You Are Here: Home » Posts tagged "fed"

First de-pegging from the Euro, now Switzerland is voting to end private central banking

For decades, Switzerland has been known as the banking capital of the world due to their neutrality, and long history of protecting wealth from the prying eyes of governments.  And although they recently gave into U.S. pressures for transparency of accounts owned by American citizens, two major policy decisions may be separating themselves once again from the pack in the Western financial system. Back in Ja ...

Read more

Banks take advantage of interest rate hike to raise borrowing costs without upping interest to depositors

Almost immediately after the Federal Reserve raised the discount rate from near zero to .25%, banks began to raise the cost of borrowing for mortgages, credit cards, and other loans.  In particular, Wells Fargo, PNC, and JP Morgan banks raised their prime borrowing rates to 3.5% less than five minutes after Chairman Yellen's announcement. But while the cost of borrowing from banks is increasing, the opposit ...

Read more

The last time the Fed raised rates, credit markets collapsed and the economy went into recession

As the entire global economy waits with baited breath for the Federal Reserve's rate announcement in a few hours, analysts are looking backward to what occurred in 2006 when the central bank last raised rates.  And interesting enough, the results were not good for anyone. Greenspan used rate hikes between 2004 until June of 2006 to qualify his 'irrational exuberance' mantra as the housing bubble would reach ...

Read more

Are foreigners moving into the safety of the dollar, or are they dumping it?

Over the past four months, it is estimated that China alone has dumped over $300 billion in their dollar based reserves, signalling a trend in which the Far Eastern economy is now using their treasuries to protect their own slowing economic conditions.  And with Japan, Europe, and the emerging markets all showing signs of recession rather than growth, one has to ask if the dollar's strength is actually base ...

Read more

Thomas Jefferson was right again as Germany takes over Greek infrastructure because of debt

Founding Father Thomas Jefferson once said, "If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered."  And in a sad but interesting 21st century version of this p ...

Read more

Oil falls below $35 a barrel while natural gas drops to lowest level since 2002

Energy prices are not simply barometers of inflation and deflation, but they are also red flags that point towards recession in ways few other indicators can.  And when you couple the current declines in oil and natural gas with highs in inventories worldwide, the result is that the global economy is slowing way down, and no amount of hyperbole from the mainstream media can change this. A few weeks ago, Dr. ...

Read more

Fed trapped on rate hike decision as U.S. is in recession no matter how you spin the numbers

On Dec. 5, two interesting data points that are indicating that the U.S. is now in a recession has the Federal Reserve trapped by their own rhetoric and deceptions.  First, exports by U.S. companies dropped to a three year low as they fell 'unexpectedly' due to a stronger dollar and less consumerism from country's already in their own economic downturns.  In addition, a new forecast by J.P. Morgan Chase put ...

Read more

Corporate borrowing and stock buybacks reach the point of diminishing returns

Over the past two years, corporations in the U.S. have been manipulating their EPS (Earnings per share) by focusing on the number of share's side of the equation, rather than increasing sales and revenue.  And while the new normal on Wall Street has been to exceed analyst's estimated earnings per share, more often than not they have failed in beating Wall Street's quarterly forecasts for overall earnings. H ...

Read more

Since 2010 the U.S. has been in hyperinflation

In layman's terms, the definition of hyper-inflation occurs when you expand a monetary supply to the point where it crosses over from an arithmetic rate of growth to an exponential one in relation to a nation's GDP.  This eventually is followed by price hyper-inflation, which eventually leads to destruction in confidence and a death event for a particular currency. Over the past five years the U.S. central ...

Read more

RED ALERT! A Major Attack That Will Annihilate the USA Is Announced

Hardcore Confirmation ‚Äď A Major Attack That Will Annihilate the USA Is Announced and It Could Happen At Any Given Moment! USA Prepares For the Worst! (Videos) Suspected for years of plotting to dismantle the U.S. electric grid, American officials have confirmed that Iranian military brass have endorsed a nuclear electromagnetic pulse explosion that would attack the country‚Äôs power system. American defense e ...

Read more

Nomi Prins was right… the Fed has no idea what it is doing

On Nov. 4, Federal Reserve Chairman Janet Yellen spoke before Congress on financial issues such as the state of the economy, interest rates, and monetary policy.  And during her hearing on the floor of the House, Yellen offered up a counter opinion to what was stated last month during the Fed's most recent FOMC meeting where the central bank hinted strongly at raising rates as early as December, and instead ...

Read more

Wonder why stock markets soared after Mario Draghi’s speech on Thursday?

During his press conference, Draghi announced that interest rates within the Eurozone would remain at zero, with the potential for more quantitative easing coming on the horizon should deflation and economic conditions merit it.  However, since the European Central Bank could not even spend all of its proposed one trillion euros through the buying of toxic bond debt from the banks, the question arises on wh ...

Read more

© 2012 Secrets of the Fed