Bernanke - Hedging His Bets or Lying?

Ben Bernanke, the Federal Reserve Chairman, recently wrote that the European economies might crash the American economy. This is the same guy who said that housing would have a "soft landing" and that the subprime problems would not leak over into other parts of the housing market. Now lets consider what he said in his latest nonsense.

EconomyWatch on MSNBC has posted the following article. Bernanke warns of possible European 'contagion' The story has a link to the Feds own website.

If you read Mr. Bernanke's written testimony he claims that as a result of Europe's economic problems the Federal Reserve did some currency swaps with foreign banks and that it is safe for the Federal Reserve and the U.S. taxpayers because "They present no exchange rate or interest rate risk; each drawing has a short maturity and must be approved by the Federal Reserve; they are collateralized by the foreign currencies for which dollars are swapped; and our counterparties are the foreign central banks, not the foreign commercial banks that receive the dollar loans".

If you go back and read one of my earlier post regarding these swaps you will know just how dangerous it was. How Mr. Bernanke cannot see this is beyond me. If the foreign currency fails then our collateral (their currency) is worthless. How is that not a risk. When one goes, they all go and they keep our dollars. Think of it this way, I trade you $100 for a lamp, the lamp breaks, will you give me my hundred dollars back? No, you would not, not if you have already spent them.

I am still recovering from being sick so I may not be able to explain this as well as usual. Remember when the stock market crashed and the big banks were about to fail, well, Congress approved the TARP bill which allowed for a trillion dollars in "bail out" money. It later turned out that much of that money and loans from the Fed were given to foreign banks. Right now the currencies are no different than the derivatives are and that crashed the world's economies.

If you take a bunch of currencies, like the Euro represents, and you blend them in with your own currencies then if one fails it effects them all. They will fail and that will be the excuse for setting the rates for all of them on an international level. This is coming.

If you read earlier in Mr. Bernanke's testimony, he also says that he agrees that the European Union needs to be tighter politically to have a stronger Euro. You see political union and economic union are put together so when the currencies do crash, Mr. Bernanke will support us to give more international power over us politically.

This is the type of thinking that buried Greece and is about to bury the rest of Europe and us too. Sure they reduced the debt of Greece's bonds; but, they did it in exchange for the right to set Greece's budget, heck, Germany even sent over tax collectors to Greece.

There is a speaker named Nigel Farage and he has discussed how well the European Union has worked and has discussed how dangerous uniting with a shared currency is and how the European Union has a greater effect on their internal laws than their own countries.

YouTube - UKIP Nigel Farage MEP and Irish Gay Mitchell MEP debate Irelands EU membership

If you can, spend the time to listen to the whole debate. Here again we hear how a tighter political allegiance is supposed to help their currencies. You will hear the same arguments made when our currencies all crash together. One of the things that happens when you give up your sovereign budget making is that you cease having sovereign decision making. Because your laws are made by international agreement, you have less direct ability for your vote to matter.

This is probably one of the most important issues you will see in your life and how the people who want a new world order will achieve it. If it sounds like a conspiracy theory, oh well, it is the truth. The political class of the west wants more internationalism and international law and they don't want it voted on through treaties or it challenged through referendum. When Ireland did not vote for one of the referendum's of the EU, they were told if they didn't pass it they would be penalized by the EU.

This is going to happen and so few people will understand it when it does. It will not be until later, perhaps years later that they will understand what the real consequences are. Lets say that we are trillions of dollars in debt, what if we could have all of our national debt eliminated by agreeing to international rate setting for currencies, people would be thrilled. They would find sense in the world again and accept the international rate setting as reasonable. The power to regulate the money is the power to regulate the country.

When this little rat trap is sprung, the fear will be so great and the answer sound so reasonable that people will demand we immediately approve the treaty that will be needed to create it. It is nothing new that I have said the crash of these economies was intentional and if you listened to the whole video you heard how the European Crisis was caused by their loaning out cheap money. Why did the same thing happen across Europe as happened here at the SAME TIME. How is that an accident, how did not one country manage to avoid the same problem, why didn't the finance ministers of any of these countries say no?

Wild Speculation about Apple

Still not feeling well so I will give a short post. Apple has $98 billion in cash. That is a lot. This week they are going to announce what they are going to do with some of that money. At the same time Fannie Mae is going to be selling 2,500 properties in bulk. What if Apple had decided to buy them and diversify? Just a thought.

No More Cash in Sweden

I had a tough last couple of weeks and somehow ended up sick. I have spent the whole day in bed drinking water and juice. Having said that, the Pimpernel is always on the lookout for news articles that you need to know. You need to read this one.

AP via Newsvine - In Sweden, cash is king no more

Yes, Sweden is going to eliminate all currency, no paper money. Now here is the question that was not addressed in the article, how do you trade with other nations when you don't have a currency? How do you regulate the value of your nations worth when trading in air? How do you determine what the total value of a nations promises are?

In the not too distant future all transactions will be electronic; but, the underlying valuation of the currencies will have to be set by international agreement and that means you will have a one world currency. This will change everything, all transactions will be public and you can be shut off at any time. Try not paying your taxes and see what happens. We are witnessing history being made on so many levels.

A Tentative Return

I spoke to a friend yesterday that I had not heard from in about two years. It was nice to hear her voice. She met me when I was going through the divorce, I was not at peace with myself or the world at that time. So much has happened, so much change and loss and in the end I came out calmer and more at peace than I had been ever before in my life.

I look at the world around me, see the insanity and am at peace. There is nothing I want. I am happy just to be me and think again. I spent 40 years working and studying and having nothing physical to show for it; but, I have so much more and such good friends. As time moves forward and retirement comes closer, I wonder what I shall do next. Too bad the Protestants don't have any monasteries, I could do that.

I see the world and see that what happens will be left in the hands of others. Those of us at the end of the baby boom, those who were teenagers in the 70s are seeing our time pass and we didn't have much of it. We didn't have any say in anything during the 60s, we couldn't get decent jobs in the 70s or 80s because we were outnumbered by the ex-hippies and flower children. We saw the greatest increase in divorces and didn't have as many chances to promote because the children of the 60s had more experience. Please don't think I am complaining, I did easily overcame these issues and promoted very quickly. I worked my way up quite well.

Those of us who are those 70s kids, we also got to see a lot. Heck, we saw personal computers, we saw a man land on the moon, we had our time even if it was brief for us to impact the general mind. We were a silly generation, we went to discos and had pet rocks. We streaked and listened to Cheech and Chong. We are also the last generation that knows how things are supposed to work, we are the last generation to not be totally compartmentalized in our thinking.

I have tried to pass on knowledge and understanding to those who will replace me. They got what they got and will learn what they learn. I am not sure what I will do with the rest of my time. I am not sure how my peers will spend their time, we are in charge for a moment, will we make the proper choices? We shall see.

I Will Write Again

I will be posting again, just have a lot on my mind. There are times when I just don't like talking and this is one of them. For those who care, everything is fine. I think in our lives we turn into rest stops on occasion. If you drive long and hard, you need to pull over once in awhile, look at the road behind you and decide what you will do next.

You Get Nothing

I have nothing to say. I am sad and tired. I am exhausted by the week. It has been crushing and the funny thing is, I always get up. There is no other option. Peace.

Stared at trash cans today

I have long forgotten what my life is about and what I do for a living. Today I inspected trash cans, I did not have to, I could have had someone else do it; but, I like to investigate things for myself. So, I walked in the cold to look at trashcans and what they had in them. What is your life about? Oh, I will check them again in the morning. LOL.