Fed Intervenes in European Debt Crisis

Fed Intervenes in European Debt Crisis

www.nytimes.com

The Federal Reserve announced that it would open currency swap lines with the European Central Bank — in essence, printing dollars and exchanging them for euros to provide some liquidity for European money markets and banks.

(visit the link for the full news article)

Well there ya have it.... We are now printing money for Europe.



This all right before the audit of the fed....

So what are your thoughts on this? How does the Fed printing money for other countries change the game?

Is this a western alliance?


How much Longer before China gets militant?


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

This is actually a standard practice of central banks...they do this all the time. They do it specifically when the demand for one currency is specifically low or an exchange rate is undesired. Really the Fed is exchanging dollars for Euros to keep the Euro from falling so much...since dollars are in demand as a result, it would also prevent the dollar from becoming too strong. The U.S. has a vested interest in the Euro not collapsing, if anyone remembers it took a lot of money to get the Euro off the ground...a lot of central banks had to take this very same action to get the Euro off the ground. I'm neither supporting or condoning, I'm just putting the move into context.

This spells a lot more trouble for the Euro than it does the dollar.

[edit on 10-5-2010 by yellowcard]

The problem with all of this from our perspective(Canada) is that we have to borrow/print this money to give to Europe. We don't have Billions sitting around. We used to have surpluses until the fiscally responsible Conservatives took power.


The US can't afford to have the US dollar go any higher as the cost to service your debt increases and whoa you guys are raking up the debt like gangbusters.

Any further bailouts to any country is similar to throwing money into a fire. Totally pointless from now on except for short term gains but the long run outlook for most of the EU and the US is not looking good.

So where and how much are the bailouts for Ireland, Spain, Portugal, Italy, France. Where is the UK going to go for bailouts when they need them in the next few months.

For the UK if the electoral situation doesn't settle down the GBP is going to trend down since the UK is broke also and may have to finance a squirmish in the Falklands.

Canada can't do it. China's bubble is about to burst so they're usual lending will shrink considerably and if China shrinks the rest of Asia will follow.


So in my personal, non-professional opinion we'd be stupid as people in the world who are going to be shouldered with these massive gambles that haven't worked previously. The previous stimulus packages were only bandaids on a slashed jugular.

The world economies need major surgery. These complex derivatives and the notion that it's ethically possible to sell a package to investors telling them it's "GOLD" and then betting heavily against it behind their backs. These need to be eliminated. There so complex that people don't really know what they're getting into.

To me the derivatives market is like a street hustler and the 3 card trick. Follow your card each time he moves them around and bet that at the end you tracked it right. However, in the derivatives market each movement of a card generated a transaction fee for someone. It's shuffling paper and charging money to do it, but in the end their not worth the paper they are printed on.

The world needs to go back to basics. Solid assets to back up your riskier ventures and not leverage yoursleves to the nines.

So one nation that has a massive debt prints money and gives it to the other nation that also has massive debt.

Forgive me for saying i don't think this will last much longer.

if the $,£,Euro goes bang they all go bang

Can anyone help me file in my amro carbon credit form please because the IMF said it's got to be back next week.

This is indeed like a worldwide three-card montey trick, and just as crooked. At this point, the only real point to printing more money is just because the NWO has a cruel sense of humor, and likes to watch the world squirm in quiet desperation until they finally decide to blow the whistle and watch everybody scramble for the last case of dog biscuits at the local Wal-Mart while their cities burn. The only thing that any of us little people (Those not with them at the top of the worldwide ponzi pyramid) is start the burning early, just for the sheer hell of it.

i really don't think that the currency Swaps are swapping USD for Euros...


i believe its more along the line of the FED swapping cash for all those toxic CDOs and other paper the EU banks got stuck with in their portfilios/ treasuries.

See the FED was complicit in allowing the derivative garbage to be created, then sat idle as the rating agencies overrated the garbage subprime mortgage paper as AAA...and dumped on an unsuspecting global community of banks & institutions

many EU banks are up to their eyeball in the Junk Paper, all next to worthless because there's no place to sell it off to other suckers.
The FED is backstopping the likes of Morgan, Sachs, Citi, BoA et al.
and doing an act-of-contrition in this 'SWAP' policy


reading between the lines, is not so much a gift as an acquired talent

Originally posted by LieBuster

if the $,£,Euro goes bang they all go bang

hey ATS member here's a Euro => €

keep the symbol in a cut-&-paste for the future...

reply to post by yellowcard


Actually at a tune of 1 trillion dollars this more than just a littler problem.

And when the markets reactions seems to be insignificant, we are in more trouble that many people even dream off.

The financial crisis with the mortgage problem started with the US and will end with the US getting into so much debt and not banks been able to rescue the US.

The federal Reserve, the bank of Canada and the UK are the ones now trying to save global markets while they are having their own debt to deal with.

And on top of all of this Credit Default Swaps on Greece are at an all time high, and guess who is providing the CDS's? AIG aka U.S. Gov't! YYYYAAAAYYYYY!!! Somebody please plug me back into the matrix.

reply to post by HunkaHunka


We did this from August 2007 to February 2010 ... then we closed the window.. now we reopened..

It's more or less a way to keep the Dollar and Euro around the 1.30 mark. For every Dollar we print and give to Europe, Europe gives us a Euro.. this way we can flood the World with money but keeping the same competing ratio.. since neither Europe or America will benefit from a weak Euro and strong Dollar.

It IS a bad... stupid, retarded program, don't get me wrong.. Basically what we've seen this month is this: The Euro is set to collapse.. Europe's economy is 5 toes over the edge of a cliff, a cliff which hangs over Financial Armageddon .. if these massive emergency measures were not to be enacted not only would Europe cascade into a rolling stone of financial doom and destruction, but the entire World would succumb to the worst depression EVER .. I don't think people realize just how bad the World is right now, they are trying their damnedest to keep it quiet.. people NEED to know .. there is a gun to our heads, and we are spinning the chamber and pulling the trigger.. it's that bad. Consider this:

Once Europe burns through their new emergency fund.... Europe WILL collapse.. there will be nothing left to stop it. Countries embroiled in debt are funding a fund to fund countries embroiled in debt.

Originally posted by LieBuster
So one nation that has a massive debt prints money and gives it to the other nation that also has massive debt.

Forgive me for saying i don't think this will last much longer.

if the $,£,Euro goes bang they all go bang

Can anyone help me file in my amro carbon credit form please because the IMF said it's got to be back next week.

The state of California debt is 4 times the size of the entire nation of Greece.

Its like it already went pop and the numbers coming in are merely measuring the event horizon of awakenings to the fact that there was nothing there to begin with.


There is a cartoon of two guards with big guns standing in front of a bank and one says:

"Used to be we would guard the money"
"Now we guard the secret that there is no gold in Ft Knox"

Gold hit a highest ever today, 1,232 yet Bloomberg could not put the KEY word "GOLD" on the front page, they said cyptically "Gilts sparkled" linked to an article about commodity prices today...





[edit on 11-5-2010 by seataka]

reply to post by seataka


Yes I know and is a bill in congress that is going to benefit California as a bailout, but is for the Unions workers that were very generous to our presidents Campaign.