Posted on 12/21/2010 2:26:19 PM PST by FromLori
For an outfit whose policies supposedly are plunging the world into unspeakable conflict, the Federal Reserve is doing an awful lot to avoid another meltdown.
The Fed said Tuesday it would extend the dollar swap lines it provides to central banks in Europe, Japan and Canada in a bid to avoid a cash crunch like the ones seen to such devastating effect in 2008.
Your dollars, our problem?
The swap lines, under which the Fed provides foreign central bankers with essentially unlimited stocks of dollars in exchange for the equivalent amount of the counterpart's currency, are intended to help head off a banking crisis like the one that appears to be developing in the European Union.
The European Central Bank said Tuesday that money market conditions are deteriorating, raising fears that rising government bond yields and undercapitalized banks will start feeding off one another in a sort of euro doom loop.
Investors have spent recent months backing away from the debt issued by weaker countries such as Spain and Portugal amid questions about their finances and the strength of their banks, which have been impaired by steep declines in property prices.
The financial temblors of the past two months have made it clear that, for all the talk at the beginning of 2010 about the Fed and other government bodies executing their supposed exit strategies and leaving financial markets to their own devices, we are still probably years away from a world in which your taxpayer dollars won't be propping up the misguided ambitions of bankers everywhere.
(Excerpt) Read more at finance.fortune.cnn.com ...
Related story...
6 MONTHS BEFORE THEY TOLD US THEY CRASHED THE WORLD ECONOMY WITH TOXIC LOANS THEY DEVELOPED AND SOLD ALL OVER THE WORLD OUT OF GREED!
US embassy cables: Mervyn King says in March 2008 bailout fund needed
King suggested that the U.S., UK, Switzerland, and perhaps Japan might form a temporary new group to jointly develop an effort to bring together sources of capital to recapitalize all major banks. END SUMMARY
http://www.guardian.co.uk/world/us-embassy-cables-documents/146196
The Wall Street Pentagon Papers: Biggest Scam In World History Exposed...
Thanks Sam I don’t know how long this thread will stay up for some reason the moderator removed it last time I’ve asked for an explanation but got none. I am beyond furious how dare they pledge us as if we are cattle for global banks!
The same banks who donated to obama, acorn are now starting sharia financing while American banks have been allowed to fail!
The ‘stability’ that the fed is supposedly creating looks more like an organized collapse. The organizers, the people who created the crisis, all seem to get away intact.
I agree I see the Fed as a Marxist tool enabling obama’s spending and they are devaluing our dollar which is about the only thing we have left since most of our manufacturing base has disappeared.
Devaluing the dollar is a requirement. We can’t pay our debts. With other currencies collapsing it’s a race to the bottom. An organized race.
We would be better off going the way of Iceland then throwing out our government telling the banks to go stick rebuilding our manufacturing base why should we be used as collateral for foreign banks, at least Iceland is on the road to recovery.
I’ve read a bit about Iceland and their solution. They are rather small (comparatively) but it seems to be the only way. Time will tell.
You didn't include the link last time.
how dare they pledge us
Please explain how you think they pledged us.
I think the right solution involves peasants with pitch forks surrounding the Fed. I haven’t worked out the details beyond that point.
DC has defensive capabilities that would easily thwart a pitchfork attack. :)
How about surrounding the Fed with auditors and then close the traitorous institution down.
I’m looking forward to Ron Paul assuming his spot. Never been a supporter but this just seems right. :)
More bailouts of the failed Free Trader Globalist system
But, the Free Trader Communists will tell us how good it is...bailing out foreign countries with our Tax dollars and wealth
These are swaps and no tax dollars are involved. Don’t let the facts ruin your little rant. LOL!
“The swap lines, under which the Fed provides foreign central bankers with essentially unlimited stocks of dollars in exchange for the equivalent amount of the counterpart’s currency, are intended to help head off a banking crisis like the one that appears to be developing in the European Union.”
That's funny coming from you.
these currency swaps will cost taxpayers
Please explain how swaps which don't use tax dollars will cost the taxpayer. Please run thru all the steps.
(Who really fund the Fed)
No, not really.
It's a hard rain that's gonna fall.
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