The Federal Reserve just grows and grows. Born in 1913, 100 years later it sits atop world finance the unrivaled master of what it surveys. And the master likes to know whats going on in his kingdom.
The 0% interest rates of the past 5 years have made the wealthiest people in America and the world much wealthier. At least in (fiat) dollar terms.
This in an interesting take on why Reid moved when he did. From one of the best connected people in politics, Ron Paul. (He does have a son in the Senate.)
This isn’t a surprise. There is no way she would have been considered for the top job at the Fed had she been for an audit.
But we must keep the pressure on and we are thankful that Senator Vitter raised the issue.
I was just at a conference in Downtown Manhattan and things are good there. My hotel (which thankfully I didn’t have to pay for) was modest but cost a sum far beyond what one might pay for a comparable room in another large city in the US. A beer pushed 11 bucks. Everything was more expensive because the money printed by the Fed practically spilled out onto the street around the part of town I was staying in.
The further one gets from the Federal Reserve spigot however, the more austere the world gets. Remember, each dollar printed by the Fed reaches the guys in New York and DC first – while prices are relatively cheap. By the time these debauched dollars reach the rest of the country prices are rising and the dollar buys less.
When Ron Paul called for ending the Fed, this is one of the chief reasons why.
Many people are mystified by the kids at the Ron Paul rallies screaming “End the Fed!”
They ask themselves, “Why should we end the Federal Reserve? The Fed helps maintain economic stability right? Every country has to have a central bank. These “End the Fed” kids are nothing but “Paulbots.” The people on CNBC and Bloomberg tell me that the Fed acts in my best interest. I think the people on Bloomberg and CNBC ought to know what’s right for me and my money. Harry Reid is right. Those hard money people and kids at the Ron Paul speeches are nothing but a bunch of anarchists!”
But the main reason many people feel this way is because they fundamentally don’t understand what the “End the Fed” people are really saying and why they are saying it.
It appears that PIMCO, the world’s largest bond fund may have benefited (it appears legally) by virtue of its close relationship with the Federal Reserve. Moves by the Fed appear to have been broadcast to the investment firm and as such PIMCO was able to get in very early and to buy up a piles of mortgage backed securities (MBS) just before the Fed announced that it would start buying piles of mortgage backed securities.
And by poorly managed banks we mean pretty much every big bank on the planet. For instance we now know that nearly half a trillion from the United States Federal Reserve was GIVEN to foreign banks. Given to them. Not even loaned at a penalty rate. Just given. How many people lost their homes now? But half a trillion was just handed to banks which aren’t even nominally “American.”
They are not really liberals. We are liberals at this site. Liberals are for free minds, and free markets, and new ideas, and innovation. Ms. Warren and Mr. Sanders are not for any of these things. But that’s a fight for another day.
These 2 apparently don’t like the idea that Larry Summers is being considered for Fed chief. On this we agree, Larry Summers should be put out to pasture and his vulgar jockeying for the second (at times the first) most powerful political position in the world is–lets just say–tacky.
For the record that is our pick too. Interest rates are the most important prices in the economy and they should not be determined by a banking politburo. Markets should set rates, and the economy would be much healthier for it.