Red Alert! Frontside INTEL Coming In: Trillions of Dollars Coming Back to The US!
Word on the “street” is that there are trillions of unused, unwanted US dollars coming back to flood our markets in the next few weeks!!! Do with it what you will!
Funny… I didn’t see CNBC carry this story yet… I wonder why not…
Is this the reason the FED is going to be stopping QE?
The Fed Has Started Talking About Ending Its Economic Stimulus Program
Wall Street Journal reporter John Hilsenrath is so plugged in at the Federal Reserve that he has earned the nickname “Fed Wire.”
Whenever the Fed wants to start sending a new message to Wall Street, the story goes, they call up John Hilsenrath.
And then, thanks to Hilsenrath’s excellent articles, by the time the actual announcement comes out, it’s no big deal, because everyone already knows about it.
And now John Hilsenrath is reporting that the Fed has started talking about when and how to end its latest economic stimulus program:
Federal Reserve officials have mapped out a strategy for winding down an unprecedented $85 billion-a-month bond-buying program meant to spur the economy—an effort to preserve flexibility and manage highly unpredictable market expectations.
Officials say they plan to reduce the amount of bonds they buy in careful and potentially halting steps, varying their purchases as their confidence about the job market and inflation evolves. The timing on when to start is still being debated.
Timing of Wind-Down Is Uncertain, but Focus Is on Managing Unpredictable Market Expectations
Fed’s George Pushes for Exit From Bond-Buying Program
The Giant Currency Superstorm That Is Coming To The Shores Of America When The Dollar Dies
By recklessly printing, borrowing and spending money, our authorities are absolutely shredding confidence in the U.S. dollar. The rest of the world is watching this nonsense, and at some point they are going to give up on the U.S. dollar and throw their hands up in the air. When that happens, it is going to be absolutely catastrophic for the U.S. economy. Right now, we export a lot of our inflation. Each year, we buy far more from the rest of the world than they buy from us, and so the rest of the world ends up with giant piles of U.S. dollars. This works out pretty well for them, because the U.S. dollar is the primary reserve currency of the world and is used in international trade far more than any other currency is. Back in 1999, the percentage of foreign exchange reserves in U.S. dollars peaked at 71 percent, and since then it has slid back to 62.2 percent. But that is still an overwhelming amount. We can print, borrow and spend like crazy because the rest of the world is there to soak up our excess dollars because they need them to trade with one another. But what will happen someday if the rest of the world decides to reject the U.S. dollar? At that point we would see a tsunami of U.S. dollars come flooding back to this country. Just take a moment and think of the worst superstorm that you can possibly imagine, and then replace every drop of rain with a dollar bill. The giant currency superstorm that will eventually hit this nation will be far worse than that.
Most Americans don’t realize that there are far more dollars in use in the rest of the world than in the United States itself. The following is from a scholarly article by Linda Goldberg…
The dollar is a major form of cash currency around the world. The majority of dollar banknotes are estimated to be held outside the US. More than 70% of hundred-dollar notes and nearly 60% of twenty- and fifty-dollar notes are held abroad, while two-thirds of all US banknotes have been in circulation outside the country since 1990
For decades we have been exporting gigantic quantities of our currency.
So what would happen if that process suddenly reversed and massive piles of dollars started coming back into the country?
It is frightening to think about.
US sends Japan currency warning as G7 meets
AYLESBURY, England – The United States told Japan it would be watching for any sign it was manipulating its currency lower but Tokyo said it met no resistance to its policies at a meeting of Group of Seven finance ministers which will conclude on Saturday.
As ministers and central bankers met in a stately home set in rolling countryside 40 miles outside London, differences were also evident over whether to prioritize debt-cutting or promoting economic growth.
Treasury Secretary Jack Lew said Japan had “growth issues” that needed to be dealt with but that its attempts to stimulate its economy needed to stay within the bounds of international agreements to avoid competitive devaluations.
“I’m just going to refer back to the ground rules and the fact that we’ve made clear that we’ll keep an eye on that,” Lew told the CNBC news channel.