Jump to content
Join the Unexplained Mysteries community today! It's free and setting up an account only takes a moment.
- Sign In or Create Account -

u.s. Federal reserve pumps £100 billion into


chemical-licker

Recommended Posts

http://www.dailymail.co.uk/pages/live/arti...in_page_id=1811

U.S. Federal Reserve pumps £100 BILLION into markets

linked-imageThe Federal Reserve is working to stave off pressure in financial markets that could also affect Britain

The U.S. Federal Reserve has pumped $200billion (£100billion) into markets in an attempt to stave off further pressure on the economy.

The Federal Reserve said that with pressure mounting again in financial markets, it was expanding a securities lending program and will accept a broader range of securities as collateral.

Under the new deal - the Term Securities Lending Facility (TSLF) - the Federal Reserve will lend up to $200 billion (£100 billion) of Treasury securities to primary dealers secured for a term of 28 days, rather than overnight as under the current programme.

The range of collateral the Fed expects in return has been increased to include federal agency debt, federal agency residential-mortgage-backed securities (MBS), and non-agency AAA/Aaa-rated private-label residential MBS, according to a Fed statement.

The U.S. central bank said the purpose of its latest action was to "promote liquidity in the financing markets for Treasury and other collateral and thus to foster the function of financial markets more generally." The money will oil the market machine, allowing transactions to flow more easily.

The new lending facility will operate through weekly auctions that will start on March 27, the Fed said. It said it still was consulting primary dealers regarding the specific design of an auction.

The Fed said it was cooperating with other central banks, including the Bank of Canada, Bank of England, European Central Bank and the Swiss National Bank on steps to deal with pressures in global financial markets.

It announced that its policy-setting Federal Open Market Committee has authorized increases in existing swap lines with the European Central Bank and the Swiss National Bank.

and just where does this amount of money come from? oh yeah created out of thin air by the ones that own the world, wish i could just create money outta thin air like the rulers can :w00t:

Link to comment
Share on other sites

 
  • Replies 24
  • Created
  • Last Reply

Top Posters In This Topic

  • questionmark

    8

  • Dusty Digital

    5

  • Atheist God

    3

  • stevewinn

    3

and just where does this amount of money come from? oh yeah created out of thin air by the ones that own the world, wish i could just create money outta thin air like the rulers can :w00t:

what do you mean?, are the US just printing new money? so if they want something but dont have the money, they just print the amount they need? is this how it works?

Link to comment
Share on other sites

what do you mean?, are the US just printing new money? so if they want something but dont have the money, they just print the amount they need? is this how it works?

The short answer? YES

Link to comment
Share on other sites

what do you mean?, are the US just printing new money? so if they want something but dont have the money, they just print the amount they need? is this how it works?

dont know if you were being sarcastic or not, but yeap this is how it works :yes: and then you got to ask a load more questions.

i told my brother this and he is a working man loves the queen and england, even he couldn't quite understand, i had to point it out and give some evidence to back it up.

Just think about it, how much are we all debt by, and where did this money come from? its an illusion, designed to keep all of us humans in our place so the rulers can manipulate wars and suppress information and keep us in fear.

go on click it and be amazed. then can you handle the truth. sorry :D
Link to comment
Share on other sites

dont know if you were being sarcastic or not, but yeap this is how it works :yes: and then you got to ask a load more questions.

i told my brother this and he is a working man loves the queen and england, even he couldn't quite understand, i had to point it out and give some evidence to back it up.

Just think about it, how much are we all debt by, and where did this money come from? its an illusion, designed to keep all of us humans in our place so the rulers can manipulate wars and suppress information and keep us in fear.

go on click it and be amazed. then can you handle the truth. sorry :D

Cheers for the replies, Chem, Q, no i really didnt know, i thought if a country needed money before they printed it, the amount needed had to be tied in with the economy or such like? so how come the government US or UK just dont keep printing money? is it because after a while the money would be worthless? and it would more or less do away with the need for?

gonna watch ya youtube link.

Link to comment
Share on other sites

Cheers for the replies, Chem, Q, no i really didnt know, i thought if a country needed money before they printed it, the amount needed had to be tied in with the economy or such like? so how come the government US or UK just dont keep printing money? is it because after a while the money would be worthless? and it would more or less do away with the need for?

gonna watch ya youtube link.

Well, let me put it this way... the last one printing money every time he was short was a certain Idi Amin... we know what wonders it did to the Ugandan economy.

Link to comment
Share on other sites

Well, let me put it this way... the last one printing money every time he was short was a certain Idi Amin... we know what wonders it did to the Ugandan economy.

thought so,

Link to comment
Share on other sites

That just shows you that our government has no cents! They have lots of bucks though...

Link to comment
Share on other sites

thought so,

BTW, today we noticed the consequences of the printing, you need to pay $1.55 for every Euro...and all the while Germany beats one export record after the next (+9% in January)... so much for helping the US economy.

Link to comment
Share on other sites

BTW, today we noticed the consequences of the printing, you need to pay $1.55 for every Euro...and all the while Germany beats one export record after the next (+9% in January)... so much for helping the US economy.

A lower dollar helps U.S. exports.

Link to comment
Share on other sites

A lower dollar helps U.S. exports.

Or so they say....

The increase of US imports went into countries of the dollar zone, that means in plain English, they did not benefit from the weak dollar but from NAFTA, see here:

http://www.commerce.gov/ssLINK/prod01_005364

Edited by questionmark
Link to comment
Share on other sites

Or so they say....

The increase of US imports went into countries of the dollar zone, that means in plain English, they did not benefit from the weak dollar but from NAFTA, see here:

http://www.commerce.gov/ssLINK/prod01_005364

I'm a bit confused by "the dollar zone". Your link mentions strong growth in exports into Mexico and Canada (NAFTA countries I assume), and interestingly enough the largest growth came from China, definitely not NAFTA. But unless I'm way behind on my homework, Canada and Mexico still have their own currencies. While U.S. exports no doubt also benefit from NAFTA, I don't see why this rules out the effect of the weak dollar?

Link to comment
Share on other sites

 
I'm a bit confused by "the dollar zone". Your link mentions strong growth in exports into Mexico and Canada (NAFTA countries I assume), and interestingly enough the largest growth came from China, definitely not NAFTA. But unless I'm way behind on my homework, Canada and Mexico still have their own currencies. While U.S. exports no doubt also benefit from NAFTA, I don't see why this rules out the effect of the weak dollar?

Right, but see where what went. China is not NAFTA but has its currency pegged to the dollar, that means dollar goes down, yuan goes down and keeps its exchange ratio with the dollar. No benefit from a weaker dollar there.

NAFTA is interesting because it was going to happen anyway, American products without import duties are now cheaper in Canada and Mexico then European products (for example) with import duties. So that increase is not due to the weak dollar but to the abolishing of import duties.

If the significant export increase would have been to Asia, Africa or Europe then it would be due to a weak dollar. But so far that has not happened. All the contrary, the import of European goods by the US is increasing.

Link to comment
Share on other sites

Right, but see where what went. China is not NAFTA but has its currency pegged to the dollar, that means dollar goes down, yuan goes down and keeps its exchange ratio with the dollar. No benefit from a weaker dollar there.

NAFTA is interesting because it was going to happen anyway, American products without import duties are now cheaper in Canada and Mexico then European products (for example) with import duties. So that increase is not due to the weak dollar but to the abolishing of import duties.

If the significant export increase would have been to Asia, Africa or Europe then it would be due to a weak dollar. But so far that has not happened. All the contrary, the import of European goods by the US is increasing.

Fair enough. I would concede that the growth of exports to Canada and Mexico is probably largely caused by the reduction of barriers (though I'm still not convinced that especially future numbers won't be affected by the weak dollar as well). I expect that rising exports to China probably have as much to do with growing chinese income as with the exchange rate. I checked on wikipedia and apparently the remnibi is no longer pegged to the dollar though, but rather to a basket of currencies:

"China's currency, which for the previous decade had been tightly pegged at 8.2765 yuan to the U.S. dollar, was revalued on July 21, 2005 to 8.11 per U.S. dollar. Following the removal of the peg to the US dollar and pressure from the United States, the People's Bank of China also announced that the renminbi would be pegged to a basket of foreign currencies, rather than being strictly tied to the U.S. dollar, and would be allowed to float trade within a narrow 0.3% daily band against this basket of currencies. The PRC has stated that the basket is dominated by the U.S. dollar, euro, Japanese yen and South Korean won, with a smaller proportion made up of the British pound, Thai baht, Russian ruble, Australian dollar, Canadian dollar and Singapore dollar.

As of February 29, 2008 the renminbi traded at 7.1058 yuan per U.S. dollar which is a 16.5% increase since the removal of the peg."

wikipedia on remnibi

Much like interest rate changes, the positive effects of a weak dollar also come with a time lag. Neither imports of exports react immediately to exchange rate changes (although the prices do), but rather over time (because today's imports and exports have largely been ordered atleast 6 months ago). What I mean by a weak dollar helping exports is of course that when the dollar weakens, american products become cheaper for foreigners to buy. Unless inflation eats away the benefit (which is possible though I think unlikely) I don't understand why you would disagree?

Link to comment
Share on other sites

If people think that this is a way out they are wrong.

Almost all major sectors are being hit banking, housing, retail, cars, construction, manufacturing and the list goes on. Factor these things in with a devaluing dollar, trillion dollar wars, among other factors and you have a recipe for disaster.

For most people now the idea of another great depression seems impossible but it's not. Most people have become so accustomed to their way of lives now that they could not conceive what such a scenario would be like. The way things are going it certainly seems like the US is well on it's way to triggering a new global economic depression.

Link to comment
Share on other sites

I don't understand why you would disagree?

Because the US is already exporting what others want, high dollar or not. Do you see an American car competing with Daimler Benz...or even Fiat? Or a US made TV (is there still such a thing?) with a Goldstar? Even Airbus is getting government contracts that Boeing thought they had for sure.

The demand is not going to increase significantly because it is cheaper. It will only increase if it gets better at the same time. Which was the main reason for the trade imbalance to start with... the others produced better quality and American production was discontinued.

Then you are forgetting the factor energy (which makes a big part of manufacturing costs nowadays) while (oil) energy has increased from $30 a barrel to $105 a barrel for Americans, at the same time it has only increased from 50 euros to 70 euros a barrel, which means that there the cost have increased significantly less for an European manufacturer... which means that they can not only keep their prices but keep highly profitable.

If I may say it rudely: The only place where price goes before quality is in discount stores... and they are full of Chinese wares.

Link to comment
Share on other sites

If you think there is some new global economic depression that is going to happen anytime soon then hear me out:

You are an idiot.

Do you honestly think that after the infamous "Great Depression" and other economic troubles for the 70 or so years that it has been have taught us absolutely nothing?

Man is an inconceivable paradox of conflict but somehow man manages to learn a thing or two along the way that abridges the trench of that paradox.

It may not seem like they are doing are great job at avoiding an economic depression, but the thing we have that wasn't available during the "Great Depression" is the knowledge of how and why it happened and a rudimentary solution to fix it before things get worse. People are not in some "rut" about their fantastic lives and they ARE able to perceive living in a world like that so you can imagine the things that would be done to avoid it.

We call you crazy people alarmists.

Link to comment
Share on other sites

Because the US is already exporting what others want, high dollar or not. Do you see an American car competing with Daimler Benz...or even Fiat? Or a US made TV (is there still such a thing?) with a Goldstar? Even Airbus is getting government contracts that Boeing thought they had for sure.

The demand is not going to increase significantly because it is cheaper. It will only increase if it gets better at the same time. Which was the main reason for the trade imbalance to start with... the others produced better quality and American production was discontinued.

Then you are forgetting the factor energy (which makes a big part of manufacturing costs nowadays) while (oil) energy has increased from $30 a barrel to $105 a barrel for Americans, at the same time it has only increased from 50 euros to 70 euros a barrel, which means that there the cost have increased significantly less for an European manufacturer... which means that they can not only keep their prices but keep highly profitable.

If I may say it rudely: The only place where price goes before quality is in discount stores... and they are full of Chinese wares.

Thats a very good point about oil prices. I hadn't thought of that.

I also agree that price rarely goes before quality, but that hardly means that price doesn't matter. While there are certain products that other countries have a definite advantage over the U.S. in, most of your export products' demands are hardly independent of price.

I found some interesting statistics you might want to check out: U.S. trade in goods and services

Especially the division of U.S. exports is interesting U.S. exports of goods by end-use and commodity

There are a few very worrying things there, especially the large part played by petroleum products and civilian aircrafts. I would imagine that the high cost of oil would reduce the export of those further, and you already mentioned the mess with airbus and boeing (which I think is more politics than anything else nowadays)

However, the data also shows that the U.S. is hardly dependent of one or two products for its exports, and the way I see it, many of the commodities' demand would react to changes in prices. Keep in mind also that a weak dollar (if it's perceived as permanent) also makes american labor cheap. While the U.S. is probably not going to compete in assembly line jobs, American productivity of labor is still top notch in the world.

Link to comment
Share on other sites

If you think there is some new global economic depression that is going to happen anytime soon then hear me out:

You are an idiot.

Do you honestly think that after the infamous "Great Depression" and other economic troubles for the 70 or so years that it has been have taught us absolutely nothing?

Man is an inconceivable paradox of conflict but somehow man manages to learn a thing or two along the way that abridges the trench of that paradox.

It may not seem like they are doing are great job at avoiding an economic depression, but the thing we have that wasn't available during the "Great Depression" is the knowledge of how and why it happened and a rudimentary solution to fix it before things get worse. People are not in some "rut" about their fantastic lives and they ARE able to perceive living in a world like that so you can imagine the things that would be done to avoid it.

We call you crazy people alarmists.

While I agree with you that there is not going to be a great depression again, I think your argument is way off.

In hindsight we have some idea of why the great depression happened, (and many of latter day crises as well) but there are conflicting theories about all of them. Some blame free markets, some blame government intervention. Some blame debt, some blame underinvestment. Furthermore, the knowledge of why something happened some 70 years ago, in a completely different world is less of a help today than you might think. You seem to view history as repeating itself, hence we learn from past mistakes, when what really happens is that in each crisis we deal with different world conditions.

Link to comment
Share on other sites

If you think there is some new global economic depression that is going to happen anytime soon then hear me out:

You are an idiot.

Do you honestly think that after the infamous "Great Depression" and other economic troubles for the 70 or so years that it has been have taught us absolutely nothing?

This depression would be caused by completely different circumstances. To put it simply people have yet to learn from there mistakes this time and like the first depression a lot will be learned.

It is no secret to many of us who pay attention to the global economy that a huge downfall is an inevitability unless major economic reforms take place.

Man is an inconceivable paradox of conflict but somehow man manages to learn a thing or two along the way that abridges the trench of that paradox.

It may not seem like they are doing are great job at avoiding an economic depression, but the thing we have that wasn't available during the "Great Depression" is the knowledge of how and why it happened and a rudimentary solution to fix it before things get worse. People are not in some "rut" about their fantastic lives and they ARE able to perceive living in a world like that so you can imagine the things that would be done to avoid it.

Eventually you hit a point of no return economically when a bubble is allowed to reach astronomical heights. These economic bubbles have to be popped while they are within reason and this never occurred as a result of poor economic policy over the last 3 decades.

Fact is the markets are different now then they were in 29 and nearly completely globalized. What ever information was gained from the 29 crash is no longer applicable to the current situation the global markets are facing.

I think now why it's so hard to accept that the situation is deadly serious is because A: The media downplays it and B: Almost no one alive has experienced a depression. The only US channel I have seen even mention a depression was CNN a couple of weeks ago when they had John Williams on from Shadow Stats.

We call you crazy people alarmists.

I call myself a smart investor who has put his cash into liquid assets and some gold so that when things get to ****ed I'm still ok.

There is no reason for name calling just because you disagree, your free to do so but don't be rude.

There were people like me in 28/29 who started trying to alarm people that the market stunk and was going down, they were ridiculed as well. Many of these people locked their investments up and weathered through the storm and the exact same thing is happening now.

Sorry if most of you can't appreciate the situation like I do... I see it as an investment opportunity buying up economies for pennies on the dollar and restarting the economy.

It's not all doom and gloom but it will be a rough ride for the first year.

I do not think however that this depression will be instantaneous like in 29, it will happen over a short period of time like maybe a few months to a year and then after everything bottoms out it will stay that way for another 1-10 years before things pick up or some major war etc breaks out.

Link to comment
Share on other sites

Not meaning to bump this topic too far but I want to add that I didn't post all that I wanted to post last night as it was late when I had.

An economy is much like a roller coaster in the sense that that GDP is constantly shifting between recession and inflation. The the Federal Reserve works with what is available within the fiscal policy to keep the economy from falling to low or climbing to high but occasionally that dip either DOES go to high or low and the economy suffers. My only fear is that Bush will keep putting us in debt and the next president won't know what to do to fix it. What is it...9 trillion dollars? I LOVE the idea of the USA but I HATE how some people handle capitalism. Which is one reason why I plan on moving to another country where my money can be well spent to live out my days until I die(even if it is of something that could have been fixed by doctors in the US).

Maybe I should dilly dally my way to Italy for another few years and skate it out.

And I apologize for being so bland when I said "You're an idiot." But if you read where most of my posts are you should understand that the word "idiot" means much more to me than your IQ. And by no means am I insulting anyones economic ideology.

Link to comment
Share on other sites

If you think there is some new global economic depression that is going to happen anytime soon then hear me out:

You are an idiot.

We call you crazy people alarmists.

In hindsight we have some idea of why the great depression happened,

Not meaning to bump this topic too far but I want to add that I didn't post all that I wanted to post last night as it was late when I had.

An economy is much like a roller coaster in the sense that that GDP is constantly shifting between recession and inflation. The the Federal Reserve works with what is available within the fiscal policy to keep the economy from falling to low or climbing to high but occasionally that dip either DOES go to high or low and the economy suffers. My only fear is that Bush will keep putting us in debt and the next president won't know what to do to fix it. What is it...9 trillion dollars? I LOVE the idea of the USA but I HATE how some people handle capitalism. Which is one reason why I plan on moving to another country where my money can be well spent to live out my days until I die(even if it is of something that could have been fixed by doctors in the US).

Maybe I should dilly dally my way to Italy for another few years and skate it out.

And I apologize for being so bland when I said "You're an idiot." But if you read where most of my posts are you should understand that the word "idiot" means much more to me than your IQ. And by no means am I insulting anyones economic ideology.

I don't know where people get this morbid idea of the great depression popping up again. There was a big difference between then and now:

The whole world was dependent on loans FROM the US in 1929.. when the US bellied up so went the whole world with it.

In 2008 the US needs loans from the world. If the US bellies up again there just will be some write downs, the Chinese will be loosing its best customer and the rest of the world will go about its business, which will be reduced between 1-12% depending on the country. Nothing dramatic. Except in America. So no great depression this time.

Link to comment
Share on other sites

We call you crazy people alarmists.

A few years ago we were alarmists, now we're realists. A depression in the US will probably happen in a few years. The world will be in a recession.

Link to comment
Share on other sites

I don't know where people get this morbid idea of the great depression popping up again. There was a big difference between then and now:

The whole world was dependent on loans FROM the US in 1929.. when the US bellied up so went the whole world with it.

In 2008 the US needs loans from the world. If the US bellies up again there just will be some write downs, the Chinese will be loosing its best customer and the rest of the world will go about its business, which will be reduced between 1-12% depending on the country. Nothing dramatic. Except in America. So no great depression this time.

Not true here in Canada like 90% of our exports go to the US, we would bounce back quick because we have what everyone wants though. Mexico would also likely suffer however they are already used to being poor already.

Link to comment
Share on other sites

 
Not true here in Canada like 90% of our exports go to the US, we would bounce back quick because we have what everyone wants though. Mexico would also likely suffer however they are already used to being poor already.

You have to see how important your exports are in relation to your total economy... if those 90% represent also 90% of the total economy then there would be a problem though... and I don't think it is 90% either.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Recently Browsing   0 members

    • No registered users viewing this page.