Countdown until Obama leaves Office: 569 days as of June 30, 2011.
Posted on 06/29/2011 9:13:26 PM PDT by Razzz42
"The Federal Reserve, amid persistent worries about Europe's sovereign debt crisis, last week quietly approved the extension of a crisis-lending program that allows the European Central Bank to tap the U.S. for dollars, Federal Reserve Bank of St. Louis President James Bullard said.
The Fed's dollar-lending agreements with the ECB—as well as the central banks of England, Canada, Japan and Switzerland—were scheduled to expire Aug. 1. The Fed and other central banks haven't yet disclosed renewal of the agreements, known as swap lines..."
(Excerpt) Read more at online.wsj.com ...
Last time around the Federal Reserve loaned foreign banks $600 billion.
Lets borrow from China and loan the Euros the money so they can give it to Greece before they go broke once more. What a plan.
Isn’t this the same as QE?
That is what I was thinking when I read the headline. Doesn’t seem very well thought out, does it?
“Isn’t this the same as QE?”
Sort of, this money will be paid back (don’t ask me how).
Wait for further details and let’s see how they spin it but (overseas) the way I understand it is that money/credit is getting tight again as hoarding is taking place via money market withdrawals so this round of lending (again) goes first to foreign central banks for a fee and in turn lent to the local commercial banks for a larger fee.
The US$ index has been going down all day, now around 74.
Here at home we will get more QE when rioting in the streets starts IMHO.
...should have said the US$ index has been going down since Monday, was at 76.
I thought it was 650; you can bet it is actually one hell of a lot more than that, but not to worry, when they steal lib’s oil they can pay it all back, but of course the people in Libya will be well taken care of with repackaged dog food.
What? We can just keep printing more $$ forever.
There’s no problem. /sarc
International QE. (or global to use today’s stupid word that tries to do away with national sovereignty in sheeples minds by coining goofy words).
The Fed is the only real buyer of Treasuries at this point.
They are so incredibly confused on economics that they have lost track of the Three-card-monte / ponzi scheme of QE. They forgot that national boundaries do matter. Even worse than QE of dollars within the U.S. is QE of dollars to other nations, who need to buy things from us - or buy perhaps raw materials like food or oil - in order to make use of the dollars. This will further push up the prices of raw materials as these hot dollars are borrowed and then invested. They may also inflate stock markets. Long story short, the inflation may well bounce back and hit them in the face like hitting a basketball with a baseball bat.
The sooner this is all unwound the better.
Countdown until Obama leaves Office: 569 days as of June 30, 2011.
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