Foreign investors veto Fed rescue

Foreign investors veto Fed rescue

www.telegraph.co.uk

As feared, foreign bond holders have begun to exercise a collective vote of no confidence in the devaluation policies of the US government. The Federal Reserve faces a potential veto of its rescue measures.

(visit the link for the full news article)

Isn't this "Fed rescue" thing what has been artifically inflating US currency and keeping it afloat artificially?? Seems this has been their answer to all the problems... Not sure what to make of it. Or what this means will happen.

Anyone think anything of this??

www.telegraph.co.uk
(visit the link for the full news article)

With the current group on the hill, I would be more inclined to say they are against the CEO's of various companies doing legal embezzlement. IE: Paying each other millions in bonuses while the company lost billions-I presume with the expectation that the Gov would cut another welfare check.


I am going to buy a bottle of johnny walker blue, or similar scotch, just to crack it open the day Bush is a tumbleweed blowing away to give speeches at creepy arch-conservative schools.

reply to post by LostNemesis

The Bauer/Rothschilds seem to think common americans are simple fools, who don't notice what they're trying to do with their dollar's value. We can clearly see that they're trying to devalue their bank-notes by printing them, until they have plenty of Ameros to replace all of their bank-notes.

The Bauer/Rothschild don't seem to realize that their banks have lost customers, all over the world. Ever since the internet was shared with the world, those wamongering, blood-thirsty tyrants have been exposed & condemned by those, who refuse to trust their former-masters (money-changers) & their counterfeit federal-governments.


[edit on 12-4-2008 by ChadOnLife]

This is the most depressing MSM article I've read in weeks--essentially predicting that the Fed is initiating a world financial depression/meltdown of unprecedented proportions. No surprise btw, this is a UK, not US, report.

The new and chilling news is that basically no foreigners came to the latest treasury auctions--there goes our credit. This has long been feared and now it's here. If it continues, then you will see ME oil-producers breaking their dollar pegs, the Chinese could sell-off to recoup some real value from their massive holdings of USG paper debt, and there goes the whole US debt/Ponzi scheme down the drain.

This article hardly even mentions the huge derivatives meltdown about to occur, which will make the sub-prime debacle look like a molehill.

Yikes.

Although we will all pay the price for their folly, there is some deeply embedded part of me that revels in this development. Their Gordian knot is finally confounding even them. This will not be so easy as they had supposed. Their own lust for wealth has made them a victim to each other.

This is gonna sting! But I can't wait to watch them go 'picnicking' on one another. In my fantasy forecast - when the wealth masters start differing amongst each other on who's need is greatest, this cabal will crack like an egg. They are going to need a 'dictator' of their own.

Interesting as we all know what happens when major countries in history have had economic meltdowns.

It is time for the US to stop all aid to the rest of the world and put all our money into our own country. Tell the UN to move their hq someplace else, close our southern border, bring all US troops home from around the world, and concentrate solely on helping our own country.

China and other countries around the world can surely pick up the slack in giving money away to all other countries. And as for our allies, well there is no reason to have troops in Europe anymore. And none for keeping any in Japan either. WWII ended 60 years ago, why keep troops there anymore?

As for Korea, we pull our troops out of there and just let China and NK know that if SK is invaded we will just fire a few nukes there way instead of wasting money sending troops. Same goes for anyone who tries to invade Israel. If hamas or hezbollah attack Israel, we will just nuke Iran. There is no need to put our troops there, we have all we need to prevent and protect our allies.

Best info you'll ever get on the Federal Reserve here:

Google Video Link

1. The US Congress has the option to buy back the FED at $450 millions (per Congressional Records). When the Congress does this, it will own back the billions of US Government Bonds held by the FED. The US Government will actually PROFIT by buying back the FED! Also, the US government no longer has to pay interests to the FED owners on those bonds.

Federal Reserve Power

Why don't we just buy back the FED for $450 million? At least the we would own and profit from it, not International Bankers.

The Chinese have quickened the pace of yuan appreciation to choke off 8.7pc inflation, slowing US bond purchases. Petrodollar funds, working through UK off-shore accounts, are clearly dumping dollars amid rumours that Gulf states - overheating wildly - are about to break their dollar pegs. But mostly likely, the twin crash in the dollar and US agency debt reflects a broad exodus by global wealth managers, afraid that America is spinning out of control. Sauve qui peut.

That is THE most worrying part of the article.

The Treasury auction went less than good...


just as there are stock ratings,
the foreign buyers are reducing their position
from the usual 'market BUY' to the present 'market Underweight'


my gues is that they are mindful of the dollars decline in value,,,

and are restraining themselves from buying Treasuries, for this time period
with a wait-&-see position, to see if the Fed indeed cuts rates Again
which should further devalue the dollar relative to world currencies.


If i were a foreign investor, s the short term Treasuries go down to 1% return, the long term bonds/Treasuries will surely go up to 5-6+%
so why rush & scramble for the recurring auctions ?
the USA Treasuries & Bonds, no matter hour sour looking, ultimately are ' The Only Game In Town" ~~~ at least until someone stands up and offers a gold backed, asset based, world accepted currency to replace the petrodollar/USD-(FRN)

Originally posted by yankeerose

1. The US Congress has the option to buy back the FED at $450 millions (per Congressional Records). When the Congress does this, it will own back the billions of US Government Bonds held by the FED. The US Government will actually PROFIT by buying back the FED! Also, the US government no longer has to pay interests to the FED owners on those bonds.

Federal Reserve Power

Why don't we just buy back the FED for $450 million? At least the we would own and profit from it, not International Bankers.

YR,

You are spot on! But were you aware that the charter of the Fed empowers it to renege on any financial transaction at their whim. The are the only entity within the American Financial system that is not bound to 'abide by contract.' I believe it falls under the terminology "denial of specie transfer' and basically affirms what most everyone except our legislators understand - the FED is in charge and no-one (not even the Supreme Court) can compel them to uphold their end of any deal they don't want to, despite having previously indicated agreement and commitment to contract.

In other words - the language enabling us to 'buy back the Fed' were just put there to create false sense of 'oh well we could always get it back' on those signatories in legislature who signed off because senior party members told them to.

There ya go! Nice, huh?

Is this a surprise to anyone following the global markets? No realy, this is expected as Us economy (the worlds largest) is in recession.

Any developing country that depends on the US economy (as most developing countries are) and their investors do not want to lose their precious investments because the way US is trying to control the its economic downfall.

I think the IMF (185-nation institution, whose mission is to promote global financial stability) are trying to blame now the credit problems and the economic woes to the root of where the problems originated, the US.

With the US facing a big slow down, so the global markets will slow down too and for developing countries that has tasted what prosperity feels like (at least the social sectors that control the wealth) they don’t want any slow downs.

reply to post by marg6043


Agreed. But I wonder, many contend, and I will support for the time being, that the US Fed is 'just another' Central bank in a world run by "Central Banks." There is a potential that the US Central Bank and it's (laughable) policies are actually illusions since the Central banks 'appear' to be under 'coordinated' control.

Ultimately, there really is only ONE financial authority - it's components, and structure need not be 'visible' - but the results yield benefit for whatever that authority represents. Some debate it is the IMF or the ISB, some might attribute it to an elite club, or a blood-line, or a religious order.

I maintain that it's is of no consequence, what matters is that 'currency,' as we understand it, seems to be 'center' of our 'global' problems. Considering it's notional essence, and the fact that symbolic representations of wealth must be universally accepted to be viable. We have an gigantic 'logic' flaw in our 'response' to the 'crisis.'

This money we struggle with is NOT REAL. Everyone can (I hope) agree on that. There is NO binding element between MONEY and anything else. I am not referring to the 'fiat currency' phrase that gets thrown around a lot - although that is an aspect of it. If the people of the planet decided to simply 'reset' the axioms behind the symbols - wouldn't that have the same effect as the painful gyrations we are being forced to endure? I recognize that what I am suggesting here is economic treason against the Central bank structure.

Perhaps I just haven't been getting enough sleep.

Originally posted by Maxmars
There is a potential that the US Central Bank and it's (laughable) policies are actually illusions since the Central banks 'appear' to be under 'coordinated' control.

I agree, for years a few here in ATS even before the market bubble crash kept telling in our post and threads that America's economy was nothing more than an illusion of prosperity control by the interest rates game play of the fed.

Meanwhile the skeptics were throwing back that the GDP grow (used by the president to show that we are economically strong) was correct.

Have you seen or hear anymore the president using the GDP figures lately?

I don't think that what you are telling is anything closed to treason for the contrary what our government has done to this nation and its citizens is treason.


[edit on 13-4-2008 by marg6043]

We know that US is link to the world banks, they pretty much control the wealth and global shifting of that wealth.

But no matter what US economy is the main player still when it comes to that market.

We are a nation in bankruptcy

for decades we have run a deficit to be able to finance from the latest wars in the middle east to even the money that is used to run the nation.

This money comes from foreign investors first from England and lately from China and Japan, our budget to run our nation and our wars is money that has to be borrowed.

The Bush administration's like to make assumptions and base the deficit on GDP grows, but that is also faulty and in trouble.

When you have a nation with a currency in decline from trade and budget deficits top with a federal reserve that is doing more harm that good, this is not good for the nations AKA creditors that are supporting our debt.

Our nation can not expect this creditors (nations) to keep supporting that debt, so what they do they will lower our credit rate as a nation.

That is what is going on right now.

The war in Iraq is nothing more than the biggest waste of money that this present administration has done to this nation and to the future generations to come.

America for the first time in history humble and young beginnings is not an economically independent nation.

Is this part of a big take over by the NWO? or is this how the nations that hate American are getting back at us, if US is downgraded in its credit worthiness then how we will be able to find the money to support the nation.


[edit on 13-4-2008 by marg6043]

It's kind of funny, my son (a 12-year old) often hears me lamenting about the delusion of wealth under which we operate. He asked me as an aside, in reference to the 'devaluation of currency' and how that relates to the actual 'worth' of a country...

"But dad, If this is all 'wealth', were is it actually going? I mean for us to 'lose it', it has to 'go' somewhere doesn't it?"

I wanted to answer but .... I was hoping we could get Bernake to answer him for us. Does anyone have any quotes where he touches upon this fundamental principle of the Fed's activities?

He would either have to admit that 'someone' is getting all this wealth, or that it doesn't really exists in the first place - like Monopoly money.

[edit on 14-4-2008 by Maxmars]

Originally posted by Maxmars

He would either have to admit that 'someone' is getting all this wealth, or that it doesn't really exists in the first place - like Monopoly money.

[edit on 14-4-2008 by Maxmars]

Your son really makes me wonder the same thing. I feel like I should know this. All of these dollars keep being printed and introduced into the economy(supposedly)... Or computers keep adding huger and huger amounts of dollars into the system that do not actually exist (right?).. a bank puts money that doesn't exist into circulation via loans and stuff? Creating wealth?

How in the world is all this cash being created constantly (real, or not), yet we are all coming up extremely short, and losing our homes, struggling to provide basic necessities, etc? Is it truly being syphoned somehow, to the already incredibly wealthy? Your son makes me also wonder, if all of these vast amounts of wealth(whether it really exists, or not) are just *DISAPPEARING*????

Whether you believe these "dollars" are real or not, we seem to need them right now, to feed our families, and keep a roof over our heads. How in the world does so much monopoly money keep being produced, yet we are all still struggling? This is really, really bothering me now.

I keep wishing that people would just quit working, and stop supporting this crap. But people WANT to be slaves to DEBT. WHY?!?!?! Please, just, stop supporting this government, and stop supporting these oil corporations. Is this too much to ask?? We can take back this country.