Did Bernanke Prevent Another Depression? - By Frank Shostak (23/4/12) PDF Print E-mail
Frank Shostak   
Monday, 23 April 2012 08:31

Mises Daily

In a lecture given at George Washington University on March 27, 2012, the chairman of the Fed said that the US central bank's aggressive response to the 2007–2009 financial crisis and recession helped prevent a worldwide catastrophe. Various economic indicators were showing ominous signs at the time. After closing at 3.1 percent in September 2007, the yearly rate of growth of industrial production fell to minus 14.8 percent by June 2009. The yearly rate of growth of housing starts fell from 20.5 percent in January 2005 to minus 54.8 percent in January 2009.

Also, retail sales came under severe pressure — year on year, the rate of growth fell from 5.2 percent in November 2007 to minus 11.5 percent by August 2008. The unemployment rate jumped from 4.4 percent in March 2007 to 10 percent by October 2009. During this period, the number of unemployed people increased from 13.389 million to 15.421 million — an increase of 2.032 million.

In response to the collapse of the key economic data and a fear of a financial meltdown, the US central bank aggressively pumped money into the banking system. As a result, the Federal Reserve balance sheet jumped from $0.884 trillion in February 2008 to $2.247 trillion in December 2008. The yearly rate of growth of the balance sheet climbed from 1.5 percent in February 2008 to 152.8 percent by December of that year. Additionally the Fed aggressively lowered the federal-funds rate target from 5.25 percent in August 2007 to almost nil by December 2008.



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Who Is Lying: The Federal Reserve Or... The Federal Reserve? And Why Stalin "Lost" - By Tyler Durden (23/4/12) PDF Print E-mail
Tyler Durden   
Monday, 23 April 2012 08:30

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The Truth About Excess Reserves - By Azizonomics (23/4/12) PDF Print E-mail
Azizonomics   
Monday, 23 April 2012 08:28

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Harvey Organ: Get Physical Gold & Silver! - By Chris Martenson (23/4/12) PDF Print E-mail
Chris Martenson   
Monday, 23 April 2012 08:25

Zero Hedge

Harvey Organ has been analyzing the bullion markets closely for decades. The quality and accuracy of his work is respected enough to have earned him an invitation to testify before the CFTC on position limits for precious metals back in 2010.

And he minces no words: gold and silver prices are suppressed. With extreme prejudice.

In this detailed interview, Harvey explains to Chris the mechanics how of he sees this manipulation occurring, why he predicts this fraudulent pricing scheme will collapse soon, and why it's critical to be holding physical (vs paper) bullion when it does.

The real suppression of the metals started in 1988. That’s when the leasing game started and was invented by J.P. Morgan.

These guys would go around to the mining companies and say “Listen, I’m going to pay you for your gold in the ground and I will sell it. You just pay me as you bring it out.” So that was cheap financing to the miners. Barrick, the biggest mining company of them all, went in on this and it financed a lot of Nevada projects.



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Floating Exchange Rates: Unworkable And Dishonest - By Keith Weiner (23/4/12) PDF Print E-mail
Keith Weiner   
Monday, 23 April 2012 08:23

Zero Hedge

Milton Friedman was a proponent of so-called “floating” exchange rates between the various irredeemable paper currencies that he promoted as the proper monetary system. Many have noted that the currencies do not “float”; they sink at differing rates, sometimes one is sinking faster and then another. This article focuses on something else.

Under gold, a nation or an individual cannot sustain a deficit forever. A deficit is when one consumes more than one produces. One has a negative cash flow, and eventually one runs out of money. The economy of a household or a national is therefore subject to discipline—sooner or later.

Friedman asserted that floating exchange rates would impose the same kind of forces on a nation to balance its exports and imports. He claimed that if a nation ran a deficit, that this would cause its currency to fall in value relative to the other currencies. And this drop would tend to reverse the deficits as the country would find it expensive to import and buyers would find its goods cheap to import.

Friedman was wrong.



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