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United States News Title: The Obama Depression Professor Tim Congdon of International Monetary Research says, “It’s frightening”! In an interview with the UK Telegraph, Congdon reacted to the latest estimates that the M3 money supply of the Federal Reserve has dropped from $14.2 Trillion to $13.9 Trillion dollars in just three months. “The plunge in M3 has no precedent since the Great Depression.” Despite the happy-slappy statistics emanating regularly from the Obama administration, the Federal Reserve stopped publicizing their M3 numbers years ago. But by tracking various other components, including the assets and debts of major banks, a crude estimate can be derived. The bottom-line is simple, Obama’s stimulus package was a failure in correcting the financial crisis and only plunged us deeper into debt, now measuring some $13 Trillion in just ‘on budget’ National Debt. What will Obama do now? Spend more money, of course! Last week, President Obama flaunted the passage of the Senate’s version of the financial reform bill and said that the era of bailouts is over. Yet, within a few days, new legislation has emerged to bailout private union pension funds, to the tune of about $165 Billion dollars. Add to that another ‘jobs’ bill and other programs, the Congress is set to spend another quarter of a trillion dollars that we do not have. Let’s not forget our end on the Euro Zone bailout, either! Senate Majority Leader, Harry Reid (D-NV) is threatening to hold the Senate in session through this weekend’s Memorial Day holiday to get these appropriations passed. It’s okay for Obama to leave town and not even preside over the official ceremony at the Tomb of the Unknown Soldier so he can get in some golf rather than honor our veterans. So, what happened to all that money that is suddenly missing from circulation? The major banks are hoarding it! A report from the Wall Street Journal yesterday states that most of the major banks are still doing the exact, same thing Lehman Brothers was, shifting debt off their books just before making their monthly public statements. So, in addition to this accounting ‘Tom-Foolery’, we have a steady siphoning of cash into the ‘red-holes’ of our major banks. Just as in the case of Greece, hiding the true nature of their debt for years, we have to be suspicious now of every major financial institution, and every nation, that the actual debt loads being carried are far greater than those reported. TheFederal Reserve has poured trillions of dollars into ‘The System’ since early in 2008. Guess-timates range from $7-9 Trillion dollars and it could very easily be much, much more. Meanwhile, there has been little relief of credit. In the past few months, assets of institutional money markets are falling at a rate of 37% per year. The Credit Crunch is still all too real. The situation is not made any better by the Fed being the principle buyer of U. S. Treasuries. While there has been a move by others to buy our bonds since the Debt Contagion in Europe became deeper and wider, the Federal Reserve stopped reporting who was buying our bonds earlier this year. Apparently to hide the fact that they were buying them, or as Max Keiser would put it, sort of “like a dog eating it’s own vomit!” Speaking of Max, he was recently contacted by one, Chris Berg, an alleged expert on cyber-terrorism for the Department of Homeland Security. Berg’s letter requests that Keiser speak with him about Max’s allegations that the May 6th ‘Flash-Crash’ was an act of financial terrorism. Keiser’s response to Berg was a flat NO! Since Max equates that our government and entities like Goldman Sachs are joined at the hip, any advice he might give would only allow firms like Goldman Sachs to game ‘The System’ better. “Fiscal policy does not work. The US has just tried the biggest fiscal experiment in history and it has failed.” says Prof. Congdon. Of Obama’s economic advisors, Larry Summers, Paul Krugman and Joe Stiglitz, Congdon says they are all Keynesians who “despise traditional monetary theory and have a religious aversion to any mention of the quantity of money.” While many still see the threat of deflation as our principle enemy,the Debt Contagion is showing us all that the music is winding down and there are even fewer chairs left than thought, if any at all. For the past 95 years, we have been plunged into the dishonest world of debt-based, fiat currency. Woodrow Wilson condemned us to the fate we are now experiencing. He thought it was a good thing, that his enlightened, ‘white-shoe’ elitists from Harvard, Yale and Princeton should be in full control of our economy, and of our lives. But that game only has so many turns of the wheel. It didn’t work for the Soviet Union. Japan is a basket-case. Europe is on the brink of defaulting with the United States next in line. If one could honesty appraise China’s books, we would most likely see the same thing. Obama’s actions last year put him in full ownership of ourfinancial crisis . He may try to keep selling the ‘blame Bush‘ story, but, when you come right down to it, they both bought their ‘white-shoes’ from the same club. The impending crash ofthe Debt Contagion will be assigned by future historians to him, and be known as the ‘Obama Depression’.
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#1. To: no gnu taxes (#0)
Careful, if you bring this stuff up some of our less intelligent posters get upset because they don't understand it, as they noted earlier today on another thread....(chuckle)
For approximately 72K, BP Oil bought Owe-bama. And as President, he let them Spill, Baby, Spill! Its documented.
As was pointed out, the Fed doesn't use money supply as a gauge.
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
And as was pointed out, they should.
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