Posts Tagged ‘quantitative easing’

Things More Worrisome than AGW: Financial Crisis

Sunday, September 25th, 2011

Source:  London Telegraph

Plan B: Flood the markets

Meeting halls A and B in HQ1 of the International Monetary Fund’s concrete plaza of buildings in Washington are a drab affair. Bare walls, muted browns and hovering interpreters’ booths perfectly capture the characterless functionality of the world’s economic watchdog.

For the finance ministers and central bank governors from the world’s leading 20 countries who were dining in the hall that night, however, the 1970s minimalism was wholly appropriate. Talk could turn to austerity without the jarring distraction of vaulting chandeliers and priceless art.

For George Osborne and Charlie Bean, the Bank of England deputy Governor who was standing in for Sir Mervyn King, there was an added poignancy. The construction of meeting hall A and B was reputedly financed by the interest payments Britain made on the £3.9bn IMF loan the country took in the dark days of 1976 – the era of the three day week and 25pc inflation. (more…)

Things More Worrisome than AGW: A Glimpse at Your Future

Thursday, July 7th, 2011

Source:  Money Morning

By Martin Hutchinson

At the end of last month, the U.S. Federal Reserve brought down the curtain on its $600 billion “quantitative easing” initiative, a U.S. Treasury-bond-purchase program that investors liked to refer to as “QE2.”

Fed Chairman Ben S. Bernanke has indicated that he does not intend to carry out a follow-up “QE3″ program.

But here’s the reality: The U.S. federal deficit is running at about $1.6 trillion, meaning we need to sell a lot of Treasury bonds to finance the shortfall. So if the Treasury-bond market gets a case of “indigestion” – meaning there aren’t enough buyers to fulfill our massive financing needs – many folks believe that Bernanke will have to step in with the-much-talked-about “QE3″ bond-buying program.

But Ben, please be forewarned: If you do this, our future is clear …

A Glimpse of Our Future

The year is 2015, and it’s late in the month of June. Central bank policymakers have been meeting for two days. Now it’s late in the afternoon of that second day, and Bernanke’s traditional press conference is set to start at any moment. Investors the world over have stopped everything to hear what the U.S Fed leader has to say. (more…)

Things More Worrisome Than AGW: Obama Misinforming Public About U.S. Dollar and Yuan

Friday, January 21st, 2011

Opinion

Source:  NAI

President Obama’s comments on Wednesday in a joint press conference with Chinese President Hu Jintao, misinformed the public about potential changes in foreign exchange rates and their effects on U.S. citizens. Obama on Wednesday said that he would like to see the Chinese yuan appreciate faster in value. While Hu indicated that China is committed to allowing the free market to better dictate the value of the yuan, Obama said China is implementing their steps to allow the yuan to appreciate “not as fast as we’d like.”

For years, the U.S. has been criticizing China by calling them “currency manipulators”. The fact is, the Federal Reserve is the real currency manipulator because their actions will soon lead to a U.S. Hyperinflationary Great Depression that destroys the lives of all Americans who aren’t prepared for life with a worthless U.S. dollar. All China is doing is pegging the yuan to the U.S. dollar so that their product manufacturers and exporters can maintain some level of stability. However, the U.S. is using this as an excuse to explain its rapidly deteriorating export market. (more…)