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Fed promises as much money as the banks want

Fed promises as much money as the banks want
Fed Has Auctioned Another $20B in Funds to Commercial Banks to Combat Credit Crunch

AP
December 21, 2007

The Federal Reserve, working to combat the effects of a severe credit crunch, announced Friday it had auctioned another $20 billion in funds to commercial banks at an interest rate of 4.67 percent. Fed officials pledged to continue with the auctions “for as long as necessary.”

The central bank said it had received bids for $57.7 billion worth of loans, nearly three times the amount being offered, indicating continued strong interest in the Fed’s new approach to providing money to cash-strapped banks.

It was the second of four scheduled auctions. The first auction, on Monday, of $20 billion resulted in loans being awarded at an interest rate of 4.65 percent. There were 93 bidders seeking $63.6 billion at the first auction and 73 at the second.

Two more auctions will occur in early January. In a statement Friday, the central bank said it would continue with further auctions “for as long as necessary to address elevated pressures in short-term funding markets.”

The new auction process was announced by the Fed last week in a coordinated action with central banks around the world trying to address a global credit crunch.

Federal Reserve Chairman Ben Bernanke and his colleagues decided to try the new process because their efforts to inject funds into the banking system through the Fed’s discount window, which makes direct loans to banks, had proven less successful than Fed officials had hoped.

Many banks had avoided using the Fed’s discount window out of concern that investors would see the move as an indication of underlying problems at their financial institutions.

The auction process was developed as a second way to get money into the banking system with the hopes that it would not carry the stigma of the discount window.

The Fed said Friday that it would announce on Jan. 4 the sizes of the next two auctions which will be held Jan. 14 and Jan. 28. Officials have said the Fed will evaluate the interest in the auctions after the initial four and determine whether more auctions will be scheduled.

The new auction results cover short-term loans for 35 days.

The global credit crisis has made banks reluctant to lend to each other even as the Fed has been lowering its federal funds rate, the interest that banks charge each other for overnight loans.

The rate currently stands at 4.25 percent, a full percentage point lower than it was in September when the Fed began slashing rates in the wake of a severe credit squeeze that had roiled global markets in August.

The 4.67 percent rate for the second $20 billion in funds and the 4.65 percent rate for the first auction means that banks who are using the auction process to get needed reserves are getting them at a rate slightly below the 4.75 percent rate they could get in direct loans through the discount window.

The Fed cut the federal funds rate and the discount rate by a quarter-point at its last meeting on Dec. 11, disappointing investors who had hoped for a bigger half-point reduction in the funds rate.

Many economists believe the Fed will keep cutting rates with three more quarter-point reductions expected in the funds rate at the Fed’s first three meetings of the new year.

Analysts believe that a serious slowdown in overall economic growth will force the Fed to continue cutting rates even though some Fed officials have expressed worries that the rate cuts could exacerbate inflation pressures, which have flared up again, reflecting a renewed surge in oil prices.

 

People & Power – Death of the dollar

http://www.youtube.com/watch?v=54MUm2P1jOU

http://www.youtube.com/watch?v=HdrNbhdl7uU

Growing number of Americans expect recession: poll
http://www.reuters.com/article/ousiv/idUSN1821436620071219

Gold climbs above $800 in London as dollar drops; silver gains
http://www.tehrantimes.com/index_View.asp?code=159758

Northern Rock Rescue Cost $100B
http://www.fmnn.com/WorldNews.asp?nid=52822

US Inflation Soars – Largest Rise in Producer Prices Since 1973!
http://www.marketoracle.co.uk/Article3128.html

US foreclosure filings up 68 pct in Nov.
http://news.yahoo.com/s/ap/20071219/ap_on_bi_ge/foreclosure_rates

U.S. Dollar’s Credibility Being `Stretched,’ UBS Economist Says
http://www.bloomberg.com/apps/news?pid=20601…o4&refer=home

US Federal Reserve’s subprime regulations shield Wall Street banks
http://www.wsws.org/articles/2007/dec2007/mort-d21.shtml

Economy teeters on brink, says Resler
http://www.marketwatch.com/news/mailto.a…&siteid=mktw

GAO Says Government Failed Yet Another Financial Audit
http://www.govexec.com/story_page.cf…2&dcn=todaysnews

One in Five Americans Must Borrow to Heat Homes This Winter
http://www.alternet.org/blogs/peek/71071/

Morgan Stanley secures $5bn from China
http://www.telegraph.co.uk/money/main.j….9/bcnmorgan119.xml

CNN: Ron Paul Says U.S. Going Broke
http://www.youtube.com/watch?v=lP6MtMq5cBw

ECB Offers Banks Unlimited Funds
http://news.bbc.co.uk/2/hi/business/7149329.stm

Overstock.com CEO warns of depression
http://www.youtube.com/watch?v=m-TLfmLTiqA

 



NRA Helps To Destroy The 2nd Amendment

NRA Helps To Destroy The 2nd Amendment

Lee Rogers
Rogue Government
December 20, 2007

The U.S. Senate recently approved by voice vote a draconian piece of gun control legislation that will add mentally defective people to the National Instant Criminal Background Check System. The legislation which was already approved by the U.S. House of Representatives now will get sent to George W. Bush where he will likely sign the bill into law. The bill was proposed in response to the Virginia Tech rampage killing in which 32 people were killed by a deranged individual with a history of psychotropic drug use. The legislation will effectively disarm people who the government declares to be mentally defective. The legislation provides no exemptions for military veterans diagnosed with Post Traumatic Stress Disorder or people diagnosed with bogus metal disorders based off of junk science. People are allowed to protest their status as a government declared mental defective through a government proceeding. However, this means that individuals are guilty until proven innocent if they are caught wrongly in the system. The most disgusting part about this whole situation is the fact that the National Rifle Association (NRA) a so called pro second amendment lobbying group supported this legislation. The NRA has shown with their actions that they are actually a gun control lobby instead of a pro second amendment lobby. All gun owners who are affiliated with the NRA should choose to end their association with this fraudulent pro second amendment lobby.

Mentally ill individuals have been forbidden from owning firearms for awhile now but states lacked the funding to integrate these people into the National Instant Criminal Background Check System. This legislation provides the funding to give the government a mechanism to include mentally ill individuals into the system. Although the establishment cronies are selling this legislation as a reasonable step to keep everyone safe, it should be noted that this is a complete lie. Making it more difficult for people to own firearms does not help keep the public safe. Countries with draconian gun bans like the United Kingdom and Austrailia have seen a dramatic increase in crime as a result of their policies. The reason being, is that if you disarm the law abiding citizens the only people who will be armed will be criminals and government officials. Police can’t be everywhere to stop all crimes, therefore an individual given the right to defend themselves can take action on their own to prevent crime without intervention from the police.

The legislation does not provide exemptions for military veterans returning from the Middle East who have been diganosed with Post Traumatic Stress Disorder. As a result, military veterans could end up getting caught in this system unable to purchase a gun. The human body is not meant to sustain multiple combat tours in life threatening situations and this has given rise to the number of veterans who are being diagnosed with this disorder. Soldiers are being sent over to Iraq on third, fourth and even in some cases fifth tours which has contributed to this. What all of this means is that individuals with military experience will be less likely to obtain guns which will limit people with in-house operational experience within the military to effectively rebel against the system.

Amazingly, the U.S. Senate approved this horrific gun control legislation by voice vote. Clearly, these people are too cowardly to put their name on the record stating that they actually voted for this legislation. This is proof that the establishment hates the freedoms provided to the people by the Constitution and are willing to do whatever it takes to destroy them. The Congress should be talking about eliminating the National Instant Criminal Background Check System, not passing legislation making it more powerful.

Even more ridiculous is that the NRA actually supported this legislation. What sort of pro second amendment lobby is the NRA if they openly support legislation that will give the government additional powers as to who can and cannot own a firearm? What sort of pro second amendment lobby is the NRA if they openly support legislation that will give the government powers to maintain a list of people saying they are guilty of being a mental defective forcing people to prove their innocence? Amazingly, opposition to the bill was removed after they agreed to allow people to challenge their mental defective status if they find themselves on a list. Considering the ineffective and bureaucratic mess the Federal government is, it will no doubt take a considerable amount of money and time to remove your name from this government list of mental defectives if you happen to find your name on the list. New disorders and illnesses are continually being invented based off of junk science which by fiat is expanding the number of people who are being given the mental defective label. It is hard to believe that the NRA thinks that this bill represents common sense when it is anything but.

In the Soviet Union the Communists used psychiatrists to label political opponents and anti-establishment intellectuals as mentally ill in order to lock them up in mental institutions. When the state starts labeling people as mental defectives in order to enfringe upon people’s rights, that opens up pandora’s box. What’s frightening about this is that the definition of a mental defective appears to be entirely vague. The government could at one point take the Soviet Union philosophy of labeling political opponents with a mental illness because they disagree with the government’s policies.

This legislation also opens up the door for the Bureau of Alcohol Tobacco, Firearms and Explosives which in the past decade has grown substantially in size. The ATF will be the agency used by the government to enforce the insane policies set forth in this legislation. With these additional policies, they will no doubt use the additional personnel and resources that they now have at their disposal.

There is no question that without the NRA’s support this legislation would not have passed. The NRA has now proven themselves without question to be a pro gun control lobby and an enemy of the second amendment. The legislation which has now been approved in the U.S. House of Representatives and the U.S. Senate will now be sent to George W. Bush where he will likely sign the legislation into law. The supreme court is also set to make a historic ruling on the second amendment pertaining to the lower court ruling which overturned the Washington DC gun ban. Considering what happened here with this legislation, we may unfortunately see the supreme court rule against the second amendment as well. The second amendment is being shredded into a million pieces and it is time people start getting mad at these criminal traitors in Congress for continuing their agenda of destroying the Bill of Rights.

How Many More Will Die in ‘Gun-Free’ Zones Before the Media Start Asking Why?
http://mydiscountstation.com/blog/?p=207

Gun Owners Group Condemns “Treacherous” Passage Of Anti-Second Amendment Legislation
http://infowars.net/articles/december2007/211207Zelman.htm

Gun Owners Get Stabbed In The Back — Veterans Disarmament Act on its way to the President
http://www.gunowners.org/a122007.htm

Gun Owners of America Summary of Gun Control
http://www.freemarketnews.com/WorldNews.asp?nid=52811

Congress Slams Second Amendment
http://afp.google.com/art…R3u4k7KDnXmHNXPzo-Q