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China warns Federal Reserve over 'printing money'
China has warned a top member of the US Federal Reserve that it is increasingly disturbed by the Fed's direct purchase of US Treasury bonds.
By Ambrose Evans-Pritchard
Last Updated: 9:19PM BST 24 May 2009
Asia's "Confucian" culture of right action does not look kindly on the insouciant policy of printing money by Anglo-Saxons
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.
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http://www.telegraph.co.uk/finance/f...ing-money.html
Obamarket Update #84 for the Week Ending 5/22: Beating our Currency Like a Baby Seal
What a week, where we heard such insanity as:
Analysts say GM bankruptcy may not be all that bad
In my brief blogging career, well, I don’t get paid so let’s call it “era” instead, I have made some pretty outrageous statements. The Ministry of Peace from Orwell’s
1984 could not have come up with a headline as stupid and blatantly false. These idiots are trying to convince retirees and investors who are about to have their Constitutional rights usurped, again, for the umpteenth time since the Messiah was elected, that a General Motors bankruptcy will not be all that bad and in fact would be beneficial for their future.
You’re kidding me, right?
A company, the second largest auto maker in the world, which employees tens of thousands of people, has thousands of suppliers, trucking companies and dealers dependent on their products; dependent retirees who invested in their common stock, preferred stock and bonds; municipalities, counties and states along with unions and pension plans who bought their corporate bonds and preferred stocks also, are all being told by a bunch of “analysts” that a GM bankruptcy will not be that bad. So the eighty year old man who was dependent on the regular payments from his GM corporate bonds that now has to compete against the other 10% plus of people in his community for that bag boy job at the local grocery store is being told this is not that bad.
The grandmother who now has to decide if the Friskies Beef and Chicken meal will be for her cats or herself is being told that a “GM bankruptcy may not be all that bad.”
The real estate market which has been shredded like a Canadian goose hitting the turbofans on an outbound U.S. Air jet is being told it “may not be all that bad” as former GM employees, supplier employees, and retirees dump their vacation homes, time shares and other properties on the market to survive.
The employees who think that the government knows what they are doing is being told “don’t worry be union happy” and that there is nothing to fear since the Messiah is the new CEO are freaking out and wisely so.
Yet it may not be all that bad. When I post the GM bankruptcy update thread next weekend I just want you to remember where you heard the following here first:
There will be a massive increase in senior citizen suicides as a consequence of the shabby treatment stock and bond holders will receive from this government due to a General Motors bankruptcy filing.
You heard that here first, remember that dire and sad prediction.
Beating the Dollar like a Baby Seal
While all of the major discussions this week have been on green shoots from the marijuana crop coming in at CNBC, the reality of what the rest of the world feels about the U.S. dollar is starting to have an impact. Last we heard when the “end of the end of the bear market” rally began in March and April, the U.S. dollar index was in the mid 80’s and looking to move higher as the rest of the world had a sudden and restored faith in the future of our nation because that smile from Obama just means jobs will be growing on a daily basis once he is through nationalizing every damned thing that is in this nation.
The reality is that all that crap paper was denominated in dollars and when the foreign investors looked to liquidate their holdings in such beautiful things like some Countrywide or Merrill Lynch ABS or MBS. The Markit ABX indexes (remember, those graphs everyone freaked out about last year on Bubblevision and now that they are bouncing off historic lows are ignored?) like this one from the 2006 series A-rated (Designation ABX.HE.A.06-02) has rallied all the way up to a price of 3.48. Of course that is after an all time high of 100.12 but who cares, happy days are here again.
Quote:
Woo-hoo! In reality though the dire situation involving the dollar is that many nations and investors have successfully divested themeselves of enough of the crap paper we have issued them to the point where they are no longer facing life or death market situations if they do not have to acquire U.S. dollars and use them in their day to day transactions to reach closure. In Australia this week a milestone piece of news, ignored by 99.99% of the world, snuck through Reuters where the headline said it all:
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Rest at the link at the top.
http://www.usdebtclock.org/