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US Fed Quantitative Easing, Mark 2 [Copy link] 中文

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Post time 2017-5-28 07:28:25 |Display all floors

Do you guys still remember the "TARP" and what "Quantitative Easing" is? Yes? Good!

Then it should be no surprise that the US Fed Reserve has, by now, accumulated US Gov debt worth some US$4.5 TRILLION, a legacy of the Bushian financial crisis [*] when the likes of Citibank colluded to sell investors dodgy bad debts knowing aforehand that they will default.

Quantative Easing is now called, simply, the "Balance Sheet" and the US Fed Reserve intends to start the process of winding down the "Balance Sheet". Every quarter yearly, the US Fed Reserve will start buying back its bonds and canceling the debt i.e. not re-investing by issuing new bonds.

This means there will be fewer bonds, and few bonds means higher interest rate.

And the USAnians point their grubby fingers at PRC accusing Chinese of manipulating the RMB and government interference in the Chinese economy. I guess they have to deflect the blame onto someone else...

Footnote
[*] To be fair, it was actually Bill Clinton who lid the fuse to the financial crisis powder key by repealing the Rooseveltian "Glass Steagall Act" of 1933 which prohibited banks to gamble with depositors' money. Since Clinton repealed the Act, commercial banks have merged with investment banks e.g. Bank of American with Merrill Lynch, to punt with depositor's money.

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Post time 2017-5-28 07:30:59 |Display all floors
Just follow the wordings of statements from Federal Open Market Committee meeting...

Makes for compelling readings
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Post time 2017-5-30 17:24:28 |Display all floors
cestmoi Post time: 2017-5-28 07:30
Just follow the wordings of statements from Federal Open Market Committee meeting...

Makes for comp ...

re: Just follow the wordings of statements from Federal Open Market Committee meeting...

And a good laugh

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Post time 2017-5-31 08:12:40 |Display all floors
emanreus Post time: 2017-5-30 17:24
re: Just follow the wordings of statements from Federal Open Market Committee meeting...

And a go ...

I mean, if you can't laugh at that, you are in trouble...

There is  this new-media know-it-all on Twitter, Moore whatshername, she claimed Glass Steagall had not done one thing for the banking system. She is political progressive, like JF

She is a bloody genius though... maybe I'll attack her when I have more time.
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Post time 2017-6-2 13:37:49 |Display all floors
American banking seems a dangerous place

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Post time 2017-6-3 08:02:57 |Display all floors
dusty1 Post time: 2017-6-2 13:37
American banking seems a dangerous place

Swamp

Did you hear about the great Wells Fargo cheat? Opened accounts for clients without their knowledge and charged fees on them, also without clients' approval... Usanian banking at its most creative.
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Post time 2017-6-3 10:36:27 |Display all floors
cestmoi Post time: 2017-6-3 08:02
Swamp

Did you hear about the great Wells Fargo cheat? Opened accounts for clients without their k ...

I never heard of this but it comes as no surprise

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