Why Quantitative Easing is Likely to Trigger a Collapse of the U.S. Dollar
• hussmanfunds.com/It is instead effectively printing new money to finance ongoing spending for fiscal deficits and the bailout of the GSEs.
Contents Pages by Subject
Federal Reserve
Watch Former Fed Governor Fred Mishkin In Dire Need Of A Diaper Change
• ZeroHedge.comWatch the attached clip to see a former Fed director go from comfortable, to fidgety, to stuttering, to thoroughly discredited, to in dire need of diaper change, in under 2 minutes.
The Phony Inflation-Deflation Debate
• EconomicPolicyJournal.comThat said, we do have a mad scientist at the head of the Fed, Ben Bernanke, who likes new tools when he plays with his money printing machine.
It Looks Like U.S. Government Bonds Aren't Supported By China Anymore
• Businessinsider.com/This makes the U.S. government bond rally, or bubble depending on your view, even more peculiar. You can't blame it on China propping the market with its standard dollar-recycling activities anymore, it seems.
China Diversifies Away from the Dollar
• EconomicPolicyJournal.comChina is buying in Europe, Social Security is about to go cash flow negative, who exactly is going to be buying the mounds of new debt securities that the Treasury will soon start to issue?
Bank Holdings Of Government Debt Continues Rocket Ride
• Businessinsider.com/Just a couple of charts from the St. Louis Fed to indicate what US banks are doing. First: holdings of government securities continue to go on a rocket ride.
Chart of The Day: Long View Of Inflation Shows That It's All The Fed's Fault
• Businessinsider.com/Back-measure the CPI going to 1800, and they point to take away is that while there were inflationary spells in the past, what really got the ball rolling was the creation of The Federal Reserve and the dissolution of the gold standard.
Will Quantitative Easing By The Federal Reserve Unleash Economic Hell?
• InfoWars.com/ & The Economic CollapseMarc Faber, the author of “The Gloom, Boom and Doom Report”, recently warned CNBC that all of this intervention by the Federal Reserve is going to create a “final crisis” that will destroy the U.S. financial system….
Fed's Hoenig: Keeping rates low "dangerous gamble"
• ReutersThe Federal Reserve is undertaking a "dangerous gamble" by keeping rates at near zero for so long, and it must start raising rates or risk damaging the nascent U.S. recovery, a top Federal Reserve official said on Friday.
Rick Santelli Ranting On Meddling By Fed, Fannie, Freddie, and Housing
• ZeroHedge.comRick gets wound up based on earlier disclosure by Bill Gross that if the government guarantee of the GSEs were removed, he would only participate in the mortgage market if there was 30% down payments by first time homebuyers...
Fed Leads America “To The Brink Of Collapse”
• InfoWars.com/“Crossing the 90% debt/GDP threshold is the equivalent of crossing the proverbial Rubicon of economic growth. It’s a point from which it’s almost impossible to return,” states the article, adding that the market has not responded to quantitative...
Screw The Deficit (Or Will The Deficit End Up Screwing Us?)
• ZeroHedge.comPolicy makers will have no compunction about adding to The Deficit at the next crisis. That’s when hyperinflation will kick us in the teeth.
Who Are The "Other Investors" That Bought 62 Percent of Public Debt?
• ZeroHedge.com287.4 Billion (62%) of Q1′s public debt is not accounted for on the report. Fortunately when discussing who could digest that much debt in three months, we can quickly eliminate 6 of the 7 “not available” data points...
Jim Rickards: "Son Of Helicopter" Reverse Psychology QE2 Plan Is Fatally Flawed
• ZeroHedge.comWhat will happen instead is they will print so much money in this effort and they won't get the traction, and then it will just tip, it will be like throwing a light switch and it will go from no inflation to hyperinflation instantaneously.
FEDERAL RESERVE BANK TO NOT RENEW CONTRACT THAT ENDS ON DEC 21-- 2012
• godlikeproductions.com"A grim report given to President Medvedev today by Finance Minister of the Russian Federation Alexei Kudrin is stating that the private European banking conglomerate known as the United States Federal Reserve System, that basically rules over the f
Discount Window Borrowings Plunge: Quantitative Easing 2 Comes to Bat
• ZeroHedge.comIf the Fed has difficulty explaining why banks are unwilling to lend to consumers when there is over $1 trillion in cash sitting and collecting dust, the problem gets even thornier when Bernanke has to defend 4 times this number.
Averting the Crash: Nomura Sees Fed Issuing QE-Lite Statement On 8/10/10
• ZeroHedge.comThey will change the statement to signal that the balance sheet will remain expanded, and change policy around the MBS program to start reinvesting paydowns." Should the Fed telegraph further easing, expect stocks to surge at least another 10%
Richard Koo Video Interview: Why The U.S. Is Just Like Japan
• Businessinsider.com/This video of Koo explaining this reality is vital viewing for anyone trying to come to grips with our deflationary reality. This article also has a slide show explaining how the US is like Japan.
Fed's Bullard: Time To Start Talking About More Quantitative Easing
• Businessinsider.com/The Federal Reserve President of St. Louis James Bullard has warned that current U.S. policy could lead to Japanese style deflation and that a new form of quantitative easing may be necessary, according to CNBC.
Nassim Taleb: "The Government Debt Is Becoming A Pure Ponzi Scheme"
• ZeroHedge.comThe problem is getting runaway. It's becoming a pure Ponzi scheme. It's very nonlinear: You need more and more debt just to stay where you are. And what broke Madoff is going to break governments. They need to find new suckers all the time.
Niall Ferguson: The US Debt Crisis Will Come Suddenly
• Businessinsider.com/All it takes is one piece of bad news – a credit rating downgrade, for example – to trigger a sell-off. And it is not just inflation that bond investors fear. Foreign holders of US debt – and they account for 47% of federal debt in public hands...
Federal Reserve worry list gets longer
• ReutersA fading recovery, persistently high unemployment, Europe's debt troubles and commercial real estate losses. But Fed officials are talking more about another trouble zone -- recession-hit U.S. state and local government finances.
Florida Banks: Don't Make Us Raise Cash While Oil Is Hammering Business
• Businessinsider.com/The message is straightforward: They're in no position to be raising cash when the oil spill is hitting the state's beaches, threatening tourism, and hammering business
China Ratings Agency Downgrades US Debt
• Jpost.com/IsraelThe US sovereign debt gets a stiff downgrade, cut down from number one in the world, to a distant thirteenth place. Governments like China do not take actions like this randomly, and their quasi-state organizations do not march to the beat...
Is The Fed Funding The Treasury Through The Banks?
• ZeroHedge.comMy theory is that the money has floated into the Treasury market. A lot of people have wondered how the Treasury would be able to continue running record deficits without the Fed buying. Well, we now know that the banks are picking up a lot of slack.
CNN Interview: Niall Ferguson on America’s Death Spiral
• Dollarcollapse.com/The US has a stay of execution while the European crisis unfolds, but at some point the nasty fiscal arithmetic will get everyone, including the U.S… Treasuries are a safe haven the way Pearl Harbor was a safe haven in 1941. It’s safe until it’s not
Fannie & Freddie make an accounting change: $4.4 Trillion Worth of IOU's
• ZeroHedge.comThe Federal Reserve has reclassified $4.4 trillion of IOU’s. They have taken them out of the category “Mortgage Pools and Trusts” and put them on the individual Agency’s balance sheet(s).
Morgan Stanley: Central Banks Have Begun Ditching The Dollar Again...
• Businessinsider.com/Central banks have resumed their diversification away from the U.S. dollar, cutting the percentage of reserve assets held in dollars, as shown by the dark blue line in the chart below.
Is America Free, If A Privately-Owned Central Bank Controls Our Currency?
• Businessinsider.com/This weekend we celebrated America's Independence Day. But are we really a free nation? The truth is that it is really hard to argue that we are "free" when our currency system and our economy are run by an unelected privately-owned central bank.
Think Treasury Yields Are Too Low? Bond Bulls To Laugh Even Harder
• Businessinsider.com/Thanks to the barrage of rather horrible employment data we've been hit with recently, Deutsche Bank is pushing back their forecast for a Federal Reserve interest rate hike from November 2010 to all the way out as far as potentially March 2011...
