Posts Tagged ‘Dollar Swap Lines’

Notes From Underground: The FED Feeds the Liquidity Machine

June 20, 2012

In the very anticipated FOMC release, the FED announced that the Operation Twist would be extended from the June expiration until the end of the year. No surprise as Bernanke seemed to believe  that the FED had to do something about the lethargic growth in the economy. Listening to the press conference held after the FOMC release, it seems that Ben Bernanke is the most troubled man in America. All of the FED‘s actions during the last two years have failed to generate the robust growth that TEXTBOOK MODELS HAVE PREDICTED. Europe continues to be the main theme as to why the GLOBAL ECONOMY IS FAILING TO GAIN ANY REAL TRACTION. Europe continues to plague the world as capital investment languishes in fear of European debt problems causing a massive new round of deleveraging.


Notes From Underground: Austerity, WHERE IS THOU STING?

June 29, 2011

The question of the impact from the austerity budget passed by Greece will not be visible under the lights of television but will rather be a process drawn out during the coming years. Tears will flow not from the irritation of tear gas but from the “NEGATIVE FEEDBACK LOOP” that has been initiated by the power of Brussels to exact its pain from the citizenry of Greece while applying the salve of credit relief to the global banks and financial entities saddled with the debt of the profligate PIIGS.


Notes From Underground: The Fed breaks new ground

June 23, 2010

The FOMC press release did not surprise anyone except some financial television pundits. However, there are two items that are new as we do our scatalogical analysis of the entrails of FED SPEAK. First is the following line:

“Financial conditions have become less supportive of economic growth on balance,largely reflecting developments abroad.”

This is the only time we can remember the Bernanke Fed explicitly stating its concern about events outside the U.S. Yes, we know the FED extended its DOLLAR SWAP LINES last month but we can’t remember anything alluding to weakness abroad as a reason to maintain a soft FED policy. Furthermore, the FED added the words, “prices of energy and other commodities have declined in recent months.”


Notes From Underground:Geithner is in China, soft peddling U.S. anger and the economic impact of the European debt crisis

May 23, 2010

Treasury Secretary Tim Geithner and Secretary of State Hillary Clinton have headed to China for scheduled discussions under the aegis of Strategic and Economic Dialogue (SED). Geithner praised China for shifting to a more domestic demand-based economy rather than one based solely on exports. He cited the huge shift in China’s overall trade surplus as China has been importing more goods from its Asian neighbors. Hillary Clinton went to hand out stuffed teddy bears to Chinese children, adding another soft touch to U.S. policy.