Friday, July 17, 2009

Obamas Golden Road To Destruction


Follow the Yellow Gold Road....

Let’s start with the numbers. Why is a first term Senator pulling down almost $300,000 a year from Goldman Sachs.

Follow the Yellow Gold Road...

Abomanation Inaugeration

Follow the Yellow Gold Road...

Tax Cheat Tim

Follow the Yellow Gold Road...

Glen Beck explains the Yellow Gold Road

A Revenge Crash, Ahead If We Audit The Fed?

Fed chairman Ben Bernanke is an academic. Before joining the Federal Reserve, he was chairman of the economics department at Princeton University. He has written extensively on the Great Depression. He knows the financial history of central banking in America. He certainly knows the history of the battle over central banking that took place between President Andrew Jackson and Nicholas Biddle.

At the age of 37, Biddle was named president of the Second Bank of the United States. Trouble started for Biddle, and the bank, after Andrew Jackson was elected president. Jackson believed that "the world is governed too much," and was deeply suspicious of banks, especially of central banks.

On October 1, 1833, Jackson decreed that no more government money could be deposited into the bank. Thus weakening the banks political power. The bank was not rechartered.

Biddle was furious. In an act of revenge, he squeezed credit out of the banking system dramatically. It led to the Panic of 1837. Hundreds of banks closed. And resulted in a five year depression.

Now, let's move back to the current day. Bernanke is under pressure from many directions. There is a Congressional investigation of Bernanke's involvement in the Bank America/Merrill Lynch merger. There are widespread rumors that Larry Summers will be named to replace Bernanke when his term is up in January 2010. And Ron Paul is putting so much pressure on the Fed with his "audit the Fed" campaign that the Fed has hired a lobbyist to deal with Congress.

The future does not look bright for Bernanke in the catbird seat at the Federal Reserve. So what does this have to do with Biddle?

Suddenly, the Fed has stopped printing money, again. Ater climbing at a rate of 15% annually, it has slowed to a crawl of under 3% (3 month annualized M2 nsa).

Does Bernanke believe his days are numbered as head of the Fed? Is this money slowdown a parting gift from Bernanke to Obama and Summers? Is he setting up a Biddle type revenge crash of the economy?

He knows the history. He knows how to do it, and money growth is slowing in Biddle like fashion.

Stay tuned. I don't know why Bernanke is slowing money supply, like he did last summer, but a revenge crash can certainly be added to the pile of possibilities.
Again I ask you why don't the Democrats want to Audit The Fed?

In the United States, the term is sometimes used as a pejorative to imply that a person is ignorant and thus easily swayed (made 'useful') toward causes that are against their own interest, or what they would consider to be the greater good, were they better-educated.

The term is also sometimes used by anarchists and other radicals to describe groups and individuals whose ideology is alleged to be excessively deferential to a government or authoritarian political movement. Useful Idiots! The Obamageddon has simply undertaken a massive redistribution of wealth from the little guy to the big boys. That is not stimulus. That is robbery.

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