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 ...
Thanks.
“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.”
Yaah...you know the partay’s over when these people are making more sense than the US Gov’mt.
That is a sudden plunge in the price of the FNMA 4.0 bond, many parties moving to dump it all at once.
It represents and/or portends a spike in interest rates.
His warning comes amid growing fears that America could lose its AAA sovereign rating.
The Four Horsemen of the Apocalypse will be mounting up soon.
What will food prices be when oil is $300/barrel when the dollar collapses ?
Do I have that right?
And thank you again for your help.
I believe that is right. Don’t take me as an expert on this, though.
http://www.mortgagenewsdaily.com/mortgage_rates/blog/
When we became a debtor nation, we sewed the seeds of China being in a position to hold power over us. We became dependent on other nations to finance our debt and continued spending. And if they stop purchasing our treasuries, bonds... we’re in trouble. That’s my take on it.
I have been thinking a lot about this and my guess is:
Farmland, farming equipment, seed stock.
When things get really bad the ability to produce food will trump everything. Oh, we might need some extra ammo to defend it all.
It's really the socialist powers within our own country that caused this crisis. Obama being the culmination of this long creep into communism. The Chinese and Russians are warning us to get back to capitalism before its too late.
Followed quickly by them. We are in the same boat and mostly economic allies at this point (mostly against Europe). A lot of people get confused about their need to overcome American hegemony in their locale and think that they want or have to tank our economy to do that. A more likely alternative is that they will cooperate economically for quite a while as they build up their military and influence.
Those would be one of the worst investments possible (at that interest rate) because of inflation and default risk. There are basically zero investors planning to hold those for 30 years at 4%. Instead they are all speculating, planning to sell theirs to the ultimate greater fool, Bernanke, who will buy them in order to force those long rates lower. He has no choice having painted himself in the corner. If he gave up that plan, mortgages would immediately spike to 20%
Palmer, IMO, the West is strengthening the worlds single worst nation of all time. I have no ax to grind against the Chinese people, but their government has a long term goal of replacing the United States as the world’s leading hegemon.
We have conquered lands and have turned them back over to reasoned governments made up of those people. China’s track record is to take over land and expand it’s borders.
Anyone carrying on trade with China, is therefore sewing the seeds of their own demise.
China today would be nothing, if it weren’t mostly for the United States. And today it holds enough of our debt, that it can actually impact our policies.
We should have never gotten into the mess in the first place, and we should extricate ourselves from it in the short term. It’s only going to get worse.
The Russians also don’t want us to print money, as Russia currently holds 200 billion in our debts, and are going to pick up more of our treasury bonds (Even as they have to barrow money)
(They own lots of Euro debt, however)
Lots easier said than done. I agree with the dangers posed by China, but we have no way to get out from their grip without accepting 15% mortgage rates and other market-driven rates. Either that our destroy the currency as Mises pointed out. Although likely there would be war before destruction of the currency, that is often the third choice.
99,000,000,000,000 or 9.9 E12
Yessirrreeee, sadly our generation and what s left of the next will be either tightly controlled by the government( see the Bible latter days) or is will be, Ammo+ Anarchy=Anti-Christ+ evil( see Bible...alleged book of myths).
... and the answer is the Lord sitting on the throne of David ruling with a rod of iron( see Bible...alleged book of stories not worthy like evolution, the belief of nothingness and worship of Mollech( killing babies on the fires for monetary gains) or, Ashteroth( in sex, ANYTHING goes...like prop 8)...see Bible, we win in end and it's up to God now according to HIS will and timing.
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."Oh, and BTW, f- China.
I’m wondering where the new surprise is in this with China. Back at the height of the AIG crapt, Glenn Beck had a segment in his show about the “right hand knowing what the left hand is doing”. Explaining that the govt wants us to be distracted with AIG, and then he blew up & said because they don’t want anyone noticing that today they started printing money. Now this was a few months back, why are they asking now?
10-Year treasury note, back to the 80s, with interest rates above 10 % :
http://finance.yahoo.com/echarts?s=^TNX#symbol=^TNX;range=my
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.