The Runaway Money Printing Policy of the Fed(eral Reserve Bank)

Fresh on the Heels of the Government Shutdown and the painful Necessity to raise the Debt Ceiling a surprising but not unexpected Announcement from the Fed, in the waning Days of the Chairmanship of Mr. Bernanke:

http://www.nbcnews.com/business/fed-says-it-will-keep-stimulating-economy-leaves-rates-unchanged-8C11498307

Basically, the Fed, under Mr. Bernanke's Policy of so called „Quantitative Easing” just announced that will be pouring another $ 85 Billion into the Stock Market, buying Bonds, each Month, for the foreseeable Future, until at least March ofr 2014.  This is Money which is not reflected in the Federal Deficit and Money which the Government neither has, nor has authorized through Congress.  The Report further states and we are quoting here,

Wall Street had expected the Fed to refrain from tapering its so-called Money Printing Operation. (Emphasis added).

According, to The New York Times,on the other Hand,

The statement contained no surprises, and the stock market barely budged. The Fed was widely expected to continue adding $85 billion a month to its portfolio of Treasury securities and mortgage-backed securities, particularly in the aftermath of the disruptive partial shutdown of the federal government in the first half of October.

The Fed maintained a relatively optimistic economic outlook in the statement, released after a scheduled two-day meeting of its policy-making committee. It said the economy continued to expand “at a moderate pace” and that the availability of jobs continued to improve.

Now, as Mr. Bernanke prepares to clean up his Desk and leave his Office at the Federal Reserve, the several Trillion Dollars that he has spent, under this ill advised Policy will, of course, remain on the Books backed by Bonds.  What Kind of Bonds?  Goodness only knows.  It will be Mrs. Yellen's Job, presumably, to find out.

This stubborn Policy, pursued by Mr. Bernanke, to „Lift the Economy by the Bootstraps” under some strange Trickle Down Theory strongly reminsicent of „Reaganomics” has been conducted by Mr. Bernanke, if not singlehandedly, because he has had the Concurrence (although not unanimous) of the Federal Reserve Board Members, certainly without the Approval, Appropriation or even Advice of Congress nor that of the President of the United States.

It is true, that the Federal Reserve Board is supposed to function independently.  One wonders aloud, however, if under „independently” the Framers of the Law setting up the Federal Reserve Bank had in mind it spending $ 85 Billion per Month without any Accountability whatsoever.  No such Thing has ever been done by anyone else, anywhere, ever, with the one notable Exception of Vice President Cheney, who spent Billions on the War in Iraq, also without Congressional Approval.

It must be said, in Defense of Mr. Cheney, that the Sums of Money he spent pale in Comparison to the Amounts being spent by Mr. Bernanke.

This is also coming at a Time where incalculable Effort has been spent on showing that there has not been and there is going to be Little if any Inflation in the Consumer Price Index.

It would take too long to fully examine what that Statement is supposed to mean.  However, in Shorthand, it can safely be said that „No Inflation” means „No Inflation” except that certain Things are not to be included in the Equation, to mention a Few, Energy (Fuel and Utilities), Housing, Commodities (Food) plus a Couple of other Things here and there...

Even that Theory, as flawed as it is, has come under Scrutiny by the Mainstream, although many Economists have questioned ist Wisdom for a long Time.

See...

http://www.nytimes.com/2013/10/27/business/economy/in-fed-and-out-many-now-think-inflation-helps.html?nl=todaysheadlines&emc=edit_th_20131027&_r=0


Janet Yellen, the presumptive incoming Chair(wo)man of the Federal Reserves disagrees with Mr. Bernanke and believes that a draconian Control on Inflation (while notably excluding the Categories noted above and more) is not necessarily a beneficial Policy.

But the Consequences will be for her to sort out, once Mr. Bernanke leaves.

We are not sure where Mr. Bernanke is headed; Rumours have persisted and it appears that it is his wish to return to teaching at Princeton University; we simply don't know.  Earlier, we mentioned, we believe more than once, that President Woodrow Wilson (who was also President of his beloved Princeton University), may have rolled in his Grave (more than once) at the Thought of some of the Things that Mr. Bernanke did; to this, we need to add that he surely would have also scratched his head, if he would have been able to.

High Class and, let's not forget, President Clinton

General David H. Petræus has just announced his Resignation as Chief of the CIA, not particularly because he was involved in an ,,Extramarital Affair'' with another Woman, also married, Paula Broadwell, but because an FBI Investigation into the Incident suggested that



Security Breaches might have been involved.  Details into what exactly happened are still unfolding but, apparently, another Woman (not Mrs. Petræus), may have played a Role in blowing the Lid.

Mrs. Broadwell, who lives in Charlotte, North Carolina, seen above in a not too spartan Government (possibly military) Executive Jet, together with Mr. Petræus, gives expanded Meaning to the all too oft heard Phrase, ,,Your Tax Dollars at Work,'' Rosewood Paneling and all.  So far as it is known until now, the Decision to resign was Mr. Petræus's own and he received no Pressure from the President to do so.  If this is true, Mr. Petræus is to be commended for doing so in a Responsible Manner, even though, his Decision may not help very much the Explaining which he will have to do to Mrs. Petræus (who also just happens to come from a military Family with a distinguished Lineage which stretches all the Way back to the Civil War).

What is lamentable, we believe, is not only the Appearance (if not the Actual) Breach(es) of Security which may have ocurred, but also the Intertwining of such Relationships between current and former Government Officials.  Mrs. Broadwell worked for the Military for 15 Years and is a West Point Graduate.  Mrs. Petræus works for the Government, too.  So far, this Column has not been able to find out who the ,,Third Woman'' works for or what her Identity is.

What is possibly even more lamentable, though, is the Lavish and Praise that former President Clinton currently enjoys (still), despite having been involved in a Situation which was not all that different than the ,,Pickle'' General Petræus suddenly finds himself in.

So far as we know, General Petræus did not call and ask President Clinton how he might have been able to handle the Situation.  Is it possible that President Clinton's salacious Relationship with Monica Lewinsky, whatever it was, was such that President Clinton was just ,,Too big to fail'' and, thusly, General Petræus decided to forego such Advice?

 

Expert ,,Recommendations'' for President of the United States

In less than a Month, the Election for President of the United States will be over, setting, most likely, a Record on how much Money has been sent for electing a Public Official anywhere, ever...

Of more than inconsequential Interest appear to be some of the People whose Presidential ,,Preference'' is being reported by various Media, People whom we should take into Account, as ,,Authorities,'' or ,,Experts'' of some Sort...otherwise, why even mention what their Opinion is on the Subject?

For Mitt Romney:  Lindsay Lohan, fresh from her Nighttime Hotel Escapade in New York!

 

Lindsay Lohan

http://todayentertainment.today.com/_news/2012/10/12/14392258-lindsay-lohan-not-yet-registered-to-vote-endorses-mitt-romney?lite

For Barack Obama:  Bruce Springsteen, a major Force in 20th Century American Politics!

 

Bruce Springsteen

http://nbcpolitics.nbcnews.com/_news/2012/10/13/14418216-bruce-springsteen-to-campaign-for-obama-in-ohio?lite

Just how is the Opinion of these People relevant to the crucial Issues which confront this Country today?

One Publication described certain Endorsements as having the Potential to be toxic.  What may be equally, if not more toxic is the Attention and Importance we and the Press pay to the Opinions of these People, just as, how can one forget, Mike Huckabee running for President being endorsed by Chuck Norris?  Are these People who should shape our Political Thinking and be held up by the Press as ,,Authorities'' of any Sort whatsoever?

Important Footnote:  we are told, Lindsay Lohan will soon register to vote in order to add ,,Gravitas'' to her Endorsement.

An Argument against the Secretary of State's One Dimensional Approach towards the Situation in Syria

News Organizations, including foreign ones, are reporting with more and more Frequency on the complicated Situation in Syria.

Below is a rather typical Example from NBC News and Reuters, which appeared on 23 August:

The Headline reads:

More foreign Fighters join rebels in Syria as regional Crisis deepens

The full Article including Photographs and Video can be seen at:

http://worldnews.nbcnews.com/_news/2012/08/23/13431460-report-more-foreign-fighters-join-rebels-in-syria-as-regional-crisis-deepens?lite

What is difficult to understand, in View of this is the Secretary of State's One Dimensional Position regarding the Crisis which is essentially to expel President Assad.

To put it another Way, when resolving a Problem, it is necessary to consider what other Problem will be created as a Result of the Solution.

Recently, former Presidential National Security Adviser Dr. Zbigniew Brzeziński stated the Opinion that it is a prudent and cautious Policy Approach to have in Place what and who will follow, before toppling someone.  Recently, a Policy similar to the one in Syria, pursued in Egypt, where President Hosni Mubarak was deposed has resulted in totally unpredictable Results which are still in the Process of unfolding.

The Question, must be emphasized, is not who Mubarak or Assad are or might be but what would follow their Places and to acknowledge the simple Fact that not knowing what will follow can be not only an unpleasant Solution but may lead to totally unpredictable Developments.

It occurs to this Writer that Dr. Brzeziński 's Opinion is one which should be considered and not dismissed out of Hand and the President is giving Weight to the Opinion of others, such as Vice President Biden, Dr. Brzeziński (who unfortunately is not serving in the Administration) as well as others who may be able to formulate something other than the One Dimensional Approach being championed by the Secretary of State.

 

Duel - Obama v. Clinton Teil 2 - Part Two - Deuxième Act

One little Item went nearly unnoticed over the News Wires a few Days ago; Mrs. Clinton said, she would not (Emphasis added) commit to serving as Secretary of State in a Second Obama Administration. For that, obviously, the Implication is that Mr. Obama would be re-elected for a Second Term but, the Implication also is that Mr. Obama would be re-nominated by the Democratic Party for a Second Term; an almost universally shared Assumption. However, one should not assume that almost universally shared means that Mrs. Clinton shares in that Universe. Not too long ago, Mrs. Clinton had also stated in various Interviews that she loves her Job as Secretary of State, that it is such a great Job and that it gives the Opportunity to deal with so many Challenges on the World Stage.

Last Weekend, The New York Times broke with the Story regarding the Rift between 'The White House' and 'The State Department' (on the Issue of the Transition in Egypt, with Mubarak staying Short Term or Longer Term) which, translated into English means, the Rift between President Obama and Mrs. Clinton. There have also been Suggestions that the Leak(s) regarding the Rift came from The White House, which, if true, would absolve Mrs. Clinton of any Attempts to undermine the Authority of the President. Only The New York Times knows that for sure. However, before going too far inside that Suggestion, it might be useful to make a few Observations.

When the Demonstrations in Egypt broke out, the First Hawkish Statements came from Mrs. Clinton herself. In her inimitable Albrightesque-Cojonesque Style, Mrs. Clinton declared, with a menacing Voice, that the Leaders of Egypt (i. e., Mubarak) have no Choice but to listen to the Voices being raised in Tahrir Square. The White House bought into the Argument and, as the Demonstrations proceeded and gained Intensity, Mr. Obama came out on Television and through Statements issued by The White House and his Press Secretary, for a Rapid Transition in Egypt, accusing Mr. Mubarak of not moving fast enough, which of course he was not.

When, for all Intents and Purposes, Mubarak's Fate had been sealed, then the State Department became engaged into an Effort of lobbying for a Longer Transition, with Mubarak continuing to play a Role. That, in Effect, as we say, pulled the Rug from under the White House Statements, or, as I think somebody said way back during the Nixon Administration, left the White House 'twist slowly in the Wind,' without full, active and unqualified Support from The State Department.

Thus, one may ask the Question: 'Why?' One possible Answer is that Mrs. Clinton may be eyeing 2012. Many think that Mrs. Clinton would not attempt such a Thing until 2016. However, Politics today seem to dictate, 'Sooner is better than later,' in every Circumstance except when it comes to Budget Cuts and raising Taxes. Additionally, many of us, including Mrs. Clinton, could not help but notice the meteoric Rise of Sarah Palin who has literally come out of nowhere and who, many think, is going to make a Run for the White House, no matter what. Virgil said, 'Audentes Fortuna juvat.' With a little Bit of Luck, there may even be some Palin v. Bachmann Republican Primaries or even Palin v. Nikki Haley Primaries, in the South. Most astute Observers think that Palin is not very likely to be nominated by the Republican Party and, if she were, she would lose badly against President Obama or, any other possible Democratic Nominees and there aren't that many other 'possible Democratic Nominees' except, of course, for Mrs. Clinton. However, the very Fact of a Palin Candidacy in the Primaries, would raise the Awareness for a Woman Presidential Candidate.

For Mrs. Clinton to make another Run for the Democratic Nomination, the Stars would have to line up not just right, they would have to be perfectly lined up. That would mean, for the Budget, Deficit and Economy Issues to continue to run South; those, Mrs. Clinton knows she has no control over; they are on Automatic Pilot but the Automatic Pilot is steering a Course favourable to Mrs. Clinton; so, a few Foreign Policy Misalignments would not hurt.

Mrs. Clinton received a Total of 18 Million Votes in the last Series of Presidential Primaries; that is a formidable Achievement, particularly because she ran against a formidable Opponent and this Time, if it were that even the Possibility arose, that the First Woman President of the United States could be elected, the prevailing Wisdom would very likely be: No! Not Nikki Haley, not Michelle Bachmann and Heaven forbid Sarah Palin; Clinton!

And President Clinton would no longer have to go to the Pulpit in a Black Church and have to ponder outloud, how to solve the Dilemma of an 'Abundance of Riches' when it comes to making up his Mind regarding who would be the best Presidential Candidate this Time; there would now be only one logical Choice.

Nicollò Macchiavelli's Book, 'Il Principe' may have finally come to deserve a Sequel...'La Principessa.'