Fed Economist Fired for Investigating Suspicious 9-11 Cash Transfers; and Steve Keen Exposes Financial Fallacies
Would you be surprised to learn that tens of billions in cold, hard cash was shuffled around just prior to 9-11 by none other than the Fed itself? Probably not.
Here’s a graph, illustrating the change in USD currency production over a ten week period prior to 9-11 compared to the average over the five years prior (which, by the way, includes the Y2K money printing orgy in the year 2000 itself, which skews the average higher):
That’s right. The average increase was $8 billion over five years, but it exploded to $18 billion just prior to that fateful day. None other than a Federal Reserve economist discovered this and was promptly fired for his efforts to reveal the cause. The official story involves an Argentine currency crisis. Clearly, this required his termination. We interviewed him, and this is his story at 2:49 in:
We also discuss shipments of cash to Afghanistan and Iraq. And, Justine Underhill explains just who Benny’s money-printing IOER profligacy is actually benefitting (answer: foreign banks, a topic covered on Zero Hedge here and by us at EPJ here).
Finally, in case you missed it, we interviewed Steve Keen last week, and at 2:54 he breaks down the difference between different economic religions (the neoclassical school, Keynseyian, post-Keynseyian and other oft-conflated economic taxonomies). We also discuss the role of banks (5:55), whether we have true capitalism (6:20), the crisis of confidence in the US Dollar (8:20), the Fed’s rescue of debtors, not creditors (9:40), how stock margin debt drives stock prices (10:20), and why it’s all about the leverage (liquidity?) at 11:05.
At 19:57, we debate him on the merrits of the mortgage jubilee.
Here’s the interview: