Posted on 05/27/2009 8:28:25 AM PDT by hripka
Richard Fisher, president of the Dallas Federal Reserve Bank, said: "Senior officials of the Chinese government grilled me about whether or not we are going to monetise the actions of our legislature."
"I must have been asked about that a hundred times in China. I was asked at every single meeting about our purchases of Treasuries. That seemed to be the principal preoccupation of those that were invested with their surpluses mostly in the United States," he told the Wall Street Journal.
His recent trip to the Far East appears to have been a stark reminder that Asia's "Confucian" culture of right action does not look kindly on the insouciant policy of printing money by Anglo-Saxons.
Mr Fisher, the Fed's leading hawk, was a fierce opponent of the original decision to buy Treasury debt, fearing that it would lead to a blurring of the line between fiscal and monetary policy – and could all too easily degenerate into Argentine-style financing of uncontrolled spending.
However, he agreed that the Fed was forced to take emergency action after the financial system "literally fell apart".
(Excerpt) Read more at telegraph.co.uk ...
When a government can decide who gets paid, who it can default on and the legal creditors are told to go uck-fay themselves the investors will return the salute.
Bond market dislocation would mean a calamitous rise in the cost of credit, literally real wrath of God stuff. The economy grinds to a cliffdiving halt because borrowing/lending comes to an effective standstill.
It just fell apart, for no apparent reason.
Barney did it.
Pravda prints weekly articles screaming about the failures of socialism. Putin says America is going terribly wrong to nationalize businesses. RED CHINA is telling us that it’s irresponsible to monetize our debt through inflation. They might not continue investing in our bonds, if we cannot be responsible with our fiscal policy. The French president openly, and correctly, calls the US president a child. And im fairly sure hes a Muslim, and a non-citizen.
I dont know whether to laugh or cry. I just want it to stop.
I don’t think any of those options are available to me seeing the Company 401K plan provides us limited investment vehicles to invest in, with the “stable” bond fund supposedly being the “safest”. It’s either that, or stock funds. I feel trapped and about to watch 30 years of savings go down the tube a couple of years before I could retire early.
Even a whiff of that nonsense would crash the equity markets here and likely all over the world given the funds that invest in US companies. There would be nothing of any value for them to seize.
I've thought about that, but hesitate to stop contributions that are matched by my company. I hate to leave that free money on the table. You might see if your company plan has a loan option where you can borrow against your 401K balance and the repayments are deducted from your paycheck over a period of time. Our limit is $50K paid back over 54 months, or 10 years if related to purchasing a house. I'm seriously thinking of borrowing the max to at least get my hands on that part of my money, before the Federal government has a chance to confiscate it.
Indeed, China hold their feet to the fire.
Incredible turn of events...
“I shut off inputs to my 401k months ago to prevent further loss, and I’m expecting to lose the entire balance, which I’m unable to yank so long as I’m still employed. “
I am in the same boat and did the same thing as you in Spring of 08 and even put it all in a money market position, so no stocks or mutual funds for my 401k right now. I still put in a very small amount monthly into my IRA, but the real retirement asset I have is my 401k. I hate letting it sit idle but given the economy the way it is....
please I hope it stops. seriously are we in the end times?
IMO< this should be extremely troubling to us. China is under the impression that it can dictate to the U.S. Whether true or not, it’s certainly a wake up call.
How did we get here? Is this where we want to be? Is there need for change to avoid this?
Frankly, it’s just more confirmation of the problems I have been predicting for about fifteen years now. We really screwed up by super-charging China.
I think it goes like this, and somebody tell if I'm on the wrong track, remember how you felt about 20's ( yuppy food stamps, etc.), well soon you'll feel that way about 50's, then 100's, etc..
“please I hope it stops. seriously are we in the end times?”
The endtimes for the US as we know it. A new government has taken power which is totally abdicating US foreign policy goals and more interested in looting the national economy. The US has been rotting from within for years, and we have crossed a threshold.
My mortgage company is a joke and corrupt.
Are we as a society/people so complacent that there could be a headline even worse than nuke fears of commie rogue countries and people would only be pissed if american idol call in to vote was proved to be bogus or dancing with the stars went off air?
You should have a moneymarket type vehicle available....
Thanks Osage. I’ll double check to be sure.
Yes, only the Chi-Coms and other countries are supposed to print counterfeit US currency...
What do you mean by that?? Just curious
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