Bloomberg to sue Federal Reserve

mate, if you cant make up your mind what to believe, it doesnt mean EVERYTHING that you can't comprehend or believe is a theory.

I almost cant believe the subprime market could cause so many banks to collapse either! BUt it's true!

End of the story is : The FED is private and acts for profit of its shareholders, while pretending to be a government agency. Congressmen have come out to say the FED is unconstitutional. Bloomberg is suing the Fed, which is a good thing. Lets see if Bloomberg succeeds.

By the way, if the FED is government, why is it listed in the phone pages as a private company, right next to Federal Express? and not under government????
We are not kidding you.

I will have a look at those links and vids btw, but at work where i have quicker internet.

rodimus said:

By the way, if the FED is government, why is it listed in the phone pages as a private company, right next to Federal Express? and not under government????

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I've never disputed ownership (how can I, it is privately owned), just control (and the law says it is controlled by Congress).

But lets not start that again.

Mark_B said:

It's like the climate change debate... some say it isn't happening (thankfully not many people now), some say it is and it is human caused, some say it is and it is natural. For me, if it is happening (I believe it is), then it doesn't matter whether it is human-caused or natural - the bigger and more important issue is what are we (as a species) going to do about it?

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I guess (taking it a bit further of topic here ) the answer to 'who/what is the cause of global warming' question would be crucial to decide how we can fix it, and whether we can fix it at all. Or is it something that will occur no matter what and we can only slow down the process by a year or a decade.

Mark_B said:

I've never disputed ownership (how can I, it is privately owned), just control (and the law says it is controlled by Congress).
But lets not start that again.

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All financial institutions are somewhat controlled by the government through the regulatory bodies and framework that they put in place to avoid financial disaster. Oh wait, hang on, who has control over what now?

Mark_B said:

I will have a look at those links and vids btw, but at work where i have quicker internet.

I've never disputed ownership (how can I, it is privately owned), just control (and the law says it is controlled by Congress).

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Hi,
if u listen to the Ron Paul clip in this thread, in one of the interview he did say that FED approved 20+ billion that day alone, WITHOUT getting approval from Congress. He says it was done without Congress' approval nor appropriation. FED has been bailing out with new billions of dollars each day, these $20+ or $50+billions each day did not get pass Congress for approval. According to Paul, he says, why is the FED asking COngress to approve the 700 billion anyway, when they are printing 20+billion each day to pump into the screwed up banks and economy without COngress approval. So FED is acting independently of Congress. COnclusion, FED isn't controlled by congress. It only gets COngress to approve certain things. The FED adjusts interest rates, inflation, etc.

The FED only asked congress to approve the other $700 billion, as a formality to get Congress involved, and if soon the US dollar devalues because of that massive new money printed, the FED can say "well, the Congress approved it! Dont blame us!"

BY the way, while we speak, the USDollar is slipping in value, the EURO is in a bull run against USD! AUD also climbing steadily. 75c in a few months! Each time they bailout some company with those trillions, just watch the AUD go up as the USD devalues!

rodimus said:

AUD also climbing steadily. 75c in a few months! Each time they bailout some company with those trillions, just watch the AUD go up as the USD devalues!

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The same $AUD that was at 97c as recently as July, before they announced the bailouts?

Incidently, I suspect 70 - 80c is where most economists would estimate the fair value of the $AUD to be.

Reverting back to fair value or therabouts is hardly revelationary (but still, perhaps, a good opportunity in the fx market).

Mark_B said:

Incidently, I suspect 70 - 80c is where most economists would estimate the fair value of the $AUD to be.

Reverting back to fair value or therabouts is hardly revelationary (but still, perhaps, a good opportunity in the fx market).

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What economists would say we should have a higher dollar..?? Are you sure that's not just you..?? The market says it should be 65c, so your saying the market is wrong and these economists [or just you] are right?

How can the $A be 70 to 80c when commodities are already lower than cost of production? Exporters have to be profitable in this country, because services and consumption and real estate is not a real economic wealth producer. Unless commodities start rising the $A will go lower, as commodities are the only thing this country does to make a bob. Exporters will once again be profitable with a low $A, so therefore until commodities go up again, the $A will be low.



I should disclose that I have no training in economics whatsoever. Just a farmer, however economics is just simple commonsense, and commonsense tells me that in a commodities crash the $A will never be at a high value as commodities is all this country has that is productive.


See ya's.

topcropper said:

What economists would say we should have a higher dollar..?? Are you sure that's not just you..??

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Westpac has said recently: "Our model is indicating that AUD fair value is around 80c..."
Source: Westpac Regional Economics Report: Third Quarter 2008

topcropper said:

The market says it should be 65c, so your saying the market is wrong and these economists [or just you] are right?

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The concept of fair value, like actual market value, is very subjective.

I'm not saying economists are right and the markets are wrong.

We all know economists are human and therefore are fallible.

But we also all (should) know that markets can sometimes (often?) over-react one way or the other.

Economists use models to predict things like fair value (before you go "bah!", I am well aware of and have in the past highlighted the limitations of economic modelling). Markets, of course, while driven by fundamentals, are also at the mercy of fear and greed. So who is to say which method of valuation is better than the other (I say that accepting ultimately that it is the market valuation that really matters).

Example: I heard an anecdotal report recently (I work in wealth management, btw) that said the companies on the S&P 500 where trading at a discount of around 35% of NTA and it is fairly well accepted that P/E ratios are at 20 year highs.

So - market value is really low. Doesn't mean it is wrong, but it does mean that alot of people are expecting that in due course it will make it's way back up towards where fair value is estimated to be.

topcropper said:

I should disclose that I have no training in economics whatsoever. Just a farmer, however economics is just simple commonsense, and commonsense tells me that in a commodities crash the $A will never be at a high value as commodities is all this country has that is productive.

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From what I can gather farming is the ultimate crash course in applied economics.

topcropper said:

What economists would say we should have a higher dollar..?? Are you sure that's not just you..?? The market says it should be 65c, so your saying the market is wrong and these economists [or just you] are right?

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The AUD is only so low against the USD because the USD is in a rally due to other circumstances, it will correct eventually.

Have a look at the AUD vs other major currencies. Look at the percentage it has dropped against these vs the percentage it has dropped against the USD.

hobo-jo said:

The AUD is only so low against the USD because the USD is in a rally due to other circumstances, it will correct eventually.

Have a look at the AUD vs other major currencies. Look at the percentage it has dropped against these vs the percentage it has dropped against the USD.

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We will agree to disagree then. What you say is correct though. The $US strength does have an effect too. But,


The $A will not correct back to 80c or more until commodities correct upwards. It's impossible, as we would not have an export income. Commodities at current levels, and a high $A, and we would then have an economy running on services and consumption and real estate, with an engine that was completely out of fuel.

Should the US dollar crash, which is highly likely, then I would expect commodities to increase in value too.


See ya's.

this still smacks of Ashekenazi to me - socialise the monetary system without FED approval to fund the propping up of the biggest leech in the USA's side - Jerusalem.

Ashekenazi jews are known socialists / communists.

rodimus said:

Ron Paul is one of the few congressman who has been right about the FED and the economy (he warned about subprime and recession at a time nobody believed him). The FED, being privately owned is illegal and against the Constitution, but they have gotten too powerful and too wealthy, that they control and influence government in almost every matter. He said, we need to audit the FED because the whole recession was manipulated by the FED for their own profit!

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While well intentional people like Lincoln, JFK and Ron Paul wanting to push the Fed out of the way, I'm afraid they (and Congress and the US people) lack three main ingredients to make it happen: The Will, The Skill and The Money.

The Fed, on the other hand, has all intent, purpose and resources to make up these three.

the AUD dropped from 97 to 65 because USD áccidentally' got stronger. WHat happened was all the hedge funds were liquidating their losing investments in foreign assets and commodities, and converted it back to USD to repay their debt. That is why suddenly a flood of people wanting USD again.

BUt each time where is a bailout of the economy by the FED, the USD will devalue over time, and Americans run the risk of hyperinflation.

Just few months ago gold suddenly shot up by demand up $100 in 1 night, then later, 3 american banks began shorting gold massively in concert to push it down. Yup, the guys in power dont want gold to go up.

http://www.youtube.com/watch?v=QJIlpUZAUZk&feature=rec-HM-fresh+div

History repeats itself: Private bankers and their old tricks - money and financial manipulation

http://www.youtube.com/watch?v=KOqm-PwKU1M&feature=related

CNBC anchors mortified that ROn Paul's economic speech was televised!

At last someone who is talking sense about the market and telling the truth about printing countless billions of new money out of thin air!