CNBC announced yesterday that “The ‘audit the Fed’ movement is taking a big step in Congress this week.” Only here’s the problem:
The bill seeks not a financial exam of the U.S. central bank but rather a peek behind the curtain of how monetary decision-making happens. LINK
The first time I read that, it me left somewhat stunned. “A peek behind the curtain” of how monetary decisions happen? Seriously? I think we get to see this in action every day between FOMC meetings, when the various Federal Reserve retards step up to the podium to drool all over themselves as they as mumble incoherently about raising interest rates at the next meeting. In fact, just today some chode from the Atlanta Fed named Lockhart stated that:
June certainly could be a meeting at which action could be taken. I think it is a little early at second-quarter data to draw a conclusion, so I am at this stage inconclusive about how I am going to be thinking about June, but I wouldn’t take it off the table.
Here’s SF Fed Head John Williams – this is just priceless: “I think the incoming data have actually been quite good and reassuring in terms of policy decisions, so, in my view, June is a live meeting.”
Really John, June is going to a “live” meeting? Does that mean that the rest of them have been fake? From where are you getting your data- the toy chest at your dentist’s office?
I hope that guy didn’t actually have to pay for his education because it was a colossal waste of money if he did. Do we really need Congress wasting time passing legislation to mandate a “peek” at that?
I just don’t understand how these Fed officials can threaten to raise rates predicated on the economic “data” that’s being released. It’s childish. Everyone knows the Fed can’t raise rates without collapsing the house of cards it has created. The sharp sell-off in the stock market today was attributed to the turret’s syndrome outbursts by these two idiots. But nothing could be further from the truth. The market sold off today in a reversal of the manipulated spike higher yesterday. The momentum-chasing computer algos began dumping the historically overvalued shares they gobbled up yesterday.
One of the big banks issued a study a couple weeks ago which showed that the only entities buying stocks right now are pension funds. “Smart” money is dumping shares at an unprecedented rate and really smart money is getting extremely net short and/or loading up on gold (it was revealed yesterday in an SEC filing that Soros Funds made gold its largest holding).
I said 12 years ago that the last asset remaining after housing for the elitists to loot would be the retirement assets. It’s starting: severely underfunded pension funds loading up on the overvalued stocks being dumped by insiders and “smart” money. “Underfunded” is a socially polite way to say “the pension fund has a big debt obligation to future beneficiaries.” An underfunded pension fund buying stocks on margin is no different than someone buying stocks in a IRA on margin, only the latter is not allowed by law.
An audit of the Fed will NEVER happen. This country will collapse before any kind of reform or change is ever possible. I knew the possibility of an audit of any substance died the very first time Ron Paul tried to pull a proposal through the House Financial Services Committee. Chairman Barney Frank sat on it before deciding to use it as toilet paper.
What do we need an audit for anyway? Everyone knows the Fed does not have the gold that it claims to be “safekeeping” on behalf of the U.S. Treasury. The Fed knows everyone knows. But as long as no one forces the Fed to open up its “deep storage” vaults, everyone can keep pretending that the gold is there.
A reader asked this question today: “if naked shorts are allowed to be dumped on the Gold and Silver exchanges without any regard for reality, how can the companies that are shorting be stopped from shorting? It seems to me they control the deck and the rules on the Comex and CFTC have been tailored to allow them to manipulate the market and if that is the case what can stop them?”
My answer is that the physical market will eventually cause a massive default by the naked shorts. But my view for the last 15 years has been that the U.S. will start a world war before it is forced by the physical market to reveal the truth. I stand by that call. A non-audit of the Fed is likely deferring the inevitable…