The Real World News and Commentary – August 1, 2012

The Real World News & Commentary –
What the Mainstream Media Didn’t Show You Today

Created by Roy Perlmutter August 1 2012

“And the fact that the US government goes to great lengths to hide the illicit dealings of the Federal Reserve, which through its monetary tentacles, has prima facie control over not just US policy but also over sovereign governments, is an unprecedented failure in the checks and balances system that the founding fathers had planned when they created the United States of America. Yet saddest is that the United States no longer pursues strategic goals that are in the best interest of the majority of its citizens, but merely manipulates other, less powerful nations into a servile existence that only provides gain to a very limited subset of the American financial oligarchy. It is time for the Fed’s unprecedented control over affairs, both global and domestic, to end.”

“For years, auditing the Federal Reserve was a fringe idea taken up only by Ron Paul.”


There is no greater threat to the security and prosperity of the United States today than the out-of-control, secretive Federal Reserve.

“…in mortgages, at least, Wall Street played a role in pushing Libor over another rate benchmark — one that some bankers say was better for borrowers.”

“Rather than break the rules of the club, Bernanke allowed this fraud to continue, violating his responsibilities as Fed chair.”

“And these things that the central banks do, the bottom line is they don’t stimulate the economy. They keep asset prices inflated.”

Going For The Gold As Governments Destroy Currencies

We have not seen a major fiat currency collapse in recent decades, though there are those in Germany who remember the misery it brings. The speed at which the euro weakens could be very surprising indeed.

“Clearly it’s the week for central banks. The market is waiting to see what the Fed does tomorrow. There is also anticipation as to what action the ECB is going take this week as well. The market will certainly test the European’s resolve. Draghi came out and claimed that they would do whatever it took to save the euro.”,_US_%26_Gold_Ahead_Of_Crucial_Fed_%26_ECB_Meetings.html

Mario Draghi has promised the moon. The European Central Bank’s council had better deliver on his pledge this week. If it does not, the crisis will surely escalate out of control in August or soon after.

“Draghi was then vice chairman and managing director of Goldman Sachs International and a member of the firm-wide management committee (2002–2005)…a member of the Board of Directors of the Bank for International Settlements.”

Epstein described the BIS as running practically the whole world financially in virtual contempt of elected governments and in near-complete secrecy.

“All available means” now joins Draghi’s “Whatever it takes” as key phrases propping up the skeptical markets. But the markets expect a very large rabbit to be conjured out of the ECB’s hat this week. We don’t know what it will look like but we do know what it won’t be.


“The Dallas Fed general activity index plunged its most in over seven years…”

“Alan S. Blinder, a professor of economics at Princeton who was a Fed governor under Mr. Greenspan, said that the central bank should incorporate an assessment of less-likely risks into its decision-making.

But he added that there was little need for such nuances now. The Fed shouldn’t really be worrying about the finer points of risk management,” he said.

It should be hellbent on getting the unemployment rate down.”

“Gross, whose Pacific Investment Management Co has $1.82 trillion in assets, took particular issue with the noted economist Jeremy Siegel, who popularized the notion that a portfolio of stocks can return on average 6.6 percent over the long haul.

“The Siegel constant of 6.6 percent real appreciation, therefore, is an historical freak, a mutation likely never to be seen again as far as we mortals are concerned,” he said.

The Creature From Jekyll Island (by G. Edward Griffin)

The Creature from Jekyll Island: A Second Look at the Federal Reserve [Paperback]

G. Edward Griffin Price: $15.59

“The Federal Reserve System is a legal cartel expressly designed to create riskless profits for member banks, while simultaneously turning our entire financial system into the legal and moral equivalent of a Las Vegas casino. Yeah, you might get lucky for a while, but the house will always win. Our monetary system is a pyramid scheme that only functions as long as debt is being created at an accelerating rate.”

Thomas Jefferson: