Posted on 12/02/2011 8:59:01 AM PST by SeekAndFind
You are so off the mark it isn’t even funny.
Countries can’t buy....say commodities like oil without first converting their currencies to dollars before buying.
There are black markets and other agreements between BRIC countries who try to trade amongst themselves but the reserve currency is the US dollar for the large majority of all trading between countries. There is a reserve currency for a reason, so each floating currency rate (of different countries) can be converted to known dollar values making for a smooth and open transaction on a worldwide basis.
No. Not even a little.
It says, before all the listed banks including the foreign ones receiving bailout monies, that money was lent out under “Broad-Based Emergency Programs” (12/2007 through 7/2010). The dollar amounts are in Billions.
Did you even bother to read my post? TARP, through the Treasury, lent taxpayer funds to US banks.
The Federal Reserve, using money they created from thin air (not taxpayer funds), lent to US banks AND foreign banks that had American subsidiaries.
The Fed did liquidity swaps with other central banks.
If you don't understand any of those terms, or the differences between the entities involved, you'll continue to post bad info.
You are quoting some fantasy guidelines usurped by TARP..... It took a FOIA lawsuit by a newspaper and others to get the Federal Reserve to release these figures.
See, you're mixing up TARP and the Fed.
Let me know if I can clarify it anymore for you. Always glad to help.
I see in your mind everything is above board and transparent with no sleight of hand involved, just a prefect financial machine at work.
(So far) Before any lending of monies, they are sterilized through the Federal Reserve. Treasury tell the Federal Reserve what they want and the Treasury gets it. The fall guy is the Federal Reserve. If the Treasury or the President’s Plunge Protection Team is causing buying into the stock market or doing direct loans with foreign governments or having the Bank of Japan buy dollars, you will never know or understand how this banking system is manipulated.
Show me and explain where the SWAPs occurred that cover the entire amount of money forwarded to foreign banks listed in the table on page 131, I’ll be waiting. I’ll give you a clue...TARP overruled the Federal Reserve’s normal procedures. That is what the report is about and that is what you can’t comprehend.
Oil is just one commodity out of many. And again there is no requirement that producing countries trade in dollars. Except that the producing countries choose to only sell for dollars. They choose to, because the dollar is more stable.
Iraq used to accept Euros. Iran will take any currency. Venezuela will take other currencies. I bet Libya would have taken any currency. And contrary to the gloom and doom of the reserve currency phobics, it won’t be a disaster even if they somehow all abandoned the dollar at once, which is very unlikely. It will be a very slow process if it happens at all.
It’s an international agreement a country has to sign on to to participate in commodity markets to purchase in US dollars.
The example of BRIC trading amongst themselves with barter or currencies of their choosing is a violation of trading agreements because undercutting prices to sell to one and not the other creates havoc and hostility between trading partners.
It is call the rule-of-law but if you don’t get it, I don’t know what to tell you.
Why don't we correct your errors before you try to put words in my mouth?
Treasury tell the Federal Reserve what they want and the Treasury gets it.
Huh? Please explain what you mean.
If the Treasury or the President’s Plunge Protection Team is causing buying into the stock market or doing direct loans with foreign governments
The Treasury would need to get approval from Congress before loaning to a foreign government. Show me the vote that did whatever you think the Treasury was lending.
Show me and explain where the SWAPs occurred
Look on the Fed website. I gave you the link for the first week of swaps. Look week by week moving forward.
that cover the entire amount of money forwarded to foreign banks listed in the table on page 131,
Swaps are different than loans to banks.
I’ll give you a clue...TARP overruled the Federal Reserve’s normal procedures.
TARP was run by the Treasury. Stop giving me clues, it's clear you're short a few dozen.
That is what the report is about and that is what you can’t comprehend.
The report is about the Fed, not TARP. The Fed didn't do TARP.
Wow! That's funny.
I suggest you read up on international commodity markets and see what it takes to buy oil or wheat or minerals. It’s unbelievable the amount of US dollars changing hands every hour or minute for that matter...because the it’s the world’s reserve currency and dwarfs any other means being used such as black markets, gold, barter, etc.
It would be quicker if you showed me the "international agreement a country has to sign on to to participate in commodity markets to purchase in US dollars".
Thanks!
When Congress passed TARP they gave Secretary of State Paulson carte blanche to spend the monies anyway he saw fit without being prosecuted for his decisions. Read the the bill/law. You should already know that was the core of the legislation. Paulson was responsible for giving loans to foreign banks because Congress and the President (signed) allow it with TARP.
On page 131 of this report they didn’t list the loans to the foreign banks in a SWAP Lines column. Read the table heading note.
Euro banks and the IMF don’t go begging to the Federal Reserve, just recently, they first go begging to US Treasury Secretary and/or President of the United States for funding then the Federal Reserve is instructed on what to do and what to accomplish albeit swap-lines, (at the time) buying crap paper (derivatives), direct loans, funding private businesses like AIG, anything that might threaten the downfall of world banking was supported by throwing money at it.
Congress has oversight of the Federal Reserve. The Federal Reserve can’t do whatever it wants. Needs to give notice to the US Treasury and US Treasury has to notify Congress. Both the Federal Reserve and US Treasury report to Congress during regularly scheduled hearings.
Again, after the 700 billion TARP was approved, then the US Treasury overruled the Federal Reserves guidelines and it was a money free for all, spending 16 trillion according to the GAO. Couldn’t have been done with the passage or TARP. Really has nothing to do with the Federal Reserve, the article is all about TARP, the Federal Reserve is just he fall guy. A GSE (Government Sponsored Enterprise) approved by Congress with jurisdiction and oversight.
You will need to read up on the President’s Plunge Protection Team that has authority to calm and stabilize the markets...http://www.answers.com/topic/working-group-on-financial-markets
You bet.
Paulson was responsible for giving loans to foreign banks because Congress and the President (signed) allow it with TARP.
No TARP loans went to foreign banks.
On page 131 of this report they didn’t list the loans to the foreign banks in a SWAP Lines column.
That's good, because Fed loans to foreign banks are different than Fed swaps with other central banks.
Congress has oversight of the Federal Reserve.
Congress can dissolve the Fed, change the Fed's mandate, do lots of things to the Fed, but they can't dictate what the Fed does day to day. Under current law.
The Federal Reserve can’t do whatever it wants.
Sure it can, as long as they follow current law.
Needs to give notice to the US Treasury and US Treasury has to notify Congress.
Interesting theory. Can you prove it?
Again, after the 700 billion TARP was approved, then the US Treasury overruled the Federal Reserves guidelines
Keep repeating your silly claim. TARP has nothing to do with the Fed.
it was a money free for all, spending 16 trillion according to the GAO.
The Treasury only spent the $700 billion authorized by Congress. The Treasury did not spend $16 trillion.
Couldn’t have been done with the passage or TARP.
The Fed can spend and loan money without TARP.
Really has nothing to do with the Federal Reserve, the article is all about TARP,
TARP didn't even break $1 trillion. And the Fed wasn't involved with TARP.
You will need to read up on the President’s Plunge Protection Team
You're just full of jokes today.
The World’s ‘Reserve’ Currency Mandate is the US dollar. Everything is priced and traded in US dollars. If you have pesos and want to buy a barrel of oil on the open market then you first have to convert pesos to the US dollar value at time of purchase. FOREX markets track foreign currency values against the US$.
From: http://www.answers.com/topic/foreign-exchange-market#ixzz1fRuHXVrr
On the spot market, according to the 2010 Triennial Survey, the most heavily traded bilateral currency pairs were:
EURUSD: 28%
USDJPY: 14%
GBPUSD (also called cable): 9%
and the US currency was involved in 84.9% of transactions, followed by the euro (39.1%), the yen (19.0%), and sterling (12.9%) (see table). Volume percentages for all individual currencies should add up to 200%, as each transaction involves two currencies.
Trading in the euro has grown considerably since the currency’s creation in January 1999, and how long the foreign exchange market will remain dollar-centered is open to debate. Until recently, trading the euro versus a non-European currency ZZZ would have usually involved two trades: EURUSD and USDZZZ. The exception to this is EURJPY, which is an established traded currency pair in the interbank spot market. As the dollar’s value has eroded during 2008, interest in using the euro as reference currency for prices in commodities (such as oil), as well as a larger component of foreign reserves by banks, has increased dramatically. Transactions in the currencies of commodity-producing countries, such as AUD, NZD, CAD, have also increased.
......
A bit dated but notice how there is interest in using other currencies like the Euro to price commodities but you can see what a meltdown is happening there forcing everyone back to US$ commodity pricing. Probably back above 90% for commodities price in US dollars now.
If you want to be taken seriously, answers.com isn’t helping your cause.
You are on your own now. Can’t help you if you refused to learn...
The Working Group on Financial Markets (also, President’s Working Group on Financial Markets, the Working Group, and colloquially the Plunge Protection Team) was created by Executive Order 12631,[1] signed on March 18, 1988 by United States President Ronald Reagan.
The Group was established explicitly in response to events in the financial markets surrounding October 19, 1987 (”Black Monday”) to give recommendations for legislative and private sector solutions for “enhancing the integrity, efficiency, orderliness, and competitiveness of [United States] financial markets and maintaining investor confidence”.[1]
As established by Executive Order 12631, the Working Group consists of:
The Secretary of the Treasury, or his designee (as Chairman of the Working Group);
The Chairman of the Board of Governors of the Federal Reserve System, or his designee;
The Chairman of the Securities and Exchange Commission, or his designee; and
The Chairman of the Commodity Futures Trading Commission, or his designee.
Keep posting stuff that doesn’t prove your claims. LOL!
Good night.
Starting and running a commodities exchange or any other exchange is easy. Getting people to participate in investments denominated in your itty bitty country’s currency, not so easy.
I don’t see how your comments are that relevant to this thread anyway.
The FED helps world central banks because the U.S. economy is 1/5 of world GDP, not because most commodity transactions are executed in dollars.
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