FED using foreign banks to monetize debt behind closed doors

Bob Chapman talks about the dirty tricks pulled by Ben Bernanke for the federal reserve to manipulate the dollar
recorded on August 14th 2009

Pressure (Countdown) Toward Breakdown
http://www.kitco.com/ind/willie/aug132009.html
By Jim Willie CB
My best sources of information report that some unexpected deep shocks are coming from USGovt creditor nations. They are simply fed up, frustrated, and astonished at the manner of lost control, spiraling debts, and blatant monetization amidst lies in denial of that same monetization.

The USTreasury auctions now have domestic hidden elements, and global hidden monetization elements. The USFed is purchasing through Permanent Open Market Operations the bonds grabbed by the primary dealers. Some of the auctions are actually underbid, and fortunately for the statistics, the bid/cover ratio includes obligated dealer bids.

The USFed liberally uses its USDollar Swap Facility to enable strong bids by foreign central banks, except that they are highly likely coming from USFed accounts on foreign soil, or else from money lent by the USFed itself. Warning after warning have come not to monetize, not to debauch the USDollar currency, not to permit skyrocketing deficits.

Yet they continue, and worse, little if any reform or actual stimulus has occurred. Mainly what we witness is more channeled funds to the big banks, more coverage of credit derivative fires, and more announcements of bond support. See the $1.25 trillion support for Fannie Mae bonds, aka USAgency Mortgage Bonds.

The Green Shoots have now been dismissed as a marketing ploy. The Stress Tests have now been dismissed as a marketing ploy. The Stimulus Plan has now been dismissed as a marketing ploy. The only USEconomic recovery will be a statistical recovery. A Jobless Recovery is a recovery for stocks and a redemption for the bankers. Main Street continues to be discarded.

As a last footnote, never overlook the continued urgent Chinese initiative to spend their USTBonds quickly, for useful tangible purposes, before any damaging sequence of events occurs. Simon Black (aka the International Man) wrote, I have been spending a lot of time this week talking to my sources in China, one of whom is inside one of the countrys sovereign wealth funds (SWF). He also indicated that the SWF analysts were working around the clock trying to put deals together.

For China it is a race against the clock for how fast they can convert their $2 trillion in USDollar holdings into strategic assets, namely oil and gold. At todays deflated prices, putting together a really good billion dollar deal is a difficult thing to do. Putting together 2000 of them is impossible. Doing it before the dollar collapses? Not a Chinamans chance. And they know it.

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[centervilletn]

basically they are inflating a huge stockmarket bubble and these stocks are NOT worth the what the inflated prices suggest..so when they pull out ...that popping sound you hear is the sound of your pension..

[centervilletn]

its all a sham folks ...now the question is how bad will it ultimately get when it implodes

[regappleby]

@centervilletn = Why did they not ban short selling, or remove the mark to market valuations, or limit bank asset size. You had the Arab oil dollar crises in the 1970's, the Saving Bank crises in 1980's (easily resolved by FDIC), and savings and loan crises in 1980's and remember the "long term hedge fund" crisis and ... Don't you Yanks ever learn? Shackle your bankers by limiting their gross asset size and force inclusion of all deriviates and off balance sheet items.

[regappleby]

@aviomaster = Interesting, since the 'peace dividend' has been harvested you American have increasing numbers of blacks and other minorities struggling to achieve a career or financial freedom. More people in uniforms learning skills rather then expensive overpriced toys could restore opportunities for people

[regappleby]

@angstotheclown = the Arabs / Muslim have petro-dollars since 1970's and the Chinese have the undervalued currency - both are bleeding America and killing your economy AND you people don't even understand it. Ranting antisemitic bullshit - look at the facts buried in Muslim & Chinese actions and money flows

[angstotheclown]

The International Jew by Henry Ford. Read it. The jew is never a nationality. They are always the jew. They own the world now and look at what happens. They intend to steal everything and then kill the goy. Poisoning of the food and water supply. See Beef Products, Inc. run by the jew Roth. Mixing animals parts they used to throw away or turn into dog food or grease with AMMONIA, A DEADLY POISON. Its now in ALL hamburger in the USA. Welcome to the new world kiddies. You are goy.

[WGS669]

@TheGoalSetter Forgive me butting in, but whatever you do, do not put your 401k contributions into a money market account. It would be difficult (for me) to advise you on what to do without knowing what options are available in your plan. But money markets funds are generally losing NAV with each passing day. The money market in my plan loses about $0.001 NAV every 6 days, like clockwork. There is not enough room here to explain why.

[SilentNoMorePubs]

For the clearest, simplest explanation yet of our monetary system, watch the YouTube video WHY WE ARE IN SO MUCH DEBT. Highly recommended.

[TheGoalSetter]

@centervilletn So, in your opinion, is it safe to move 401K money from mutuals to bonds and money market funds? Or just better to pull all money out of 401Ks and take the tax and penalty hit?

[aviomaster]

Factories which are still in USA .... are closing due to high taxes , and all goverment spending will cripple USA economy ... There would be no one to invest in USA

USA needs to cut military spending ...

[0spiker]

@aviomaster

No really, tell us what you think. We're POTW because every other country in the world has no army that can do the heavy lifting. You don't hear people asking Mexico to help prevent more killing in Darfur.

To all comers, America can literally say, yea you and what Army?

Aviomaster maybe you should FOAD or we'll send the Israeli army to invade your

IDDYBIDDY country.