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Rumor Of Fed Activation Of ECB Swap Lines
Developing, but not surprising. Shit happens when your central bank drinking buddies are all broke. Issue is per Grayson amendment Bernanke needs to get Geithner's public approval to do this. Has Bernanke broken the law to bail out Europe? Or does the Fed have perpetual immunity from law compliance? There is nothing in the most recent week's H.4.1 on liquidity swaps. We will see if this changes next Thursday.
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What happened with last weeks rumor of the high ranking Greek about to resign and the supposed Russian bailout?
Sunday afternoon is chin wag time for Greece's $120b+
Timmy seems to have already approved the swap lines while Obama was "chatting" with Mrs Merkel.
Banana Ben and Turbo Tax Tim both know there is a presidental pardon when necessary, along with the presidental metal of freedom and Congressional gold (tungsten) medal, and endless bribes, so why stop a good thing.
"Rumor Of Fed Activation Of ECB Swap Lines"
Don't bogart that joint my friend. Can a mere mortal like me get in on this sweet action. I mean, since you're passing out free samples, could you pass it over to me?
http://www.youtube.com/watch?v=EvGJvzwKqg0
Janet Yellen's white house interview for her new post as the fed's vice chair has just been released.. Wherein she clearly states her vice preferences for her new position. A WWW fan fo sho
http://www.youtube.com/watch?v=MI1UBiWsm14
Meanwhile, The rumored back door exodus by her predecessor may have just been confirmed by a separate background breefing..
http://www.youtube.com/watch?v=bd2B6SjMh_w
LOL
"Janet Yellen's white house interview for her new post as the fed's vice chair has just been released.."
Actually I was thinking more along the lines of this classic Sesame Street duet. BTW, the blue/purple guy is Bernanke. See the resemblance?
Advance to 2:30 and follow along.
"Sing what I sing, sing after me, be my echo, if you can be."
http://www.youtube.com/watch?v=hsCOTsE4atQ&feature=fvw
At what point can financial moves become acts of treason? Granted we've already shot OURSELVES in the foot, at this point, doesn't taxpayer money deserve national security status?
"At what point can financial moves become acts of treason?"
That point was reached and the line was crossed in October 2008. No treason was declared or indictments issued, so the bad guys are now working hard on Act II.
Martial Law will not allow it.
Or does the Fed have perpetual immunity from law compliance?
Sounds like Ben is saying he's tired...
http://www.youtube.com/watch?v=cQU0_PHUB2E
Arthur Jensen: You have meddled with the primal forces of nature, Mr. Beale, and I won't have it. You are an old man who thinks in terms of nations and peoples. There are no nations; there are no peoples. There are no Russians. There are no Arabs. There is no third world. There is no west. There is only one holistic system of systems; one vast interwoven, interacting, multivariate multinational dominion of dollars. Petrodollars, electrodollars, reichmarks, rubles, rin, pounds and shekels. It is the international system of currency that determines the totality of life on this planet......
One of my favorite movies. One of my favorite movie scenes. Thanks for this. :-)
Reference please for us dummies.
Network! 1976 Best Picture. William Holden, Faye Dunaway and Peter Finch (won the Oscar posthumously for his protrayal as Howard Beale). The quote is Ned Beatty's character explaining reality to Howard Beale. It is a classic. Paddy Cheyefsky glimpsed the future of FOX TV. Of all the greatness of the film, perhaps the best performance was from Beatrice Straight, as William Holden's wife; she won best supporting actress. Here's a link to the vid.
http://www.youtube.com/watch?v=3BVqIjKyJh0
Thanks.
It sounded familiar but I couldn't place it. Time to pull my "Network" DVD off the shelf and spin it up for a refresher. I should know this by heart.
Great. Just great. These greedy Euro sons of bitches went commercial fishing in the middle of The Perfect Storm and Benron wants us to brave 100 foot waves to bail them out. Damn I wish I could get face to face with this psychopath so I could cuss him out and bash his head in.
A swapline, which will make ALL the difference. What a bunch of teenagers. Dara O'something said, "great for a fuck, but nothing going on upstairs"
And how'd that Discount Window access work for Lehman?
Leave it to the Greeks to say; "My word is my bonds."
In the fine old Greek tradition, aka; "Up Yours."
Keep squirting water on that oil rig fire!
Ahhhhh....Mr. Beale...
http://www.youtube.com/watch?v=Xu-nhba0Bck
Another shadow bank run? Interested to see if this rumor pans out.
Why should anyone care?!??
It's a FX swap line. There's a dollar liquidity crunch in progress as the EU delevers.
If we force them to bid for dollars on the open market, it will drive the DXY through the roof and that will blow all muffuggin shit up
Yep. Exactly.
I'm of the belief now that they are using the Pavlovian response of using Greek bailout news to pump (or dump) the market. This is going on the 4th month now. If the market is down, it's because of Greece (Risk Off). If the market is up, it's usually because of Greece (Risk On)
FILL IN THE BERNANKE:
http://williambanzai7.blogspot.com/2010/04/fill-in-bernanke-bill-specime...
makes sense.
large story in FT about EU banks being shut out of international lending markets.
Many European banks have become shut out of the international lending markets because of continuing concerns over Greece, sparking fears that some could collapse as they run out of cash.
http://www.ft.com/cms/s/0/8e5fc480-53c5-11df-aba0-00144feab49a.html
The natural follow on. No wonder all the chatter about the potential of covered bonds being a stable funding source has quieted down in recent weeks...
And the kind is... F. NAKED !
I'm gonna shed years of joy when they finally handcuff that bald ratface pussy.
Bernanke: "Law!!?? What fucking law!!???
Bernanke, "L'Etat c'est moi."
You forgot the most important aspect of this quote. "Frederic Bastait is long gone... as are his novel concepts concerning the law". All we need to know about the process of judicial exclusion and those who assume the mantel of its leadership.
http://www.constitution.org/law/bastiat.htm
why, John Law, for sure
Who is ready to test some support levels? Bernanke, you ready?
GREEK PACKAGE: THE TIMETABLE TILL MAY 19 Below is a possible timetable of key events until May 19, when Greece has to pay back 8.5 billion euros in maturing debt. FRIDAY, APRIL 30 Euro zone finance ministers are to hold a teleconference on Greece on Friday, Germany and France said. European Commission, European Central Bank and International Monetary Fund experts may conclude talks in Athens with Greek authorities on a detailed reform and fiscal austerity package until 2012. But the talks could also end on Saturday or even on Sunday. Once they are finished reports on the results would be sent to euro zone capitals. SATURDAY, MAY 1 Key French ministers, including Economy Minister Christine Lagarde, meet President Nicolas Sarkozy on May 1 at 0800 GMT to discuss an aid plan for Greece and the financial market situation. Strike in Greece. Shops and stores will be closed. Disruptions to public transport. SUNDAY, MAY 2 Euro zone finance ministers are to hold a teleconference on the Greek reform and loan package, which, according to German parliamentarians briefed by IMF chief Dominique Strauss-Kahn, could be worth 120-130 billion euros. Like on April 11, it is possible that Eurogroup Chairman Jean-Claude Juncker and Economic and Monetary Affairs Commissioner Olli Rehn could hold a briefing after the Eurogroup talks to announce details of the package -- how much money Greece can count on and from whom until 2012 and in exchange for what reforms. MONDAY, MAY 3 German government meets, to discuss Greece and give its approval to a draft law on providing loans to Greece. The government will then try to push the law through the lower house of the German parliament by Friday, May 7. Once the details of the 2010-2012 loan package are known, all euro zone countries can push forward with legislation to be able to pay out the money by May 19 if and when needed. MONDAY-FRIDAY, MAY 3-7 Greek parliament is likely to debate and vote on any additional austerity measures that are to be announced under the bailout package. The government also plans to submit to parliament a pension reform law, but the exact date or provisions of law are not known. WEDNESDAY, MAY 5 Greece to hold a general 24-hour strike in the private and public sectors in protest against austerity measures. Teachers to hold a 48-hour strike on May 4-5. European Commission to publish its forecasts for GDP, unemployment, inflation, current account as well as debt and deficit for 27 members of the European Union for 2010-2011 -- including forecasts for the debt and deficit of Greece, Portugal, Spain, Ireland and Italy. FRIDAY, MAY 7 Upper house of German parliament to vote on the law allowing for loans to Greece. Once the law is passed by the upper house, in which the ruling coalition has majority, the money can be paid out. MONDAY, MAY 10 European Union President said on April 28 in Tokyo that he would call a meeting of euro zone leaders around May 10 to activate the Greek package. WEDNESDAY, MAY 12 European Commission to make a proposal on how to strengthen European Union budget rules and economic surveillance in the euro zone to avoid crises like the Greek one in the future. The Commission is also to propose a permanent crisis resolution mechanism that would allow the euro zone to deal with such problems in the future, should they arise after all. WEDNESDAY, MAY 19 Greece has to pay back 8.5 billion euros in maturing debt -- it has to have the euro zone and IMF loans by then.
There's still a bright side to all of this.
You don't have to kill trees anymore to print money. Plus, the more you create, the more energy efficient it is. It takes as much energy to print $1 trillion as it takes to print a paltry $1 billion when all you use are stray electrons as ink. Instead of perpetually slamming the Fed for contributing to energy conservation, you should praise its Energy Star rating. They care, for Christ's sake! Passing cash footballs, ala Iraq a few years ago, is old school and so last decade. Besides, electro cash is safe cash. You can be sure the wrong people will not get hold of it and put it to improper uses. Now, let's see a Patriotic Dow 36000 and watch the Frenchies eat shit thanks to another fine USA bailout of Europe. Props to Ben.
Meanwhile, Japan just recorded another month of deflation, and almost 40% of its households are spending more than they earn.
Japan Times Online:
http://search.japantimes.co.jp/cgi-bin/nn20100430a5.html
New motto for USA: We suck less than you
If only wages and incomes are declining while prices of goods and commodities keeps on skyrocketing, I'm not sure we can call that deflation.
Repeat after me: DEFLATION (in a fiat money regime) IS NONSENSE.
If only wages and incomes are declining while prices of goods and commodities keeps on skyrocketing, I'm not sure we can call that deflation.
Repeat after me: DEFLATION (in a fiat money regime) IS NONSENSE.
********************************Think your missing something in your formula--
That being-the destruction of credit-which is-deflation--
Look at a 5 year chart of USO, that is not a chart of "skyrocketing" inflation. The 5 year chart of the $CRB index confirms this.
The 10 year treasury peaked at 4% for this recovery cycle and is now declining back towards the 2% level. Unless the 10 year breaks out above 4.3%, it continues to signal no inflation. At the 2% level, it would be negative in real terms, thus confirming deflation.
M3 money supply is contracting at an annual rate of - 4%
Credit continues to contract as bank reserves steadily accumulate, currently $1.2 Trillion sitting idle on bank balance sheets, reflecting no credit demand in the economy. The economy is in fact working off existing debt, ( a slow tedious process ), not taking on more debt.
Housing ? you know the story there. Again zero net demand as the shadow inventory sits idle on the books of the banks and GSE's.
Is the chart of Gold indicating Inflation ? My answer to that is no, Gold is actually reflecting counterparty risk. It's a fear trade, not an inflation trade. In other words, remove the fear of counterparty risk and the price of Gold will collapse.
by depression
on Fri, 04/30/2010 - 15:24
#326175
******************************
Nailed it--
So many goldbugs-- buy gold for inflation expectations--
Gold does hold its value-in inflation-but does piss poor-compared to other assets--
You correctly describe why gold is doing well-that being risk-
2001 Gold and the 30 year bond-both reacted to "something"-
That "something" was credit risk--
Gold and the 30 yr--could both see the hyper-inflation of credit money--
Today--both can see the risk of default--
There's 2 things in life-you cannot fool--
Gold and the 30yr--in other words--"the market"
No offense, but all those numbers mean jack-crap to me.
Insurance going up.
Taxes going up.
Gasoline going up.
Food going up.
Utilities going up.
Unfortunately, those are the things that I consume daily; therefore, I am experiencing inflation regardless of what the government propaganda indicates.
That's not inflation my friend.
That's just your "standard of living" going down.
Janice - no offense taken at all, I certainly share your frustration.
Rising prices is not the definition of monetary (economic) inflation. Inflation is simply the expansion of credit and money in the economy. As I pointed out in my first comment, neither of which is expanding at this time, in fact they both continue to contract. This phenomenon is called a credit bubble collapse, and as of right now it is unabated, in fact (imho) it is entering a new acceleration phase with the epicenter of the crisis in the euro zone.
In response to some of the cost increases your experiencing:
Taxes - are going up as a result of increased spending combined with severe revenue shortfalls at all levels of government (federal, state and local). Rising taxes, in this case, is not due to inflation. If government cut spending and balance their respective budgets they could also cut taxes.
Gasoline - 15 to 20% of the cost of gasoline is a set of excise taxes hidden in the price. The federal excise tax on gasoline is 18.4 cents per gallon, and then you have to add in state tax which can run as high as 31 cents per gallon in some states, and finally local gasoline tax. Remove all the gasoline taxes and the cost at the pump would drop by as much as 20%.
Utilities - Get out your utility bill and separate out the cost of fuel from all the other charges and fee's listed, then compare that with your fuel charge from years past. I think what you will find is the "other non-fuel stuff" (= taxes) is what increased by the largest percentage. You can do the same with your phone bill for example. Your power bill will be reset (much higher) by Obama's new Cap&Tax energy policy/legislation. This is a new multi-trillion dollar consumption tax on energy in order to fund excessive spending in other areas of the government's annual budget. Again this is not inflation, it's taxation. Simple soution, cut federal spending and they do not need the new energy tax.
Is the rising cost of health care due to inflation or other factors, such as defensive medicine and lawsuits. Anything the government takes over drives prices higher not lower. So the cost of health care and health insurance can be expected to accelerate higher.
A potential new source of price increases in everything we purchase is the VAT tax idea being floated around Washington.
The progressive Keynsian recovery plan to raise taxes and borrow our way out of this severe economic crisis will fail.
Best case we end up like Japan and stumble (or crawl) our way through a lost decade or two. Given the severity of the situation however, I think that scenario is highly optimistic.
WORRIED GERMAN BANKS, INDUSTRY PUSHED TO BUY GREEK BONDS Deutsche Bank AG Chief Executive Josef Ackermann is helping coordinate efforts by Germany's private sector to support a rescue package for Greece, a senior banking source told Reuters. The consortium has already pledged to contribute between 1 billion euros ($1.3 billion) and 2 billion towards the effort, which could involve buying Greek government debt, although no formal agreement has been struck, the source said on Friday. Ackermann, chairman of the Institute of International Finance bank lobby, got involved in helping to assemble the consortium after a conversation with Finance Minister Wolfgang Schaeuble, the person said. Schaeuble had called Ackermann to ask whether the banking and financial industry could do something to help with the rescue of Greece, according to two sources. Ackermann has helped gather a commitment from "a handful of companies", including banks, insurers and one industrial company, one source said without naming them. The hope is that once the markets see the German private sector is taking the Greek rescue seriously, other companies may follow, helping to stabilise markets, this source added. A second source familiar with the matter confirmed the plan but said its exact implementation was still under discussion. A third banking source close to officials and banks said he believed the idea of getting German banks to buy Greek bonds would be an intelligent solution with a good chance of success. This person said talks with banks would take place over the weekend in time for a cabinet meeting on Monday. SECOND BIGGEST EXPOSURE German banks have the second-biggest exposure to Greece after France. Although Greece is one of the euro zone's smallest members, its fiscal crisis has roiled markets and threatened the stability of the euro. Action from the private sector will also make it easier for Schaeuble to sell a sceptical German public on spending taxpayer funds to bail out Greece, the source said. In a previous effort to help stabilise Greece's stretched finances, Ackermann met Greek Prime Minister George Papandreou and Finance Minister George Papaconstantinou in Athens in February. Schaeuble said aid for Greece could involve banks. "Can banks participate? This is a free society, no one is prevented from doing things they want to do voluntarily," Schaeuble told a conference in Berlin. The Association of German Banks said on Thursday contagion to other highly indebted euro area countries was to be expected if the euro zone failed to act quickly and decisively to tackle the situation in Greece. "The affected countries would have to face further discounts on their government bonds and increasingly difficult access to capital markets," said the association, of which Deutsche Bank, Commerzbank and other big lenders are members. "It is in the interest of the whole euro zone -and also of Germany- that we don't allow it go that far," it added.
Source?
$100 Billion a week flowing out of Domestic MM Funds
Turbo Timmay better hurry.
It will ALL be over sometime this year, and I for one will celebrate the demise of this corrupt to the core "modern civilization".
Oh....let it be 2 years down the line (2012)...Nostradamus and all the Mayans will be able to rest well in their graves
It's always on Friday!
Two points of note:
1. The FED and those who subscribe to post-Keynesian monetary and fiscal thinking do NOT believe that public debt is problematic. The way they see it, adding a trillion dollars to the IMF of ECB reserve account at the FED has absolutely no impact upon such things as incipient cost inflation, interest rates, etc.
2. We live in a world in which FINANCIAL COLONIALISM is the norm. We, the ordinary sods, are granted the illusion of such things as free-markets, freedom of wealth accumulation, etc. However, when push comes to shove, the globe's fiat-based fiscal strings are pulled by a relatively few actors. These people are in charge. We play with their fiat money at their pleasure.
Reading this thread must have been like sitting at Madam Defarge's elbow watching the guillotine whacking off French heads and the 1790's....bloody funny!
does that mean pound is fucked?
-
Sounds like a confidence builder to me.