Is Bernanke (the FED) giving money to foreign central banks so they will buy our DEBT?
Submitted by Jim Brown on Fri, 07/31/2009 - 18:51
Grayson vs Bernanke
Bernanke (the FED) is giving money to foreign central banks so they will buy our DEBT! Interest rates should be at 20% but the FED is hiding the truth. Listen closely at the 00:50 mark. What interest rate is the FED charging the foreign central banks? My guess is 0.00%. Who are the "indirect bidders" in treasury auctions?
http://www.youtube.com/watch?v=00ECLxK2YTs&feature=related
At least that's my theory.
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Your theory is flawed.
The Fed is not loaning money - the Fed is swapping money! A currency swap is a foreign exchange agreement between two parties to exchange principal and fixed rate interest payments on a loan in one currency for principal and fixed rate interest payments on an equal loan in another currency. Currency swaps are motivated by comparative advantage. Comparative advantage explains how trade can create value for both parties even when one can produce all goods with fewer resources than the other. The net benefits of such an outcome are called gains from trade.
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It is good and proper to respect the U.S. flag, perpetuated with the blood of American heroes. It is a fatal mistake not to recognize those who wrap themselves in the same flag to cover up their crimes against the American people.
~ Sherman H. Skolnick
. @ @ . Power to the People!
@ O @ -----> PEOPLE
. @ @ . NOT Corporate Entities!
Swaps
Didn't Bernanke say that the swaps were done to manipulate the FOREX exchange rates? Of course, he didn't use the word "manipulate," but that's the way it sounded to me. (I don't remember which video that was in. Anyone?) Wouldn't that make sense that if Uncle Ben wanted a foreign bank to buy Treasury bills? If a foreign bank had to buy the dollars on the open market to pay for the T-bills, that would "strengthen the dollar" in the short term. Instead, Uncle Ben could just hand them a bag of newly printed dollars in exchange for a bag of newly printed Euros or whatever. Inflation all around, but no effect on "the dollar" as measured by the exchange rates.
But hey...
I'm not here to defend the Fed - I'd like to see them audited, too. I just think we have enough on our plates to worry about, without making it up as we go along.
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It is good and proper to respect the U.S. flag, perpetuated with the blood of American heroes. It is a fatal mistake not to recognize those who wrap themselves in the same flag to cover up their crimes against the American people.
~ Sherman H. Skolnick
. @ @ . Power to the People!
@ O @ -----> PEOPLE
. @ @ . NOT Corporate Entities!
Did you listen to the video? The FED's balance sheet increased
by over 1/2 a trillion dollars from 24 billion to 558 billion in one year. They are using in-direct monetization of debt. The FED's balance now is more like 2+ trillion most given to central banks to buy our debt while that country collects the interest.
Thomas Jefferson once said, "The natural progress of things is for liberty to yield and government to gain ground."
Well, I guess he called that one.
A Republic, If You Can Keep It
Yes but
Yes, the balance sheet is a mega-bubble. It does not necessarily follow that it is monetizing US Government debt.
Audit the Fed, and we'll know more.
In-direct monetization of debt
it's obvious.
Thomas Jefferson once said, "The natural progress of things is for liberty to yield and government to gain ground."
Well, I guess he called that one.
A Republic, If You Can Keep It
Oh Man!!
And I'm (an offshore businessman) a perennial suspect for money-laundering!!
What is the old saw? "Do as I say, not as I do!"
Good question
I asked the same question here on DP a few days or weeks ago. The only way to find out is to AUDIT THE FED.
Helicopter Ben is dropping money all over the world
and I thought he was an under-achiever.
Thomas Jefferson once said, "The natural progress of things is for liberty to yield and government to gain ground."
Well, I guess he called that one.
A Republic, If You Can Keep It
Probably. And then there's...
why are they paying US banks not to loan?
Instead of just raising interest rates and helping the economy long term, they waste money paying interest to banks not to loan, thereby helping the economy short term but worsening it long term.
End result, kill the economy - later.
Economies are very resilient. They have to make sure we can't spring back.
The S & L crises .....
The bank regulators (old crony bankers) who under Reagan got to finally regulate their competition in S&L's....quickly "discovered" that most if not all of the Nation's S&L's where "insolvent"....despite there being no run on any Savings & Loan ..... The Scapegoat of Choice was Charlie Keating... they accused his Lincoln S&L of lending funds to AMCOR land Development company (also Charlie Keatings) of making fraudulant loans...that is, loans went to homebuilders who "bought" land from AMCOR.....these were called "False Sales"..... Charlie Keating eventually found himself hated and blamed for the whole S&L failure of $500 billion, yet Lincoln could only account for 1% of that figure. The Bankers had their way...and the S&L industry vanished inside of 3 years...The 1990's was all the Bankers... no competition from Foriegn Banks on US soil, no competition from S&Ls...it was off to the races...
Now we have the current disaster ....How is what Ben actions of making loans to Buy debt any different than Charlie's Lincoln S&L making loans so that his projects get off the ground? At least, when it was all done, the public had nice lovely master plan communities and beautiful affordable houses with nice S&L low interest rate mortgages..
In peace & liberty,
Treg
What Bernanke is doing is in-direct monetization of debt.
Instead of the FED buying debt directly from the U.S. Treasury, they give money to other countries and they buy our debt at a nice premium for them.
Thomas Jefferson once said, "The natural progress of things is for liberty to yield and government to gain ground."
Well, I guess he called that one.
A Republic, If You Can Keep It