A 1989 Wall Street Journal op-ed piece written by former Federal Reserve governor Robert Heller may be the blueprint for the government’s preferred method of equity market stabilization. Heller suggested that the central bank be empowered to stabilize plunging stock markets by purchasing stock index futures contracts. Such a move would force the underlying index to rise. Of note, a 1992 New York Post article quoted a former National Security Council economist as having confirmed that the government supported the stock market in 1987, 1989 and 1992. The article indicated that these interventions were conducted in the manner proposed by Heller. (1)
We believe the stability of domestic stock markets is considered by the U.S. government to be a matter of national security. Interventions are likely justified on the grounds that the health of the U.S. financial markets is integral to American pre-eminence and world stability. This conclusion flows from an extraordinary financial war game exercise conducted by the Council on Foreign Relations in 2000 and attended by key policy-makers. (1)
Discontinuance of M3
On March 23, 2006, the Board of Governors of the Federal Reserve System will cease publication of the M3 monetary aggregate. The Board will also cease publishing the following components: large-denomination time deposits, repurchase agreements (RPs), and Eurodollars. The Board will continue to publish institutional money market mutual funds as a memorandum item in this release.
Measures of large-denomination time deposits will continue to be published by the Board in the Flow of Funds Accounts (Z.1 release) on a quarterly basis and in the H.8 release on a weekly basis (for commercial banks). - federalreserve.gov
Originally posted by Gools
The new FED chairman, Ben Bernake, is famous for his views on "helicopter money".
Helicopter Ben advocates turning on the printing press full speed whenever there is trouble in the markets.
Something really bad is about to happen that needs major intervention hidden from the public or the situation has already been happening for a while now and is comming to a climax.
I wonder how other central banks will react to this, or are they all in on it? The Plunge Protection Team seems to have acted in concert with the Japanese according to that PDF report I referenced.
Originally posted by Gools
Call you bank and ask them what is going on!!! It's your money not theirs and you have a right to know.
IMO if you do not understand how your money is being invested and used you should not be invested with these people.
Originally posted by Gools
... is also known as the "President’s Working Group on Financial Markets".
Their market interventions have been written and talked about by sources such as the Wall Street Journal, Euromoney magazine, USA Today, ABC’s Good Morning America, The New York Post, The Observer, The Guardian, The Evening Standard and many others. (1)
Membership is reputed to include government agencies (i.e. the pivate FED ), stock exchanges and large Wall Street firms. (1)
It's a private club and in addition to ensuring the stability of the domestic stock market...
THE FED'S MONEY SUPPLY ARMAMENT IS UNDERWAY
M-3 has been launched into outer space, up another $56.3 billion last week, up $92.4 billion over the past two. This is some real horsepower.
Over six weeks, ... is up $177.8 billion. These annualized growth rates are 28.7 percent, 23.6 percent, and 15.3 percent respectively. Those are the seasonally adjusted figures. The raw, non-seasonally adjusted, figure is up $293.3 billion over the past 12 weeks, on a pace to add 1.2 trillion in money to the economy. Wow. There must be a need for this. Maybe the master Planners see a coming need to monetize our debt? To support markets? They tell us the economy is good, so clearly they cannot be stimulating our way out of a recession. There’s a lot of money flooding the economy and it has to go somewhere. Right now it is lifting markets.
... if the Dollar were to tank — and the Iran oil Bourse should push the Dollar in that direction — it puts pressure on Treasury Bonds and other U.S. financial assets to fall as well, since they are denominated in a declining-value currency. In this event, the Fed would have to step up its buying of U.S. financial assets to lend support to these asset prices — to stabilize U.S. markets. In other words, the Fed would have to monetize the U.S. Treasury’s debt, and also monetize equity markets (be the buyer that keeps prices from falling). This would take so much fresh money that the Fed would need to create it in secret. Thus, they would have to announce that they are no longer going to transparently reveal the level of the money supply, but will hide it. The alternative is to punish Iran for — and make no mistake about this — effectively declaring economic war against the United States.
If this speculation is true, then the Master Planners are likely preparing accordingly.
(1) the Secretary of the Treasury, or his designee;
(2) the Chairman of the Board of Governors of the Federal Reserve System, or his designee;
(3) the Chairman of the Securities and Exchange Commission, or his designee; and
(4) the Chairman of the Commodity Futures Trading Commission, or her designee.
Sec. 2. Purposes and Functions. (a) Recognizing the goals of enhancing the integrity, efficiency, orderliness, and competitiveness of our Nation's financial markets and maintaining investor confidence
(c) The Working Group shall report to the President initially within 60 days (and periodically thereafter) on its progress and, if appropriate, its views on any recommended legislative changes.
(c) To the extent permitted by law and subject to the availability of funds therefore, the Department of the Treasury shall provide the Working Group with such administrative and support services as may be necessary for the performance of its functions.
Originally posted by turbokid
perhaps they are not publishing the m3 in march anymore because they are raising the debt ceiling in march and dont want anyone to get wise to their out of control spending...
this practice is intriguing to me... instead of saying, "hmmm we are at our debt limit, perhaps we should stop spending." they just change the limit..
i wonder if i can do this with my credit cards..
now if you'll excuse me i'm going to go buy some gold and silver..
[edit on 7-1-2006 by DontTreadOnMe]
"By unilaterally printing money whenever it wants to, without either explanation or public debate, the government is in fact defrauding its constituents by diluting the purchasing power of their money. And this ability to increase the amount of monetary instruments in circulation is the fatal flaw of all fiat currencies, for there has never been a successful fiat currency.
"Interestingly, the life of a fiat currency can be chronicled in rough stages based on patterns of behavior that have been repeated ad infinitum over the centuries. Reduced to its simplest terms, the sequence goes something like this:
1. A government prints a little extra money (or issues a little extra debt) to finance this emergency measure or that budgetary shortfall, and the effects on the value of the currency go largely unnoticed.
4. The worse inflation becomes, the more unstable the government becomes as it resorts to ever more extreme measures to mislead the public regarding the effects of the money it has created and to deflect the public’s attention to other matters, thereby allowing the practice to continue. Astute individuals start protecting themselves by trading the fiat currency for real assets to preserve their wealth.
There have been variations of, but no exceptions to, this pattern."
Iran had originally scheduled to open its bourse (or stock exchange where oil could be sold and bought in Euros) in 2005. That obviously hasn't happened, but now the date is set for Spring 2006. Exactly when the Fed says it will stop printing statistics of how many dollars are in existance overseas.