IMPEACH  BERNANKE!

An open letter to Congressman Ron Paul of Texas

Antal E. Fekete

April 6, 2011

Dear Dr. Paul:

There are serious questions about the legality of Quantitative Easing. You are among the few who are well-qualified and well-placed to get to the bottom of it.

Most people believe, and the media confirm them in that belief, that the Fed can legally create dollars ‘out of the thin air’ in any quantity, and can do with them as it pleases. This may well be the pipe dream of Dr. Bernanke who is quoted as saying that the U.S. government has given the Fed a tool, the printing press, to stop deflation — but it hardly corresponds to the truth. The Fed can create new dollars only if some stringent legal conditions are satisfied, and then, it can only dispose of them in certain ways prescribed by law.

Contrary to a statement of Dr. Bernanke, made before he became the Chairman of the Board of Governors of the Fed, he could not drop freshly printed dollars from a helicopter, no matter how many reasons for such an action he may be able to cite. Another thing the Fed is not allowed to do legally is to purchase Treasury paper from the U.S. Treasury directly. It must be purchased indirectly through open market operations. If you don’t put the Treasury paper through the test of the open market before the Fed is allowed to buy it, the presumption is that the market would reject it as worthless, or would take it only at a deep discount. The law does not allow the F.R. banks to purchase Treasury paper directly from the Treasury because that would make money creation through the F.R. banks a charade, reserve requirements a farce, and the dollar a sham.

If that were the only problem with Quantitative Easing, it would be bad enough. But there is something else that is even more ominous. The fact is that the Federal Reserve banks can purchase Treasury paper only if they pay with F.R. credit that has been legally created.

F.R. credit (F.R. notes and F.R. deposits) is legally created if it has been issued in accordance with the law. The law says that F.R. credit must be backed by collateral security at the time of issuance, usually in the form of an equivalent amount of U.S. Treasury paper. The procedure is as follows.

The F.R. bank seeking to expand credit takes its Treasury paper, owned outright and free from encumbrances, and posts it as collateral with the Federal Reserve agent who will then authorize the issuing of credit. In other words, if the F.R. banks do not have the unencumbered Treasury paper in their possession, then they cannot create additional credit legally.

There is some evidence that the F.R. banks do not have F.R. credit available to make the kind of purchases Dr. Bernanke is talking about as part of his Quantitative Easing. Nor do they have unencumbered Treasury paper in sufficient quantity that they could post with the F.R. agent for authorizing the issue of additional F.R. credit.

The point is that the process of posting collateral first, and augmenting F.R. credit afterwards must under no circumstances be reversed. What the F.R. banks cannot legally do is to buy the Treasury paper first with unauthorized F.R. credit, post the paper as collateral, and justify the illegal issuance of credit retroactively. Nor can they borrow the bond from the Treasury, post it as collateral, and pay for the bond retroactively.

This is an important limitation separating the regime of market-based irredeemable currency from the regime of fiat money involving outright monetization of government debt — the graveyard where the Continental dollar, the assignat, the mandat, the Reichsmark, and the Zimbabwe dollar (among countless others) rest.

At any rate, retroactive authorization of F.R. credit, if that’s what the Fed is up to, would be a violation of both the letter and spirit of the F.R. Act. It would mean converting the dollar into outright fiat money through the back door, bypassing Congress. It would show absolute bad faith on the part of the Chairman of the Federal Reserve Board of Governors, Dr. Ben Bernanke, who certainly knows what the law is. Such a blatant violation of the law would make him totally unfit for the powerful office he occupies. It would call for his immediate and dishonorable discharge by the President, pending Congressional investigation of the matter.

The various violations of the law of which the Fed is accused point to a concerted effort to remove the shackles the law has put on the money spigots lest crooks help themselves to the public purse. These violations are not isolated incidents. They are aiming at the corruption of the monetary order of the nation and the world. Moreover, they would ultimately figure prominently among the causes of the financial instability the world has been suffering from since 1971 and, more recently, since 2008.

Without understanding this fundamental truth, all talk about stabilizing the monetary system and reining in the runaway budget deficit is an exercise in futility.

Yours very sincerely,

Antal E. Fekete
Professor (retired)
Memorial University of Newfoundland
Tel./Fax: +36-1-325-7996

Note: an identical letter has been sent to Congressman Mike Pence of Indiana

what will happen in 2012 ???… well I must say that it is a question on every bodies lips.

It is not just a matter of asking what will happen in 2012 and guessing…..it is a matter of finding out what has been going on even hundreds of years ago, and using this information to give us a glimpse of what is possible or work out what will happen in 2012.

So just what do you think what will happen in 2012?

Click the “play button” below to find out some of our projections.

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Well I know that a lot of my colleges were on their hands and knees praying that Bernanke would not get in. But unfortunately those prayers went unanswered today as Federal Reserve Chairman Ben Bernanke won Senate confirmation for a second term today. I can now safely say the US and its economy is DOOMED! Yes I know that My commentary on all this is comical at times and it is thrown around as a joke, but i think this is really getting serious now, and my most devastating forecasts are now on the verge of playing out.

Why does this man get a pat on the back for doing everything in the book pretty much wrong.  A man that is allegedly an expert on the depression has not only had helped bring the economy to its knees, but even admitted that he couldn’t even see the crisis in the first place. Yes, I know he should have a permanent L shape letter on his forehead. infact it should be tattooed on his forehead, to remind us of that yes…the great job that he has done…NOT.

I think it has come time to each bow our heads and say a little prayer.

Please pray for the Good and great people of America. The good men and women, and prey the blinkers will soon come off sooner rather than later….

Please Pray for Bank & Loan bailouts to stop!….

Please Pray that the criminally insane government and fraudsters criminals that are running this show are exposed and the real TRUTH to this matter will be shown to even the most unsuspecting victims in all of this….

Please Pray for the people when they ask questions and continually get shut down and told to go away…

Please Pray for the people that still believe the words that come from Bernankes mouth!….

Please Pray for the intensity of this things coming to be lessened!….

Please Pray for the criminals behind bars for petty crimes, when the real criminals are running our countries and are the ones that must be punished publicly….

AND MOST OF ALL…

PLEASE PRAY FOR THESE THINGS TO COME TO PASS,

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Today Federal Reserve Chairman Ben S. Bernanke said the U.S. economy faces “formidable headwinds,” including a weak labor market and tight credit that are likely to produce a “moderate” pace of expansion.

What, have I been drinking!, Ben Bernake telling the truth for once. Damn! Bout time he got hooked up to the lie detector machine.

While we here at FFT know the economy will eventually get better, dont think this will happen by next tuedays luchin. You are now seeing the next phaze in which the dunce Ben Bernanke and his henchmen who willing told people to hang on the bailouts would work have simply done nothing. and as we told people it would do the opposite. Well soon you will see exactly what opposite means. And many people are not ready for it.

I guess that in other news today Obama plans to cut its estimate of the projected costs of the government bailout programme by more than 200 billion dollars. Ummmm why didnt you do this a year ago.  Well too little too late….another very good example of how they “the government” plan to rob you slowly….. its a sad story, but a drum that I find myself beating on constantly.

It is coming into christmas time and many of my friends even here in Oz are struggling to make ends meet. This Christmas spending season, you know the season to be jolly will be an intresting one that is for sure.

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Seen at though Mr Bernanke still hasnt gone to the barber and done anything about that weird looking haircut of his. (shouldnt he just shave it all off) Mr Bernake testifies tomorrow about his actions to the senate. I know alot of people out there think watching Oprah, American Idol and staring at themselves in the shopfront windows seem more important, but I guess we could stop for a minute and talk about what matters most.

He has to get up infront of congress tomorrow and explain why he is a great chairman, and why he took that actions that he did. I think the guys in the sentate should introduce Bernanke to his seat by using this video as an introduction. Feel free to watch.

http://www.youtube.com/watch?v=9QpD64GUoXw

Remember we have shown this video here before, if you have seen it, you will realise he saw no crisis coming, employment getting better and House prices increasing over the mid to longterm. Ahhhh I will have what he is smoking!!

Anyway, would love for you to show your loyal views on what you think of Bernanke as the federal reserve chairman. Do you think he has done a good job? Or is he just yanking the chain and trying to keep everyone cool? I will let you be the judge?

CLICK HERE TO SEE OUR NEWSLETTER PAGE WHICH WILL BE LIVE NEXT MONDAY 24th August!.

Well…it seems that Bernanke was back spitting into the microphone again today, reaming on about how good the economy is. That sent the market flying up again, but if you have been watching the market it feels like Deja Vu all over again, just like back in 2008. The big rally up before an obliterating sell off later in the year, which even some of the half average analysts didn’t expect. But we explain more about this in our newsletters

UPDATE : Alot of our blog readers are emailing in asking when our newsletter page will be active. Well.. after many glitches & technical issues I can safely say that we will have everything up and running by Monday 24th of August.

We realize that this recession has people in a bit of a tight corner at the moment and we are here to help out, so that is why I have agreed to offer our great service at a 70% OFF DISCOUNT. Yes all the newsletters and alerts for 70% off our normal price. But only for a short period.

If you have any other further questions, you can contact our staff at contact@forecastfortomorrow.com

I will give you a quick friendly nudge on Monday as a reminder.  Would be glad to have you aboard.

From all the team here, Enjoy your weekend.

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I have a great joke for you today…. But FIRST…

Lets pretend to head back to the future for just a second. If we had a time machine and fast forwarded 24 months from now, oh the stories we could tell. I tell you the first thing I would do is hand over some notes on ‘economics 101′ to Mr Ben Bernanke, who has never picked up the book, and has the same capabilities as a 3 year old playing in the sand pit.

Many of our FFT subscribers know what I am talking about in one of our recent updates, and the trends or events we have been forecasting.

I find it amazing and even enraged at times that  throughout this horrific economic meltdown his rich fat cat friends on wall street treat him like a GOD. WHY? well, he sits up in his helicopter printing of all that monopoly money for them, and just throwing it around like it is nothing. All while he is smiling and waving to the crowd, signing autographs, and shaking hands with those next in line.

We are still in an economic meltdown, that is for sure, but checkout the headline on one of the news networks this morning… Bernanke Is Ranked World’s Best at Handling Financial Crisis, Survey Show. Ok this was the joke I was referring to before, so laugh as hard as you like. It is funny!!! I can tell you he is breaking some world records, but not in that BEST MAN category. LOL.

There’s going to be a few angry people knocking at his door soon when this thing gets worse. As I have explained this is not just your average economic meltdown. To cut a long story short, big changes are really just around the corner, and we need to help each other through these big changes. I am hoping by now that my blog and VIDEO’s are doing this.

It’s time to look out for you & your family throught this economic meltdown mess. Cause whether you like it or not, Mr Bernake, the Govt and all the other fuddy duddies, couldn’t care less about you…thats for sure.

So without further adeui hop in our time machine, buckle up, and head back to the future with us.

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VIDEO BELOW – Back to the future