so 12 federal reserve districts are created, each with its own fed reserve headquarters district bank which is owned technically by his private commercial banks and then aboard public interest served by a board in washington d.c., today the board of governors to oversee the system and to harmonize its operation. in the early days the individual federal reserve district thanks for looking to the board to harmonize their interests. they could act somewhat autonomously and has even made iran twice in a battle within the fad to bring more power from the federal reserve district thanks to the board in d.c. but that's a different story, a later story. a lot of this information told very where in history, but the federal reserve from alan not dirt to many others. so the federal reserve is a relatively new institution and the reserve district banks are finding their way. the new europe bank is shocking for position itself. more power because of where it's located. that ran counter to what the framers of the federal reserve act were hoping for, but reality being what it is with the financial m

was created passed by congress fed reserve act so we didn't need income tax before the federal reserve and with the federal reserve we do is this just a coincidence. and then this debt based monetary system where we borrow all currency into existence and promise to pay it back with interest means that we have to work in the future and pay taxes just to pay the interest on the currency that's in circulation today the prosperity we're enjoying today is this a for a minute in sleighs moment and do you think this is moral and if it is a form of enslavement and you think that it's moral then you should stay where you're at if you don't quit and close the federal reserve the very get go final word for ben bernanke yeah you got it you got to introduce a new tax if we're going to pay for all that deficit spending i really appreciate you being on the show mike maloney it's always very enlightening to talk to you mike maloney is author and founder of gold silver dot com thanks so much. thank you . all right i didn't get a chance to do your feedback all week last week because we were all vancouve

it is the federal reserve system one of the most interesting saying about the federal reserve created on jekyll island off the coast of georgia back in 1910 a small group gathered to draft the federal reserve act. the if anything is the federal reserve bill was sold to the american people as a piece of legislation to control the bankers. they are the epitome of the great power centers they were busy writing the bill to control them. >> host: who are they? >> guest: is editor aldridge that was not a banker but a politician spearheading the political side. >> but also the of father-in-law to john rockefeller. >> he was tied close to the industrial complex. probably the most important political figure short of the president will send. they represented the dynasty of jpmorgan, rockefeller, and had connections to a rothschild in england macs and paul warburg were there with connections to his brother from germany and the netherlands. it was a group representing international finance. these are the epitome. they do there would be a move to control banking at congress to pass the law. instea

the federal reserve is a relatively new institution, and the reserve district banks are finding their way. the new york city bank is fighting for position, got more power because of where it's located. that kind of ran counter to what the framers of the federal reserve act hoped for, but reality what it is with all the financial markets in new york, that was bond to happen. well, back to edison. now, edison starts studying this complex, layering it, looking at it, realizing it's very complicated, and understanding that to get any practice call support -- practical support for major change, he's not able to cast gold out. he thinks gold and gold backed money is a mistake, but he also realizes you've got all of the bids and international community running on gold. you can't wake up one day and say, regime change, we're going to something different. his attempt is to draft on a plan to help farmers to stabilize their incomes, and hope that through time it grows evolutionarily and becomes -- pushes gold out, so rather than throw gold overboard, he's going to draft on other commodities to

what does the federal reserve do? fiscal policy is something that affects their lives in concrete ways. the decisions are being made about the long-term future of social security, for example. who will pay, who will benefit? that has a big effect on kids' futures. those are the kind of things that could interest them. some raise the question about europe. that is also something in the news and i know that people are interested in understanding what is going on there. these are complex issues and a complete analysis will be tough to put into a class in but there are many elements and aspect that you can use to try to give a better sense of what is happening in these situations. i think going forward, there are many things you can look at from macro and micro economic. at the micro level, issues of pollution control and perhaps global warming interests students. what are the economics of that? what arethe economics of the demographics of our society, getting older. what are the implications of that for our economy and o

as an international reserve on the more and more and trying to trade directly and are and as a currencies even desire that the u.s. dollar and even the euro and sterling for them at us there seem to be going in the direction of. in some form or by themselves and in this regard actually i would like to show one chart that they're seeing every investor actually everybody generally should be having a look at what it has been quite a lot and that's a ratings projection a hypothetical ratings projection that the rating agency standard and poor's made in march two thousand and five that that's quite a while back and at that point they actually projected that all of the major western countries not just greece you know i don't know why we always talk about agrees all the time doesn't matter if greece for god's sake falls. of the of the side of the earth i mean it's just a tiny tip of the iceberg but actually it's france the u.s. germany and the u.k. that standard and poor's already back in two thousand and five projected as a very possibly heading to junk status on default and now you're magine s

but they actually drafted the poor reserve act on jekyll island in 1910. it took that much time to promote it and get it through congress. >> henry davidson, senior partner. assistant secretary of the treasury, president of national city bank of new york. partner representing the rothschilds in europe. they represented essentially one-fourth of the entire wealth of the world. >> the entire world. an incredible statement. that is not my appraisal, but that was the opinion of the journalist at the time who was writing about these people. not in connection with the federal reserve, but prominent bankers and they talked about the jekyll island group, for example, and then these bankers in particular. and the investment houses. but they said these men represented directly to the power that they held in their own hands and indirectly to the money that was concentrated in the investment firms, the insurance companies and the banking companies, put it altogether. one-fourth of the wealth of the entire world. that concentration of wealth is only increasing since th

finally, the budget stabilization reserve, similar to the rainy day reserve in terms of when it is available, is also growing. up to $45 million in the first year. now, to provide a brief overview to you about how we balance the city's budget this year and next. as you will recall, the joint report projected $170 million a shortfall. subsequently, there were some additional costs that were not assumed. things like a loss of certain public health revenues, which increased the deficit that we were balancing around. on the solution side, this first chart shows you the revenue and fund balance solutions we have included. a little over 140 million in each year. we have split the current year fund balance equally over the next few years. we have assumed that the growth in the hotel path accrued to the general fund. we have also been fortunate in advocacy of the state level related to realignment, receiving an increased allocation from public safety realignment. finally, we have some one time revenues included in the budget. $90 million for the first year contributed to balancing the budget. on the

and others try to change the composition of the reserves i think you all. some elite obviously going to see moves away from the dollar but i do want to emphasize an important point which is the dollar plays an outsized role relative to the size of its economy but if you look at currencies around the world one of the primary determinants of the use of that currency is the size of its economy and so if china continues to grow in asia it continues to grow in the dollar i mean in the u.s. as a size of the world economy declines relative to others that is in itself is going to drag down the dollar but again it's a question of whether people decide to continue to take a dollar for its role besides simply economic transactions and martin if i can ask you i mean it's very interesting when we heard from washington from mark here i mean how do you think it will change the internet international financial institutions because if you have the biggest economy it should have at least one of the most important currencies and we're not even close there though china by reco

dollar as the world's reserve currency will slowly lose its attractiveness that it your national for crosstalk r.t. . ok more now about to go back to you in hong kong or. where is this in china's playbook here i mean do they want to the their currency to be is just as important as the dollar at some point is it challenging the dollar or is it just want to be part of the game just a bigger part of a bigger part of the proportion of currency that is being used in the world. yeah of course they want to increase the influence of the name be. clear because vis a vis the currency influence also comes political influence to go together and of course the u.s. has been using the willingness of other countries to accept the dollar. as a way of living beyond their means just by printed money so if other countries accept your currency as a reserve currency then for for some time you can just print and don't have to work that hard so that's a great advantage to any country to have but it was mentioned just before it's also true that you always have to look at relatively rich currency globally it'

i reserve the balance of my time. the speaker pro tempore: the gentleman reserves. the gentlelady from california. ms. eshoo: mr. speaker, i yield four minutes to myself, or what time i might consume. the speaker pro tempore: the gentlelady is recognized for four minutes. ms. eshoo: mr. speaker, i'm very pleased to join with all of my colleagues. this is an unusual happening on the floor and i hope there are lots of people tuned in from c-span listening and watching. because it is one of the few times that we've come together in a true, bipartisan, 100% bipartisan, way and i want to pay tribute to the gentlewoman from california, representative bono macfor her leadership on this and bono mac for her leadership on this and i'm pleased to join her and all the members of the energy and commerce committee on h.con.res. 127. as i said, this is bipartisan and it's bicamerale -- bicameral and demonstrates the bipartisan commitment of the congress to preserve the open structure and multistake holder approach that's been -- that has guided the internet over the past two deca

convincing talk from ben bernanke today that the federal reserve is ready to act to boost the economy. >> susie: i'm susie gharib. investors around the globe welcome the fed chairman's speech with a spirited rally. >> tom: planes, trains and automobiles. 33 million americans are heading out for the holiday. the travel outlook for labor day and beyond. >> susie: that and more tonight on n.b.r.! >> susie: ben bernanke made a strong case today that the u.s. economy needs more stimulus and he's ready to give it another dose to boost grth. his message was clear and delivered with conviction. investors around the world had been waiting eagerly to hear the fed chairman's speech in jackson hole wyoming and stocks in the u.s. rallied in reaction. here are the highlights: bernanke said even though the economy has benefited from fed policies over the past few years. the outlook is still quote "far from satisfactory." he described the high unemployment rate a grave concern. he believes the fed should continue using non-traditional policieso spurrowth. and bernanke concluded by saying the fed will

a state reserve, and for the first time, we put in rate stabilization reserve to anticipate your water and sewer rate increases that all of us will have to face. the city is looking forward at key investment areas, and we are making sure we are being responsible for the future. i want to thank the partners that have been involved. our own staff, the clerk, the budget analyst, k. howard and their amazing staff, had a special shot out to my aid. if you can join me in a round of applause for them. they are truly amazing people and if you don't know them, you want to. how to say thank you, and for the mayor, i know you're going to give hence to us, but we should get to this year for the two-year budget. >> the cost of the second pen is in reserve. >> ok. >> free and. >> that's it. what's next? >> there are kids and families ever were. it is really an extraordinary playground. it has got a little something for everyone. it is aesthetically billion. it is completely accessible. you can see how excited people are for this playground. it is very special. >> on opening day in the brand- new hel

we currently have $144 million in the program management reserve that can cover these overruns. a large portion of the forecasted cost increases are associated with the peninsula pipeline seismic upgrade project, which i have reported to you. we have all large forecasted increase in the habitat program. on the local program side, we are forecasting a $21.8 million underrun, which represents an improvement of 20 million in additional savings from the previous quarter. the regional program is still forecasted to be completed by the approved completion date of july 2016 and on the local program, we are forecasting 2.3 month delay over the approved completion date of mid-2015. these forecasts do not take into account some of the recent challenges we have encountered at the calaveras dam project. this is the cost trend chart that i shared with you every quarter. the forecasted program cost shown in blue still trend much lower than the total program budget, which is shown in red. the program management reserve balance of 144 million is the same as it was the previous quarter, but that

stocks hit fresh three- month highs as investors grow more confident the federal reserve will soon take action to help the economy. >> susie: i'm susie gharib. freddie mac and profits, two things that haven't gone together in a long time. we look at the mortgage giant's unexpected gains. >> tom: also tonight, a study of a major new drug for alzheimer's is stopped. the cost and challenges for finding treatments for this disease. >> susie: that and more tonight on "n.b.r." >> susie: a three-peat on wall street today. the major stock averages rose for the third day in a row on investor hopes that europe is going to get its act together and central bankers will take action to fix the region's financial crisis. the dow rose 51 points; the nasdaq added almost 26, closing above the 3,000 level; and the s&p also crossed a key level, 1,400, up seven points. traders like jonathan corpina think the market will continue its slow and steady climb >> i am bullish because i don't really think there is going to be a significant indicator that's going to cause a sell- signal in this market right now. th

the budget does, and a couple of cases, use reserves as a funding source. first, the mayor does propose in the budget to withdraw the maximum allowable amount from our rainy day fund for the school district. that is 25% of the remaining balance in the fund. that is 6.3 million in fy12-13. the budget also spends available balances in their rec and parks savings incentive desert, -- reserve. secondly, as you just talked about, the budget spent the available balance in the available savings and incentives fund in both fiscal years on one time projects. as ms. howard noted, the budget does, while it is drawing on some reserves, is growing others. the general fund reserve is scheduled, per the board adopted a set policy, to grow to $32.2 million in 12-13, off $4.7 million in 13-14. the growth in the property transfer tax, which i mentioned earlier, which is above the rolling five-year policy adjusted average, a portion of the growth that is up deposited to the stabilization reserve. if the transportation tax comes to pass, a portion of that comes off the peak an

gold reserve that letter acknowledging secret cold. it's involving the federal reserve was dated in september two thousand and nine that's pretty contemporaneous yes and before we get into how it works exactly do you i do want to ask why would the fed want to do that's why it why why would they be involved in the gold market and why does anybody sitting there need to care that maybe isn't invested in gold governments have been involved in the gold market for a long time more and. in recent decades it's because they have concluded that gold is a competitive currency that is a currency that competes with their currencies and more important is a determinant a primary determinant of interest rates in the value of government bonds there is much academic literature on this subject some of it was written by lawrence summers who was then the economics professor at harvard went on to become assistant treasury secretary and treasury secretary of the united states lawrence summers wrote a paper explaining how the gold price is the determinant of

stocks ended mixed after the federal reserve's statement and trading glitches. the s&p 500 traded mostly in positive territory before the federal reserve's latest assessment of the economy. when that statement was released, stocks sold off. the s&p 500 dropped almost six points in two minutes. after paring back that loss, the index fell into the closing ll, enng lower by third of one percent. trading volume on the big board spiked over the trading problems with knight trading we just mentioned. big board volume topped one billion shares. it was 1.7 billion on the nasdaq. the sector losses were led by utility stocks, falling 0.7% as a group, the industrial sector dropped 0.6%, and consumer discretionary was off by 0.5%. california utility edison international led that sector losers. while earnings were better than forecast, the electric power producer continues having ouble restructuring the debt of its wholesale power business, threatening to put that unit into bankruptcy if it can't rework its debts, or sell it. shares fell 2.7%, down to a five week low. earlie

should a president obama released oil in the strategic reserve?nes standing by in washington. i do want to start with you, peter, talk about the white house at this point and the fact they're still somewhat hedging their bets if you will, kind of being cagey, that is the best word. >> the reason this is on the table because of the gulf coast 20% of total u.s. oil production and 7% of natural gas output, the governin governor says isaac disrupted 70% of oil reduction of 72% of gas production. refineries down $900,00 900,000s per day. talking about tapping the strategic petroleum reserve and putting out a statement saying we stand ready to call upon the international energy agency to take appropriate action to ensure the market has fully and timely supplied the white house only sang at this point the option of tapping it remains on the table. cheryl: i want to bring in coral in the studio with me. and oil outlooks and ceo founder, what do you make of all this? do you think there is justification, or is this purely political discussion we're having?