BOB CHAPMAN ~ Big Shrinkages In Economy Thwarts All Efforts To Fix It

peaceandlove · 05-27-2009, 04:50 AM

Big Shrinkages In Economy Thwarts All Efforts To Fix It

Posted: May 23 2009

no end to the demands of privileged borrowers, no recovery without investment, the system teeters on insolvency, revenues plunge as the deficit rises, more felony charges on Wall Street, lack of new investment will kill new infrastructure, subprime loans are done

US Treasuries and gold have waged a silent fight for dominance in investors’ flight to safety over the past 22 months. Gold has been suppressed over that period by manipulation by the President’s “Working Group on Financial Markets,” via the US Treasury and the privately owned Federal Reserve. In spite of this ongoing intervention into what are supposed to be free markets gold has held its own.

Since the beginning of the year when the 10-year Treasury note yielded 2.35% it has steadily lost ground. It recently rose to 3.36% and is currently at 3.27%. That is a lot of ground lost in spite of manipulation of that market by the Federal Reserve. The Fed’s efforts have been hindered by an enormous amount of debt issued by the Treasury in order to meet funding operations as well as to assist in funding commercial banks’ balance sheets. This is our Treasury taking funds from responsible Americans to finance and subsidize those in the financial world who turned our financial system into a vast gambling casino. In the process the Treasury and the Fed have crowed out commercial investment, which has led our economy into depression. You cannot have recovery without investment.

Continues: http://www.theinternationalforecaste...orts_To_Fix_It

SOURCE: http://www.gcnlive.com/

peaceandlove · 05-27-2009, 07:20 AM

The Fed's next task: combating runaway prices

As the recession eases, expanded lending could stoke '70's-style inflation

By Annys Shin
WashingtonPost.com
updated 7:12 a.m. ET, Tues., May 26, 2009

As if the worst recession since World War II, the near collapse of the financial system, and the prospect of double-digit unemployment weren't enough to deal with, the Federal Reserve now has something else to worry about: success.

Lately, a steady stream of economic data has suggested that while the economy is still shrinking, the pace of the decline is slowing. That, in turn, has stoked fears that the Fed's efforts to steer the economy away from a 1930s-era depression would push the country toward '70s-style inflation.

Those fears center on the Fed's unprecedented efforts to revive the economy by creating more than $1 trillion in new money. Determining the best time to withdraw that money is a classic quandary for central bankers. The challenge of timing is even more daunting than usual this time because the Fed has become so integral to shoring up the financial system. As Fed leaders ponder their next move, analysts say they may have to choose between propping up credit markets today and fighting inflation tomorrow.

Continues and comments: http://www.campaignforliberty.com/wire.php?view=5466

05-27-2009, 04:50 AM	#1
peaceandlove Avalon Senior Member Join Date: Sep 2008 Location: Turtle Island Posts: 2,776	BOB CHAPMAN ~ Big Shrinkages In Economy Thwarts All Efforts To Fix It Big Shrinkages In Economy Thwarts All Efforts To Fix It Posted: May 23 2009 no end to the demands of privileged borrowers, no recovery without investment, the system teeters on insolvency, revenues plunge as the deficit rises, more felony charges on Wall Street, lack of new investment will kill new infrastructure, subprime loans are done US Treasuries and gold have waged a silent fight for dominance in investors’ flight to safety over the past 22 months. Gold has been suppressed over that period by manipulation by the President’s “Working Group on Financial Markets,” via the US Treasury and the privately owned Federal Reserve. In spite of this ongoing intervention into what are supposed to be free markets gold has held its own. Since the beginning of the year when the 10-year Treasury note yielded 2.35% it has steadily lost ground. It recently rose to 3.36% and is currently at 3.27%. That is a lot of ground lost in spite of manipulation of that market by the Federal Reserve. The Fed’s efforts have been hindered by an enormous amount of debt issued by the Treasury in order to meet funding operations as well as to assist in funding commercial banks’ balance sheets. This is our Treasury taking funds from responsible Americans to finance and subsidize those in the financial world who turned our financial system into a vast gambling casino. In the process the Treasury and the Fed have crowed out commercial investment, which has led our economy into depression. You cannot have recovery without investment. Continues: http://www.theinternationalforecaste...orts_To_Fix_It SOURCE: http://www.gcnlive.com/

05-27-2009, 07:20 AM	#2
peaceandlove Avalon Senior Member Join Date: Sep 2008 Location: Turtle Island Posts: 2,776	The Fed's next task: combating runaway prices The Fed's next task: combating runaway prices As the recession eases, expanded lending could stoke '70's-style inflation By Annys Shin WashingtonPost.com updated 7:12 a.m. ET, Tues., May 26, 2009 As if the worst recession since World War II, the near collapse of the financial system, and the prospect of double-digit unemployment weren't enough to deal with, the Federal Reserve now has something else to worry about: success. Lately, a steady stream of economic data has suggested that while the economy is still shrinking, the pace of the decline is slowing. That, in turn, has stoked fears that the Fed's efforts to steer the economy away from a 1930s-era depression would push the country toward '70s-style inflation. Those fears center on the Fed's unprecedented efforts to revive the economy by creating more than $1 trillion in new money. Determining the best time to withdraw that money is a classic quandary for central bankers. The challenge of timing is even more daunting than usual this time because the Fed has become so integral to shoring up the financial system. As Fed leaders ponder their next move, analysts say they may have to choose between propping up credit markets today and fighting inflation tomorrow. Continues and comments: http://www.campaignforliberty.com/wire.php?view=5466