Developing...
UPDATE 1: The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank have just announced coordinated actions to enhance their capacity to provide liquidity support to the global financial system.
UPDATE 2: According to the Fed, the purpose of the actions is to ease strains in financial markets and "thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity."
UPDATE 3: The central banks have agreed to lower the pricing on the existing temporary U.S. dollar liquidity swap arrangements by 50 basis points so that the new rate will be the U.S. dollar overnight index swap (OIS) rate plus 50 basis points. This pricing will be applied to all operations conducted from December 5, 2011. The authorization of these swap arrangements has been extended to February 1, 2013. In addition, the Bank of England, the Bank of Japan, the European Central Bank, and the Swiss National Bank will continue to offer three-month tenders until further notice.
As a contingency measure, these central banks have also agreed to establish temporary bilateral liquidity swap arrangements so that liquidity can be provided in each jurisdiction in any of their currencies should market conditions so warrant. At present, there is no need to offer liquidity in non-domestic currencies other than the U.S. dollar, but the central banks judge it prudent to make the necessary arrangements so that liquidity support operations could be put into place quickly should the need arise, the Federal Reserve said. These swap lines are authorized through February 1, 2013.
BOTTOM LINE:Central banks have agreed on a major global money printing scheme. Major global inflation is on its way.
what does this mean?
ReplyDeleteRon Paul is right...there's no reason for him to End The Fed.
ReplyDeleteIt's going to end itself.
This is a band-aid. This does nothing to solve the EZ sovereign debt crisis. This was done back in 2007 and it did not prevent the liquidity freeze in 2008.
ReplyDeleteWhat? "I greet you with an open arms all you do is lie to me,your transparent words got me thinkin what i want to be, it's all figured out now you can't have my sympathy."Mime.
ReplyDeleteChina has cut reserve requirements for the first time in 3 years. See:
ReplyDeletehttp://www.marketwatch.com/story/europe-stocks-off-crisis-sp-bank-move-in-focus-2011-11-30
According to the Fed, the purpose of the actions is to ease strains in financial markets and "thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity."
ReplyDeleteLOL, I love it how they are trying to defend this by saying it's for the benefit of "households." It's like they really do believe they are helping everyone by printing money for themselves and their friends. Either that or else they know they're exploiting people and only SAY they are doing it to help "households", like the way an art thief says he is helping people by providing them with free looks of rare paintings.
And just like that, POOF goes the negative effects of the recent series of increased margin requirements on gold and silver accounts.
ReplyDeleteYeehaw!
Liquidity swaps are temporary money creation, right? The Fed exchanges dollars for ECB euros, and after three months they reverse the trade, right?
ReplyDeleteHouseholds are being helped with price inflation, you see - Spending $5 per gallon on gas helps households spend more time at home with their families and the food price inflation helps them loose weight. Taxpayers are chumps.
ReplyDeleteUmmm... Does this mean that the 'LORD' is coming back 'SOON' since we now have the formation of a 'ONE' World order????
ReplyDelete