Posted on 06/17/2022 8:20:40 AM PDT by BusterDog
JUST IN – Fed Chair Powell: "Rapid changes are taking place in the global monetary system that may affect the international role of the dollar." 👀— Bitcoin Magazine (@BitcoinMagazine) June 17, 2022
(Excerpt) Read more at twitter.com ...
I’m really starting to wonder if this all wasn’t planned with Russia, Ukraine and USA to bilk USA of money and they all share a piece of the funds, all three countries. Ukraine and USA have been in underhand dealings for years.
Russia should have been able to take down UKraine and it’s dragging on and on for months. Biden just gave another 1M to Ukraine.
Amazing how many different shades of meaning can be placed on those few words!
“There goes the market. I’ve lost 3K since last week.”
You got off easy. I just raised my retirement age to 70.
Interest rates cannot possible overcome hyperinflationary increases.
Is it good news? Or is it an indication of an economy grinding to a halt?
The usual suspects: China, Russia, Iran, Venezuela, maybe North Korea, and the rest of the sycophants nations that run in that circle. OPEC countries may move to the Chinese yuan as we throw them under the bus for their human rights issues.
Actions like the Washington DC council renaming the street in front of the Saudi consulate after Jamal Khashoggi is not a way to impress and keep friends or a working relationship.
But it’s all good. The American tax payer will pick up the slack as usual.
Well, it’s really just news. I have a 250 gallon farm tank to fill, so for me, personally, and short term, it’s good news.
If I can get that tank filled I’ll be immune to gas lines, should they happen. Being retired, and except for road trips, we don’t use much gas.
$1,250 to fill that up right now.
Yep. the first time I filled it up a couple of years ago it was a few hundred. But even at the high price today it is cheap insurance from fuel chaos. I held off when gas was at $3.25. 🤬
Btw, anyone who doesn't want their "worthless fiat currency" let me know....I have a few charities that would gladly take it off your hands.
The dollar's international role holds multiple benefits. For the United States, it lowers transaction fees and borrowing costs for U.S. households, businesses, and the government. Its ubiquity helps contain uncertainty and, relatedly, the cost of hedging for domestic households and businesses. For foreign economies, the wide use of the dollar allows borrowers to have access to a broad pool of lenders and investors, which reduces their funding and transaction costs. The benefits of the dollar as the dominant reserve currency have generated an extensive academic literature. Yesterday's paper on the Treasury market by Alexandra Tabova and Frank Warnock extends that work in meaningful ways.
The Federal Reserve's strong commitment to our price stability mandate contributes to the widespread confidence in the dollar as a store of value. To that end, my colleagues and I are acutely focused on returning inflation to our 2 percent objective. Meeting our dual mandate also depends on maintaining financial stability. The Fed's commitment to both our dual mandate and financial stability encourages the international community to hold and use dollars.
The wide use of the dollar globally can also pose financial stability challenges that can materially affect households, businesses, and markets. For that reason, the Federal Reserve has played a key role in promoting financial stability and supporting the use of dollars internationally through our liquidity facilities. The central bank liquidity swap lines provide foreign central banks with the capacity to deliver U.S. dollar funding to institutions in their jurisdictions. And the Foreign and International Monetary Authorities (FIMA) Repo Facility allows approved FIMA account holders the option to temporarily exchange their U.S. Treasury securities held by the Federal Reserve for U.S. dollars. These facilities serve as liquidity backstops so that holders of dollar assets and participants in dollar funding markets can be confident that strains will be eased when these markets come under stress. That assurance, in turn, mitigates the effect of such strains on the flow of credit to U.S. households and businesses. Both facilities enhance the standing of the dollar as the dominant global currency.
The swap lines were extensively used during the Global Financial Crisis, the 2011 euro-area debt crisis, and the financial turmoil at the outset of the COVID-19 pandemic in 2020. The paper on central bank swap lines presented yesterday by Gerardo Ferrara, Philippe Mueller, Ganesh Viswanath-Natraj, and Junxuan Wang provides novel micro-level evidence on the usefulness of swap lines in providing cross-border liquidity to support the real economy.
Looking forward, rapid changes are taking place in the global monetary system that may affect the international role of the dollar in the future. Most major economies already have or are in the process of developing instant, 24/7 payments. Our own FedNow service will be coming online in 2023. And in light of the tremendous growth in crypto-assets and stablecoins, the Federal Reserve is examining whether a U.S. central bank digital currency (CBDC) would improve on an already safe and efficient domestic payments system. As the Fed's white paper on this topic notes, a U.S. CBDC could also potentially help maintain the dollar's international standing.2 As we consider feedback from the paper, we will be thinking not just about the current state of the world, but also how the global financial system might evolve over the next 5 to 10 years. The paper by Jiakai Chen and Asani Sarkar, which is on today's program, and our distinguished panelists on this topic this afternoon, will provide important insights on this issue.
I doubt it’ll get that much higher but the wild card is that the hurricane season is coming up soon. And don’t forget the Russians might hack the Colonial Pipeline. In that case, it’ll go up to $7, $8.
Not that losing any amount of money is pleasurable but...I’ve lost far more. Years and years of gains are wiped out. My only saving grace is that I’ve another 12+ years to save before considering retirement. Others aren’t so lucky.
Will the ‘big guy’ still get his 10% cut and extra bonuses from the Chinese?
Today starts buying of Aug contracts....
It’ll hurt sales of their newsletters and bomb shelters and freeze-dried food...
Some of the doom and gloomer channels are funny. I’ll see something come up in my youtube feed that says something like, “this is it! it’s happening now! Buy food!”, and the video is a year old. Or six months. But others are more interested in what is happening now and where it’s gone and is going, and tend to be spot on. Just to mention one example, a lot of them have been all over housing the last few months, and here we are.
“The Doomsters and economic snake oil salesmen will be upset at the full statement and context. It’ll hurt sales of their newsletters and bomb shelters and freeze-dried food, but they may be confused by words like “swap” and “liquidity” and “the.””
******
Buy the dip, Bro.
I’ve been posting about this in connection with our Ukraine proxy war. The people who can’t get their minds out of the Cold War didn’t want to hear it. People have no idea how bad this will be, but it is deserved. We have managed the Dollar and foreign relations irresponsibly. I don’t know if Powell has the intelligence and courage to pull the Dollar back from the brink. The Euro is already a dead currency walking and the Yen isn’t far behind. The Ruble, on the other hand, thanks to Dementia Joe and the neocons, is stronger than ever.
Debt infers they have you by the balls.
No debt infers that they don’t.
Hello?
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