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

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I am very proud today as Forecast For Tomorrow Is another year older .  WOW 7 Years have gone really quickly. Blow out the candles and cut the cake and sing some big….. HIP HIP HORAAYYYYS!!!

A FUNNY STORY TODAY….

I was on the phone to a very big Australia financial celebrity yesterday.  He has been around the traps a LOOOONGGGG Time, and someone I have admired since a younster….He is someone I had looked up to for a long time. I was shocked today when he told me, that he is one of my subscribers. He advised me there are some very big guys watching me….hmmmmm!! But I loved the comment he made…..it was something like “Son, you are one cheeky bastard, I like that, but I have been watching you for a long time, you are spot on with great stuff !!!” I chucked, a little embarrassed I guess…. not really knowing what to say!!. Cheeky….well….maybe!! But my goal since day one was to reach out, and offer the truth and  help those who wanted to listen. Take it or leave it.

I am just blessed that there are people out there that value my own opinion in a world that is just TOXIC.  Lies, propaganda, scams, Government cover-ups. There is just so much to cover, and to read, to report on there is not enough hours in the day to infiltrate this and pass it on.

It’s good to reminisce on the old days. And I have many major doors opening up for me the last 12 months…which is simply amazing….But now I want to do something very important on our birthday.

To all my subscribers I want to say thankyou. Really from the bottom on my heart. Without you guys, my friends, affiliates, business associates this would not be possible. From humble beginnings in Australia many years ago, we have reached many people in almost all countries around the globe. So I want to say thankyou to all. Very much appreciated.

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Just a heads up for all our subscribers. Our new 2010 newsletter will be up in about 12 – 24 hours. Normally our first newsletter for the year is the most important.

Just Some of the topics we cover in this issue.

EUROPE, PIIGS ROLLING IN MUD…

LIKE SAND THROUGH AN HOUR GLASS…

THE EYE OF THE STORM…

WINTER OF HELL…

THE HAITI TUMMY ACHE…

GO LEAN, GO GREEN…

FILL ER’ UP SIR!…

STOP & SMELL THE FLOWERS…

AND MUCH MORE…

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As promised, here is the most recent ‘trends alert’ we sent to our full paid members 1 day ago.

**TRENDS ALERT MESSAGE** sent  5/2/10

This week we were expecting the dollar to strengthen and we can see the USD going even higher.

The US dollar is in a lot of trouble, however technically for now, we see that higher prices are quite likely in the short term so stay vigilant.

I know I have talked about a rise in the dollar which could in fact put pressure on the metals also, and now we are seeing solid evidence of that. For those asking yes, we still have our metal shorts (gold, silver)in the markets which are working very well. and we remain solid on the fact that if the dollar keeps rallying we will continue to see more downward pressure on metals and the stock markets also.

One must play with extreme caution here but you must realize technical analysis rules on all levels, not idiots brokers, fund managers that don’t know what they are doing and others with simply no clue. Our members have seen how powerful technical analysis is when we rode gold up from  the 900 dollar an ounce market all the way to 1200 level last year (2009).

We have lower targets in the stockmarkets but are still worried for metals and metal investors especially those who got in late.

Our studies now indicate that it is a real possibility that gold could come down even in to the 3 figures level. YES, below the 1000 dollar an ounce level and seeing the negative market action yesterday that seems to be confirming our thoughts.

We do see a time and perfect opportunities for buying gold back, because we have been buying on the big dips, but that time is not in front of us yet as we feel.

There are lower targets also, but we We will talk more about this in our newsletter that is coming out in the next week or so.

Regards

John S.

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Hi Guys

Alot of people have been hounding us about our newsletter. So I have decided to let all the people on my extended list take a peek (sample) at our full newsletter!

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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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Alot of people have been asking about our sales page at http://www.forecastfortomorrow.com/newsletter

And we have noticed something very ironic with our sales page. That our sales page in itself is another one of our forecasts. And we hint at many changing coming in the not too distant future, and in the first few paragraphs of our sales letter.

We have noticed that we explain things in the first few paragraphs. (bold below)

Hopefully this page has reached you in time, as there is an important message I wish to share with you.

I know your time is valuable, as is mine… so I will be blunt and to the point…please read on…

The US empire has finally come to an end. It is collapsing financially. While it will put up a good fight, it’s a matter of time before things turn even more sour. The laws of ‘cause and effect’ prove that this is going to affect the rest of the world as you may have noticed by now.

There are some people waking up but we really feel that it is our job to wake people up and help them stay two steps ahead of everyone out there reading about the latest winner on the FATTEST LOSER or read about the mistress count hanging over tiger woods head.

Which do you think is most important news??? Well I hate to admit it, but  I do like to watch junk TV, but the as I sit there in the armchair and after about 5 minutes i ask myself, what am I really learning here?….that some guy cries every time he does a sit up because he spent 5 years eating himself to death….ummm OK. And then I turf the remote and go and do something constructive!

Anyway…

I feel that our service has come a long way from the small humble beginnings. We have even some big analysts who  you would recognise that are also valued subscribers to our service. Yes, Even the big wigs watch what we have to say about the markets and emerging trends.

Our forecasts claim high accuracy, in the last 12  months we were able to predict the crash of Global markets (Oct 2008), the collapse of the global economies, and the election of Barak Obama as U.S. president and even the H1N1 (or swine) flu pandemic. Our investigations allowed us to forewarn those unaware.

Since our emergence we have helped thousands of people through our forecasts (which claim good accuracy). Our quarterly newsletters are designed to keep people up to date with many major developments and forecasts in various industries especially on the economic forefront.

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EXTRA….EXTRA…. Read all about it!. Hot off the press and into our hot little hands. Our next NOV newsletter installment is ready and will be released in about 12 hours.

Why do I feel like I am giving birth to my first born everytime I do this?, who knows. But special time and consideration is taking to putting this bad boy together.

We are going to experience many changes over the next few years, and even though I have been writing these newsletter for a long time, this newsletter and the ones coming down the track we believe are the most important. They will keep you two steps ahead of all the other people ‘asleep at the wheel’  I was once one of these people asleep until I got a wake up call A BIG WAKE UP CALL…

Even if the economy is failing you or your loved ones, why sit back and take it. Become warrior like, reveal your swords and start swinging away, take action, and show who is boss. Anyway…

Our newsletter is ready and will be available to all our members 12 hours from now.

For those that want a little sneak peak, here is a sample of the things we are going to cover in our new newsletter edition update.

UNEMPLOYMENT VS REAL UNEMPLOYMENT…

SWINE FLU PANDEMIC…

COMMERCIAL REAL ESTATE CRASH…

YOUR CARDS CALLING…

HOW TO MAKE MONEY DURING A DEPRESSION…

CURRENCY CRISIS LOOMING…

MARKET LEGS GET TIRED…

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First of all today, I must say what a crazy week. The word has been spreading round about our site and we have busy attending to our new members.  I have been up for 21 hours straight preparing some new stuff, So if this post sounds like a Chinese person wrote it, you probably know why!

To all our subscribers asking our latest newsletter, this will be out soon, and includes much important information. We will notify you as soon as it is ready.

I have been getting alot of messages from my members this week about our latest forecast that seems to be playing out very interestingly. Instead of answering the gazillions of emails in my inbox, I thought it would be better just to create a video and go through the important things and answer some of these questions at the same time.

We have just released an important market video update. (See Above).

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