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It's Official - The Fed Is Now Buying European Government Bonds

Tyler Durden's picture


As if the 'risk-less' dollar-swaps the Fed has extended to any and every major central bank were not enough, William Dudley just unashamedly admitted that the Fed now holds 'a very small amount of European Sovereign Debt'. Explaining this position, as Bloomberg notes:


Dudley, testifying to a House panel, noted that he doesn't see more efforts by the Fed to buffer the US from Europe's tempests and believes European banks are deleveraging in an orderly manner. So not only is the US taxpayer bailing out Europe via the IMF (as we noted here a week ago using Greece as an intermediary) and the Fed is providing limitless USD swap lines but now we join the ECB in monetizing European government bonds - something we warned might happen back in December 2010. As for being a small amount - wasn't MF Global's holding relatively small too? And aren't we getting a little full from all this buying?


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Tue, 03/27/2012 - 11:43 | 2294438 tabasco71
tabasco71's picture

Ok, its a serious point.  

But I can't stop f'ing laughing at that picture.... I don't know why, but that one has really gotten me going today.

+1 for the comic genius on ZH!!

Tue, 03/27/2012 - 11:58 | 2294511 Money 4 Nothing
Money 4 Nothing's picture

"Qu'ils mangent de la brioche", Cake finished...

Tue, 03/27/2012 - 14:38 | 2295081 FreeNewEnergy
FreeNewEnergy's picture

Great photo. Here's my caption:

Bernanke: Tim, how are you pulling my wanker when you have both hands on your napkin?

Timmah: I'm not pulling your wanker.

Bernanke: Then it must be Merkel.

Timmah: She gives good hand.

Tue, 03/27/2012 - 11:46 | 2294450 Brokenarrow
Brokenarrow's picture

I'm a senior. I know alot of seniors. Berneke has to be one of the most hated men in America. He has turned this country into a plutocracy for his future employers. I'm afraid to post what I really think. If he droped dead today, I would drink a martini and dance.

Tue, 03/27/2012 - 12:09 | 2294572 WestVillageIdiot
WestVillageIdiot's picture

Dear Brokenarrow,


Feel free to drink a glass of ZIRP and shut the fuck up.


The Honorable Ben Shalom Bernanke

Tue, 03/27/2012 - 13:18 | 2294859 drivenZ
drivenZ's picture

Tired of people whining about Bernanke...The blame lies with the current congress and the congresses that came before them on both sides of the aisle. Bernanke can't cut the defense budget or fix SS and medicare, he can't spur business to spend etc etc etc.  The real issues needing to be fixed are in the hands of congress. The past ones failed and the current one has done nothing. 

Tue, 03/27/2012 - 15:12 | 2295192 baby_BLYTHE
baby_BLYTHE's picture

Cut the Defense budget? Ya, he single handedly could do it. The QEs were also to help keep the military running overseas.

Tue, 03/27/2012 - 15:35 | 2295272 drivenZ
drivenZ's picture

so Bernanke can change foreign policy, end the wars and cut the defense budget? news to me. 

Tue, 03/27/2012 - 13:35 | 2294916 resurger
resurger's picture


toast to that Sir

Tue, 03/27/2012 - 13:42 | 2294939 Crab Cake
Crab Cake's picture

Yeah, you would be afraid. The truth is you've been willfully blind for the last 30 years, along with the rest of your senior friends. IT HAS BEEN A PLUTOCRACY THE WHOLE TIME, ONLY NOW ITS NOT BENEFITING YOU.

So, you go be scared and leave the work to people you never cared about in the first place because, lets be honest, the only reason you give a shit now is that the fascists are after you, your retirement, and your pocketbook. Dont start acting like you give two fucking shits about what the empire does to others, its all about you, and always has been.

Tue, 03/27/2012 - 14:47 | 2295103 FreeNewEnergy
FreeNewEnergy's picture

Why wait for that fucker to drop dead. Have a drink now. Check above for Bloody mary recipe.

Serenity now... insanity later.

Tue, 03/27/2012 - 11:46 | 2294456 dick cheneys ghost
dick cheneys ghost's picture


Tue, 03/27/2012 - 11:51 | 2294457 slewie the pi-rat
slewie the pi-rat's picture

define "monetizing"

Tue, 03/27/2012 - 12:04 | 2294551 ebworthen
ebworthen's picture

Ben swaps his Wife for Timmy's blow up doll?

Tue, 03/27/2012 - 12:36 | 2294698 slewie the pi-rat
slewie the pi-rat's picture

looks like they have spinach, but no peas, eb

is that the ameri-way?

i bought some some cherry tomatoes from spaceway on sale last week--0.99;  when i got home, i saw they were from mexico

when i smelled them, they smelled like manure!

Tue, 03/27/2012 - 13:14 | 2294838 francis_sawyer
francis_sawyer's picture

My advice...

Scoop out the seeds, put them on a paper towel after giving them a slight rinse... Let them dry out, plant them is small pots & keep them under grow lights until May... Take them outdoors when they are about a foot high & plant them in the ground... Give them a shot of fertilizer, keep them watered & you'll have all you want come late July...

Tue, 03/27/2012 - 11:47 | 2294459 Stoploss
Stoploss's picture

That's it. Im going out back an gettin started on the hangman's gallows.


It ships UPS in case anyone else want's one.

Tue, 03/27/2012 - 13:50 | 2294955 Crab Cake
Crab Cake's picture

Most municipalities have conveniently provided lamp posts, unless youre really dead set on snapping their necks for a swift end. Personally though I dont think you have any intention of doing anything, and youre just mouthing off, which is too bad.

Tue, 03/27/2012 - 11:48 | 2294467 AN0NYM0US
AN0NYM0US's picture


"I think the chef is a patriot"

Tue, 03/27/2012 - 11:49 | 2294470 shiborlover
shiborlover's picture

Basically FED is going to buy European bonds in order to avoid any depreciation of Euro currency (that can help labour competitiveness in that zone and cause inflation, slashing its debt)....Well good to know that Euro zone is pretty much screwed in the medium run....

Tue, 03/27/2012 - 12:47 | 2294749 slaughterer
slaughterer's picture

Hey, it was Black Friday then.  The Fed could not resist the bargains in the European Sovereign Debt Market. 

Tue, 03/27/2012 - 12:48 | 2294754 slaughterer
slaughterer's picture

The ECB even threw in a waffle maker. 

Tue, 03/27/2012 - 11:50 | 2294477 LarryDavis
LarryDavis's picture

What does it matter if the Fed loses money on bonds?  

Tue, 03/27/2012 - 11:49 | 2294479 bnbdnb
bnbdnb's picture

And there is the reason the EURUSD isn't falling.

Tue, 03/27/2012 - 11:55 | 2294505 Bam_Man
Bam_Man's picture

Amazing, isn't it? The currencies seem to be stable versus each other, but are dropping like a bag of rocks versus oil and other commodities.

Tue, 03/27/2012 - 12:08 | 2294570 DB Cooper
DB Cooper's picture

The Fed = manipulators and speculators

Tue, 03/27/2012 - 12:10 | 2294580 WestVillageIdiot
WestVillageIdiot's picture

Sadists and masochists



Tue, 03/27/2012 - 11:57 | 2294482 SillySalesmanQu...
SillySalesmanQuestion's picture

Gotta prop up those "other banks" that the FED owns and controls. The FED...Central Banker to the world. As we have known here for quite some time, the FED does not have the best interests for U.S. or its citizens as they systematicly loot, pillage, and plunder us into oblivion.

Tue, 03/27/2012 - 11:51 | 2294485 yogibear
yogibear's picture

Bernanke has made himself to be the financial Moses. With the waving of his staff all debt is transferred and eliminated. 

Time for the world's bond vigilantes  to challenge his balance sheet deception. There is a lot more debt to the US taxpayer.

Bernanke and the US should be downgraded in the credit world a couple more notches down.

Tue, 03/27/2012 - 13:08 | 2294813 Dingleberry
Dingleberry's picture

There are no bond vigilantes. That is a myth, and they only rape minor economies. What we have now are GOLD BUGS. 

Tue, 03/27/2012 - 11:53 | 2294494 GrinandBearit
GrinandBearit's picture

When is this fiat paper ponzi scheme ever going to end?  It needs to collapse NOW!

Bernanke and Geither need and introduction:  Mr. Bullet, I'd like to introduce you to Mr. Head.


Tue, 03/27/2012 - 11:53 | 2294495 Bam_Man
Bam_Man's picture

"Managing reserves" is a euphemism for "the means by which we simultaneously devalue the dollar and euro against each other in the absence of an external standard."

In a debt-saturated, low/no-growth environment, it's all about executing "managed de-valuations".

Tue, 03/27/2012 - 12:00 | 2294541 gatorengineer
gatorengineer's picture

A fancy way of saying were going to f the chinese in the Arse...... fixed it for ya......

Tue, 03/27/2012 - 12:38 | 2294707 Its_the_economy...
Its_the_economy_stupid's picture

External standard...Hmmmmm, let's's yellow, shiney and barbaric.

Tue, 03/27/2012 - 11:54 | 2294500 HD
HD's picture

Fed will bail everyone on the planet out...except US consumers.

Tue, 03/27/2012 - 11:54 | 2294501 dick cheneys ghost
dick cheneys ghost's picture

Somebody please tell me the Difference between Communist China and the USA......


please, Im waiting.........

Tue, 03/27/2012 - 11:58 | 2294509 Paul Atreides
Paul Atreides's picture

China promotes the sale of precious metals to its populus.

Tue, 03/27/2012 - 11:56 | 2294512 Bam_Man
Bam_Man's picture

They eat with chopsticks.

Tue, 03/27/2012 - 12:13 | 2294566 Money 4 Nothing
Money 4 Nothing's picture

They eat with chopsticks we make for them in Georgia USA, not good enough argument. Next?

Georgia chopsticks:

My answer is, they don't have all of our industry yet, we have the best Porn stars in the US bar none! Well, Sweeden runs a close 2nd?

Tue, 03/27/2012 - 15:13 | 2295195 Dien Bien Poo
Dien Bien Poo's picture

we dont eat dog in the US. yet.

Tue, 03/27/2012 - 23:42 | 2296403 boogerbently
boogerbently's picture

They own us, we DON'T own them.

Tue, 03/27/2012 - 11:57 | 2294507 ebworthen
ebworthen's picture

Ben:  "The Spanish paper is even chewier than that Greek stuff."

Timmy:  "And more bitter.  Pass the pillar of salt please?"

Tue, 03/27/2012 - 11:57 | 2294513 kito
kito's picture

european govt bonds are all the rage at the d.c. dinner's a must have accessory to go along with prada shoes and louis vuitton bags......

Tue, 03/27/2012 - 11:57 | 2294514 Jacque Itch
Jacque Itch's picture

You need to hold a caption contest with the pic of those Gangstas eating the taxpayer for lunch

Tue, 03/27/2012 - 12:22 | 2294619 Vincent Vega
Vincent Vega's picture

Nice idea. I'll take a shot at it: 1) Wow, taxpayer taste just like chicken. 2) Leg and ass are ok but I really like the flavor of cock.

Tue, 03/27/2012 - 11:58 | 2294520 Dick Darlington
Dick Darlington's picture

With such an experienced "bond manager" like Bernanke in the wheel, nothing can go wrong. Nothing!

Tue, 03/27/2012 - 11:59 | 2294530 NotApplicable
NotApplicable's picture

Lemme guess. They bought all of the MFG holdings for next to nothing.


Tue, 03/27/2012 - 11:59 | 2294531 tahoebumsmith
tahoebumsmith's picture

Remember this, " For every one lie you tell, you have to invent two or three more to protect yourself from the first one."

Tue, 03/27/2012 - 23:47 | 2296406 boogerbently
boogerbently's picture

First prize, Gold medal, Pulitzer, Olympic, Nobel worthy post.

You have succinctly defined the US govt.


Tue, 03/27/2012 - 12:04 | 2294550 Ted Baker
Ted Baker's picture


Tue, 03/27/2012 - 12:06 | 2294562 Quinvarius
Quinvarius's picture

Shouldn't they be raiding gold to cover up their global debt monetization about now?

Tue, 03/27/2012 - 12:28 | 2294655 Bam_Man
Bam_Man's picture

What do you think they've been doing almost non-stop since December?

Gold and Silver prices right now are both like beachballs under water.

Tue, 03/27/2012 - 12:09 | 2294575 Dr. Engali
Dr. Engali's picture

Well gas just shot up over $4 here today for the first time. It had been hovering around $3.999 for weeks. This morning it shot up .16c

Tue, 03/27/2012 - 12:15 | 2294587 Quinvarius
Quinvarius's picture

When Obama released from the SPR, it screwed a lot of refiners who were properly hedged in the oil futures market.  A LOT of refining capacity shut down on the East Coast for that, among other, reasons.  The government idiots just don't understand they need to get completely out of the markets.

Tue, 03/27/2012 - 12:19 | 2294613 Dr. Engali
Dr. Engali's picture

You're right but I don't think we've seen anything yet.

Tue, 03/27/2012 - 12:19 | 2294615 ReallySparky
ReallySparky's picture

Two refiners shut down on the east coast, Philly area, due to new EPA regulations.  2 refiners voluntarily closed.  The last refiner in Philly is slated to shut down in July, if there is no buyer.  This will affect 50% of the PADD district on the East Coast.  This will be a nightmare to transport in the winter/summer blends from Midwest refiners.  Folks on the east coast will be singing the blues come fall, when their prices sky rocket even higher than California PADD district. I imagine prices will go up by at least 25% in 3rd, 4th quarter. 

Tue, 03/27/2012 - 13:11 | 2294691 Money 4 Nothing
Money 4 Nothing's picture

Platt Bridge Sunoco Refinery shut down right down the road from us  recently. Put alot of locals out of work.

Folks's, this doesn't stop till everything is shut down accept the govenrment, I said that 1 year ago, they will make us all beg for any solution they offer, and we will gladly accept it in desperation either right or wrong. It's a systematic shut down of the USA. Prepare accordingly. 

You ever try to run a cross country Marathon wearing two left shoes? Well, the shoe is on the other foot now. Painfull and hobbling.

This Fascist Oligarch will raise up 5 Nations and destroy ours in the process and their okay with that, spread the wealth around and destroy the greatest Country on the face of the earth, well, not so much anymore. I don't have to tell you where we are heading now? Do I? 

Brazil is looking like a good place to move.

Tue, 03/27/2012 - 18:52 | 2295900 Cathartes Aura
Cathartes Aura's picture

exactly when was amrka "the greatest Country on the face of the earth"?

since we're speaking in global terms, just curious.

Tue, 03/27/2012 - 20:56 | 2296109 Money 4 Nothing
Money 4 Nothing's picture

Well... That's what my Dad told me.. He is never wrong.

Tue, 03/27/2012 - 12:35 | 2294694 yogibear
yogibear's picture

Obama said he want's much higher oil and gas prices. He's getting what he wished for.

Tue, 03/27/2012 - 12:46 | 2294746 sun tzu
sun tzu's picture

He also wanted much higher electricity prices. I hope his 0bots enjoy any change they have left after paying the bills.

Tue, 03/27/2012 - 12:13 | 2294588 Instant Wealth
Instant Wealth's picture

Probably, they bought some UK gilts, to help their cousins in Rotten Albion.

Tue, 03/27/2012 - 12:13 | 2294591 ReallySparky
ReallySparky's picture

This is going to be spectacular when it blows up. 

Tue, 03/27/2012 - 12:17 | 2294605 Quinvarius
Quinvarius's picture

I wonder how that gets removed from the Fed balance sheet when it becomes worthless?  Write offs?  I guess we know how the Fed will lower its balance sheet in the end.  None of that garbage will ever see the markets.

Tue, 03/27/2012 - 12:31 | 2294674 Bam_Man
Bam_Man's picture

No need for the Fed or ECB to ever take a write-off on sovereign debt holdings. They will hold to maturity. Any "haircuts" required due to re-structuring will be taken only by private investors "voluntarily". Greece was the test case for this.

Tue, 03/27/2012 - 12:26 | 2294649 dark pools of soros
dark pools of soros's picture

were they eating gold??

Tue, 03/27/2012 - 12:31 | 2294673 djsmps
djsmps's picture

iPad Parmigiana

Tue, 03/27/2012 - 12:32 | 2294678 gimli
gimli's picture

They were both eating crow, but didn't want to admit it.

Tue, 03/27/2012 - 18:54 | 2295901 Cathartes Aura
Cathartes Aura's picture

timmay chews, but doesn't swallow.

Tue, 03/27/2012 - 12:33 | 2294681 Sandmann
Tue, 03/27/2012 - 12:37 | 2294701 sabra1
sabra1's picture

to all you movie lovers out there, Hunger Games is "AGENDA 21."

Tue, 03/27/2012 - 12:50 | 2294739 Money 4 Nothing
Money 4 Nothing's picture

Yup, I figured that out the first week after reading the preview, but you know what? I have a couple banker friends that look reeaal tasty with some Chianti wine. "Save a House eat a Banker"

 Friends don't let friends eat friends.

The special of the day that Timmah and Bendover ordered for lunch was Penis Pliaf, eat up boys.

Tue, 03/27/2012 - 12:38 | 2294706 davood
davood's picture

It's Official - The Central Banksters are swallowing each other's vomit (I was going to use that "c" word, but this is a family website, right?).

Tue, 03/27/2012 - 13:02 | 2294800 Dingleberry
Dingleberry's picture

Did you mean cum or cock?

Tue, 03/27/2012 - 12:38 | 2294711 MFL8240
MFL8240's picture

A literal clown show!  The most indebted nation on the planet buying more foreign junk with printed money.  This man Bernanke is a joke!

Tue, 03/27/2012 - 12:39 | 2294717 Joebloinvestor
Joebloinvestor's picture

Why go through the IMF to throw money down a rathole when you can go straight to the source?


Ben wants that EU saviour statue.

Tue, 03/27/2012 - 12:41 | 2294722 dvsteenk
dvsteenk's picture

If they do admit buying EU paper, what is keeping them from buying stocks? Israeli CB admittedly buys Apple, I wouldn't be surprised if Bernanke or Geitner has been bidding up European bank stocks as well

they probably will admit that next, revealing their true role as PPT...

Tue, 03/27/2012 - 12:41 | 2294728 jcaz
jcaz's picture

Fuck you, Ben and Timmy (Ben doesn't pee without Timmy allowing him.....)

Tue, 03/27/2012 - 12:43 | 2294731 Forgiven
Forgiven's picture

Exactly HOW is this legal?

Tue, 03/27/2012 - 12:48 | 2294756 Everybodys All ...
Everybodys All American's picture

it's not.

Tue, 03/27/2012 - 13:07 | 2294805 Money 4 Nothing
Money 4 Nothing's picture

How is indefinate internment of Americans legal? Touche'

Tue, 03/27/2012 - 12:44 | 2294734 semperfi
semperfi's picture

Hey, let's start a new country - using the constitution verbatim, with 2 rule changes:  1) no banks or financial corporations of any kind  2) all govt reps will be randomly selected like for jury duty

Tue, 03/27/2012 - 12:52 | 2294765 takinthehighway
takinthehighway's picture

Workin' on it, friend...

Tue, 03/27/2012 - 12:57 | 2294783 Sandmann
Sandmann's picture

Better to take back your own by

Dorothy, a sort of proverbial ‘Everywoman’, lands on the Wicked Witch of the East (the East-coast bankers), killing her, so freeing the Munchkins, the down-trodden poor, but the Wicked Witch of the West (the West-coast bankers) remains loose.

To deal with her and to get back to Kansas (normality), the Good Witch of the North, representing the electorate of the North (this is less than 40 years after the civil war), tells Dorothy to seek out the Wizard of Oz (‘oz’ being short for ounce, the means of weighing both gold and silver). She also gives her a pair of silver slippers (as they were in the book - they became ruby ones in the film). Only these silver slippers will enable her to remain safe on the yellow-brick road, representing the bankers’ gold standard, as she heads towards the Emerald City, representing Washington DC.


Tue, 03/27/2012 - 19:04 | 2295924 Cathartes Aura
Cathartes Aura's picture

can we please update "Emerald City" - emeralds are beautiful stones created over time, mined from Earth. . .

I'll put forward the idea "Charcoal City"

Impure carbon obtained by heating wood or other organic matter in the absence of oxygen.

it's dark, and I like the "heating organic matter" and the "absence of oxygen" line.

Tue, 03/27/2012 - 12:44 | 2294737 forward ho
forward ho's picture

We are witnessing the rape and pilaging of an entire world. our leaders commiting theft on a scale unimaginable to the human mind. (try to picture trillions upon trillions of dollars, you can't. greater than all the stars in the sky) when finished, the toll in untold billions of lives lost, and lives ruined will be just as unimaginable.  the plate has dropped, it's heading for they floor, time of impact ???

Tue, 03/27/2012 - 13:09 | 2294814 sabra1
sabra1's picture

there are billions of us, thousands of them! there's your solution!

Tue, 03/27/2012 - 12:44 | 2294738 ItsDanger
ItsDanger's picture

Isnt it standard for the local treasury dept to have foreign currency reserves invested in bonds for transactions?  We need to know the amount in comparison to the actual treasury's needs.

Tue, 03/27/2012 - 12:47 | 2294742 Everybodys All ...
Everybodys All American's picture

This is high crimes and misdemeanors gentleman. Very much an impeachable offense. Do the republicans have the balls to go after Bernanke? Nope.

Would it be safe to assume the dumbasses bought Greek debt.

Tue, 03/27/2012 - 12:47 | 2294752 Giba
Giba's picture

There is no limit to insanity or perhaps BRENT......

Tue, 03/27/2012 - 12:53 | 2294766 Undecided
Tue, 03/27/2012 - 12:54 | 2294771 The worst trader
The worst trader's picture

Took a chance and bought uvxy, any thoughts?

Tue, 03/27/2012 - 14:27 | 2295047 Bansters-in-my-...
Bansters-in-my- feces's picture

Well done, if you are trying to live up to your user name.

Tue, 03/27/2012 - 12:56 | 2294778 newworldorder
newworldorder's picture

No sarcasm intended - But some serious observatiosn and questions.

Why all the hand wringing? Obviously a lot of us dont like wihat the FED is doing, but so what? They are not required to get permission to do what they want from anyone. Other than their charter mandate they are not subject to Congressional oversight from Congress on their operational decision making. They are not sujbect to Presidential supervision and are under the same minimal judicial constraints as any other corporate entity.

They do as they please with the implicit support of our government as well as most governments and other central banks. They function as the worlds financial goalkeeper. They are the last line of defense preventing world wide sovereign and banking collapse.

Who is going to force them to change their behavior, when the financial elite approve and want them to continue in this behavior?

Tue, 03/27/2012 - 12:59 | 2294791 Everybodys All ...
Everybodys All American's picture

When the whole system collapses because of these abuses will you care then or should you care now?

Tue, 03/27/2012 - 13:06 | 2294807 Dingleberry
Dingleberry's picture

Actually Ben is violating the law. He is not alowed to put trash on the feds balance sheet, for starters. He is supposed to keep inflation in check. He doesn't. some He is also restricted unless there are "emergency" situations in which case he has more leeway. Congress, like the Prez, refuses to reign him in. Or enforce the law. The Fed chairman is supposed to be powerful, but not omnipotent. But this debate ended a few years ago. The sheeple didn't seem to get too upset by it.

Tue, 03/27/2012 - 13:11 | 2294830 newworldorder
newworldorder's picture

Yes - My point as well. So, if the US population does not mind, the MSM will not call it, and Congress will not stop it - Where do we go from here?

Tue, 03/27/2012 - 13:38 | 2294925 riphowardkatz
riphowardkatz's picture

onward and downward

Tue, 03/27/2012 - 13:07 | 2294809 Sandmann
Sandmann's picture
Winthrop Blankfein and Bernanke 1975

1975 Harvard Housemates


Tue, 03/27/2012 - 13:11 | 2294828 Vince Clortho
Vince Clortho's picture


Tue, 03/27/2012 - 15:00 | 2295148 FreeNewEnergy
FreeNewEnergy's picture

Roger Goodell? After all he's the NFL commissioner.

Tue, 03/27/2012 - 13:01 | 2294795 Dingleberry
Dingleberry's picture

100 year gilts, anyone?  


Tue, 03/27/2012 - 13:10 | 2294822 Stuck on Zero
Stuck on Zero's picture

I understand the Fed bought puts on $6B worth of 100 year gilts using Countrywide bundled mortgage CDOs.  Makes sense to me.

Tue, 03/27/2012 - 13:10 | 2294825 jazz571027
jazz571027's picture

Here something...


Brics’ move to unseat US dollar as trade currency

Tue, 03/27/2012 - 13:17 | 2294858 jimmyjames
jimmyjames's picture

Thus, the nation is expected to become party to endorsing the Chinese currency, the renminbi, as the currency of trade in emerging markets.

This means getting a renminbi-denominated bank account, in addition to a dollar account, could be an advantage for African businesses that seek to do business in the emerging markets.

The move is set to challenge the supremacy of the US dollar. This, experts say, is the latest salvo in the greatest worldwide currency war since the 1930s.


So they will use the Renmibi for trade-

That's pretty funny considering the Renmibi is locked to the USD-

Understand that what happens to the dollar happens to the Renmibi-or is China gonna unlock and let it float-or rather sink?

Tue, 03/27/2012 - 13:28 | 2294899 Dicite justitiam
Dicite justitiam's picture

This is the cancer of the dollar.  War (meaning either physical or economic policy tools) is the heart attack.

Forget "pegging."  A reserve currency is the most useful currency: The dollar is becoming less useful.

Tue, 03/27/2012 - 13:21 | 2294871 Dicite justitiam
Dicite justitiam's picture

Once upon a time, the US citizen was the Principal, and the monetary authority was the Agent.

Now, the US citizen is still the Principal; it's just that the monetary authority is now "the US citizen."

The rest of us just live here.

Tue, 03/27/2012 - 13:21 | 2294875 dcb
dcb's picture

the fed ddcides to create it's own unlimited firewall for the european debt crisis, but itain't a bailout of european banks, after all the bernenk (sociopath) said the fed didn't have the power to do a bailout.

the man is a sociopath.


No pesky german parlimant needed for this one

Tue, 03/27/2012 - 13:23 | 2294876 Rathmullan
Rathmullan's picture

My guess is that it's all Greek sovereign. Probably the result of favor asked of dudly by jonny corzine last october.

Tue, 03/27/2012 - 13:27 | 2294893 famousamos
famousamos's picture

Isn't the Treasury Dept responsible for the Federal Reserves balance sheet now? as of a 2011 law/rule change? I know they were pushing it in early 2011. Thanks.

Tue, 03/27/2012 - 13:35 | 2294914 bugs_
bugs_'s picture

we suspected they were doing this indirectly all along.

the situation must be getting so bad that there is nobody willing to act as the third party bag holder any longer so the fed has to do it directly.

yet another reason to END THE FED

Tue, 03/27/2012 - 13:39 | 2294929 hawks5999
hawks5999's picture

If you buy foreign bonds is that still considered QE?

Tue, 03/27/2012 - 13:40 | 2294931 Mentalic
Mentalic's picture

OT: Major gas leak off North Sea ..

"Oil giant Total has confirmed that a major gas leak on one of its North Sea platforms could take several months to stop and admitted there was a risk of explosion."

Tue, 03/27/2012 - 20:53 | 2296102 Money 4 Nothing
Money 4 Nothing's picture

And the Seas turned to Red.. Or is it just a Big invitation to a global Fish Fry?

Tue, 03/27/2012 - 13:47 | 2294948 Terminal Emulator
Terminal Emulator's picture

Take that, all you USD-deniers!  USD is and will be the world's reserve currency for many years to come.  Next-up, Fed purchases China sovereign debt.  The Ponzi can and will continue much longer than anyone thinks possible.  Assimilate or die.


Tue, 03/27/2012 - 14:25 | 2295027 LouisDega
LouisDega's picture

Is that you Evil- Tom O'Brien? Is this me?

Tue, 03/27/2012 - 13:50 | 2294954 BlackholeDivestment
BlackholeDivestment's picture




           Chairsatan, the Fed Beast, filling up the Beltway Bandits Belly with generations of Labor

                                            marked and sealed with a global debt tax,

                   that includes; foreign exposure to the U.S. Constitution, without representaion,

                                            ....nobody can buy sell or tade to escape.

The shit storm of judgment, built up inside the derivatibe black hole in bed with the political whore, means war

                                             ...and no escape from war ''game theory'',

                                  designed exposure, for peace with Israel and all the nations.

Toilet paper weakness, to a system flush for the new global club of corrupt ''moral hazard'' CB douchebags and political tryrants, like; the Great Wal Mart of Commie China etc... and the Russian Mob, combine with the Muslim Meatheads for a world ending dinner time shit storm aaah coming to a block party near you.  Lol, These boys are all going to burn before 2016 ends.

Tue, 03/27/2012 - 13:50 | 2294958 Bam_Man
Bam_Man's picture

"All your bond market are belong to us."

Tue, 03/27/2012 - 14:07 | 2294987 JuicedGamma
JuicedGamma's picture

Isn't this what got Corzine in trouble?  Just asking.

Tue, 03/27/2012 - 14:13 | 2295004 Bansters-in-my-...
Bansters-in-my- feces's picture


That photo would make an all time best seller if it where a dart board.

Ps.....Fuck you's Fed Heads.

Pss...You to Little Weasel Timmy.G

Tue, 03/27/2012 - 15:28 | 2295241 Dien Bien Poo
Dien Bien Poo's picture

i always thought Timmy was an affectionate, if effete form of Timothy. I see nothing affectionate about Mr G. Effete maybe? That hair is just a little too done.

Tue, 03/27/2012 - 14:19 | 2295020 Benjamin Glutton
Benjamin Glutton's picture

The FED will repurchase every poison investment it allowed WS to sell overseas during the Bush administration.



Tue, 03/27/2012 - 14:25 | 2295040 reTARD
Tue, 03/27/2012 - 20:46 | 2296093 Money 4 Nothing
Money 4 Nothing's picture

Yup, I own the Red Book from 18 years ago, hasn't changed, just available on video now.

Tue, 03/27/2012 - 14:54 | 2295107 reTARD
reTARD's picture

Time to play... Guess who said these quotes?
All propaganda has to be popular and has to accommodate itself to the comprehension of the least intelligent of those whom it seeks to reach.
How fortunate for governments that the people they administer don't think.
I use emotion for the many and reserve reason for the few.
If you tell a big enough lie and tell it frequently enough, it will be believed.
Make the lie big, make it simple, keep saying it, and eventually they will believe it.
The great masses of the people will more easily fall victims to a big lie than to a small one.
The victor will never be asked if he told the truth.
The day of individual happiness has passed.

Tue, 03/27/2012 - 15:21 | 2295218 Dien Bien Poo
Dien Bien Poo's picture

hermann goering? or Dick Cheny..i get those two so mixed up.

Tue, 03/27/2012 - 15:39 | 2295287 reTARD
reTARD's picture

Close... it's our socialist friend Adolf Hitler.

Tue, 03/27/2012 - 15:01 | 2295150 Crash2012
Crash2012's picture

Do we know if the Fed policy includes buying debt from:





North Korea?


... houston, we have a problem ...

Tue, 03/27/2012 - 15:08 | 2295181 Dien Bien Poo
Dien Bien Poo's picture

iranian debt, chinese stocks, north korean trade finance and japanese cars. get em while theyre hot.

Tue, 03/27/2012 - 15:37 | 2295278 mannfm11
mannfm11's picture

What are those 2 pigs eating, corn?  I wonder which handgrenade these guys bought and if the pin is still in?  I would have to think that they would have to have a guarantee from the ECB they would take these bonds back in the swap.  This is merely more evidence the real purpose of central banks is to blow each other and feed each other our hard earned money. 

Tue, 03/27/2012 - 15:40 | 2295297 RoadKill
RoadKill's picture

We cant let the Fed get away with this level of disclosure.  When did they buy the bonds they currently have.  How much do they hold?  Of what countries?  And how do current holdings compare to 6/30/2008 and pre-bond buying programs in EU.

Tue, 03/27/2012 - 15:55 | 2295360 Dermasolarapate...
Dermasolarapaterraphatrima's picture

This is an obvious bailout of banks who hold this C-R-A-P and pass the losses onto the taxpayers (or printing presses and then onto the taxpayers via infaltion).

Ben should just be more honest and admit he is doing it "to save American bankers." I might feel better about it then.

but then again, probably not.

Tue, 03/27/2012 - 16:19 | 2295466 roadhazard
roadhazard's picture

Isn't it great that America can help out Europe but helping average Americans is a strictly "bootstraps" deal.

Tue, 03/27/2012 - 16:24 | 2295484 PAUL LEO FASO
PAUL LEO FASO's picture

An odious debt is an odious till the end of time.

Repudiate all of this insanity, take back control of the Treasury and return all the money looted. Foloow the plan;


What is it going to take, another 26 trillion dollars out the door?

Tue, 03/27/2012 - 16:32 | 2295513 wattsnotsaid
wattsnotsaid's picture

Ron Paul's committee is holding a hearing on it this week.

Tue, 03/27/2012 - 18:24 | 2295827 CoolBeans
CoolBeans's picture

Loos like a CAPTION CONTEST to me.

That's toilet paper, yes?

Tue, 03/27/2012 - 18:42 | 2295874 goldinpenguin
goldinpenguin's picture

Thats a funny picture

Geithner's hair always looks the same , is it synthetic?

O'Bama appointing & reappointing these two menaces to society is criminal. jeezus, the thought just occurred to me that Mutt will probably find somebody worse

Tue, 03/27/2012 - 20:14 | 2296044 mendolover
mendolover's picture

Is it mean to say that I hope those two bastards choke on whatever it is they're stuffing in their front vents?  Sorry.

Tue, 03/27/2012 - 23:25 | 2296378 Lady Heather...UNCLE
Lady Heather...UNCLE's picture

Caption :

Bernanke  (furtively to Timmy behind napkin) : they overcooked my rice

Timmy: Only one thing to do then

Ben and Timmy (together) : QE3!!!

Wed, 03/28/2012 - 02:14 | 2296573 ruffles
ruffles's picture

Fuck them both

Thu, 03/29/2012 - 03:05 | 2299816 howardtlewisiii
howardtlewisiii's picture

Bernanke is worse than the worst rejected fourth wife. This guy hates the U.S. and wants to be beaten by a dozen football players.

Thu, 03/29/2012 - 03:06 | 2299817 howardtlewisiii
howardtlewisiii's picture

Bernanke is worse than the worst rejected fourth wife. This guy hates the U.S. and wants to be beaten by a dozen football players.

Thu, 03/29/2012 - 03:06 | 2299818 howardtlewisiii
howardtlewisiii's picture

Bernanke is worse than the worst rejected fourth wife. This guy hates the U.S. and wants to be beaten by a dozen football players.

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