WHAT IS THE FED UP TO WITH THE MONEY SUPPLY? [View All]

[Clara T]

WHAT IS THE FED UP TO WITH THE MONEY SUPPLY?

Over the past two days, December 21st and 22nd, the Federal Reserve has conducted one of the largest two-day Repo injections of money into the system since back in September 2001. On Wednesday they added $18.0 billion in reserves and on the next day added another $20.0 billion. Is something high-risk going on behind the scenes here? Let us review some facts at the Fed. On November 10th, 2005, shortly after appointing Bernanke to replace Greenbackspan, the Fed mysteriously announced with little comment and no palatable justification that they will hide M-3 effective March 2006. M-3 has been the main staple of money supply measurement and transparent disclosure since the Fed was founded back in 1913. It is the key monetary aggregate that includes Fed Repo transactions, that mechanism whereby the Fed increases reserves. The date when M-3 will start being hidden also happens to be the exact month that Iran will declare economic war against the U.S. Dollar by trading its oil in Petro-Euros on its new bourse. But there is more.

If a substantial amount of oil transactions will suddenly be conducted in euros instead of Dollars, this should put pressure on the Dollar as folks exchange dollars for euros, jeopardizing the dollar’s status as the world’s reserve currency, making it more difficult to print all the dollars the Fed wants to without driving the dollar into the ground. Could the Master Planners be hiding M-3 because they anticipate they may have to monetize the Federal debt, buy our own Treasury Bonds during the coming economic attack against the Dollar? That would require a ton of new fresh money creation – too much to disclose. Could it be some folks at the top of the Fed do not have the stomach to be part of what is about to go down?

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http://www.trustprofessionals.com/f-digest/2005/2005-12-26-f.html

http://www.safehaven.com/showarticle.cfm?id=4331&pv=1