Greenspan’s bubbles are all popped. Price inflation is gone. There is no price deflation, either. For the first time since 1955, the FED has attained its mandate from Congress: price stability.

Greenspan’s FED never attained the power over the economy that Bernanke’s FED now possesses. The FED has been given almost complete regulatory control over the financial system. Congress buckled. Bernanke has been given a free ride. The Federal government now owns General Motors. Keynesianism is having its greatest revival in 30 years.

So far, the FED has won. Yet deflationists argue that the economy is in a deflationary spiral that the FED cannot prevent. They do not know what they are talking about. They never have.

CONCLUSION

The Federal Reserve can re-ignite monetary inflation at any time by charging banks a fee to keep excess reserves with the FED.

Anyone who predicts an inevitable price deflation does not understand that the present scenario is the product of legitimately terrified bankers and the Federal Reserve’s Board of Governors. At any time, the FED can get all of the banks’ money lent. But the FED knows that this will double the money supply within weeks. This will create mass price inflation.

This is the central fact in the inflation vs. deflation debate. Until the deflationists answer it with a unified voice, they will remain, as their predecessors remained, people with neither a theoretical nor a practical case for their position.

So, the FED waits. Meanwhile, the Federal government’s share of the economy rises relentlessly because of the deficits. This is not going to change in the next few years.

We are seeing Keynesianism’s last stand. When it fails, the FED will force the banks to lend. Then we will see mass inflation.

Mass deflation? Forget about it. …”

http://www.lewrockwell.com/north/north722.html

 

Federal Reserve System Crisis

End The Fed! – Why the Federal Reserve Must Be Abolished!

Fiat Empire – Why the Federal Reserve Violates the US Constitution 1 of 6

Fiat Empire – Why the Federal Reserve Violates the US Constitution 2 of 6

Fiat Empire – Why the Federal Reserve Violates the US Constitution 3 of 6

Fiat Empire – Why the Federal Reserve Violates the US Constitution 4 of 6

Fiat Empire – Why the Federal Reserve Violates the US Constitution 5 of 6

Fiat Empire – Why the Federal Reserve Violates the US Constitution 6 of 6

“…Release Date: August 10, 2010

For immediate release

Information received since the Federal Open Market Committee met in June indicates that the pace of recovery in output and employment has slowed in recent months. Household spending is increasing gradually, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit. Business spending on equipment and software is rising; however, investment in nonresidential structures continues to be weak and employers remain reluctant to add to payrolls. Housing starts remain at a depressed level. Bank lending has continued to contract. Nonetheless, the Committee anticipates a gradual return to higher levels of resource utilization in a context of price stability, although the pace of economic recovery is likely to be more modest in the near term than had been anticipated.

Measures of underlying inflation have trended lower in recent quarters and, with substantial resource slack continuing to restrain cost pressures and longer-term inflation expectations stable, inflation is likely to be subdued for some time.

The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period.

To help support the economic recovery in a context of price stability, the Committee will keep constant the Federal Reserve’s holdings of securities at their current level by reinvesting principal payments from agency debt and agency mortgage-backed securities in longer-term Treasury securities.1 The Committee will continue to roll over the Federal Reserve’s holdings of Treasury securities as they mature.

The Committee will continue to monitor the economic outlook and financial developments and will employ its policy tools as necessary to promote economic recovery and price stability.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke; Donald L. Kohn; Sandra Pianalto; Eric S. Rosengren; Daniel K. Tarullo; and Kevin M. Warsh.

Voting against the policy was Thomas M. Hoenig, who judges that the economy is recovering modestly, as projected. Accordingly, he believed that continuing to express the expectation of exceptionally low levels of the federal funds rate for an extended period was no longer warranted and limits the Committee’s ability to adjust policy when needed. In addition, given economic and financial conditions, Mr. Hoenig did not believe that keeping constant the size of the Federal Reserve’s holdings of longer-term securities at their current level was required to support a return to the Committee’s policy objectives. …”

http://www.federalreserve.gov/newsevents/press/monetary/20100810a.htm

Quantitative easing

E5. Introduction to Monetary Policy

Quantitative Easing  

“…The term quantitative easing (QE) describes a form of monetary policy used by central banks to increase the supply of money in an economy when the bank interest rate, discount rate and/or interbank interest rate are either at, or close to, zero.[citation needed] A central bank does this by first crediting its own account with money it has created ex nihilo (“out of nothing”).[1] It then purchases financial assets, including government bonds and corporate bonds, from banks and other financial institutions in a process referred to as open market operations. The purchases, by way of account deposits, give banks the excess reserves required for them to create new money by the process of deposit multiplication from increased lending in the fractional reserve banking system. The increase in the money supply thus stimulates the economy. Risks include the policy being more effective than intended, spurring hyperinflation, or the risk of not being effective enough, if banks opt simply to pocket the additional cash in order to increase their capital reserves in a climate of increasing defaults in their present loan portfolio.[1]

“Quantitative” refers to the fact that a specific quantity of money is being created; “easing” refers to reducing the pressure on banks.[2] However, another explanation is that the name comes from the Japanese-language expression for “stimulatory monetary policy”, which uses the term “easing”.[3] Quantitative easing is sometimes colloquially described as “printing money” although in reality the money is simply created by electronically adding a number to an account. Examples of economies where this policy has been used include Japan during the early 2000s, and the United States and United Kingdom during the global financial crisis of 2008–2009. …”

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

Open Market Operations

“…Open market operations–purchases and sales of U.S. Treasury and federal agency securities–are the Federal Reserve’s principal tool for implementing monetary policy. The short-term objective for open market operations is specified by the Federal Open Market Committee (FOMC). This objective can be a desired quantity of reserves or a desired price (the federal funds rate). The federal funds rate is the interest rate at which depository institutions lend balances at the Federal Reserve to other depository institutions overnight.

The Federal Reserve’s objective for open market operations has varied over the years. During the 1980s, the focus gradually shifted toward attaining a specified level of the federal funds rate, a process that was largely complete by the end of the decade. Beginning in 1994, the FOMC began announcing changes in its policy stance, and in 1995 it began to explicitly state its target level for the federal funds rate. Since February 2000, the statement issued by the FOMC shortly after each of its meetings usually has included the Committee’s assessment of the risks to the attainment of its long-run goals of price stability and sustainable economic growth. …”

http://www.federalreserve.gov/monetarypolicy/openmarket.htm

The Discount Rate

“…The discount rate is the interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank’s lending facility–the discount window. The Federal Reserve Banks offer three discount window programs to depository institutions: primary credit, secondary credit, and seasonal credit, each with its own interest rate. All discount window loans are fully secured.

Under the primary credit program, loans are extended for a very short-term (usually overnight) to depository institutions in generally sound financial condition. Depository institutions that are not eligible for primary credit may apply for secondary credit to meet short-term liquidity needs or to resolve severe financial difficulties. Seasonal credit is extended to relatively small depository institutions that have recurring intra-year fluctuations in funding needs, such as banks in agricultural or seasonal resort communities.

The discount rate charged for primary credit (the primary credit rate) is set above the usual level of short-term market interest rates. (Because primary credit is the Federal Reserve’s main discount window program, the Federal Reserve at times uses the term “discount rate” to mean the primary credit rate.) The discount rate on secondary credit is above the rate on primary credit. The discount rate for seasonal credit is an average of selected market rates. Discount rates are established by each Reserve Bank’s board of directors, subject to the review and determination of the Board of Governors of the Federal Reserve System. The discount rates for the three lending programs are the same across all Reserve Banks except on days around a change in the rate. …”

http://www.federalreserve.gov/monetarypolicy/discountrate.htm

Federal Funds Rate

“…In the United States, the federal funds rate is the interest rate at which private depository institutions (mostly banks) lend balances (federal funds) at the Federal Reserve to other depository institutions, usually overnight.[1] It is the interest rate banks charge each other for loans.[2]

The interest rate that the borrowing bank pays to the lending bank to borrow the funds is negotiated between the two banks, and the weighted average of this rate across all such transactions is the federal funds effective rate.

The federal funds target rate is determined by a meeting of the members of the Federal Open Market Committee which normally occurs eight times a year about seven weeks apart. The committee may also hold additional meetings and implement target rate changes outside of its normal schedule.

The Federal Reserve uses Open market operations to influence the supply of money in the U.S. economy[3] to make the federal funds effective rate follow the federal funds target rate. The target value is known as the neutral federal funds rate[4]. At this rate, growth rate of real GDP is stable in relation to Long Run Aggregate Supply at the expected inflation rate.

U.S. banks and thrift institutions are obligated by law to maintain certain levels of reserves, either as reserves with the Fed or as vault cash. The level of these reserves is determined by the outstanding assets and liabilities of each depository institution, as well as by the Fed itself, but is typically 10%[5] of the total value of the bank’s demand accounts (depending on bank size). In the range of $9.3 million to $43.9 million, for transaction deposits (checking accounts, NOWs, and other deposits that can be used to make payments) the reserve requirement in 2007-2008 was 3 percent of the end-of-the-day daily average amount held over a two-week period. Transaction deposits over $43.9 million held at the same depository institution carried a 10 percent reserve requirement.

For example, assume a particular U.S. depository institution, in the normal course of business, issues a loan. This dispenses money and decreases the ratio of bank reserves to money loaned. If its reserve ratio drops below the legally required minimum, it must add to its reserves to remain compliant with Federal Reserve regulations. The bank can borrow the requisite funds from another bank that has a surplus in its account with the Fed. The interest rate that the borrowing bank pays to the lending bank to borrow the funds is negotiated between the two banks, and the weighted average of this rate across all such transactions is the federal funds effective rate.

The nominal rate is a target set by the governors of the Federal Reserve, which they enforce primarily by open market operations. That nominal rate is almost always what is meant by the media referring to the Federal Reserve “changing interest rates.” The actual Fed funds rate generally lies within a range of that target rate, as the Federal Reserve cannot set an exact value through open market operations.

Another way banks can borrow funds to keep up their required reserves is by taking a loan from the Federal Reserve itself at the discount window. These loans are subject to audit by the Fed, and the discount rate is usually higher than the federal funds rate. Confusion between these two kinds of loans often leads to confusion between the federal funds rate and the discount rate. Another difference is that while the Fed cannot set an exact federal funds rate, it can set a specific discount rate.

The federal funds rate target is decided by the governors at Federal Open Market Committee (FOMC) meetings. The FOMC members will either increase, decrease, or leave the rate unchanged depending on the meeting’s agenda and the economic conditions of the U.S. It is possible to infer the market expectations of the FOMC decisions at future meetings from the Chicago Board of Trade (CBOT) Fed Funds futures contracts, and these probabilities are widely reported in the financial media. …”

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

Money Supply

“…In economics, the money supply or money stock, is the total amount of money available in an economy at a particular point in time.[1] There are several ways to define “money,” but standard measures usually include currency in circulation and demand deposits (depositors’ easily-accessed assets on the books of financial institutions).[2][3]

Money supply data are recorded and published, usually by the government or the central bank of the country. Public and private sector analysts have long monitored changes in money supply because of its possible effects on the price level, inflation and the business cycle.[4]

That relation between money and prices is historically associated with the quantity theory of money. There is strong empirical evidence of a direct relation between long-term price inflation and money-supply growth, at least for rapid increases in the amount of money in the economy. That is, a country such as Zimbabwe which saw rapid increases in its money supply also saw rapid increases in prices (hyperinflation). This is one reason for the reliance on monetary policy as a means of controlling inflation in the U.S.[5][6] This causal chain is contentious, however: some heterodox economists argue that the money supply is endogenous (determined by the workings of the economy, not by the central bank) and that the sources of inflation must be found in the distributional structure of the economy.[7] In addition to some economists’ seeing the central bank’s control over the money supply as feeble, many would also say that there are two weak links between the growth of the money supply and the inflation rate: first, an increase in the money supply can cause a sustained increase in real production instead of inflation in the aftermath of a recession, when many resources are underutilized. Second, if the velocity of money, i.e., the ratio between nominal GDP and money supply changes, an increase in the money supply could have either no effect, an exaggerated effect, or an unpredictable effect on the growth of nominal GDP. …”

“…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 published or revealed to the public by the US central bank.[15] However, there are still estimates produced by various private institutions.
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. …”

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

“Ben Bernanke Has Never Gotten Anything Right,” Peter Schiff Says: Fed Officials Respond

The Dollar Bubble

Peter Schiff Calls Fed Reserve Chief Ben Bernanke A Liar

Read Full Post | Make a Comment ( None so far )

The Ascent of Money–Videos

Posted on June 23, 2010. Filed under: Blogroll, Communications, Economics, Employment, Fiscal Policy, government, Investments, Law, liberty, Life, Links, media, Monetary Policy, People, Philosophy, Politics, Rants, Raves, Regulations, Sports, Technology, Video, Wisdom | Tags: , , , , , , , , , , |

Money Part 1

 

Money Part 2

Money Part 3

Money Part 4

Money Part 5

Background Articles and Videos

 

Niall Ferguson–”The Ascent of Money–Videos 

 

Related Posts On Pronk Palisades

Niall Ferguson–”The Ascent of Money–Videos

Economists

The Battle For The World Economy–Videos

Frederic Bastiat–The Law–Videos

Walter Block–Videos

Walter Block–Introduction To Libertarianism–Videos

Yaron Brook–Videos

Thomas DiLorenzo–The Economic Model of the Fascist State–Videos

Richard Ebeling–America’s New Road to Serfdom and the Continuing Relevance of Austrian Economics –Videos

Paul Edward Gottfried–Fascism, Anti-Fascism, and the Welfare State–Videos

David Gordon–Five Best Books on the Current Crisis–Video

David Gordon–The Confused Literature of Globalization–Videos

Friedrich Hayek–Videos

Henry Hazlitt–Economics In One Lesson–Videos

Robert Higgs–The Complex Path of Ideological Change–Videos

Robert Higgs–The Great Depression and the Current Recession–Videos

Robert Higgs–Why Are Politicians Always Trying to Scare Us?–Videos

Jörg Guido Hülsmann–The Ethics of Money Production–Videos

Jörg Guido Hülsmann–The Life and Work of Ludwig von Mises–Videos

Milton Friedman–Videos

Milton Friedman on Education–Videos

Milton Friedman–Debate In Iceland–Videos

Milton Friedman–Free To Choose–On Donahue –Videos

Israel Kirzner–On Entrepreneurship–Vidoes

Liberal Fascism–Jonah Goldberg–Videos

Ludwig von Mises–Videos

Robert P. Murphy–Videos

Robert P. Murphy–Government Stimulus: Repeating the mistakes of the Great Depression–Videos

Gary North–Keynes and His Influence–Take The North Challenge–Videos

The Fountainhead, Atlas Shrugged and The Ideas of Ayn Rand

George Gerald Reisman–Why Nazism Was Socialism and Why Socialism Is Totalitarian–Videos

Llewellyn H. Rockwell, Jr–How Empires Bamboozle the Bourgeoisie–Videos

Murray Rothbard–Videos

Murray N. Rothbard–Introduction to Economics: A Private Seminar–Videos

Murray Rothbard–Libertarianism–Video

Rothbard On Keynes–Videos

Murray Rothbard– What Has Government Done to Our Money?–Videos

Peter Schiff–Videos

Schiff, Forbers and Bloomberg Nail The Financial Crisis and Recession–Mistakes Were Made–Greed, Arrogance, Stupidity–Three Chinese Curses!

Larry Sechrest–The Anticapitalists: Barbarians at the Gate–Videos

L. William Seidman on The Economic Crisis: Causes and Cures–Videos

Amity Shlaes–Videos

Julian Simon–Videos

Julian Simon–The Ultimate Resource II: People, Materials, and Environment–Videos

Thomas Sowell and Conflict of Visions–Videos

Thomas Sowell On The Housing Boom and Bust–Videos

Econ Talk With Thomas Sowell–Videos

Peter Thiel–Videos

Thomas E. Woods, Jr.–Videos

Thomas E. Woods–The Economic Crisis and The Federal Reserve–Videos

Tom Woods–Lectures On Liberty–Videos

Thomas E. Woods–The Market Economy–Videos

Tom Woods On Personal Rights and Property Ownership

Tom Woods–Smashing Myths and Restoring Sound Money–Videos

Tom Woods–Who Killed The Constitution

Tom Wright On The FairTax–Videos

Banking Cartel’s Public Relations Campaign Continues:Federal Reserve Chairman Ben Bernanke On The Record

Read Full Post | Make a Comment ( None so far )

Inflation–Surprise–Surprise–It’s Back–An Inflationary Depression Arrives–The Obama Depression!

Posted on February 18, 2010. Filed under: Blogroll, Books, Communications, Demographics, Economics, Education, Employment, Federal Government, Fiscal Policy, government, government spending, Investments, Law, liberty, Life, Links, People, Philosophy, Politics, Rants, Raves, Resources, Security, Strategy, Taxes, Technology, Video, Wisdom | Tags: , , , , , , , , , , , , , , , |

U.S. Debt Clock

http://www.usdebtclock.org/

http://www.federalbudget.com/  

   

M3, longer term chart

   

http://www.nowandfutures.com/key_stats.html    

   

Fed Raises Discount Rate – Peter Schiff – 02-18-2010

Meyer Expects Fed to Raise Funds Rate in Middle of 2011

 

McCullough Sees Compression in Treasury Yield Curve

Dollar Spikes, Euro Sinks Amid Fed’s Discount-Rate Move

The Discount Rate

Ron Paul v Ben Bernanke (1.29.2010)

Glenn Beck- February 18, 2010 (Part 3/4)

Glenn Beck- February 18, 2010 (Part 4/4)

Glenn Beck 20091209 Part 4/4

Inflation Nation The Movie Part 1/3 – Dollar Collapse Ft. Peter Schiff Ron Paul Faber Rogers.

Inflation Nation The Movie Part 2/3 – Dollar Collapse Ft. Peter Schiff Ron Paul Faber Rogers.

Inflation Nation The Movie Part 3/3 – Dollar Collapse Ft. Peter Schiff Ron Paul Faber Rogers.

The Federal Reserve explained.

RBS’s Tucci Discusses Fed Exit Strategy, Bank Industry: Video

 

Background Articles and Videos

   

Ron Paul’s State of the Republic Speech (1 of 3)

   

Ron Paul’s State of the Republic Speech (2 of 3)

Ron Paul’s State of the Republic Speech (3 of 3)

   

CONSUMER PRICE INDEX – JANUARY 2010

“…On a seasonally adjusted basis, the January Consumer Price Index for All Urban Consumers (CPI-U) 

rose 0.2 percent, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the index 

increased 2.6 percent before seasonal adjustment. 

The seasonally adjusted increase in the all items index was due to a rise in the energy index. An increase 

in the gasoline index was the main factor, and the indexes for fuel oil and natural gas rose as well, 

though the electricity index declined. 

The index for all items less food and energy fell 0.1 percent in January. This decline was largely the 

result of decreases in the indexes for shelter, new vehicles, and airline fares. In contrast, the medical care 

index posted its largest increase since January 2008, and the index for used cars and trucks increased 

significantly for the sixth month in a row. 

The food index increased in January, with the food at home component posting its largest increase since 

September 2008. Sharp increases in the indexes for dairy and related products and for fruits and 

vegetables accounted for most of the increase. …” 

“…Food

 The food index rose 0.2 percent in January. The food at home index increased 0.4 percent, with four of

percent in January, but still has declined over the past 12 months. The index for fruits and vegetables  

increased 1.3 percent due to a 2.8 percent increase in the index for fresh fruits. The index for meats, 

poultry, fish, and eggs rose 0.4 percent and the index for nonalcoholic beverages advanced 0.2 percent. 

The indexes for cereals and bakery products declined in January, falling 0.5 percent, and the index for 

other food at home declined 0.3 percent. The index for food away from home increased 0.1 percent in 

January. Over the last 12 months, the food index has declined 0.4 percent with the food at home index 

down 2.0 percent and the index for food away from home up 1.6 percent.

Energy 

The energy index rose 2.8 percent in January, its ninth consecutive increase. The index for energy  

commodities increased 4.9 percent, with the gasoline index rising 4.4 percent. The index for household 

energy rose 0.5 percent in January. The fuel oil index increased 6.1 percent and the index for natural gas 

rose 3.5 percent, while the electricity index declined 1.1 percent. Over the past 12 months, the energy 

index has risen 19.1 percent, with the gasoline index up 51.3 percent but the index for household energy 

down 3.5 percent.

All itmes less food d and energy

The index for all items less food and energy declined 0.1 percent in January after rising 0.1 percent in 

December. The shelter index declined 0.5 percent. The index for lodging away from home fell 2.1 

percent, while the rent index was unchanged and the index for owners’ equivalent rent declined 0.1 

percent. The index for new vehicles fell 0.5 percent, its second consecutive decline, and the index for 

airline fares turned down in January, falling 2.5 percent after increasing in each of the past six months. 

The indexes for household furnishings and operations, for apparel, and for recreation all decreased 0.1 

percent in January. In contrast, the medical care index rose 0.5 percent. The index for medical care 

commodities rose 0.7 percent and the medical care services index advanced 0.5 percent. Also increasing 

was the index for used cars and trucks, which rose 1.5 percent in January and has increased 12.9 percent 

over the past six months. The index for all items less food and energy has risen 1.6 percent over the past 

12 months.

Not seasonally adjusted CPI measures

The Consumer Price Index for All Urban Consumers (CPI-U) increased 2.6 percent over the last 12  

months to an index level of 216.687 (1982-84=100). For the month, the index increased 0.3 percent prior 

to seasonal adjustment. 

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 3.3 percent 

over the last 12 months to an index level of 212.568 (1982-84=100). For the month, the index increased 

0.4 percent prior to seasonal adjustment. …” 

http://www.bls.gov/news.release/pdf/cpi.pdf  

 
Current Consumer Price Index
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Ave
2009 211.143 212.193 212.709 213.240 213.856 215.693 215.351 215.834 215.969 216.177 216.330 215.949 NA
2008 211.080 211.693 213.528 214.823 216.632 218.815 219.964 219.086 218.783 216.573 212.425 210.228 215.303
2007 202.416 203.499 205.352 206.686 207.949 208.352 208.299 207.917 208.490 208.936 210.177 210.036 207.342
2006 198.3 198.7 199.8 201.5 202.5 202.9 203.5 203.9 202.9 201.8 201.5 201.8 201.6
2005 190.7 191.8 193.3 194.6 194.4 194.5 195.4 196.4 198.8 199.2 197.6 196.8 195.3
2004 185.2 186.2 187.4 188.0 189.1 189.7 189.4 189.5 189.9 190.9 191.0 190.3 188.9
2003 181.7 183.1 184.2 183.8 183.5 183.7 183.9 184.6 185.2 185.0 184.5 184.3 183.96
2002 177.1 177.8 178.8 179.8 179.8 179.9 180.1 180.7 181.0 181.3 181.3 180.9 179.88
2001 175.1 175.8 176.2 176.9 177.7 178.0 177.5 177.5 178.3 177.7 177.4 176.7 177.07
2000 168.8 169.8 171.2 171.3 171.5 172.4 172.8 172.8 173.7 174.0 174.1 174.0 172.2
Get more Historical Data from InflationData.com
Consumer Price Index- All Urban Consumers- Not Seasonally Adjusted – (CPI-U) – Base Period : 1982-84=100
Note: NA means data has not been released yet. Effective January 2007 the BLS began Publishing the CPI to 3 decimal places.
However, InflationData.com is still the only place to get Inflation Rates calculated to 2 decimal places.
http://inflationdata.com/inflation/Consumer_Price_Index/CurrentCPI.asp

Producer Price Index News Release text

   

Transmission of material in this release is embargoed until                         USDL-10-0206
8:30 a.m. (EST), Thursday, February 18, 2010

Technical information:      (202) 691-7705  *  ppi-info@bls.gov  *  www.bls.gov/ppi
Media contact:              (202) 691-5902  *  PressOffice@bls.gov  

                            PRODUCER PRICE INDEXES - JANUARY 2010

The Producer Price Index for Finished Goods rose 1.4 percent in January, seasonally adjusted,
the U.S. Bureau of Labor Statistics reported today. This increase followed a 0.4-percent advance
in December and a 1.5-percent rise in November. In January, at the earlier stages of processing,
prices received by manufacturers of intermediate goods climbed 1.7 percent, and the crude goods
index jumped 9.6 percent. On an unadjusted basis, prices for finished goods moved up 4.6
percent for the 12 months ended January 2010, their third consecutive 12-month increase. (See
table A.)

http://www.bls.gov/news.release/ppi.nr0.htm

    

Exploding Inflation & Higher Interest Rates Coming

    

“…It’s been forecast by everyone but those beating the Obama Democratic drums. Even today, many pundits were saying that inflation wasn’t going to be much of a concern but then Thursday afternoon, Ben Bernanke & Boys raised the Discount Rate from .50% to .75%! This is the opening salvo of interest rates that might have to reach DOUBLE DIGITS to contain the massive printing of money that’s been going on.    

 

The Federal Reserve decided Thursday to boost the rate banks pay for emergency loans. The action is part of a broader move to pull back the extraordinary aid it provided to fight the worst financial and economic crisis since the 1930s. The move won’t directly affect borrowing costs for millions of Americans. But with the worst of the financial crisis over, it brings the Fed’s main crisis lending program closer to normal.    

The Fed decided to bump up the so-called “discount” lending rate by one-quarter point to 0.75 percent. The increase takes effect Friday.   

The central bank said the action should not be viewed as a signal that it will soon boost interest rates for consumers and businesses. Want to bet? Record-low borrowing costs near zero are still needed to foster the recovery, it said. The Fed repeated its pledge to keep interest rates at “exceptionally low” levels for an “extended period.” But with unemployment still near double digits, and demand for loans remains weak, many ordinary Americans and small businesses have found it difficult to borrow. …”   

http://www.articlesbase.com/economics-articles/exploding-inflation-amp-higher-interest-rates-coming-1876816.html   

    

Glenn Beck- February 18, 2010 (Part 1/4)

Glenn Beck- February 18, 2010 (Part 2/4)

Will Bernanke Spark Inflation?-Leslie Marshall-America’s Nightly Scoreboard 2-10-10

Related Posts Pronk Palisades

President Obama Wrecking The United States Economy By Massive Government Deficit Stimulus Spending: The Result: 30 Million Americans Desperately Seeking Full Time Jobs and Over 38 Million Turn To Food Stamps–Over 13 Million Are Children–The Obama Depression–No Hope, No Change! 

   

Food Stamps Hit Record Of 38,200,000 Americans Needing Assistance–Everbody Hates Food Stamps–Until You and Your Children Are Hungry

A New Political Party In The United States? American Citizens Alliance Party–ACAP On Government Spending, Taxes, Debt, and Regulations!

   

Presidential Oath Takers and Oath Breakers–Stopping The 20 Million Mexican Illegal Alien Invasion of the United States! 

 

Cloward Piven

The Cloward-Piven Strategy Of The Progressive Radical Socialists: Wrecking The U.S. Economy By Massive Government Dependence, Spending, Deficits, Debts, Taxes And Regulations!

Cloward Piven Strategy–The Crisis Strategy Of Barack Obama

President Obama’s Cloward-Piven Strategy of Controlled Crisis Creation Crippling Capitalism–Coup D-Etat On America 

   

Economists

The Battle For The World Economy–Videos

Frederic Bastiat–The Law–Videos

Walter Block–Videos

Walter Block–Introduction To Libertarianism–Videos

Yaron Brook–Videos

Thomas DiLorenzo–The Economic Model of the Fascist State–Videos

Paul Edward Gottfried–Fascism, Anti-Fascism, and the Welfare State–Videos

David Gordon–Five Best Books on the Current Crisis–Video

David Gordon–The Confused Literature of Globalization–Videos

Friedrich Hayek–Videos

Henry Hazlitt–Economics In One Lesson–Videos

The Great Depression and the Current Recession–Robert Higgs–Videos

Jörg Guido Hülsmann–The Ethics of Money Production–Videos

Jörg Guido Hülsmann–The Life and Work of Ludwig von Mises–Videos

Milton Friedman–Videos

Milton Friedman on Education–Videos

Milton Friedman–Debate In Iceland–Videos

Milton Friedman–Free To Choose–On Donahue –Videos

Israel Kirzner–On Entrepreneurship–Vidoes

Liberal Fascism–Jonah Goldberg–Videos

Ludwig von Mises–Videos

Robert P. Murphy–Videos

The Fountainhead, Atlas Shrugged and The Ideas of Ayn Rand

George Gerald Reisman–Why Nazism Was Socialism and Why Socialism Is Totalitarian–Videos

Murray Rothbard–Videos

Murray Rothbard–Libertarianism–Video

Rothbard On Keynes–Videos

Murray Rothbard– What Has Government Done to Our Money?–Videos

Peter Schiff–Videos

Schiff, Forbers and Bloomberg Nail The Financial Crisis and Recession–Mistakes Were Made–Greed, Arrogance, Stupidity–Three Chinese Curses!

Larry Sechrest–The Anticapitalists: Barbarians at the Gate–Videos

L. William Seidman on The Economic Crisis: Causes and Cures–Videos

Amity Shlaes–Videos

Julian Simon–Videos

Thomas Sowell and Conflict of Visions–Videos

Thomas Sowell On The Housing Boom and Bust–Videos

Peter Thiel–Videos

Thomas E. Woods, Jr.–Videos

Thomas E. Woods–The Economic Crisis and The Federal Reserve–Videos

Tom Woods–Lectures On Liberty–Videos

Tom Woods–Smashing Myths and Restoring Sound Money–Videos

Tom Wright On The FairTax–Videos

Banking Cartel’s Public Relations Campaign Continues:Federal Reserve Chairman Ben Bernanke On The Record

   

Federal Reserve System

Keynes Is Dead—-Obama Digging Up Keynes–Free Market Capitalism Lives

The Coming Inflation and A New Money Supply Backed By Real Estate?–Free Enterprise To The Rescue?

Richard Fisher–Inflation and Debt: The Interaction of Fiscal and Monetary Policy –Videos

Banking Cartel’s Public Relations Campaign Continues:Federal Reserve Chairman Ben Bernanke On The Record

Banking–Videos

Creature from Jekyll Island: The Federal Reserve System–Videos

The Monopoly Men: The Federal Reserve Bank Cartel–Videos 

M3 Money Meteorite Moves–Deep Impact–The Coming Inflation Tidal Wave–Wage and Price Controls Will Signal Radical Socialist Obama’s Failure!

Murray Rothbard– What Has Government Done to Our Money?–Videos

    

Ludwig von Mises Institute

Tom Woods and Murry Rothbard on Keynesian Predictions vs. American History–Lessons President Obama Never Learned–Videos

Our Enemy, Inflation–Videos

The Great Depression and the Current Recession–Robert Higgs–Videos

Murray Rothbard–Videos

Murray Rothbard– What Has Government Done to Our Money?–Videos

Thomas E. Woods, Jr.–Videos

   

Read Full Post | Make a Comment ( 2 so far )

The Coming Inflation and A New Money Supply Backed By Real Estate?–Free Enterprise To The Rescue?

Posted on October 28, 2009. Filed under: Blogroll, Communications, Economics, Employment, Fiscal Policy, government spending, Health Care, Immigration, Investments, Law, liberty, Life, Links, Medicine, People, Philosophy, Politics, Quotations, Rants, Raves, Regulations, Technology, Video, Wisdom | Tags: , , , , , , , , |

us_currency

 

US Debt Clock

http://www.usdebtclock.org/ 

  

  

 

 The Pew Research Center for the People & the Press

Reasons for America’s Success

“…Although many Americans are distrustful of government, wary of the news media and disinterested in politics, they resoundingly endorse the economic and democratic systems on which the nation is grounded. When looking back on the accomplishments of the 20th century, overwhelming majorities agree that the Constitution (85%), free elections (84%), and the free enterprise system (81%) are major reasons for the success that the U.S. has enjoyed during the past 100 years. The public may be frustrated by how the system operates, but they like the design. …”

http://people-press.org/report/?pageid=282

 

 

 

Glenn Beck-10-28-09-A

Glenn Beck-10-28-09-B

Glenn Beck-10-28-09-C

Glenn Beck-10-28-09-D

Glenn Beck-10-28-09-E

The political elites should pay attention to what the American people believe is responsible for America’s success.

Politicians and political parties can and will be replaced when they propose plans and programs that undermine the US Constitution, free elections and free enterprise.

The progressive radical socialists will be defeated and eliminated should they attempt to overthrow these institutions and ignore the will of the American people.

“Capitalism means free enterprise, sovereignty of the consumers in economic matters, and sovereignty of the voters in political matters. Socialism means full government control of every sphere of the individuals life and the unrestricted supremacy of the government in its capacity as central board of production management.”

~Ludwig von Mises

Background Articles and Videos

Author Jonah Goldberg on Glenn Beck 2/20 – Liberal Fascism

Free Enterprise, the Economy and Monetary Policy

“…Free enterprise is the freedom of individuals and businesses to operate and compete with a minimum of government interference or regulation. It enables individuals and businesses to create, produce, transform, develop, innovate and compete in the marketplace. As they are able and willing, enterprising people produce goods and services for profit, offer their labor for wages and own the resources needed to produce and sell goods and services. In this system, no one forces people to be creative, productive or enterprising. Instead, they pursue what they believe to be best for them. By producing the goods and services that society values most highly, a free enterprise system results in the greatest efficiency, or lowest costs, of any economic system. It is the system most compatible with individual freedom and political democracy.

 What Is Free Enterprise?

Free enterprise means men and women have the opportunity to own economic resources, such as land, minerals, manufacturing plants and computers, and to use those tools to create goods and services for sale.

What prompts people to take the financial and emotional risk of starting a business? The main motivator is the potential to earn a profit. People also go into business for personal reasons, such as the desire for independence and the drive to be creative.

Others have no intention of starting a business. If they choose, they can offer their labor, another economic resource, for wages and salaries. The key to free enterprise is that all these people, whether they start a business of their own or work for someone else, do so voluntarily. By allowing people to pursue their own interests, a free enterprise system can produce phenomenal results. Running shoes, walking shoes, mint toothpaste, gel toothpaste, skim milk, chocolate milk, cellular phones and BlackBerrys are just a few of the millions of products created as a result of economic freedom. …”

http://www.dallasfed.org/educate/everyday/ev5.html

Fed & Treasury total money supply

All major Fed operations (plus custodials), showing the running total of all Fed & Treasury controlled money creation or destruction actions.

 

fs1

http://www.nowandfutures.com/key_stats.html

The Money Supply

Money Supply Measures
The Federal Reserve publishes weekly and monthly data on two money supply measures M1 and M2. The money supply data, which the Fed reports at 4:30 p.m. every Thursday, appear in some Friday newspapers, and they are available online as well. The Fed publishes measures of large time deposits on a quarterly basis in the Flow of Funds Accounts statistical release.

The money supply measures reflect the different degrees of liquidity—or spendability—that different types of money have. The narrowest measure, M1, is restricted to the most liquid forms of money; it consists of currency in the hands of the public; travelers checks; demand deposits, and other deposits against which checks can be written. M2 includes M1, plus savings accounts, time deposits of under $100,000, and balances in retail money market mutual funds.

The chart below shows the relative sizes of the two monetary aggregates. In April 2008, M1 was approximately $1.4 trillion, more than half of which consisted of currency. While as much as two-thirds of U.S. currency in circulation may be held outside the United States, all currency held by the public is included in the money supply because it can be spent on goods and services in the U.S. economy. M2 was approximately $7.7 trillion and largely consisted of savings deposits.

The Money Supply

http://www.ny.frb.org/aboutthefed/fedpoint/fed49.html

Money Supply

“…In economics, money supply or money stock, is the total amount of money available in an economy at a particular point in time.[1] There are several ways to define “money”, but standard measures usually include currency in circulation and demand deposits.[2][3]

Money supply data are recorded and published, usually by the government or the central bank of the country. Public and private-sector analysts have long monitored changes in money supply because of its possible effects on the price level, inflation and the business cycle.[4]

That relation between money and prices is historically associated with the quantity theory of money. There is strong empirical evidence of a direct relation between long-term price inflation and money-supply growth. These underlie the current reliance on monetary policy as a means of controlling inflation.[5][6] This causal chain is however contentious, with heterodox economists arguing that the money supply is endogenous and that the sources of inflation must be found in the distributional structure of the economy.[7]

Money is used 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. Since most modern economic systems are regulated by governments through monetary policy, the supply of money is broken down into types of money based on how much of an effect monetary policy can have on each. Narrow measures include those more directly affected by monetary policy, whereas broader measures are less closely related to monetary-policy actions.[6] Each measure can be classified by placing it along a spectrum between narrow and broad monetary aggregates. The different types of money are typically classified as Ms. The number of Ms usually range from M0 (narrowest) to M3 (broadest) but which Ms are actually used depends on the system. The typical layout for each of the Ms is as follows:

  • M0: Notes and coins (currency) in circulation and in bank vaults.[8] In some countries, such as the United Kingdom, M0 includes bank reserves, so M0 is referred to as the monetary base, or narrow money.[9]
  • MB: Equals M0 + reserves which commercial banks hold in their accounts with the central bank (minimum reserves and excess reserves). MB is referred to as the monetary base or total currency.[10] 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. [11]
  • M1: M1 includes funds that are readily accessible for spending. M1 consists of: (1) currency outside Federal Reserve Banks, and the vaults of depository institutions; (2) traveler’s checks of nonbank issuers; (3) demand deposits; and (4) other checkable deposits (OCDs), which consist primarily of negotiable order of withdrawal (NOW) accounts at depository institutions and credit union share draft accounts. [12] Bank reserves are not included in M1.
  • M2: Equals M1 + savings deposits, time deposits less than $100,000 and money market deposit accounts for individuals. 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: Equals M2 + large time deposits, institutional money-market funds, short-term repurchase agreements, along with other larger liquid assets.[15] M3 is no longer published or revealed to the public by the US central bank.[16] However, it is estimated by the web site Shadow Government Statistics. [17]
  • MZM: Money with zero maturity. This measure equals M2 plus all money market funds, minus time deposits. It measures the supply of financial assets redeemable at par on demand.

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[18][19]:

  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[20]

In the money supply statistics, central bank money is M0 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. 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 amount of money the banking system generates with each dollar of reserves is called the money multiplier, and is calculated as the reciprocal of the minimum reserve. For a reserve of 10% the money multiplier, followed by the infinite geometric series formula, is the reciprocal of 10%, which is 10. …”

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

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Obama Follows Lenin’s Advice Uses Taxation, Inflation and Corruption To Crush Capitalism

Posted on October 6, 2009. Filed under: Blogroll, Communications, Economics, Employment, Fiscal Policy, Foreign Policy, government spending, Health Care, Immigration, Investments, Law, liberty, Life, Links, media, Monetary Policy, People, Philosophy, Politics, Psychology, Rants, Raves, Regulations, Resources, Security, Video, Wisdom | Tags: , , , , , , , , , , , , , |

“The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation.”

“The best way to destroy the capitalist system is to debauch the currency.”

~Valdimir Lenin

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