From the latest edition of the Ron Paul Liberty Report.
News outlets are reporting that President Obama is set to meet with Federal Reserve Chairman Janet Yellen tomorrow. Coming two weeks before the Fed’s next FOMC meeting, a meeting that some have speculated might see another interest rate increase, what might be on the docket? Will Obama urge Yellen to hold off raising interest rates until after the election so that the next economic collapse won’t happen until after the November election? Will he urge another round of quantitative easing? Inquiring minds want to know.
From last night’s propaganda event featuring Janet Yellen and her predecessors Ben Bernanke, Alan Greenspan, and Paul Volcker.
On April 5, 1933, President Franklin D. Roosevelt issued Executive Order 6102, requiring all gold coin, gold bullion, and gold certificates to be surrendered to the Federal Reserve Banks or to banks that were members of the Federal Reserve System. With very limited exceptions, it was now illegal for Americans to own gold. This state of affairs lasted until 1975. It was the movement to legalize gold ownership in the United States that influenced a young doctor in Texas to make his first forays into politics. That young doctor is known and beloved by millions today: Dr. Ron Paul. Even out of something as evil as outright gold confiscation, something good came about.
Full text of the Executive Order is below.
The financial media is abuzz with speculation about what the Fed will do next, and whether it will decide to hike the federal funds rate target at its April Federal Open Market Committee (FOMC) meeting. There is a lot of speculation too as to what the Fed might do in the event of another recession or financial crisis. Some recent articles at the Brookings Institution delve into that possibility. And what is the first potential policy action discussed? Negative interest rates.
As we occasionally like to do, we have translated Fed Chairman Yellen’s most recent FOMC press conference from FedSpeak into English. If you don’t want to read through the raw transcript, or don’t want to be put to sleep by watching the video replay, the translation below will give you everything you need to know.
YELLEN: Good afternoon. Today we decided to keep our accommodative monetary policy intact. We really have no idea what we’re doing, and markets have decided that they don’t want rates to rise too far above zero. And when they get angry, we get scared. So we’re just going to hold off and do nothing. As usual, we have come up with a bunch of projections for economic growth and the unemployment rate that have no correlation to reality and will be proven to be inaccurate, but not before we majorly screw up the economy, so the joke’s on you guys. We’ll continue to parrot the party line that job growth is great and ignore the fact that most of that growth comes among old people, part-time workers, and service industry jobs like waiting tables. But hey, a nation of waiters is still a great nation, am I right?
Inflation is still lower than we want it to be even though we’ve pumped a ton of money into the system. Of course, that’s because we’ve jiggered the figures to be low on purpose because that gives us an excuse to shovel more money to Wall Street. So just keep looking at these pretty dot plots and ignore how rich my buddy Jamie Dimon is getting. Don’t these dots here look like a fat dreidel? And hey, this dot plot looks like a bishops’s mitre. How fun!
Of course we do have a sinking feeling that things aren’t quite as rosy outside the US. But that’s because we’re not in charge over there. Rest assured, when China collapses and Japan and Europe fall into depression we’ll put on our most important-looking faces and act like we’re doing something other than peeing our pants. We’ll do substantive things and speak substantive words and you’ll know that they’re substantive because we’re doing and saying them. Substantive, that’s us. Oh yeah, and we won’t be raising rates again this year because Wall Street told us it’s not nice, so just forget about that “normalization” thing we’ve mentioned in the past.
But you Potemkin journalists didn’t come hear to hear to me talk, you came to hear yourselves talk, so let’s get on to the questions.
The Carl Menger Center is a 501(c)(3) non-profit organization. Please consider supporting us with a tax-deductible donation.