Have nothing to do with the [evil] things that people do, things that belong to the darkness. Instead, bring them out to the light... [For] when all things are brought out into the light, then their true nature is clearly revealed...

-Ephesians 5:11-13

Tag Archives: Alan Greenspan

U.S. Economy Adds Another 204,000 Jobs in April

This article appeared online at TheNewAmerican.com on Wednesday, May 2, 2018: 

The booming U.S. economy added another 204,000 jobs in April, down slightly from the (revised) 228,000 jobs it created in March, but still more than forecasters predicted. Those forecasters have consistently underestimated the health of the economy and their record remains unbroken. Economists polled by Econoday expected 190,000 new jobs in April.

This is the sixth straight month of job growth over 200,000 which continues to confound observers. “The labor market continues to maintain a steady pace of strong job growth with little sign of a slowdown,” said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute.

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Trump Pick for Management & Budget Talks Raising Retirement Age

This article appeared online at TheNewAmerican.com on Wednesday, January 25, 2017:

Representative Mick Mulvaney (R-S.C., shown), President Donald Trump’s pick to head up the Office of Management and Budget (OMB), touched the famous “third rail” of American politics during his confirmation hearing on Tuesday. Testifying before the Senate Budget Committee, Mulvaney was pressed hard for his views on Social Security by Senator Lindsay Graham (R-S.C.): “Do you think we need to look at adjusting the [retirement] age yet again because we live longer?”

Replied Mulvaney, “I do, yes sir.”

His response was unsettling to Senator Debbie Stabenow (D-Mich.), who declared,

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Federal Reserve Notes Soon to Become Irrelevant in Oklahoma

This article first appeared at The McAlvany Intelligence Advisor on Monday, June 9, 2014:

 

Republic of Hawaii Banknote for 20 gold dollar...

Republic of Hawaii Banknote for 20 gold dollars, 1895. (Photo credit: Wikipedia)

Something that the lamestream media missed entirely happened on Wednesday, June 4, in Oklahoma: the governor signed into law a bill affirming what is already guaranteed to each state in the US Constitution: that gold and silver coin are legal tender. Historians looking back may recall that day as the day the Federal Reserve’s hegemony over money ended.

Article I, Section 10, the U.S. Constitution states simply that

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Oklahoma is the next state to Affirm gold and silver as Legal Tender

1907 Double Eagle, Liberty Head, Obverse

1907 Double Eagle, Liberty Head, Obverse (Photo credit: Wikipedia)

On Wednesday, June 4, Oklahoma joined Utah, Texas and Louisiana in affirming that gold and silver coins are (as they always have been under the Constitution) legal tender in the payment of debts in the state. On the surface this seems almost silly: affirming a right that already exists in Article I, Section 10 of the U.S. Constitution. But it is much more than that.

 

Senate Bill 862 which Oklahoma Governor Mary Fallin signed into law this week says:

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There is no Debt Ceiling in place under the new Law

A closer look at what actually passed late Wednesday night reveals that the limit on the national debt wasn’t raised, it was eliminated altogether, at least until February 7th. What actually happened is that

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The Fed Needs a New Leader, says the Wall Street Journal

Sometimes I seek opportunity. Sometimes opportunity is thrust into my lap. The latter just happened with this unbelievable screed written by Paul Farrell today at the Wall Street Journal‘s MarketWatch. He decries the failed attempts by Fed governors going all the way back to

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Debt Ceiling Debate Now Set for February 2013

The debt ceiling is expected to be reached, officially, on Monday, December 31st, when the national debt reaches $16.4 trillion. Unofficially, with various “extraordinary measures” employed, the Treasury won’t bump into the real limit until early February.

Those measures will give the Treasury some $200 billion in “headroom” and since the government is borrowing $100 billion every month, the math is easy. The question then becomes:

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Fed’s announcement changes its words, not its actions

It’s hard for me to keep a civil tongue when chief alchemist Ben Bernanke makes an announcement like this. He’s going to buy more government securities in order to lower the unemployment rate, but this won’t affect the inflation rate. If it does, he’ll stop.

For the first time, the Fed has announced a goal for the unemployment rate. By saying that it anticipates that it will keep interest rates extremely low until the unemployment rate falls to 6.5% (as long as inflation doesn’t get out of control), the Fed has become more aggressive about turning the economy around.

It bears repeating:

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Proposed Changes to US Currency Symptom of Much Larger Disease

US Currency in UV, visible and IR light

US Currency in UV, visible and IR light (Photo credit: xxv)

Within days of each other, two announcements concerning the future of the US currency appeared in the popular press, and each avoided any mention whatsoever of the primary driver of the changes.

First was the announcement on November 26th from Secretary of the Treasury Timothy Geithner that the U.S. Mint will begin removing pennies and nickels from circulation starting the first of the year, allegedly that they’re too expensive to make. It costs the mint nearly 5 cents to make each penny while it costs more than 16 cents to make a nickel. This is costing the mint a lot of money, an estimated $187 million last year alone.

Two days later CNN reported that the Government Accountability Office (GAO) has called on the Congress to stop printing one-dollar bills and switch instead to one-dollar coins. The GAO claimed that such a move could actually make the government some money:

A $1 coin typically costs about 30 cents for the U.S. Mint to produce, but then the government can sell them to Americans for a dollar each. That financial gain is called seigniorage, and over a period of 30 years, it could [make] the U.S. government about $4.4 billion, the GAO said.

Avoiding the real issue, the GAO said that although the coins cost more to make, they would last longer, thus turning a profit to the government:

We continue to believe that replacing the note with a coin is likely to provide a financial benefit to the government if the note is eliminated and negative public reaction is effectively managed through stakeholder outreach and public education.

Unfortunately there is little likelihood that any of that “outreach” and “education” will include any attempt at explaining why the change is necessary.

The real issue is the declining purchasing power of the currency. And that goes back to the year 1913 when the Federal Reserve System was

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One Bear’s Prediction: Massive Market Selloff Coming

Bear Market

Bear Market (Photo credit: AZRainman)

Hard-money adviser Marc Faber, best known as publisher of the Gloom, Doom & Boom Report and consequently often referred to as “Dr. Doom,” told CNBC on Tuesday that the stock market could decline by 20 percent. He doesn’t think it will have anything to do with the “fiscal cliff” but instead will reflect poor earnings as bellwether companies struggle to be profitable in the continuing recession:

I don’t think markets are going down because of Greece, I don’t think markets are going down because of the “fiscal cliff” — because there won’t be a “fiscal cliff.”

The market is going down because corporate profits will begin to disappoint, the global economy will hardly grow next year (or even contract)…

That is the reason why stocks, from the highs of September of 1,470 on the S&P [Standard and Poor’s 500 Index], will drop at least 20 percent, in my view.

Faber noted that shares of Apple, Inc. are already off more than 20 percent since September, while shares of Amazon.com Inc., McDonald’s Corporation and Google, Inc. have each lost more than 8 percent of their market value during that period.

Taking a longer look, however, Dr. Doom is even more bearish. He thinks equities could

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Hypocrisy, Thy Name is Greenspan!

Former Chairman of the Federal Reserve Alan Gr...This is simply too much for me! Hypocrisy, thy name is Greenspan! Imagine him criticizing the Fed for its inability to restart the economy from the implosion of the bubble he created while chairman of the Fed!

These clowns only know two speeds: fast and faster. Or as some other wag has put it, the Fed has two tools: talk and ink. Period.

Feisty, Fearless Economist Anna Schwartz Dead at 96

Anna Schwartz by David Shankbone

Best known as the co-author, along with Nobel Prize-winning economist Milton Freidman, of A Monetary History of the United States, 1867-1960, Anna Jacobson Schwartz died on Thursday, June 21, in New York City at age 96.

A brilliant economist in her own right, she provided the background, the research, and so much of the thinking behind the 859-page A Monetary History that Friedman claimed that “Anna did all the work, and I got most of the recognition.” Considered by many classical economists as the magnum opus on monetary policy (the impact of money supply on economic behavior), by itself it shifted the blame for the Great Depression from the statists’ claim that it was due to excessive laissez-faire capitalism in the 1920s to the interventions by the Federal Reserve that caused the Great Depression and that greatly exacerbated both its depth and duration. So powerful were the conclusions that one of the book’s chapters, “The Great Contraction, 1929-33,” was published as a stand-alone paperback in 1965, and the book itself was hailed by the Cato Institute as one of the most influential economics books of the 20th century. Even Federal Reserve Chairman Ben Bernanke admitted that A Monetary History “transformed the debate about the Great Depression.”

Accolades abounded following the announcement of her passing, even from those who parted ways with her on the role of central banking in a modern economy and the Federal Reserve in particular. George Selgin, a senior fellow at Cato, remembers Schwartz as being candid and uncompromising: “Anna never held a punch, and when she threw one, it landed square on target.” Robert Higgs, a scholar at the Independent Institute, noted, 

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Speech: Bernanke Fails at Transparency, Rails at Gold Standard

M6 - Money

When Federal Reserve Chairman Ben Bernanke donned his professorial cap and addressed 30 undergraduate students at George Washington University on Tuesday, he claimed it was all in the interest of transparency. According to the New York Times, “The Fed is concerned that it is neither loved nor understood by many Americans, and that public anger could lead to constraints on its powers.”

A close look at his actual presentation, augmented by slides, confirms his attempt to direct the students’ attention away from the Fed’s obvious dangers, faults, and failures and instead concentrate on its alleged virtues.

For example, his attack on the gold standard was filled with falsehoods and half-truths that failed to convince, only to confuse:

The gold standard as an alternative to a central bank: The gold standard sets the money supply and [the] price level generally with limited central bank intervention.

What the professor fails to state is that there is the gold standard and there is a paper standard that can only be enforced when a central bank is given a monopoly over what citizens may use as money. He fails to make clear that it’s the quantity of gold that “sets the money supply” and from that is derived the value of each piece, which is reflected in its purchasing power in the marketplace. It’s the citizen, freely accepting, using and exchanging gold for goods and services in the marketplace, who sets the price level. Buried in the comment “with limited central bank intervention” is the core of the problem: Bernanke doesn’t want people making those choices and decisions for themselves. Those decisions must be left to experts like

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Big Banks Gamble on Derivatives at Taxpayers’ Risk

Risk Tournament

When Bank of America announced that it was moving its derivatives-laden portfolio at its subsidiary Merrill Lynch over to its bank holding company, it said it was merely responding to pressure from some of its partners to take advantage of the holding company’s higher credit rating. It would also reduce the need for the bank to post an additional $3.3 billion in collateral because of the recent downgrade it suffered at the hands of Moody’s last month.

But the real reason, according to Bloomberg, is that the FDIC insures the bank but not Merrill Lynch, and in the event of a failure in

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Why is Gold Over $1700 an Ounce?

A London Good Delivery bar, the standard for t...

Image via Wikipedia

With gold bouncing up from $1,668 an ounce on Friday, August 5 to $1,778 on Tuesday, August 9, it was the biggest three-day rally since the start of the great recession in 2008. At the same time, the equities markets were falling precipitously, losing over 600 points on the Dow on Monday alone. What is the connection?

The easy answer is fear, loss of confidence, and

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Fed Insiders Selling Inside Information

Modern-day meeting of the Federal Open Market ...

Image via Wikipedia

In an effort to plug leaks at the Federal Reserve, the U.S.’s central bank issued a statement yesterday that members of the Federal Open Market Committee “will refrain” from sharing insider information “with any individual, firm, or organization who could profit financially from…that information.”

Since the establishment of the Federal Reserve in 1913, its operations and decision-making processes have been deliberately opaque. In the 1990s the minutes of its policy meetings weren’t made public for

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Greek Debt Default All but Certain

International Monetary Fund [oct 25]

Image by JavierPsilocybin via Flickr

During his interview with Charlie Rose on Bloomberg TV Monday night, Alan Greenspan, former chairman of the Federal Reserve, commented that the chances of Greece defaulting are “so high that you almost have to say there’s no way out…the chances of Greece not defaulting are very small.”

When Greece accepted the invitation to join the European Union in January, 2001, below-market interest rates allowed Greek banks to

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Bloodbath Coming?

Mel Gibson as William Wallace anachronisticall...

Image via Wikipedia

White House deficit commission co-chairman Alan Simpson spoke at a Christian Science Monitor roundtable on Friday morning saying, “I can’t wait for the blood bath in April. It won’t matter whether two of us [on the commission] have signed this or 14 or 18. When debt limit time comes, they’re going to look around and say, ‘What…do we do now? We’ve got guys [House freshmen] who will not approve the debt limit increase unless we give ’em a piece of meat, real meat, off of this package.’ And boy the blood bath will be extraordinary.”

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Fed Celebrates Its 100th Birthday

Modern-day meeting of the Federal Open Market ...

Image via Wikipedia

In a remarkable show of both contempt and hubris, the Federal Reserve System announced that it will be celebrating its 100th birthday at exactly the same place where it secretly started, in Jekyll Island, Georgia.

The first meeting was carefully concealed from the public, as attendee Frank Vanderlip, President of National City Bank of New York (representing Rockefeller and Kuhn-Loeb banking interests) noted later:

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Study: VAT Will Cost More Jobs, Reduce Living Standards

The VAT cometh

Image by wstera2 via Flickr

Time is running out on the Obama administration to pass a value-added tax: The mid-term elections are two weeks away with Democrats anticipating heavy losses, the lame-duck session is due to start on November 15, President Obama’s National Commission on Fiscal Responsibility and Reform publishes its report on December 1, and Congress already faces a long list of “must-pass” legislation. A just-released study about the negative impacts of a VAT isn’t going to help.

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Many of the articles on Light from the Right first appeared on either The New American or the McAlvany Intelligence Advisor.
Copyright © 2018 Bob Adelmann