Alan Greenspan: This is ‘extremely dangerous’

Please see the website source for the video.

 

While markets hone in on the Federal Reserve’s monetary policy hints, former Fed Chairman Alan Greenspan sees a bigger economic irritant—government spending.

On Wednesday, Greenspan decried a rise in entitlement costs, which he contended have pressured the U.S. economy.

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Exclusive: Wary of natural disaster, NY Fed bulks up in Chicago

Perhaps the Fed is preparing for a crisis of its own doing and a ‘natural disaster’ is a scapegoat.

Although, and admittedly to their credit, a natural disaster is looming as Mt. Saint Hellens is ready to blow at any moment and a mega earthquake is poised to sink half of California into the Pacific. The New Madrid Fault line is also a great concern at the moment. However, normally in the real world, it’s rather difficult and borderline asinine to try and make a connection between Fed rate hikes and natural disasters.

As the article notes, cyber attacks likely will also play a role in a new crisis.

 

(Reuters) – The New York branch of the U.S. Federal Reserve, wary that a natural disaster or other eventuality could shut down its market operations as it approaches an interest rate hike, has added staff and bulked up its satellite office in Chicago.

Some market technicians have transferred from New York and others were hired at the office housed in the Chicago Fed, according to several people familiar with the build-out that began about two years ago, after Hurricane Sandy struck Manhattan. Continue reading

The Federal Reserve’s Explicit Goal: Devalue The Dollar 33%

The Federal Reserve Open Market Committee (FOMC) has made it official: After its latest two day meeting, it announced its goal to devalue the dollar by 33 percent over the next 20 years. The debauch of the dollar will be even greater if the Fed exceeds its goal of a 2 percent per year increase in the price level.

An increase in the price level of 2 percent in any one year is barely noticeable. Under a gold standard, such an increase was uncommon, but not unknown. The difference is that when the dollar was as good as gold, the years of modest inflation would be followed, in time, by declining prices. As a consequence, over longer periods of time, the price level was unchanged. A dollar 20 years hence was still worth a dollar.

But, an increase of 2 percent a year over a period of 20 years will lead to a 50 percent increase in the price level. It will take 150 (2032) dollars to purchase the same basket of goods 100 (2012) dollars can buy today. What will be called the “dollar” in 2032 will be worth one-third less (100/150) than what we call a dollar today.

Full article: The Federal Reserve’s Explicit Goal: Devalue The Dollar 33% (Business Insider)