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

Greece Cut to Junk at S&P, Portugal Lowered as Debt Woes Spread in Europe

Greece Cut to Junk at S&P, Portugal Lowered as Debt Woes Spread in Europe today.This is what my futures chart looked like as the news spread quickly around the world.

The S&P 500 retreated nearly 30 points. Greece’s credit rating was cut three steps to junk by Standard and Poor’s, the first time a euro member has lost its investment grade since the currency’s 1999 debut. The euro weakened and stock markets throughout the region plunged.

Greece was lowered to BB+ from BBB+ by S&P, which also warned that bondholders could recover as little as 30 percent of their initial investment if the country restructures its debt.

The Euro also took a hit and fell 1.3 percent to $1.3215. This not really a problem with Greece, Portugal or even Spain for that matter. It really is a problem with the entire Europe system. You cannot just single out one or two of these.

Even though Greece Cut to Junk at S&P, Portugal Lowered as Debt Woes Spread in Europe we have a lot to get through. The vigilance and lies from the government and media about a full economic recovery being here is starting to smell just like the goldman sachs story…. “NO WE DID NOT RIP OFF OUR CLIENTS” “I CAN SAFELY SAY THAT WE ARE OUT OF RECESSION”Are you starting to see a pattern here yet people?

Don’t be alarmed but you ain’t seen nothing yet. Isn’t it sad what has been happening. If I were you I would start to rely more on your friends, family and neighbours. Rally together, work together and you will start to help along the big changes we see coming down the track.

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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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Alot of our members are quite awake to what is going on out there in the REAL WORLD. You remember when you left school and they kept reminding you how tough it is in this big bad REAL WORLD. Tough it might be but there are many idiots in their monkey suits making it a lot tougher for you.

But then again there is no one way to survive out there. And I have a few friends that started with nothing and made a good fortune. WHY? because their thinking is different to everyone else out there. There is still alot of talk about the events happening in EUROPE. We did cover things in our newsletter but many people still dont see this as a big problem.

Below is our latest installment with what is going on with the economy, including the EURO and US dollar.

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We have had a lot of people emailing today asking what has been happening with the market. The dow peeled off 4% today and its action is very interesting. Have a look at the latest S&P Chart below.

You can clearly see that January was not a good start to this year and we have clearly broken some significant levels. Alot of the Greece and Spain default news is hitting the markets and people around the world. And it is doing a lot of damage. I remember talking about this in my newsletter some months ago.

Seems that the bulls have the noose around their neck. But there are no surprises here. Why have we been going up that much!!? was there any self reliant evidence that things were improving. NO! so why are people so panicy as we sold off HARD today.

It was bound to happen. Alot of people don’t believe me when cuss the government and their games. They want you to think things are improving but you will see over the next few years the BIG BIG BIG changes coming. I cant say it enough. Don’t panic, I am not giving you a Will Smith I AM LEGEND scenario, but I will let you know there are big changes coming.

For now we just watch and wait with this market action. I have much to say and have decided that so many of my followers are well behaved I am going to give you all a FREE trends alert that only our PAID members receive.

I will be back in the office tomorrow and release this on the blogosphere here. Make sure you have a look, as we feel it is a very important update. One of the most important in 2010.

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Well it seems that sanity has come back to the market. Yes as your read this we have had the biggest 3 day drop on the market in nearly a year. I could fill up this page with reasons why….but If you have been tagging along and listening to our messages then you will fully understand. When I woke up and heard the market reports on the news, the first WORD that came to my mind was SANITY…..

AS the market kept climbing to new highs, the INSANE, no scratch that out…HIGHLY INSANE people kept just buying on all the government funding and money they kept pumping in the market. In all seriousness this was a fake rally, and lasted too long. Many people who kept buying kept getting use to making lots of money….so what did they do …KEPT buying. as I said CLINICALLY INSANE….with a double scoop of IGNORANT on top!

Now people are seeing the market dip hard here and are making all the excuses in the world. Obama has finally stepped up to the plate and started to get his cane out and whipping the naughty school boys on wall st for getting back to their dirty practices. Ummmm bit late for that now. But I say to Obama better late than NEVER.

I dont think he has come a long way since his election speech…what was it again!? YES WE CANNNED HAMMM! or something like that.

Anyway no matter what happens here on the market, up or down (down seems more likely the case) it has been FUN for myself and traders in the office, the video below I show you why???

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It is official, today Reuters A record one in seven U.S. mortgages were in foreclosure or at least one payment past due in the third quarter, according to fresh data signaling the recovery in the housing market will be tepid at best.

I guess those that dont like hearing the truth better get their mouse and click off this page as fast as your can!  YES…

But come on….what did you expect, with more people losing their jobs, that means less money going into their dwindling accounts. And that means there is no extra money to pay off the mortgage bills at the end of the month. Its not rocket science….really.

For the keen statisticians out there Housing and related business account for about 20 percent of the economy and recovery, so its not small potatoes i guess.

The smarties down a barclays who called the hmmm recovery in early 2008 (ummm right!) have now changed their tune…. yes! They pulled out their hankies and got the fake tear juice out and admitted and I quote “Foreclosures will be worse in the first part of 2010 and we do not see a peak in foreclosures until the middle of next year.”

Looks like the bankers and the BIG bonus pay checks are going to have a field day with this….. WOW how convenient…the same time they get their millions in dodgy bonuses the same times foreclosures are nearly their high point and those beach side resort condos will be going for a song. I bet you their mistresses will be loving this piece of news. LOL

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I have nothing more to say but we need to keep this story alive. But IMHO opinion it is just the tip of the iceburg. Sometimes I bang on the corruption of government drum too much and I feel like the message is semi getting through, however it is stories like this Full Story Here (as above) that really get up my nose.

I am sure that as Tim Geithner walks through the street from now on he will be getting more than his usual share of ONE FINGER SALUTES from strangers walking….and rightly so. WHAT A JOKE THIS HAS ALL BECOME.

Remember how I said the truth will be revealed to us soon, well this is only about .00001 % of it, maybe even less, Of what is really going on out there….Scary huh?

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Wow, what a big year of events. It is obvious that you are probably a bit more senial, A few more grey hairs, and ready to sit back in the pool with a nice Martini and sip it up while the sun beads overhead.

We say goodbye to 2009, and in just a few days we say welcome to the next decade. I would like to take this opportunity to thank all the people that read this blog and value our opinions, we are merely just messengers that try to bring clear concise information in a world that is run by lying psychotic tyrants who steal from peter to pay paul.

Anyway…

Merry Christmas to all, and a very Happy, safe and prosperous new year for 2010. Thankyou.

One more video to finish up the year. See you all in 2010.

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As December is slowly coming to a close, and we say goodbye to the last decade & we feverishly wait for the next decade to take hold, we look back on a roller coaster ride of events with many booms and bigger busts along the way…

The perfect example was the huge internet boom, which totally transformed our lives, the dot-com bubble which made our lives alot easy but at the same time grew to big for its britches and after this booming period went KABOOM, was very dramatic.

The current situation that is playing out, eery in similarity is the ‘Bailout Bubble’ that will really come under pressure in 2010. Governments are stopping at nothing to keep big failing companies afloat….as there was no money left in the governments funds they are now they are dipping into the average workers accounts by using sneaky tax programs and cleverly disguised schemes to devilishly fund them which is now being used to finance the rich fat pig bankers on Wall st.

In 2001 we saw  the Twin towers tragedy which ushered in a security consciousness  phaze and  bought about another secretive evil terrorist world that is now closely investigated and scrutinized. Within the next decade we will see many more terrorist events and tragedies consume the world.

We also witnessed one of the most drawn out wars ever seen, waged by US and NAT0 against Afghanistan and Iraq are leading the world to the first Great War of the 21st Century.

The 20th century belonged to the great USA, in 2010 the US will be seen slowly breaking apart. The signs are there for all to see. And no one believed us when we first explained this would happen many years ago. Now we are getting closer to seeing these events play out.

It is comical to watch main stream media, big pundits, idiot analysts and World leaders that get paid very large sums of money to get air time to tell people the opposite of what is really happening. They see a very different future unfolding. They insist time and time again, that the financial crisis is over and recovery is on the way. Yet at the same time, unemployment lines got bigger, foreclosures increased and the market crashed over 50% in 2008.

It is very interesting that all the while this was happening, all we were subject too was 24 hours TV streaming, reality TV brain rot,  big brother housemates, and overweight people trying to lose weight.

As 2009 draws to a close down, we see the misinformed media conglomerates ream on about climate change and the repetitive transgressions of Tiger Woods in the main news headlines.

Oh how predictable we have become as a race!. The identity that we have imprinted on the foots of humanity is somewhat embarrassing for those that are wide awake to what is really going on in the real world!!

In an age where INFORMATION IS POWER, we see many trends already developing for the next decade coming. Getting hold of this information before others will keep you ahead of the game, thats where the POWER lies really.

We believe we are the messengers of such information. Providing the news of tomorrow for you today. Information that you will need to prepare, profit and proper from in the coming times.

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