Posts Tagged ‘Federal reserve’

It’s a miracle!!!

Absolutely stunning the blatant deception we are seeing. 

It is all smoke an mirrors and is a reminder of why we should not place our hope in man or man’s inventions but in God alone!

Maranatha, Lord come quickly!



Treasury Ran $98 Billion Deficit in July–But Debt Stayed Exactly $16,699,396,000,000

August 14, 2013 – 4:15 AM

(CNSNews.com) – The Treasury Department’s Financial Management Service (FMS), which publishes both the federal government’s official Daily Treasury Statement and its official Monthly Treasury Statement, is reporting that in July the federal government ran a deficit of $98 billion but that the federal government’s debt remained exactly $16,699,396,000,000 for the entire month.

The FMS said that the deficit went up $98 billion ($97,594,000,000) in the Monthly Treasury Statment for July, which it released on Monday.

At the same time, the FMS said the debt stayed at exactly $16,699,396,000,000 in its Daily Treasury Statements, which are published every business day. The Daily Treasury Statements show the daily value of the federal government debt that is subject to a legal limit set by Congress.

At the static $16,699,396,000,000 level that the Treasury reported for every day of July, the debt was just $25 million below the legal limit of $16,699,421,000,000 that was set in a law passed by Congress and signed by President Barack Obama.

If Treasury’s daily statements were to declare that the government had borrowed an additional net $98 billion to cover the $98 billion deficit the Treasury declared in its monthly statement for July, the Treasury would be conceding that the government had already surpassed the legal limit on the debt–and has been violating the law by continuing to borrowing additional money.

Instead, even as the Treasury was running up the $98-billion deficit it reported in the July Monthly Treasury Statement, every one of the 22 Daily Treasury Statements published for July said the Treasury had closed out the previous business day with exactly $16,699,396,000,000 in debt.

The Daily Treasury Statement for Aug. 12, released Tuesday afternoon, says the debt remained stuck at exactly $16,699,396,000,000 during the first 12 days of this month, too.

On May 17, the first day the Treasury reported that the debt had hit exactly $16,699,396,000,000–and was thus just $25 million below the legal limit–Treasury Secretary Lew sent a letter to House Speaker John Boehner saying he was beginning to implement what he called “the standard set of extraordinary measures” to prevent the Treasury from exceeding the legal limit on the federal debt.

Since Lew sent that letter–announcing that he would use “extraordinary measures”–the debt has remained stuck at exactly $16,699,396,000,000 for 87 straight days.

That includes all 31 days in July when Lew’s Treasury says it was running a $98 billion deficit.

When Lew stops using “extraordinary measures” to keep the debt at exactly $16,699,396,000,000, the government will have another debt-limit crisis.


Click on the article title for a link to full original referenced article.

In Romans 10 Paul lays out how salvation is open to all, Jew and Gentile.  He writes:

“For Christ is the end of the law for righteousness to everyone who believes.” – Romans 10:4-5

What he is saying is now it is not about works or how closely to a “T” you follow the law.  But that it is through God’s gift of grace through faith in His Son, Jesus Christ.  It is really that simple, and yet a hard step for some of us.

“That if you confess with your mouth the Lord Jesus and believe in your heart that God has raised Him from the dead, you will be saved.” – Romans 10:9

Christ is the narrow gate (Matthew 7:13-14), through faith in Him you will be saved.  It is the only “works” that God requires for eternal salvation.

It is The Gospel of Jesus Christ.  To learn more check out the following link.

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Uhh, I think some thing big (and bad) happened in September 2008.

We changed course.  Was that the change you hoped for?

That is an awful lot of printing…


Thanks to Zero Hedge for the chart:

Federal Reserve Balance Sheet Update: Week Of January 13, $1.070 Trillion In UST Holdings


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Here we go, its official.  Watch for price increases over the next 3-6 months…


Fed to Spend $600 Billion More To Help Boost US Economy

The Federal Reserve launched a controversial new policy on Wednesday, committing to buy $600 billion more in government bonds by the middle of next year in an attempt to breathe new life into a struggling U.S. economy.

Sheet of US one hundred dollar bills
Don Farrall | Digital Vision | Getty Images

The decision, which takes the Fed into largely uncharted waters, is aimed at further lowering borrowing costs for consumers and businesses still suffering in the aftermath of the worst recession since the Great Depression.

The U.S. central bank said it would buy about $75 billion in longer-term Treasury bonds per month. It said it would regularly review the pace and size of the program and adjust it as needed depending on the path of the recovery.

In its post-meeting statement, the Fed described the economy as “slow”, and said employers remained reluctant to add to payrolls. It said measures of inflation were “somewhat low.”


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We are at a dangerous point this week.  Under the cover of all the election hype, the federal reserve is making probably the biggest decision in this century…remain watchful, stock up on food & water, make sure you fill up your cars with gas…pray, trust in God.  It is going to be quite a ride…


Watch for what the Fed does today, headlines from Drudge on fed’s decision…

Treasury estimates $362B in borrowing for quarter...

Bernanke Faces More Congressional Scrutiny After Republican Election Gains...

PUMP: Fed Likely to Announce $500 Billion of Purchases...

'Biggest decision in decades'...

Fed easing may means 20% drop of dollar value...

'The end of dollar hegemony'...

Sen. Gregg: 'We're Greece' in a Few Years...


Click on the article title for a link to full original referenced article.

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Now even the Fed is talking about the coming inflation, just with the spin that it will help boost the economy, which is the deception.  We need to prepare for he coming collapse…


Fed Mulls Raising Inflation Expectations to Boost Economy

Federal Reserve policy makers may want Americans to expect inflation to accelerate in the future so they spend more of their money now.

Central bankers, seeking ways to boost flagging growth after lowering interest rates almost to zero and buying $1.7 trillion of securities, are weighing strategies for raising inflation expectations as well as expanding the balance sheet by purchasing Treasuries, according to minutes of the Fed’s Sept. 21 meeting released yesterday.

Some Fed officials are concerned that expectations of lower inflation will become self-fulfilling, damping demand by increasing borrowing costs in real terms, the minutes said. By encouraging Americans to believe prices will start rising at a faster pace, the Fed would reduce inflation-adjusted interest rates and stimulate the economy. Chairman Ben S. Bernanke said in 2003 that Japan could beat deflation by using a “publicly announced, gradually rising price-level target.”


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The headline says it all, how can that not be seen as an act of desperation as we begin the fall…


Fed Undaunted by Uncertain Prospects for Money Printing

The U.S. Federal Reserve runs the risk of diminishing returns from its next round of money printing to amplify the subdued economic recovery, but that won’t stop it from trying.

Sheet of US one hundred dollar bills
Don Farrall | Digital Vision | Getty Images

Minutes due Tuesday from the Fed’s most recent policy-setting meeting may reflect some divisions among officials over whether to launch another round of asset purchases, known as quantitative easing.

Investors, however, assume the Fed will pull the trigger, likely at its next policy-setting meeting in November.

A Reuters poll of 16 primary dealers—investment firms that deal directly with the Fed—showed all expected the central bank to return to buying bonds.

All but one predicted the announcement would come at the Nov. 2-3 meeting.

The Fed cannot sit idly by with unemployment stuck near 10 percent and inflation below the central bank’s perceived target, economists say. Statements from some of the Fed’s top officials in recent days have made it increasingly clear that action is likely, even though others remain vocally opposed.


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Great article on where we find ourselves as a nation, economically.  Peter Schiff has been the most accurate of anyone I have seen.


Hail Mary Pass

Since the US economy has failed to recover as widely predicted, pressure on the Federal Reserve to conjure a solution has increased. In fact, the Fed now faces the hardest choices in its history. It can either redouble its past efforts to re-inflate America’s bubble economy (risking the destruction of the US dollar) or it can stop pumping and let the economy deflate to a self-sustaining level. Unfortunately, both choices guarantee severe economic pain – but only one offers the possibility of ultimate success.

Today’s news that the economy lost 95,000 jobs in September confirms that record doses of stimulus have failed to (more…)

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Ok, this is a huge sign of the trouble we are in.  Our own Federal Reserve is the second largest owner of our debt and only $25 billion behind China?  How many times have you heard that China owning so much of our debt is a bad thing?  I bet this is the first time most have heard that the Fed owns basically, just as much?  Why?


Federal Reserve Is Now Second Largest Holder Of US Treasury Bonds

The Federal Reserve holds $821.128 billion of US Treasury Bonds, surpassing Japan today to become the second largest holder of US Treasury Bonds. The Federal Reserve is $25 billion away from surpassing China for the number one spot.



It’s Official: Fed Is Now Second Largest Holder Of US Treasury Bonds

Today’s POMO is over: at $2.069 billion, the operation was right in line with our expectations, coming in at a lofty 12.16 submitted to accepted ratio, as investors apparently are not too crazy about the yield perspective of the 4 2013 CUSIPs that were repruchased. However, what is far more important is that with holdings of $821.1 billion, the Fed is now officially the second largest holder of US Treasurys. Next up- China.

While the official breakdown will likely be a few weeks late in coming, here is the math:

Fed holdings as of September 30: $811,669


Total: $821.128 Billion, which compares to Japan total $821.0 Billion as of July 2010

Congratulations, America: your central bank is just $25 billion away from being the Treasury’s largest creditor, and thus able to dominate any and all future debt restructuring negotiations with what is, essentially, itself.


Click on the article title for a link to full original referenced article.

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I can’t believe they are talking about this, there is nothing worst for our dollar and our purchasing power.  What little savings Americans have is being eroded (stolen) while it sits in banks.  Check out the graph below, from a WSJ article, it shows the cliff we are facing.

If this quadruple whammy hits:

tax increases (from Obama and bush tax cuts expiring)(end of year),

Obama care takes effect (end of year),

our trade war with China is escalated (underway), and

the Fed’s Inflation Fix (between now and end of year)

we will go over the edge of the cliff…(just like in 1937…)


Fed Officials Mull Inflation as a Fix

The Federal Reserve spent the past three decades getting inflation low and keeping it there. But as the U.S. economy struggles and flirts with the prospect of deflation, some central bank officials are publicly broaching a controversial idea: lifting inflation above the Fed’s informal target.

The rationale is that getting inflation up even temporarily would push “real” interest rates—nominal rates minus inflation—down, encouraging consumers and businesses to save less and to spend or invest more.

Both inside and outside the Fed, though, such an approach is controversial. It could undermine the anti-inflation credibility the Fed won three decades ago by raising interest rates to double-digits to beat back late-1970s price surges. “It’s a big mistake,” said Allan Meltzer of Carnegie Mellon University, a central bank historian. “Higher inflation is not going to solve our problem. Any gain from that experience would be temporary,” adding that the economy would suffer later.


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What a revelation?  There is a lot of news out there this week along the same lines.  I am going to post a few of the ones I think are the best articles, but this is gaining steam and no longer being kept out of sight…


Fed boss: Threat from deficits ‘real and growing’

Bernanke says deficits pose ‘real and growing’ threat to economy, calls for plan to cut them

PROVIDENCE, R.I. (AP) — The economy could be hurt if Congress and the White House fail to come up with a plan to curb the nation’s huge budget deficits in the coming years, Federal Reserve Chairman Ben Bernanke warned Monday.

Bernanke, in a speech prepared for delivery, reiterated his belief that the government shouldn’t raise taxes or slash spending now because the economic recovery is still too fragile.

But failing to bring the deficits under control could endanger the economy later on, he said. Exploding budget deficits can lead to higher interest rates for people buying homes and cars, and for businesses buying equipment or expanding operations. That could crimp Americans’ spending and slow economic growth.

“The threat to our economy is real and growing,” Bernanke said. “The sooner a plan is established, the longer affected individuals will have to prepare for the necessary changes.”


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More talk about the US and China switching places.  Here has been a lot of talk about this over the last few weeks.  It is really becoming more of a “when” question than “if”.  It is something we need to prepare for, America is not a big player in the end times.  We have been a major tool of God to spread His Word but we have fallen and are still falling…


US Is ‘Practically Owned’ by China: Analyst

The US supremacy as the top world economy will end sooner than many people believe, so gold is a better investment than the dollar despite it hitting a new record, Tom Winnifrith, CEO at financial services firm Rivington Street Holdings, told CNBC.com Monday.

Gold [XAU=X  1315.55  6.75  (+0.52%)   ] hit a new record high Monday and silver [XAG=X  22.03  0.16  (+0.73%)   ] rose to another 30-year peak as investors were worried about the dollar weakening further after the Federal Reserve hinted at more quantitative easing last week.

The US trade deficit and debt continue to grow and the authorities are reluctant to address the problem, preferring to print money, Winnifrith said.

“America is practically owned by China,” he said.


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Oh boy, here we go, doing exactly what China warned against, see my previous posts listed below:

Geithner Steps up China Yuan Policy Criticism

Chinese think tank warns US it will emerge as loser in trade war

This was one of the triggers I discussed in that post.  If China retaliated by selling off (dumping) our treasury debt, then we would see the Federal Reserve need to jump in a purchase our debt by printing money to do it.  Another trillion dollars of inflationary printing, with China alone, not counting others that pile on to the sell off.  It would crash our currency over a short period of time.

This could set us up for the coming single world currency and vulnerable/open to the single world government scenarios as we search for stability.  As I have stated above, we don’t know what will trigger it, but it will be interesting to see what is the final straw…


US Congress committee approves China sanctions bill

A US Congress committee has approved a bill that would place retaliatory trade sanctions on China.

It means the House of Representatives – the lower chamber of Congress – will vote on the bill next week.

The bill would allow the US to impose import duties on countries who have fundamentally undervalued currencies.

To become law, the bill would also need support in the Senate, which is less certain ahead of mid-term Congressional elections due in November.

The US accuses China of holding down the value of its currency, the yuan, in order to give its exports an unfair price advantage.


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It is hard to believe Government statistics these days, there is so much spin and discounting certain groups or redefining definitions of economics.

Why do we not count food & groceries, gas & oil, and energy from our inflation numbers?

Why do we not count individuals that have stopped looking for jobs from our unemployment numbers?

Why do we not count any of our promised benefits of Social Security, Medicare, and pensions in our national debt?

Why do we not know the balance sheet of the Federal Reserve, a private, yes private bank we have given the right to print money for us and charge us interest?

Do we know what our national debt really is?  Keep reading…


US Government ‘hiding true amount of debt’

THE actual figure of the US’ national debt is much higher than the official sum of $US13.4 trillion ($14.3 trillion) given by the Congressional Budget Office, according to analysts cited on Sunday by the New York Post.

“The Government is lying about the amount of debt. It is engaging in Enron accounting,” said Laurence Kotlikoff, an economist at Boston University and co-author of The Coming Generational Storm: What You Need to Know about America’s Economic Future.

“The problem is we’re seeing an explosion in spending,” added Andrew Moylan, director of government affairs for the National Taxpayers Union.


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Here we go folks, the trigger hasn’t been pulled but the Fed said they would and are looking to at the appropriate time.  Gold shot up as soon as it was announced, which means the market believes they will use “quantitative easing”.  Printing money to buy debt.  The US dollar also declined on the news.  You must remain watchful, for as soon as they pull the trigger, know inflation, maybe hyperinflation is on the way.


Fed Signals It May Take Further Steps to Boost Economy

The Federal Reserve on Tuesday inched closer to fresh steps to bolster a sluggish U.S. recovery, saying it stood ready to provide more support for the economy and expressing concerns about low inflation.

United States Federal Reserve
Tetra Images | Getty Images
United States Federal Reserve

The U.S. central bank’s policy-setting panel made no shift in monetary policy at the end of a one-day meeting, keeping overnight interest rates near zero, but it opened the door wider to pumping more money into the economy.

“The committee will continue to monitor the economic outlook and financial developments and is prepared to provide additional accommodation if needed to support the economic recovery and to return inflation, over time, to levels consistent with its mandate,” the Fed said in a statement.

After its meeting on August 10, the Fed had simply said it would “employ its policy tools as necessary.” The Fed underscored its concerns over slowing inflation in its statement on Tuesday, saying the underlying rate of inflation was below levels consistent with its mandate for price stability and full employment.


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Big decision tomorrow…

Do we fire up the printing press for another…gulp…1-2 trillion dollars?

Quantitative Easing = print money to cover purchase

This is one of the triggers we have been watching that could signal our collapse and make way for global currency and eventually global government.

We will see, tomorrow is the first decision point…


Fed Mulls Trillion-Dollar Policy Question

How much of a boost to the U.S. recovery could another trillion dollars or two buy?

United States Federal Reserve. Leaders at the Fed meet Tuesday to analyze the benefits of increasing the money supply.
Tetra Images | Getty Images
United States Federal Reserve. Leaders at the Fed meet Tuesday to analyze the benefits of increasing the money supply.

That’s a tricky question for the Federal Reserve when it meets Tuesday to debate what would warrant pumping more money into the financial system.

To battle the financial crisis, the Fed bought $1.7 trillion of longer-term Treasury and mortgage-related bonds, supplementing its pledge to keep interest rates near zero for a long time.

All told, it helped stabilize a collapsing financial system and to avert what could have been a second Great Depression.

Now, faced with a 9.6 percent jobless rate and below-target inflation, Fed policymakers are trying to gauge how much they could achieve if they resume massive quantitative easing.

Few analysts expect the Fed to launch a new round of bond buying this week, and uncertainty over the impact of fresh moves may be a factor keeping the central bank on the sidelines.

“I think part of the hesitancy of the committee to use quantitative easing a second time around relates to views of its effectiveness,” said Vince Reinhart, a former Fed staffer.


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This is a great article on the state of our worlds fiat currency systems and their attitude toward gold.

Greenspan made an amazing statement this week.  He stated on September 15th:

“Fiat money has no place to go but gold.”

What could he mean by that?  He continued:

He further commented that “if all currencies are moving up or down together, the question is: relative to what? Gold is the canary in the coal mine. It signals problems with respect to currency markets. Central banks should pay attention to it.”

Unfortunately, they aren’t as outline further in the article.

These events are all starting to intersect.  No Fiat currency has ever succeeded.

We will at one point, see our leaders declare that the current currencies are not working but there is a better plan to move to a single more stable global currency.

Until then we will continue to see the attacks on gold, to keep the fiat illusion firmly in place.

If you haven’t read Atlas Shrugged, I would highly recommend it.  I began reading it recently and it was spooky how all the characters and philosophies could have just as easily been the last two years.  They matched exactly…


Atlas just shrugged

On September 15 former Federal Reserve Chairman Alan Greenspan made a speech to the Council on Foreign Relations. Some very interesting comments he made with respect to gold in response to a question were reported in an editorial in yesterday’s New York Sun, “Greenspan’s Warning on Gold”:


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This is one of the areas that could trigger our rapid decline.  If they decided to sell off our debt or even just stop buying it, we would be in a world of hurt and would have to start printing.  I do not believe the Fed has any bullets left to counter.

It will be very interesting how this develops, can you imagine if we had to print money to cover the $1 trillion from the previous treasure sales article and also this $1.5 trillion?  What would $2.5 trillion do to our inflation rate?


Chinese think tank warns US it will emerge as loser in trade war

A State Council think-tank in China has warned Washington that the US will come off worst in a trade war if it imposes sanctions against Beijing over the two nations’ currency spat.

yuan; Chinese think tanks warns US it will emerge as loser in trade war
The US is considering legislation to punish Beijing for holding down the yuan Photo: AFP

Ding Yifan, a policy guru at the Development Research Centre, said China could respond by selling holdings of US debt, estimated at over $1.5 trillion (£963bn). This would trigger a rise in US interest rates. His comments at a forum in Beijing follow a string of remarks by Chinese officials questioning US credit-worthiness and the reliability of the dollar.

China’s authorities seem split over how to respond to moves on Capitol Hill for legislation to punish Beijing for holding down the yuan. The central bank has ruled out use of its “nuclear weapon”, insisting that it would not exploit its $2.45 trillion of foreign reserves for political purposes. “The US Treasury market is a very important market for China,” it said.

However, the mood is hardening on both sides of the Pacific. The dispute risks escalating if China’s trade surplus with the US climbs further and more US jobs are lost. US Treasury Secretary Tim Geithner, who has taken a softly-softly line in the past, said on Friday that China had done “very little” to correct the undervaluation of the yuan since ending the dollar peg in June.

Mr Ding reflects thinking among some in the Poltiburo, who seem convinced that the US is in decline and that China’s rise as an exporter of goods and capital give it the upper hand.

“They are utterly wrong,” said Gabriel Stein from Lombard Street Research. “The lesson of the 1930s is that surplus countries with structurally weak domestic demand come off worst in a trade war.”

He described the implicit threat to sell Treasuries as “empty bluster” because Beijing’s purchase of these bonds is a side-effect of its yuan policy. “Bring it on: it will weaken the dollar, which is what the US wants. The interest rate effect can be countered by the Fed.”

“Some Chinese officials seem to believe that buying Treasuries underpins US public spending. In fact China’s mercantilist policy is forcing the US to run large deficits against its own interest. China should be terrified of a trade war.”


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