Tag: Federal Reserve

Biden Robs the Federal Reserve After the Supreme Court’s Presidential Immunity Decision

Michael Matheron2 Comments
President Joe Biden captured on Federal Reserve camera

This morning, acting quickly on the Supreme Court’s decision granting presidential immunity from criminal prosecution, President Biden robbed the Federal Reserve. A mere 22 hours after the Court’s decision, and accompanied by dozens of armed Secret Service agents, the President, disguised in a black mask and sunglasses, plundered the nation’s bank of all of its cash on hand. While personall directing what he called “a cash withdrawal,” he explained that in accordance with the court’s decision yesterday:

“I’m simply exercising one of the core powers of the presidency which includes assuring that the banking system is acting in the best interests of the nation. I decided that the Federal Reserve was not. Therefore, I am seizing their cash until such time as I decide to give it back.”

Under the Supreme Court holding, the President may engage in what some might call criminal behavior and may not be prosecuted for it after leaving office. Also, it is already established as Department of Justice policy that a president may not be criminally indicted during his tenure. The Supreme Court, however, did not grant carte blanche permission for presidents to act unlawfully and escape prosecution after they leave office. For example, his audacious Federal Reserve heist, might, by some, be considered to be not among his core powers, which include those actions that can only be taken by the president, including the naming of ambassadors, acting as Commander-in-chief, and issuing pardons. Other presidential actions, the Court held, outside of his core powers may be examined by a court to determine whether they are nonetheless within overall presidential powers, and a prosecution of a former president could be brought if his actions are adjudged as “unofficial acts” undertaken, for instance, for personal benefit alone.

President Biden reflected on this immediately after robbing the Federal Reserve of all of its currency on hand, perhaps billions of dollars:

“As president, I have a responsibility to protect the American people from bank fraud. As soon as the court handed down its decision in Trump v. United States, I decided that the Federal Reserve was engaging in bank fraud. Don’t ask why, the court said I don’t have to tell you, but I assure the American people that none of this cash will be used to finance my reelection campaign. Not a penny. So don’t worry. Really. In any event, my borrowing the Federal Reserve’s cash foe safekeeping is well within my powers because as head of the executive branch I’m responsible for a multitude of banking-related agencies. What Republicans may label as a smash-and-grab operation is well within the plethora of official acts which I may undertake. If Mitch McConnell objects take it up with the Supreme Court. Regardless, I will secure this cash in the White House itself, within perhaps the best guarded building in the country for the duration of my time as president which will be until 2029. After that, we’ll see what the Supreme Court has to say.”

It all makes sense to me, and I look forward to President Biden’s next official act, which may occur this very day as the President was heard directing his getaway limousine driver to “head to the U.S. Mint.” Whether pillaging the Federal Reserve is a presidential power or not, at least this caper will take the spotlight off Donald Trump for a news cycle.

GOP Congressional Leadership Letter to Ben Bernanke, as Subtle as a Baby Ruth in a Federal Reserve Punch Bowl

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September 21, 2011

Why did the GOP congressional leadership send a snail-mail missive to Federal Reserve Chairman Ben Bernanke? Haven’t they gotten the news about “e-mail”? Do they need pen pals that badly? Do they need a loan? Or what?

Imagine, these legendary GOP lunkheads suddenly looking for “ample data,” “quantifiable benefits,” “measurable outcomes,” and . . . evidence!  Characteristically, in their letter below, they offer none of those to back up their assertions about the effects of Fed policies. They offer nothing but naked – and uncharacteristically weaselly – claims that “the Federal Reserve’s actions have likely led to more fluctuations and uncertainty in our already weak economy,” and “further intervention by the Federal Reserve could exacerbate current problems or further harm the U.S. economy.” 

It’s not surprising this Gang of No would “instruct” the Fed this way. They speak for the bigger gang of GOP/TP Fed haters. In good times and in bad times they detest the Federal Reserve. Now, however, having consciously slowed the economy by blocking any meaningful – and temporary – fiscal stimulus, they must kneecap the Fed. And now. Why? To cut off monetary stimulus as well. They cannot win the White House in 2012 without a substantially weakening economy between now and November 2012. Moreover, the blatant, if hamfistedly muted, threat against Bernanke and the Fed inherent in their letter is as subtle as a Hustler billboard in Vatican Square.

One wonders, are they playing chicken with a depression? Are they actively courting one for political purposes alone? It seems unlikely to seek economic catastrophe, but, recall, they are batsh*t crazy. We ought never underestimate batsh*t, or crazy. Here’s their cris de coeur, dated September 19, 2011:

“Dear Chairman Bernanke,

It is our understanding that the Board Members of the Federal Reserve will meet later this week to consider additional monetary stimulus proposals. We write to express our reservations about any such measures. Respectfully, we submit that the board should resist further extraordinary intervention in the U.S. economy, particularly without a clear articulation of the goals of such a policy, direction for success, ample data proving a case for economic action and quantifiable benefits to the American people.

It is not clear that the recent round of quantitative easing undertaken by the Federal Reserve has facilitated economic growth or reduced the unemployment rate. To the contrary, there has been significant concern expressed by Federal Reserve Board Members, academics, business leaders, Members of Congress and the public. Although the goal of quantitative easing was, in part, to stabilize the price level against deflationary fears, the Federal Reserve’s actions have likely led to more fluctuations and uncertainty in our already weak economy.

We have serious concerns that further intervention by the Federal Reserve could exacerbate current problems or further harm the U.S. economy. Such steps may erode the already weakened U.S. dollar or promote more borrowing by overleveraged consumers. To date, we have seen no evidence that further monetary stimulus will create jobs or provide a sustainable path towards economic recovery.

Ultimately, the American economy is driven by the confidence of consumers and investors and the innovations of its workers. The American people have reason to be skeptical of the Federal Reserve vastly increasing its role in the economy if measurable outcomes cannot be demonstrated. We respectfully request that a copy of this letter be shared with each Member of the Board.

Sincerely, Sen. Mitch McConnell, Rep. John Boehner, Sen. Jon Kyl, Rep. Eric Cantor”

08-09-2011 – Stock Market – Confusion Reigns on The High Ground

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August 10, 2011

We found the UP elevator!!  And this despite an equivocal Federal Reserve announcement; manufacturing and productivity down; unemployment still up with more folks opting out of the workforce; crazy Tea Partiers still in charge, promising more and worse cuts; etc. BUT, with interest rates near zero and the low rates on long term debt of nearly all kinds, where is one to invest one’s money. Well, in high risk and, thereby, high yield Spanish or Italian debt? In .005% savings accounts? How about expanding your business? Even more telling, how about starting a new business? There are other places to invest, but the spectrum of possibilities is less than dazzling.
 
Many don’t want to risk a single dollar. They’re hoarding cash, from the average Joe and Josepha to major corporations. Mutual funds and exchange-traded funds are in business solely to be almost always fully invested, and those entities with trillions to invest are likely the main drivers in this market. These investors will not, and cannot, sit on cash (i.e. T-Bills, old-fashioned money, etc.). Small percentage changes in market participants, and thus market psychology and tactics, can cause unpredictable results – have a look at the recent volatility statistics for the stock market.  This signals a hot, emotional, quick draw, quick shoot market. How long can that prosper?

In any event . many investors outside this mega-sized group have gone to gold, and have clearly done well, especially in the last 18 months. But aside from this well-known volatile investment, with less opportunities for investments with a payoff, there’s little choice other than the stock market. The market can be driven higher by sentiment alone. So, despite my downbeat expectations for the economy, I wouldn’t be surprised to see periodic bombastic rallies like today’s, driven by the (usually detested) short sellers covering their positions, bargain hunting (or so they think), institutions, ETF’s, and true believers who think all things rise. Moreover, those funds and day traders seeking quick capital gains will be attracted to the one place where they can invest in Apple one day and sell it short the next . . . and often gain by the volatility this causes. 
 
It’s reminiscent – but not analogous – of those days when a few big players – Mellon, Morgan, and other so-called robber barons – bought shares in a particular company to drive its price up, and thereby draw in the optimistic little guys. Then, with the price driven higher, sometimes in a matter of a week or less, they do the capitalist thing – like a shark on a wounded grouper, they attack: selling quickly, feasting on a nifty gain, with the little guys left to drown in their losses in panic selling. 
 
This time, though, I don’t think it’s a “conspiracy” of minds (although there is some of that), but an unconscious “conspiracy” caused by a modern system where trades in huge trading blocs rush the market at the speed of light, and then cause, through programmed price points in other systems, a cascade of selling (or buying, perhaps like today). These amoral systems are taking away the investor’s control, and the logic of these machines’ “personae” is to go, go, go . . . And are they leaving us behind?
 
Someone said, “All theories go to the end of their logic.”  What is the end of the markets’ logic nowadays when it – and gold – are perceived by many as the only opportunities for gain? And then there’s the unemployment rate, the underemployment rate, the loss of union-driven wage stability, the coming biggest tranche of local, state, federal layoffs and furloughs, and the return – not today, not tomorrow, but soon, and for the rest of your life – of the Tea Party Congress.  Oh, the humanity!

The Wounded Stock Market and the Political Abandonment of the Working Class

Michael MatheronLeave a comment

August 4, 2011

Today, I’m not simply referencing the equities market collapse over the past week, including today’s significant losses as of 2:30 p.m. There are many other reasons for this week’s swan dive. So, eager as I may be to do so, I can’t put this entirely at the door of the GOP and its maniacal dancing monkeys, the Tea party. This week, though, undeniably, the debt “deal” is among the forces decimating equity prices and Americans’ confidence. 

The deal’s unrelenting tight-fisted approach seems, at present, to rule out any fiscal stimulus emerging from Congress. The independent Federal Reserve’s “according to Hoyle” monetary stimulus efforts seem to have done little good stimulating employment growth and lending so far, and it shouldn’t be expected to be helpful in the future. The fed funds rate has for a long time been as low as a snake in a cesspool, and, today, the Treasuries that were almost a pariah two days ago are rallying across the board, sending interest rates lower than low. To what avail after four years of recession? (Note: We never emerged from it in 2009 . . .) And now, without fiscal stimulus, the country and the equally shaky world faces a likely killing dose of American “fiscal austerity” and the further unemployment it brings with it. Who will be able to buy cars, refrigerators, computers, or bubble gum? Who, then, will be able to provide the earnings that could revive this critically sick stock market? 

Well, no one, it seems, in D.C., thought about that very much. The Tea Party wrecking crew pushed our overly accommodating President and most of the Democratic and Republican parties into a final package that will pummel employment at all levels and in all sectors. The debt ceiling deal just signed into law will, perhaps radically, worsen employment, lessen personal income, and diminish already anemic personal spending. If we avoid what would be remembered as the 2nd Great Depression, we need to make some WPA-type Hail Mary passes, and soon. 

For now, though, the Tea Party and the GOP it commands stand stolidly and stubbornly by the windows in their House and watch all this destruction without so much as offering the tiniest ray of hope that we, as a nation, will pull together again as we did in the 1930s. Unfortunately, the President, an apparently conflict averse leader, as well as much of the far too “civil” Democratic party, also watch from afar as well. Just watching, it seems, deeming it too uncivil or uncouth or strenuous to fight for the country. The unindicted co-conspirators.