The status of the dollar as world reserve currency gives the U.S. a number of advantages over other countries. The most important global commodities traded in dollars, although much of this material is not made in the USA. The fact that the global financial system based on the dollar, the Fed allows exporting inflation to other countries, and the government can easily operate under huge deficits.
So far, only China has [...]
4 BIG NATIONS that have signed a currency deal with China IN LESS THEN 2 MONTHS!!
American power was necessary during the Cold War. Now that capital moves freely around the globe, capitalists do not require a specific national entity for any particular role. In other words, the American working class will have to pay their way in future. There are no more freebies.
Yuan reaches record high [...]
from The Daily Bell:
News Release – People’s Bank of China swap line … Governor Zhou Xiaochuan met Governor Mervyn King today during Governor King’s visit to Beijing. They agreed to facilitate discussions on the establishment of a reciprocal 3-year, renminbi (RMB)/sterling currency swap arrangement. The arrangement would be used to finance trade and direct investment between the two countries and to support domestic financial stability should market conditions warrant. They have agreed that the Bank of [...]
Brazil And China Sign Currency Pact
Brazil and China signed a $30 billion currency exchange pact on Friday, a deal that will commit their Central Banks to set aside money to help one another in case global credit dries up.
The pledge is part of a larger move with other BRIC partner nations, India and Russia, and even South Africa was included in the mix during the G20 summit meetings in Mexico. [...]
From Zero Hedge:
By now it really, really should be obvious. While the insolvent “developed world” is furiously fighting over who gets to pay the bill for 30 years of unsustainable debt accumulation and how to pretend that the modern ‘crony capitalist for some and communist for others’ system isn’t one flap of a butterfly’s wings away from full-on collapse mode, China is slowly taking over the world’s real assets.
As a reminder: here [...]
By now it really, really should be obvious. While the insolvent “developed world” is furiously fighting over who gets to pay the bill for 30 years of unsustainable debt accumulation and how to pretend that the modern ‘crony capitalist for some and communist for others‘ system isn’t one flap of a butterfly’s wings away from full on collapse mode, China is slowly taking over the world’s real assets. As a [...]
The dollar exclusion list is becoming bigger and bigger with every passing day as China gets ready.
For simplicity’s sake here is the full list of “bilateral” arranagements in the past year as presented previously: “World’s Second (China) And Third Largest (Japan) Economies To Bypass Dollar, Engage In Direct Currency Trade“, “China, Russia Drop Dollar In Bilateral Trade“, “China And Iran To Bypass Dollar, Plan Oil Barter System“, “India and Japan [...]
Today 40 year veteran, Don Coxe, told King World News “…the amounts involved are at mind-boggling levels,” in terms of what is needed for Europe’s governments and banks. Coxe, who is Global Strategy Advisor to BMO ($538 billion in assets), also said that European banks, “…have borrowed huge amounts of money, in dollars, under currency swap arrangements,” and “if banks start to go down, we know from 2008, when banks start to [...]
When the US Dollar is ultimately dethroned as the world’s reserve currency (and finally gets rid of all those ridiculous three letter post-Keynesian economic “theories”) nobody will have seen it coming. Well, nobody except for the following headlines: ““World’s Second (China) And Third Largest (Japan) Economies To Bypass Dollar, Engage In Direct Currency Trade“, “China, Russia Drop Dollar In Bilateral Trade“, “China And Iran To Bypass Dollar, Plan Oil Barter [...]
Brazil, Russia, India and China, the BRIC countries, are back to talking about creating a unified financial system where they can avoid euro and dollar volatility. This time, a pooling of Central Bank dollars from the countries in case liquidity dried up as the world tracks the West’s crisis momentum.
Regardless of the amount of difficulty involved, the big four emerging markets plus South Africa said earlier this week they [...]
Most people agree that yesterday’s jobs report was a disaster.
To many, this just meant the chances of more quantitative easing had increased. Surely, this is why gold prices spiked yesterday.
Vincent Reinhart, Morgan Stanley’s chief U.S. economist, thinks there’s an 80 percent chance that a new quantitative easing program is announced at the June 19-20 FOMC meeting.
“Slower employment growth, worsening strains in European markets, and a gloomier assessment of US politicians’ ability to steer clear [...]
Mises Daily: Tuesday, April 10, 2012 by Philipp Bagus
On Tuesday, March 26, 2012, I was invited by Ron Paul and his staff to assist a meeting of theDomestic Monetary Policy and Technology Subcommittee of the House Committee On Financial Services. The title of the hearing was “Federal Reserve Aid to the Eurozone: Its Impact on the U.S. and the Dollar.”
Unfortunately, Ben Bernanke had not come to the hearing, being busy with Propaganda Lectures in favor of [...]
This week, my congressional committee will hold a hearing to examine how the Federal Reserve bails out European banks, propping up spendthrift European governments in the process. Unfortunately this bailout comes at the expense of American citizens, in the form of higher prices and diminished savings down the road.
A good analysis of the Fed’s “swap” scheme first appeared in the Wall Street Journal back in December, in an article by [...]
6 MARCH 2012
Greg Hunter’s USAWatchdog.Com
Buying gasoline these days has turned into a horror show. I filled up my car and handed the attendant a $50 bill to turn the pump on. I had a little more than a quarter of a tank. So, I thought that would do the trick and peg the needle past full with change to spare. I was wrong. I stood in shock as the pump rolled [...]
Posted by Brittany Stepniak - Wednesday, February 22nd, 2012
We recently reported that the Fed was up to Something Mysterious….
Recent activity has all but confirmed our suspicions: The Fed is “swapping” dollars for euros in a covert method to bailout Europe’s big banks.
According to a former Fed official’s op-ed in the Wall Street Journal, the Federal Reserve is indeed bailing out Europe by operating in the shadows, which is going mostly unnoticed by American citizens…
By participating [...]
Yes, We Are Bailing Out Europe
Federal Reserve chair Ben Bernanke told Congress that the Fed would not bail out Europe.
But he might have been less than forthcoming.
Former Vice President of the Federal Reserve bank of Dallas, Gerald ODriscoll, says that the Fed is secretly bailing out Europe:
O’Driscoll wrote in a Wall Street Journal editorial:
America’s central bank, the Federal Reserve, is engaged in a bailout of European banks. Surprisingly, its operation is largely unnoticed here.
The Fed is using what [...]
And now you know why Jefferies strategist David Zervos is quickly becoming one of the hottest, must-reads on Wall Street.
This gem of a paragraph is from his note today.
Of course Europe is not “fixed” just because the currency swap funding rate was cut 50bps. There will be losses, defaults, exit and chaos for EMU in coming months. That has not changed. But the Fed will lead a global effort which brings in the [...]
That European wholesale, and particularly dollar, funding has been “problematic” in past weeks is an understatement. One merely needs to look at the Fed’s recent expansion in its transatlatnic swap lines to figure out that someone, somewhere is struggling to meet their USD-denominated obligations. However, is it just one bank, as recent data out of the ECB suggest, or is this merely a symptom [...]
Dollar Got Me Down: A Down Dollar Roadmap
All the talk about a dollar currency crisis is getting ahead of itself. Quoting Mises won’t make it happen overnight. It takes years, even decades for a reserve currency to dissipate. Instead of wholesale collapse, the most likely outcome is a steady decline in the dollar over an extended period of time. Of course there is [...]
December 3, 2010
NATIONAL Australia Bank and Westpac were among global banks to borrow billions of dollars in emergency funds from the US Federal Reserve at the height of financial crisis.
The Reserve Bank also tapped the US central bank for than $US53 billion over six months after the financial crisis caused a global shortage of keenly traded US dollars.
Documents released yesterday by the US Federal Reserve [...]
“The FT has a report that European banks are using gold holding to raise cash with the Bank for International Settlements, as a further sign of an acute crisis in the money markets. The BIS reported purchase of 346 swap operations (sic) involving gold, according to its latest annual report, while there was no mentioning of such operations in previous years. The total amounts raised, about $13bn, are not high, [...]
In an episode reminiscent of the Barings Bank & Nick Leeson debacle of the 1990o’s, The FED comes out June 7, 2010 and says they have lost $2.1 Trillion dollars in currency swap trades over the last year.
FED head says he can get the money back, if only the markets would turn in his favor.
- David Ricardo
By FLOYD NORRIS
Should people be able to bet on your death? How about your financial failure?
In the United States Senate, Wall Street won one this week when the Senate voted down a proposal to bar the so-called naked buying of credit-default swaps. If that were the law, you could not use swaps to bet a company would fail. The exception would be if you already had a stake in the [...]