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Fed Injects Record $100 Billion Cash Into Foreign Banks Operating In The US In Past Week
Those who have been following our exclusive series of the Fed's direct bailout of European banks (here, here, here and here), and, indirectly of Europe, will not be surprised at all to learn that in the week ended February 27, or the week in which Europe went into a however brief tailspin following the shocking defeat of Bersani in the Italian elections, and an even more shocking victory by Berlusconi and Grillo, leading to a political vacuum and a hung parliament, the Fed injected a record $99 billion of excess reserves into foreign banks. As the most recent H.8 statement makes very clear, soared from $836 billion to a near-record $936 billion, or a $99.3 billion reserve "reallocation" in the form of cash - very, very fungible cash - into foreign (read European) banks in one week.
Furthermore, as we first showed, virtually all the "reserves" created by the Fed end up allocated as cash at commercial banks operating in the US: both domestically-chartered (small and large), but more importantly, foreign. And of the $1.884 trillion in very fungible cash parked in various domestic and international US banks, just half of it, or $949 billion is actually allocated to US banks. The other half, or $936 billion, is parked within, again, very fungible cash accounts of foreign (read European) banks operating in the US. This is shown in the chart below (green area is cash of foreign banks), and what is also shown is the total change in the Fed's excess reserves, which proves, once more, that the Fed continues to fund European banks with hundreds of billions in cash on a week by week basis. And what is perhaps most important, is that of the $250 billion in new reserves created under QEternity, all of it has gone to foreign (read European) banks.
It may anger American to learn that by the time the Fed is done with QEternity (if ever), all of the newly created cash will have gone to mostly European banks. Because with every passing week, whatever new reserves are created by the Fed in exchange for monetizing the US deficit, end up as cash solely at European banks: a sad reality we have seen non-stop since the advent of QE2 when US bank cash balances remained relatively flat in the ~$800 billion range, and every incremental dollar went straight to Europe.
As a reminder, we don't know how, via assorted shadow banking and other repo pathways, these banks manage to use said cash in other fungible activities. Recall that as we said, "So whether European banks will continue buying the EURUSD, or redirect their Fed-cash into purchasing the ES outright, or invest in other even riskier assets, remains unknown." It is also unknown is the Fed's reserves, reappearing as cash, and then siphoned over to European bank HoldCo via payables, is then used by, say, Italian and Spanish banks to purchase BTPs and Bonos, and give the impression that all is well. Because unlike before, keeping the EURUSD high is not as critical any more. But what is critical is to give the impression that Italian and Spanish sovereign risk is contained. And after all, let's not forget that as of January, Italian bank holdings of Italy state bonds just hit a record of EUR200 billion.
Is it possible that the Fed, in all its generosity, transferred over several hundred billion over to these same Italian banks, courtesy of the cover provided by QE, so that the same Italian banks may monetize Italian bank bonds? And the same for Spain. Any wonder then that we got news of how flyingly great Spanish and Italian bond auction were in the past week?
After all, in Europe Germany has a heart attack whenever anyone perceives the ECB as monetizing, or even greenlighting the monetization of local sovereign bonds. But Germany has never said what it thinks about the Fed, indirectly, doing the same, using Italian and Spanish banks as conduits.
Finally, while we don't know what the cash is being used for, we know that sooner or later, sometime around December 2013, when European, pardon, foreign bank holdings of US reserves, i.e., USD cash, hits well over $1.5 trillion, and when the Interest on Excess Reserves starts going up and the Fed is directly providing tens of billions in interest payment to European banks, some Americans may be angry to quite angry with that development.
But for now, everyone is blissfully unaware and even if they were, nobody cares. Why just look at the Dow Jones Industrial Average: how can one possibly allege that all is not well with the world...
Source: H.8
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So we have a run on eurodollars...again.
The ECB doesn't have enough USD foreign currency reserves to cover it (or doesn't want to) and doesn't want to draw on the ECB/Fed swap line (that'd be too obvious), so it's left for banks with heavy eurodollar exposure to buff reserves with a little asset swap with the Fed. (Aka temporally-shifted money printing, aka Tardis Bux). QE2 all over again.
You'd expect to see that eventually show up as a slow US-reserve drain for European member-banks as US domiciled USDs flowed over to become eurodollars but, if it's anything like the last few times this happened, then what you'll actually see is the Fed looking fucking stupid as the situation in Europe gets jawboned into blowing over (again) and the Fed has no way to force an unwind (because it didn't add liquidity via repos, having not yet learned its lesson), so banks suddenly find themselves over-liquid on US soil and go looking for a way to make that cash start performing again, which doesn't necessarily mean buying back US TSYs. Ramp time.
...unless Beppe Grillo actually pulls off this coup against the banksters which would destroy the euro experiment and bring in hilarious, cleansing chaos, but you and I both know damn well what happens to him if he looks like being successful.
So yeah, just bend over, spread your cheeks for Bernanke and BTFD you idiot. ( /s )
Tardis Bux...I like that.
I contemplated (re)Tardis Bux for a while. Also works.
I have said on a number of occasions that the FED is functioning as the "de facto" central bank of the world. An unelected financial entity chartered by Congress and for all intent and purpose, non accountable to said Congress for its behavior.
We have and have had for a very long time, an institution taking its orders from International Banking Interests, transferring the wealth of US citizens to those International Banking Interests.
Is there a name for such outrageous behavior?
When will the US Executive, Congressional and Judicial Branches of government step it to regulate this financial entity?
When will the US Executive, Congressional and Judicial Branches of government step it to regulate this financial entity?
NEVER.
This is a function of the US$ as the Reserve Currency
It's a function of the Fed's dual mandate of containing inflation and promoting full employment.
Somehow
I believe the word you're searching for is 'theft'.
What EU country is the easiest place to establish a skank...ermm...bank?
Skankinavia.
That's up north.
That is not a country. That is the region of the vikings. Norway, Sweden, Finland and Denmark, Maybe including a couple of Islands.
you need to look up the definition of skank. I'd say skankland is some burb here in america and their queen is named Nancy.
Northern Lights indeed.
I do not think it will take until December.
I believe things will start to come apart during, or shortly after, Obama visits Israel and tries to convince them to divide the country, stop settlement construction and get behind a Palestinian state.
The Bible is clear that those nations attempting to divide Israel will enter into his judgement.
History is replete with examples of those nations or groups that have tried and experienced their own demise.
Just my take on the matter.
Divine Wind should change the name to Divine Hot Air. What a bunch of BS. Everyone's always kissing Israel's ass because of mistranslated fairy tales from 2000 years ago.
We'll see...
You mock me for calling out historical fact on a board where half of the comments are 'f*ck Bernanke' and 'silver bitchez'?
What an idiot.
Historical fact? Are you talking about your reference of a Bible prophecy coming out of the Old Testament (a.k.a jewish Torah)...? Or did you mean "that other historical fact" about nations that try to divide Israel and end up seeing their own demise?
Did you know there was no Jewland for over 2000 years until some 65 years ago ZOG built it (and still does) on the corpses of massacred native Lebanese, Palestinians and Syrians?
At least people that shout Silver. bitchez and Fuck you Bernanke make some sense...
Ahhh. Just as I suspected, a Jew hater.
Smoked another one out of the ZH woodpile.
We'll see.....
Divind Wind:
Start producing material and stop being a distraction to the community. Take your self righteousness to business insider where trolling is king. We don't need your kind here.
MOAR on FRBNY for the ZeroHedgeMob:
http://www.zerohedge.com/contributed/2013-03-09/frbny-swap-update
We'll see.
Bible Prophecy about Israel or Judah that was not fulfilled in the past, when Israel or Judah anciently existed as a State, accordingly required the prophecy fulfillment wait almost 1900 years until Israel or Judah again became a self-governing State, which is therefore the primary historical event now fulfilled, as the prelude for other prophecies to be fulfilled in the future.
Sometimes Bible prophecy is prophesy of Good, sometimes of Evil.
That said, however, IMO, a very great amount of prophecy is wrongly interpreted, including by factions of the Government that seem to be wrongly attempting to force the world into a wrong self-fulfillment of Bible prophecy.
But men sometimes fulfill prophecy unintentionally, unknowingly, contrary to their own desires, or contrary to their own interpretation of prophecy, which fate ultimately would accord with a Calvinistic view of predestiny or fated destiny and the all-powerful sovereignty of Universal Puppetmaster of Good and Evil.
By my post-event interpretation, dated October 2001, the New Testament Book of Revelation chapter 11, written in the first century, prophesied the 9-11 attack on the NYC WTC Twin towers. Earlier chapters of Revelation have also been fulfilled in history, by my interpretation, but I have only published that interpretation by email, and unfortunately mostly ignored.
religious references make me down-arrow the comment no matter what else it contains. religion is not our common ground, reason is.
and who are you...Saaa-tan? (To be read in your best Dana Carvey voice).
Religion is a factor in the Economic World, when one religion believes it is their destiny to rule the world by their economic power.
Looks like we will bailout Europe
Will??? Have been, are, and will continue to do so. But only if Europe=European Skanks. The people of Europe are getting buggered as badly as those in the USeless and Japan.
You are bailing yourself out. If you didn't do this, Europe would possibly lean towards China. I don't trust them, but money talks. I think you have pushed Germany on the issue of the missing gold. They don't easily forget, but will keep quiet at the moment, as it is not in their interest to start the panic early. Russia and China are most likely the longer term beneficiaries of this. A brotherhood in gold I guess.
The Americans are desperately trying to keep the old order together, but, as you know, Humpty Dumpy and all the king's men!
Some day Uncle Sam will come to our door after this all blows up in their face and want what ever you have left to finance the war it creates. I wont be home that day.
You guys are focusing on the wrong thing, money.
Money is no longer important, as of Nov 2011 after MFG when the Fed and ECB decided UPON ORDERS FROM THE WESTERN GOVERNMENTS to go ahead with dollar/euro swaps in order to prevent the immediate collapse of banks.
Again, MONEY IS NO LONGER IMPORTANT. Gov bonds are no longer important.
What is important right now? Answer: Supply chains. Food chains. Energy chains.
Fed/ECB had to do swaps in order to prevent euro banks from collapses due to DERIVATIVE BET LOSSES. All that money has gone to winning counterparties who are piling up on Crude oil and Food.
http://www.independent.co.uk/news/world/politics/well-make-a-killing-out...
This is affecting the west also. Lack of Energy (crude oil) = Expensive food.
The fact that food stamps use is increasing means that food is getting scarce, slowly and unnoticeably.
This cannot continue and will not continue. We are done. QEs have nothing left to buy. QEs have bought all crude oil and all food supplies.
Answering Bruce Krasting's question, velocity is zero because there are no goods produced.
It is over. QE is over, because money has become irrelevant. THIS IS A LIQUIDITY BUBBLE. There is too too toot ootototototooo much money sloshing around.
Absolutely!
Food stamp collections should hit 50 million soon.
Due to QEs, the western world is suffering SEVERE REDUCTION OF THE ABUNDANCE OF FOOD.
We are not out of food yet, but we are getting there very unnoticeably. That's why people do not understand Weimar.
Weimar was not simply money printing, it was not. Weimar was too much money bought up all food and energy chains, all warehouses.
There were grains in warehouses, but the owners were simply keeping the stuff there without any intent of selling it, since money as a concept became irrelevant.
That is what is happening right now. Nobody really cares about money any longer. It is irrelevant. All big guys care about is storage of energy and food.
THIS IS WEIMAR IN SLOW MOTION AND IN MUCH LARGER SCALE THAN GERMANY OF THE 30S.
Without the bold formatting we would all miss the point...
So gold and silver are also irrelevant?
The reason fiat money has become irrelevant is that there is too much of it.
I don't think there's too much gold around.
Silver is a different story.
Now I see where you're coming from. You're just repeating the same thing in different ways in which we are all expecting: Hyperinflation.
Gold, silver, bitcoin, ect, will become the new de facto currencies, and hopefully these will renew the supply chains.
Hyperinflation is here, we are in hyperinflation for crude oil.
I see gold as central banks money. I have gold coins.
I do not think silver will be allowed to be money by the govs because silver is the basis of the electronics industry. No computers without silver, no iphones no TVs, for that matter, no Zerohedge without silver.
The governments will never ever ever allow silver to be money, but gold will always be 2nd degree money, TRUST being the purest form of money. Fiat money is 3rd degree money.
Gold is also used in electronics.
Silver was the basis of the British Pound currency.
It is the only thing that can replace silver, but there's not enough of it, hence money.
Silver stopped being used as money in 1935 officially. China was the last one in 1935 to phase out silver as money.
http://www.firstmajestic.com/s/SilverUses.asp
Industry can switch back to copper pcb's and tin-lead solder if silver is to be used as a currency again. It's just that RoHS prevents them from doing so. The repeal of (IMO somewhat unnecessary) RoHS standard will help in allowing silver to become currency if the demand is there.
I am sure that there are alternative metals for about half of the current industrial uses of silver.
Gold is also used in tiny amounts to create strong micro-wires for integrated circuits, the backbone of modern electronics and computing. Tiny amount, but enough to spark the demand for pcb recycing centers for gold and silver extraction.
Possible but I see no chance of that happening. The gov would be fiercely opposing it.
OK, but in a barter economy people don't really have to care about government.
I find myself skimming threads for your posts ekm - it's always compelling to read the words of someone on fire with awareness.
that you keep it straightforward and on point, makes what you write all the more persuasive.
I am quite humbled, thank you.
Food is cheap, and there's way too much of it...
People consume way too much meat and what, 20-30% of all food is wasted...
The fact that people are over-consuming too much food doesn't mean that there aren't shortages coming up ahead.
the artificially low interest rates are killing operational profits. the lack of profit will gradually kill the motivation to produce or to shelve the produce in markets.
the supply lines will break one by one and the suppliers will vanish. we have been witnessing that the quality of products are plunging, or that the packages are shrinking. the next phase would be item completely disappearing.
Absolutely. Extremely well formulated.
And that is what happened during Weimar times.
Example: Walmart's empty shelves ?
Bingo.
Jena, people are over indebted. People are eating on credit and paying interest on their debt. Any increase on food prices and gasoline prices is quite a hit on most of poeple's budgets.
http://www.latimes.com/business/money/la-fi-mo-retirement-401k-bills-201...
http://www.guardian.co.uk/business/2012/sep/19/mass-slaughter-farm-anima...
There is no shortage of RAW MATERIALS like grains, crude oil etc. What is happening, is that the SUPPLY CHAINS HAVE BEEN BROKEN, due to QEs. There's too much money, that money has lost the meaning of being money.
This money has purchased and stored RAW MATERIALS. Hence the supply chains
- from the warehouse to baker,
- from the warehouse to butcher
- from the crude storage to the refinery
HAVE BEEN BROKEN.
This is exactly what happened during Weimar times.
Why change when the original blueprint worked as well as it did? People didn't notice then and we are less aware and more distracted than ever despite plenty of evidence that we ought to be more paranoid and prepared against exactly this sort of thing?
I know people who operate on the slimmest of margins. No matter what they're told (and I don't mean to get on a "you can't awaken the slleeping" jag here), as soon as they have any extra cash they head to Disneyland. Or Vegas. This isn't often because it's a family of four on one income with the wife getting unemployment. They don't stock anything; they believe God will take care of everything, including the tenuous existing job. And they eat the worst food, are fat, careen from one health problem to the next.
A margin squeeze will kill them.
Elites refuse to lose.
Elites are the ones who get the first batch of fresh money, PRIMARY DEALERS and anybody hanging their wealth onto them.
Those are the ones who voted for Obama and are soon going to use food stamps.
It seems to me they are the majority, so it's not obama to be blamed IMO, it's them.
Every country deserves its leaders - Churchill
Jena
This one explains it for you. Just read the story, but I'd forget about the commentary.
http://www.nytimes.com/2012/10/14/opinion/sunday/the-self-destruction-of...
Thanks, ekm. Instructive.
My pleasure, Jena.
To clarify my point of view:
If you have a business and become billionaire, may God bless you and may God make you a trillionaire.
But, if you become super rich because you simply are the .............FIRST ONE TO USE FRESHLY PRINTED MONEY ...........and when you make a mistake you refuse to lose thus tweaking the law for the rest of the population to save you (like the Venetian oligarchy), then this is the problem.
This is sounding Stalin-esque and what happened to the Ukrainians. Do you mean to say someone is buying up all the raw materials and storing them and thus not moving them through the supply chain, resulting in a contrived shortage coming down the pike?
correct
Same as in 2008 with crude oil
Any inkling of who's doing the buying: Corporate, State, both?
Very much appreciate your unique insight, knowledge, and perspective on the ZH threads.
There is no difference between state and very very big corporations and primary dealers. They can't exist without state backing.
Watch the dates of the articles linked.
http://www.reuters.com/article/2011/07/29/us-lme-warehousing-idUSTRE76R3...
http://www.nola.com/business/index.ssf/2011/11/warehouse_space_in_limite...
http://m.theglobeandmail.com/globe-investor/glencore-stockpiles-zinc-tig...
http://www.independent.co.uk/news/world/politics/well-make-a-killing-out...
Nice trend development in those links.
This is like watching the tide getting sucked out, leaving a barren ocean floor. If you didn't know the signs of a tsunami, you'd be picking up treasures on that floor rather than running for the highground.
With only the oil experience from 2008, I can honestly say I would not otherwise recognize such signs that a tsunami is imminent. I would be picking up those shells.
Hyperinflation always results from a (perceived) scarcity of a needed item that then bleeds to substitutes and so on.
Are we about to see the fastest flash of inflation ever? There's a boat load sitting in M2.
We are already in hyperinflation for those commodities, hence higher input prices for business, hence comments from ADR here on Zerohedge. I strongly recommend you follow ADR, I do.
The reason hyperinflation (or SHORTAGE OF FINISHED GOODS) is not being felt accutely, is that there is bakclog of finished products already produced as well as the producers are getting squeezed slowly and slowly until they simply go bankrupt.
As far as M2, during Lehman there were about 100 trillion notional in derivatives pulverized.
I predict at least 300 trillion notional damage this time. As per BIS, there's 700 trillion notional of derivatives.
Derivative payouts and counterparty collapses will suck that money, thus deflation, bad deflation, which would happen when commodities are in hyperinflation, hence gov forced to dump commodities. Otherwise extremely dangerous STAGFLATION like in Nixon times with crude oil shock.
Correction:
I am talking about derivative money or repo money in shadow banking.
M2 money or money covered by federal insurance which is covered by CDIC here in Canada up to $100k would be a good thing.
Anything above that, would shrink IMO.
What happens when inflation starts is those with stocks of real goods and chattels(Im not talking about money) see that if they withold today tomorrow it is worth more which leads to shortages which drives up prices further. Then like a room full of loaded mouse traps with a marble thrown in amounst them, it explodes exponentially. Then comes the exhaustion phase were you have no stocks to sell at any price. every one is tapped out just because a cup of rice is unaffordable and your savings have been eaten by the Genie called Inflation. Ben Bernanke has never had the pleasure of putting that monster back in the bottle.
Exactly and this what exactly happened during the run up to 2008 with crude oil. The economy stalled in a literall way. There was not enough crude going to refineries to get the real stuff moving, so George Bush was forced to stop saving primary dealers.
It was crude oil artificial shortage that caused Bear Stearns and Lehman to collapse because George Bush was obligated by crude oil shortage to withdraw help to them and gave the order to empty the SPR which was full as well as forbid temporarily oil trading on margin.
That led to all that crude in off shore tankers be thrown into the real economy and the the unwinding of crude oil derivatives which triggered other derivatives.
It was oil at $40 for 6 months or so that causeed the economic rebound and it was QE which led to oil above $90 which caused the economic stall up until now. We are in depression.
IT ...IS...THIS....SIMPLE.
I always thought similarly that oil at that time became cheap enough to 'convert' to goods and services relative to wages to enable growth.
Take a look at these videos (total time 25 mins), as it makes me wonder if that stockpiling you're speaking of was for potential war preparations in 2008 with Iran before Bush left office. The timing of these events seems to make sense.
Meet the Woman Who Stopped War Against Iranhttp://www.veteranstoday.com/2013/02/04/iran-war-expose-what-u-s-media-d...
There is quite a large probability that the current crude oil storage is done on Obama's orders due to the inevitable attack on Iran.
Whether americans like it or not, Iran will be attacked. I am realistic, simply realistic.
Ekm I largely read these articles for the meat but then look forward to you commenting.
I am interested in what you think will happen. Does Obama send oil crashing and the stock market with it, sacrifing a dealer?
Or does it just hyperinflate away...
I am quite humbled. thank you.
Yes, I do not see any other way out of this, but 2008 repeat.
Otherwise, we are going to have real food shortages and food riots.
In Ontario there is a huge food corporation, called Loblaws. They have high end store and low end grocery stores called No Frills.
http://www.nofrills.ca/LCLOnline/store_selector.jsp;jsessionid=bH4vmxn5O...
I live 5 minutes away from a No Frills store. It's been 2 years I'm seeing BMWs and Mercedeces there. I shop there also. I have favorite pudding that I buy all the time. Many times the shelves get emptied and not get filled for 2 or 3 days, it's been 3 months already, same as Walmart's story. I love that pudding with apples slices.
Before I used to buy just a pack of 4 each time. Now I buy 3 pack of 4, just in case.
I do not think the govs think they can handle food riots in order to save 2 or 3 primary dealers. Anything is possible, but that would be lunacy.
George Bush did the right thing, let Lehman go and crapped the market by releasing the oil, and probably, probably leaving Iran's issue in Obama's hands.
Maybe crude oil (and it's derivatives) provided more "dominoes" to the collaspe, but we all know now that JPM fired the shot that killed Lehman. That is an undebatable fact at this point.
The allegory I use is:
Who is the next sacrificial lamb to be burned on JPM's altar in order to provide pleasing odor for the finance gods?
JPM is untouchable, that's the way it is. It has become one piece with US gov. If JPM goes, so does US gov.
Lieber yankees
danke für die FIAT ponzi monies
Liebe Grüße, Europa
The only thing that stops this BS is for Benanke and the Fed banksters to loose the reserve currency status.
China knows both the US and Europe are doing a fine job of printing itself into history.
Just look at the present and future obligations as well as the trade deficits and it's easy to see what exponential math shows.
I take it Dr Krugman remembers what happens to countries that go down the path of printing as a solution??
WTF Europe? I call foul, again... What's that in the last month $387 billion + $85 billion for the stock game.
Keep stacking my friends.
"This is an unprecedented opportunity for Americans to own villas on the Costa Del Sol with no down, easy financing."
Call 1-800-Bernank...When others say no, we say YES.
* Spiderman towels are limited to 1 per unit.
I think Countrywide got in on that action in the form of 1-800-Mozilo, you're his friend after all.
"Spoiler Alert: It doesn't end well"
And the director "Mad" Ben Bernanke sucks...
This just 'feels' unconstitutional. Where does the Fed's authority to lend to foreign banks come from? Anybody?
That constitutional thing is kind of retro to TPTB. Or is it TBTP? We're getting many acronyms to choose from.
Fed has the legal right to do CURRENCY SWAPS.
That's what happened in nov 2011 after MFG went shit.
FED and ECB did currency swaps to supply euro banks with dollars, so they could pay their ONGOING derivative losing bets.
That was the global bailout.
They're a "person" (because they're a private corporation) with rights to "free speech" (which is money, dont'cha know)!
But, in all seriousness, Art 1 Sec 8 in the 'necessary and proper' clause, according to McCullough v Maryland, which set the precedent for their legalized larceny.
When the Santa Claus voters hit reality, candyland games will be thrown into the air
Hitler found out: Candyland doesn't exist
At what point will of of this make MF Global solvent?
She was never one of my favorite people, but I think the entire US regulatory establishment should apologize to Martha Stewart. She did time for the piss ant "crime" of insider trading, which is not a nice thing to do, but is damn near impossible to define, much less prove.
After Paul Krugman deploys his solution.
Paul Krugman wants for [Orson Welles] space aliens to invade earth so that the government would spend money to mount a defense thereby stimulating the economy.
http://mrctv.org/node/104596
The funniest part about that is the invasion has already taken place and the lizard people are running the country. PK knows that as he is a bluebelly skink.
http://images.search.yahoo.com/search/images?_adv_prop=image&fr=yhs-att-att_001&va=blue+tailed+skink
She called them out, didn’t want to play ball. The same people will be gaging and begging for forgiveness when the barrel of a rife is lodged down their throat. It’s funny how things come full circle.. Rented political power always masterminds no commonsense, and greed.
As soon as Jon Corzine is hired to work out new bond scams.
This doesn't bother me if I get a couple of cases of hors d'age Amagnac out of the deal.
More likely to get title to a dumpster behind a Belgian waffle house or a used tire changer in Abruzzo.
European or American banks, they all the same and serve one prurpose:
MAINTAIN THE STATUS QUO. Period
A hundred billion here, a hundred billion there, next thing ya know they're talking about some real money.
I wanna be a foreign bank operating in the US. Would you allow me to?
do you have a check in hand?
I'll check the credentials GMad and you call Lord Blankfein.
<starts drawing inverted pentagram>
So the enslavement of the American peopel is not enough we need to enslave all of europe (minus the Germans- who never agree to that) and all this for the great battle to come against China....
while Putin is laughing his ass off knowing he has to just do one thing - keep the price of oil up by flaming up the middle East and in the interim buy MAX GOLD every month and wait for the war between China and the US to start.
Russia is the real winner,,,,,this is the real reason Jim Rogers wants to invest there.....
All of the Money printed by thew Fed in this Country is adding to the National Debt, but going Overseas.
The problem is that Americans will be responsible for paying back this Debt not Foreign Countries Citizens.
Bad enough bailing out our own banks but to bailout Foreign Banks and hold the American Taxpayers responsible for the money printed is wrong.
Debt bomb.
The good news is that the debt will never be paid back. The elites make off with everything of real value and the other 99% are left with nothing, but at least we will be starting off from scratch again.
The elites know the siituation is hopeless, so they are simply stealing the silver from the Titanic before heading off to their lifeboats.
Can the Fed manage the risk /tail risk out of all the markets? This goes back to the forest fire policy of the 20th century where the U.S. Forest Service thought that by preventing Forest Fires, they would never happen. Not allowing the dead under-growth to burn away and preventing fires actually resulted in some of the worst fires in the Western U.S. from the late 1980s through the early 2000s. The Central Banks in attempting to suppress the risk caused by poor business models and risky borrowing to support ill-conceived retirement plans have created an illusion of “all is well.” If something goes amiss; the markets attempt to correct, a bond auction might not go well, a political event occurs that is unfavorable, congress or a sovereign nation cannot get its house in order, the Central Banks led by the Federal Reserve fight what should be a natural outcome by propping and manipulating markets so nothing “Bad” can happen. In the Fed’s case they simply print more money, in the case of a Ponzi scheme more money is taken in from new investors to create the illusion of wealth through ficticous returns. The Fed believes that printing new money, i.e. QE is some novel new incarnation, but in reality is a twist on Ponzi original concept. In this case the Fed and other Central Banks have no more money to solve the problems, nor can they lower interest rates low enough to encourage borrowing, so they print and buy stuff that would have no buyers. Would a smart investor buy bonds of entities they knew were not solvent, bad business models, or in danger of default? Of course NOT!! Likewise, would smart people buy investments with Ponzi or Madoff who were using new investor money to pay off old investors with outsized returns? The Central Bankers provide nothing different than Ponzi schemes, for their money is not derived from real earned work or real investment returns, but generated out of thin air. The deflation resulting from this will be horrendous, just as the Forest Fires were. Risk cannot be mitigated by printing it away, and hoping a recovery occurs that allows for real returns, products, and jobs to occur. This is the same fallacy as the Ponzi scheme. The operator attempts to generate positive returns in the markets while covering up the disastrous actual returns by using new investor money (Ponzi and Madoff) or printed money (Fed and other Central Banks). Eventually an event occurs dispelling the myth of the fabricated reality and the crowded mal-investments ends in tears when he emperors (Ponzi, Madoff, Bernanke, Greenspan, Draghi, Abe, Obama, Politicians) are shown to have no clothes. The longer the grand schemes go on, the worse the end game will be; Think about Rome, The French Revolution, The Great Mississippi Land Company, The Railroads, The Panic of 1907, The Weimar Republic, The Tulip Mania, Portfolio Insurance in the late 1980s, etc. The Press and the Main Stream Media always believe “This time is different!”
Excellent post. +1
Isn't EUR/USD going in the wrong direction for this? Or is it simply improving the glide ratio?
Nobody really cares at this point. IMO any exchange rates have become irrelevant.
they're all in a race to the bottom anyway.
Shit keeps getting realler.
Reallyer?
So, if the Fed prints dollars, gives them to European Banks, who then buy Euros, which are not being printed outright (that we know of), won't there come a time when there aren't any more Euros to buy?
edit: sorry, forgot the part about the possibility that Spain, Italy may be monetizing such dollars directly (and thus printing Euros). This may actually provide the answer.
ZH'ers: I'd like us to start the ZH Bank. Offshore.
We ask to participate in this process. We also ask to buy gold from Fed at higher than their book value, to help them out with ridding themselves of that barbaric relic of tradition. Since Book Value of gold is $42.2222/oz, we'll pay $50, but no more than $100. $500/oz if they sell all of it.
I'm willing to get the ball rolling with my share of precious FRN's. Who's in?
Federal Reserve Bank
b. 1913
d. 2013
RIP
Amen!
Get it going folks!
this whole issue begs the question that is addressed here : austerity vs Stimulus of broken economies.
Cutting Spending Won't Fix Economy - Business Insider
Fed, via Zirp and QE, has chosen since 2010 the stimulus route bigtime via unlimited print and more debt.
Merkel chose to impose Austerity on southern europe around same time and then supported print in core europe when Draghi upped the Trichet trick via LTRO bigtime; (the Merkel Draghi wager), whereas UK has spun deep into austerity under Osborne.
Now all the stimulus advocates are howling "we told you so! Stimulus and govt. spend is better than austerity and govt. Cut."
ZH has always defended austerity at home but decried Merkel austeriy imposed on CLub Med AND Draghi stimulus of core to protect banks and save Euro construct, just like FED saves the USD reserve status.
So the ZH mantra has never been clear on this austerity vs stimulus debate. One cannot support austerity on one continent and decry it on the other, suffering from the same disease.
I know that behind all this is the sham curtain of Banksta Oligarchy and use of Euro and USD to impoverish the people.
But that is NOT the issue in the short term. The issue is getting the first world out of the recession/depression. That is what the whole world focusses on; not on the structural imbalances and the can kicking that pushes the crisis further down the road. It seems the MSM, the political world and the consumer, don't want to look that far down the road. They just want their lives back in the next few years...and for that the stimulus creates the illusion of return of growth.
Obammy is surfing on that wave. And MSM is lauding him and deriding Osborne and Merkel as austerity idiots.
ZH has been calling out the hypocrisy of Teutonic cries for austerity in their future colonial possessions, but has been consistently in favor of austerity at home and abroad.
and THAT is NOT a contradictory position per se??? Its all part of the same Oligarchy, its INTEGRATED and not seperate!
What gives, does ZH have different standards for teutons and "future" colonies and for americanos and "current" colonies?
As I said, ZH advocates austerity across the board...in Germany, America, Greece, and the rest of Zooropa, but it was and is particularly silly for Germany to be dictating policy to Greece, while coddling the northern Europeans with massive BIS Target2 imbalances in the hundreds of billions.
Bullshit. Zerohedge calls for .gov austerity via less intervention into capital markets so true capitalism may fix itself. We would have had a hard year in 2009, but we would be far beyond muddling along as we are now. There would have been winners and losers, but the market and natural forces would have decided and we would be better off. Instead we have trillions created out of thin air thrown at a problem that isn't going away.
SO it seams the obvious escapes you : the market belongs to the oligarchs, and the people will NEVER get it back until this market as it exists is totally revamped from top to bottom. It is THE CANCER.
All this thingie about austerity to ALLOW invisible hand of market to work is total pie in the sky!
We have to begin with CAUSE NOT EFFECT...root cause. Nationalise the banks and the money line. MAke the FED under government conttrol not Oligarchy control; as the ECB.
Austerity for you.
Businesses (especially banks) are sacred though; austerity for them would surely bring demons through portals and the end of life as we know it. Lulz.
I'm not sure moving from one centrally-planned scheme to another will bring what you want...especially when the two agree on the course to take. Perhaps a step in the right direction (if you believe that people are in control of their governments...a dubious proposition at best).
An excellent argument...if you had made it in say 1973.
Hey, you fucking beard, we are long rope here in Europe. You spoil the party!
Well I don't see you starting the party....sheep like amerikans
You are right. I spread 'the word' now and than, on msm. It's spreading, it works when several people make some wake up calls. I'm trapped. I can kill a usual suspect and read zh on sponsored wifi behind bars. But i am a coward.
Edit: i'm not a coward, but i'm not alone.
TREASON
Pure and simple.
Death or life in prison warranted.
http://www.heritage.org/constitution/content/pdf/lesson-13.pdf
(scroll down to the section on treason)
Here is some interesting Saturday reading.
Pass this link out to everyone you can now, so each soul on board KNOWS who is Killing America.
http://www.veteranstoday.com/2013/03/07/killing-america/
Happy dayz to you ALL!
The guy on the top bar of that site looks a lot like Hilter. Is he one of the 'Boys from Brazil'
Fuck off with your sicko guns and ammo site mate. Just Fuck Off
Thanks for your trolliship mate.
Bless'ed Love to you too.
Oh yes,your in a lot of deep trouble over in Europe after all your nonsense,by the way,your not getting your gold back right now but we'll help you out with lots of paper.(no telling what the paper crap will be worth in 10,20,40 years though).
Ha...Tyler you need to re-educate yourself on how the intarnational Banking system works. This article is completely BS and speculative. Grade 1 of 100.
Appears your spell check will go down later this morning.
The Jew World Order owns the printing presses, and I'm just a goy.
All Your Base Are Belong To Us
http://www.youtube.com/watch?v=qItugh-fFgg
kool
rah rah ralleeeeeeeee
The Feds can't say the didn't try to hold it together.
Hold what together? The criminal syndication? It is doing just fine, thank you very much.
The Fed et al...
The Four Horsemen of Banking (Bank of America, JP Morgan Chase, Citigroup and Wells Fargo) own the Four Horsemen of Oil (Exxon Mobil, Royal Dutch/Shell, BP and Chevron Texaco); in tandem with Deutsche Bank, BNP, Barclays and other European old money behemoths. But their monopoly over the global economy does not end at the edge of the oil patch.
According to company 10K filings to the SEC, the Four Horsemen of Banking are among the top ten stock holders of virtually every Fortune 500 corporation.[1]
So who then are the stockholders in these money center banks?
This information is guarded much more closely. My queries to bank regulatory agencies regarding stock ownership in the top 25 US bank holding companies were given Freedom of Information Act status, before being denied on “national security” grounds. This is rather ironic, since many of the bank’s stockholders reside in Europe.
One important repository for the wealth of the global oligarchy that owns these bank holding companies is US Trust Corporation – founded in 1853 and now owned by Bank of America. A recent US Trust Corporate Director and Honorary Trustee was Walter Rothschild. Other directors included Daniel Davison of JP Morgan Chase, Richard Tucker of Exxon Mobil, Daniel Roberts of Citigroup and Marshall Schwartz of Morgan Stanley. [2]
J. W. McCallister, an oil industry insider with House of Saud connections, wrote in The Grim Reaper that information he acquired from Saudi bankers cited 80% ownership of the New York Federal Reserve Bank- by far the most powerful Fed branch- by just eight families, four of which reside in the US. They are the Goldman Sachs, Rockefellers, Lehmans and Kuhn Loebs of New York; the Rothschilds of Paris and London; the Warburgs of Hamburg; the Lazards of Paris; and the Israel Moses Seifs of Rome.
CPA Thomas D. Schauf corroborates McCallister’s claims, adding that ten banks control all twelve Federal Reserve Bank branches. He names N.M. Rothschild of London, Rothschild Bank of Berlin, Warburg Bank of Hamburg, Warburg Bank of Amsterdam, Lehman Brothers of New York, Lazard Brothers of Paris, Kuhn Loeb Bank of New York, Israel Moses Seif Bank of Italy, Goldman Sachs of New York and JP Morgan Chase Bank of New York. Schauf lists William Rockefeller, Paul Warburg, Jacob Schiff and James Stillman as individuals who own large shares of the Fed. [3] The Schiffs are insiders at Kuhn Loeb. The Stillmans are Citigroup insiders, who married into the Rockefeller clan at the turn of the century.
Eustace Mullins came to the same conclusions in his book The Secrets of the Federal Reserve, in which he displays charts connecting the Fed and its member banks to the families of Rothschild, Warburg, Rockefeller and the others. [4]
The control that these banking families exert over the global economy cannot be overstated and is quite intentionally shrouded in secrecy. Their corporate media arm is quick to discredit any information exposing this private central banking cartel as “conspiracy theory”. Yet the facts remain.
http://www.globalresearch.ca/the-federal-reserve-cartel-the-eight-families/25080
Yeah, they can sure talk about shortages to scare the average lemming, but do they scream and yell out loud about the raises they are getting? Most common folks in the land are going broke fast and can not even afford to drive to the store but once a week anymore. It is easier to stay home and save what one has, then it is to go into town to spend the little monies there are.
Here is an interesting story about these criminals and how they are fluffing their own nests, while at the same time declaring shortfalls. They care not about the people who elect them, they are only concerned about their own futures. One thing is for sure, after the coming false flag event, or an attack on Iran, or even a market crash with the well planned ensuing martial law and bank holiday, the people are getting warmed up for those foreign chinese troops that plan to take over America in her purposely weakened state.
http://cnnradio.cnn.com/2013/03/08/congressional-bonuses-in-a-time-of-cuts/
Taxation without representation is not legal. Arrest Bernanke. Lock him up.
Hey there is no "legal" as long as people can get away with it. FEDs have rid the US of all relationship between laws and what is moral and/or ethical. But they are wrong because that is where true strength comes from. Credibilty in the eyes of the beholder. As for actual credible truths they may not exist but that is another post somewhere. The FEDs are rapidly losing credibility and thus they are losing the war at an ever increasing rate. That means the masses or rather those that are building credibility are becoming a stronger force against the Feds. That means the non-Feds are winning the war that the globalist/central banksters and their crooked politicians have waged. Which makes it all the more likely that the NWO is being pushed toward an ever greater false flag as they are driven to physically attack America.
Nice to clear those thoughts up before Sunday.
..."On June 4, 1963, a virtually unknown Presidential decree, Executive Order 11110, was signed with the authority to basically strip the Federal Reserve Bank of its power to loan money to the United States Federal Government at interest. With the stroke of a pen, President Kennedy declared that the privately owned Federal Reserve Bank would soon be out of business"...
http://100777.com/node/303
... so the bankers got their CIA toads to murder Kennedy.
Elect a comic, get $100 Billion the next week.
YOU
CAN'T
MAKE
THIS
SHIT
UP!
Bitcoins are looking better every day.
Ok, so what's the bottom line to all this printing? Will 2013 end very badly? A co-worker suggested if there is a crash coming to withdraw $50k (the max allowed) months in advance from your 401k and pay it back to yourself over time within 5 years at 5% interest. It can be paid back in full at any time. At least then if things go really bad you'd have some cash before the bank runs happen and/or your 401k disappears in a puff of smoke.
He did this one year ago, paid it back in 3 months and is now considering it again before the end of the year. This can only be done once in a 12 month period.
Many have predicted 2013 to be the beginning of very bad times, but now with all this printing going it to prop up the facade, it appears the money changers are "fixing" things until there is no more road left to kick the can down.
Sovereign bonds, banksta bonuses, the liquidity goes round and round all over until it goes bang. Then it stops
I hear Ben is a Fay Got.....and is a bottom......
I also hear he likes his beard pulled and his ass spanked...........
They don't call him "Spanky Bernanke" around the office for nothing ya know.
Ps....fuck you Spanky
If that is true, then he is no different than the freak child abusing mysogynists who occupy the upper echelons of the Rotchild et al satanic banking class. See DSK formerly head of the IMF as an exemplar. See Lord Victor Rothschild who recruited notorious spies in Britain for the Soviets...and let's remember Gislaine Maxwell, daughter of Mossad spy Robert Maxwell, and pal of child sex slave runner Epstein (useful friend of the Queen's son Andy Spanky, Bill Clinton , Peter Mandelson, Evelyn de Rothschild, Donald Trump,, Woody Allen, Ehud Barak etc) who was convicted in the U.S.
The filth runs far and wide among the criminal rootless cosmopolitans.
We really have gotten to the point where the Fed has made the US dollar nothing but a joke. Unfortunately 310 million American people who depend on the dollar do not see the humor.
Central banks, central control, one world government...whether you like it or not. You will pay for it.
The un-Federal non-Reserve Board has one priority: save itself and its affiliates everywhere else.
Hire politicians. Schmooze the masses into debt slavery, and endless profiteering war.
Jail 'em. Don't bail 'em. That is the wish of most people. Meanwhile, the Fed feeds its own, and everyone else will suffer for it.
Thanks for watching and reporting on thism Tyler, but as know this is not new, perhaps only the extent of the money printing involving the foreign banks.We are the global currency, and the Fed is controlled by the banking cartel which governs western civilization. They will not let dominos fall in Europe when deep pockets money printing originating from the US Central Bank is out there as a possible option to avoid pain. This isn't to say I agree with the practice, but it is how it is, and the Fed is not going to change what they have been doing since the original onset of the Great Recession. They will print money for us our our allies, some in the open QE channels and some covertly. But they feel they are doing what they can do to ensure financial system hardship when they think they can print more money and funnel it to other Central Banks.
the federal reserve charter authorizes the fed to monetize anything it wants - it has no restrictions in that respect....if it wanted to monetize used tampons it could do so....european financial instruments are clearly within scope...
is ben a 5th column nazi traitor? yes. has ben broken the law? no.
Do we really need all of the foreign banks in thr USA?
So we get more clarity around Dec 2013? Sigh, long time to wait for that ZH post.
This article is the key to eerything. This is why the fed seemingly went all in with preemptive QE for the first time in september. They could see the ecb was impotent and the omt while giving a bs sentiment bounce eas not rnough. But if the fed took carenof this it would buy a great deal of time and prevent what was going to be an immediate contraction in europe once the omt was revealed to be bullshit. Now european banks on us soil borrow take the billions and buy euros hence the stabalization of th euro and even rise in the fall. (thry did this before the money arrived even) and buy bonds of the periphery. This stipped the bleeding but the unwind will see the dollar rise the euro fall hard and now the fed will be on the hook when those banks find themselves trapped. Watch em and msci europe crash when the fed even whispers of stopping. Then it will be up to the ecb to find a way to take over or else. Either way the undelying fundementala cycle line a sine wave lower and lower as the whole thing shrinks. Looking like one final weak bounce in china japan and europe is about to give way to the rollover that has no bounce. At some point btfd gets u killed. It is looking like the next dip will be that one. Maybe one more. A bullshit sequester compromise could give us a blow iff top to 1600 that will signal the smart money to cash out. And that dip and deDcat bounce will be the one that punishes. Will hit 1250 yhis year and then 10-15% rally which will be the one final last stop to get off. Stay in at your own risk.
This article is the key to eerything. This is why the fed seemingly went all in with preemptive QE for the first time in september. They could see the ecb was impotent and the omt while giving a bs sentiment bounce eas not rnough. But if the fed took carenof this it would buy a great deal of time and prevent what was going to be an immediate contraction in europe once the omt was revealed to be bullshit. Now european banks on us soil borrow take the billions and buy euros hence the stabalization of th euro and even rise in the fall. (thry did this before the money arrived even) and buy bonds of the periphery. This stipped the bleeding but the unwind will see the dollar rise the euro fall hard and now the fed will be on the hook when those banks find themselves trapped. Watch em and msci europe crash when the fed even whispers of stopping. Then it will be up to the ecb to find a way to take over or else. Either way the undelying fundementala cycle line a sine wave lower and lower as the whole thing shrinks. Looking like one final weak bounce in china japan and europe is about to give way to the rollover that has no bounce. At some point btfd gets u killed. It is looking like the next dip will be that one. Maybe one more. A bullshit sequester compromise could give us a blow iff top to 1600 that will signal the smart money to cash out. And that dip and deDcat bounce will be the one that punishes. Will hit 1250 yhis year and then 10-15% rally which will be the one final last stop to get off. Stay in at your own risk.