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.

Sign Up To Our FFT Newsletter Today For A 50% Discount

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.

CLICK HERE Sign Up To Our FULL Newsletter & Alert Updates!

As forecasters in this interesting world of our we have noticed that the recovery of the US is merely like a deer in headlight where you are alert & believe that things will be ok right before you hear the THUD. So much so it was always the governement’s purpose to pump the stockmarket full of so much money it didnt have an option but to go in one direction….UP UP & AWAYYYYYY!!!

YET PEOPLE THINK THIS IS THE ONE SIGN THEY NEED TO THINK WE ARE OUT OF A RECESSION!

At the moment all we are hearing is that the DOW  will reach 10,000 and its only within a hair breadth away. But we have to remember that we are well off the highs seen 24 months ago.

In the last 24 months things have changed and we now have noticed that government will take whatever measures are possible to gain back any control if they were at danger of losing in the first place.

People still believe that the actions of the government are in the common interest of their friends and neighbors but nothing can be further from the truth.

Whenever any government is backed into a deep, dark corner, they seem to take it upon themselves to do anything it takes to stay in power and handle the situation. In 2009 / 2010 this will be the forms of restrictive laws, more taxes, positive propaganda, and ultimate control on those that disobey to their strict orders.

Prepping or preparation of survival will be big in the future as many companies go under, and we see the complete collapse of the US empire as we know it. This will not only be stocking up on food, water and ammo.

We have been talking about this for a long time, and keeping an eye on this trend developing, and until recently it has hidden under the surface. Now even the most economic illiterate person is scared and is joining in the topic. Heck I have even seen some  MSM news pieces that are now admitting to it. I nearly fell off my seat!  We see this ‘prepping’ trend becoming increasingly popular and will be giving advice to those that feel the need take action and follow this important trend as it develops.

CLICK HERE Sign Up To Our FULL Newsletter & Alert Updates!

With all the mess and stuff going on in the world today and more of our  forecasts Popping up their ugly heads. I thought with the weekend nearly here I would lighten the load, and bring you something to put a smile on your dile.

Check out this funny video below. A cheeky farmer from Texas who obviously  has too much spare time on his hands, got up to a little mischief and ploughed a message (ABOUT BARACK OBAMA) into his field weeds for all to see. Completely obvious why its getting a bit of attention.

Pretty amusing I must admit!! but you can find out why he did it below.

CLICK HERE Sign Up To Our FULL Newsletter & Alert Updates!

Many years ago When Franklin D. Roosevelt was president of the USA he made a very famous quote.
“But while they prate of economic laws, men and women are starving. We must lay hold of the fact that economic laws are not made by nature. They are made by human beings.”

It basically means that Government (human beings) are the ones making laws regarding the economy. Because the economy cannot simply run by itself. It’s the laws, rules, constraints, that fine tunes the engine in order to make it work properly. If something goes wrong then it is not these laws you must blame but the people that are these ‘law makers’.

Recently this engine (the economy) has broken down, and if we do have a situation where men and women have no money or no food who do you think they are going to blame first. I think the government is starting to see this and are panicking and have ‘plan B’ ready and will change many laws and restrictions regarding their privileges and authority in order to have more control over many situations regarding the economy.

There is one thing for certain, “Change is coming“…VERY SOON and in a big way. I would be lying to you if I gave you the normal pitch that I keep seeing on the 6 o’clock news. They keep sugar coating this credit crisis like they have miraculously found a lamp, rubbed it got 3 wishes from the genie that popped out.

The problem is, there is no LAMP, and there is no GENIE!

The video below explains this more in detail…

FOR MORE FORECASTS PLEASE SIGN UP TO OUR NEWSLETTER – CLICK HERE !

There is a lot of talk about the GM motors bankruptcy over the last several days. I must say its quite entertaining reading others thoughts, but when you chisel away at the excuses and all the B.S. by ignorant analysts you have to realize one important thing….

Even if you bailout a company in trouble they will eventually go bankrupt anyway.

YES! Eventually somewhere down the pipeline anyway!.

After nearly 100 years in service and over $88 billion dollars in losses, they are paying the price for getting caught up in this whole credit crisis mess. As the truth slowly leaks out to the public, anger is building and bullying the govt to stop bailing out companies that are already dead! But only 1% of people have woken up to what is going on.

I bet the bookies taking bets over this one are left scratching their head, while the bailout teams in the government are visiting their therapists explaining their lack of work lately! LOL. But the government still have their ‘little black book of tricks’ out and using every tactic, and this will continue for some time yet.

But…What happens when they get to the end of that book?. THINGS WONT BE PRETTY!

You remember back to Obama’s legendary speech of “YES WE CAN!” well someone just gave Obama the backwards ‘peace sign’ and said, “NO YOU CAN’T!“  [**insert Obama smurk here**]

Also regarding the dollar, we saw Treasury Secretary Timothy Geithner try to lie to China by reassuring the Chinese that the US Dollar was sound. Unfortunately for Tiny Tim, the students he was lecturing at the time fell off their seats in fits of laughter. But just look what has happend to the dollar in the last few weeks. Gravity surely is kicking in!

Looks like you can fool some people some of the time, but not all of the people all of the time.

You have to remember that the Chinese are not stupid, and know this cat and mouse game.

They understand and know from experience, that running the printing presses with unlimited Dollars is devaluing it to nothing so quietly and for longer than you might think, they have been buying the ancient safe global currency of Gold.

While the govt keeps saying you don’t need gold because they have eveything under control, (yes we have heard this sob story before) behind the scenes they are breaking down and they are getting desperate. So my friends, expect something which is meant to shock go down this Summer.

This and much more is covered in the video below, Enjoy…..

Nowadays when you turn the news off for 24 hours or so, and come back World War III is starting. Apparently!?  The last few years North Korea have obviously been flexing its muscle, with their finger on the BIG RED BUTTON, saying “Just Try Me!! We are ready and waiting!” But they seemed to have step it up a notch in the last few days.

Whether you have your own opinion on the matter, the testing & firing of missiles hasn’t gone down well with the U.S. and other surrounding countries. But I guess you wouldn’t be happy if you found out your neighbor was building nuclear silo’s in his back yard and letting off rockets at 1am just to test and make sure things were going according to plan.

Yes, this is a serious threat, but the FFT team do not see a massive nuclear threat in the short term. We do however see some major nuclear threats and the possibility of a major nuclear event that could play out somewhere down the track. But we will save that for a future edition of our   >> FFT NEWSLETTER <<

Two military analysts contacted us yesterday and presented some interesting facts regarding the nuclear arms topic. But this being 2009, they both agreed that we are going to slowly start entering the ‘Nuclear Age ‘. Something that was laughed off many years ago when predicted, now seems very likely. Especially in recent times as we keep hearing about increases in nuclear testing going on.

My missile is bigger than yours ?  Is that what it boils down too ?

But…if any button has been pushed lately it has been the Misdirection button. At a time the economy is about to take a big hit, with the imminent collapse of GM days away now, and the likelihood of a major bank failing, Obama must be loving this shift of focus back onto the North Korea Missile Saga.

With such topics on prime time every night now, everyone seems to have forgotten what has been happening on their home soil and the state of the economy. Everything in the last day or so, has shifted back on the swine flu, and also this North Korea nuclear missile topic. Strange coincidence huh?