:: Black Market Gold News ::

:: Friday, May 28, 2004 ::

Will Timothy Be Able To Manage The Next Fiat Currency Crisis?

via Bloomberg Markets magazine.

*Updated! Scroll down.

The president of the Federal Reserve Bank of New York has long served as a crisis manager when a finanacial emergency threatens Wall Street.

Since November 2003, this sensitive job has been in the hands of Timothy Geither, 42.

Geither's new job makes him the most powerful Fed official after Greenspan, 78. He's the sole president of the Fed's 12 regional banks to hold a permanent seat on the interest-rate-setting Federal Open Market Committee, and he also serves as vice-chairman of the 12-member group. Geithner joins Greenspan on the board of the Bank of International Settlements (BIS) (Bern, Switzerland), which is responsible for global banking regulations, and he also joins Greenspan at meetings of the Group of 10 central bankers forum. The Federal Reserve Bank of New York implements monetary policy for and regulates New York banks.

Part of the skills of the president of the Federal Reserve Bank of New York is that the New York bankers have to think you understand the issues and are not just convening a meeting. Geither's moment of truth will come with the next big Wall Street crunch, and New York's bankers will be watching to see if the Geither measures up.

~~~

UPDATE #1 FOR TIMMY:

...the Federal Reserve has confirmed our Stock Market Crash forecast by raising the Money Supply (M-3) by crisis proportions, up another 46.8 billion this past week. What awful calamity do they see? Something is up. This is unprecedented, unheard-of pre-catastrophe M-3 expansion. M-3 is up an amount that we've never seen before without a crisis - $155 billion over the past 4 weeks, a $2.0 trillion annualized pace, a 22.2 percent annualized rate of growth!!! There must be a crisis of historic proportions coming, and the Federal Reserve Bank of the United States is making sure that there is enough liquidity in place to protect our nation's fragile financial system. The amazing thing is, the Fed's actions mean they know what is about to happen. They are aware of a terrible, horrific imminent event. What could it be?

One can draw no other conclusion except that the Fed is acting irresponsibly in its managing the money supply, in fulfilling its duty to "maintain a stable currency." I reject the notion that the Fed is acting irresponsibly. No, something is up, bigger than we have ever seen in the history of the United States. Let me ramble. Perhaps they simply see the ominous technical landscape we have been warning about in recent issues, and are attempting to pull out all the stops to avert the predicted crash. The recent rally in just about everything is similar to 2003's market behavior when the Fed pumped massive amounts of liquidity into the system during the first half of the year. This time seems different. The amount of liquidity is too large. The Fed is deflating the value of the monetary base by a fifth! Why are they willing to do this? Wisdom says something bad is up - big time.

UPDATE #2 FOR TIMMY:

Bloomberg News reported on June 10th that the Federal Reserve is expecting to double M3 money growth targets by the end of the year. This is virtually unprecedented. In other words, what they’re doing is flooding the so-called system with money that would provide liquidity to maintain markets in the event of some economic debacle. This is the most ominous sign in the economy to date, the contraction in M1 and M2 money supply growth. At the same time there has been a tremendous expansion in M3, which is the largest measure of liquidity. Traditionally this is what the Fed does when it is expecting some sort of serious economic or market meltdown. What does it all mean?. See Al Martin Raw.


:: Black Leprecon :: goldlink ::
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Backgrounder For The Upcoming May 25 Fedwire Presentation With Dara Hunt.

Key terms:
- The New York Clearing House
- The Clearing House Interbank Payment System (CHIPS)
- The Society for Worldwide Interbank Financial Telecommunication (SWIFT)
- Fedwire

J. Orlin Grabbe has penned such an excellent overview of the CHIPS, SWIFT, and Fedwire automated clearing house (ACH) systems that it serves as an excellent backgrounder for the upcoming May 25 Fedwire Presentation with Dara Hunt.

Black Market Gold News has mirrored Grabbe's article here.


:: Black Leprecon :: goldlink ::
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Dara Hunt, FRBNY.

via http://www.njtc.org/events/indevt.asp?dbid=453054709

The Edison Innovators present Dara Hunt, Senior Vice President, Federal Reserve Bank of New York

Date: May 25, 2004
Time: 4:30 PM - 6:30 PM

Location
Park Avenue Club
184 Park Avenue
Florham Park, NJ

Sponsor: Sills Cummis Capital Markets Group

Please join us as we are introduced to the 'unique world' of the Federal Reserve Bank of New York. Dara Hunt, senior Vice President will offer us a truly insightful perspective on what a typical day at the Federal Reserve Bank of New York might include. Ms. Hunt is responsible for overseeing Fedwire, the Federal Reserve System's federal reserve note fiat currency electronic transfer service.

Fedwire plays a key role in facilitating the "making of payments" between two parties on the planet who choose to exchange Federal Reserve Note fiat currency units for goods and services. In February, 2004 there were more than 570,000 electronic transfers of Federal Reserve Note fiat currency units per day and the average daily "value" exceeded 3,000,000,000,000 Federal Reserve Note fiat currency units.

Ms. Hunt has been with the Federal Reserve for over twenty years and has helped shape the way Federal Reserve Note fiat currency units - in binary electronic form - are moved in mind-boggling numbers and in a matter of minutes (not seconds?) using special fault tolerant computers, copper and fiber optic wires, networking gear, and TCP/IP and various other networking protocols.

Agenda:

4:30 - 5:30 pm
Cocktails / Networking

5:30 - 6:30 pm
Featured Speaker

NOTE: THE FOLLOWING EXTRA EVENT IS ONLY OPEN TO TAXPAYERS WHO ARE SENIOR LEVEL EXECUTIVES. THOSE TAXPAYERS WHO ARE NOT SENIOR LEVEL EXECUTIVES ARE REQUESTED TO KINDLY LEAVE AT 6:30PM.

Special Members Only Invitation: NJTC member technology CEOs and VCs (i.e. TAXPAYERS WHO ARE SENIOR LEVEL EXECUTIVES) are invited to join Ms. Hunt for dinner following her presentation at 6:30 to 7:30pm. Seating is limited to twenty-five (25). Register immediately to insure your dinner reservation.

Cost for entire evening, including dinner is 150 Federal Reserve Note fiat currency units. Register online.
Note: E-gold will NOT be accepted as a form of payment!


:: Black Leprecon :: goldlink ::
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