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Meat Puppet

Bernanke Destroys Dollar Yet Again

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A "strong dollar policy"* is necessary to boost exports and cripple the competition. Not so much about debasing currency as gaining advantage on price. Force the Euro and Pound up and the US goods are that much more attractrive. Why buy AIRBUS if you can buy Boeing for less etc? With the world likely to head into a double dip orders will drop and those with the best price will win. The US needs to take Germany out of the picture if they can and the best way to do this is to boost the Euro.

*Low dollar relative to trading competition

Edited by Realistbear

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This is turning into a NIGHTMARE..............Trouble is China will NOT let them off the hook, a US bankupted like the CCCP is what she is after.....American forced to give up her MANY oversea bases

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This is turning into a NIGHTMARE..............Trouble is China will NOT let them off the hook, a US bankupted like the CCCP is what she is after.....American forced to give up her MANY oversea bases

The US (and the UK) have made China. Without us they would be nothing. If you look at where 73.4% of our consumer goods are made the magnitude of Chinese dependence becomes evident. They are hooked on Western capital buying their stuff. When the West stops buying they starve or sell to their old "friends" the Japs or their other "friends" the Koreans..

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http://www.nytimes.com/2010/09/22/business/economy/22fed.html?_r=1&ref=business

The Fed did make one important shift in its outlook, stating that inflation levels were at “levels somewhat below those those the committee judges most consistent, over the longer run, with its mandate to promote maximum employment and price stability.”

That statements clearly signaled the Fed’s belief that inflation was too low and that further action might be forthcoming soon.

But the central bank, led by its chairman, Ben S. Bernanke, put off a pivotal decision on whether to begin a big new push to stimulate the economy by creating money and buying large-scale purchases of Treasury securities, a strategy known as quantitative easing.

The Fed engaged in a big round of quantitative easing in 2009-10 by purchasing $1.4 trillion in mortgage-related securities and another $300 billion in Treasury debt. The actions helped lower long-term interest rates, which helps to stimulate the economy by lowering the cost of borrowing.

It appears that they are going to fund Obama directly.

Quite how that fits in with price stability I have no idea. They are too mutually contradictory policies in the current climate and the printing of new free funny money isn't going to solve anything.

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This is turning into a NIGHTMARE..............Trouble is China will NOT let them off the hook, a US bankupted like the CCCP is what she is after.....American forced to give up her MANY oversea bases

:blink: Remind us who holds the IOUs and who has the battleships?

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:blink: Remind us who holds the IOUs and who has the battleships?

Surely you mean the aircraft carriers? :P Far more potent than the humble battleship which was obsolete by WWII.

But then again are machine guns jam proof now and not over heat with continual use?

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FOMC Statement 9/21

From The Fed.... (with my comments, as usual)

Release Date: September 21, 2010

For immediate release

Information received since the Federal Open Market Committee met in August indicates that the pace of recovery in output and employment has slowed in recent months.

The economy has gone nowhere. We blew our wad, we're at ZIRP, and now we're in a liquidity trap. It feels really nasty too, kinda like Luke in the garbage chute. Oh, what's that noise?

Household spending is increasing gradually, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit.

Households spend until they default. Then they stop but it's not by choice.

Business spending on equipment and software is rising, though less rapidly than earlier in the year, while investment in nonresidential structures continues to be weak. Employers remain reluctant to add to payrolls.

Employers are figuring it out - we're screwed.

Housing starts are at a depressed level. Bank lending has continued to contract, but at a reduced rate in recent months. The Committee anticipates a gradual return to higher levels of resource utilization in a context of price stability, although the pace of economic recovery is likely to be modest in the near term.

I anticipate that if I stroke one off it'll be messy, but then again, maybe I'm impotent. But then here we are, three years into this, and not only has the FOMC not taken responsibility for what they did that caused the mess, they're still trying the same crap that didn't work in 2003 - except to blow another fraud-laced bubble.

Measures of underlying inflation are currently at levels somewhat below those the Committee judges most consistent, over the longer run, with its mandate to promote maximum employment and price stability. With substantial resource slack continuing to restrain cost pressures and longer-term inflation expectations stable, inflation is likely to remain subdued for some time before rising to levels the Committee considers consistent with its mandate.

It's called Deflation jackass.

The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels for the federal funds rate for an extended period. The Committee also will maintain its existing policy of reinvesting principal payments from its securities holdings.

God forbid we stop drinking. We might have DTs.

The Committee will continue to monitor the economic outlook and financial developments and is prepared to provide additional accommodation if needed to support the economic recovery and to return inflation, over time, to levels consistent with its mandate.

"Accommodation"? By doing what? You've already smashed long and short rates through the floor. Further "accommodation" does nothing other than further inhibiting lending. Why would a bank take risk by lending when it can simply borrow money for zero and buy Treasuries, then REPO those into more cash for more Treasuries? That's a zero-risk trade, right? (Hint: No it's not even though under bank accounting rules it counts as one, but the why and how is left as an exercise for the reader.)

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke; Sandra Pianalto; Eric S. Rosengren; Daniel K. Tarullo; and Kevin M. Warsh.

We'll never admit we're wrong - even as we go in the wood-chipper of history - feet first.

Voting against the policy was Thomas M. Hoenig, who judged that the economy continues to recover at a moderate pace. Accordingly, he believed that continuing to express the expectation of exceptionally low levels of the federal funds rate for an extended period was no longer warranted and will lead to future imbalances that undermine stable long-run growth. In addition, given economic and financial conditions, Mr. Hoenig did not believe that continuing to reinvest principal payments from its securities holdings was required to support the Committee’s policy objectives.

Now if Mr. Hoenig would simply say "doing this is destroying capital formation", we'd actually have a brain exhibited on the FOMC.

So far, no sign.

Denniger's little rant on the statement.

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Never underestimate the Chinese ability to deal with problems:

http://www.independent.co.uk/arts-entertainment/books/news/maos-great-leap-forward-killed-45-million-in-four-years-2081630.html

Mao's Great Leap Forward 'killed 45 million in four years'
By Arifa Akbar, Arts Correspondent
Friday, 17 September 2010
Mao Zedong presided over a regime responsible for the deaths of up to 45 million people
Mao Zedong, founder of the People's Republic of China, qualifies as the greatest mass murderer in world history, an expert who had
unprecedented access to official Communist Party archives said yesterday.

If the US (and the West) stop buying their stuff to prop their economy up they will turn inward and take out another 40 million peasants.

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The Fed won't be meeting again until after the elections. The Repugs and especially the Tea Baggers want to commit to austerity so Bernanke will have the green light to paper over the coming disaster. They are also more likely to take a hard line with China.

Can't see anyway at all that this can turn out well. Hope-onomics has failed miserably and the supply siders are going to get another chance to line their own pockets.

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What's below, posted at another forum earlier this week, sounds less like tin foil hattery by the day.

Global Financial System shutdown 12/24/10 to 1/2/11.

Conversion $100 [old USD] per 1¶ [New Bi-Metallic backed USD].

Currency convertibility window 1/3/11 to 1/29/11.

US backed debt instruments convert upon maturity.

Annual Bi-Metallic rate fixes set during a 4th quarter G-20 meeting, with the first such monetary conference to be held on 11/11/11.

Rate fixes and Monetary Policy for year 2011 as follows:

> Gold ¶1000/gram, Silver fix ¶50/gram.

> Liquidation of all insolvent entities permitted.

> Working Group on Financial Markets disbanded by first G20 meeting.

[End of BIS-091910 Offer]

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Never underestimate the Chinese ability to deal with problems:

http://www.independent.co.uk/arts-entertainment/books/news/maos-great-leap-forward-killed-45-million-in-four-years-2081630.html

Mao's Great Leap Forward 'killed 45 million in four years'
By Arifa Akbar, Arts Correspondent
Friday, 17 September 2010
Mao Zedong presided over a regime responsible for the deaths of up to 45 million people
Mao Zedong, founder of the People's Republic of China, qualifies as the greatest mass murderer in world history, an expert who had
unprecedented access to official Communist Party archives said yesterday.

If the US (and the West) stop buying their stuff to prop their economy up they will turn inward and take out another 40 million peasants.

The independent are lying, Mao's policies did not result in the deaths of 45 million Chinese. Mao's policies resulted in the deaths of low estimates of 60 million to whopper estimates like 130 million. 90 million is usually an accepted figure. But when you've got so many people 40 million 130 million whatever is chicken feed. It would be like using an H bomb on birmingham.

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Bottom line: the US have created, mostly out of thin air, a multi-trillion dollar property market. The Banksters have fed off it and have grown fat. It started to collapse and the government decided that the consequences of a complete collapse in property values would take down the economy. The problem is that QE of the order of 2TR is probably less than 5% of the size of the debt problem caused by HPI. The enormity of the problem is so great that the Fed really cannot do anything other than to hope the problem goes away. We have done exactly the same thing and created an HPI dependent economy that grew on the back of LIAR LOANS and all manner of fraudulent monetary "instruments" of the innovative kind. We and the US have lived high on the hog for years living on debt while we imported billions of goods from the Chinese (thereby making them a vassal state dependent on exports and Western purchasing).

The additional problem is that this state of affairs is not contained within the HPI Kings (the US and the UK) but has spread to most of the EU (apart from Germany).

We are at the end of a 300+ year cycle of credit growth based on fractional reserve banking (buying what you can't afford to pay for) and it has finally come home to roost. The ponzi is busted and the trillions involved are above and beyond what the West can cope with. Make no mistake, this is not a US problem, it is a Western problem as we have all participated.

I said it in 2007 and will say it again--we are in the midst of a structural collapse and the size of the black hole is not to be measured in 100's of billions but tens of trillions. Brown got one thing right: it did start in America. But it isn't going to remain there.

Edited by Realistbear

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What's below, posted at another forum earlier this week, sounds less like tin foil hattery by the day.

Global Financial System shutdown 12/24/10 to 1/2/11.

Conversion $100 [old USD] per 1¶ [New Bi-Metallic backed USD].

Currency convertibility window 1/3/11 to 1/29/11.

US backed debt instruments convert upon maturity.

Annual Bi-Metallic rate fixes set during a 4th quarter G-20 meeting, with the first such monetary conference to be held on 11/11/11.

Rate fixes and Monetary Policy for year 2011 as follows:

> Gold ¶1000/gram, Silver fix ¶50/gram.

> Liquidation of all insolvent entities permitted.

> Working Group on Financial Markets disbanded by first G20 meeting.

[End of BIS-091910 Offer]

Hi, this is interesting - where was it originally posted - the "bank holiday" has long been spoken about!!

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On another board this afternoon (still trying to locate the link) , a poster used the term 'Full Mugabe'. Well that is inspiring!

Seems that the US and all fiat currencies are heading that way in the race to the bottom. The US FOMC has just said to the rest of the world:

"Don't try it, ours is bigger than yours".

Anyway, in a similar spirit, I've prepared a graphic to illustrate what it's really like to turn on the presses, with some photos from Zimbabwe: Enjoy!

fullmugabe.png

Found it!

Credit to Dorkins for the term 'Full Mugabe' on this post...

Edited by Toto deVeer

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It was posted at Godlikeproductions forum. http://204.74.214.194/forum1/message1196106/pg1

I can believe the Yanks will do a sort of reset to wipe out external debt by only allowing their citizens and companies to convert to a new dollar.

But who would do business with the US again? As it isn't only China holding swathes of US dollars, the Chinese, Japanese, koreans, Russians Taiwanese and Africans all hold lots of $$

In Siberia Russians would ask me if I had any $ then Euros then £ before finally accepting Roubles.

The USA does this EVERYBODY is peeved with them and would you accept new dollars if you'd been burnt once?

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http://www.nytimes.c...=1&ref=business

It appears that they are going to fund Obama directly.

Quite how that fits in with price stability I have no idea. They are too mutually contradictory policies in the current climate and the printing of new free funny money isn't going to solve anything.

price stability = prices for ever going up.

You of all people should know :)

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The US (and the UK) have made China. Without us they would be nothing. If you look at where 73.4% of our consumer goods are made the magnitude of Chinese dependence becomes evident. They are hooked on Western capital buying their stuff. When the West stops buying they starve or sell to their old "friends" the Japs or their other "friends" the Koreans..

Wrong.

Wages in China are rising, and will continue to do so. In the future most of the goods produced in China will be consumed in China. The world economy is already decoupling.

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Wrong.

Wages in China are rising, and will continue to do so. In the future most of the goods produced in China will be consumed in China. The world economy is already decoupling.

When they look inward and decouple the Mandate of Heaven* will cycle round again and tens of millions of peasants will be killed in another progrom as they are of no use to the elite who need customers and not "parasites."

For now, the Chinese are economic vassals to their customers in the West. We have made modern China and given them their high rise buildings and Bentleys. The opiate of wealth that will lead to another cycle of destruction.

* http://en.wikipedia.org/wiki/Mandate_of_Heaven

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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