Bernanke adviser might quit (and why it's significant)

[Flabbergasted]

(This took me a while.....Please tell me what you think)

http://www.baltimoresun.com/business/investing/bal-bz.hope18jan18,0,2533170.story?coll=bal-business-headlines

Vincent Reinhart, one of Federal Reserve Chairman Ben S. Bernanke's top advisers on interest rates, plans to leave the central bank, people familiar with the decision said.

The departure leaves a vacancy at the head of the division that crafts the Fed's policy options at a time when Bernanke is trying to slow inflation without damaging growth. Reinhart helps draft the statements after meetings of the Federal Open Market Committee. Reinhart, 49, plans to join the American Enterprise Institute, a Washington-based think tank, the people said on condition of anonymity. He will write about monetary policy and macroeconomics, joining scholars such as Allan H. Meltzer and John H. Makin.

No successor has been named to succeed Reinhart as director of the Division of Monetary Affairs.

The Federal Reserve is to economic supply that the American Enterprise Institute (AEI) is to economic policy. Trends are analyzed discussed and implemented based on these two groups. They manipulate every aspect of our economic system from social programs to tax breaks. And of course they are conservative.


Here is a Panel Discussion you were welcome to attend on Jan 31st 2003put on by the International Monetary Fund.

I highly recommend you view the panels pictures...

https://www.imf.org/external/np/tr/2003/tr030131a.htm


Here is a excerpt from the beginning....It shows exactly how these people think....

MR. MODY: Thank you, John.

I'm actually going to be extremely brief because we have a very distinguished panel. I have five slides, and what I'm going to with these five slides is to give you a very quick overview of why we had this conference and what are some of the results from it, just to give a little bit of a context to the policy discussion. So these are research results, and what we hope from the panel we will get is a policy perspective on these questions.

The first slide, to jump right into it, is in some sense what motivates these discussions, and it shows that there have been very large and increasing co-movements in financial markets. In the left chart, you see that co-movement for the G-7 countries; in the right chart, you see it for the emerging markets. The extent of correlation in financial markets for emerging markets is less that for the G-7, but it is trended up.

In contrast, for real output, i.e., for GDP, you see lots of ups and downs. You don't necessarily see a trend, and as the conference suggested, there's some controversy where the real co-movements increased or decreased over the period. And if you do the chart the way we have done it, it seems to just go sideways. You will notice that in the first chart the real and financial co-movements for the G-7 countries tend to go up and down together. So there seems to be some connection between the real and financial co-movement in the G-7 countries, but less so in the emerging market economies.

(Skip to......)

George Bush at the American Enterprise Institute February 26th 2003
President Discusses the Future of Iraq(kind of a fucked up line considering we had not even invaded yet)

Notice it's like a big joke and then Bush gets serious. He's also quite charming.

THE PRESIDENT: Thanks for the warm welcome. I'm proud to be with the scholars, and the friends, and the supporters of the American Enterprise Institute. I want to thank you for overlooking my dress code violation. (Laughter.) They were about to stop me at the door, but Irving Kristol said, "I know this guy, let him in." (Laughter.)

Chris, thank you for your very kind introduction, and thank you for your leadership. I see many distinguished guests here tonight -- members of my Cabinet, members of Congress, Justice Scalia, Justice Thomas, and so many respected writers and policy experts. I'm always happy to see your Senior Fellow, Dr. Lynne Cheney. (Applause.) Lynne is a wise and thoughtful commentator on history and culture, and a dear friend to Laura and me. I'm also familiar with the good work of her husband -- (laughter.) You may remember him, the former director of my vice presidential search committee. (Laughter.) Thank God Dick Cheney said yes. (Applause.)

Thanks for fitting me into the program tonight. I know I'm not the featured speaker. I'm just a warm-up act for Allan Meltzer. But I want to congratulate Dr. Meltzer for a lifetime of achievement, and for tonight's well-deserved honor. Congratulations. (Applause.)

At the American Enterprise Institute, some of the finest minds in our nation are at work on some of the greatest challenges to our nation. You do such good work that my administration has borrowed 20 such minds. I want to thank them for their service, but I also want to remind people that for 60 years, AEI scholars have made vital contributions to our country and to our government, and we are grateful for those contributions.We meet here during a crucial period in the history of our nation, and of the civilized world. Part of that history was written by others; the rest will be written by us. (Applause.) On a September morning, threats that had gathered for years, in secret and far away, led to murder in our country on a massive scale. As a result, we must look at security in a new way, because our country is a battlefield in the first war of the 21st century.

We learned a lesson: The dangers of our time must be confronted actively and forcefully, before we see them again in our skies and in our cities. And we set a goal: we will not allow the triumph of hatred and violence in the affairs of men. (Applause.)

Our coalition of more than 90 countries is pursuing the networks of terror with every tool of law enforcement and with military power. We have arrested, or otherwise dealt with, many key commanders of al Qaeda. (Applause.) Across the world, we are hunting down the killers one by one. We are winning. And we're showing them the definition of American justice. (Applause.) And we are opposing the greatest danger in the war on terror: outlaw regimes arming with weapons of mass destruction.

In Iraq, a dictator is building and hiding weapons that could enable him to dominate the Middle East and intimidate the civilized world -- and we will not allow it. (Applause.) This same tyrant has close ties to terrorist organizations, and could supply them with the terrible means to strike this country -- and America will not permit it. The danger posed by Saddam Hussein and his weapons cannot be ignored or wished away. The danger must be confronted. We hope that the Iraqi regime will meet the demands of the United Nations and disarm, fully and peacefully. If it does not, we are prepared to disarm Iraq by force. Either way, this danger will be removed. (Applause.)

Blah Blah Blah...




Allan H. Meltzer.....? The guy that Reinhart is going to work for is the keynote speaker?????



And Bush is not even the main speaker at this event.....????


This kind looking man is....! His speech was unavailable....!





However he is not kind. In fact this is what he thinks of sheep....

"....those who prattle on about lack of morality under capitalism or its lack of concern for individuals and their well being."

http://www.tepper.cmu.edu/afs/andrew/gsia/meltzer/adam_smith.pdf

[Ian David]

1. He wants to spend more time bankrupting his family? n/t

[Flabbergasted]

2. Love the sig...!

[Flabbergasted]

3. I'd really appreciate if I could have some feedback on this from anyone....

It took me several hours to piece together...


Thanks

[razors edge]

4. NO WAY OUT: A 50% DOLLAR DEVALUATION

Something I came across earlier today.

by Robert McHugh, Ph.D.
January 14, 2007

http://www.financialsense.com/fsu/editorials/mchugh/2007/0114.html

Artificial Economics, the brainchild of the Master Planners, has focused on building an economy where debt — not income — pays for goods and services. The emphasis upon debt instead of income via hyper-inflating the money supply in stealth fashion, has destroyed the dreams of millions of Americans. Artificial Economics is a silent economic disease. A coming significant devaluation of the dollar is a likely and necessary consequence.

The use of hyper-inflated money supply to postpone a recession over recent years has served to create an imbalance between income and assets. Debt covered the gap for a while, but now debt is extreme, with a limited useful life. With high paying jobs being exported, and a limit to what is essentially slave labor from illegal immigrants, future productivity gains which translate into income are almost entirely technology dependent. If technology fails us, then the debt-to-income imbalance, then the asset-to-income imbalance must be reckoned with. Undoubtedly, that reckoning will either be a nasty recession/depression — where asset values drop below debt levels, leaving us with an imbalance between both assets and debt, and income and debt — or a significant and sudden devaluation of the dollar.

What is accomplished by a significant and sudden dollar devaluation? It is a way to pay off debt with suddenly-more-available dollars; cheaper dollars. We have been witnessing a slow meticulous devaluation of the dollar over the past two decades, with an acceleration over the past decade. This has come from an increase in the money supply via the credit creation route — debt. But that has served to replace income, and postpone a recession, at the great cost of hyperinflation of real estate, related taxes, and just about everything you buy. The result is debt. Once the debt creation train stops, then there will be no way to pay for things; no way to pay off that debt. There will soon be a point of no return, with an inevitable sudden and significant dollar devaluation as the only solution. It would require the Treasury printing an amount of money equal to the current entire money supply, more than 11 trillion dollars, and literally handing it out to each household so that the broadest spectrum of people have the ability to payoff their debt. Debt does not rise in value as the dollar devalues. It is a contracted amount in former-dollar-value, notional terms. Thus, if we suddenly hand several hundred thousand dollars to each and every household, a dollar will become worth 50 cents in real terms, but in debt terms, it will still be worth a dollar, and folks will have more of them.

[Flabbergasted]

5. Thank You. Yes this fits very well.

[Flabbergasted]

6. Just Curious: is this news to anyone or am I way behind?

[KoKo]

7. I tried to K&R but the time limiit expired...This is a good Read..

and one we should pay attention to. Thanks!