The Global Liquidity Bailout Arrives: World Central Banks Announce Global Dollar Shortfall Funding Resolution
Remember that dollar liquidity crunch Zero Hedge has been covering for the past month? Here is the denouement, in the form of the first global liquidity bailout of the world for 2011, on the 3 year anniversary of the Lehman collapse.
ECB Announcement:
15 September 2011 - ECB announces additional US dollar liquidity-providing operations over year-end
The Governing Council of the European Central Bank (ECB) has decided, in coordination with the Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank, to conduct three US dollar liquidity-providing operations with a maturity of approximately three months covering the end of the year. These operations will be conducted in addition to the ongoing weekly seven-day operations announced on 10 May 2010. The schedule for these additional operations is as follows:
| Tender date | Settlement date | Maturity date |
| 12 October 2011 | 13 October 2011 | 5 January 2012 |
| 9 November 2011 | 10 November 2011 | 2 February 2012 |
| 7 December 2011 | 8 December 2011 | 1 March 2012 |
These will all take the form of repurchase operations against eligible collateral and will be carried out as fixed rate tender procedures with full allotment. Further information on tender procedures can be found on the ECB’s website.
Information on related announcements by other central banks is available on the following websites:
Bank of England: http://www.bankofengland.co.uk
Bank of Japan: http://www.boj.or.jp/en
Swiss National Bank: http://www.snb.ch
SNB Announcement:
The Swiss National Bank (SNB) has decided, in coordination with the Bank of England, the Bank of Japan, the European Central Bank and the Federal Reserve, to offer US dollar liquidity with a term of 84 days to cover the end of the year. These tenders will be conducted in addition to the 7-day operations. The first 84-day US-dollar liquidity operation will be carried out on 12 October 2011. Further information about the US dollar operation and the technical requirements are posted on the SNB website (www.snb.ch/en/ifor/finmkt/id/finmkt_usdollars).
BOE Announcement:
In coordination with the European Central Bank, the Swiss National Bank, the Bank of Japan, and the Federal Reserve, the Bank of England is today announcing that it will conduct three US dollar tenders, each at a term of approximately three months covering the end of the year. These tenders will be in addition to the ongoing weekly 7-day tenders of dollar funding announced on 10 May 2010.
As before, these operations will be at fixed interest rates with counterparties able to borrow any amount against eligible collateral. The first tender will be held on Wednesday 12 October. Further details can be found in the Market Notice at http://www.bankofengland.co.uk/markets/marketnotice110915.pdf.
US dollar repo operations are subject to the terms of the Sterling Monetary Framework Documentation as supplemented and amended by the Supplementary Terms, which can be found on the Bank of England website at http://www.bankofengland.co.uk/markets/other/dollarrepo/index.htm. The US dollar term repo operations use the Narrow and Wider OMO Collateral pools, details of which can be found at http://www.bankofengland.co.uk/markets/other/dollarrepo/eligiblecollateral.htm.
BOJ Announcement:
The European Central Bank, the Bank of England, and the Swiss National Bank have today announced the introduction of three-month U.S. dollar funds-supplying operations covering the year end.
The Bank of Japan has so far continued to conduct weekly one-week U.S. dollar funds-supplying operations and monthly three-month U.S. dollar funds-supplying operations. In coordination with those central banks and the Federal Reserve, the Bank of Japan announces here an additional schedule for a three-month U.S. dollar funds-supplying operation covering the year end.
Further schedule will be notified as decided.
1. Operational time table
2. Auction schedule (An auction on October 18, 2011 is added)
(8 votes)
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Wtf is going on?
Full economic spectrum manipulation.
Expect crackdowns on "financial freedom" in the name of "preventing economic terrorism".
Man the swap lines pumps -- this is a Category 5 hurricane!
It's raining everywhere in the world but Texas.
PS: 09-14 16:48: US Senator Reid says will do a China currency bill quickly
...because those chi.coms are such currency manipulators. We definitely need to bomb them.
everyone should take a look at this right now
http://benjaminfulford.typepad.com/
fulford is a source of misdirection... none of the government stooges are going turn on their masters. they will lick boots to the bitter end.
maybe he is a source of misdirection. i'd be happy to read any documentation you have on that, if it's available
He wrote of the "311 nuclear tsunami attack" on Japan. Got tinfoil hat?
I was hoping aliens were somehow involved...
Holy M Oly! This has to be the biggest can kick attempted yet.
So, no dollar shortages means no dollar ramp? That means Japan is saved? Eur/USD steadied? SNB decision makes perfect sense in this scenario?
How do we take the controllers to task? Who takes them to task?
And Au/Ag? Watch, Au is doing the slide while Ag is holding a little better. Whut is up?
Crazy. Really not worth "trading" this market, how can you account for such intervention?
Go on, take your money and run!
ORI
Tipping Points
And the markets jump up!
This is like having every fire truck in the county arrive at the door of your apartment building and the clown on TV is saying this is good news.
But, when the building is on fire, fire trucks showing up IS good news.
+1
Really now, who's going to arrest George Soros?
Stark
A Den of Vipers and Thieves they all are.... welcome to history repeating itself once again.
http://thehardrightedge.com/currency/
Yeah, I like the 2nd bank of the US history; I always compare Bernanke to Biddle when discussing Keynesians, but obviously, it's "totally different this time". They also usually refuse to discuss the origins of the 3rd bank of the US.
Anyway, just off Marketwatch;
Predictably, the market doesn't take notice.
When you say the market doesn't take notice, do you mean the algorithms have not yet been turned on?
9:10 to Yuma?
Reminds me of that movie 3:10 to Yuma. Good movie, but it's looking like things will end like in the movie. Most people die and the bad guy gets away.
+1
Good citizen of Metropolis!
Here's my opinion.
Fuck. Shit. Fuck. Shit.
Now you can take that advice to the bank!
http://geraldcelente.proboards.com
Endless printing and don't say a !!!!!!! word about it!
It's OK and that's the Law!
dollar flood...
Why are Ag and Au down 3%? Something's not clicking.
Just as described by Jefferies and ZH:
The bottom line is that it looks like a Lehman like event is about to be unleashed on Europe WITHOUT an effective TARP like structure fully in place. Now maybe, just maybe, they can do what the US did and build one on the fly - wiping out a few institutions and then using an expanded EFSF/Eurobond structure to prevent systemic collapse. But politically that is increasingly feeling like a long shot. Rather it looks like we will get 17 TARPs - one for each country.
Ah, 4 already running, 13 more to go...
They never learn. Hyperinflation is a certainty.
Always was.
The banks get dollars - crisis over.
Another kick of the can. The underlying problems remain.
It works each time they've done it, so why stop now?
oops! Looks like the manipulated BS rally is almost over already! We finish lower on the day!
PMs you mean.
May one ask what constitutes "eligeble material"? Shares in Lehman Bros at 2007 peak price?
Papers... business papers... also there were some Creedence tapes...
Big wheel keeps on turning ...
is that the reason for the EUR/USD spike?
That was probably due to the Greek crisis being solved once and for all a few days ago (for the 3rd time).
One step closer to the solution.
I wish I could get a bail out whenever I had a liquidity problem.
CENTRAL BANKERS ARE SO LUCKY!
Anyone see a connection here? http://www.bloomberg.com/news/2011-09-14/ferrari-proves-recession-proof-as-ultra-luxury-sells-out-cars.html
The bailouts will continue until morale improves - or the shooting starts - whichever comes first.
I've got some bad receivables I'd like to monetize. Can I get in line too?
PMs down - crisis over. Told you so.
Right. Cause infinite money printing is bearish for metals.
Who says it goes to the PMs? Apparently not.
Only real savings go to PM's. Play money goes down the UBS affirmative action rabbit hole.
Kweku Adoboli is now destined to be as famous as Didier Drogba the footballer. Or Jerome Kerviel his fellow scammer.
Some rabbit holes are lined in tungsten gold. During the spell in prison he can write his memoirs.
Not today. How long will this 'stick save' last?
Until the next crisis.
ironic timing
Gold dropping like a stone????????
Meh. Normal zig zag pattern so far. Wake me if we go below 1450
you recall post Lehman dropped like a rock
counter intuitive due to liquidity squeeze
I thought this was providing liquidity?
This isn't 2008...
stocks and oil pumping, paper metal IOU`S being written like confetti.
Sorry what happened, I was busy burying my gold in the backyard..
LMAO
So is the ECB version of buying bonds from the banks and the banks can do whatever they want with the cash?
Bingo -- there's the liquidity pump that the markets have been registering, as insiders bought hand over fist.
Look on their works, ye mighty, and despair!
Bread $10 a loaf....coming to a Kroger near you soon.
...Which will put Orlik, Dunhill and Esoterica way above $100 for 50 grams ;)
I don't normally swear, but are these people off their fucking heads?
DavidC
AND SO IT TRULY BEGINS...the trifecta!!!
A 2 in 1: both Eurobanks saved and QE3 commited. Bernanke is LOL. Crisis over. Merry Christmas.
what do you put in your xmas pudding?
Reality.
its funny this perception of reality : boring vs exciting. Its like ginger n spice, turns some on; not others.
Ever heard of good money chasing bad money; pouring precious water down a burst pipe, letting you wife buy on the mall with five credit cards? I could go on... But I like roast turkey just like the next guy.
Be honest: we were promised a major collapse because of the recent dollarfundingcrisis in the eurozone. And now Bennie Beard prints the bucks free! French banking stocks are spiking big time! The doomers better seek another job. Believe me, we're never to get rid of this system, the banksters rule. But merry Christmas, I think further than today. Boring world we live in.
Finally!!! How many posts of yours do I have to scroll through to read "Boring world we live in"..........PMSL
Tell me, does your wife know you pimp yourself for a living?
A pimp serves a useful task. But, the funding war is over, euro saved. Merry you-know. Boring world we live in.
This is emergency short term lending at low rates, coordinated globally. It signals big trouble.
On the Titanic, a fire breaks out due to a large explosion below deck. Captain and crew put out the fire and the cold, bored (boring), passengers give a courtesy clap and believe all is well. No one thinks to ask about the explosion or the steadily increasing tilt of the deck.
The show continues, you will have your tragedy served European style, in 9 courses. Bon Apetit!
and a happy new year?
Sure. With the euro, like it or not. I wish gold as money, but alas, it's not in. Happy 2012.
A broken market run by criminal private sector Oligarchs, a central banking cartel and its dictatorship, Politicians that run round in agitated circles like clock work orange and people that drown by numbers. George Orwell should be a proud son of Nostradamus in his resting place.
If US Money Market Funds cant make it....the CBs can.
F..k US MM funds and their over paid fat lazy cats.
Three months, just long enough to get their 2011 bonuses.
Jedi Master Qui-gon Jin: We can pay you with Republic credits
Junk trader Waapo: Republic credits are no good here...I need money
JM QgJ: <waving his hand, using the force to sway Waapo>
JtW: What, you think your some kind of Jedi?! Mind tricks dont work on me, only money!
QE for all! Could not be more bullish for gold.
Hmmm, sounds like a Greek default, and everything else will be bought... Greece = Lehman... One must fall...
I'm having trouble paying my bills. Can I get some dollar liquidity provisions against some crappy collateral I can post? I have comic books? Baseball cards? I'd like to buy a new mansion, please...
U messin up liquidity and solvency ol chap
you have baseball cards? lulz
Haha...you're very civil! You use comic books and baseball cards, the Banksters use used condoms after screwing all the peasants!!
That they are even attempting this, given the half-life these interventions have... We are rapidly approaching the endgame.
my friend gold disagrees
So gold is finished? Your suggestion is what, exactly?
that the endgame is not near.
So another year or two?
They have precisely one tool at their disposal and they're going to use it until it breaks.