Skip to comments.China warns Federal Reserve over 'printing money'
Posted on 05/27/2009 8:28:25 AM PDT by hripka
Richard Fisher, president of the Dallas Federal Reserve Bank, said: "Senior officials of the Chinese government grilled me about whether or not we are going to monetise the actions of our legislature."
"I must have been asked about that a hundred times in China. I was asked at every single meeting about our purchases of Treasuries. That seemed to be the principal preoccupation of those that were invested with their surpluses mostly in the United States," he told the Wall Street Journal.
His recent trip to the Far East appears to have been a stark reminder that Asia's "Confucian" culture of right action does not look kindly on the insouciant policy of printing money by Anglo-Saxons.
Mr Fisher, the Fed's leading hawk, was a fierce opponent of the original decision to buy Treasury debt, fearing that it would lead to a blurring of the line between fiscal and monetary policy – and could all too easily degenerate into Argentine-style financing of uncontrolled spending.
However, he agreed that the Fed was forced to take emergency action after the financial system "literally fell apart".
(Excerpt) Read more at telegraph.co.uk ...
The Chicoms may be the US citizens best friend right now.
Ironic, isn’t it?
That's because YOU ARE MONETIZING THE DEBT you idiot. Hawk or not, you've got to realize the Chinese can see through "qualitative easement" to the real name "monetizing the debt."
I mean, I know the Fed can count on most people not noticing, but some of us HAVE noticed.
Don't fall for this "Red Chinese" bullsh!t either, they are superb merchantilists and they KNOW a bad investment on sight.
Bond market dislocation is just around the corner. When that happens, all hell is going to break loose.
[Fisher] has been running a fervent campaign to alert Americans to the "very big hole" in unfunded pension and health-care liabilities built up by a careless political class over the years.That indeed would be a very big hole.
"We at the Dallas Fed believe the total is over $99 trillion," he said in February.
$99 Trillion....I can’t even comprehend that number. At some point, somebody will have to say stop and that will be it. It will be terrible for those of us going through it, but it will have to be done.
Watch the TNX (essentially the ten-year Treasury x10).
And our new masters down the road. "The borrower is the lender's slave."
My question is, what does one do that has a large chunk of their 401K in a "stable" fund heavily invested in bonds to protect it from wild stock market swings? Ideas anyone?
The US is the North Korea of Public Spending. Warn us all you want! We WILL print money!
Could you flesh out what that means to us laymen?
So the Communists are scolding us on our growing socialist ways? Wonder what they know that we don’t? Let’s go to the tagline for that answer!
Not in this lifetime...China is a communist country and an enemy of this country. It is disgraceful that we have enriched China with our trade dollars so they are in a position to tell our government what to do. A powerful dangerous China is the end result of stupid shortsighted trade policies...that never made any sense.
1. You could go cash, in hopes of buying stocks very cheaply in the future.
2. You could go foreign bonds/bond funds if the value of the dollar scares you, as it does me
3. You could go with gold or silver, not the best investment but a good store of value.
4. Just about anything other than US Treasuries, as they are going to get killed.
Fearing it would lead to? The camel's nose was in the tent years ago - the rest already followed, and now he is rummaging through the fridge and sleeping in the bed. The treasury and fed are past the reach-around phase and are hurrying off to Massachusetts for nuptials before birthing and bailing out from the toilet their giant love-turd.
And yes, I understand their motivation - I don't agree with it though. In the view of the economic overlords, the government is essentially purchasing short term political stability at the expense of long term economic solvency. That is the gist of "saving capitalism from itself" - they think they can head off social unrest long enough for the economy to recover, and that the slower future economic growth post-recovery is a better fate than the attendant sociopolitical upheaval in the event that the $7 trillion shield between shit and fan is brought down (at which point, as they point out, we will pay out anyway).
Qualitative easement or quantitative easement?
Either way, it’s BS. The real name is “monetizing the debt.”
A better question is, what will you do when the .GOV seizes all private 401k assetts outright and sticks you with worthless IOUs in a new Social Security-type ponzi scheme?
Bonds essentially have no meaning or illusion of security anymore, as the federal government has now demonstrated the will and ability to completely ignore the rule of law and simply ignore the legitimate claims of senior bondholders.
I shut off inputs to my 401k months ago to prevent further loss, and I'm expecting to lose the entire balance, which I'm unable to yank so long as I'm still employed.
$99 trillion???? Even God couldn’t bail us out at this point.
Ammo: It’s the new currency.