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| Uh, The "R" Word Was Just Used in forum [Market-Ticker]
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Macneib
Posts: 3956
Incept: 2008-01-19
Seoul. What a ****hole
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Gen, I wonder if you could offer comment on this post from Zerohedge. http://www.zerohedge.com/article/chartin....Quote:
The long-end of the curve has recently suffered a major whammy: first, contrary to expectations, the FRBNY announced that it would do just 6% of the total buybacks in the 10-17/17-30 Year area; and second, the overall size of the announced monthly monetizations ($75 billion excluding MBS reinvestments) ended up being far less than the $100 billion hoped for (again excluding reinvestments), although the market has conveniently so far ignored this major surprise. Yet what is interesting is that despite the presumed disappointment focusing on the long-end of the curve, the chart below from Morgan Stanley shows just why the long-end is about to experience a fresh surge in buying interest, undoing all the positive work the Fed has done on behalf of the banks by steepening the curve, and leading to yet more flattening. Another observation is that, as we have said many time before, the Fed's existing plan leaves just under $250 billion in the form of a demand gap that has to be closed by foreign central banks - and once QE 2.1 or greater is announced, America's will become completely independent of foreign monetary retaliation: even if foreigners go on strike, and like US stock investors, refuse to touch the market, the Fed will still monetize every single cent of deficit spend funding. In one brilliant stroke, Bernanke made America completely impervious to international retaliation.
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The worst thing about crossing a line is when you don’t know, you already have.
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Genesis
Posts: 131440
Incept: 2007-06-26
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Sure - I have already said that this was the effect - the denuding of the essential purpose of a Treasury market.
The problem is that such denuding is not without consequence, and the cure is much worse than the disease.
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I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
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Statusquojoe
Posts: 2784
Incept: 2008-11-20
Land of the fees Home of the slaves.
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That is a really succinct article. Thanks for highlighting it.
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There are so many rules no one knows which rules to follow. The only sure rule is more rules will follow. SQJ.
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Sangell
Posts: 379
Incept: 2009-08-16
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Well the writer answered one question I had had. Bernanke can't be impeached. I do wonder though if a member of Congress could not go to a Federal judge and get what I believe is called a 'writ of mandamus' which requires a Federal official, in this case Eric Holder, to carry out the law.
We have Hoenig saying Bernanke has 'monetized' the our debt and we have Ben saying, under oath, he would do no such thing. There is a DC Appeals Court judge I recall from the Clinton special prosecutor days who was not afraid to box the Executives ears. Think his name was Pearson but I'm not sure. Now if there is a Congressman, just one, who would go to court to get Bernanke indicted for perjury we may have some way to get rid of him.
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Genesis
Posts: 131440
Incept: 2007-06-26
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Sangell, they can effectively remove him. Formal impeachment has never been tried and it's not at all clear whether he can be impeached or not. That would definitely wind up in court. There's nothing in the FRA that prohibits it, and as a Presidential appointee with Senate Confirmation, I bet it stands if they attempt it.
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I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
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Itsalessandro
Posts: 32
Incept: 2008-10-02
California
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The reason why public protest hardly happens in the United States is that we have an amazing infrastructure that has been built up over the past 100 years, (sewage, power grid, universal roads, telephone lines, gas lines, running water). Even when unacceptable theft occurs, the protestors still risk losing a lot. The second issued to consider is, people who are so riled up rarely agree on ENOUGH issues to actually coalesce and fight back. Having said, I still think Barack Obama has committed impeachable acts involving HAMP and the Federal Hobbs Act, the extortion clause. Sending letters to the FBI and the attorneys general of all 50 states may actually carry some weight if enough people agree on what the violation actually is. http://parallelforeclosure.blogspot.com/.... |
Djloche
Posts: 3342
Incept: 2008-07-07
In the Mountains
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and remember, we want to remove him and nueter the FR back to it's original FRA, not immortalize him.
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"Just because the **** has not yet hit you in the face, does not mean that the **** has not hit the fan."
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Tesla
Posts: 15560
Incept: 2008-04-03
State of Disbelief
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"Even a dog knows the difference between being stumbled over and being kicked." -Justice Oliver Wendell Holmes
"Neither the wisest Constitution nor the wisest laws will secure the liberty and happiness of a people whose manners are universally corrupt." -Samuel Adams
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Mscreant
Posts: 82
Incept: 2009-02-22
State of Anomie
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Couldn't Obama pull him out of there with good reasons?
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Sangell
Posts: 379
Incept: 2009-08-16
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Well, the problem with impeachment, besides the legality of it, is that it is a political trial. Got to pass both Houses of Congress and, I believe you need a supermajority in the House. Unless both parties are willing, which they are not, it won't succeed.
OTOH, getting a Federal judge to ORDER Eric Holder to indict Bernanke would leave Bernanke little choice but to resign. Neither party would be willing to defend an indicted perjurer. Does't mean we wouldn't get another Keynesian Klown,( didn't know the Fed got to pick the candidates) but you can bet the next Fed Chairman would not do QE.
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Sangell
Posts: 379
Incept: 2009-08-16
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Mscreant I dare say if Obama demanded Bernankes resignation he would get it but there is no chance of that. Bernanke's QE is manna from, if more from hell than heaven, that allows Obama to keep on spending without worrying about the deficit. Obama is delighted by Bernanke's recklessness.
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Vegasradar
Posts: 8721
Incept: 2007-07-11
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****
—I don't want a Revolution
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Be the change you want to see in the world. ~Mahatma Gandhi
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Economic4caster
Posts: 121
Incept: 2008-12-10
In the fetal position!
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I don't think you could get Ben on perjury because he testified before the fact. He could simply say he had no intention of monetizing at the time of his testimony. I don't think anyone in Congress will do a dam thing until the people wake up and demand it. By that time it will be too late!
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Captainkidd
Posts: 594
Incept: 2010-05-25
Pasadena, Texas
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Quote:There's nothing in the FRA that prohibits it, and as a Presidential appointee with Senate Confirmation, I bet it stands if they attempt it. Don't Presidential Appointees serve at the pleasure of the President? Isn't it within the President's authority to remove him at his time of choice?
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A lawyer with a briefcase can steal more than a thousand men with guns. --Mario Puzo
It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. -- Henry Ford
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Raaction
Posts: 400
Incept: 2008-02-06
N.W. Arizona
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In essence if the Fed is monetizing the debt aren't they effectively buying it? And if they are buying the debt and indeed are more private than public then why can't the U.S. refuse payment of said debt, refute it, say to them if we (the taxpayer) owe you $1 million it's my problem but we owe you how many trillion so that makes it your problem. And while I know that treasuries are a worldwide market, if the Fed is jeopardizing the sovereignty of this nation isn't there something that can be done to put them in their place. Or are they so powerful now that this is their place.
Think about it, if someone had the nuts to nullify the actions of the Fed, I am quite sure it would not take too very long to see who the real power brokers are, eh? They would come crawling out of the woodwork to protect what they feel is rightfully theirs.
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Why do I have to reap the whirlwind along side those that called down the thunder? -silverdeth
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Vegasradar
Posts: 8721
Incept: 2007-07-11
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Raaction, we can but it is the EFFECTS of them doing it in the first place that we must get through
if the monetize- we have inflation and possibly amplifed-inflation
if we default on the debt- we get hyperinflation
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Be the change you want to see in the world. ~Mahatma Gandhi
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Uwe
Posts: 6575
Incept: 2009-01-03
19446
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Quote:if we default on the debt- we get hyperinflation Huh? if the US Treasury were to default on all if it's obligations, it seems to me this would kill almost every bank on the planet. At least in the short term, should result in massive deflation, as the only readily available money would be physical currency, and there's not very much of that. -Uwe-
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“Whenever the legislators endeavor to take away and destroy the property of the people, or to reduce them to slavery under arbitrary power, they put themselves into a state of war with the people, who are thereupon absolved from any further obedience.” - John Locke
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Thystra
Posts: 571
Incept: 2009-07-12
Around the World
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It may or may not be possible for Bernanke to be impeached/removed. It is possible for Congress to revoke the charter of the Fed, and solve the problem that way. Just depends where you want to go with it.
Of course, if you go that route, you have to figure out how the payments/check system and other interbank clearing functions will work, or if by revoking the charter you nationalize the bank and continue the operations as normal.
There's a concept. Can the Fed be seized by the FDIC (or other regulatory body)?
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Photobee
Posts: 6112
Incept: 2007-07-07
Cape Cod
Banned
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All you need to know right here..
"I believe that banking institutions are more dangerous to our liberties than standing armies . . . If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] . . . will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered . . . The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."
—Thomas Jefferson, The debate over the recharter of The Bank Bill, (1809)
They fought! They lost everything and many lost their lives. And we can't even protest because the sewers might back up?
You're going to lose your nation and your freedom and your sewer is going to back up no matter if you do nothing.
Time for talk and letters and discussion is over.
Words are wasted now.
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God didn't make all men equal, Col. Colt did.
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Rich_lather
Posts: 64
Incept: 2008-04-23
Tallahassee
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Want of a common judge with authority, puts all men in a state of nature: force without right, upon a man's person, makes a state of war, both where there is, and is not, a common judge.
--John Locke
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Jeffrey_thomason
Posts: 7124
Incept: 2009-03-11
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Quote:There's a concept. Can the Fed be seized by the FDIC (or other regulatory body)? I believe the US Government, and this administration in particular, have shown there are no qualms about seizing private enterprises (which the Fed as been established as being) for "the good of the country".
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"Until we look beyond the throne where the power structure lies, we'll fight amongst ourselves as freedom dies. The only hope for human kind lies in solidarity. The strength in our numbers sets us free."
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Photobee
Posts: 6112
Incept: 2007-07-07
Cape Cod
Banned
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Am wondering this...perhaps the Fed can't be brought down...but I bet the member banks that own them could or if not that the commercial banks they sleep with.
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God didn't make all men equal, Col. Colt did.
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Drench
Posts: 28631
Incept: 2009-11-10
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Written by a third-year law student at George Mason.
There's hope.
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Idoc
Posts: 178
Incept: 2007-11-12
sb
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Karl,
u are the man dude! u are kicking Bernankes ass royal! LOL!
ur message is resonating and others are climbing on board.
way to go. u are a patriot my friend.
he is the focal point and we will break him.
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