Comments on: Federal Reserve Balance Sheet

By: Ron

Ron — Tue, 14 Oct 2008 08:49:55 +0000

The Federal Reserve is Guilty of Helping Create the Global Financial Meltdown

Many investors and concerned citizens around the world are showing their outrage at what the Federal Reserve has done to the American economy with their easy money policies which caused the credit & real estate bubble and subsequent global financial meltdown.

Join the thousands who are signing & commenting on the Abolish the Federal Reserve Petition at http://www.petitiononline.com/fed/petition.html

By: Dave

Dave — Mon, 13 Oct 2008 15:58:00 +0000

I disagree with the idea authors idea that Ben will simply withdraw the increased reserves when the crisis “settles”. That wealth isn’t comming back, its been wasted. If the Treasury tries to withdraw the new money its created the system will just start to collapse again.

When these “temporary” lending facilities started I had a feeling they were as temporary as most government programs.

By: Chris

Chris — Mon, 13 Oct 2008 15:32:10 +0000

JDH is a national treasure.

By: troy

troy — Mon, 13 Oct 2008 13:19:10 +0000

John, Thanks for this article.

It clearly reminds me that fiat money will ultimately end with an inflationary hell. Wheather you hit deflation or stagflation the ultimate goal is to debase the USD. I for one am taking advantage of this futile USD bunce to shift assets to CHF/Ag/Au.
GL all.

By: Milton Arbogast

Milton Arbogast — Mon, 13 Oct 2008 02:38:10 +0000

Anonymous,

Thanks very much for the reference to Kemp’s article.

What it adds is the role of China. I agree with Anonymous that it, too, is “must read”.

By: Anonymous

Anonymous — Sun, 12 Oct 2008 22:12:52 +0000

A much clearer description of the same events were recently published in the Financial Times Alphaville, entitled “Follow the Money” and written by John Kemp

By: www.slycapital.com

www.slycapital.com — Sun, 12 Oct 2008 21:55:51 +0000

My FX margin account has been slashed!

I have been wondering if this would happen but to actually see it is shocking. My currency trading account has had its margin slashed from 100:1 to 20:1! Without any notification which is obviously illegal.

This takes my positions from an average leverage of 3% which is a very conservative play to 16% which is getting very dangerous.

People that had higher leverage than me and are not paranoid enough to check their accounts on the opening of the currency markets will get margined out of even winning positions if they have high leverage and their positions temporarily move against them.

Your brokers are in survival mode – beware!

By: Dan

Dan — Sun, 12 Oct 2008 20:46:30 +0000

hyperinflation is bad for everyone, even the wealthiest of the population store the bulk of their wealth in financial securities which are the most adversely affected in a hyperinflation. business owners cannot pass on expenses quick enough, employees cannot afford food…when food becomes unaffordable you get riots.

an ugly deflation is preferable to hyperinflation any day.

By: Milton Arbogast

Milton Arbogast — Sun, 12 Oct 2008 19:09:16 +0000

If I read this correctly, Bernanke, I would say essentially alone, is trying, by preventing hyperinflation, to save western civilization.

Bernanke’s reading of history appears to have convinced him that hyperinflation will bring another Hitler to power in the US, easily the most militaristic nation the world has ever seen.

One man. Wow.

Think of the pressure to inflate out of debt. Who are the debtors on the playing field?

1) The United States government.

2) The United States population.

3) The United States “financial industry” (an oxymoron for all time).

One man fighting them all.