Wednesday, September 30, 2009

Greenspan calls economy a "dull face" we say If socialism is the new “N” word than it looks like , “RECESSION” has become the new “F” word.

According to Bloomberg -- Former FED Chief Alan Greenspan said, “ he sees the U.S. economy slowing next year as the surge in stocks comes to an end.”“The odds are we flatten out,” Greenspan said today in a Bloomberg television interview, referring to the equity market. “That flattening out will put some sort of dull face on 2010.”
Hummmm “dull face” that’s what they are calling it ? Lets see according to the Commerce Department GDP, which measures the total goods and services output within U.S. borders, fell at a 0.7 percent annual rate instead of the 1.0 percent decline reported last month. This is the fourth straight quarter of decline in real GDP. While the Institute for Supply Management said its business barometer fell to 46.1 in September from 50.0 in August; indicating a further contraction.( A reading above 50 indicates expansion.) ADP Employer Services showed private employers cut 254,000 jobs in September, more than the 210,000 layoffs financial markets had been expecting.

So Mr Greenspan it seems like a little more than a “dull face” what ever that is ,but I have one question ; If socialism is the new “N” word than it looks like , “RECESSION” has become the new “F” word.

Odds are unless there are major changes in policy by the US Government and the Obama administration we are looking at a prolonged period of stagnation for the forcible future.

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Tuesday, September 29, 2009

H.R. 1207, the Federal Reserve Transparency Act of 2009, also known as the “Audit the Fed” bill.

Washington, Sep 29 -

As many of you may know, I am a cosponsor of H.R. 1207, the Federal Reserve Transparency Act of 2009, also known as the “Audit the Fed” bill. I strongly support transparency of the Fed, and wanted to take a moment to tell you about this important issue.

Preserving the Federal Reserve’s independence in conducting its monetary policy is cited by many as a reason to oppose the Federal Reserve Transparency Act. But Allan Meltzer, one of the most prominent academic experts on Fed policy and history, recently declined to join others in signing a petition to preserve the central bank’s independence because, as he said, “the Fed has rarely been independent and it strikes me that being independent is very unlikely,” in the current environment.

According to a recent Wall St. Journal article, Meltzer went on to explain that history is replete of instances when the Fed bended to political pressure, keeping interest rates low in the 1930s and 40s to help finance the New Deal and World War II, for instance, and in the 1960s to finance Great Society spending, which later led to inflation.

I’m looking to explore this issue more fully in the near future – How independent is the Fed in reality? Because if history shows that the Fed has never truly been an independent entity, then there’s no independence to protect. Which then leads us to ask, ‘What is it, actually, that some people are so interested in protecting?’

Additionally, growing the power of the Federal Reserve has been the center of many proposals for financial services regulatory reform. This greatly concerns me, and I have asked President Obama for an investigation of the Federal Reserve prior to contemplating expansion of its power.

In a bipartisan letter signed by 16 of my colleagues, I wrote, “the financial services regulatory reform proposal that your Administration put forward contains within it provisions that would grant the Federal Reserve considerable new powers and oversight over a broad swath of industry in this country in order to monitor and take action to reduce “systemic risk” in our economy. Before Congress, working with the Administration, moves forward on granting the Federal Reserve any additional power, however, the actions of the Federal Reserve related to the Bank of America/Merrill Lynch deal need to be fully investigated.”

Given the events of the last few years and the resulting financial and economic turmoil in which our country now finds itself, it is appropriate that the Obama administration, Republicans and Democrats in Congress, and many other public and private entities, engage in a wide-ranging debate about what reforms are needed for our financial regulatory system. Momentum is now beginning to form to enact legislation to implement reforms. No additional powers should be contemplated for the Federal Reserve, however, until this issue is thoroughly investigated and the Federal Reserve is cleared of any wrongdoing. As mentioned above, even if it is cleared, we must ask ourselves, and we believe the American people are asking themselves, do we really want to centralize even more power in this entity?


Scott Garrett
Member of Congress

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Thursday, September 24, 2009

Hair Care Bomber and Breaking the Buck !

Nothing could be more symbolic for the systematic failure of the policies of Barrack Obama than the continued talk by global leaders of removing the Dollar as the worlds reserve currency . An explosion of US Debt ,a declining economy ,no US job growth ,falling real estate values and an enormous growth in the size and scope of the US Government has lead to a continued decline in the value of the dollar and a suspicion the the US Government's backing is no longer worth very much.

The G20 lead by Beijing has begun to call for a new global currency as an alternative to the US dollar as the US deficit rocketed. The White House it self is estimates US Debt could reach nine trillion dollars over a decade.

The inability of the 70's Generation to offer any intelligent leadership has created a climate of catastrophic leadership failure on all levels. Not since the Carter Administration has the US global position been so weakened . It appears to be only a matter of time before events take a turn for the worse . This weeks terror threat and multiple arrests triggered by the 'hair care" bomber seem to be a sign of things to come. The empty talk may go well with the pro big government US media and rambling talk show hosts but does little to solve to days pressing problems.

On this blog I have long warned that the philosophy of the 70's Generation is the philosophy of failure. I have attempted several times to online what I see as the coming crisis. The dollar is now key . A collapse will signal the beginning of the long term demise of the US economy and perhaps the demise of freedom it self.

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