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Federal Reserve Issues a Toothless Report on the Big Banks

Written by Gary North on August 20, 2013

The Federal Reserve’s primary function since 1914 is to protect large American banks. The FED is the enforcement agency in a banking cartel in which the largest banks possess most of the capital. Yesterday, the FED issued a report on the lack of capital — too much leverage — of America’s largest banks. The report […]

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Summers vs. Yellen: Tweedledumb vs. Tweedledee

Written by Gary North on August 19, 2013

The media are doing their best to create interest in who will be Bernanke’s replacement: Lawrence Summers or Janet Yellen. Summers is a dove. Yellen is a dove. Summers has made a few statements saying that QE has limits. But no one expects the policy to go on forever. Yellen has voted with Bernanke every […]

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42nd Anniversary: The Day Nixon Killed the Gold Standard

Written by Gary North on August 15, 2013

It was 42 years ago today, on a Sunday, that President Richard Nixon went on television and announced to the American people that he was closing the gold window the next day, and imposing full-scale price and wage controls on the American economy. He signed an executive order. Congress had nothing to say about it, […]

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The Taper Trap

Written by Gary North on August 13, 2013

The big question these days is this: “When will the Federal Reserve System start to taper off its purchases of U.S.Treasury debt and Fannie/Freddie debt?” The commonly held view is next month. A Reuter’s reporter went up to David Kotok’s annual gathering at Leen Lodge in Maine. He brings in 50 or so big names […]

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The FED’s Dilemma, Nashville Style

Written by Gary North on August 12, 2013

Country music legend Merle Hazard lays out the prospects. How excessive are those reserves? The St. Louis Federal Reserve Bank is sufficiently worried about this quandary that it has discontinued publishing the FRED chart on excess reserves. I can hardly blame them. Here is their operating presupposition: “Out of sight, out of mind.” http://bit.ly/FRED-dead

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The FED’s Money Trap

Posted on August 12, 2013

The Federal Reserve, and therefore the economy, is caught on the horns of a dilemma of our own making. ZIRP (zero interest rate policy) and the aggressive pumping of money (upwards of $85 billion a month) into the financial system have tripled our money supply. If it weren’t for nearly stagnant money velocity (MZ), we […]

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Consumer Spending Flattens: Stagnation

Written by Gary North on August 9, 2013

A Gallup pol, reports that U.S. consumer spending went flat in July. The poll revealed a pattern that has gone on for five months. We know that the economic recovery is stalled. This is reflected in the poll data. The report is published here: http://bit.ly/14zaUm9. This was a major poll. Gallup polled 14,000 people, July […]

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Bernanke, Coolidge, and Buchanan: On Timing Your Departure

Written by Gary North on August 5, 2013

In American history, there have been two Presidents who have been perceived as time-servers who knew that a crisis was coming: James Buchanan and Calvin Coolidge. Buchanan did not get out in time. Coolidge did. Buchanan is generally rated by American historians as among the worst Presidents in American history. This has been true ever […]

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FED-Watching Media Are Still Totally Blind

Written by Gary North on August 1, 2013

Yesterday, the Federal Open Market Committee issued its boilerplate announcement that it issues every six weeks: no change. The FOMC will continue to counterfeit $85 billion a month for the foreseeable future. I posted its press release here under the title, “Federal Reserve: Same Old, Same Old.” Today, an unknown newspaper reporter for the Los […]

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