July 16th, 2011
The national U.S. economy seems really bad. Where is The Federal Reserve System [/The Fed] and what are they doing about the nation’s current economic situation? As The Federal Reserve System has had the better part of a century to practice running the nation’s economy and while concurrently/potentially owning OUR Federal government, what is the U.S. central bank (who we call ‘The Fed’) doing to make the situation better and to end the on-going “Great Depression of the New Millennium?”
Is The Fed merely inept – as seems most of the national-level, government-type entities which run OUR country? (The Fed is not a government entity, however.) Is The Fed attempting to reduce the U.S. nation to “third world developing nation" status – with The Fed’s endless devaluation of the American Dollar? Or, is The Fed attempting some other clandestine undertaking of which the rest of us are unaware and such an operation requires the concurrent devastation of the “American way of life”– as we are all aware The Fed essentially is not required to answer to anyone for its actions?
I understand attempting to run a nation’s economy has many challenges, no doubt! Nevertheless, the apparent long-standing and on-going policy regime of The Fed currently [and long since] appears as ineffectual at protecting the nation’s economic well-being.
Unless some rational and verifiable excuse exists for the inability of The Federal Reserve System to better the nation’s economic condition – other than an excuse of its own ineptitude, clearly the time is at hand to “SHRED THE FED!!” Surely, the nation’s economy would be better off with no national banking cartel acting as a central bank while said cartel concurrently controls our currency and financial institutions and while this same central bank/cartel (The Fed) routinely seeks “arbitrage opportunities” for itself in addition to claiming no fiduciary responsibility to anyone – seemingly the least of which would include a fiduciary responsibility to the American people and the U.S. nation!
Adam Vernon Trotter / AVT
PS. The Fed appears content to have its New York mouthpiece, Mr. Timothy Geithner, running the U.S. Treasury Department while handing trillions of dollars to its banking buddies in ‘stimulus’ monies. (See: Geithner Said to Consider Leaving Treasury After Debt Debate; located at: http://www.bloomberg.com/news/2011-06-30/geithner-said-to-weigh-leaving-treasury-after-debt-ceiling-debate-resolved.html)
Also see:
On The Federal Reserve’s Plan to Buy-Back $600B in U.S. Government Debt…
http://adamvernontrotter.blogspot.com/2010/11/on-federal-reserves-plan-to-buy-back.html
Thomas Jefferson and the Federal Reserve System.
http://adamvernontrotter.blogspot.com/2010/06/thomas-jefferson-and-federal-reserve.html
Incompetence and Confusion: Federal Reserve to Raise Interest Rates? U.S.Dollar, Liquidity Trap, Inflation, and Savings.
http://adamvernontrotter.blogspot.com/2011/06/incompetence-and-confusion-federal.html
Definition of Terms: "Shred The Fed"
http://adamvernontrotter.blogspot.com/2011/02/definition-of-terms-shred-fed.html
The Great Depression of the New Millennium
http://poetrybyadamvernontrotter.blogspot.com/2011/03/great-depression-of-new-millennium.html
The Time to ‘Shred the Fed’ Appears to be At Hand.
http://adamvernontrotter.blogspot.com/2010/08/time-to-shred-fed-appears-to-be-at-hand.html
Allow the Federal Government to Control America’s Currency.
http://adamvernontrotter.blogspot.com/2009/06/allow-federal-government-to-control.html
What Would Happen With No U.S. Federal Government Debt?
http://adamvernontrotter.blogspot.com/2010/11/what-would-happen-with-no-us-federal.html
Showing posts with label Currency Devaluation. Show all posts
Showing posts with label Currency Devaluation. Show all posts
Monday, July 18, 2011
Wednesday, June 8, 2011
Incompetence and Confusion: Federal Reserve to Raise Interest Rates? U.S.Dollar, Liquidity Trap, Inflation, and Savings.
May 31st, 2011
The Federal Reserve System appears as an organization at odds with itself. On one hand it claims no fiduciary responsibility to anyone while on the other hand it claims to be concerned for economic welfare of the United States – while maintaining no apparent or mandated constitutional authority for its power, it should be noted. Furthermore, while employing the most arrogant of economic experts from the nation’s most arrogant of educational institutions, The Fed appears as completely incompetent while knowing no more of how to fix the currently listless U.S. economy than does the average simpleton. Additionally, The Fed appears as an organization which has been dishonest and has lied to the American people for so long that The Fed surely now takes the American public for complete idiots as well, all the while professing to the nation of how it cares for our economic welfare. Now, “A top Federal Reserve official says it is time to raise interest rates to avoid causing inflation and economic problems.” (See WSJ link below for quote source.)
The Fed has completely devalued the dollar to a fraction of its prior value (review the historic price of gold). Such currency devaluation was apparently done for any of several arguable reasons (to compete with cheap labor from other nations, to create a currency war, or most likely, to ‘swindle’ Chinese creditors). Not the least of these possible reasons for devaluing the dollar, it seems, was to artificially increase prices in an attempt to superficially – and by definition – put an end to any current economic depression (by artificially bolstering the U.S. GNP as a result of increased prices due to the devalued dollar) - which would help any politician running for reelection, btw.
As for raising interest rates to alleviate inflation pressures, clearly, the devalued dollar would be the only true driving factor for any increased pressures of inflation – as the majority of the population has long been unemployed or underemployed. Consequently, consumer demand and spending could not be causing any inflation. While some may counter that the increased price of fuel has caused inflation pressures to rise, it is likely that the increased price of fuel is also largely a result of the devalued U.S. Dollar (Federal Reserve Note) – a point which I will show at a future date when I have the time. Additionally, anyone that knows anything about economics knows that our government welcomes inflation for its contracting purposes in addition to its [and The Fed's] apparently concerted seigniorage efforts (see inflation tax, fiat dollar/money, and printing money).
As a testament to the level of fools for which The Fed apparently assumes comprises the majority of the U.S. populace, during the midst of the heightened and escalating devaluation of the Dollar – a devaluation resulting from The Fed’s actions, The Fed now wants the populace to increase its savings (according to the WSJ article below which quotes the head of the K.C. Fed). That is, The Fed apparently wants us to increase our savings levels while it continues to devalue the dollar – as if the U.S. populace could be as stupid as the Chinese creditors to allow the banks to hold our money/wealth while the central bank (The Fed) devalues the money to a level where it is worth less than when the money was put into any savings account. Even the Chinese fools/creditors eventually caught-on to what was happening in that regard. Now The Fed (apparently with no more foreigners around to swindle) expects the average American to be just as stupid as the Chinese had been. And additionally, of course, few Americans have jobs which would allow for saving any money, anyhow. What’s more, as a result of the economic depression, depressed real estate values, and nonexistent demand for workers, many retirement savings of aging Americans has long since been wiped-out – all the while during recent years The Fed maintaining an apparent historic position of desiring any such retirement savings to be invested in the equities markets and not kept in savings accounts.
Nevertheless, I must admit, given the listless U.S. economy and the liquidity trap which appears to have gripped the same, The Fed surely needs to do something different (other than lining its own pockets while increasing the value of its gold reserves which it has done superbly well over recent decades with the devalued dollar). Clearly the U.S. economy is in the throws of a liquidity trap. Few, other than myself – apparently, are even willing to admit the possibility of such a liquidity trap in the U.S. Most probably won’t admit such a possibility because they fear reprisals and retribution for stating such from the all-powerful Federal Reserve System and its government lackeys. When corporations pursue capital investments in infrastructure, for example, such typically increases the need for workers (which is a good thing). However, when corporations make these capital investments – say in new facilities, they often secure/sell bonds to ensure the financing of the capital improvement effort. There in lies the rub and the basis of the liquidity trap as well. Because, when interest rates are at an all time low rate of return (as they are currently), the interest rate ultimately has nowhere to go but up. When one buys a bond at one rate of return and then the rate is increased for new bonds, the value of the bond at the lower rate of return is then worth a lesser face value than when it was purchased. Therefore the holder of that bond at the lower interest rate has now lost money due to the availability of a bond at an increased interest rate. So in other words, no one wants to buy any bonds with such low rates of returns as they currently stand because such would surely be a losing investment to the purchaser of bonds. Furthermore, according to some, increased savings only worsens a liquidity trap – and, in fact, any economics textbook will tell you to throw money at a liquidity trap.
So what is The Fed’s true intent in this matter of seeking increased interest rates? Given its lack of fiduciary responsibility to anyone other than itself and its minimal transparency to observers, it is unlikely that any outsider will ever know what is the true intent of The Federal Reserve System. Given the hold and power The Fed has over our governments and politicians, it is unlikely that our governments and legal establishments will help us in this regard either. To be clear, the Nation's Founding Fathers stood against a national/Federal Bank and included no such allowance for a delegation of financial power/authority to a non-government agency/banking cartel [such as The Federal Reserve System] in our American Nation's Constitution.
Surely, it is probably best to let the economy drive itself rather than to let this banking cartel known as The Federal Reserve System make economic policy. After being in existence for nearly one hundred years, if The Fed has not determined by now what to do during times of economic woes to benefit the nation, what is the point in having it run our money supply and setting monetary and fiscal policy? As such, the time is clearly at hand to “SHRED THE FED”!!!
Adam Vernon Trotter / AVT
PS. Should time/history prove The Fed System to be less than forthright, let us hope that ultimate justice exists in the universe and that those bankers who were reported to have secretly met at Jekyll Island nearly one hundred years ago to frame The Federal Reserve System are now being subjected to that ultimate justice – as we can also hope the same ultimate justice will exist for the politicians, lawyers, and judges who continue to allow for the perpetuation of any seemingly corrupt and incompetent Federal Reserve System to this day.
Kansas City Fed's Hoenig Sees Need to Lift Rates
http://online.wsj.com/article/SB10001424052702303657404576353393578116276.html
Liquidity trap
http://en.wikipedia.org/wiki/Liquidity_trap
How Much Of The World Is In a Liquidity Trap? (Krugman)
http://krugman.blogs.nytimes.com/2010/03/17/how-much-of-the-world-is-in-a-liquidity-trap/
Liquidity Trap
http://www.investopedia.com/terms/l/liquiditytrap.asp
Definition of Terms: "Shred The Fed"
http://adamvernontrotter.blogspot.com/2011/02/definition-of-terms-shred-fed.html
Concerning the Federal Reserve System and Fiduciary Responsibility….
http://adamvernontrotter.blogspot.com/2010/10/concerning-federal-reserve-system-and.html
Thomas Jefferson and the Federal Reserve System.
http://adamvernontrotter.blogspot.com/2010/06/thomas-jefferson-and-federal-reserve.html
The Federal Reserve System appears as an organization at odds with itself. On one hand it claims no fiduciary responsibility to anyone while on the other hand it claims to be concerned for economic welfare of the United States – while maintaining no apparent or mandated constitutional authority for its power, it should be noted. Furthermore, while employing the most arrogant of economic experts from the nation’s most arrogant of educational institutions, The Fed appears as completely incompetent while knowing no more of how to fix the currently listless U.S. economy than does the average simpleton. Additionally, The Fed appears as an organization which has been dishonest and has lied to the American people for so long that The Fed surely now takes the American public for complete idiots as well, all the while professing to the nation of how it cares for our economic welfare. Now, “A top Federal Reserve official says it is time to raise interest rates to avoid causing inflation and economic problems.” (See WSJ link below for quote source.)
The Fed has completely devalued the dollar to a fraction of its prior value (review the historic price of gold). Such currency devaluation was apparently done for any of several arguable reasons (to compete with cheap labor from other nations, to create a currency war, or most likely, to ‘swindle’ Chinese creditors). Not the least of these possible reasons for devaluing the dollar, it seems, was to artificially increase prices in an attempt to superficially – and by definition – put an end to any current economic depression (by artificially bolstering the U.S. GNP as a result of increased prices due to the devalued dollar) - which would help any politician running for reelection, btw.
As for raising interest rates to alleviate inflation pressures, clearly, the devalued dollar would be the only true driving factor for any increased pressures of inflation – as the majority of the population has long been unemployed or underemployed. Consequently, consumer demand and spending could not be causing any inflation. While some may counter that the increased price of fuel has caused inflation pressures to rise, it is likely that the increased price of fuel is also largely a result of the devalued U.S. Dollar (Federal Reserve Note) – a point which I will show at a future date when I have the time. Additionally, anyone that knows anything about economics knows that our government welcomes inflation for its contracting purposes in addition to its [and The Fed's] apparently concerted seigniorage efforts (see inflation tax, fiat dollar/money, and printing money).
As a testament to the level of fools for which The Fed apparently assumes comprises the majority of the U.S. populace, during the midst of the heightened and escalating devaluation of the Dollar – a devaluation resulting from The Fed’s actions, The Fed now wants the populace to increase its savings (according to the WSJ article below which quotes the head of the K.C. Fed). That is, The Fed apparently wants us to increase our savings levels while it continues to devalue the dollar – as if the U.S. populace could be as stupid as the Chinese creditors to allow the banks to hold our money/wealth while the central bank (The Fed) devalues the money to a level where it is worth less than when the money was put into any savings account. Even the Chinese fools/creditors eventually caught-on to what was happening in that regard. Now The Fed (apparently with no more foreigners around to swindle) expects the average American to be just as stupid as the Chinese had been. And additionally, of course, few Americans have jobs which would allow for saving any money, anyhow. What’s more, as a result of the economic depression, depressed real estate values, and nonexistent demand for workers, many retirement savings of aging Americans has long since been wiped-out – all the while during recent years The Fed maintaining an apparent historic position of desiring any such retirement savings to be invested in the equities markets and not kept in savings accounts.
Nevertheless, I must admit, given the listless U.S. economy and the liquidity trap which appears to have gripped the same, The Fed surely needs to do something different (other than lining its own pockets while increasing the value of its gold reserves which it has done superbly well over recent decades with the devalued dollar). Clearly the U.S. economy is in the throws of a liquidity trap. Few, other than myself – apparently, are even willing to admit the possibility of such a liquidity trap in the U.S. Most probably won’t admit such a possibility because they fear reprisals and retribution for stating such from the all-powerful Federal Reserve System and its government lackeys. When corporations pursue capital investments in infrastructure, for example, such typically increases the need for workers (which is a good thing). However, when corporations make these capital investments – say in new facilities, they often secure/sell bonds to ensure the financing of the capital improvement effort. There in lies the rub and the basis of the liquidity trap as well. Because, when interest rates are at an all time low rate of return (as they are currently), the interest rate ultimately has nowhere to go but up. When one buys a bond at one rate of return and then the rate is increased for new bonds, the value of the bond at the lower rate of return is then worth a lesser face value than when it was purchased. Therefore the holder of that bond at the lower interest rate has now lost money due to the availability of a bond at an increased interest rate. So in other words, no one wants to buy any bonds with such low rates of returns as they currently stand because such would surely be a losing investment to the purchaser of bonds. Furthermore, according to some, increased savings only worsens a liquidity trap – and, in fact, any economics textbook will tell you to throw money at a liquidity trap.
So what is The Fed’s true intent in this matter of seeking increased interest rates? Given its lack of fiduciary responsibility to anyone other than itself and its minimal transparency to observers, it is unlikely that any outsider will ever know what is the true intent of The Federal Reserve System. Given the hold and power The Fed has over our governments and politicians, it is unlikely that our governments and legal establishments will help us in this regard either. To be clear, the Nation's Founding Fathers stood against a national/Federal Bank and included no such allowance for a delegation of financial power/authority to a non-government agency/banking cartel [such as The Federal Reserve System] in our American Nation's Constitution.
Surely, it is probably best to let the economy drive itself rather than to let this banking cartel known as The Federal Reserve System make economic policy. After being in existence for nearly one hundred years, if The Fed has not determined by now what to do during times of economic woes to benefit the nation, what is the point in having it run our money supply and setting monetary and fiscal policy? As such, the time is clearly at hand to “SHRED THE FED”!!!
Adam Vernon Trotter / AVT
PS. Should time/history prove The Fed System to be less than forthright, let us hope that ultimate justice exists in the universe and that those bankers who were reported to have secretly met at Jekyll Island nearly one hundred years ago to frame The Federal Reserve System are now being subjected to that ultimate justice – as we can also hope the same ultimate justice will exist for the politicians, lawyers, and judges who continue to allow for the perpetuation of any seemingly corrupt and incompetent Federal Reserve System to this day.
Kansas City Fed's Hoenig Sees Need to Lift Rates
http://online.wsj.com/article/SB10001424052702303657404576353393578116276.html
Liquidity trap
http://en.wikipedia.org/wiki/Liquidity_trap
How Much Of The World Is In a Liquidity Trap? (Krugman)
http://krugman.blogs.nytimes.com/2010/03/17/how-much-of-the-world-is-in-a-liquidity-trap/
Liquidity Trap
http://www.investopedia.com/terms/l/liquiditytrap.asp
Definition of Terms: "Shred The Fed"
http://adamvernontrotter.blogspot.com/2011/02/definition-of-terms-shred-fed.html
Concerning the Federal Reserve System and Fiduciary Responsibility….
http://adamvernontrotter.blogspot.com/2010/10/concerning-federal-reserve-system-and.html
Thomas Jefferson and the Federal Reserve System.
http://adamvernontrotter.blogspot.com/2010/06/thomas-jefferson-and-federal-reserve.html
Tuesday, January 18, 2011
U.S. Government/Obama Administration Wants China to Stop Devaluing Its Currency. Which is the Free Nation and Which is Communistic/Fascist?
January 18th, 2011
In anticipation of the expected meeting tomorrow at the White House between President Obama and China’s President, ABC’s World News with Diane Sawyer reported this evening on the U.S. Government’s/Obama Administration’s efforts to “level the playing field" regarding trade with China. One of the topics of concern to the U.S. Government/Obama Administration is reportedly the continued devaluation of the Chinese currency.
Say what???!?!?!?
If that’s not the proverbial “pot calling the kettle black”. I mean… does our government consider the news viewing public idiotic – or is it merely ABC News that believes the viewers of its news program to be stupid? After such a report that appears totally ignorant of the apparent truth in this matter or, at a minimum, is attempting to not reveal the entire truth of the matter, I likely would not believe anything ABC News reports on the economy.
The United States – via the Federal Reserve System – has been devaluing our currency for most of the last one hundred years with particularly concerted efforts to this end during the last several years [if not decades]. One only needs to review the price of gold [in dollars] for evidence of our devalued currency (or read more of my blog). In fact, I am fairly confident that the Chinese government has re-linked the exchange rate of their currency to the U.S. Dollar a few years ago – displaying that they are not stupid either (see notes below). Therefore, if the dollar continues to become devalued, so in turn will the Chinese currency. Furthermore, unlike the Federal Reserve System and the ‘U.S Dollar,’ to my knowledge the Chinese government was never warned against the escalation of a “currency war” by the European Central Bank (ECB) as was the Federal Reserve System warned of such a few months back by the ECB regarding The Fed’s continued devaluation efforts of the ‘U.S. Dollar’/Federal Reserve Note. (See: http://adamvernontrotter.blogspot.com/2010/10/fed-to-buy-back-government-debt.html )
What is of particular interest and displayed by stories such as these, is the limited amount of reporting on items such as the continued devaluation efforts of the ‘U.S. Dollar’/Federal Reserve Note, the previously [albeit minimally] reported down-grading of American government securities instruments such as U.S. government bonds (downgraded by the Chinese, at least - and downgraded by others too as I recall, reports of which I can not locate at the time of this writing), and the limited amount of reporting of issues such as the Chinese government’s efforts to protect its financial interests by linking the exchange rate of its currency to the exchange rate of the dollar.
So again I ask, is it the U.S. government (and the Federal Reserve System) and/or ABC News who consider the U.S. general public and network news viewers to be total idiots with absolutely no knowledge of economics and international monetary policy or do these sources of information merely prefer not to report the entire truth? As time has now shown by tonight’s newscast, apparently all of them (ABC News, The Fed, and the U.S. Government) must consider the U.S. public/populace to be completely ignorant of economics and the current realities of international monetary policy. Clearly we can now legitimately ask: Can we no longer trust our news media sources to report the entire truth of any issue to the nation? (A question I have put forth previously, btw. See: http://adamvernontrotter.blogspot.com/2010/05/is-nation-under-siege-could-we-trust.html)
I mean…., concerning truth in reporting by the media as well as the truth regarding the continued devaluation of currency, which is the free nation and which nation is communistic / fascist?
Adam Trotter / AVT
See also:
How Currency Choices 'Made in China' Have Big Impact on U.S. Economy
REPORT AIR DATE: Jan. 18, 2011.
http://www.pbs.org/newshour/bb/business/jan-june11/chinacurrency_01-18.html
"SUMMARY
Economics correspondent Paul Solman looks at the ongoing dispute between the U.S. and China over currency and trade. Amid its trade deficit with China, the U.S. wants to pressure the Chinese to let their currency, the renminbi, rise in value instead of pegging it to the dollar.
PAUL SOLMAN: For many years, China glued its currency to the U.S. dollar. But, starting in 2005, China loosened its grip, letting the value of the dollar fall against the renminbi, some 20 percent over three years.
But, in 2008, the world financial crisis hit, and China reglued the renminbi to the dollar. In the aftermath, China has recovered, while the U.S. economy limps along, our unemployment rate distressingly high."
///
http://en.wikipedia.org/wiki/Fixed_exchange_rate (yea, I know we are not supposed to quote wikipedia)
“…There are no major economic players that use a fixed exchange rate (except the countries using the euro and the Chinese yuan). … Another, less used means of maintaining a fixed exchange rate is by simply making it illegal to trade currency at any other rate. This is difficult to enforce and often leads to a black market in foreign currency. Nonetheless, some countries are highly successful at using this method due to government monopolies over all money conversion. This was the method employed by the Chinese government to maintain a currency peg or tightly banded float against the US dollar. …” Which, as is typical for wikipedia, this information is seemingly contradicted further down the webpage.
///
An of course, there are others that say the Chinese currency is pegged to a ‘basket’ of currencies; but I don’t know how current this article is.
What is the United States Dollar (USD)?
http://www.gocurrency.com/countries/united_states.htm
“…A significant recent development is the action of the People's Republic of China: the renminbi had once been informally and controversially pegged to the dollar (since the mid-1990s, at 1 U.S. dollar = 8.28 Y); however the peg was removed on July 21, 2005. Instead, China has a managed float against a basket of currencies. …”
///
US Credit Rating Downgraded
It was only a matter of time...
http://www.wealthdaily.com/articles/us-credit-rating-downgraded/2594
Leading Chinese credit rating agency downgrades USA government bonds
http://blogs.telegraph.co.uk/finance/ianmcowie/100008566/leading-chinese-credit-rating-agency-downgrades-usa-bonds/
In anticipation of the expected meeting tomorrow at the White House between President Obama and China’s President, ABC’s World News with Diane Sawyer reported this evening on the U.S. Government’s/Obama Administration’s efforts to “level the playing field" regarding trade with China. One of the topics of concern to the U.S. Government/Obama Administration is reportedly the continued devaluation of the Chinese currency.
Say what???!?!?!?
If that’s not the proverbial “pot calling the kettle black”. I mean… does our government consider the news viewing public idiotic – or is it merely ABC News that believes the viewers of its news program to be stupid? After such a report that appears totally ignorant of the apparent truth in this matter or, at a minimum, is attempting to not reveal the entire truth of the matter, I likely would not believe anything ABC News reports on the economy.
The United States – via the Federal Reserve System – has been devaluing our currency for most of the last one hundred years with particularly concerted efforts to this end during the last several years [if not decades]. One only needs to review the price of gold [in dollars] for evidence of our devalued currency (or read more of my blog). In fact, I am fairly confident that the Chinese government has re-linked the exchange rate of their currency to the U.S. Dollar a few years ago – displaying that they are not stupid either (see notes below). Therefore, if the dollar continues to become devalued, so in turn will the Chinese currency. Furthermore, unlike the Federal Reserve System and the ‘U.S Dollar,’ to my knowledge the Chinese government was never warned against the escalation of a “currency war” by the European Central Bank (ECB) as was the Federal Reserve System warned of such a few months back by the ECB regarding The Fed’s continued devaluation efforts of the ‘U.S. Dollar’/Federal Reserve Note. (See: http://adamvernontrotter.blogspot.com/2010/10/fed-to-buy-back-government-debt.html )
What is of particular interest and displayed by stories such as these, is the limited amount of reporting on items such as the continued devaluation efforts of the ‘U.S. Dollar’/Federal Reserve Note, the previously [albeit minimally] reported down-grading of American government securities instruments such as U.S. government bonds (downgraded by the Chinese, at least - and downgraded by others too as I recall, reports of which I can not locate at the time of this writing), and the limited amount of reporting of issues such as the Chinese government’s efforts to protect its financial interests by linking the exchange rate of its currency to the exchange rate of the dollar.
So again I ask, is it the U.S. government (and the Federal Reserve System) and/or ABC News who consider the U.S. general public and network news viewers to be total idiots with absolutely no knowledge of economics and international monetary policy or do these sources of information merely prefer not to report the entire truth? As time has now shown by tonight’s newscast, apparently all of them (ABC News, The Fed, and the U.S. Government) must consider the U.S. public/populace to be completely ignorant of economics and the current realities of international monetary policy. Clearly we can now legitimately ask: Can we no longer trust our news media sources to report the entire truth of any issue to the nation? (A question I have put forth previously, btw. See: http://adamvernontrotter.blogspot.com/2010/05/is-nation-under-siege-could-we-trust.html)
I mean…., concerning truth in reporting by the media as well as the truth regarding the continued devaluation of currency, which is the free nation and which nation is communistic / fascist?
Adam Trotter / AVT
See also:
How Currency Choices 'Made in China' Have Big Impact on U.S. Economy
REPORT AIR DATE: Jan. 18, 2011.
http://www.pbs.org/newshour/bb/business/jan-june11/chinacurrency_01-18.html
"SUMMARY
Economics correspondent Paul Solman looks at the ongoing dispute between the U.S. and China over currency and trade. Amid its trade deficit with China, the U.S. wants to pressure the Chinese to let their currency, the renminbi, rise in value instead of pegging it to the dollar.
PAUL SOLMAN: For many years, China glued its currency to the U.S. dollar. But, starting in 2005, China loosened its grip, letting the value of the dollar fall against the renminbi, some 20 percent over three years.
But, in 2008, the world financial crisis hit, and China reglued the renminbi to the dollar. In the aftermath, China has recovered, while the U.S. economy limps along, our unemployment rate distressingly high."
///
http://en.wikipedia.org/wiki/Fixed_exchange_rate (yea, I know we are not supposed to quote wikipedia)
“…There are no major economic players that use a fixed exchange rate (except the countries using the euro and the Chinese yuan). … Another, less used means of maintaining a fixed exchange rate is by simply making it illegal to trade currency at any other rate. This is difficult to enforce and often leads to a black market in foreign currency. Nonetheless, some countries are highly successful at using this method due to government monopolies over all money conversion. This was the method employed by the Chinese government to maintain a currency peg or tightly banded float against the US dollar. …” Which, as is typical for wikipedia, this information is seemingly contradicted further down the webpage.
///
An of course, there are others that say the Chinese currency is pegged to a ‘basket’ of currencies; but I don’t know how current this article is.
What is the United States Dollar (USD)?
http://www.gocurrency.com/countries/united_states.htm
“…A significant recent development is the action of the People's Republic of China: the renminbi had once been informally and controversially pegged to the dollar (since the mid-1990s, at 1 U.S. dollar = 8.28 Y); however the peg was removed on July 21, 2005. Instead, China has a managed float against a basket of currencies. …”
///
US Credit Rating Downgraded
It was only a matter of time...
http://www.wealthdaily.com/articles/us-credit-rating-downgraded/2594
Leading Chinese credit rating agency downgrades USA government bonds
http://blogs.telegraph.co.uk/finance/ianmcowie/100008566/leading-chinese-credit-rating-agency-downgrades-usa-bonds/
Thursday, November 11, 2010
On The Federal Reserve’s Plan to Buy-Back $600B in U.S. Government Debt…
November 12th, 2010
Devaluing the currency to inflate prices for the upcoming election - or whatever, is most likely not the answer to our economic mess. Funny, even The Fed doesnt seem to understand what probably constitutes much of the problem. Guess I better apply for a job there, huh? Think they will have me? Doubt it, prbbly huh?
So what of The Fed’s plan to buy $600B in gov't debt? Any mid-level economics text book says to throw money at the economy, when faced with a liquidity trap. Why do I not think it will work this time? Which brings us to:
The Adam Vernon Trotter Theory of Business Management - appearing soon at a wall-post or blog-post near you (shortened version soon to be released)!! :)
http://adamvernontrotter.blogspot.com/2010/11/adam-vernon-trotter-theory-of-business.html
Adam V. Trotter / AVT
Devaluing the currency to inflate prices for the upcoming election - or whatever, is most likely not the answer to our economic mess. Funny, even The Fed doesnt seem to understand what probably constitutes much of the problem. Guess I better apply for a job there, huh? Think they will have me? Doubt it, prbbly huh?
So what of The Fed’s plan to buy $600B in gov't debt? Any mid-level economics text book says to throw money at the economy, when faced with a liquidity trap. Why do I not think it will work this time? Which brings us to:
The Adam Vernon Trotter Theory of Business Management - appearing soon at a wall-post or blog-post near you (shortened version soon to be released)!! :)
http://adamvernontrotter.blogspot.com/2010/11/adam-vernon-trotter-theory-of-business.html
Adam V. Trotter / AVT
Thursday, October 14, 2010
The Fed to Buy Back Government Debt, European Central Bank Warns Against War of Currencies. Dollar: Fifteen Year Low Against Yen. Gold: Record High
October 14th, 2010
Yesterday, it was reported on Los Angeles Radio (KNX 1070AM) that the Federal Reserve System (The Fed) plans to buy back some of the Federal government’s outstanding debt. The Fed said this move would hopefully stimulate economic growth - by putting more dollars into the economic markets. Later the same day (or the next morning European time) the European Central Bank warned against perceived currency wars whereby currencies would be continually devalued to gain an advantage in exchange rates relevant to the exporting of goods. This evening, it was reported on San Diego’s Fox Radio affiliate (600 AM) that the dollar hit a fifteen-year low in exchange rates against the Japanese yen. Also today, it was reported that the value of an ounce of gold attained a record high dollar value of approximately thirteen-hundred and seventy-five dollars ($1375/ounce).
Despite the fact that the Federal Reserve System claims no fiduciary responsibility to the American nation, one could argue that the long continued effort by The Fed to forever devalue the dollar will help the American nation and workforce by stimulating exports as the dollar would then be less valued than the currency of foreign nations that buy our exports. However, as the fiat dollar has been devalued for decades on end to date, the continued devaluation is a likely culprit to the continued economic depression to which the nation is currently afflicted. Therefore, any continued devaluation of the dollar is likely another as yet unforeseen debt to be paid by the populace or by our future descendants.
Also worthy of note, to continue decreasing the value of the dollar aids any presidential administration by inflating prices which helps with any economic reporting concerning the Consumer Price Index (CPI) and the Gross Domestic Product (GDP). If the GDP were shown to increase because of the devalued dollar, then the current economic recession/depression officially could be ended by the definition of a recession (which is dependant on a repeatedly decreased GDP). Any official ending of the recession/depression is to the political advantage of any administration in power. But a devalued dollar also increases prices which severely hurts the American people. (Remember when a gallon of gas cost five dollars a few years back? Most of the increased price was probably due to a devalued dollar, not the oil producers trying to gouge us.) However, such a numbers game to reflect a better economy is nothing new - regardless of the presidential election drawing closer. But as The Fed has no stated fiduciary responsibility to the president either, if The Fed moves to better the economic appearances of the presidential administration, one can only wonder what type of relationship truly exists between the White House and The Fed. For instance, do the President and his people have all their asset holdings in gold as well, or is The Fed actually trying to help the American people?
Reiterating the point of many of my previous blogs/diatribes, as The Fed maintains no fiduciary responsibility to the American people and The Fed, of course, has massive gold holdings, one can only make assumptions as to what is the true intent of any actions taken by the U.S. Federal Reserve System. That is, are the actions of The Fed to benefit the American people or to further line the pockets of those in power at The Fed and those in power within our government? As our politicians, court systems, state governments, and lawyers don’t seem to have any distaste for this forever continued devaluing of our currency nor do they seem to have any other difficulties with any actions or on-going policy regime at The Fed, one sooner or later has to assume that the lawyers, state governments, court systems, and politicians must also be profiting by the continued policy regime of the Federal Reserve System – a policy regime which is arguably nearly criminal. As such, I must wonder, do the lawyers, court systems, and politicians have all their asset holdings in gold as well?
Anyway, is anyone out there still waiting for ‘change.’? Well, you just got some change, that is to say, more change in the form of the further-decreased value of the dollar. Sometimes I wonder if by merely insinuating these types of questions as in this blog, whether one may need to seek political asylum in a nearby neighbor nation.
Adam Trotter / AVT
Update, November 9th, 2010:
Over the last few days, it has been widely reported that the Chinese government is warning against this move by the Fed in that such an infusion of dollars, according to the Chinese, will cause widespread instabilities in the [currency and debt] markets. Duh, ya’ think? To their credit, though, the Chinese did catch on before the Fed really took them to the cleaners any further, anyhow. It’s been said that the Chinese have sold off much of their holdings in US Government debt some months ago (back in February), regardless.
PS. For more information on this topic of the Fed's actions and an interesting attempt at interpretation/"translation into plain english" for laymen of the Fed's recent statement, See: http://www.npr.org/blogs/money/2010/11/03/131043062/federal-reserve
PSS. So whose been reading the textbook as to what to do in a liquidity trap? But they still have not hired me. :)
November 11th, 2010,
http://www.msnbc.msn.com/id/40136211/ns/business-personal_finance
Devaluing the currency to inflate prices for the upcoming election - or whatever, is most likely not the answer to our economic mess. Funny, even The Fed doesnt seem to understand what probably constitutes much of the problem. Guess I better apply for a job there, huh? Think they will have me? Doubt it, prbbly huh?
http://adamvernontrotter.blogspot.com/2010/11/on-federal-reserves-plan-to-buy-back.html
Yesterday, it was reported on Los Angeles Radio (KNX 1070AM) that the Federal Reserve System (The Fed) plans to buy back some of the Federal government’s outstanding debt. The Fed said this move would hopefully stimulate economic growth - by putting more dollars into the economic markets. Later the same day (or the next morning European time) the European Central Bank warned against perceived currency wars whereby currencies would be continually devalued to gain an advantage in exchange rates relevant to the exporting of goods. This evening, it was reported on San Diego’s Fox Radio affiliate (600 AM) that the dollar hit a fifteen-year low in exchange rates against the Japanese yen. Also today, it was reported that the value of an ounce of gold attained a record high dollar value of approximately thirteen-hundred and seventy-five dollars ($1375/ounce).
Despite the fact that the Federal Reserve System claims no fiduciary responsibility to the American nation, one could argue that the long continued effort by The Fed to forever devalue the dollar will help the American nation and workforce by stimulating exports as the dollar would then be less valued than the currency of foreign nations that buy our exports. However, as the fiat dollar has been devalued for decades on end to date, the continued devaluation is a likely culprit to the continued economic depression to which the nation is currently afflicted. Therefore, any continued devaluation of the dollar is likely another as yet unforeseen debt to be paid by the populace or by our future descendants.
Also worthy of note, to continue decreasing the value of the dollar aids any presidential administration by inflating prices which helps with any economic reporting concerning the Consumer Price Index (CPI) and the Gross Domestic Product (GDP). If the GDP were shown to increase because of the devalued dollar, then the current economic recession/depression officially could be ended by the definition of a recession (which is dependant on a repeatedly decreased GDP). Any official ending of the recession/depression is to the political advantage of any administration in power. But a devalued dollar also increases prices which severely hurts the American people. (Remember when a gallon of gas cost five dollars a few years back? Most of the increased price was probably due to a devalued dollar, not the oil producers trying to gouge us.) However, such a numbers game to reflect a better economy is nothing new - regardless of the presidential election drawing closer. But as The Fed has no stated fiduciary responsibility to the president either, if The Fed moves to better the economic appearances of the presidential administration, one can only wonder what type of relationship truly exists between the White House and The Fed. For instance, do the President and his people have all their asset holdings in gold as well, or is The Fed actually trying to help the American people?
Reiterating the point of many of my previous blogs/diatribes, as The Fed maintains no fiduciary responsibility to the American people and The Fed, of course, has massive gold holdings, one can only make assumptions as to what is the true intent of any actions taken by the U.S. Federal Reserve System. That is, are the actions of The Fed to benefit the American people or to further line the pockets of those in power at The Fed and those in power within our government? As our politicians, court systems, state governments, and lawyers don’t seem to have any distaste for this forever continued devaluing of our currency nor do they seem to have any other difficulties with any actions or on-going policy regime at The Fed, one sooner or later has to assume that the lawyers, state governments, court systems, and politicians must also be profiting by the continued policy regime of the Federal Reserve System – a policy regime which is arguably nearly criminal. As such, I must wonder, do the lawyers, court systems, and politicians have all their asset holdings in gold as well?
Anyway, is anyone out there still waiting for ‘change.’? Well, you just got some change, that is to say, more change in the form of the further-decreased value of the dollar. Sometimes I wonder if by merely insinuating these types of questions as in this blog, whether one may need to seek political asylum in a nearby neighbor nation.
Adam Trotter / AVT
Update, November 9th, 2010:
Over the last few days, it has been widely reported that the Chinese government is warning against this move by the Fed in that such an infusion of dollars, according to the Chinese, will cause widespread instabilities in the [currency and debt] markets. Duh, ya’ think? To their credit, though, the Chinese did catch on before the Fed really took them to the cleaners any further, anyhow. It’s been said that the Chinese have sold off much of their holdings in US Government debt some months ago (back in February), regardless.
PS. For more information on this topic of the Fed's actions and an interesting attempt at interpretation/"translation into plain english" for laymen of the Fed's recent statement, See: http://www.npr.org/blogs/money/2010/11/03/131043062/federal-reserve
PSS. So whose been reading the textbook as to what to do in a liquidity trap? But they still have not hired me. :)
November 11th, 2010,
http://www.msnbc.msn.com/id/40136211/ns/business-personal_finance
Devaluing the currency to inflate prices for the upcoming election - or whatever, is most likely not the answer to our economic mess. Funny, even The Fed doesnt seem to understand what probably constitutes much of the problem. Guess I better apply for a job there, huh? Think they will have me? Doubt it, prbbly huh?
http://adamvernontrotter.blogspot.com/2010/11/on-federal-reserves-plan-to-buy-back.html
Wednesday, January 13, 2010
Venezuela’s Hugo Chavez Follows the Federal Reserve System’s Lead?
January 13th, 2010
The television news reported yesterday about the economic turmoil in Venezuela resulting from that nation’s president halving the value of the South American country’s currency (the bolivar) essentially overnight. I wonder if President Chavez has been studying the U.S. Federal Reserve System and decided to follow the lead of the Fed? Surely the value of the U.S. Dollar has also been halved over recent years. I wouldn’t be surprised if the Venezuelan President figured that if it works for the United States, maybe halving the value of the nation’s currency would also work for Venezuela. However, unlike in the United States where decreasing the value of the currency artificially inflated prices and therefore for a long time held-off a falling Gross Domestic Product (GDP) and subsequently prevented any classification of our Nation being in any recession, in Venezuela it was ordered that prices were not allowed to rise to reflect the devalued Venezuelan currency thereby attempting to keep inflation under control – whether such threatened controls work in reality or not in that country remains to be seen.
Regardless of the real impact of the South American country's fiscal policy in this regard, at least the Venezuelan leader seems to care about his citizens to some extent anyhow by his fascist-like threats of legal actions and confiscations of businesses that raise prices – unlike here in the United States where our elected leaders only seem mostly to care about the well being of our bankers.
AVT
PS. Also see: Venezuela Devalues Bolivar: What Next?, by Allan Nichols, 13 Jan 10 http://torontostar.morningstar.ca/globalhome/industry/news.asp?articleid=321968
The television news reported yesterday about the economic turmoil in Venezuela resulting from that nation’s president halving the value of the South American country’s currency (the bolivar) essentially overnight. I wonder if President Chavez has been studying the U.S. Federal Reserve System and decided to follow the lead of the Fed? Surely the value of the U.S. Dollar has also been halved over recent years. I wouldn’t be surprised if the Venezuelan President figured that if it works for the United States, maybe halving the value of the nation’s currency would also work for Venezuela. However, unlike in the United States where decreasing the value of the currency artificially inflated prices and therefore for a long time held-off a falling Gross Domestic Product (GDP) and subsequently prevented any classification of our Nation being in any recession, in Venezuela it was ordered that prices were not allowed to rise to reflect the devalued Venezuelan currency thereby attempting to keep inflation under control – whether such threatened controls work in reality or not in that country remains to be seen.
Regardless of the real impact of the South American country's fiscal policy in this regard, at least the Venezuelan leader seems to care about his citizens to some extent anyhow by his fascist-like threats of legal actions and confiscations of businesses that raise prices – unlike here in the United States where our elected leaders only seem mostly to care about the well being of our bankers.
AVT
PS. Also see: Venezuela Devalues Bolivar: What Next?, by Allan Nichols, 13 Jan 10 http://torontostar.morningstar.ca/globalhome/industry/news.asp?articleid=321968
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