Helping Homeowners In Michigan
Archive for February 7th, 2011
Bernanke: As Long As Wages Aren't Rising, Who Cares About Prices?
February 7th, 2011 | 
Author:
We have this gem of an article today from Bloomberg:
“Headline inflation is beginning to have a greater influence on monetary policy, but not yet at the Fed,” said Crescenzi, who helps manage $1.2 trillion at Pimco in Newport Beach, California, as executive vice president. The central bank “remains anchored or hinged to the core rate,” which excludes food and energy costs.
So, Mr. Bernanke is purposely only considering ‘core’ inflation when judging the overall inflation rate. So, the soaring prices in your energy costs to drive your car and heat your house don’t count. Also not considered are your rapidly increasing food prices. I’m sure for you and I it’s no problem to forego heat and food, right? These are apparently, discretionary items to Mr. Bernanke.
The article goes on to specify what would cause Mr. Bernanke to become concerned about inflation:
“The dominant driver” of core inflation “will still be wage inflation.”
High U.S. unemployment will keep salaries in check, limiting the biggest influence on broader prices, Crescenzi said. Bernanke’s strategy of focusing monetary policy on the core rate contrasts with European Central Bank President Jean- Claude Trichet and Bank of England Governor Mervyn King. They are signaling growing discomfort with prices, prompting investors to anticipate faster interest-rate increases in the euro area and U.K.
Uh huh. Essentially, the only thing that will concern the Federal Reserve would be if wages started to rise. Yes, the one thing that might actually relieve a little of the massive financial stress the American people are experiencing would signal a serious problem to Mr. Bernake. It appears that our friends over in Europe have made loud enough objections to this insane and evil policy to cause their Central Banks to at least take note and acknowledge that price inflation in essentials is becoming alarming and concerning.
However, here in the US, this article makes it pretty clear: Ben Bernanke and the Federal Reserve think rising prices, especially in items necessary for survival are a-okay — no problem! Rising wages? Forget it. That will elicit immediate and swift action by the Federal Reserve to stop that in its tracks. They purposely want to keep your wages low and the prices of necessities going up!
Considering wages in the United States have been stagnant at best for the past decade and falling on average 30-40% over the past three years, while core inflation (you know, the necessities Bernanke doesn’t even consider) is running +8-10%, this is clearly a 50% reduction on buying-power. FIFTY PERCENT. Let that sink in.
US monetary policy is robbing you blind and destroying not just you and your family, but your family generations into the future. And why are they doing this? Same reason we’ve been talking about now for 3 years: to hide the insolvency of all the big TARP banks. You know, the same ones that are fraudulently foreclosing on millions of homes. You’d think that Americans would at least be as angry as their European counterparts by now. I guess all that protesting might conflict with American Idol.
Posted in Banks, Ben Bernanke, Core CPI, Corruption, Debt, Economic Crisis, Economy, Federal Reserve, Financial System, Food Prices, Fraud, Government, Monetary Policy, Money, Personal Income, Price Inflation | 
Comments Closed
Counties Engaged In Tax Fraud?
Last spring, Morris filed suit against the Fulton County Board of Tax Assessors, alleging the county inflated values in scores of neighborhoods by using foreclosures seizures as comparable sales. The seizures, termed credit-bid sales, represent not money changing hands, but unpaid mortgages when a bank takes over a house. He also says appraisers are disregarding valid sales and arbitrarily setting neighborhoods’ average prices.
These “credit-bid” sales are frauds. They should not be permitted in the first place, and are a big part of the scam that is going on with bank balance sheets.
Here’s how it works:
You lose your house to foreclosure. You owe $300,000 on the house at the time, but the only reasonable comparables in your area have sold for $150,000. You either have lost your job or walked off, it doesn’t really matter in this instance.
The bank puts the property up for auction. But it refuses to take less than the balance owed, because doing so causes an immediate mark-to-market on the property and hits their balance sheet. So it “bids” the entire outstanding balance – in this case, $300,000.
The bank obviously gets the house back. It shouldn’t be able to bid at all, as this is not an “arms length” transaction, but the counties don’t care. A bid is a bid, even if its a sham bid. The problem is that no money changes hands, because the actual holder of the note did the bidding (the proper way to do this, incidentally, is to set a reserve price and refuse to sell at less.)
The county folks have been counting this sham transaction as a “sale” for tax purposes. The banks have been counting this sham transaction for balance sheet valuation purposes. The county residents have been getting royally screwed, as the actual sales that subsequently take place are being ignored as comparables and thus the correct tax base against which property taxes are set.
This is yet another example of the perversity in allowing shams and scams in our financial system and how it screws the common man. You can be entirely innocent of anything in this case – you never overextended yourself, you bought the house in the 1990s before it all went nuts, you didn’t play HELOC ATM games, and yet your property tax bill is several times what it should be based on actual comparable sales.
How long will this sort of screwing continue before the people rise en-masse and say ENOUGH DAMNIT!
Posted in Banks, Corruption, Debt, Economic Crisis, Economy, Financial System, Fraud, Government, Money, mortgage defaults, Municipal Bonds, Municipalities |
Comments Closed
proudly supports:
Bill Still For President
for Congress
Michigan 11th District
By Bill Still
There is only one answer for the world economic situation; monetary reform.
1. No More National Debt
2. No More Fractional Lending
PDF PowerPoint Congressional Patriots Federal Reserve Balance Sheet Paulson's Lies Bernanke's Lies FedUpUSA Archive Mathematics of Failure Media Kit Door Hanger Corruption Flier Bank Flier Made In America A list of products and services made right here in the USA. Choosing to buy American made products preserves and creates American jobs.