Replies to post #179 on Federal Reserve Watch (FEDW)

[NYBob]

The 666bolshevikz evilz will destroy US and all white mans gold -
it what happened to great Russia before the ussr -
killed more than 100 million Christians -
G20 was all about to destroy white mans gold power -

history often repeat itself -

IMF to Sell Gold to Keep Finance Sustainable
2009-04-24 23:07:12 Xinhua Web Editor: Bao Congying
The membership of the International Monetary Fund (IMF) is discussing strictly limited gold sales of 12.97 million ounces (403. 3 metric tons), one-eighth of the total holdings

http://english.cri.cn/6826/2009/04/24/2041s478509.htm

Audio
• Geithner: Economic Policies of China and the US Vital for the Revival of the World Economy
• China Drafts Energy Stimulus Plan
• China's Stimulus Package Boosts Industrial Restructuring
• Economic Zone on the Western Coast of the Taiwan Straits

The membership of the International Monetary Fund (IMF) is discussing strictly limited gold sales of 12.97 million ounces (403. 3 metric tons), one-eighth of the total holdings, as part of a package of expenditure and income measures to put the organization's Finances on a sustainable basis but no decisions have been taken by the Excutive Board.

The IMF currently holds 103.4 million ounces (3,217 metric tons) of gold, making it the third largest official holder of the gold. The gold is valued on its balance sheet at 5.9 billion SDR (special drawing rights) (about 9.2 billion U.S. dollars) on the basis of historical cost, the market value of which was 95.2 billion U.S. dollars as of Feb. 20, 2008.

The IMF is considering gold sales because its finances have become unsustainable following a large decline in credit outstanding in recent years.

In absence of measures an income shortfall of 165 million U.S. dollars in fiscal year 2007 is expected to widen to about 400 million U.S. dollars by fiscal year 2010.

Under the IMF's Articles of Agreement, a decision to sell gold requires an 85 percent majority of the total voting power.

[NYBob]

The banksterz try to manipulate the coming hyperinflation -
the elitez bolshevikz creating by printing fiatz paperz -

Ex...
when associated with depressions, hyperinflation often occurs
when there is a large increase in the fiatz moniez supply
not supported by gross domestic product (GDP) growth,
resulting in an imbalance in the supply and demand
for the fiatz lavatoriez printed paperz circuz moniez.
Left unchecked this causes prices to increase,
as the fiatz currenciez loses its value.

When associated with wars, hyperinflation often occurs
when there is a loss of confidence in a fiatz currency's
ability to maintain its value in the aftermath.
Because of this, sellers demand a risk premium to accept
the fiat currency, and they do this by raising their prices.

One of the most famous examples of hyperinflation occurred
in Germany between January 1922 and November 1923.
By some estimates, the average price level increased by
a factor of 20 billion, doubling every 28 hours....

ex..the strategic hard asset safety :-)
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=38465546
--

Two US banks hold 26.2% of the short interest in COMEX silver and three US banks hold 31.9% of the short interest in COMEX gold!
http://www.cftc.gov/marketreports/bankparticipation/index.htm

06/02/09 CMX SILVER U.S. 2 25 0.0 27,503 26.2 104,986
NON U.S. 12 9,285 8.8 4,007 3.8
---- --------- ---- --------- ----
14 9,310 8.9 31,510 30.0

06/02/09 CMX GOLD U.S. 3 1,467 0.4 124,577 31.9 391,057
NON U.S. 21 28,443 7.3 32,521 8.3
---- --------- ---- --------- ----
24 29,910 7.6 157,098 40.2


Note: 2 Banks increased their Shorts in Gold from 94561 in May to 124577 in June.

This info has been reposted from chichi2 board:
http://investorshub.advfn.com/boards/board.aspx?board_id=1804
by 4Godnwv thanks for good info :-)

[NYBob]

Counterfeiters Indicted For Producing Ron Paul "Liberty Dollars"

June 5, 2009
Feds indict makers of libertarian currency
@ 4:09 pm by Michael O'Brien

A federal grand jury brought indictments Friday against the maker of an obscure currency supported by some libertarians.

The U.S. District Court for Western North Carolina indicted four North Carolinians with conspiracy and counterfeit charges stemming from their manufacturing of so-called "Liberty Dollars."

Liberty Dollars are a private currency based on a gold and silver standard, with a purported exchange rate with the U.S. dollar. Its manufacturers say that the U.S. dollar is unreliable due to the effects of national monetary policy.

The feds unsealed a four-count indictment against the currency's lead architect, Bernard von NotHaus, and three other individuals.

Among other charges, the government alleges the organization "did knowingly and unlawfully utter and pass, and attempt to utter and pass, a coin of silver in resemblance of genuine coins of the United States."

The government also seized the private currency as part of the indictment.

Among the seized coins are the $20 dollar mark produced by the group, which features Rep. Ron Paul (R-Texas), [ http://www.libertydollar.org/ld/ronpauldollar ] a libertarian icon and monetary policy critic, on its "heads" side.



http://briefingroom.thehill.com/2009/06/05/feds-indict-makers-of-libertarian-currency/

.
With public trust - everything is possible.
Without public trust - nothing is possible.
Abe Lincoln
.

.
Posted by: BOREALIS
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[NYBob]

Investigators warn bank stress tests not enough
1 hour, 30 minutes ago
By ANNE FLAHERTY
Associated Press Writer

(AP:WASHINGTON) A government test of whether 19 major banks could survive a further downturn in the economy may have relied on too rosy a scenario and should be repeated, independent investigators say.

In a report released Tuesday, the Congressional Oversight Panel for the government's $700 billion financial rescue effort found that the Federal Reserve used a "conservative and reasonable" approach to assessing the health of the nation's biggest banks.

But, the panel added, the Fed's worst-case scenario does not go far enough. For example, the "stress tests" conducted by the Fed were based on the 2009 unemployment rate average of 8.9 percent. Unemployment in May climbed to 9.4 percent.

"While no one should gainsay the potentially positive results of the tests, it would be equally unwise to think that those results reflect a diagnosis of all of the potential weaknesses or create a necessarily sufficient buffer against future reverses for the banking system," the panel wrote.

Elizabeth Warren, the Harvard University law professor who heads the panel, was expected to testify on Tuesday on the group's findings before the Joint Economic Committee.

Last month, the Fed found that 10 of the 19 banks needed additional capital. Bank of America, Citigroup and Wells Fargo are among the banks told to boost capital by a total of $75 billion to cover potential losses.

The Federal Reserve said Monday that plans submitted by those banks, if implemented, would be enough to help them survive a deeper recession.

The Congressional Oversight Panel says that additional capital held by the banks should not be interpreted as an end to the financial crisis.

The panel recommended that the Fed repeat stress testing so long as banks continue to hold large amounts of bad debt on their books. The panel also suggests that banks be required to run their own internal stress tests and share those results with federal regulators.

[NYBob]

The people we know as the Founding Fathers were against paper money and for a gold/silver standard. But many people of the 1780s favored paper money, and in 1787 it was hard to determine which side would win. Voters in many states (besides Rhode Island) were endorsing limited issues of paper money, and how the matter would go in a general election was not known.

The Founding Fathers chose to resolve the issue by writing a new constitution (the existing one being the Articles of Confederation) which would ban all fiat money permanently. The issue of paper money by the states was banned in the new Constitution by Article I, Section 10. And the issue of paper money by the Federal Government was banned by omission. That is, the basic structure of the Constitution, latter clarified by Amendment 10 of the Bill of Rights, restricted the Federal Government to 17 powers enumerated in Article I, Section 8. The power to issue paper money was omitted from this list. At the Constitutional Convention, an attempt to smuggle in the paper money power (disguised as bills of credit) was defeated 9 states to 2, and the paper money faction left the convention advising their supporters to reject the new constitution.

So when the Founding Fathers attempted to gain ratification for the Constitution in 1788, they faced a difficult battle. But remember Washington’s technique of arguing issues by means of reason. “Let us raise a standard to which the wise and honest can repair.” They did, and they began to win victory after victory. In some cases, the voters elected an anti-constitution slate to a special convention to consider the issue. The delegates assembled, initially in opposition. But during the debate the pro-Constitution side was more persuasive, and the convention wound up ratifying. In short order, 12 of the 13 states had ratified and the new Government , sans Rhode Island, went into operation. Rhode Island was no longer part of the United States.

Then a hard money faction formed in the southern part of the state (centered in Newport). It threatened to secede from Rhode Island, form its own state and apply for admission. Faced with this threat the paper money faction in the northern part of the state admitted defeat, and Rhode Island ratified the Constitution in convention by a vote of 34-32. The Founding Fathers had won a unanimous victory.
History often repeat itself -

http://thegoldbugnet.blogspot.com/

[NYBob]

Uncle Sam says don't worry. The Chinese laugh out loud, a nervous US$1.2 trillion laugh. Those poor Oriental suckers fell for the biggest con job / rip off ever orchestrated in the history of the world. They work hard to make and sell useful products to USA; USA returns favor by selling them paper mountains of I.O.U.s worthless before long. Hah, hah, hah. We shall have a good laugh at the palazzo, eh, Montresor?

US Rep. Kirk (R-Illinois): "There was an honesty moment when Secretary Geithner was in Beijing University giving a speech. He (Geithner) said, Your investments in a trillion dollars worth of U.S. debt are secure, and the audience laughed at him. It's very un-Chinese to do, to embarrass a speaker in public, but I think it reflected a growing concern in Beijing."

http://www.foxnews.com/story/0,2933,525639,00.html

China Losing Confidence in the U.S. Dollar?

Wednesday, June 10, 2009

This is a rush transcript from "On the Record," June 9, 2009. This copy may not be in its final form and may be updated.

GRETA VAN SUSTEREN, FOX NEWS HOST: Congressman Mark Kirk just returned from China, and he says the Chinese told him they are worried about the U.S. economy. But that's not exactly what our Treasury secretary, Tim Geithner, says after his recent trip to China. Secretary Geithner says the Chinese expressed to him justifiable confidence in our economy. So which is it? Are the Chinese flipped out about our exploding debt or not?

Illinois congressman Mark Kirk joins us live in Washington. Nice to see you, Congressman.

REP. MARK KIRK, R - ILL.: (INAUDIBLE)

VAN SUSTEREN: OK, you're told one thing about our economy, and apparently, the Treasury secretary is told another.

KIRK: There was an honesty moment when Secretary Geithner was in Beijing University giving a speech. He said, Your investments in a trillion dollars worth of U.S. debt are secure, and the audience laughed at him. It's very un-Chinese to do, to embarrass a speaker in public, but I think it reflected a growing concern in Beijing.

VAN SUSTEREN: And I guess we should point out the reason why they're concerned, the Chinese, why they care so much, is because they hold all -- a significant portion of our debt.

KIRK: Right. China has leant about $300 billion to the U.S. for Fannie Mae and Freddie Mac -- they're very worried about that -- another $700 billion in Treasury bills. And they're particularly worried about the Fed's new policy of buying Treasury debt because they're worried that one part of the federal government is buying another part of the federal government's debt. Sounds like printing money, and that means that if you hold dollar-denominated debt, all those investments will be worth less because you'll be repaid in printed dollars.

VAN SUSTEREN: What would be the incentive for Secretary Geithner to get it so wrong or to miss that sort of honesty point? I mean, what -- what's in it for him to come back here and say, The Chinese are fine on our debt. They want to -- you know, they don't -- they're not worried at all about our economy.

KIRK: What Secretary Geithner reflected was what the public statements of the Chinese government was, which is they are afraid that if they talk down the dollar too much, their own trillion-dollar investment will be cheapened. But privately, the key concern is, Should we buy any more U.S. debt? And over time, what's happening is China is beginning to cancel Congress's credit card, doesn't want to lend much more money to the United States, and especially is worried about the Fed's policy of printing money to buy new debt.

VAN SUSTEREN: So it isn't that the secretary is deceitful or sugarcoating, it's that he's naive and was hoodwinked and wasn't there when they were talking candidly to you? Is that the story?

KIRK: It's a common thing in Asia that you hear one thing in public and then you may hear some more direct concerns in private. And you have to listen to that because, unfortunately, China has become America's biggest creditor, and if the Congress's plans go forward, we will borrow even more to spend on additional bills, a transportation bill, a health care bill, and our regular practice of waiving our budget constraints towards the end of the year.

VAN SUSTEREN: If -- have you pulled the secretary aside and said, Look, you know, when you're out of the room, they're telling me they're really worried about our -- about our situation?

KIRK: I'm fairly sure that he heard the same thing in private and...

VAN SUSTEREN: So why is -- so why would he make -- why would he say something else, the "justifiable confidence"? I mean, why -- why would he tell us something different?

KIRK: Well, because both parties don't want to create a panic, but there is growing concern that the United States may not borrow $1.8 trillion, it may borrow even more, especially if it passes additional legislation on the Speaker's table, and that begins to look unsustainable. Also...

VAN SUSTEREN: Well, why would they lend at that point? I mean -- I mean, if our credit is so lousy...

KIRK: Right.

VAN SUSTEREN: ... if this is getting so grim, why in the world would the Chinese want to pick up any more of our debt? I wouldn't!

KIRK: I think...

VAN SUSTEREN: I mean -- I mean, if I were going to lend someone money, I'd want to say, you know, Show me your cards. What have you got?

MOORE: Well, they already are beginning to hedge. I think they expect quite a bit of inflation in the United States next year. So they made a major investment. They funded a second strategic petroleum reserve, and they plan to buy $80 billion worth of gold. That's two Fort Knoxes. Both of those investments only make sense if you expect significant dollar inflation.

VAN SUSTEREN: And indeed, they may -- they may expect that. So in terms of -- does it change policy on whether or not the U.S. believes that the -- you know, your version of what you were told or the secretary -- what the secretary is saying?

KIRK: Well, this is a growing concern over the creditworthiness and value of previous U.S. bonds which have been sold. And we've seen other sovereign borrowers, Germany and the United Kingdom, fail in debt auctions. They were unable to borrow money at the rates they wished. Also, Fitch and Standard and Poor's have now issued a warning to the British government, You've borrowed too much, and we're going to strip your AAA credit rating from you if you continue this path. That's the same path we are on. President Obama is right when he says we are out of money.

VAN SUSTEREN: Well, I think when you start spending more than you have, you're out of money to begin with. I mean, that doesn't -- you know, that's not a huge surprise to anybody.

KIRK: That's right.

VAN SUSTEREN: Congressman, thank you.

KIRK: Thank you.

Content and Programming Copyright 2009 FOX News Network, LLC. ALL RIGHTS RESERVED

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[NYBob]

Russia backs return to Gold Standard to solve financial crisis
Russia has become the first major country to call for a partial restoration of the Gold Standard to uphold discipline in the world financial system.

http://www.telegraph.co.uk/finance/financetopics/g20-summit/5072484/Russia-backs-return-to-Gold-Standard-to-solve-financial-crisis.html

By Ambrose Evans-Pritchard
Published: 10:05PM BST 29 Mar 2009

Arkady Dvorkevich, the Kremlin's chief economic adviser, said Russia would favour the inclusion of gold bullion in the basket-weighting of a new world currency based on Special Drawing Rights issued by the International Monetary Fund.

Chinese and Russian leaders both plan to open debate on an SDR-based reserve currency as an alternative to the US dollar at the G20 summit in London this week, although the world may not yet be ready for such a radical proposal.

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Mr Dvorkevich said it was "logical" that the new currency should include the rouble and the yuan, adding that "we could also think about more effective use of gold in this system".

The Gold Standard was the anchor of world finance in the 19th Century but began breaking down during the First World War as governments engaged in unprecedented spending. It collapsed in the 1930s when the British Empire, the US, and France all abandoned their parities.

It was revived as part of fixed dollar system until US inflation caused by the Vietnam War and "Great Society" social spending forced President Richard Nixon to close the gold window in 1971.

The world's fiat paper currencies have lacked any external anchor ever since. It is widely argued that the financial excesses and extreme debt leverage of the last quarter century would have been impossible - or less likely - under the discipline of gold.

Russia is a major gold producer with large untapped reserves of ore so it has a clear interest in promoting the idea. The Kremlin has already instructed the central bank of gradually raise the gold share of foreign reserves to 10pc.

China's government has floated a variant of this idea, suggesting a currency based on 30 commodities along the lines of the "Bancor" proposed by John Maynard Keynes in 1944.

[NYBob]

OBAMA'S WORST NIGHTMARE DR PAUL TEACHES CONGRESS HOW TO PROPERLY RUN GOVT JUNE 3RD 2009

http://investorshub.advfn.com/boards/board.aspx?board_id=15473

[NYBob]

China inoculates itself against dollar collapse
By W Joseph Stroupe

There is mounting evidence that China’s central bank is
undertaking the process of divesting itself of longer-dated
US Treasuries in favor of shorter-dated ones.

There is also mounting evidence that China’s increasingly
energetic new campaign of capitalizing on the global crisis
by making resource buys across the globe may be
(1) helping its central bank to decrease exposure to
the dollar, while
(2) simultaneously positioning China to make much greater
profit on its investment of its reserves into hard assets
whose prices are now greatly beaten down, while
(3) also affording it greatly increased control of strategic
resources and the geopolitical clout that goes with it.
This is turning out to be a win-win-win situation for China
as it capitalizes upon the important opportunities afforded
it by the present global crisis.

USD index EOD - Monthly - by kiwisteve -



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