The Fed...wasn't that formed so we could control inflation? Great idea to have the government control inflation. Prior to the Fed, inflation and deflation happened all the time. But over time it stayed within 300%. If a bushel of wheat sold for $1 it might go up as high as $3 before retreating down to $1 again...over time. But we needed stability and so the problem was turned over to the government in 1913. So if I bought something for $100 dollars back then it would cost me $2152.03 to buy it now. $100 worth of stuff today would have cost me $4.71 back then. Gee, would someone do the math for me because it appears that in the 96 years they have been taking care of this problem we have averaged about 22.4% inflation annually. That's not so bad is it? I mean I can put my money in the stock market and get that kind of return...Bernie Madoff did, didn't he? Someone, probably a Commie Bastard, said "Inflation is simply the measure of how much of your wealth the government steals from you...taxes aren't considered stealing...so that is after taxes. 35% in total taxes and then 22% in inflation-stealing, that comes to what?...57%? How much does it have to be before we realize it is slavery? Just wondering...
On Aug 8, 6:13 pm, RichardForbes <[email protected]> wrote: > Three word answer: > > Politicians and Bureaucrats > > On Aug 8, 7:46 pm, "\"Lone Wolf\"" <[email protected]> wrote: > > > > > Fed Chairman Bernanke signals more bank bailouts, calls for cuts in > > social programs > > By Barry Grey > > 23 July 2009 > > > In two days of testimony before Congress, Federal Reserve Board > > Chairman Ben Bernanke defended the multi-trillion-dollar bailout of > > the banks while seeking to allay fears on financial markets of a > > potential eruption of inflation. > > > Bernanke’s testimony before the House Financial Services Committee on > > Tuesday and the Senate Banking Committee on Wednesday underscored the > > commitment of both the central bank and the Obama administration to > > defending the profits and wealth of the financial elite. His reception > > by the Democratic-controlled committees made clear that, whatever > > minor criticisms Congress may offer, it shares this overriding goal. > > > Bernanke published a lengthy commentary in the Wall Street Journal on > > Tuesday, timed to coincide with his appearance before the House > > committee, arguing that the Fed had an “exit strategy” to unwind the > > massive injections of capital into the banking system and avoid an > > inflationary spiral once business activity begins to rebound from the > > deepest recession since the 1930s. > > > In his prepared statement, Bernanke cited the rally on Wall Street and > > the renewed profitability of major banks as signs that the financial > > crisis had abated. At the same time, he made clear that unemployment > > and home foreclosures would continue to rise and remain at near-record > > rates for at least the next two years, and warned that consumer > > spending would remain depressed. > > > The Fed chairman forecast a slight growth in the US economy by the end > > of 2009 and a gradual acceleration in 2010 and 2011. But he said the > > central bank, which cut its key interest rate to near zero last > > December, would continue to hold interest rates at record lows “for an > > extended period.” > > > Bernanke acknowledged that “financial conditions remain stressed, and > > many households and businesses are finding credit difficult to > > obtain.” In response to a question about the prospects for a jobs > > recovery, he said, “We have a very long haul here. Unemployment is > > going to stay high for quite a while, and so it’s not going to feel > > really like a strong economy.” > > > However, he called a second economic stimulus package “premature” and > > proposed no measures either to provide immediate relief for the > > millions hit by plant closures, layoffs, and the collapse of home > > values and savings, or to allocate government funds to create new > > jobs. Nor did he propose any measures to compel the banks, which have > > received more than $200 billion in taxpayer cash and trillions more in > > low-interest loans, subsidies and government backing for their debt, > > to increase their lending and make credit available to working > > families. > > > On the contrary, he reiterated earlier demands that Congress and the > > Obama administration agree on plans to slash the budget deficit by > > cutting basic social programs such as Medicare and Medicaid. In his > > prepared statement, he said “...maintaining the confidence of the > > public and financial markets requires that policymakers begin planning > > now for the restoration of fiscal balance. Prompt attention to > > questions of fiscal sustainability is particularly critical because of > > the coming budgetary and economic challenges associated with the > > retirement of the baby-boom generation and continued increases in the > > costs of Medicare and Medicaid. Addressing the country’s fiscal > > problems will require difficult choices, but postponing those choices > > will only make them more difficult.” > > > In the course of his testimony, he endorsed the drive by the Obama > > administration, in the name of health care “reform,” to reduce the > > costs to business and the government of health insurance for workers. > > “I do believe,” he said, “for the broad economy’s health or fiscal > > health, we do need to address the problem of increasing cost. And so > > any program that is undertaken should look to how we’re going to get > > control of costs...” > > > An exchange on Wednesday with Jim Bunning, the right-wing Republican > > senator from Kentucky, highlighted the priorities of the Federal > > Reserve. Citing the role of former Fed Chairman Paul Volcker, who, > > under presidents Jimmy Carter and Ronald Reagan, raised interest rates > > above 20 percent and precipitated a wave of plant closures and > > layoffs, Bunning asked, “But do you have the will as former Chairman > > Volcker did to tighten even if the economy is still weak?” > > > Bernanke replied, “We will absolutely do it, so long as we are not > > forced to do something different by Congress.” > > > At the same time, Bernanke made clear that the Fed would continue to > > allocate whatever funds were needed to prop up the banks. In response > > to the plea from Senate Banking Committee Chairman Christopher Dodd, > > Democrat from Connecticut, Bernanke said he was prepared to extend one > > bailout program, the Term Asset-Backed Securities Loan Facility > > (TALF), beyond its December 31 expiration date. > > > Much of the discussion at both hearings focused on fears of an > > impending avalanche of commercial real estate defaults. Trends > > Research Institute Director Gerald Celente, who forecast the subprime > > mortgage crisis, has predicted that defaults will turn into a > > commercial real estate collapse that will “dwarf the subprime > > problem.” > > > Moody’s Investor Services reported that the number of commercial > > properties in default, foreclosure or bankruptcy in June was more than > > twice the number six months earlier and almost twice the value. > > > Bernanke at one point acknowledged that “Many banks will be facing > > mountains of CRE (commercial real estate) challenges going forward.” > > He told the Senate Banking Committee that it “may be appropriate” for > > the government to guarantee commercial mortgages, an allocation of > > government funds that could run into the hundreds of billions of > > dollars. > > > In a further indication of the character of the “recovery” touted by > > Bernanke, the Fed chairman said, “The American consumer is not going > > to be the source of a global boom by any means. On that very topic, we > > are continuing to encourage our trading partners in Asia and elsewhere > > to understand—and I believe that they do—that they need to substitute > > their own domestic spending, their own domestic demand, for American > > consumers as the engine of growth in their economies.” He cited > > China’s stimulus program as a positive example. > > > Bernanke used the hearings to oppose an Obama administration proposal > > to establish, as part of a revised bank regulatory system, a largely > > token consumer protection agency, a measure that is fiercely opposed > > by Wall Street. He also denounced a pending bill in Congress that > > would expand the powers of the Government Accountability Office, an > > arm of Congress, to audit the Federal Reserve. > > > The hearings, known as the semi-annual Monetary Policy Report to > > Congress, came in the wake of bumper profit reports by bailed out > > banks, most notably Goldman Sachs and JPMorgan Chase, and record set- > > asides by Wall Street firms for executive salaries and bonuses. Public > > anger is rising over the windfalls for bankers and big investors, some > > of it coming from predatory hikes in credit card rates and fees and > > huge penalties being charged for bank overdrafts. > > > This sentiment found no genuine reflection in the hearings. > > Massachusetts Democrat Barney Frank, the chairman of the House > > Financial Services Committee, devoted his opening remarks to absolving > > Bernanke of any wrongdoing in last year’s Bank of America takeover of > > Merrill Lynch. > > > A number of congressional hearings have been held into charges that > > Bernanke and then-Treasury Secretary Henry Paulson pressured Bank of > > America CEO Kenneth Lewis to go through with the takeover even though > > it had become clear that Merrill’s debts and toxic assets were far > > higher than the failing bank had acknowledged. Shareholders have filed > > suits alleging that Lewis, under pressure from Bernanke and Paulson, > > concealed the real state of Merrill from shareholders and the public. > > > Within weeks of the January 2009 completion of the merger, the > > government awarded Bank of America $20 billion in bailout cash under > > the Troubled Asset Relief Program (TARP) over and above the $25 > > billion that had been given the bank in October of 2008. The > > government also agreed to guarantee over $300 billion on Bank of > > America assets. > > > Frank declared that he saw “no villains” in the takeover deal. > > > On the Senate side, Chairman Dodd used his opening statement to > > posture as an advocate for laid off workers and families facing > > foreclosure, praising the progress in stabilizing the banks but > > complaining that the recovery was one-sided. There should be more > > balance, he said, so that the “other half”—namely, the broad mass of > > the American people—also benefitted. > > > He took pains, however, to combine this criticism with a testimonial > > to Bernanke’s service to the country. “Mr. Chairman,” he said, “all of > > us understand the importance of the work you are doing—and that’s not > > just a platitude or a generous comment. And we all look forward to > > continuing to partner with you in this effort.” > > > No one at either hearing raised the charges leveled Monday by the > > special inspector general for TARP, Neil Barofsky, that TARP funds > > were being misused by the banks. Nor did any congressman or senator > > cite his denunciation of the Obama > > ... > > read more » --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. 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