Enemy of the banks Andrew Jackson gone from the $20 bill, Replaced by Harriet Tubman, Friend of the banks Hamiliton remains on the $10 bill

We think Harriet Tubman isn’t such a bad choice. However, removing Andrew Jackson from the currency is a shame. He killed the first central bank of the United States, The Bank of the United States, and that is something for which every American should be grateful. He is in addition the only president who with the help of allies paid off the national debt.

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China Vice Finance Minister: Mainland eyes boost from ‘superpower’ Federal Reserve

China continues to shudder and it appears to be increasingly fearful. With the Saudis rattling their debt sabers, Europe looking at another summer of crisis (of various kinds), and just a general sense of instability in world economy and geopolitics, China hopes that the Fed will take the Red Dragon “into consideration.”

There is no doubt that China will be and is considered as Minister Zhu knows very well.

I’d love to know what the minister knows about the real Chinese economy.

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Bernanke’s New Helicopter Money Plan——Sheer Destructive Lunacy

Uh oh. Here comes the Federal Reserve to “save” us.

(From David Stockman’s Contra Corner)

If you don’t think the current central bank driven economic and financial bubble is going to end badly, recall a crucial historical fact. To wit, the worldwide race of central banks to the zero bound and NIRP and their $10 trillion bond-buying spree during the last seven years was the brain child of Ben S Bernanke.

He’s the one who falsely insisted that Great Depression 2.0 was just around the corner in September 2008.

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Obama ‘pleased’ with Fed’s Yellen: White House

Obama and Raul Castro hanging out.

So what if he’s “pleased“? The Fed is supposed to be independent. This is not the type of language which the president should be using with regard to our central bank. That the Fed is “independent” of political pressures is the whole (false) argument against auditing the Fed.

Click here for the brief article.

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How are millions still underwater as home prices rise? (Thank the Federal Reserve)

During the Crash the Fed should have let things fall. It would have been painful. Very painful for some. But the market would have cleared. Some people would have picked up deals and many people would be in houses now, even many who would have hurt in 2008/2009, with positive equity.

Instead the Fed intervened and tried to put a bottom under house prices. As such we have the situation we have now. Millions of homeowners still underwater and a much less mobile workforce.

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A Desperate China Begged Fed For “Plunge Protection Playbook” As Its Market Crashed

Back when the market was a market.

We are in the midst of a giant, and unprecedented experiment in monetary policy. Central banks around the world have inflated asset prices in an effort to create a “wealth effect.” What they have created is a situation where those with assets, the rich, have done extremely well while the non-asseted have had to watch while life has gotten harder.

This asset inflation is not sound however and the “wealth” it has created is illusory.

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Yellen Defends Fed as ‘Non-Partisan’ Over Campaign Contributions (79% of contributions went to Democrats)

Oh come’on. The Federal Reserve, which insists that it is above an audit,  which insists that it must operate in secret, which regularly refuses to comply with requests for information on its operations from Congress, should operate in a way which removes any and all perceptions of partisanship. I mean there should be none.

If the bank is to operate the way it does, with the extraordinary privileges that it has, it must adhere to an extraordinary standard of fairness.

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Central banks’ ‘forward guidance’ proving a tricky policy tool

“I see higher rates in your future. Or maybe lower rates…Or maybe they will stay the same… I am cautiously optimistic with a negative bias…”

Everything about central banks is “tricky.” This is good to keep in mind always when considering monetary policy. Tricky.

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The Fed caused 93% of the entire stock market’s move since 2008: Analysis

So in other words 7% of the market’s upside since 2008 is real. (I’ll bet even that is generous.) This should concern anyone who thinks that economics is more than smoke, mirrors, and animal spirits.

The economist who did this speaks of a tech bubble, housing bubble, and now Fed bubble. But it is really Fed bubble 1, 2, and 3.

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