Content about Federal Reserve System

10.05.09

Besides putting our grandchildren in deeply in debt, the government stimulus was an attempt to solve the economic problems of this nation by throwing money at them. Has it succeeded or failed? The answer depends on whom you listen to, but the truth is that it did both. The GDP actually rose three percent (3%) the first two quarters of 2009, but how much of this was due to the stimulus spending? The stimulus money that went to state governments got spent on small, “shovel-ready” projects and prevented massive lay-offs which had been planned for early 2009. Larger projects will not occur until early 2010, so they will not impact the economy until then.

09.09.09

In a recent article in The Sovereign Society’s Offshore Letter, guest writer Chuck Dolce equated the practices of the Federal Reserve, our central bank, to those of The Godfather, Vito Corleone, whom he quoted, “Give this job to Clemenza. I want reliable people, people who aren't going to be carried away. I mean, we're not murderers, in spite of what this undertaker thinks...” - Vito Corleone. It is Dolce’s contention that our banking system operated much like Mafia loan-sharking.

09.09.09

In a recent article in The Sovereign Society’s Offshore Letter, guest writer Chuck Dolce equated the practices of the Federal Reserve, our central bank, to those of The Godfather, Vito Corleone, whom he quoted, “Give this job to Clemenza. I want reliable people, people who aren't going to be carried away. I mean, we're not murderers, in spite of what this undertaker thinks...” - Vito Corleone. It is Dolce’s contention that our banking system operated much like Mafia loan-sharking.

09.03.09

The American Bankers Association had assembled at a convention in 1923 and hired humorist, Will Rogers, to give a keynote address to the assemblage. Noting the scandals that had riddled the banking industry over the previous two years, Rogers began his delivery with, “You have a wonderful organization. I understand you have ten thousand folks here. And, if you count the ones in the various federal prisons, it brings your total membership up to around thirty thousand.” Much like in the twenties, the present day financial woes can be at least partially attributed to the easy credit, high limits and greed within our financial industry.

08.24.09

The mountainous U. S. debt incurred by the governmental attempt to pull the country out of the current recession could turn the country into a banana republic, says Warren Buffett. His contention is that like unchecked carbon emissions melting the icebergs, unchecked greenbacks will melt the purchasing power of our currency. The “Wizard of Omaha” has been right more than he’s been wrong, so you can bet that he has some insight into the future if the Congress and the Fed continue dilute the value of the dollar by printing more money to cover budgetary shortfalls.