WHAT IS THE FED UP TO WITH THE MONEY SUPPLY?

[Clara T]

WHAT IS THE FED UP TO WITH THE MONEY SUPPLY?

Over the past two days, December 21st and 22nd, the Federal Reserve has conducted one of the largest two-day Repo injections of money into the system since back in September 2001. On Wednesday they added $18.0 billion in reserves and on the next day added another $20.0 billion. Is something high-risk going on behind the scenes here? Let us review some facts at the Fed. On November 10th, 2005, shortly after appointing Bernanke to replace Greenbackspan, the Fed mysteriously announced with little comment and no palatable justification that they will hide M-3 effective March 2006. M-3 has been the main staple of money supply measurement and transparent disclosure since the Fed was founded back in 1913. It is the key monetary aggregate that includes Fed Repo transactions, that mechanism whereby the Fed increases reserves. The date when M-3 will start being hidden also happens to be the exact month that Iran will declare economic war against the U.S. Dollar by trading its oil in Petro-Euros on its new bourse. But there is more.

If a substantial amount of oil transactions will suddenly be conducted in euros instead of Dollars, this should put pressure on the Dollar as folks exchange dollars for euros, jeopardizing the dollar’s status as the world’s reserve currency, making it more difficult to print all the dollars the Fed wants to without driving the dollar into the ground. Could the Master Planners be hiding M-3 because they anticipate they may have to monetize the Federal debt, buy our own Treasury Bonds during the coming economic attack against the Dollar? That would require a ton of new fresh money creation – too much to disclose. Could it be some folks at the top of the Fed do not have the stomach to be part of what is about to go down?

more...
http://www.trustprofessionals.com/f-digest/2005/2005-12-26-f.html

http://www.safehaven.com/showarticle.cfm?id=4331&pv=1

[lovuian]

1. WWIII will be a military strike as well as a Economic one

Americans are going to pay the price for being apathetic...

[Ouabache]

2. And now the IRS says it will DELAY Rapid Refunds this year

due to concerns about fraud? That came tonight on my local news. For some reason there appears to a be a liquidity crisis in the offing? Why are the GOP feds at the IRS WITHHOLDING rapid refunds this year? Looks like a stall combined with all this other stuff. At least that is the first thing I thought when I heard it.

[CrazyOrangeCat]

5. They've become masters at . . .

. . . creating any crisis they choose to create. This is going to be quite a year. We simply have got to figure out a way to get everybody who understands this stuff to go out and protest before SOTU. MSM can minimize us only if we are disorganized, depressed, and apathetic.

If a quarter of a million Irish (who are not known for standing around with signs) can show up in 2003 to protest Bush, I would think we could make SOME kind of impact.

[Clara T]

8. Keep playing your trumpet

see ya' there.

Gotta stop the madness and we don't need the MSM. Everybody who knows this stuff got to be Thomas Paine now and that means in the streets and in the flesh. Keep telling everyone.
:toast:

[CrazyOrangeCat]

10. Thanks for the encouragement n/t

[fooj]

16. Yep.

It is the duty of the patriot to protect his country from his government.--Thomas Paine

Peace.

[lovuian]

7. They want Social Security and a crisis would help gobble it up

the Americans won't stand and watch that happen...

[RazzleDazzle]

40. And what about the postal increase mandated by Congress

and NOT as a result of USPS request? The purpose was to raise sevral billion dollars, but what for wasn't specified. Someone should search for that thread -- it was here on DU a week or so ago. I can't find my own bookmark on it.

[imaginary girl]

56. Yes, the USPS actually posted that on their website,

which I thought was a bit odd ... don't know if it's still there -- I stumbled on it last week.

[RazzleDazzle]

58. Could you find it again -- I think it's relevant, possibly

and, as I said, I can't find my own bookmark.

[imaginary girl]

61. Link and text from USPS pasted below ...

Here's the text:

New Domestic Prices Effective January 8, 2006

The Governors of the U.S. Postal Service voted November 14 to accept the Postal Rate Commission's recommendation to increase most rates and fees by approximately 5.4 percent.

This price increase – the first since 2002 – is needed to fulfill a federal law passed in 2003 that requires the Postal Service to place $3.1 billion in an escrow account by October 1, 2006. Without this federal mandate, it would not have been necessary to raise prices in 2006. Among the adjustments, the 1 ounce single-piece rate for First-Class Mail will increase from 37 cents to 39 cents, and the postcard rate will increase by one cent, to 24 cents.

The Board of Governors set Sunday, January 8, 2006, as the effective date for the new rates and fees.

And the link:

http://www.usps.com/ratecase/welcome.htm?from=bannercommunication&page=rate

[Ouabache]

71. Yeah, and did you notice anything in the media about postal increases

usually they are running stories talking about it, and getting man in the street interviews about how terrible another postal hike is, but this time around, I saw zip, nada, nothing. Was the corporate media told to cool it this time? Because it sure seems to me that they did. In fact, I encountered people who did not know there had been a postal rate hike AT ALL.

[Jawja]

63. Well,

that ought to make *'s number drop a little!

[bobthedrummer]

3. China is now moving away from the dollar.

:nuke:

[Clara T]

4. Some Thorny Questions

If a substantial amount of oil transactions will suddenly be conducted in Euros instead of Dollars, this should put pressure on the Dollar as folks exchange Dollars for Euros, jeopardizing the Dollar's status as the world's reserve currency, making it more difficult to print all the dollars the Fed wants to without driving the Dollar into the ground. Iraq threatened to do what Iran has threatened to do just before we went in looking for weapons of mass disappearance. If the Dollar tanks, Treasuries might not be far behind. If Treasuries tank, kiss the Housing-driven boom goodbye. Could the Master Planners be hiding M-3 because they anticipate they may have to monetize the Federal debt, buy our own Treasury Bonds during the coming economic attack against the Dollar? That would require a ton of new fresh money creation - too much to disclose. Could it be some folks at the top of the Fed do not have the stomach to be part of what is about to go down?

http://www.safehaven.com/showarticle.cfm?id=4331&pv=1

[bobthedrummer]

6. China also has invested in Nigerian oil after the offer to buy Unocal

was rejected.

[Sadie5]

9. Only rapid refunds?

Or will they seize all refunds next as a way to keep our money. I rely on my refund to pay my property taxes each year.

[Jayhawk Lib]

22. Minimum amount withheld.

The best thing any one can do is have the very minimum amount of money withheld from your paycheck. There is absolutely no sense in letting the government hold on to your money for up to a year interest free.

I try to set my deductions so at the end of the year I owe them instead of them owing me. I set up a little credit union account and put a small amount in it each payday so I have the money to pay the shortfall come tax time.

[RazzleDazzle]

43. Technically

It's against the rules (if not the law) to under-withhold. Or at least that's my understanding. What I'm saying is, I'm not sure how long you can get away with that. Maybe if it's just a case of a few bucks, it's not big deal. But will they catch on sooner or later? Basically, you're required to give them what they're due (according to good estimates) at least quarterly, which is exactly what quarterly withholding deposits are all about.

[Jayhawk Lib]

54. I owe them a little bit every year

and have never had a problem. I think the way the law states that if you under with hold 10% or more there is a penalty. The best thing is to try and have it where you do not get much of a refund or owe too much. I do not want the government using my money interest free for a year.

[Jawja]

64. I've always done that at

the advice of a very good CPA. Why should the government hold your money at no interest? Better to owe a little than to get a refund, was the wisdom behind it.

[Rainscents]

11. This is pretty scary!

[hang a left]

12. I am not versed in money supply

I wish someone could explain this in layman's terms.

[PVK]

13. This may help.

http://macroblog.typepad.com/macroblog/2005/08/global_dollar_d.html

[hang a left]

14. Thanks. That was nice of you.

But you might as well sent me to a site that was in Japanese. I didn't get it at all. I need something like: Dick prints greenbacks. Dick gives greenbacks to Jane.

[zippy890]

20. this confuses me too, I don't get it

it all seems so theoretical

[julianer]

21. At the moment the world

wants to buy dollars because most international trade is done in dollars - they are valuable and worth having, unlike a currency that isn't used much in trade like the rouble under the USSR.

If you haven't got dollars you might end up paying more because the value of your currency is low. So countries and rich individuals buy dollars from the US govt so they can trade efficiently.

This means that the US government can print money without having the same inflationary effects as would happen to a weak, unwanted currency like the Mark in Germany after WWI. Somebody always wants those dollars.

But this is changing. US economic power has been in relative decline for about 30 years and the dollar is coming under pressure because it is being valued too highly in relation to the strength of the underlying economy and the extent of US government debt. People are not so keen to have dollars 'cus they're not really worth it and could suddenly collapse in value.

If oil could be traded in Euros, as is proposed by Iran, it would collapse the falsely high value of the dollar and undermine its use as everyone's favourite trading currency - those would become the Euro and the Yen.

Edit: grammar buff up.

[slaveplanet]

26. And this is the real reason

Countries get labeled "Rogue states" by the globalists, It has nothing to do with thier nukular proliferation (much of the technology has come to them through these same globalists), nor does it have to do with how evil the dictator is (many installed directly by these same globalists)

Kissinger went around in the 80's to get the likes of Saudi Arabia, Iraq, and Iran to sign binding agreements that oil would be traded in dollars, Iraq and SA signed on , Iran did not. Iraq was going to reneg and we all know what happened, and we know what will happen to Iran, Long ago they've been dictated to, that the US/Israel will be used(Strongarm pawns) to attack militarily to protect globalist dictates. It's all a setup.

When this happens it is likely to be the second round of WW3 , Iraq and Afghanistan being the first round. the second round will really get things rolling. Also I predict China will take Taiwan as early as this year as they cannot wait until after the olympics in 2008, as that would destroy the window of opportunity, so the sooner the better in thier opinion.

The globalists need cannon fodder on both sides, in China this is not a problem, In the US no jobs=lots of fodder units... this whole money crisis has been engineered over decades, and the vultures are circling ready to enact their evil scheme.

Round three will be the faceoff with China/Russia... the whole thing engineered and funded by the globalists...after the conflict ...world government, world slavery, with the globalists sitting at the top, telling the unfortunate survivors how evil freedom was and how freedom caused the whole mess, and how freedom will never be tolerated again... the whole while, claiming they're our saviors/God,... naturally.

[julianer]

27. I'm not sure that this is a plan

that's being worked out. I think this is just how unregulated capital movements always will behave - equilibrium is not possible in capitalism, especially when the movers of capital 'self-regulate'.

But you are right about the motivations behind the present anti-Iran sabre rattling and the entirety of western foreign policy - it's about capital's access to raw materials and labour. If a country seeks to restrict foreign capital flow within its territory it is only a question of time before it is a target for the US and allies politically, economically and, ultimately, militarily.

[slaveplanet]

28. It's not set in stone

but this is the general thrust I see forming...expect lots of "murphy's law" to kick in , I'm sure there are plans B, C, D, E ect.... as well

[julianer]

30. Yep, they are clearing their throats

and clouding the issues. Sure signs.

[hang a left]

36. thanks. That was helpful.

[newyawker99]

42. Hi PVK!!

Welcome to DU!! :toast:

[applegrove]

15. Don't know. Here are some ideas that come to mind:

So many people are out of work, starting their own businesses, working for less - all the while prices of civil goods have gone down, and all the spending by Bush is in a war on another continent, that deflation is a possibility.

Instead of just dumping money into the economy - they could increase social programs and direct that money at the needy. But Bush WH would never do that.

That is one theory.

The other is they are afraid of a housing bubble burst or a stock market slide.

Also too - China is getting richer by the day. So too India & Brazil, Venezuela, etc. And all these countries use the US currency as the international currency. Why bush can go into so much debt. If the world is permanently going to store US dollars - US may be printing to increase the supply to fix that very need.

Could also be that they want to lower the value of the dollar so that the bleeding of jobs stops. Or slows down cause they see too much unemployment for next year - the 2006 elections.

Don't know really.

[fooj]

17. Hurrican Katrina wiped out billions in revenue...

No sign that it effected the stock market in the least.
They can't print it fast enough, can they?

Peace.

[applegrove]

18. Because economies of China, Brazil, India & Russia in 40 years

will be 10 times bigger than the combined economies of the West are now. So they are growing and storing some wealth in US dollars. So that allows US to carry more debt.

Could be the US will forever be able to hold more debt than any other nation on the planet. If that is the case, all these tax cuts to the rich was the biggest transfer of wealth to the rich - the USA has ever seen.

That ability to hold debt - could have gone to science & technology in schools. Or a kick ass health care programs that keeps costs down and Americans healthy at a lesser cost. Could have paid down the social security deficit.

They had a choice. They made it. Handed the money to the elites.

[ProfessorGAC]

24. 10x? Where Did You Get That Number?

Seems awfully exaggerated.
The Professor

[applegrove]

51. Well - there will be 1.5 Billion Westerners and 4 or 5 Billion of the

BRIC. Cannot remember where exactly. Will have to do a search. But just think: those 5 billion will all link to each other, the rest of the world (another 3 billion) and the West in a matrix. And they have the cheaper workforce. And they are producing all the civil goods. Look at the number of Chinese container that are just dumped beside the tracks of any port city. The Chinese send stuff over by ship and cannot even get home the metal containers that would be worth a thousand at least.

Part of this is planning - that when oil goes to $200 a barrel the US wants to be focussed on intellectual property law business (where you just send the patent over and get a fee, or you send software over, science & tech).

I did get it from a book. Untill they get middle class life all around - their populations will still be growing while in lots of the west - birth rates will stagnant. Japan's is negative right now. And in the west - just like Japan, the population is ageing. Fewer workers.

Growth is exponential. The bigger you are the bigger your comparative advantage. The bigger you get. China, India & Russia will be surrounded by neighbours who have populations the size of the USA today: Indonesia, Pakistan, Bangladesh.

I'll look it up. Try and find the source. But it makes sense to me.

Not saying I am looking forward to it - change is harsh. But I do look forward to Africans getting into the trade game. I have to say that.

[Name removed]

23. Deleted message

Message removed by moderator. Click here to review the message board rules.

[CrazyOrangeCat]

25. Yep . . .

. . . the world-leader in slave labor is poised to run the show.

Meanwhile, Bushco is happy to keep bombing the hell out of people with brown skin.

Welcome to DU, BTW!

:hi:

[Flavin]

34. I'm watching the other bubble.....

>The other is they are afraid of a housing bubble burst or a stock >market slide.

Over the last couple of years I've been plagued by a nagging question as I watch the ever expandind suburban sprawl here in the midwest. Too many new strip malls, big box stores, small box stores, fast food places, and gargantuan houses. Where is this money coming from, and where's the money to support this new merchantile outlets going to come from? As a country our savings rate is practically non-existant for a majority of the population.

The Question is: Is there enough money to continue this kind of sprawling merchantile expansion? Is there enough money to buy all the trinkets neccessary to keep all this places open? True this expansion is accompanied by a decline in activity in the older city cores, but not enough in my view top balance the expansion.

I think the next bubble is simply.... Income versus the amount of $s needed to support the economy. Period.


Flavin

[RazzleDazzle]

44. That's my own line of thinking too

I know in my heart and gut that this economy is on stilts. The erosion of jobs, the decimation of the middle class, the shift of tax burden away from the top and erosion in services, the economic impact of Katrina and Rita, on and on...

Yet they just keep building these things and expanding, don't they? Doesn't make sense to me. Apparently, the economy is staying afloat in such a way that makes all that further expansion possible or even viable -- for now (the fast food restaurants, the malls and such). I just don't believe it can STAY viable.

But just think of this: even with the incredible erosion striking at the very foundations of our economy, it's still perking along so that a lot of people (esp. those in Washington, D.C.) don't even realize there are any problems. The resilience I'm seeing, despite all this, is amazing to me. Just think what good could have been done -- e.g., how many people could have left poverty (instead of fallen into it) --if we'd been pursuing sustainable economic practices over the last 5 or more years.

[FloridaPat]

53. A lot of people still have savings, 401K's, and more credit on the cards

to spend. It take it they want every last drop from the middle class. Refinance all those overpriced homes. The baby boomers are starting to retire opening up all those pensions and retirement plans. Lots of money there. Got to get them to spend it. And the repubs and congress will go riding off into the sunset rich as possible.

[Sentath]

45. Saving Rate

"As a country our savings rate is practically non-existant for a majority of the population. "

Correction, recently its been NEGATIVE.

[applegrove]

52. And when the price of oil rises to an extreme - do the big box stores

close down?

[Neil Lisst]

19. God only knows what Bushco is up to with the new Fed Chair.

But it ain't pretty.

I suspect the author of the piece is on the right track, however. China has announced it will cut back on the purchase of US dollars, and that will impact the deficit, and therefore the debt service the US will pay on its debt. That means fewer dollars for other spending.

Everything Bushco does is a shell and pea game. They're street hustlers playing 3 card Monte.

[bobthedrummer]

29. Today it is being reported that China has a $101.9b surplus

[librechik]

31. They quit reporting the ME about 60 days ago

hang on to your wheelbarrows--you're going to need them to carry the dollars you'll need to buy a loaf of bread.

Argentina, here we come!

[Roland99]

32. I think they're fluffing the GDP numbers, too.

Although, doesn't really take a genius to figure that one out.

[FloridaPat]

60. GDP also includes military spending. Those invasions help

the economy. At least on paper.

[justabob]

33. I am having a visceral response to this though I know next to nothing

about economics. Key words jump out at me... high risk... no palatable justification...main staple... since 1913... hidden....economic war

[SmokingJacket]

49. Me too.

Things feel incredibly shaky and unsustainable, and there is the real sense that the gvmnt is doing things behind the scenes... think this post is among the most significant I've read in a while.

[linazelle]

35. And the Today Show is touting the stock market climb to over 11k

for the first time since September 11th. I knew there was something fishy about that--couldn't figure out what would cause a rally--and here it is.

[Eurobabe]

41. such utter BS, the Dow.

the housing bubble is leaking too.

Thank god the Euro is climbing, my hubby gets a raise everyday. I cannot wait to get out of here and to a land mass of sanity.

[FloridaPat]

37. Here's a link: another $93 billion the last 2 weeks!

http://safehaven.com/article-4403.htm

"M-3 has been launched into outer space, up another $56.3 billion last week, up $92.4 billion over the past two. This is some real horsepower. Over six weeks, the meaningless figure, ahem, is up $177.8 billion. These annualized growth rates are 28.7 percent, 23.6 percent, and 15.3 percent respectively. Those are the seasonally adjusted figures. The raw, non-seasonally adjusted, figure is up $293.3 billion over the past 12 weeks, on a pace to add 1.2 trillion in money to the economy. Wow. There must be a need for this. Maybe the master Planners see a coming need to monetize our debt? To support markets? They tell us the economy is good, so clearly they cannot be stimulating our way out of a recession. There's a lot of money flooding the economy and it has to go somewhere. Right now it is lifting markets."

[Clara T]

38. This is extremely pertinent

What if Iran goes through with its threat to sell oil for Euros instead of U.S. Dollars? Well, then Dollars won't help you much if you want to buy oil from Iran. So, you sell the Dollars you are holding for Euros. Whenever anything is sold en masse, its value drops. This means less demand for Dollars, which means the Fed will not be able to print excessive amounts of Dollars without further driving down the Dollar's value. There would simply be too much supply. Right now, the Fed can print all the Dollars they want because the demand for Dollars has been on the rise, especially as the cost of oil has risen. In other words, lately it has taken more Dollars to buy oil, so the demand for Dollars has been up. Again, this extra demand has allowed the Fed to print all it feels like with little consequent damage to the Dollar.

However, if the Dollar were to tank - and the Iran oil Bourse should push the Dollar in that direction - it puts pressure on Treasury Bonds and other U.S. financial assets to fall as well, since they are denominated in a declining-value currency. In this event, the Fed would have to step up its buying of U.S. financial assets to lend support to these asset prices - to stabilize U.S. markets. In other words, the Fed would have to monetize the U.S. Treasury's debt, and also monetize equity markets (be the buyer that keeps prices from falling). This would take so much fresh money that the Fed would need to create it in secret.

http://safehaven.com/article-4403.htm

Petrodollar Warfare:

Concerning Iran, recent articles have revealed active Pentagon planning for operations against its suspected nuclear facilities. While the publicly stated reasons for any such overt action will be premised as a consequence of Iran's nuclear ambitions, there are again unspoken macroeconomic drivers underlying the second stage of petrodollar warfare – Iran's upcoming oil bourse. (The word bourse refers to a stock exchange for securities trading, and is derived from the French stock exchange in Paris, the Federation Internationale des Bourses de Valeurs.)

In essence, Iran is about to commit a far greater “offense” than Saddam Hussein's conversion to the euro for Iraq’s oil exports in the fall of 2000. Beginning in March 2006, the Tehran government has plans to begin competing with New York's NYMEX and London's IPE with respect to international oil trades – using a euro-based international oil-trading mechanism.<7>

The proposed Iranian oil bourse signifies that without some sort of US intervention, the euro is going to establish a firm foothold in the international oil trade. Given U.S. debt levels and the stated neoconservative project of U.S. global domination, Tehran’s objective constitutes an obvious encroachment on dollar supremacy in the crucial international oil market.

<snip>

Despite the complete absence of coverage from the five U.S. corporate media conglomerates, these foreign news stories suggest one of the Federal Reserve’s nightmares may begin to unfold in the spring of 2006, when it appears that international buyers will have a choice of buying a barrel of oil for $60 dollars on the NYMEX and IPE - or purchase a barrel of oil for €45 - €50 euros via the Iranian Bourse. This assumes the euro maintains its current 20-25% appreciated value relative to the dollar – and assumes that some sort of US "intervention" is not launched against Iran.

http://www.energybulletin.net/7707.html

[progressivebydesign]

39. Is it the rumours that China will sell off OUR dollars????

Is it the fact that Bush has fucking mortgaged our country to a communist country??? I keep telling people, and they won't listen. America is owned by a communist country. If China called in our debts.. or started selling off our dollars, we'd be fucked. We had a surplus, and now we owe our souls to China. I thought republicans hated communism?

[Clara T]

48. US Treasury bonds

are purportedly being pressured and many overseas investors will dump these if the dollar crumples.

There is, though imperceptible from the belly of the beast, a (semi) worldwide boycott of US goods (since 2002) which is taking a slow toll on US currency. This is not a major factor but another part of why the dollar is needing to be propped. The investor class will do everything to keep all this in the shadows so as their investments, which they can shift around at will (somewhat), don't get too soiled. Meanwhile back in the USSA the peasants get out the wheelbarrows...

[sarcasmo]

65. Repukes love only one thing, MONEY.

[earth mom]

46. K & R! eom

[cascadiance]

47. Perhaps they took out a supply of "super dollars"?

The super dollars that have been coming from North Korea, through Russia, through Ireland, through the U.K. have been throwing tons of almost undetectable counterfit American currency onto the market. That is what lead to the newer currency being issued to replace the older, so that it is harder now to counterfit the way it had been with that big scheme. Perhaps they've gotten to the bottom of the big supply of these counterfit dollars and are reissuing legitimate dollars to replace them with or something like that.

Kind of interesting coincidence this morning that Kim Juong Ill (sp?) is reported "missing" from his normal locations this morning too on Rachel Maddow...

[Clara T]

59. Every picture

[bobthedrummer]

50. kick

[EuroObserver]

55. Hup!

[Clara T]

57. This is an important aspect of the dollar devaluation

China’s Stranglehold on the Dollar
by Mike Whitney

“It's the death blow to the US dollar,” said Peter Grandich, editor of the Grandich Letter.
On Thursday, The People’s Republic of China fired off the first volley in what could turn out to be economic Armageddon. China announced that it would begin to diversify its foreign-exchange reserves away from US dollar.

The only thing keeping the dollar atop its fragile perch is the fact that other countries have been willing to lap up the $600 billion of American red ink every year via the trade deficit. That amounts to roughly $2 billion per day or nearly 7% GDP.

Currently, China is holding $769 billion, the vast majority of its foreign exchange reserves. This is a humongous sum by any measurement and represents approximately 30% of China’s gross domestic product. Regrettably, the Bush administration’s wasteful spending makes the dollar look like a bad long term investment, so China will either have to change its strategy or face a huge loss on its reserves. It’s a thorny predicament and one that China needs to handle delicately. If they move too aggressively it could trigger a sell-off and send the dollar plummeting.


Gold futures already jumped 4% in one week as large institutional buyers are voting with their feet that the dollar is headed for the dumpster. In fact, since Bush took office, gold has gone from the $200 range to $540 on Friday; a sure sign that investors have lost confidence in Washington’s ability to curb spending.
The Federal Reserve had anticipated China’s action for some time. That’s why the Board of Governors of the Federal Reserve announced earlier this year that they would cease to publish the M3 monetary aggregate (including the following components: large-denomination time deposits, repurchase agreements, and Eurodollars.) That way the Fed can print enough money to absorb the shock waves of a massive sell-off without the nosy public knowing what’s going on. It’s a clever ruse, and an effective way of bilking the American people out of their hard-earned savings while the dollar continues to burrow into its earthen grave.

http://www.altpr.org/modules.php?op=modload&name=News&file=article&sid=572&mode=thread&order=0&thold=0

[bobthedrummer]

62. kick

[Clara T]

66. kick for info

http://www.apfn.org/apfn/fed_reserve.htm

[stop the bleeding]

67. this needs more exploring n/t

[Clara T]

69. The dollar may fall this March

The dollar may fall this March
01/14/2006 16:41

America's foreign debt currently standing at $8,184 trillion will hit the debt ceiling as early as February-March 2006

The United States is heading to financial crisis at top speed. That is correct, America will default on its foreign debt sooner or later if the actual trends remain unchanged. Consequently, the whole dollar-based world (including savings in U.S. currency) may crumble. In actuality, the public have grown tired of numerous forecasts regarding an imminent collapse of the U.S. economy. The picture looks pretty grim this time around. Several factors will have an extremely detrimental effect on the dollar, according to U.S. Secretary of the Treasury John Snow who forwarded a letter full of ominous predictions to 21 members of U.S. Congress. The letter was made public after the markets had been closed for Christmas and New Year's holidays - a rather appropriate precautionary move in terms of the international foreign exchange market, which is extremely sensitive to any sound produced by U.S. bureaucrats. 

In his letter, Snow predicts a crisis in February this year. Citing U.S. government forecasts, Snow believes that America's foreign debt currently standing at $8,184 trillion will hit the debt ceiling as early as February-March 2006. For decades the White House has been borrowing money to cover expenditures that exceeded the real economic growth rates. As a result, the U.S. public debt currently totals to $8.1 trillion, a huge figure compared to the U.S. GDP that is slightly above $11 trillion.

U.S. Congress sets a debt ceiling which U.S. government must not exceed in borrowing. Exceeding the ceiling brings about the so-called technical default i.e. U.S. fails to pay its foreign debt in full at the right time. However, the government has been continuously raising the foreign debt limits over the last 50 years.  
The United States has been on the verge of default for several times in the past. The recent pre-crisis situations occurred in 2002 and 2003. In the former case (the war in Afghanistan started in 2002), the then Secretary of the Treasury Paul O'Neil demanded to increase the limits a mere 10 days before the estimated expiry of foreign debt ceiling (about $6 trillion at the time). President George W. Bush had to step in to resolve the situation. The new Secretary of the Treasury John Snow raised the issue again in 2003, the year of U.S.-led invasion to Iraq.

The situation looks the same these days. An additional minimum amount of $171 billion in foreign loans over the limit is required to satisfy the needs of the U.S. economy (though growth rates are far from being spectacular), otherwise the U.S. will face the first foreign debt default in its history.

http://english.pravda.ru/world/20/91/368/16741_dollar.html

[oregonindy]

68. Hyperinflation? watch gold and silver. Oh yeah a nice site for tracking

things..

www.urbansurvival.com

[kittykitty]

70. kick

[Clara T]

72. Who Owns the Fed?

The FED began with approximately 300 people or banks that became owners (stockholders purchasing stock at $100 per share - the stock is not publicly traded) in the Federal Reserve Banking System. They make up an international banking cartel of wealth beyond comparison (Reference 1, 14). The FED banking system collects billions of dollars (Reference 8, 17) in interest annually and distributes the profits to its shareholders. The Congress illegally gave the FED the right to print money (through the Treasury) at no interest to the FED. The FED creates money from nothing, and loans it back to us through banks, and charges interest on our currency. The FED also buys Government debt with money printed on a printing press and charges U.S. taxpayers interest. Many Congressmen and Presidents say this is fraud (Reference 1,2,3,5,17).

Who actually owns the Federal Reserve Central Banks? The ownership of the 12 Central banks, a very well kept secret, has been revealed:

Rothschild Bank of London Warburg Bank of Hamburg Rothschild Bank of Berlin Lehman Brothers of New York Lazard Brothers of Paris Kuhn Loeb Bank of New York Israel Moses Seif Banks of Italy Goldman, Sachs of New York Warburg Bank of Amsterdam Chase Manhattan Bank of New York (Reference 14, P. 13, Reference 12, P. 152)

These bankers are connected to London Banking Houses which ultimately control the FED. When England lost the Revolutionary War with America (our forefathers were fighting their own government), they planned to control us by controlling our banking system, the printing of our money, and our debt (Reference 4, 22).
The individuals listed below owned banks which in turn owned shares in the FED. The banks listed below have significant control over the New York FED District, which controls the other 11 FED Districts. These banks also are partly foreign owned and control the New York FED District Bank. (Reference 22)

http://www.apfn.org/apfn/fed_reserve.htm