Sunday, May 25, 2014

These Charts Should Tick You Off! Federal Reserve Salaries Up 13% Annually; Everybody Else On The Flat Line

By David Stockman


These charts need little comment. The Fed’s books are not audited and they spend billions per year on 20,000 superfluous staff. The latter produce endless rationalizations and duplicitous whitewashes of Fed policy.

Worse still, the Fed uses its unlimited ability to print money and earn interest off its $4.4 trillion holdings of taxpayer issued debt to award cushy research and study contracts to most of the monetary economists in the country. No wonder that when the monetary politburo speaks, the chorus of monetary economists shout a grateful, amen!

Meanwhile, the wage picture for the nation’s work force of 155 million, less the 22,000 Fed staff and outside economists who work for them, is not so good. During the Fed’s massive money printing spree since 2008, which took its balance sheet from $900 billion to $4.3 trillion, average real hourly wages have not yet regained their pre-crisis level.

There is no other way to say it. The Federal Reserve have become a self-financing, self-perpetuating rogue institution that is a clear and present danger to free market capitalism and American democracy. This baleful state of affairs should tick you off. It does me!







 The above originally appeared at David Stockman's Contra Corner and is reprinted with permission.


4 comments:

  1. This is hands down the best measure of inflation. The worlds biggest counterfeiters never loose from their own actions.

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  2. Their salaries have to keep up with the inflation they cause...

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  3. Let's see. The FED is a private company that is given government permission to print money and loan it to said gov't at interest.
    The interest is paid for by American producers who produce wealth by selling products and services for a profit.
    They could just take the money from us directly and forget about the interest but the FED has a pretty good scam going that few seem to notice.
    They just print money, give or "loan" it to the gov't and get a big chunk of the money that is stolen from us and call it interest.
    Now, for those of you who say I'm "over simplifying" things you are half right.
    It really is that simple.

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  4. James Rickards-Financial Collapse and Massive Shortages in Gold Coming

    On gold manipulation and when it will end, Rickards says, “It will end when the physical shortage gets to the point that someone fails to deliver; which, at that point, there will be a buying panic. There could be a buying panic or what some people call a demand shock. One of the things I said about gold manipulation is if I was the manipulator, I would be embarrassed at this point. The manipulation is obvious. The evidence is coming in from all directions. . . . The manipulation is clear. When will it end? It will end when there is a physical shortage that pops up somewhere, or it will end with a short squeeze.”

    Rickards goes on to say, “We are going to get a very large demand shock coming from China and India. Let me explain those two cases. We have a brand new government in India, and they are going to repeal the import tax on gold. We also have the wedding season coming up. . . . So, India is set up for a very large surge in demand in the fourth quarter. Now, over to China, this is one of the things that it’s happening faster than I originally thought. The credit collapse story is happening in real time. I said (in my book) this might be a 2015 event, but it looks like it is happening now. Defaults are piling up. We are seeing money rise. We’re seeing people march down to the banks . . . trying to get their money back. . . . So, if they can’t buy foreign stocks, domestic stocks, don’t want to put their money in the bank and are getting out of real estate, then what’s left? The answer is gold. . . . I see a demand shock coming from China. . . . You could see a scramble to buy gold. It is going on anyway, but you could see it accelerate. That will take down the manipulation. Once the markets prevail over the manipulators, then watch out.”


    http://usawatchdog.com/catastrophic-outcomes-may-come-faster-than-expected-james-rickards/

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