Saturday, October 16, 2010

Letters Sent to the Federal Reserve

Please take a look at this:

Maybe you don't like this being known but at least one reporter dared put it in print.

Now that it is becoming even more clear that the Federal Reserve is manipulating the free markets, causing people to lose even more money for short-sellers like myself and the next step is for all those who paid too much for stocks at these high levels to lose.

Where was the Fed when it comes to maintaining fair prices in the housing market some years ago? It cared not to worry and then the Chairman says there was nothing to worry about? Why the stock market almost double from 2009? I guess we all know the answer now. The Federal Reserve is playing dirty.


Please let me know if my OPINION as stated below and shared with the public is a fair assessment. Please contact me if you disagree with any of it. I've been asking the Federal Reserve for comment but as long as none is provided some of what I say is assumed. I hope you understand. I hope at some point in time that the FOMC will finally understand that I am here to help this world more than any of those at the Fed making $200K/year and whom are meddling where it ought not be.

"Federal reserve wants people to be irresponsible with money and buy what is NOT needed to stimulate profit for the rich. People need to spend less and borrow less if we are to have a stable economy but the Fed Chairman doesn't like this idea. A replacement of the Fed Chairman will not come fast enough.

If a stable economy was desired the Federal Reserve would not be pushing for growth all the time. We could fix our employment problem by lowering taxes through cutting the size of government along with the compensation of the government employees and then lowering the legal workweek to enable more to have a job.

So what if the GDP falls. It will increase slowly upward from a lower reset number is all. Why the Federal Reserve Chairman wants to superheat the economy all the time can only be explained by knowing who he really represents - the wealth divide is at a record high now and he will be making it even wider with his personal unfounded policies.

The Federal Reserve is trying with all the funny money it has to create asset bubble to inspire people to follow a herd mentality. The stock market is rigged more than ever with the Federal Reserve behind it. This alone should make investors more suspect of the financial system.

We have real inflation, especially seen in food. But amazing as it is, the Federal Reserve discounts this and does not want to consider the inflation over the last ten years. The Chairman insists inflation is not high enough! That is a statement that will go into history books. With the right management of the money supply we could have a zero inflation economy but apparently that is too tough of a concept as perhaps that was not learned in college."

[along with some other verbiage, I showed the Federal Reserve what I posted on the internet on a message board]
"Everyone, please go to the Federal Reserve website and send a message on it to urge to not pump up the stock market that is not reflect the true economy.
The Federal Reserve plans to take $0.5 Trillion of your tax dollars to waste on chasing after a bad debt and will do most all of you no good at all but will certainly help the wealthiest.

Can you believe that with all the home price inflation and food price inflation over the past 10 years that the Chairman of the Federal Open Market Committee claims that inflation is not high enough?

If you look at the inflation data that was put out a couple days ago, it purposely excludes food. And why? The excuse is that food prices are "volatile" I think you all know why it is removed and it's because the Federal Reserve has a motivation of creating a greater divide between the rich and poor by forcing more inflation on us. The dollar will be weakened purposely and yet our government is claiming foul play in regards to China having a weak currency. So do you see some hypocrisy?
Amazing isn't it? We need deflation, though mitigated of course, to unwind the excesses but just like in 2001, the Federal Reserve opted to not allow for a correction and instead pushed for unsustainable growth. The policies are flawed and unless the Federal Reserve gets smothered with complaints, more damage will be done to this economy and country."


I need to contact Dr. Hoenig without going through this web page. PLEASE!

I need to send him the real cures to the economic problems so he can help influence the rest at the Fed to then pressure Congress to fix it. The Fed was too late in raising interest rates years ago in fear of spooking the stock market and now rates are now too low for too long yet again. This country needs fixing, not the stock market given an unlawful boost.

I believe he is the only hope in the Fed that can help steer away actions that have already proved detrimental.

The market dynamics of the stock market has drastically changed by the Fed getting involved where it is not warranted according to its mandate. Stock prices are so high already and so making an asset bubble is not prudent. And besides, there are people rightfully short selling the market that are getting destroyed.

Rise interest rates modestly now, please, to account for the inflation over the past 10 years! I can't believe some of the people at the Fed making $200K per year can't figure out what to do and what not to do! Most of what needs to happen is outside of the Fed's ability but is on Congress but they lack vision. Mr. Hoenig could be the voice of reason to suggest to Congress to institute a lower legal workweek, cut the size and compensation of government employees and fine corporations who use foreign labor, not to mention we need to really remove the felons who crossed the border unlawfully. In time, limiting the number of homes owned per individual will also help tremendously to lower the cost of living and compress the wealth divide. I do know what I am talking about.


The following is what I am posting today on the web. I know you Board Members will find something factual about it yet want to hurt the American people by choosing bad decisions to rescue the rich yet again:

This job crisis adds another reason why the stock market should crash. The bad employment news early Friday morning before the opening bell sent futures low but apparently the Fed then manipulated that with buying of S&P500 futures to destroy the market dynamics. The Fed is mowing over short-sellers who know this economy is terrible and is setting up people who are buying into this overpriced market to lose lots of money when it falls.

You call this a good policy? Write to the Federal Reserve. They have a form you can fill and send to them online. Urge them to stop meddling in the stock market. They also do not want to help the many families and individuals in wanting affordable housing by them trying hard to maintain overly high prices. I urge you to tell the Federal Reserve to allow home prices to fall so we can get stability where buyers could afford homes. At present, especially on the East and West coasts, the median home price divided by the median salary range from about 6 to 10, clearly 2 to 3 times higher than the standard affordability factor of median home price to median salary of a factor of 3.

We can not get a recovery until the cost of living gets lowered. Your food prices have gone so high in recent years and just yesterday corn, wheat, and soybean prices surged 6% in anticipation the Federal Reserve will be throwing more band-aid money into the system that will benefit the banks yet again. These food commodities are a full 2 times higher than in year 2000 but the Fed likes to tell you all that there is no inflation, purposely ignoring the inflation over the past ten years that they do not want to rectify!

The Federal Reserve has to stop but it requires all of you to put pressure on them. Please, for the sake of this country, take the 5 minutes to go to their web site and send your thoughts.

****You should read my new stock market system plan so that manipulation could no longer happen. The Fed wouldn't even be able to manipulate it!

10-8-2010 #3
Why must the Fed cause havoc in the financial system by preventing normal supply and demand with homes and stocks? Following the mandate, prices should be stabilized t some fair value. Housing is far from fair values in most places and got that way by the Fed not acting as it should much sooner. But why keep prices too high? And why make an asset bubble in the stock market? Let the market do its own thing but when TOO LOW, then activate your tools, please.

"The United States, sad to say, is a bust. However, you have the Fed propping up stocks and killing short-sellers who invested based on prices being too high in this terrible economy.

The Fed is showing the people that the game is rigged, no matter if the prices are going up. When they want, and it will happen, they will make the prices go down so the wealthy buddies can get back in it and draw more fools to go for the ride and keep making money over and over again.

We have employment problems, housing problems, debt problems, and more.

This market is primed to crash but may take an act of God with all the funny money the Fed has."

Why wouldn't the Fed Chairman announce to the world:

Here ye, here ye! Listen up folks! Beginning September 1, everyone can pile into the US stock market and make 15% on their money in just a matter of weeks. I will be using the money of the people, and even create some and pump up the markets. Zero-risk. No fair playing field here, I will dictate how the markets will go. Never mind about how high valuations get. Never mind falling profits or lessening consumer spending or even declining GDP. Do not even worry that the debt of this country exceeds the GDP. And furthermore do not be concerned about the world governments who are also in severe debt crisis. If the market begin to fall, my plunge protection team will aggressively keep buying to drive markets up in a flash. Just buy the SPY and you will be given free money. FREE! Totally free. Zero risk."



Some dated further back that I have on my present hard drive (if there was not a cost related to the Freedom of Information Act to get a copy of all my older letters sent to the Fed I would do so to post here as well - I may have copied some by writing also to my email as a means of keeping records):

I tried helping you guys more than half a year ago. I hope it's well understood now that to keep growth at a rate much higher than the population growth can never go on forever. The interest rates needed to go up in the late 90's and then after that period was lost, they needed to be ramped up much faster after 9/11 but growth trumped inflation as usual. The inflation was not seen so readily a few years ago, but one had to know that with home prices at a terribly high ratio compared to salaries was to encounter a rough time and yet nothing was done about it in any meaningful way.

I provided the FOMC some salient ideas. At first I was thinking you guys should pay me for my services but felt even though you guys are paid so much that our country needs REAL THINKING.

Having interest rates higher would strengthen the dollar to bring down inflation and would get people to SAVE money, when most policies are made to encourage spending.

How about making yourselves useful by strongly encouraging Bush to cut federal worker salaries and pensions as they make 2 times the private sector and it makes no sense to have the public servants making more than those who employ them. Additionally there'd be no federal funding to states unless they also drastically cut their salaries as well. It is well known that state and local government salaries are 30% higher than those in the private sector and enjoy 60% more in fringe benefits. The pensions need to be cut as well, immediately to save this nation. I estimate $200-300 Billion would be saved per year by doing this alone [my estimates were too low, it'd actually be about 2 times that as I later did my calculations with better data - eliminating 20% of all government workers except the quasi Federal Post Office workers and cutting pensions and salaries an average of 50% to be more in-line with the public sector, even noting if some fall under the private sector it shouldn't matter for if one does not like the job they can leave and surely many will want the job for the benefits are great - less work and great job security - on a yearly basis over $800 Billion would be saved directly and perhaps $1.2 Trillion if you count lessening the unfunded liabilities regarding benefits].

Additionally, since we have only 2 million agricultural workers in this country, half of which are illegal aliens, 1/4 of which are recently naturalized citizens and the remaining 1/4 ordinary citizens, it'd make sense to utilize high school and college kids to do the work and so we need to adopt a policy addressing such. There is no need to have so many from another country in here. We can do the work and it'd help us MORE. Only the richest would get hurt by having higher wages for such workers. The salaries would have to go up to encourage American workers and that would more than be offset by lowered housing costs by virtue of less illegals occupying housing. I hope this is understood.

Hate me all you want, but I feel the need to say what I did. I hope that egos in this staff won't take my words as being offensive. Not enough is being done and many areas are not being addressed.

I'd say more but this is enough from me right now. I'd like to see some real action from the FOMC. Money is power and drives everything so whatever Ben says can have great ramifications.

2-13-2008 #3
Where is the surprise rate hike? Surely the FOMC works bi-directionally and not uni-directionally. Price stabilization cannot be effected by a predominant one-sided policy.

Good news, stock market up. Where is the surprise rate hike? The FOMC is acting one-sided and instead of stabilizing prices, it'd rather have people LOSE money, yes, LOSE money.

When people buy into an overheated market with inflationary prices for goods AND stock prices, people lose money, either immediately for higher prices and in the near term for purchasing inflated stocks. If the FOMC actually BALANCED economic factors, it would RAISE RATES FOR EXACTLY THE OPPOSITE REASONS FOR WHICH IT LOWERS RATES, EVEN IF IT MEANS MAKING RATE DECISIONS AHEAD OF SCHEDULED MEETINGS.

Well, when is the FOMC going to get it right?

Please write back and tell me EXPLICITLY why the FOMC refuses to do the exact same process (in opposing magnitude) when inflationary pressures are at hand as it does when there are signs of a recession?

I really want to know. Please, I am not asking for anything confidential. I want the straight facts. I'll contact Congress to pressure the FOMC if there is a refusal to reply with the simple sought request.

2-13-2008 #2
Time for a surprise 0.75% raise hike since stock markets up on terrific sales report, contrary to no news for the surprise rate cut in January. I hope the FOMC actually wants stability in prices as opposed to only wanting the stock market to go up.

Gas sales are up 23% from last year (using January retail report sales figures). Real inflation with no raising of rates? Seems preposterous. Why create an unstable economy by focusing so much on the stock market? We have an overvalued stock market which is unstable. Stocks need to fall further to make for a stable economy wherein much more fair prices would be at hand so the downside risk would be minimized.

I know I should be in one of the positions but of course I don't have the paper credentials. Please act judiciously.

I don't see why the FOMC can't act with fairness unless it is pressured by some person(s) unduly.

2-13-2008 #1
I thought I'd never write the FOMC again, but when I see a lack of logic or hypocrisy, it highly disturbs me and I then champion for righteousness.

Well retail sales figures are up 0.3% for January. Of course the pundits want to give the people misinformation by using a headline stating that people went to shopping malls and car dealerships to make it happen, yet the figure is ex-autos!

We all know the FOMC tries to prop up the stock market to make for MORE INSTABILITY!

Just like the stock exchanges closing the market when stocks plunge too much, but not the exact same way it stocks went up.

Please, you must know stock p/e ratios are much higher than historic levels and that lead to people LOSING money. If stocks were always at fair value, hardly a person would ever lose money.

People lose money in stocks when they GO UP! Yes, think about it deeper. When they go up higher than commensurate with earnings, then fall once it is realized the stocks got pumped up too high, those who bought at the top LOSE. If the markets were actually stable and much lower than right this moment and from that point onward made smaller incremental gains with time, that would be STABLE and most everyone would win.

Why not raise interest rates 3/4 of one percent right this very moment on the seemingly good news?

There wasn't any immediate news to make the surprise 3/4 of a percent lowering in rates a few weeks ago. Let's see the FOMC operate according to what is claimed.

Don't be one-sided, please.

Please, you must be aware of the total approximate $50T in debt, with the $9T national debt (that everyone here is responsible for even though government has gotten out of control, a good deal imparted by compensation at 60% greater than private sector pay with over-staffing).

People on fixed income need higher interest rates to combat inflation yet lowering the interest rate will just keep hurting the RESPONSIBLE people and creating an ever larger problem of others over leveraging themselves.

It's too bad the housing market went so high with the inevitable dip and the stock market surged too much since 2001 from Greenspan lowering the interest rates too low. What was created was more instability.

To treat our country, we need some pain, sooner rather than later as what is being created by catering to those who are over-leveraged is an even greater problem that will not be able to be fixed without some future radical intervention.

Americans consume too much and I'd like to hear the FOMC clearly announce that, along with the high government worker compensation so we can begin to correct these problems. You have the voice, I do not, so I have to rely on you to begin the change. Unfortunately, it appears as though our economy in the last 50 years was largely about consumerism and that helped innovation to a degree, but it cannot be sustained. The outsourcing and nearly $1 Trillion yearly trade deficit is crushing America as well.

Please, I urge you to not lower the interest rate, but actually raise it back .25 percent and sit on that for at least 6 months.