Danger: Mad Scientists Are Experimenting With Your Money

Don’t fight the Fed. That’s what they say on Wall Street. And for good reason. While technically accountable to Congress, the Federal Reserve’s monetary policy decisions do not require approval from “the president or anyone else”, as the Fed boldly states on their website.

The Fed’s culture of omnipotence is evident in former Chairman Alan Greenspan’s reply when asked about the Fed’s relationship with the president. “Quite frankly it does not matter who is president as far as the Fed is concerned. There are no other agencies that can overrule the action we take.”

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There’s Only One Way Out of a Financial Hole

It’s the 14th year of the Agora Financial Investment Symposium in which we try to take all the trends that we see playing out in the investment horizon and put them all together in one conference.

The challenge of putting together a conference like this every year is picking a theme that resonates with the many things that change year over year but tying them into a continuous story or investment thesis that makes sense.

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The Essentialist’s Glossary: Updated for the ‘Teens (N-Z)

Today, we bring you the concluding third of our Essentialist Glossary. The first two thirds can be found here: The Essentialist’s Glossary: Updated for the ‘Teens (A-F), and here The Essentialist’s Glossary: Updated for the ‘Teens (G-M), respectively.

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Ben Bernanke We Hardly Knew Ye

Just three short days until Ben Bernanke’s out and Janet Yellen’s in.

Here at The Daily Reckoning, the changing of the chair at the Eccles Building is a spectacle we take seriously. About as seriously as tonight’s State of the Union address, in fact.

So with a sentimental twinge, we tune out the daily grind and use the occasion as a springboard for the good professor’s roast. Despite years of endless mockery, odd looks, raised eyebrows and low blows, we admit we’ve formed a soft spot for “Helicopter” Ben. Deep in a small crevice of our heart of hearts. He was such an easy target… we will be sad to see him go.

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Cosmically Timeless Mogambo Monetary And Investment Wisdom

Snug and safe inside the silent and comforting Mogambo Big Boy Bunker (MBBB), I have a lot of spare time each day to work myself into a state of paranoid hysteria by thinking about the economic mess we are in.

Being a cynic of the first order (everything is corrupt and nothing can be done) and sensing imminent doom (We’re Freaking Doomed (WFD)!), it is not surprising to me that the evil Federal Reserve owns more than $3.5 trillion in Treasury debt, which is about 21 percent of ALL the nation’s $17 trillion debt.

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Alan Greenspan: Bitcoin Is a Bubble

Former Fed Chairman Alan Greenspan was asked recently on Bloomberg TV whether he thought Bitcoin, which had an 80-fold run-up this year, was a bubble. Video below:

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The Mogambo Guru’s Lifetime Income Equation

My mood is dark. I see, as usual, enemies everywhere, but have started filling my days, not with installing more defensive armaments in the Super Duper Mogambo Bunker (SDMB), but with making lists of all the people whom I blame for something, starting with the worst offender of them all, the absolutely satanic Alan Greenspan.

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Volcker: Credibility Must Not Be Frittered Away

Federal Reserve chairman Ben Bernanke just can’t catch a break. Earlier this week, Alan Greenspan disagreed with Bernanke over federal spending. A few days earlier, another predecessor, Paul Volcker, questioned the Fed’s “dual mandate” to boost employment and contain inflation.

Volcker believes the central bank should only protect the dollar.

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Greenspan: Taper Away!

Taper now! Taper with all you’ve got!

This is the message — more or less — from former Federal Reserve chairman Alan Greenspan in an interview today with CNBC.

“The sooner we come to grips with this excessive level of assets on the balance sheet of the Federal Reserve — that everybody agrees is excessive — the better… There is a general presumption that we can wait indefinitely and make judgments on when we’re going to move. I’m not sure the market will allow us to do that.”

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A Century of Money Mischief

On precisely the same weekend in November as the Republican victory parties in and around Washington, the Fed celebrated its centennial far away from its DC home at Jekyll Island, Georgia. One hundred years ago, seven US Congressmen and bankers gathered together in secret at this highly remote location to lay the political foundations for what would become, in 1913, the Federal Reserve Act. The ostensible purpose of creating the Federal Reserve was to provide for greater financial stability in the wake of the US banking panic of 1907. So how has the Fed fared in this role?

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