Tuesday, January 03, 2006

The Federal Reserve: A Nasty Surprise Coming?

This arrived yesterday, courtesy of Cal S. (thanks). It provides (among other things) a detailed answer to that question, Who really owns the Federal Reserve central banking system that essentially controls the economic life of this country? We should reiterate that in March the Federal Reserve will stop reporting M-3, the total amount of fiat money in circulation, bank accounts, and available for the Federal Government to use to finance its spending sprees. That means that no one except the Insiders will have even the slightest clue how much fiat money is actually in circulation, or how much those Federal Reserve Notes in the wallet are really worth.

This will occur against the backdrop of the deflating housing bubble (which will also very likely kick a lot of illegal immigrants out of work, since so many of them have ended up doing the construction which is about all they are qualified for).

Expect prices to skyrocket this year, folks, as the Fed generates another round of inflation trying to keep this economy afloat and continue the illusion of economic growth. Expect a whole host of other problems as well, when the cost of everything goes up while incomes stay the same for those who are lucky enough to be able to keep their jobs.

Cal S. takes over at this point, describing today's post below. I don't know about this Zionist business; I mention it here so I won't be committed to that. But the House of Rothschild had clearly become the most powerful bloodline in Europe by the 1780s, powerful enough to bankroll the French Revolution, and the Rothschilds were very proud of their Jewish heritage. (Rumors have occasionally surfaced that Mayer Amschel Rothschild was the author of the infamous Protocols of the Elders of Zion, but I cannot confirm that.) Cal:


This is an excellant discussion of our present precarious economic situation. Good job, Janet!!! Janet mentions that the Federal Reserve is NOT a "federal agency", it is privately owned, and it has never been audited by any government agency. Its owners are descendents of the following Zionist controllers (I refer to them as the "Zionist Controlled International Banking Cartel"):

Rothschild Banks of London and Berlin
Lazard Brothers Bank of Paris
Israel Moses Seif Banks of Italy
Warburg Bank of Hamburg and Amsterdam
Lehman Brothers Bank of New York
Kuhn Loeb Bank of New York
Chase Manhattan Bank of New York
Goldman Sachs Bank of New York

You might want to go back into your files and re-read my communique to you dated 11-12-05, whose Subject was: COMMUNIST Links to the Federal reserve. As well as the communique to you dated 11-17-05 whose Subject was: Our Money System: An Essay in Three Parts [Note: this was written by none other than yours truly, and has been reprinted; just follow the link. SY.] Should any of you desire to have me resend these to you, contact me, and I will see that you get them.

Thank you again Janet.


----- Original Message -----
From: Janet Lee Meisinger
To: Janet Lee Meisinger
Sent: Saturday, December 31, 2005 2:07 PM
Subject: Re: Fed Hiding Looming Economic Disaster?

This is an excellent exposure of the lack of integrity of 'the Fed banks'. To top it off, 'the Fed' has never been audited - and does not pay taxes! For 92 years, these private bankers have made ga-zillions of dollars off the backs of hard-working Americans! Talk about tax fraud!!! These banksters had no 'reserve' - in 1913, they simply stole America's treasury with the help of a handful of corrupt politicians! It's private owners and their accommodators accomplished the biggest theft in history!!!
For returning our treasury to America!
Why should we be paying usury interest on our own money?
Janet Lee

Thanks to spiker

"On November 10th, 2005, shortly after appointing Bernanke to replace Greenbackspan, the Fed mysteriously announced with little comment and no palatable justification that they will hide M-3 effective March 2006. M-3 has been the main staple of money supply measurement and transparent disclosure since the Fed was founded back in 1913."

> What's the Fed Up To With the Money Supply?
> http://www.safehaven.com/article-4331.htm
> December 23, 2005
> by Robert McHugh
> Over the past two days, December 21st - when our first Hindenburg Omen (of whatever cluster is coming) - and Thursday December 22nd, the Federal Reserve has conducted one of the largest two-day Repo injections of money into the system since back in September 2001. On Wednesday they added $18.0 billion in reserves and on Thursday they added another $20.0 billion. Is this a coincidence, coming right as we get another Hindenburg Omen? Probably not. Is something high-risk going on behind the scenes here? Let's review some facts at the Fed. On November 10th, 2005, shortly after appointing Bernanke to replace Greenbackspan, the Fed mysteriously announced with little comment and no palatable justification that they will hide M-3 effective March 2006. M-3 has been the main staple of money supply measurement and transparent disclosure since the Fed was founded back in 1913. It is the key monetary aggregate that includes Fed Repo transactions, that mechanism whereby the Fed increases reserves. The date when M-3 will start being hidden also happens to be the exact month that Iran will declare economic war against the U.S. Dollar by trading its oil in Petro-Euros on its new bourse. But there is more. The Federal Reserve currently has three vacancies within the 19 top Regional Bank and Board of Governor spots. Why? Part of ongoing wholesale resignations.
> The latest is from the Philly Fed. Fed President and Open Market Committee member Anthony Santomero has announced his resignation after only a brief year and a half tenure. Very unusual. Hey, Fed Presidents are treated like gods. They have enormous power, prestige, and presence. Why quit? He is far from alone. Over the past few years no less than six Federal Reserve Regional Bank Presidents have resigned. This is highly unusual.
> An immediate impact is that we are about to have a largely inexperienced batch of individuals conducting monetary policy in the United States. So of course, the first thing they will do is hide the key money figures. Two positions for the Board of Governors (there are 7)have been open for quite a while. Plus six of the 12 Regional Head spots have turned over during the past few years.
> If a substantial amount of oil transactions will suddenly be conducted in Euros instead of Dollars, this should put pressure on the Dollar as folks exchange Dollars for Euros, jeopardizing the Dollar's status as the world's reserve currency, making it more difficult to print all the dollars the Fed wants to without driving the Dollar into the ground. Iraq threatened to do what Iran has threatened to do just before we went in looking for weapons of mass disappearance. If the Dollar tanks, Treasuries might not be far behind. If Treasuries tank, kiss the Housing-driven boom goodbye. Could the Master Planners be hiding M-3 because they anticipate they may have to monetize the Federal debt, buy our own Treasury Bonds during the coming economic attack against the Dollar? That would require a ton of new fresh money creation - too much to disclose. Could it be some folks at the top of the Fed do not have the stomach to be part of what is about to go down?
> M-3 has a direct but lagging impact on financial markets. Look at the chart at the top of the prior page. Whenever M-3 rises, the Dow Industrials rise. Whenever M-3 is flat or declines, the Dow Industrials decline. The Dow Industrials are a bellwether for the economy. If we can monitor M-3, we can better monitor the future path of equities and the economy. It is wrong for the Fed to stop its disclosure for this very reason. Investors need to know in a free market economy, because M-3 infusion is centrally planned intervention into a free market system. Investors need to know when the Master Planners have decided to intervene. Our buy/sell signals were designed to pick up the scent of Master Planner intervention by analyzing supply and demand forces underlying the markets. So with or without a fully disclosed M-3, we will be able to continue to identify coming multi-week trends.
> So what about M-3 the past week? The latest figures show that on a seasonally adjusted basis, M-3 rose 27.3 billion last week, a 14.0 percent annualized clip, and is up $76 billion over the past month, a 9.8 percent growth rate. But those are the massaged numbers. For the raw figures, fasten your seat belt. Are you ready? M-3 was increased $58.7 billion last week (that does not include the huge Repo infusions noted above), a 30.0 percent annualized rate of growth. For the past two week, the Fed added $93.5 billion to the money supply, a 24.0 percent annual clip. Over the past 6 weeks it is up $192.9 billion, a 16.7 percent Banana Republic hyperinflationary pace. This is nuts, folks - unless there is an incredible risk out there we are not being told about. That is a lot of money for the Plunge Protection Team's arsenal to buy markets - stocks, bonds, currencies, whatever. This level of irresponsible money supply growth makes shorting markets hazardous, yet at the same time says markets are at huge risk of declining. Maybe M-3 growth doesn't stop the decline this time. Should be a fascinating storm in 2006.
> The recent rise in Gold catalogued 74 points over about a month, a 16 percent rally from precisely the day the Fed announced it would hide M-3 from taxpayers and citizens of this great nation. That is no coincidence. Gold sees hyperinflation, monetization of debt, and intervention into free markets. Gold is telling us it expects Ben Bernanke to be an inflationist.
> Don't miss Dr. McHugh's interview with CBS radio at WWJ 950 AM on December 30th, 2005. You can access this station through the internet by clicking on www.wwj.com . Jayne Bowers presents Dr. McHugh's views on the Fed's decision to drop M-3, the Plunge Protection Team, and new Fed Chairman Ben Bernanke.
> If you would like a Free 30 day Trial Subscription to check out our remarkable buy/sell signals on the blue chip Dow Industrials and S&P 500, NASDAQ 100, or HUI Amex Gold Bugs Index, simply go to www.technicalindicatorindex.com, and click on the "Contact Us" button, and email us with your request, including a password you would prefer to use to access our site. A subscription gains you access to index buy/sell signals, our thrice weekly Market Analysis Newsletters, Traders Corner, Guest Articles, and our Archives. On October 13th, 2005 we closed out our latest Trader's Corner transaction with a 51.8 percent profit over a 21 trading day period (this is not an annualized figure). The prior trade garnered a 34 percent profit.
> We integrate a broad base of technical analysis tools to help our clients build wealth. In addition to these buy/sell signal indicators, a subscription will gain you access to our newsletters that cover the major U.S. Equity, Bond, Commodity, Precious Metal, and Currency markets, using multiple tools simultaneously, including Elliott Wave Theory, Supply and Demand, Momentum Measures, Dow Theory, Chart Patterns, Cycles, Sentiment Measures, Fibonacci Ratio Measures for Price and Time turn-date targets, and Analogs of Current Price Behavior with the Past to name a few. Check us out today and start making money!
> "For a child will be born to us, a son will be given to us;
> And the government will rest on His shoulders;
> And His name will be called Wonderful Counselor, Mighty God,
> Eternal Father, Prince of Peace."
> Isaiah 9:6
> Talk Back
> http://www.safehaven.com/comment.cfm?id=4331
> Robert D. McHugh, Jr. Ph.D.
> <http://www.technicalindicatorindex.com/>Main Line Investors, Inc.
> Robert McHugh Ph.D. is President and CEO of Main Line Investors, Inc., a registered investment advisor in the Commonwealth of Pennsylvania, and can be reached at www.technicalindicatorindex.com. The statements, opinions and analyses presented in this newsletter are provided as a general information and education service only. Opinions, estimates and probabilities expressed herein constitute the judgment of the author as of the date indicated and are subject to change without notice. Nothing contained in this newsletter is intended to be, nor shall it be construed as, investment advice, nor is it to be relied upon in making any investment or other decision. Prior to making any investment decision, you are advised to consult with your broker, investment advisor or other appropriate tax or financial professional to determine the suitability of any investment. Neither Main Line Investors, Inc. nor Robert D. McHugh, Jr., Ph.D. Editor shall be responsible or have any liability for investment decisions based upon, or the results obtained from, the information provided.
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