Bernanke Scolds Congress/Keeps Bailouts Details Secret Posted: Apr 16 2010 By: Greg Hunter Post Edited: April 16, 2010 at 12:24 pm
Filed under: Greg Hunter
Dear CIGAs,
Earlier this week, Fed Chief Ben Bernanke told Congress to basically raise taxes and cut the federal budget. The inference was, if Congress doesn’t get its financial house in order, it will be their fault if the economy tanks. Here is how Bernanke actually said it, “. . . Maintaining the confidence of the public and the financial markets requires policy makers more decisively to put the budget on a sustainable fiscal balance.”
Bernanke also said the federal debt “. . .is already expected to be greater than 70%” of Gross Domestic Product, “. . . at the end of 2012.” And if that is not bad enough, Bernanke said that by 2020, “. . .federal debt would balloon to more than 100% of GDP,” provided taxes are not raised and budgets are not cut. The mainstream media gave this story a great big yawn; but don’t kid yourself, what Bernanke said was a powerful, ominous warning.
All I can say is Ben Bernanke has a huge set of cojones. He is scolding Congress to keep taxes up and spending down to help pay for the gigantic bailout of Wall Street Banks. Meanwhile, the Federal Reserve is fighting tooth and nail to keep from revealing its secret bailout of the same banks during the financial meltdown in 2008!
The Fed was sued by financial news network Bloomberg two years ago. Bloomberg wants the Fed to reveal which banks received $2 trillion in bailout money and why. Bloomberg won the case and the Fed appealed. Bloomberg, also, won the appeal in March 2010! The precedent setting case would force the Fed to reveal the details of secret bank bailouts–including $500 billion given to foreign financial firms!!
In a Bloomberg story earlier this week, lawyers representing the Federal Reserve (which is made up in part by big U.S. banks) said, “U.S. commercial banks will take their fight against disclosure of Federal Reserve (documents) in 2008 to the Supreme Court if necessary . . .” Lawyers representing the Fed say they are worried that if details of trillions of dollars in bailouts are revealed, it could cause another financial meltdown. General Council for the Fed, Paul Saltzman, says, “Our member banks are very concerned about real-time disclosure of information that could cause a run on the banks.” This is another story, with dire implications, the mainstream media is ignoring. (Click here for the complete Bloomberg story)
So, if the secret slimy deals of the Fed are revealed, people will lose confidence in the banks and want their money? If that is the case, and I think it is, we Americans need to know why the Fed printed up at least $2 trillion and handed it out to their banking syndicate.
I think what Bernanke is really saying is, “America get your finances in order and pay for this Wall Street bailout while we (the Fed) continue to bailout our banking buddies in secret.” (My quote) This will all be paid for eventually, one way or another, by U.S. taxpayers. We should at least find out if we got our money’s worth. Below is Ben Bernanke’s warning about big deficits on Capitol Hill earlier this week:
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Summers: 'Pay People to Not Work, and More Will Work'- Wall Street Journal



Morgan Stanley Fears German Exit From EMU Posted: Apr 16 2010 By: Jim Sinclair Post Edited: April 16, 2010 at 12:25 pm
Filed under: General Editorial
Dear CIGAs,
The US dollar would be measured as it used to be against the Dm and Swissy.
The USDX would become redundant.
The result will be, if it actually occurs, the strengthening of gold long term.
Morgan Stanley fears German exit from EMU Morgan Stanley has warned that the Greek debt crisis is setting off a chain of events that may prompt German withdrawal from the eurozone, with grim implications for investors caught off-guard. By Ambrose Evans-Pritchard Published: 6:12PM BST 15 Apr 2010
"The backstop package for Greece and the ECB’s climb-down on its collateral rules set a bad precedent for other euro area states and make it more likely that the euro area degenerates into a zone of fiscal profligacy, currency weakness, and higher inflationary pressures over time," said Joachim Fels, head of research, in a note to clients.
The US bank said a bail-out for Greece may be necessary to avoid a crisis for Europe’s financial system, but warned that it also "sows the seeds for potentially even bigger problems further down the road".
Mr Fels said weak states cannot easily leave EMU because they would pay a stiff penalty in higher rates, would be stuck with euro debt contracts, and might need controls to stem capital flight. It is a different calculus for Germany, which would see lower rates and might view EMU exit as the only way to ensure monetary stability.
"Obviously, we have not reached the end game yet. However, with the latest developments, such a break-up scenario has clearly become more likely. The risk is far from negligible and the consequences for financial markets would be very severe. Investors ignore the break-up risk at their peril," he said.
Jürgen Stark, the European Central Bank’s chief economist, vowed on Thursday to resist pressure to help spendthrift governments out of their troubles by resorting to easy money. "Let me stress that any call to reduce the real value of public debt through higher inflation will be firmly opposed by the ECB," he said.
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IMF Prepares For Global Cataclysm, Expands Backup Rescue Facility By Half A Trillion For "Contribution To Global Financial Stability"
http://www.zerohedge.com/article/imf-prepares-global-cataclysm-expands-backup-rescue-facility-half-trillion-contribution-glob


US Loan Mod Program Wasting Billions- Miami Herald


Back to normal?
F.D.I.C. closes 8 failed banks this week.
http://www.fdic.gov/bank/individual/failed/banklist.html


Quote of the day.

"The art of taxation consists of so plucking the goose as to obtain the largest amount of feathers with the least possible amount of hissing." - J.B. Colbert, French Statesman, circa 1665