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

historical gold prices are playing havoc with investors. Some people are scared it is too late, and others are scared things are too too high and need a break. But as an investor you must remember 4 key important elements with investing in market or commodities.

1) Historical gold prices could mean history is repeating, so you have to sit tight and be patient.

2) Contrarily investing can sometimes make you good money. That is do the opposite to what the average man in the street is telling you to do.

3) Get top quality advice from an expert in the field with more than 10 years experience in what you are dealing with.

4) Normally the best time to look for opportunities is when the economy is in turmoil. Supply may dwindle, but demand is sky high!. That is why there were many millionaires created during the last great depresssion. They knew what to sell due to the demand.

Here is our latest video about a shifting in the economy we see coming further down the track.

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85% College Grads Move Back With Parents in a recent study conducted. Seems like it sure is reflective on a sign of the times.

One student reflected back over the last 5 years. “I worked hard for a degree but could not find a job in my field and became a truck driver make around 60grand a year what a waste of time/money.”

Getting a degree used to be a stepping stone to limitless career opportunities. Now it’s more of a hiatus from living under your parents’ roof.

Stubbornly high unemployment — nearly 15% for those ages 20-24 — has made finding a job nearly impossible. And without a job, there’s nowhere for these young adults to go but back to their old bedrooms, curfews and chore charts. Meet the boomerangers. …

“This recession has hit young adults particularly hard,” according to Rich Morin, senior editor at the Pew Research Center in DC.

So hard that a whopping 85% of college seniors planned to move back home with their parents after graduation last May, according to a poll by Twentysomething Inc., a marketing and research firm based in Philadelphia. That rate has steadily risen from 67% in 2006.

What happend to the messages of “The recovery is here” and other swakers on TV saying “Don’t listen to negative Nanci’s there is no recession!” Well sorry to say that us negative nancies are just telling like it really is. The Truth.

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It Is Happening People! I thought it would be coming a little bit later but for the people that are awake know the warning signs are there. Our NEWSLETTER subscribers have been doing quite well as of late. We have been giving warning for a long time now.

Here let me explain this in the best way I know how.

This is people with gold!

Gold Chart below

The US Dollar

US Dollar Chart Below

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Gold Jumps To 1300 and is trading just over today. I remember when we were talking about this level only 16-18 months ago, and people were scratching their heads. Well fast forward to today and YES! we are there.

It just goes to show you that the smart money is pouring into such commodities as they do not trust the government and their lies and mis-information about an economy out of recession. The proof is in the pudding really.

Here is our latest update with more about gold, the U.S dollar and the up and coming US elections. Click on the play button to watch.

Hope this helps. Have a great day.

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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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Just interested  to know the general feeling out there amongst some of our readers, and what they think about the current economic conditions in the US.

NOTE : Please join in and vote below and find out what others think?

The Fuse Has Been Lit…and there is no way to put it out!!

I have had mass amounts of emails this week and had some serious talks with our FFT members about what is happening in the economy at the moment. It has been nearly a whole year since the last market crash of 2008, and people are going to talk about that horrific event for many years to come I am sure.

This October will be a bit different. Like a big night on the town and a bad hangover, you could call the last 12 months a bad hangover for big banks, retirees, and those still unemployed and looking for work. And you feel every time the government talk they are the new 21st century ROBBIN’ HOOD… Robbin’ as in stealing for the poor and giving to the already rich.

YES…YES… DON’T GET ME STARTED!

They lit the fuse but they are also are sitting on the bomb that they call FAST SEEDED RECOVERY.

When the fuse runs out, and we hear the big BANG, the explosion will be immense they will be obliterated and the shock wave will travel long and far, to all demographics and many households that are unsuspecting….

Our latest video is below and explains more about what is happening at the moment.

Feel free to pass this important message on to your friends.

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Inglorious Bastards is quite a good movie. Took a few friends to go see this last night and after we were let out, stuffed full of my bladder buster and very salty popcorn, I reminced on the good old days when the FDIC said they could contain the banking crisis. I also recall a Ben Bernanke VIDEO posted a while ago on this blog where I explain these chameleon liers or these (Inglorious Bastards) only really care about themselves and not really what you think.

Over the last couple of days the FDIC have come out and admitted they are in trouble. In laymens terms it has less than $10 Billion dollars left… they may already be broke and they need to pay the trillions of dollars owed by the banks. Well these Inglorious Bastards DONT HAVE IT! Yes, one of the insurance companies that are in charge of all these bailouts, need a bailout themself….how is that for IRONY! Yet they have been telling you all along that they have funds to do this. Tsk Tsk

As I write this today it is the 1st of September 2009, the birds are chirping, the air mild and people are walking around sucking on the FREE “anti-recession lollipops” that these Inglorious Bastards (government) keep throwing out in the streets.

If you are without a job at the moment, please thank these Inglorious Bastards. I hope they keep lying through their teeth, because karma will get the better of them when the true reality hits those that are not readers of this blog.

These Inglorious Bastards care not for you. So help yourself first and then your family. Lastly go up to everyone you know not AWAKE and give their cage a good RATTLIN’! By gosh they need it.

I explain more about this in the video below. Click the play button below to see what these Inglorious Bastards are up too lately…

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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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