6/22/09 The Federal Reserve Bank Needs To Be Abolished

Precious Metals Market Analysis, By Michael Pennington (Copyright 2010 Pennco Coins)

This is the third time I’ve used this title over the past three years. It seems even more significant now that President Obama is proposing sweeping new federal oversight laws that would establish the FED as the most powerful regulator in the world. Secretary Geithner revealed the administration’s new plans last week and he was met with considerable resistance from both Main Street and Wall Street. The real purpose behind this move might be to build a structure whereby our Fed could be established as the Central Bank for the U.N. I am simply amazed at how the inept and morally corrupt individuals and entities keep getting rewarded for their failures. Here are some past economic assessments and dates from our financial leaders. It clearly illustrates that they are either complete idiots or the biggest liars in history.

February 28, 2007 – Dow Jones @ 12,268

March 13th, 2007 – Henry Paulson: “the fallout in subprime mortgages is “going to be painful to some lenders, but it is largely contained.”

March 28th, 2007 – Ben Bernanke: “At this juncture . . . the impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained,”

March 30, 2007 – Dow Jones @ 12,354

April 20th, 2007 – Paulson: “I don’t see (subprime mortgage market troubles) imposing a serious problem. I think it’s going to be largely contained.” , “All the signs I look at” show “the housing market is at or near the bottom,”

April 30, 2007 – Dow Jones @ 13,063

May 17th, 2007 – Bernanke: “While rising delinquencies and foreclosures will continue to weigh heavily on the housing market this year, it will not cripple the U.S.”

May 31, 2007 – Dow Jones @ 13,627

June 20th, 2007 – Bernanke: (the subprime fallout) “will not affect the economy overall.”

July 12th, 2007 – Paulson: “This is far and away the strongest global economy I’ve seen in my business lifetime.”

August 1st, 2007 – Paulson: “I see the underlying economy as being very healthy,”

October 15th, 2007 – Bernanke: “It is not the responsibility of the Federal Reserve – nor would it be appropriate – to protect lenders and investors from the consequences of their financial decisions.”

December 31, 2007 – Dow Jones @ 13,265

January 31, 2008 – Dow Jones @ 12,650

February 14th, 2008 – Paulson: (the economy) “is fundamentally strong, diverse and resilient.”

February 28th, 2008 – Paulson: “I’m seeing a series of ideas suggested involving major government intervention in the housing market, and these things are usually presented or sold as a way of helping homeowners stay in their homes. Then when you look at them more carefully what they really amount to is a bailout for financial institutions or Wall Street.”

February 29th, 2008 – Bernanke: “I expect there will be some failures. I don’t anticipate any serious problems of that sort among the large internationally active banks that make up a very substantial part of our banking system.”

March 16th, 2008 – Paulson: “We’ve got strong financial institutions . . . Our markets are the envy of the world. They’re resilient, they’re…innovative, they’re flexible. I think we move very quickly to address situations in this country, and, as I said, our financial institutions are strong.”

March 18th, 2008 – Bear Stearns Bailout Announced

May 7, 2008 – Paulson: ‘The worst is likely to be behind us,”

May 16th, 2008 – Paulson: “In my judgment, we are closer to the end of the market turmoil than the beginning,” he said.

May 30, 2008 – Dow Jones @ 12,638

June 9th, 2008 – Bernanke: Despite a recent spike in the nation’s unemployment rate, the danger that the economy has fallen into a “substantial downturn” appears to have waned,

July 16th, 2008 – Bernanke: (Freddie and Fannie) “…will make it through the storm”, “… in no danger of failing.”,”…adequately capitalized”

July 20th, 2008 – Paulson: “it’s a safe banking system, a sound banking system. Our regulators are on top of it. This is a very manageable situation.”

July 31, 2008 – Dow Jones @ 11,378

August 10th, 2008 – Paulson: “We have no plans to insert money into either of those two institutions.” (Fannie Mae and Freddie Mac)

September 8th, 2008 – Fannie and Freddie nationalized. The taxpayer is on the hook for an estimated 1 – 1.5 trillion dollars. Over 5 trillion is added to the nation’s balance sheet.
September 16th, 2008 – $85 Billion AIG Bailout “Loan”
September 19th, 2008 – $700 Billion Bailout Plan Announced

September 19th, 2008 – Paulson: “We’re talking hundreds of billions of dollars – this needs to be big enough to make a real difference and get at the heart of the problem,” he said. “This is the way we stabilize the system.”

September 19th, 2008 – Bernanke: “most severe financial crisis” in the post-World War II era. Investment banks are seeing “tremendous runs on their cash,” Bernanke said. “Without action, they will fail soon.”

September 21st, 2008 – Paulson: “The credit markets are still very fragile right now and frozen”, “We need to deal with this and deal with it quickly.”, “The financial security of all Americans … depends on our ability to restore our financial institutions to a sound footing.”

September 23rd, 2008 – Paulson: “We must [enact a program quickly] in order to avoid a continuing series of financial institution failures and frozen credit markets that threaten American families’ financial well-being, the viability of businesses, both small and large, and the very health of our economy,”

September 23rd, 2008 – Bernanke: “My interest is solely for the strength and recovery of the U.S. economy,”

October 31, 2008 – Dow Jones @ 9,337

March 31, 2009 – Dow Jones @ 7,609

If Paulson, Bernanke and Geithner were doctors and our economy was the patient, they’d be in jail for malpractice. Why can’t the major four networks pick up on any of this? Does everyone believe everything these people say?

A group of economists have gathered together asking the banks to be nationalized so they will stop making matters for the economy worse. The banks however are just doing whatever the WH and Fed wants then to do. They are just creating enormous amounts of money through these stimulus packages. All of this money is going to the same banks, which report the money as revenue and pay large bonuses to those executives who provide large sums to the political campaigns of the politicians. This is why Senator Dodd himself wrote in the AIG bonuses to the Stimulus Bill.
Because no one else would buy, last week the FED had to buy $7 billion in Treasurys on Tuesday and another $6.45 billion on Wednesday. Just think how high interest rates would be if the FED wasn’t buying this newly created debt.
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AMERICA IS NOW AMERICA’S BIGGEST CREDITOR! This makes no sense at all and will end in a catastrophe so certain it must have been planned and orchestrated. Gold and Silver is your only protection!

Let’s be honest here, Wall Street Bankers essentially went to the race track and took huge risks. Over the last 10 years they gambled away depositor’s funds on financial long shots that ran “up the track” or “broke down in the stretch”. Having lost everything, they now want a new bankroll so they can go out and do the same thing all over again. It’s called moral hazard and if these banker psychopaths can dupe the American people into giving them a new bankroll they will return to the track and rip us all off one more time.

Beam me up Scotty!

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