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: Central Bank

The Internet: Gutenberg Press 2.0

In a remarkable coalescence of time and circumstance, Michael Hart typed the Declaration of Independence into his computer on July 4th, 1971, Independence Day, and launched Project Gutenberg,

http://www.gutenberg.org/    Project Gutenberg

the world’s largest non-profit digital library available on the Internet.

http://www.nytimes.com/2011/09/09/business/michael-hart-a-pioneer-of-e-books-dies-at-64.html?_r=3&pagewanted=2   the world’s largest digital library

On his way home from a fireworks display, Hart stopped in at a grocery store and was given a copy of the Declaration of Independence, printed on parchment. He typed the text into his computer, intending to send it as an email to his friends on Arpanet. A colleague persuaded him that his message would cause the system to crash and so Hart merely posted a note that the full text could be downloaded instead. And thus, according to the obituary noting his passing on September 6th, 2011 in the New York Times, “Project Gutenberg was born.”

http://www.gutenberg.org/   Project Gutenberg

Project Gutenberg, with more than 38,000 free eBooks available online, represents Hart’s goal to “encourage the creation and distribution of e-books to help break down the bars of ignorance and illiteracy.” Even in its infancy Hart saw the potential, according to the Times, of “overturning all established power structures.” (emphasis added)

It is doubtful that Hart in 1971 had any idea of how the growth of the Internet would impact the world, just as the son of a cloth merchant in the small German town of Mainz, Johannes Gensfleisch zur Laden zum Gutenberg,

http://en.wikipedia.org/wiki/Johannes_Gutenberg   Gutenberg

would have any idea of how his invention of the moveable-type printing press in 1436 would impact his world. Not only is the Gutenberg press responsible for the printing revolution that spread across Europe and the world, it had enormous impact in the flowering of the Renaissance, the Protestant Reformation and the Scientific Revolution. It was responsible for the formation of the basis for the modern market economy, the development and spread of the concept of national sovereignty, and the revolution leading to the Declaration of Independence and the establishment of the American republic.

Gutenberg’s first project was the printing of 180 copies of the Bible, each of which sold for much less than a handwritten Bible which could take a single scribe more than a year to complete. Within six years there were 1000 copies in print.

http://thedailybell.com/2645/Martin-Luther   there were 1000 copies in print

As his printing press was copied and spread throughout the continent,

http://en.wikipedia.org/wiki/Global_spread_of_the_printing_press   spread    through the continent

by the year 1500 one thousand printing presses were in operation and had already produced more than eight million books. By 1600 that number had grown more than twenty-fold to between 150 and 200 million. And the discovery and development of sea routes West (Christopher Columbus, 1492) and East (Vasco da Gama, 1498) greatly expanded the use of his printing press. By 1620 the impact of the Gutenberg press caused English philosopher Francis Bacon to remark that it “has changed the whole face and state of things throughout the world.” In America, Mark Twain wrote:

What the world is today, good and bad, it owes to Gutenberg. Everything can be traced to this source, but we are bound to bring him homage…for the bad that this colossal invention has brought about is overshadowed a thousand times by the good with which mankind has been favored.

The press enabled friends of Martin Luther to distribute copies of his “95 Theses” across Germany within two weeks, all across Europe within two months, and within the year into France, England and Italy.

The challenge of the Reformation to the existing establishment led to The Thirty Years’ War

http://en.wikipedia.org/wiki/Thirty_Years’_War   Thirty Years’ War

which ended with the signing of a series of peace treaties summarized as the Peace of Westphalia, establishing vital concepts now taken for granted: sovereignty of states, right to self-determination, equality between states and the principle of non-intervention of one state in the internal affairs of another.

http://en.wikipedia.org/wiki/Westphalian_sovereignty  vital concepts

John Calvin’s Institutes of the Christian Religion was propelled by the Gutenberg miracle so that by 1560 the Scottish parliament had repudiated the Pope’s authority and approved in its stead the Protestant Confession of Faith. The Scottish Reformation reached America and influenced the American Revolution. Calvin’s influence was so great that Leopold von Ranke,

http://en.wikipedia.org/wiki/Leopold_von_Ranke  Leopold von Ranke

one of the profoundest scholars of the times, concluded that “John Calvin was the virtual founder of America.”

Thomas Paine’s pamphlet, Common Sense,

http://en.wikipedia.org/wiki/Common_Sense_(pamphlet)   Common Sense

rode not only the revolutionary discontent of the colonies but the increasingly common printing press to become, according to historian Gordon S. Wood, “the most incendiary and popular pamphlet of the entire revolutionary era.” First published anonymously in January, 1776, the 48-page booklet sold 120,000 copies in its first three months, 500,000 in its first year, and went through twenty-five editions in its first year alone. George Trevelyan, author of History of the American Revolution, said,

It would be difficult to name any human composition which has had an effect at once so instant, so extended and so lasting…It was pirated, parodied and imitated, and translated into the language of every country where the new republic had well-wishers. It worked nothing short of miracles and turned Tories into Whigs.

And so, from the development of movable type in 1436 to the printing of the Gutenberg Bible in 1455, to the explosive duplication of Luther’s 95 Theses beginning in 1518, to the Scottish immigration to America in the 1600s, to the Peace of Westphalia in 1668, to the bursting forth of “Common Sense” in January 1776, to the Declaration of Independence, one can trace the impact that the Gutenberg Press had on political, social and religious institutions in just over three hundred years.

But it took just three years from the start of the commercialization of the internet in 1995 (the year the first sale on Echo Bay – later to become EBay – was completed)

http://sixrevisions.com/resources/the-history-of-the-internet-in-a-nutshell/    first sale on Echo Bay

that the political power of the Internet as the “alternative media” began to be felt. Newsweek reporter Michael Isikoff had been investigating the relationship between Monica Lewinsky

http://en.wikipedia.org/wiki/Lewinsky_scandal#Denial_and_subsequent_admission    Monica Lewinsky

and then-President Bill Clinton for nearly a year, and his story was about to be published on Saturday morning, January 17th, 1998. After listening to one of the taped conversations between Lewinsky and a friend, Isikoff’s editors decided to spike the story. Matt Drudge of The Drudge Report,

http://en.wikipedia.org/wiki/The_Drudge_Report    The Drudge Report

an online news aggregator, learned of the decision to withhold the story, and ran his exposé with the headline: “Newsweek Kills Story on White House Intern: 23-Year-Old Sex Relationship with President,”

http://www.drudgereportarchives.com/data/2002/01/17/20020117_175502_ml.htm   ran his expose

which instantly, profoundly and permanently transformed the Internet into an alternative to the mainstream media. By Sunday morning, so many individuals were seeking more information from Drudge’s website that it couldn’t handle all the traffic.

http://news.bbc.co.uk/2/hi/special_report/1998/clinton_scandal/50031.stm   couldn’t handle all the traffic.

According to BBC News, “This may be the first time that a story of such consequence developed on the Internet. Love him or hate him, Matt Drudge’s report on the Clinton scandal is the most visible sign to date of the changing nature of journalism.”

The Presidential campaign of 2008 is considered to be the first “Internet election”

http://www.pewinternet.org/Reports/2008/The-Internet-and-the-2008-Election.aspx   internet election

with candidates using the Internet to promote their positions. PewInternet noted that “a record-breaking 46% of Americans used the Internet, email or cell phone text messaging to get news about the campaign, share their views, and mobilize others…[and] 6% of Americans made political contributions online, compared with 2% who did that during the entire 2004 campaign.” One of those enjoying the Internet’s capability to raise campaign funds was Presidential candidate Ron Paul whose “money bomb” raised a record $4.3 million in a single day, followed by another $4.4 million raised just a few days later.

The Internet had a significant role in the retirement of Dan Rather from CBS in 2005. In 1988 Rather interviewed six former servicemen, each of whom had witnessed horrible acts during their time in Vietnam.

http://en.wikipedia.org/wiki/Dan_Rather    interviewed

Two of them said that they had killed civilians and each talked about the impact the war had on their personal lives, including periods of depression, unemployment, drug use, and homelessness. Unfortunately for Rather, authors B. G. Burkett and Glenna Whitley, in doing research for their book Stolen Valor

http://www.amazon.com/Stolen-Valor-Vietnam-Generation-History/dp/096670360X/ref=sr_1_1?s=books&ie=UTF8&qid=1316710624&sr=1-1   Stolen Valor

obtained the service records of all six of those interviewed by Rather and discovered that only one of them had actually been stationed in Vietnam, and that he had only served as an equipment repairer. Bloggers on the Internet had a field day.

http://www.vvaw.org/veteran/article/?id=421    had a field day

And then in 2004 Rather reported on a series of memos he had obtained about President George W. Bush’s service with the Texas Air National Guard. The memos found their way onto the Internet and were declared by experts to be forgeries. The mainstream media reluctantly printed the story of the forgeries, forcing CBS initially to defend Rather’s report. Two weeks later CBS retracted the story. In 2005 Rather left CBS after being relegated to a corner office with few responsibilities.

The internet’s video-sharing website, YouTube, has more than one billion videos in its online library

http://thenewamerican.com/tech-mainmenu-30/computers/4458-the-power-of-the-internet    more than one billion

but none more damaging to the credibility of one of the establishment’s favorite institutions, The Federal Reserve System, than the confrontation between Congressman Alan Grayson and Fed spokesman Elizabeth Coleman. In five minutes and 26 seconds,

http://www.youtube.com/watch?v=PXlxBeAvsB8&feature=player_embedded   In five minutes and 26 seconds

on May 5th, 2009, Coleman stuttered and stammered and deflected and finally wilted under Grayson’s barrage of questions about the Fed’s off-book balance sheet activity. Her lack of preparation and inability to answer the simplest of questions has been viewed by more than four million people, doing irreparable damage to the prestige of the Fed. As noted by Anthony Wile

http://thedailybell.com/2024/Is-Anyone-Minding-the-Store-at-the-Federal-Reserve.html   noted by

“It is one of the single most astonishing moments (or minutes) ever manifested or preserved in this already amazing digital era.” Wile wrote:

During the questioning of Coleman, Grayson asks her over and over if there is a formal accounting available for the trillions in off-book balance sheet activity for the Fed. He asks patiently, and he repeats the question many times. Coleman stutters, makes statements that are obviously evasive and finally all but admits that she actually has no authority even to examine the Fed’s off-balance sheet activities. She admits this in a frazzled manner, but only after losing her way so badly that she has to ask Grayson to repeat the question (which he has already asked about ten times).

The whistle-blower website Wikileaks.org has proven the power of exposure as a disinfectant, especially in its leaking of the Kroll Report,

http://en.wikipedia.org/wiki/Gideon_Moi    Kroll Report

an intelligence report commissioned by the Kenyan government in 2004. For political reasons the government sat on the report until Julian Assange, the founder of Wikileaks, published the report on the Internet. Interviewed on TED TV by Chris Anderson, Assange said

http://thenewamerican.com/tech-mainmenu-30/computers/4458-the-power-of-the-internet    Interviewed by

This report…became a dead albatross around [the president’s] neck.

Anderson: And…word of the report leaked into Kenya, not from the official media, but indirectly [via the Internet]. And in your opinion, it actually shifted the election?

Assange: Yes. This became front page [news] and was then printed in all the surrounding countries of Kenya, in Tanzania and South Africa…

It ran for 20 nights straight on Kenya TV [and] shifted the vote by 10 percent…which changed the result of the election.

Anderson: So your leak really substantially changed the world?

Assange: Yes.

The Internet revolution is reaching into the highest levels of the education cartel which for years has required students to pay enormous sums for the privilege of attending prestigious schools to obtain a piece of paper that many are finding of questionable value in today’s marketplace. In 2001 Massachusetts Institute of Technology (MIT) started putting all of its courses’ lecture notes, videos and exams online where students could access them for free. In the ten years that followed nearly 100 million students have taken advantage of the opportunity. Recently, MIT introduced “MITx” which grants, for a small fee, a certificate of accomplishment to students proving their mastery of the subject. This innovation challenges at its very core the paradigm that only a wealthy few should have access to such learning. As Kevin Carey noted in The Chronicle of Higher Education,

http://chronicle.com/article/MIT-Mints-a-Valuable-New-Form/130410/  noted

“It is simply untenable [for traditional universities] to claim global leadership in educating a planet of seven billion people when you hoard your educational offerings for a few thousand fortunates living together on a small patch of land.”

The internet is also allowing citizens to stand up against corrupt politicians and police behaving badly. Rep. Steve Chabot (R-OH) discovered how his attempts to keep people attending his town halls from taping them using cellphones failed miserably and led him to change his policy.

http://teapartyeconomist.com/2012/01/19/bonehead-congressman-who-confiscated-cell-phones-backs-off-too-late/  failed miserably

Said a chastened Chabot, “We will be modifying our policy to allow individual citizens to bring cameras to our town hall events…”

Simon Glik was walking by the Boston Common on October 1st, 2007 when he observed what he perceived to be an excessive use of force by three police officers in subduing a suspected drug offender. He used his cell phone to take pictures of the event and was arrested. He sued and courts ruled in his favor: “We conclude…that Glik was exercising clearly-established First Amendment rights in filming the officers in a public place, and that his clearly-established Fourth Amendment rights were violated by his arrest without probable cause.”

http://thenewamerican.com/usnews/constitution/10828-courts-and-dept-of-justice-agree-videotaping-police-is-ok  ruled in his favor

Last September the pro-life film “180” was released with expectations that it could change the abortion debate significantly. Producer Ray Comfort said that “knowledge is very, very powerful and when we have knowledge…it can change our whole perspective.” Comfort expressed the hope that the video would go viral. In the first 24 hours of its release on YouTube, there were 30,000 visits. By October 9th, there were 638,000 visits. As of February 15th, 2012, there have been more than 2,350,000 visits.

Attempts to pre-empt the Internet or to restrict it are failing. When Rupert Murdoch, owner of News Corporation, purchased MySpace for $580 million in July 2005, he intended on inserting Fox News political content into the site and thus help to redirect the political conversation.

http://en.wikipedia.org/wiki/My_Space#Politics   inserting Fox News studio content

At the time, MySpace was the most popular social networking site in the United States, while Facebook, its primary competitor lagged behind. However, by April, 2008, Facebook surpassed MySpace based on monthly unique visitors, and Murdoch’s attempt to get political with his acquisition failed. With three-quarters of its workforce laid off, Murdoch sold what was left of the company in June 2011 for $35 million, taking a loss of half a billion dollars.

When it appeared that federal attempts to threaten the internet such as SOPA (Stop Online Piracy Act) and PIPA (Protect Internet Privacy Act) were going to be enacted, users rebelled mightily and loudly. Millions of people signed online petitions, overloaded circuits with phone calls, and generally stood in the gap and said NO. As Rob Enderle of the Enderle Group said:

http://www.computerworld.com/s/article/9223531/Twitter_Facebook_fuel_SOPA_protests?taxonomyId=70  said

“This is huge. [Social networks] pretty much drove the mass objections and stopped this bill from becoming law. I think we are actually seeing the beginning of a huge change in the political process worldwide that [has] social networks at the core.”

Even before the cratering of those efforts to regulate and emasculate the internet, clever individuals had been hard at work developing “work-arounds,” just in case. A Firefox add-on called, appropriately “de-SOPA” allows searchers to get past any sites that might have been censored by using IP addresses instead of web addresses.

http://lifehacker.com/5869665/desopa-for-firefox-bypasses-sopa-dns-blocking  deSOPA

And if that doesn’t work, there’s Pirate Bay Dancing

http://boingboing.net/2011/11/30/mafiaafire-teams-latest-brow.html Pirate Bay Dancing

that also was developed in anticipation of such attempts at regulation.

Telex is another of many innovations designed to foil attempts to restrict the flow of truth by Internet. The developer’s software turns the Internet itself into an anti-censorship device. Software that is installed on a computer connects with the Internet service provider that has Telex stations attached to the wires carrying the digital traffic. “So,” says the developer, “if you’re in China, and you want access to a banned site like YouTube, you just type YouTube.com into your computer, and the Telex station will see that connection, and disguise it as something innocuous. You might be watching YouTube, but to a censor, it will just seem as if you’re visiting a harmless, non-blocked site.” If governments pursue Internet censorship, they will find that the free-market innovators have gotten there first, in plenty of time to make such efforts not only fruitless but obsolete.

Because of the Internet, false renditions of history are exposed. Half-truths are uncovered. Statist assumptions are questioned. George Orwell’s Memory Hole has been illuminated. History, it is said, is written by the survivors. With more than 300 million websites feeding the Internet and billions of people seeking the truth, when this history is written it will proclaim the free unhindered flow of information via the Internet as the victor. With this new information, the final choice lies, where it always has, in the hands of an informed electorate. Writing to William Charles Jarvis on September 28th, 1820, Thomas Jefferson said:

I know of no safe depository of the ultimate powers of the society but the people themselves; and if we think them not enlightened enough to exercise their control with wholesome discretion, the remedy is not to take it from them, but to inform their discretion by education. This is the true corrective of abuses of constitutional power.

All that the Gutenberg press did then, and all that the Internet is doing now, is informing the peoples’ discretion. The rest is up to them.

 

 

 

 

 

Regulators are now going after the Bitcoin

This article was first published at the McAlvany Intelligence Advisor on Wednesday, November 20th, 2013:

 

Six federal agencies were invited to a Senate committee hearing on Monday to explain why each should be granted the privilege of regulating the Bitcoin. Four showed up:

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Inflation Concerns Unfounded, Wall Street Moves Higher

This article appeared online at TheNewAmerican.com on Wednesday, February 14, 2018:  

Money-supply

Money-supply (this is an old chart, but you get the idea)

Once Wall Street traders read beyond the headlines released early Wednesday morning by the Bureau of Labor Statistics (BLS), they reversed the early selloff and bid the market higher.

Those traders were on high alert following the January report that wages had jumped nearly three percent last year. This triggered concerns that inflation was imminent, and that the Fed would institute interest rate increases which would slow the economy.

The headline from the BLS seemed to confirm those concerns:

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Establishment Insider Calls for Military Intervention in Venezuela

This article appeared online at TheNewAmerican.com on Wednesday, January 10, 2018: 

English: Ricardo Hausmann

Ricardo Hausmann

When an obscure college professor nearing retirement age suggests that the only way to “solve” the Venezuelan “crisis” is through military intervention, few people would pay any attention. But when that person, Ricardo Hausmann, is a professor at Harvard and a director of the John F. Kennedy School of Government there, his proposal represents much more than just wishful thinking.

Hausmann, with a Ph.D. in economics from Cornell University, is a bona fide Keynesian interventionist. Considering that Hausmann was a former minister of planning in Venezuela and a member of the board of directors of the Central Bank of Venezuela in the early 1990s, one can rest assured that free market principles aren’t being considered as any part of his solution to Venezuela’s problems.

Under socialism, things have gotten so bad in Venezuela that Hausmann now thinks military intervention is the only cure. His plan, “D Day Venezuela,”

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Trump’s Establishment Pick for Fed Chair, Jerome Powell, Won’t Rock the Boat

This article appeared online at TheNewAmerican.com on Friday, November 3, 2017: 

Nothing will change with Trump’s nomination of Powell to head the Fed. He has a strong establishment background and opposed former Congressman Ron Paul’s effort to “Audit the Fed.”

In announcing his pick to replace Federal Reserve Board chair Janet Yellen, President Trump was generous in his praise for Jerome Powell, a present Fed board member:

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U.S. Economy Continues to Surprise to the Upside

This article appeared online at TheNewAmerican.com on Tuesday, October 31, 2017: 

One measure of how the U.S. economy continues to exceed expectations is the Economic Surprise Index published by Citigroup. It’s a tool that is used to measure how the economy compares to those expectations and, at the moment at least, it reflects the ebullience reported elsewhere. Any reading above zero indicates that the economy’s performance is exceeding projections. On Tuesday it hit 40 — its highest level since April.

That performance has repeatedly been reported in The New American and elsewhere, with these notable results:

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As the Fed Shrinks Its Balance Sheet, Nothing Can Go Wrong

This article was published by The McAlvany Intelligence Advisor on Wednesday, September 20, 2017:

Investors and Wall Street gurus, seers, and prognosticators paid attention on Wednesday to the emanations from the Federal Reserve board meeting, hoping to glean more of the details about the “great unwinding” of the Fed’s enormously bloated balance sheet. In June, Fed Chair Janet Yellen suggested that the time was drawing near to begin reducing the Fed’s balance sheet and there were at least two ways to start: letting maturing bonds “roll off” instead of reinvesting the proceeds in new issues, and liquidating, ever so slowly, some U.S. treasuries, starting at $10 billion a month in October. That liquidation would increase on a quarterly basis until it topped out at $50 billion a month.

The goal, it was suggested, was to

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Impact of Fed’s Plan to Do a “QE Unwind”

This article appeared online at TheNewAmerican.com on Tuesday, September 19, 2017: 

English: Official picture of Janet Yellen from...

Janet Yellen

What makes tomorrow’s [today’s – Wednesday, September 20] meeting at the Federal Reserve so interesting to market watchers and bond investors is the likelihood that Fed Chair Janet Yellen will provide more details on her plans to begin unwinding the Fed’s balance sheet: how much, how fast, how soon, and what does it all mean? In addition, she is hoping to placate conservatives in Congress who remain unhappy over the Fed’s intervention in the markets in the aftermath of the real estate collapse that triggered the Great Recession.

In June, Yellen outlined some possible scenarios, which included letting some of the bonds on the central bank’s enormous $4.2 trillion balance sheet simply mature without reinvesting the funds in new issues. She suggested the Fed would also start selling off some $10 billion a month of existing securities, and then raise that amount every quarter until it reaches $50 billion a month. This way, by expanding on her plans, and by slowly — very slowly — shrinking the Fed massive balance sheet, she hopes to avoid another “taper tantrum” that bond investors experienced back in 2013 when then-chairman Ben Bernanke first said the Fed should start reducing some of its holdings of U.S. Treasuries and mortgage-backed securities.

If she provides sufficient clarity, and sufficient caution, Yellen might not only start the process without disrupting the market, but also avoid further criticism from congressional critics who think the Fed stepped way out of bounds in starting the whole “quantitative easing” (QE) program in the first place. In that way — again, if she is successful — she will not only cement into place the Fed as a necessary element in the American economy, but show that further “QE” expansions to meet future recessions are a legitimate tool.

Whether she can pull it off is an open question. Keynesian economist Austan Goolsbee, who headed Obama’s Council of Economic Advisors in 2010 and 2011, said, “The final exam, with the grade yet to be determined, is: can the Fed actually get out of this stuff?”

The Fed has been essentially flying blind for years, moving outside not only its mandate (to maximize labor force participation while keeping inflation under control) but its past experience. Said David Blanchflower, a Dartmouth College economist (read: Keynesian) who was on the monetary policy committee of the Bank of England from 2006 to 2009, expressed it perfectly: “We had no idea what we should buy, how much, for how long … [and] there is no idea on the way going out.”

It was all a grand experiment: expand the money supply to keep interest rates so far below market rates that people seeking income would take higher risks — i.e., dividend-paying stocks, real estate ventures, etc. — and home owners would find it easier to buy houses. This was the Keynesian antidote to the economic collapse. Rather than let the economy right itself by itself (see America’s recession and recovery in 1920-1921), Keynesians suffer the hubris to think they know better than the market, and intervened, resulting in the longest, slowest recovery from a recession in American history.

Once the Fed began to embark on its plan to bail out banks and other financial institutions in the wake of the real estate collapse, there was no going back. When the federal government took over Fannie Mae and Freddie Mac — mortgage insurers that were approaching bankruptcy — it found that it needed to buy up billions of their failing mortgages. That explains why $1.7 billion of the Fed’s balance sheet consists of mortgages and mortgage-backed securities.

But when that didn’t work the Fed adopted the strategy of “quantitative easing” (QE) — creating money to spur spending across the economy — which some observers thought would never end.

But it did end, in 2014, and the Fed has been sitting on its massive pile of government and mortgage debt, waiting for the economy to revive enough so it could be offloaded without major economic disruptions.

The Fed won’t be unwinding its entire portfolio. Instead it expects to reduce it by between $800 billion and $1 trillion over the next few years, leaving in place a balance sheet of between $2.5 and $3.2 trillion. This means that the Fed will never again see days when its balance sheet shrinks all the way back to the $900 billion it had prior to the Great Recession.

Its plan should have little impact on short-term rates. Using the 10-year Treasury as the standard, when Yellen’s plan (assuming it begins in October) kicks in, it might boost its yield by perhaps a quarter of a percentage point. This would be the natural result of increasing supply in a market with a fixed demand. When more is supplied, prices will go down. In the bond market that translates into a mini-interest rate hike.

But demand from abroad for U.S. bonds continues to be strong. Yields on 10-year bonds issued by foreign governments such as Japan’s and Germany’s remain far below U.S. 10-year bonds and so any increase in rates here will only make them more attractive to foreign buyers.

In fact, once Yellen has filled in the details, as she is expected to do on Wednesday, investors and market watchers are likely to express a sigh of relief, and continue the Fed-fueled rally in stocks that began in 2009 and that shows little sign of stopping. Diane Swonk, chief economist at DS Economics, agrees: “The start to reducing the Fed’s balance sheet is an action the markets are ready for. The Fed has laid out a roadmap and there is really a sense of relief to finally get it started.”

New York Fed: Economy Will Benefit From Harvey and Irma

This article appeared online at TheNewAmerican.com on Monday, September 11, 2017:

Frédéric Bastiat

Frédéric Bastiat

In a statement reflecting a worldview taught by all major universities and espoused by central bankers around the world, the president of the Federal Reserve Bank of New York, William Dudley, said on Friday that, on net, the destruction wrought by the hurricanes will be positive for the economy: “[The initial] effects tend to be pretty transitory. [But] the long-run effect of these disasters unfortunately is it actually lifts economic activity because you have to rebuild all the things that have been damaged by the storms.”

Dudley got the first part right:

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If Dudley is Right, Then Let’s Pray for the Flooding of the Entire Country!

This article was published by The McAlvany Intelligence Advisor on Monday, September 11, 2017:

Cover of "The Emperor's New Clothes"

Cover of The Emperor’s New Clothes

Taken to its logical conclusion, William Dudley, the president of the Federal Reserve Bank of New York, thinks a flood covering all of the United States would stimulate the economy. Several sources confirmed that this is what Dudley said on Friday in an interview at CNBC concerning the economic effects of hurricanes Harvey and Irma:

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Trump Takes Credit for Banner Jobs Report

This article appeared online at TheNewAmerican.com on Friday, August 4, 2017:  

Within 15 minutes of Friday morning’s release of the July jobs numbers by the Bureau of Labor Statistics (BLS), President Trump tweeted: “Excellent Jobs Numbers just released — and I have just begun. Many job stifling regulations continue to fall. Movement back to USA!”

He has good reason to cheer:

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Trump Administration Tips Its Hand, Oks Third Greek Bailout

This article appeared online at TheNewAmerican.com on Monday, April 17, 2017:

It took EURACTIV, the online source that focuses on European policymaking, to report that the Trump administration has signaled that, previous protestations to the contrary, it won’t object to a third Greek bailout. The anonymous Trump administration tipster told its reporters: “We’re looking for the Europeans to help Greece to resolve its economic problems by the Fund [the International Monetary Fund], despite the criticism of many Republicans regarding the two previous bailout programs in 2010 and 2012.”

This anonymous tip kicks to the curb protestations voiced by Trump’s Secretary of the Treasury Steven Mnuchin in February that

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Do Trump’s Flip Flops Reflect Lack of Constitutional Understanding?

This article appeared online at TheNewAmerican.com on Friday, April 14, 2017:

Pebble massage sandals from Dalian, China.

Flip flops

The mainstream media have rejoiced because they perceive that President Donald Trump has abandoned policies and changed long-held positions that they have considered anathema. Politico said the president has “demonstrated an incredible willingness to bend his past positions, or abandon them entirely. Sometimes he offers an explanation; sometimes not.” CNN called them “stunning U-turns on key issues” reflecting “extraordinary political shape-shifting.”

The “key issues” are Syria, Janet Yellen of the Federal Reserve, NAFTA, NATO, his hiring freeze, China’s currency manipulation, and the Export-Import Bank.

Syria tops the list currently as the president,

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Growing Pension Crisis Looms Over Wall Street

This article appeared online at TheNewAmerican.com on Monday, March 27, 2017:

Logo of the United States Pension Benefit Guar...

Logo of the United States Pension Benefit Guaranty Corporation

The looming state and municipal pension plan crisis, estimated by Moody’s at $1.75 trillion just a few months ago, has now been adjusted upward to  $1.9 trillion. But that number, according to Bloomberg’s Danielle DiMartino Booth, greatly underestimates the level of underfunding. It’s more like $6 trillion “if the prevailing yields on Treasuries were used.”

Instead, most state and local pension plans use a much higher, more generous, and more deceptive assumed rate of return of between six and seven percent, with some still clinging to a “castles in the sky” eight percent. Those assumptions greatly reduce the pressure on plan sponsors to make proper contributions to fund those plans.

And, according to the investment firm GMO (Grantham, Mayo & van Otterloo),

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Greece Needs Another Bailout; Disagreement Threatens EU Itself

This article appeared online at TheNewAmerican.com on Thursday, February 9, 2017:

IMF Headquarters, Washington, DC.

IMF Headquarters

The report on Greece’s financial condition issued by the International Monetary Fund (IMF) on Monday was dismal, but, said the central bank, its future remains bright. First, the bad news: The EU member will fall far short of the budget-surplus targets put in place in order to get the last bailout. The Greek economy must grow at 3.1 percent but it expanded by only 0.4 percent last year.

However, the IMF said Greece’s economy is expected to grow by 2.7 percent in 2017. An unnamed European Union official who spoke to Bloomberg on the condition of anonymity said that

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Venezuela’s Dictator Fires Head of Central Bank; Inflation at 1,600 Percent

This article appeared online at TheNewAmerican.com on Monday, January 23, 2017:

Nicolas Maduro

Venezuela’s Marxist dictator, Nicolas Maduro (shown), fired the head of his country’s central bank on Friday. Without fanfare or any public statement from either Maduro or his banker, Nelson Merentes, the firing is the latest move by the president to place the blame for the collapse of his country anywhere but where it belongs: on his socialist policies.

For months The New American has tracked the retrogression of a country which was once one of the leading economies in South America to a banana republic where people are starving, sick people are dying for lack of care, and a black market has replaced a once-thriving free economy. Last June, the New York Times was finally forced to admit the cause:

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Venezuela: Some Lessons Must be Learned Over and Over Again

This article was published by The McAlvany Intelligence Advisor on Monday, January 23, 2017:

George Santayana most famously said: “Those who cannot learn from history are doomed to repeat it.” But he wasn’t the only one. Aldous Huxley put it this way: “That men do not learn very much the lessons of history is the most important of all the lessons of history.” Said Samuel Taylor Coleridge: “If men could learn from history, what lessons it might teach us! But passion and party blind our eyes, and the light which experience gives us is a lantern on the stern which shines only on the waves behind.”

There’s a lesson being taught to the hapless and now helpless citizens (shown above) of Venezuela. It’s a lesson so often taught but not learned that one may, with great confidence, predict the final outcome.

On Friday Venezuela’s Marxist dictator, Nicolas Maduro, fired his banker,

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Civilization’s Thin Veneer

This article was published by The McAlvany Intelligence Advisor on Wednesday, December 14, 2016:  

The dictionary defines civilization as “an ideal state of human culture characterized by a complete absence of barbarism and non-rational behavior.” Rich Galen thinks a better definition is living in a “constant state of positive assumptions.”

Many of those assumptions are coming into question, with many more already proven to be false. One of them is that pension plans are safe, that promises made will be kept, and that the assumptions underlying those plans regarding rates of return on invested assets are reasonable and that they virtually guarantee predictable results.

Those positive assumptions vanished last summer in Athens when

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Trump Picks Former Goldman Sachs Banker for Treasury Secretary

This article appeared online at TheNewAmerican.com on Wednesday, November 30, 2016:  

English: Logo of The Goldman Sachs Group, Inc....

One of the first criticisms over Donald Trump’s nomination of former Goldman Sachs banker Steven Mnuchin on Wednesday for Treasury secretary came from the Democratic National Committee: “So much for draining the swamp … nominating Steven Mnuchin to be Treasury Secretary is a slap in the face to voters who hoped [Trump] would shake up Washington.”

Just the name “Goldman Sachs” sends shivers down the backs of Americanists.

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Donald Trump Meets Ayn Rand

The Passion of Ayn Rand

This article was published by The McAlvany Intelligence Advisor on Wednesday, November 30, 2016:  

Ayn Rand passed away in 1982 at age 77 when Donald Trump was just 36. But the astounding success of her masterwork, Atlas Shrugged, led to an interview at the Trump Tower on Monday in the form of one of her most avid fans: John Allison.

Allison, a Phi Beta Kappa graduate of the University of North Carolina in 1971, read a copy of it as a young man and it changed his life. There’s an outside possibility that it might change the life of millions of others.

Following graduation he went to work for BB&T Corporation, a small rural bank in North Carolina. By 1989 Allison was the bank’s CEO. By 2010 he had grown the bank from $4.5 billion in assets to

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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 © 2020 Bob Adelmann