Ben Bernanke & US Fed 01 (May 08 - Nov 10 )

[winston]

Bernanke Victim of Identity Theft Ring

Federal Reserve Board chairman Ben Bernanke was one of hundreds of victims of an identity fraud ring that stole over 2.1 million dollars from individuals and financial institutions, Newsweek magazine reported on Wednesday.

The magazine, citing court documents, said the central bank chief became entangled in the scam after a thief stole his wife's purse in August of last year and began cashing checks on the family's bank account.

The purse-snatcher was working for a crime ring that federal agents and police in several US states had been investigating for months, Newsweek said, adding that Bernanke's wife, Anna, was not specifically targeted.

It said the theft of the Bernanke checkbook became part of a wide-ranging identity-theft investigation by the US Secret Service and US Postal Inspection Service which had been previously underway.

Newsweek said the probe culminated in a series of arrests, criminal complaints, and indictments brought by federal prosecutors in Alexandria, Virginia.

One of the group's ringleaders, Clyde Austin Gray, known as "Big Head," pleaded guilty to conspiracy to commit bank fraud last month, Newsweek said.

Gray employed an army of pickpockets, mail thieves, and office workers to swipe checks, credit cards, military IDs, and other personal records, it said, citing his plea agreement and other court records filed in his case.

Bernanke, in a statement to Newsweek, said "identity theft is a serious crime that affects millions of Americans each year.

"Our family was but one of 500 separate instances traced to one crime ring," he said. "I am grateful for the law enforcement officers who patiently and diligently work to solve and prevent these financial crimes."

http://www.newsmax.com/insidecover/bern ... 52836.html

[winston]

THE REAL REASON BEHIND THE FED SECRECY

For decades we have let a central bank control the value of our money with their boom/bust money printing policies. What do we have to show for it? A massively profitable banking industry, a record setting wealth gap and a struggling middle class and lower class U.S. consumer.

If the last 18 months aren’t a sign that the Fed policy of the last 25 years is massively flawed then I don’t what is.

http://pragcap.com/must-read-the-real-r ... ed-secrecy

[winston]

Do you actually think that they can increase interest rates so soon ? Unless the USD tanks, then they have no choice. Did you remember how high interest rates were during the AFC ?

===========================================

Bernanke sees tighter policies as economy heals By Mark Felsenthal

WASHINGTON (Reuters) - The U.S. Federal Reserve must continue to prop up the economy for an extended period but can't do so indefinitely for fear of triggering an inflationary surge, Federal Reserve Chairman Ben Bernanke warned on Thursday.

http://www.reuters.com/article/topNews/ ... nnel=11618

[millionairemind]

Do you actually think that they can increase interest rates so soon ? Unless the USD tanks, then they have no choice. Did you remember how high interest rates were during the AFC ?

In the aftermath of the AFC, the LTCM debacle and the Russian debt default, the maestro (aka greenspan) cut interest rates repeatedly that created the internet bubble.

It is just one bubble after the next.... I read somewhere that some banker was calling the US system a Financial nuisance

[AirFlownAussiePork]

Bernanke as a scholar of the Great Depression is extremely wary of the credit crunch that he believed as with others before him; was the main cause of the Great Depression. Given his prior experiences, I doubt he will be a proponent for high interest rates.

Do you actually think that they can increase interest rates so soon ? Unless the USD tanks, then they have no choice. Did you remember how high interest rates were during the AFC ?

===========================================

Bernanke sees tighter policies as economy heals By Mark Felsenthal

WASHINGTON (Reuters) - The U.S. Federal Reserve must continue to prop up the economy for an extended period but can't do so indefinitely for fear of triggering an inflationary surge, Federal Reserve Chairman Ben Bernanke warned on Thursday.

http://www.reuters.com/article/topNews/ ... nnel=11618

[millionairemind]

November 5, 2009, 6.44 am (Singapore time)

Pimco's El-Erian says Fed fuels dollar 'carry trade'

NEW YORK - The Federal Reserve will continue to foster a US dollar-funded carry trade with its near-zero interest rate policy, Mohamed El-Erian, chief executive of Pacific Investment Management, said on Wednesday.

The so-called carry trade refers to borrowing at low short-term rates - in this case, in the US dollar - to buy high-yielding, long-dated securities in other markets. The intention is to profit from the rate differential, although rising short-term rates make this strategy riskier and less profitable.

Investors worldwide will keep borrowing dollars to buy assets including equities and commodities, fueling the risk of huge bubbles, given the Fed's stance, El-Erian told Reuters.

As expected, the US central bank reemphasized its pledge to keep interest rates 'exceptionally low' for an 'extended period' as long as inflation expectations are stable and unemployment remains elevated.

Policymakers kept their benchmark overnight lending rate in a range between zero and 0.25 per cent and conditioned its commitment on rates based on 'low rates of resource utilisation, subdued inflation trends, and stable inflation expectations.'

'The simple message from today's announcement is that the Fed does not wish to rock the boat. I suspect many in the markets will interpret the Fed statement as a green light to pile onto the momentum trade in risk markets, further increasing the dollar-funded carry trade,' Mr El-Erian said.

Over the past year, the dollar has increasingly been at the epicenter of a so-called 'carry trade'. With interest rates effectively at zero in the US, global investors seeking higher returns are increasingly borrowing risk-free dollars to invest in higher-yielding currencies and assets, such as stocks, commodities, and emerging markets. These trades have kept putting pressure on the dollar as investors short the currency to invest elsewhere.

At Wednesday's close, the dollar was down against a basket of major trading-partner currencies, with the US Dollar Index down 0.88 per cent at 75.717 from a previous session close of 76.386. Overall, the dollar index is down about 6.7 per cent year-to-date.

The Fed on the whole retained an upbeat assessment on economic growth. Policymakers said the US economic activity had 'continued to pick up' since its last meeting in September, but expressed concern that the recovery was likely to be muted.

'Household spending appears to be expanding but remains constrained by ongoing job losses, sluggish income growth, lower housing wealth, and tight credit,' the Fed's statement said. While still emphasizing risks, the Fed was a bit more optimistic than it was in September, when it had simply said spending was 'stabilising.'

Mr El-Erian said the Fed 'welcomes the pick-up in economic activity and provides reassurance on inflation, but it does not address some of the more controversial issues that are increasingly on the mind of many.' That includes the value of the dollar and 'the risk of another asset bubble,' Mr El-Erian added.

'The Fed statement will, in the short term, add fuel for the dollar-funded carry trade.' -- REUTERS

[millionairemind]

Banks bill seeks to strip Fed of powers
By Tom Braithwaite and Sarah O’Connor in Washington

Published: November 10 2009 17:10 | Last updated: November 10 2009 17:33

An influential US Senate committee has proposed a sweeping overhaul of the country’s regulatory architecture that would strip powers from the Federal Reserve and create a single banking regulator.

Chris Dodd, chairman of the Senate banking committee, on Tuesday presented a more radical vision of regulatory reform than that proposed by the Obama administration . The move ushered into the open a behind-the-scenes struggle between banks, policymakers and regulators.
http://www.ft.com/cms/s/0/fd843acc-ce13 ... abdc0.html

[kennynah]

Fed's Bullard: Interest Rates Might Remain Low For The Next Few Years
11/18/2009 10:19 AM ET
by RTT Staff Writer

(RTTNews) - St. Louis Federal Reserve President James Bullard indicated Wednesday that the Federal Reserve may not raise interest rates from near zero levels until 2012.

Speaking at the 2009 Commerce Bank Economic Conference in St. Louis, Bullard said that the Fed's liquidity programs should not pose an inflationary threat because they are winding down as the 2008 financial crisis fades, and that interest rates could remain low for the next few years.

"Policy rates are near zero in the U.S. and the rest of G-7 countries, something not seen in postwar economic history," he said. "The FOMC did not begin policy rate increases until 2 1/2 - 3 years after the end of each of the past two recessions."

Bullard will be a voting member of FOMC next year.

The St. Louis chief did add, however, that that volatile global commodity prices have elevated inflation uncertainty

He also said that the Fed's asset purchase program, under which the Fed's balance sheet is expected to grow to around $2.5 trillion, will create the risk of inflation in the medium term, providing a difficult challenge for policy makers.

"The main challenge for monetary policy going forward will be how to adjust the asset purchase program without generating inflation and still providing support to the economy while interest rates are near zero," he said.

Bullard also stressed the importance of the Fed's independence, saying that it was vital to creating effective monetary and regulatory policies to ensure and sustain a full economic recovery.

"The Fed needs to know the condition of the financial system through hands-on regulatory involvement," he said.

Speaking about regulatory reform, the St. Louis chief said that the "too-big-to-fail" situation was "intolerable" and stressed that a "resolution regime for large financial firms is imperative."

"Quite a few of the large firms in trouble were not banks and did not come under banking regulation," he added. "The main issue here is not about banking reform, but about the shadow banking system and addressing regulation for that financial segment."

Bullard also discussed the nascent economic recovery, crediting growth in global markets and stabilization in U.S. personal consumption and the housing sector with helping the beginning recovery.

He did warn, however, that weakness remained in the housing markets. His speech came just before data on housing starts for the month of October revealed that housing activity fell back in October, dropping 10.6 percent.

Bullard added that the labor market was another weak spot in the economy, with unemployment (10.2 percent) at its highest level since 1983, though he said that the pace of job losses was slowing.

[winston]

[b]Fed's Bullard: Interest Rates Might Remain Low For The Next Few Years

That is the intention. But when the USD collapse, they will have no choice but to increase interest rates. So the question becomes, "what will caused the USD to crash ?".

[kennynah]

W

you are having insomnia...worrying about the market first ever seeing your posts at 3-4am

but seriously... the charts tell them all... i do suggest that you have a peek at /DX (dollar index) and consider that in the short term, US seriously needs a weak dollar now...