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China warns Federal Reserve over 'printing money'
Telegraph UK ^ | 27 May 2009 | Ambrose Evans-Pritchard

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 ...


TOPICS: Business/Economy; Crime/Corruption; Foreign Affairs; Front Page News; News/Current Events
KEYWORDS: blingbats; bonds; china; debt; dollar; fed; goldbugs; hardmoneytrolls; money; richardfisher; schifflist; treasuries; treasury
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To: lakertaker

..more like a frememy.


41 posted on 05/27/2009 10:40:09 AM PDT by norraad ("What light!">Blues Brothers)
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To: Zeddicus

Actually you can pull it out and pay taxes and penalties which average about 50%. Better 1/2 than none. For the record I am not advocating this.


42 posted on 05/27/2009 11:14:28 AM PDT by east1234 (It's the borders stupid! My new enviromentalist inspired tagline: cut, kill, dig and drill)
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To: wafflehouse; Leisler; PAR35; TigerLikesRooster; AndyJackson; Thane_Banquo; nicksaunt; ...
America is in for a real rude awakening.
43 posted on 05/27/2009 11:19:26 AM PDT by rabscuttle385 ("If this be treason, then make the most of it!" —Patrick Henry)
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To: DonaldC

Yep. They may be putting the brakes on us because our erected officiars can’t.


44 posted on 05/27/2009 11:24:15 AM PDT by b4its2late (There is always one more imbecile than you counted on.)
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To: Zeddicus; OB1kNOb
Things are going to get messy. I expect this to happen:

Gulp: U.S. to lose AAA debt rating?

That will mean higher interest rates and much greater debt. We can cut the blow in two ways: Print, print, print and inflate ala Weimar or raise taxes through the roof to service the debt and regain our rating.

Where does that leave investors? I suppose stocks are somewhat sheltered from inflation as you own a portion of a company (and not the dollar) but under both scenarios (inflation and taxation) the economy (and companies) take a hit. Gold and commodities work too but you don't want to put all you eggs in one basket.
So where then?
Foreign stocks and bonds?
Any particular sectors fair better than others? I would say health care, but, given the push for Obamacare and their behavior with the auto companies and banks, it seems a lot riskier than would otherwise be the case.

Is it any wonder so much investment $$$ is still on the sidelines. Seriously, what reasonable options are there?

45 posted on 05/27/2009 11:28:26 AM PDT by batter (Wolverines!)
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To: batter
Seriously, what reasonable options are there?

Yep. That's my predicament.

46 posted on 05/27/2009 11:31:27 AM PDT by OB1kNOb (I'm all for cap & trade. I want to cap government's power and trade it for a conservative one.)
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To: rabscuttle385

I think we are in the calm before the storm. The big waves are headed our way.


47 posted on 05/27/2009 11:31:43 AM PDT by unkus
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To: Petronski
Hey look what just happened to the 10 year treasury.

Not good. Predictable, but not good.

48 posted on 05/27/2009 11:52:26 AM PDT by NeoCaveman (control the teleprompter, control the world)
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To: rabscuttle385; hripka; Harrius Magnus; mojitojoe; Pelham; mom2twinsn2; LongLiveTheRepublic; ...
The Peter Schiff/Redistribution Watch Ping. (Washington Bankrupting our Nation by Spending your past, present and future money!)

Don't you wish you could print your own money? Why would China think Obama/Bernake would do this? Maybe they notice all Obama's spending 'pays for itself' except taxes on that 5%.

Thanks rabscuttle385 for ping.

49 posted on 05/27/2009 11:57:33 AM PDT by sickoflibs (Socialist Conservatives: "'Big government is free because tax cuts pay for it'")
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To: NoObamaFightForConservatives

My short answer would be ‘yes.’ We are entering what is looking more and more like some near-future science fiction novels in terms of how our society, government, and technology works and interacts.


50 posted on 05/27/2009 12:02:59 PM PDT by WoofDog123
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To: NeoCaveman
Look at this:


51 posted on 05/27/2009 12:03:24 PM PDT by Petronski (In Germany they came first for the Communists, And I didn't speak up because I wasn't a Communist...)
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To: sickoflibs

Well, I guess, as an American citizen and tax payer I am, by default, printing my own money. And... I expect to go broke because I know better but, for some reason, I just can’t seem to stop! The collective mind is out of control...


52 posted on 05/27/2009 12:03:53 PM PDT by April Lexington (Study the constitution so you know what they are taking away!)
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To: NeoCaveman
Not good. Not good at all. But, Geeee, all of the economists, according to the Yahoo story are predicting the end of the recession in Q4 of 09. Maybe its the end of the recession and the beginning of the collapse!
53 posted on 05/27/2009 12:05:18 PM PDT by April Lexington (Study the constitution so you know what they are taking away!)
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To: Petronski

We should have “came for the communists...” while we were in power. Now, they are coming for us!


54 posted on 05/27/2009 12:06:19 PM PDT by April Lexington (Study the constitution so you know what they are taking away!)
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To: hripka

Who would have thought that the day would come where China was giving the US advice is should follow and the US won’t do it?


55 posted on 05/27/2009 12:08:28 PM PDT by metmom (Welfare was never meant to be a career choice.)
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To: metmom

Who knew there would be a day where our government was to the Left of theirs?


56 posted on 05/27/2009 12:12:57 PM PDT by NeoCaveman (control the teleprompter, control the world)
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To: OB1kNOb; batter

Same predicament here. I am significantly in gold, but as you, don’t want to overweight. Though I have invested in the market my whole life, now I don’t totally trust the stock market, because of so much goobermint interference. Yet I fear if I leave cash on the sidelines for too long, I will begin to get hammered by serious inflation at some point.


57 posted on 05/27/2009 12:13:15 PM PDT by webschooner
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To: DoughtyOne
How did we get here? Is this where we want to be? Is there need for change to avoid this?

2009 QE? Necessary because of 2008 bank de facto nationalization. That was necessary because of intervention in rates which caused overleverage but also bank profits dependent on carry trade. That was thought to be necessary to fight the dot-com bust and 9/11. The dot-com boom was exacerbated by low rates to fight the Asian crisis, carry trade from Japan's bust-fighting measures, LTCM spillover, moral hazard causing abnormally low rates for GSE's, etc.

Can trace a lot back to Congress in the 70's through 90's. Also 1987 response to crash (market meddling and low rates including distortions in long term rates). Before that wage and price controls and leaving the gold standard. Only one simple change is needed: dont meddle in the markets, especially not in the credit markets.

58 posted on 05/27/2009 12:14:32 PM PDT by palmer (Cooperating with Obama = helping him extend the depression and implement socialism.)
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To: April Lexington

Seems like the 10-year bond rate is up 58% since Jan 20.

Nice job, Obamba.


59 posted on 05/27/2009 12:29:43 PM PDT by Petronski (In Germany they came first for the Communists, And I didn't speak up because I wasn't a Communist...)
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To: NeoCaveman

Oil is up too;

http://finance.yahoo.com/news/Oil-hits-6month-high-Saudi-rb-15361309.html?sec=topStories&pos=3&asset=&ccode=


60 posted on 05/27/2009 12:57:06 PM PDT by headstamp 2 (Spay or Neuter your liberal today!)
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