Fed Prints Another $200 Billion Out Of Thin Air

Fed Prints Another $200 Billion Out Of Thin Air

www.blacklistednews.com

WASHINGTON - The U.S. Federal Reserve said on Tuesday that with pressure mounting again in financial markets, it was expanding a securities lending program and will accept a broader range of securities as collateral.
"Under this new Term Securities Lending Facility (TSLF), the Federal Reserve will lend up to $200 billion of Treasury securities to primary dealers secured for a term of 28 days...by a pledge of other securities, including federal agency debt, federal agency residential-mortgage-backed securities (MBS), and non-agency AAA/Aaa-rated private-label residential MBS," the Fed said in a statement.

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[edit on 12/3/2008 by khunmoon]

So they throw in another 200 billion dollars from no where. And the stock market goes up. Oil breaks records again at 108.50 and rising.

www.blacklistednews.com
(visit the link for the full news article)

[edit on 11-3-2008 by JBA2848]

an the dollar dies a lil more inside..... we need to get this dollar on 30mm of recovery stat!

are we buying more gold for that 200 billion?

or is it just to bail out such an such so products in america are upheld.....

Sounds like there trying to print money to buy all our stuff. That is what liquidity means isn't it ? Them buying up all our assets .

www.newsmax.com...
Fed Makes Emergency Intervention Again

WASHINGTON -- The Federal Reserve on Tuesday ramped up efforts to provide more relief to squeezed financial institutions, a coordinated action with other central banks aimed at easing a global credit crises that threatens to push the U.S. economy into its first recession since 2001.

The Fed said it will make up to $200 billion in Treasury securities available to big Wall Street investment houses and banks. The new action is designed to ensure that there is an ample supply of Treasury securities. With strains in financial markets, demand has grown for Treasury securities, considered the safest investment in the world because they are backed by the U.S. government.


On Wall Street, the Fed's action propelled stocks upward. The Dow Jones industrials jumped more than 220 points in morning trading.


The move comes as banks and other financial institutions face cash crunches.

Actually quite the contrary, the FED issued 200$ billion in Treasury Securities. In other words government issued bonds. Which means that someone has to purchase them.

Treasury Inflation-Protected Securities (or TIPS) are the inflation-indexed bonds issued by the U.S. Treasury.

The government has essentially promised the purchasers protection from devalution of their currency from inflation. Which is supported by the US Treasury.

[edit on 3/11/2008 by Choronzon]

It they don't do this we are going to collapse and what a gray way for our present president to leave the white house and the new one to take over.

This people are in a panic mode and they are scrounging and holding to anything to keep afloat.

The sad thing is that this is in no way helping the American citizens and consumers.

Yes they destroy the dollar to help the banks rip more people off. I wish they would give me money to rip off the 1st time homebuyers in america.

Do you see all the stretchmarks? The debt-bubble is about to burst. When that happens, the entire economy collapses, we have global war and famine, and the elites hunker down in an undisclosed location until everyone else is dead.

EDIT to add: In case you were unaware. The entire strucutre of the economy is terminally flawed. It is based on debt. It is not a matter of "if" the economy will collapse, but "when." And all signs point to very soon.

[edit on 3/11/0808 by jackinthebox]

Banks are not passing the money that has been pumped by the fed to the consumer because they know that Americas economy and the working force is also in trouble so they are holding the money as more and more Americans are defaulting on everything.

I wonder how many of these home mortgages are in forecloser that there using for collateral for central bank loans. Sounds like a scam to me.

The U.S. Federal Reserve and other central banks on Tuesday teamed up to get hundreds of billions of dollars in fresh funds to cash-starved credit markets, allowing financial firms to use securities backed by home mortgages as collateral for central bank loans.

In effect, the plan allows banks to exchange unwanted mortgage notes for easy-to-sell government securities

[edit on 11-3-2008 by JBA2848]

Starting to look an awful lot like the inflation episode of the 1920's Weimar Republic.

Occurs is a scam they are getting bail out but have you seen anything about the American consumer? they are still using their dubious lending practices and still luring consumer into their bs.

Now the next victim to the lenders deceiving practices are the elderly and the retiree, remember the reverse mortgages? well is also been and increase of default within that group.

The lending system created this bubble and now they are the ones to come out unscathed? well that is outrageous.

Global sub prime losses hit $215 billion: Japan's FSA

www.reuters.com...

the loses has been world wide but the major contributor is the US.


[edit on 11-3-2008 by marg6043]

This is what happens if your currency is controlled by banking cabals rather than backed by gold.

Keynesian economists may call gold a "barbarous relic", but it is certainly the only form of backing against currency that this world has at the moment.

The death of fiat money is nigh, and i for one shall shed no tears.

I can only predict this much, if this unrestrained amount of liquidity do not help the economy we can bet that we are indeed on another big depression.

So I am thankful for the survival forum here in ATS.

Anyone can invest in bond funds, which would be inclusive of the recently released Treasury Securities.

Banks don't sit on bonds....lol They're resellers of bonds...comeon people. If you haven't already invested a portion of your portfolio towards bonds, now would be a good time.

If you truely are worried about the crash of the dollar, than an inflation protected bond would negate that problem.

And for those worried that the dollars value could goto 0, we'd have to burn through this first:

The United States Bullion Depository holds about 5,037.5 tons (4,570 metric tonnes) of gold bullion (147.3 million ounces[1]). It is second in the United States only to the Federal Reserve Bank of New York's underground vault in Manhattan, which holds about 5,000 metric tons of gold in trust for many foreign nations, central banks and official international organizations.

United States Bullion Depository
Federal Reserve Bank of New York

Which would take quite a LONG time. Your bond's are safe for your lifetime atleast.

WASHINGTON -- ...
With strains in financial markets, demand has grown for Treasury securities, considered the safest investment in the world because they are backed by the U.S. government.

To declare something as the safest investment in the world because it is backed by the U.S. government looks a little strange to me especially in this times. But well, good luck with that product.

Just another tidbit:

The United States holds more gold bullion than any other country, with about 2.37 times that of the next leading country, Germany.

I don't trust our government anymore and to tell you all the truth I doubt that the gold they claim we have is even there or is not longer the property of the US.

reply to post by Choronzon


The US also holds more debt than any other country so the gold is owed somewhere.
Just something for you to think about when you say The US has so much gold.
Heres a list of countries and there debt from CIA FactBook.www.cia.gov...

[edit on 11-3-2008 by JBA2848]