This page has been archived and commenting is disabled.

Bernanke "Explains" 100 Years Of The Federal Reserve (And It's War On Gold?) - Live Webcast

Tyler Durden's picture




 

With Janet stealing the limelight, we really don't expect any market-moving fireworks from the lame-duck Bernanke's town hall presentation to US educators this evening. Discussing the Fed's 100-year history and his efforts to bring greater transparency to the central bank's actions, Bernanke will also take questions (which may well be much more interesting than the speech itself). But, to ensure some 'fair-and-balanced' coverage, we offer an alternate history of the Fed's 100-year war against gold (and economic common sense).

 

Bernanke's 100-Year History Of The Fed - Live Stream:



Live streaming video by Ustream

 

Nick Barisheff's alternate 100-Year History of the Fed's War Against Gold And Economic Common Sense...

Federal Reserve Centennial Anniversary_Executive Summary_Final_Formatted_12 11 13.pdf

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 11/13/2013 - 19:55 | 4152273 StacksOnStacks
StacksOnStacks's picture

FUCK YOU, BERNANKE!

Wed, 11/13/2013 - 20:00 | 4152284 Rakshas
Rakshas's picture

what he said............

Wed, 11/13/2013 - 20:10 | 4152313 dryam
dryam's picture

Lying Mother Fucker!!!!!!!!

Wed, 11/13/2013 - 20:31 | 4152396 dryam
dryam's picture

I love the very blank look on that teacher's face after Ben's long-winded unnecessarily complex crazy answer to his simple question about concerns children have about the debt.

Wed, 11/13/2013 - 20:13 | 4152314 Looney
Looney's picture

He hopes that when he is dragged to the guillotine, he can say, “I was trying to be transparent”… FotherMucker! ;-)

Looney

 

Wed, 11/13/2013 - 20:12 | 4152317 DoChenRollingBearing
DoChenRollingBearing's picture

Yes.  A "new tradition" (F.U.B.)?

LOL...

 

Gold, fishez!  And don't you forget it!

Wed, 11/13/2013 - 20:00 | 4152282 Peter Pan
Peter Pan's picture

Few organizations can say that they have a 100 year old crime record without a single conviction for counterfeiting, manipulation and theft.

Wed, 11/13/2013 - 22:54 | 4152820 SafelyGraze
Thu, 11/14/2013 - 08:50 | 4153433 gold-is-not-dead
gold-is-not-dead's picture
Institute for the Works of Religion and Hustling

 

 

Wed, 11/13/2013 - 20:00 | 4152286 GrinandBearit
GrinandBearit's picture

Sorry Ben... Gold will win.

Fiat funny money will burn and turn to ash.

Wed, 11/13/2013 - 20:05 | 4152300 Bear
Bear's picture

Are you saying that helicopters run out of gas?

Wed, 11/13/2013 - 20:04 | 4152295 Bay of Pigs
Bay of Pigs's picture

It's hard to listen to this lying windbag.

Bold measures? Fuck me....

Wed, 11/13/2013 - 20:04 | 4152297 BlobbyBlueBland
BlobbyBlueBland's picture

The Fed causes recessions and depressions on purpose. It's owners profit enormously from the intentional "business cycle".

Wed, 11/13/2013 - 20:07 | 4152303 bubblemania
bubblemania's picture

Janet says there will be no reduction in stimulus until we all behave.

Wed, 11/13/2013 - 20:10 | 4152306 sixsigma cygnus...
sixsigma cygnusatratus's picture

Wasn't the whole purpose of the Federal Reserve Act to prevent financial panics like in 1907, 1893, 1873, 1819?  Yet here we are again, 2013...

"...our country needs informed citizens..." = SHEEPLE! Move along, nothing to see here.

Wed, 11/13/2013 - 20:26 | 4152378 Clycntct
Clycntct's picture

 All that backround gave them the ammo to smooth out that little bump called 1929.

Wed, 11/13/2013 - 20:09 | 4152309 farFromEq.
farFromEq.'s picture

You see, Dimon provided us with an algotron called 'print'

Wed, 11/13/2013 - 20:18 | 4152338 ebworthen
ebworthen's picture

Is it odd that I want to beat this bearded balding fuckwad to a pulp - along with every single one of his ilk including Yellen - then draw and quarter them, feed their remains to a pack of dogs, vultures, and rats - while putting their heads on pikes in front of the Marriner S. Eccles Building for people to throw tomatoes, apples, and rotten eggs at?

Wed, 11/13/2013 - 22:47 | 4152801 Groundhog Day
Groundhog Day's picture

doesn't sound odd at all on zh

Wed, 11/13/2013 - 20:16 | 4152340 Seasmoke
Seasmoke's picture

HANG HIM !

Wed, 11/13/2013 - 20:22 | 4152344 sixsigma cygnus...
sixsigma cygnusatratus's picture

"We aim for 2% inflation." It'll work, just ask Zimbabwe (because 89,700,000,000,000,000,000,000% inflation also includes 2%, see?).

Wed, 11/13/2013 - 20:19 | 4152348 notquantumdum
notquantumdum's picture

A little off-topic, but what does it mean when even editorials in the IBD [Investors Business Daily] are more-recently, apparently, more often, referencing austrian economists in a quite positive way?

http://news.investors.com/ibd-editorials-perspective/111313-679077-washi...

(But, hey, this article is about the Fed so I figured it was a decent place to reference the folly of state planning.)

Wed, 11/13/2013 - 20:23 | 4152365 ebworthen
ebworthen's picture

THE LONG TERM PROBLEM IS THE FED ITSELF YOU FUCKING WORM!!!

Wed, 11/13/2013 - 20:30 | 4152393 GrinandBearit
GrinandBearit's picture

The economy is recovering? - LMAO!

50 million people on food stamps Ben.

Millions have stopped looking for jobs because there are none.

The economy is NOT recovering... you fucking lying sack of shit!

Wed, 11/13/2013 - 20:33 | 4152400 Dre4dwolf
Dre4dwolf's picture

The fact remains, the fastest road to economic recovery is debt elimination to eliminate teh debt held by the public.

If you eliminate

Student Debt

Mortgage Debt

Car Loan Debt

Credit Card Debt

 

You just removed all drag on the economy, and people who are no longer burdened by the debt from the crisis era that the banks are responsible for, would be free to generate wealth.

Debt as a portion of GDP would shrink.

Real Wealth would rise (not just nominal wealth).

 

 But the system isn't interested in economic growth.

Its interested in turning humans into debt slaves to feed the masters so that the federal reserve can continue to afford to transfer wealth from Americans to the U.K. and to the Vatican (because the U.K. is in debt to the vatican)

Approx. 40% of U.S. Tax dollars go to the U.K. and then 60% goes to the Vatican as per the admisions of the former officer of the world bank organization Hudes.

Wed, 11/13/2013 - 20:35 | 4152416 W74
W74's picture

Yeah, why is the UK in debt to the Vatican?

Wed, 11/13/2013 - 20:41 | 4152432 Dre4dwolf
Dre4dwolf's picture

Some bullshit from 100 years ago, check out the Karen Hudes interviews.

Wed, 11/13/2013 - 21:04 | 4152494 donsluck
donsluck's picture

You remind me of a ski lift operator I met who opined that all work should be voluntary and all people should be paid a "living wage". I asked him if all this came to pass, what would he be doing? "Dude, skiing!" he said.

The only way to discharge debt and that has to be done through the courts, and this is the only way money enters the economy without incurring liability. Your suggestion would wipe out savers in favor of borrowers, so disagree.

Wed, 11/13/2013 - 23:54 | 4152988 RaceToTheBottom
RaceToTheBottom's picture

Dude, skiing.....

I used to be a ski instructor and the only employees who were ski instructors were either 18-28 year stoners or 55-65 year old retires, some from financial jobs.

When I thought I could retire, eventually, I thought doing the ski instructor thing would be nice....  Now since I have given up any plans to retire, maybe not....

Wed, 11/13/2013 - 21:21 | 4152556 new game
new game's picture

ps. nobody put a gun to these dumb mother fucking idiots that signed up for these loans.

the federal reserve system is a debt pnzi schem, put please blame the muther fucking idiots that sign for the dumb futha fucking loans - hello anyone home!

Wed, 11/13/2013 - 23:26 | 4152919 Hohum
Hohum's picture

Dre4dwolf,

Very funny: "People...would be free to generate wealth."  Who are all these people who generate wealth without relying on a commensurate increase in debt?

Wed, 11/13/2013 - 20:34 | 4152410 W74
W74's picture

Anyone catch that teacher asking him about interest rates and savings?  This jew kike is sweating bullets.  He said nothing, answered nothing.

Oh, and inflation is ridiculous in the real world.

Wed, 11/13/2013 - 21:07 | 4152504 JR
JR's picture

How long can a nation allow a plutocracy of central bankers to punish its savers who form investment capital and rob its retired?  Richard Benson of Benson’s Economic & Market Trends wrote the article below nine years ago; and still the money manipulators, the international bankers who call themselves the Federal Reserve System, continue to disregard ethical law and to destroy the civilization of which they gained parasitic control in 1913—the United States of America.

The Federal Reserve System from that year forth has not only dictated governmental policy, it has used the art of the manipulation of money to impoverish America’s families and to pervert the order of the nation’s production and distribution of goods.  The manipulation of America’s common measure of value, the dollar, by usury and the alteration of the price-level has distorted all markets and has transferred the wealth of this nation’s producers into the hands of the few.

And by controlling the Congress and the Presidency, and thus the Supreme Court, the private bankers who control the Fed have set the stage for moving America’s national sovereignty under the domination of a world-wide central bank, a one-world currency and an international organization subject to finance.

 The Federal Reserve’s policy: Punish Savers and Rob the Retired  by Richard Benson

 February 23, 2004

Before the Alan Greenspan model of economic growth which relies on creating rising asset prices in stocks, bonds and housing to fuel spending, our economy ran on a traditional and conservative model.  The old model relied on paying savers a real rate of return to forgo consumption so that precious capital could be made available for investment. 

The new model punishes savers and guarantees they will receive a rate of interest far below the inflation rate on cash, bonds or stocks.  This rate of interest does not adequately compensate savers for the risk of default or loss.  Moreover, capital will be provided for investment but not through recycling savings.  Instead, capital will be provided by creating new money and credit. This creation of new money and credit defines inflation and favors debtors over creditors.

A major part of the new Fed economic model is designed to use savings to subsidize corporate profits. Psychologically, high stock prices make people feel so successful that they don’t feel the need to save when so much wealth is freely created by just owning stocks. 

Currently (2004), 30% of the valuation of the S&P 500 is dominated by finance companies, and another 10% of corporate profits are related to financing activities.  (For example, if GM did not own GMAC it would not have made any profits last year; 40% of GE’s profits are from finance.) So, in today’s world of leveraged finance, 40% of corporate profits are created by making sure savers only get 0.5% on their Money Market accounts and then get to borrow their own money back to mortgage their house or finance their credit card balance.

Getting 0.5% on your bank balance, paying 4%-6% on a mortgage and 12%-18% on a credit card, is great for bank profits!

Worse yet, at least another 15% - 20% of the increase in corporate profits come from the falling dollar. Any American traveling to Europe and elsewhere abroad this spring and summer will notice how savers are being punished!

In the old days, finance company profits were only 12% or, at most, 15% of corporate profits.  Now, with financing 40% of corporate profits and dollar devaluation another 15%, how can the Fed ever firm without wiping out the stock market?

It is no surprise, then, that savers and retirees on fixed incomes are in a world of pain. The Federal Reserve’s clear policy is to make them pay for the economic recovery.  In the 4th quarter of 2003, personal interest income alone was falling at a $30 Billion annual rate! Savers and retirees are being punished so that Fannie Mae can make record profits.  Moreover, principals at major Wall Street firms and hedge funds using leveraged finance as their business model, can once again trade up on their mansions in the Hampton's this summer…

 (The real interest rate is the interest rate minus the inflation rate – or, your “real return”.)    Robbing savers could go on for years! (And so it has.) Deciding how to invest is not easy because not only are the stock, bond and housing markets artificially inflated in price, but, at some point, world central bank money growth may not be able to prevent violent market corrections.

http://www.sfgroup.org/Punish%20Savers%20and%20Rob%20the%20Retired.htm

Wed, 11/13/2013 - 20:37 | 4152422 bnbdnb
bnbdnb's picture

janet yellen is a woman
women like to spend money
woman especially like to spend money on credit
women especially especially like to spend money on credit thats endless
in essence, go long

Wed, 11/13/2013 - 20:38 | 4152424 bnbdnb
bnbdnb's picture

janet yellen is a woman
women like to spend money
woman especially like to spend money on credit
women especially especially like to spend money on credit thats endless
in essence, go long

Wed, 11/13/2013 - 20:39 | 4152426 AgileArjuna
AgileArjuna's picture

the Bull$hit is rich tonite

Wed, 11/13/2013 - 20:42 | 4152438 AgileArjuna
AgileArjuna's picture

Debas-ics

Wed, 11/13/2013 - 20:44 | 4152441 Its Only Rock N Roll
Its Only Rock N Roll's picture

Well at least the Fed's QE programs hasn't influenced equity prices ONE BIT

said no one...with a brain

except these asshats at McKinsey

http://www.reuters.com/article/2013/11/14/us-usa-fed-qe-effects-idUSBRE9...

 

 

Thu, 11/14/2013 - 00:32 | 4153077 Bear
Bear's picture

McKinsey is owned by who ... oh, Wall Street

Wed, 11/13/2013 - 20:44 | 4152442 JR
JR's picture

Chris Rossini today makes the case for the need to get rid of the Fed. He gives the example of a gambler who loses all his money in a casino and walks out with nothing, but bankers put their arms around him, stuff money in his pockets and push him back into the casino; and he sits down and starts all over again. That’s what the Federal Reserve does for the TBTFs.

And if you want the real lowdown on 1907 and 2008, Rossini has it. Here’s the story.

Ideas Created the Federal Reserve…Ideas Can Get Rid of It

By Chris Rossini - Economic Policy Journal

November 13, 2013

The Washington Post‘s Wonkblog, which can be counted on to defend every government mischief imaginable, reports on an “all-star economic conference” that took place in DC. Whenever you hear of an “economic conference” in DC, it can only mean trouble. The real economic conferences take place in Auburn, Alabama.

In the DC conference, the King of the “all-stars” — Fed Chairman Bernanke — graced the stage, and would provide a history lesson for all of the attendees. Bernanke described the similarities between the Panic of 1907, and the Panic of 2008.

The 1907 panic was created by fractional-reserve banking. When the bank runs got underway, and panic set in amongst the public, JP Morgan orchestrated the bailouts and the “liquidity” to “save the system”. Remember this was pre-Fed.

The 2008 panic was also created by the fractional-reserve banking system — along with — the central banking counterfeiter that now exists. The bailouts this time around were provided by “The Hero”.

Before we go any further, a few things have to be understood. First, both in 1907 and 2008 the banking systems were dishonest and fraudulent. The situation in 1907 is actually preferable to today because, back then, gold still provided a check on the bankers. In 2008 (and today) there are no checks. It’s basically unlimited power for the bankers to finance whatever they want (until economic law shuts them down eventually).

Next, bailouts were (in 1907) and are (in 2008 and today) horrible “moral hazards”.

Picture a busted gambler that walks out of a casino. He just lost his money, his car, his house, and his grandmother’s money that was loaned to him.

As the gambler walks out of the casino “in a panic”, JP Morgan (in 1907) and Ben Bernanke (in 2008) stuff the gambler’s pockets with loads of money. They even stuff money into the gambler’s mouth, just for good measure.

Morgan and Bernanke provide a “bailout” to save the gambler’s “system,” and they send him right back into the casino. The media declare Morgan and Bernanke to be heroes; at least until enough time passes, and the gambler inevitably comes out again with empty pockets and “in a panic”.

Here’s one more way to think of bailouts. Ten years ago, Blockbuster Video had 9,000 locations. In the marketplace, it doesn’t matter how many locations you have. If you can no longer operate profitably, you’re toast. Resources are removed from your hands are transferred to those who are succeeding at satisfying the most urgent desires of consumers.

By early 2014, the last of the 9,000 Blockbuster stores will be closed. No “panics”. No “systemic crisis”. In fact, most people won’t even be aware of it. It’s just the market doing its thing, as usual, without much fanfare.

How crazy would it be for the taxpaying public to keep those 9,000 stores open? Americans would (I think) rise up in hysterics if someone (like Krugman) came up with an idea for a Blockbuster TARP.

Blockbuster also does not have a rent-seeking cartel, like the banks do. If they did, who knows…perhaps Blockbuster would be able to keep its “video rental system” going at everyone else’s expense.

We have just defined the prime reason for existence of The Federal Reserve…to make sure that the major banks never go under. The Fed is there to create as many paper dollars and electronic digits as possible (and at the expense of every individual in the world) to make sure that these “elite” individuals never have to close up shop.

Bernanke, during his “all-star conference” sings a different tune about the problems that face us. Both in 1907 and 2008, there weren’t enough “regulations” on the system:

“Also interesting is that the 1907 panic involved institutions–the trust companies–that faced relatively less regulation, which probably contributed to their rapid growth in the years leading up to the panic. In analogous fashion, in the recent crisis, much of the panic occurred outside the perimeter of traditional bank regulation, in the so-called shadow banking sector.”

Nonsense.

The Mercatus Center reports“According to the Code of Federal Regulation, more than 47,000 regulations apply to the financial sector…”

Apparently, according to Bernanke, 47 thousand regulations weren’t enough. Perhaps 48,000 would do the trick? In essence, Bernanke is saying ‘get off our back’ and tries to deflect the issue. The easiest go-to excuse that every bureaucrat falls back on is “we need more regulations.”

Here’s the bottom line on the Panics of 1907 and 2008. It’s something that was not said at the “all-star conference” and will never be said in any conference in Washington DC.

The Panic of 1907 was the excuse, or the catalyst, that was used to push for the establishment of the Federal Reserve. The bankers would not risk having to rely on one man, like JP Morgan, to bail them out the next time around. The American public would provide the bailouts going forward (whether they like it or not). That can only be done with a central bank in complete control of the money supply.

Before pulling something so drastic over the American public, a huge propaganda campaign would be necessary. As EPJ readers know: Ideas rule the world.

In 1908, J.R. Duffield, Sec. of the Bankers Publishing Co. said: It is recognized generally that before legislation can be had there must be an educational campaign carried on, first among the bankers, and later among commercial organizations, and finally among the people as a whole.”

In other words, new ideas would have to permeate society before something so extravagant could ever be pulled off. It’s also important to note that everyone wouldn’t have to adopt the new ideas, only a critical mass, only enough.

Here’s yet another key takeaway from the Panic of 1907. During financial panics, people are more open to new ideas. It’s a time that they actually search for answers. A mere 6 years after the Panic of 1907, the banker’s dream became a reality. They won that battle of ideas.

Here we are in 2013, and everyone knows (even the bankers themselves) that another crisis, or even multiple crises, are just around the corner. Fortunately, the American public that has been ripped off for 100 years have tools at their disposal that never existed before: instant communication with just about anyone in the world, and a universe of knowledge.

Millions around the world have also heard the idea of End of The Fed. …

http://www.lewrockwell.com/2013/11/chris-rossini/ideas-created-the-fed%E2%80%A8/

Wed, 11/13/2013 - 20:54 | 4152469 Debt Slave
Debt Slave's picture

100 years of the greatest swindle in the history of mankind.

Wed, 11/13/2013 - 20:55 | 4152472 Bullionaire
Bullionaire's picture

Jeez, Nick...you just HAD to go and mention the Rothschilds, didn't you?

Listen, nobody tell GATA, OK?  Shhhhhhhhhhhhh...

 

http://www.bullionbullscanada.com/gold-commentary/26446-gata-now-funded-...

Wed, 11/13/2013 - 21:32 | 4152587 BullyBearish
BullyBearish's picture

Let me tighten it up a little for him..."Just buy every F&(*ing Dip!!"  There, fixed it.

Wed, 11/13/2013 - 21:46 | 4152616 thisandthat
thisandthat's picture

Err... ZH, Granma Nutsy says it's its, not it's...

Wed, 11/13/2013 - 22:18 | 4152716 yogibear
yogibear's picture

When the dollar blows I hope the masses remember this and tar and feather Bernanke.

What an arrogant and treasonous guy.

Thu, 11/14/2013 - 01:12 | 4153135 Radical Marijuana
Radical Marijuana's picture
"On December 13, 2013, the U.S. Federal Reserve (the Fed) will celebrate its 100th birthday." I thought it was December 23, not 13?
Do NOT follow this link or you will be banned from the site!